Product Life Cycle of the Manufactured Home Industry

Gavin Wherry, Urs Buehlmann

Abstract


Residential construction consumes an estimated 26 percent of the total U.S. wood harvest and thus plays an important role in the forest products value chain. While being a relatively small part of the U.S. residential construction market, the factory-built residential housing industry, originating from manufactured homes (e.g. mobile homes), is embracing emerging industry segments such as modular or panelized homes. Since indications exist that factory-built home production is slated to gain a more prominent role in the U.S. construction markets at the cost of traditional stick-built production, the factory-built home industry sub-segment is of considerable importance to the forest products industry. This research looks at manufactured home producers as a benchmark for analyzing the current economic state of the industry and discusses competitive strategies. The analysis concludes, through macroeconomic modeling, that manufactured homes are in the declining stage of their product life cycle due to changes to the U.S. residential construction sector and the factory-built home industry and by advancements of rival industry-segments. As market share continues to decline, firms operating in this industry-segment seek to either hedge their losses through product diversification strategies or remain focused on strategically repositioning the manufactured home segment.

Keywords


Forest products markets; Residential construction industry; Manufactured housing industry; Product-life-cycle (PLC); Strategic positioning

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Welcome to BioResources! This online, peer-reviewed journal is devoted to the science and engineering of biomaterials and chemicals from lignocellulosic sources for new end uses and new capabilities. The editors of BioResources would be very happy to assist you during the process of submitting or reviewing articles. Please note that logging in is required in order to submit or review articles. Martin A. Hubbe, (919) 513-3022, hubbe@ncsu.edu; Lucian A. Lucia, (919) 515-7707, lucian.lucia@gmail.com URLs: bioresourcesjournal.com; http://ncsu.edu/bioresources ISSN: 1930-2126