The mobile home park industry is a great space to invest in. It’s a part of the housing sector that sometimes may not be the first to come to mind. But those involved in the space know all too well the proverbial goldmine it can be. But that doesn’t mean it doesn’t have its challenges. Take the mobile home park supply chain, for example.
It’s a challenge right now. The cost of manufactured homes is going up due to a surge in demand. Disruptions to the supply chain, however, have made it difficult to strike a solid balance. Learn more below!
Bottlenecks in the industry
There was a time when a production number of 300,000 homes per year wasn’t out of the realm of possibility. Things are much different now, though. The industry is only producing around 100,000 homes annually. As of late, the imbalance between this and overall demand has become more tangible.
Some pros of this include stellar infrastructural quality. While this may come with a higher price tag, we cannot stress how “worth it” this is. A number of different factors impact this over time. From the recent pandemic, to the fluctuation of goods’ costs’, and more.
Making a bad situation worse
Each influencing factor directly impacts the current state of things. In this case, it made an already tight bottleneck into a REALLY tight bottleneck. While the earliest deliveries came within 1-3 months, the figure would stretch to 3-6.
Industry members made the best of the circumstances. Unfortunately, delivery times would eventually bloat to 6 months to a year. Before long, reports of 12-18 month delivery schedules began circulating. Keep in mind this does vary from order to order, given each deal’s respective details and needs.
Reasons for bottlenecks in the chain
There are 20 million plus people living in mobile home parks in the country. Though it has its challenges, it’s still a successful industry. With promising enterprise, though, comes the common infrastructural tropes. The larger powerhouses in the industry tend to get top billing over smaller entities.
But even they aren’t immune to the bottleneck. Companies with 1,000 plus lots are also reeling from lengthened production timelines. It’s still a strong industry to be a part of, no doubt. But investors at every level should keep at least a mild awareness of this inevitable impact.
Possible solutions
One solution to the issue would take action from the manufacturing industry. They can either take on more capacity, or ramp up work schedules. There have been previous instances where 24/hr work intervals were instituted. It’s possible that it’s even happening now, though this and more is needed to address the full demand.
The Mobile Home Park Expert
Have more questions about the mobile home park industry? That’s where we come in! Our site holds countless pieces of literature dedicated to the subject. Looking for help to navigate the industry? Feel free to schedule a consultation with us today!
