My next interview is with Bob Bender of the Commodore Corp
in Goshen , IN. I’ve met Bob several times and found him
to be very open about what he sees for the future of modular housing in the US .
Modcoach: Bob, could you give us your background at
Commodore and what you did before joining them?
Bob: My title is COO of The Commodore Corporation. We build
both modular and manufactured housing. Our Pennwest, Manorwood, Commodore Homes
of Virginia, and new R-Anell Housing divisions are exclusively modular, and our
Indiana
division is nearly exclusive modular. I have been in the industry nearly 10
years, all with Commodore, working across roles from production worker through
General Manager to my current role. Prior to Commodore, I worked at Eastman
Kodak (when it was a real company!) for 16 years, and as software company
executive for another 8 years.
Modcoach: You recently added R-Anell in Crouse, NC to your list of factory brands.
R-Anell has done commercial projects in the past, does this mean that Commodore
is about ready to work in that arena?
Bob: We believe our job is to make builders successful and
did not want to impact their business models. We have focused exclusively on
the residential market, with the occasional small duplex. With our recent
R-Anell acquisition, we will evaluate commercial in the future at that facility
given its unique capabilities. R-Anell recently completed another hotel
project.
Modcoach: Has
Commodore Corp been staying ahead of the curve when it comes to Energy Savings
and Green Building ?
Bob: It has been interesting to find the right price points
to drive interest in energy-savings, as opposed to when required by code. We
continue to believe it is both the right thing to do, plus the future codes
will require more. Much of energy-saving options require that the builder
promote them, and we are always looking for tools and training for them to
promote the choices.
Modcoach: You and talked earlier about the changing size of
new homes and how the site builders are influencing that. Could you expand on
that?
Bob: Average sizes are really driven by the geographic
market served, and competitive forces over the past 6 years. I believe smaller
ranches and two-stories became tougher to compete with site-builders, who may have
been focused on keeping their crews working. That would affect average sizes
our companies built. We have seen more interest recently from our builders in
smaller homes, which could suggest their local site-built competition could be
trying to make some margin now.
Modcoach: I talk a lot about factories having a tough time attracting
“new to modular” builders. Have you experienced that?
Bob: We have been fortunate that much of our builder-base
has been with us for a long time. Our focus is to help our builders be
successful, and the fun part is to understand what success means for each of
our builders. We have the financial strength and management stability to offer
a broad range of tools. When we review opportunities with new builders, our
first job is to make sure we can build them a good home at a fair price. After
that, it we have to understand what else could help: unique marketing tools and
collateral, custom standards, inventory financing, cash flow support, etc. The
real success happens when both parties share the same culture and goals
long-term.
Modcoach: I’ve been asking every factory person what they
are doing on the social media front. Are you working that side as well?
Bob: We continue to invest in both web and social media and
have been for quite a while. We continue to learn from our online sources, and
share that with our builders. The interesting hurdle manufacturers may face in
the future is learning how far we can communicate with potential homeowners as
users expect conversations on social media sites. On a personal note, I’ve been
involved in online businesses since the mid-90’s, and used to think I was ahead
of the curve. The curve is moving so fast now it has become tougher to predict
where things are headed and on what platform.
Modcoach: I also try to ask everyone why the modular housing
share of the total housing market is stuck at 3%. Why do you think we can’t get
a bigger market share?
Bob: Probably like everyone who has come into the business,
it’s exciting to think that a simple 2-3% increase in market share means 100%
growth to an industry. What you learn is that the real opportunity is a subset
of the overall single-family market. Local restrictions and competitive
pressure makes it harder to reach into many urban markets (single-family
homes). While we’ve had some success in building subdivisions, it is really
tough to compete against most tract or production builders. Once you scale away
those markets, the percentage is a little better but the industry should be
able to grab a lot more.
It still feels like the modular concept makes more sense
than the market share it has today. Modular is really a construction technique
and process, not necessarily a different home. I am interested in many things
being considered at MHBA with Tom Hardiman, and excited to be part of that. I
hope the readers of your blog consider becoming part of that effort.
Bob, thank you for an interesting interview. I completely
agree that joining the MHBA is one of the best ways to join together as an
industry and work toward increasing modular’s awareness with new home buyers. I
wish you and Commodore the best for years to come.
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