Monday, June 15, 2015

Rochester Homes - A Strong Family Run Modular Home Factory in Indiana

Rochester Homes in Rochester, IN was founded in April 1972 by Milam D. Anderson. 

He started the production facility in Rochester, Indiana to build mobile homes after spending most of his carreer working for DeRose Industries out of Texas and the original Ritz Craft homes based out of Argos, Indiana.  Kenny Anderson, Milam's son, began working, at Rochester shortly after it was founded, in sales. He worked his way up the ranks of the company until he purchased it. Kenny moved the company from a custom, medium to high end mobile home manufacturer, into a modular home manufacturer.

Kenny focused on creating valuable ranch, cape cod, and two story homes and opened the factory capabilities up to include custom floor plans. He grew the business from several hundred thousands of dollars in revenue to $14 million dollars in revenue in 2004.

Unfortunately the business slowed, almost to a halt, in 2009 along with the rest of the housing industry. At that time, Tyler Anderson, his grandson and Alex Berlin, his grandson-in-law, decided to start working for the company in the hopes they could eventually take over. After seeing sales dip down to around $3 million in 2009 and with the factory only running intermittently, they focused on recreating the value in their product, redefining systems building methods to better create a more consistent quality, and re-inventing the sales team to be the best resource in the industry for their building partners.

Through hard work from the entire company, and leadership from Kenny, Tyler, and Alex, they were able to rebuild their builder base, redefine and cater to target customer, and grow back to and pass previous company bests in revenue.

They market their homes throughout the midwest, within a 500 mile radius of Rochester, Indiana. They are focused on single family housing and still offer ranches, cape cods, and two stories, but pride themselves on being a medium to high end, customization friendly modular home manufacturer.

Their builders benefit from using them because they are good at what and stay focused on building homes that take advantage of the cost and time effectiveness of modular construction, while still offering them the flexibility they need to cater to today's more informed, more demanding customer. Tyler and Alex are available to all of their customers and prospective new builders.

They pride ourselves in being accessible to their builders, in bringing an ease of doing business in a tough industry, and in offering an extremely valuable product because of their fiscally conservative, debt free business nature.

Tyler's title is GM and Alex is VP Sales. They made the stock transaction in January of this year and are now partners in owning the business. They have decided to keep Kenny on in his role as President.

Tyler and Alex are both under 30, and are proud to be able to tell their builders that they have a long future ahead of them in the business.

It is rare in our industry when a factory is kept in the family rather than being sold because the owner didn’t have a succession plan.

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