Wednesday, August 17, 2016

Rumors Flying About Two Modular Home Factories - UPDATE 8/18/2016

Emails and calls have been coming in about two modular home factories that may be going out of business shortly.

I have tried contacting the owners of both of them and can't get anyone to answer either the phone or my email.

Unfinished Foremost Model Home

Having driven past one of them last week, I noticed their new and as yet not finished model home overgrown with weeds which is a good indication that things have not gone well for them. The model home was hit with gunfire a few months ago which could be another indicator.

The other factory's number on their website is rerouted to a cell phone with a different number and you have to leave a message. Ooops!

Does anyone know what is happening with Foremost Homes in Greencastle, PA or Quality Crafted Homes in Beaver Springs, PA?

Inquiring minds want to know.....

Just got this from an "in the know" person  that says Foremost Homes and the Foremost Industries Panel and Truss plants will be closed by the end of the month.  The modular factory is rumored to be reopened by the end of September under a new name.


Anonymous said...

I thought Foremost was already out of business. They owe everybody money.

Unknown said...

As someone who is outside of the modular business but has a real keen interest, is there something inherent to these large modular factories going under in what should be a good time economically? Are these just hold over issues of cash flow from the recession or are these independent issues that are unrelated beyond them essentially being in the same business? Just courious as someone who is interested in the prefab business of home building and what the future may hold for it's growth potential.

Anonymous said...

Poor management. This is a period of thinning the herd Most modular factories are doing quite well.

Brent Werner said...

While some factories certainly have suffered from less-than-stellar management, I don't believe that blanket statement adequately addresses the various and independent issues. I spent some years in the modular business during the crisis years (2006 - 2013) as Controller and CFO. Some debt financing structures simply were unsustainable when the lean years hit. And some factories certainly were undercapitalized when private equity sought "bargains" during the recession. It's a challenging and fragmented industry. Just sharing observations gleaned during my brief experience...

P.S. Hope you're doing well, Brad!