Thursday, September 13, 2018

Is Lack of Experience Hampering New Modular Factory Builds?

A recent survey coming out of the UK says that almost 50% of the respondents listed lack of skilled upper management as a huge hindrance to building new modular factories.

Is that accurate in the US as well? Probably. Maybe even a little higher.

Over the past year I’ve been approached by numerous factory owners and investors asking if I knew of any talented and experienced people that could either run a new factory or be the GM of an existing one. My answer is always the same, “Sorry, everyone I would consider for those positions is already employed.”

Investors who have little or no modular housing experience are waiting on the sidelines for just the right opportunity where they can get a nice return on their investment. A few have taken the plunge already while several others are biting at the bit to begin building those profitable (sic) modular hotel projects.

Most of them truly overlook the need of finding key people before they open the factory thinking “how hard can it be?” But truth be told, finding a good GM with real experience is extremely hard as are finding good Sales Managers and Production Managers.

A mediocre GM can burn through an investors millions of dollars quickly. A Sales Manager that was a good sales rep yesterday may have no clue how to hire, train and measure a sales staff performance. The new Production Manager was probably a floor supervisor at another factory yesterday and knows very little about production quotas, scheduling or profitability.

There are no college degrees offered in any of those three positions as they are learned on the job.

I’ve heard numbers like $500M to $1B being considered for new modular factories over the next 5 years but if there are no talented or truly experienced people able to run these factories it looks like the investors themselves may be running the show and we all know how well that works.

Just my humble thought for the day.

If you have experience and a good track record as a Sales Manager and would like to have your name and resume forwarded to a company that has asked me to help find the right person, send your resume to Modcoach in complete confidentiality and I will forward to the owner.

No comments: