Friday, November 8, 2019

What Would You Do If Your Modular Home Factory Lost a Million Dollars?

I don’t know..”What could I do?”

Well, if your factory was in England, the British Government would loan you $38,000,000 to build a second modular factory! Maybe or maybe not a new factory, that hasn't been quite decided yet.

Yeah, I know. That would never happen in the US. In fact, the US government doesn’t even know the difference between modular homes and manufactured homes as witnessed this Summer at the Innovative Housing Showcase on the Washington Mall.

Homes England, the non-departmental public body that funds new affordable housing in England, is the one that approved that $38,000,000 loan to Ilke Homes.

Ilke Homes chief executive Dave Sheridan said the business was currently considering whether or not a second facility will be needed to boost the firm’s production capacity from the planned 2,000 homes per year to 5,000.

Give me a minute here to contemplate that number. 2,000 homes a year from one factory would be 40 homes a week. Based on an average of 3 modules a home, that would be 120 line moves a week or 24 moves a day. 5,000 homes would be 60 line moves a day or one every line move every 8 minutes.

Quality be damned, just make sure you keep to the schedule! And let’s not forget to order enough carriers to haul them to the job sites at one every 8 minutes.

I can see why Homes England loaned Ilke Homes the money as it makes perfect sense to me now.

Ilke was set up in 2017 in a joint venture between steel frame modular specialist Elliott and housing contractor Keepmoat, and completed its first homes last year. Homes are constructed in the firm’s Yorkshire factory and transported to site by lorry. In June it signed a deal with housing association Places for People to deliver 750 houses, and also counts Keepmoat and Home group among its customers.

Let's hear from our friends in England about this.

1 comment:

Darryl Skelton said...

With the massive skills shortage in the building industry which has developed over the past 30 years in the UK, added to the controlled environment of factory manufactured homes, Modular Manufacturing is the future. Remember Henry Ford, over 100 years ago and his pioneering idea to build a car in 2 hours rather than 12 hours, I’m sure at the time people questioned how quality would be maintained.

Early days start up losses in a new business are nothing new, ramping up production and the cost savings which should come as the methodology develops are the prize going forward. Ilke, if they get it right are perfectly positioned to take advantage of the market.