Though we are 10+ years into this recovery, and housing starts are still closer to trough levels than peak, it is clear that the market is slowing overall. House price appreciation has stalled while costs still rise, and the lack of availability of skilled labor has made it more difficult for private builders to compete. At the same time, national builders are leveraging their lower cost of capital to drive accelerated growth and take market share by buying smaller builders; other consolidators include the Japanese housing companies and Clayton Homes, which have also been active buyers of late. As rates start to rise, housing affordability will be even more constrained, further crimping sales growth and affordability. Together, all these factors have led to an increase in Mergers and Acquisitions (M&A) as the public builders look to supplement their organic growth with acquisitions of attractive private builders.Read More
Margaret is moderating one of this year’s IBS Live discussions, “Offsite Insight: Products & Processes That Will Revolutionize New Construction” on Wednesday, February 20 from 11:30 AM – 12:15 PM.
We caught up with Margaret to get a sneak peek into her program.
NAHB: Without giving too much away, what will people learn at your IBS Education session?
MARGARET: Our panel will help the audience anticipate what’s around the corner, in terms of new products and processes that are available to increase the time and cost efficiency of the home building process. Consumers have increasingly higher expectations for a quick delivery time, but as an industry we also need to offer more affordable products.
I was honored to join Gerry McCaughey, European construction industry legend and my co-patriot on a research trip to our homeland in Ireland, and then to England and Germany. Having sold Century Homes, Europe’s largest fully integrated offsite solutions (FIOSS) provider to global insulation specialist Kingspan Group PLC in 2005, McCaughey now has his sights set on introducing this well-defined process to the U.S. market through his new venture, Entekra. Headquartered in Ripon, California, Entekra is already operating a manual line at a local factory, from which it started shipping open panel house frames last month.Read More