Our Manufacturing Facility
Our 25,000 Square Foot Salt Lake City, Utah Plant
New Century Homes & Stone Passions share this facility
History of Factory Built Homes
Factory verses Site-Built Construction
HISTORY OF FACTORY BUILT HOMES
The first prefabricated home on record was built in England in 1670 and shipped by boat to Cape Ann, Massachusetts.
During the gold rush of 1849, in California, over 500 "prefab" homes where shipped from New York to California and many more were imported from Europe and China.
In 1890, two companies set up home manufacturing operations in the United States. Hodgson Houses, in New England, was one of them, and has operated steadily since that time.
According to "The Complete Guide to Factory-Made Houses" by A. M. Watkins, "Up until the early 1960's houses made either all or in part in factories accounted for a mere trickle of new single-family houses built in the United States. Now they are streaming out of factories like a flood tide."
In 1982 over 612,000 manufactured houses were made in U. S. factories, according to John R. Kupferer, executive vice president of the Home Manufacturers Council of the National Association of Home Builders.
Don Spear, the publisher of "The Redbook of Housing Manufacturers", says that "the term 'factory-built house' could be used to describe up to 84% of all new residential construction."
To meet the dire shortage of homes after World War II, many factories were established and prefab-homes were rushed to completion. Poor basic construction, shoddy workmanship, and a lack of quality materials for construction of the homes of the era attached a stigma which the industry is still trying to overcome. The public re-education process has so far taken nearly 30 years.
By the 1970's, over half of the homes in the United States were made wholly or in large part in factories. By the early 1980's factory houses were being turned out by more than 1,000 manufacturers, with another 2,000 companies producing various construction components and assemblies to go into homes. These homes are being sold throughout the country by many of the nations largest home builders.
Once construction volumes are large enough, builders will be forced to turn to factory production concepts in order to control costs, just as they did with roof trusses, pre-built fireplace mantles, and "cast" marble sinks.
Conventional "stick built" methods are slow, with a high waste factor, and require time consuming hand labor, all adding to the end cost of the product. Everyone who is familiar with the typical construction site is also familiar with the truckloads of waste building materials that are carted off to the dump. The materials that are thrown away cost just as much as the materials that are used.
With the growth trend of the manufactured home industry, it is anticipated that by the late 1990's over 95% of all residential housing in the United States will have portions that come from a factory environment.
According to the U.S. Department of Commerce, the current average cost of a factory-built home is about $30.00 per square foot of living area. Stick-built homes average around double that and more. In some areas of the country, costs run over $80.00 per square foot.
Cost control is the driving force behind the growth of the Factory-Built Home Industry.
If anyone doubts the savings that can be generated by a factory environment, they have only to ask themselves:
"Could I afford a car built on a one by one basis by my local Mechanic?"
Would I even want a car built by my local Mechanic?
Is this any different from having your local home builder erect a home for you on a one by one basis?
It is high time for the new housing market to adopt efficient and effective manufacturing techniques.
New Home Buyers are entitled to more for their housing dollar than what they currently get.
According to Mr. Watkins book, "The art of efficient mass production of houses in factories is still not perfected. It is in a relatively early stage of development. At this stage though, the factory house is a huge step forward for the home buyer."
The factory built homes of today cover the full range of size, style and costs, starting as low as $25,000 to well over $1,000,000. There are four basic types of houses that qualify as "Factory-Built". Their differences lie in the percentage of completion when the unit leaves the factory and the undercarriage the home is built on.
Depending on whom you ask, you can hear a lot of different explanations on the difference between a modular home and a mobile home.
Major benefits accrue to the buyer of a Factory-Made Home. As with most things, there are a variety of choices and the benefits vary depending on the choice that is made.
There are four basic types of manufactured home.
Each of these will be briefly discussed so that you may know and understand the differences.
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The Mobile Home is the most complete of the Factory-Made Homes. Following traditional trends of size and design, these homes almost always leave the factory 100% complete, sometimes, even including the furniture. Mobile homes are built on metal frames that have axles and wheels connected to the framework.
Type #1: The Mobile Home |
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The Modular (also called Sectional) Home consists of two or more three-dimensional house components which are 90 to 95% finished when they leave the factory. At the home-site the component units are "stitched together" and become the complete house. With the hook-up of utility lines, the new home is ready for occupancy. The sectional units are generally transported on specially built trailers.
Type #2: The Modular Home |
The Modular Home Industry has provided the following information
Production of modular homes was estimated at just 102,000 units in 1994. This is about 38% higher than the 1991 low, but it constitutes only 28,000 units.
Product Segments
The modular home is defined as a number of sections, or modules, joined together to form a house. Computer imaging has now enhanced the early boxlike structures with unlimited floor plans and settings.
Market Share
In 1994, modular homes held a 6.2% share of the market. Modular, combined with panelized and HUD Code housing, but excluding production builders, account for about 60% of all residential structures.
Market Forecasts
The opening of several new western-based facilities capable of producing mod ALIGN="justify"ular homes will result in projected growth of 11% between 1994 and 1999.
Retail Distribution
Though there are few exclusive modular dealers, a growing number have switched from exclusive HUD Code dealerships into combinations with modular dealers.
Marketing and Promotion
Automated Builder reports 1993's heaviest advertiser was Amerlink Homes, which spent $2.5 million. Overall spending for factory-built housing totaled about $7.0 million, 21% lower than 1992's $8.5 million.
The Consumer
The 1990 U.S. Census found that two-thirds of Americans own their own homes. On average, owners are older and more upscale in terms of education, occupation, and household income than renters.
Industry Structure
About 120 modular builders operate 161 facilities nationwide, with about 750 units produced per firm.
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Panelized (Component Wall) Homes come from the factory in finished wall and flooring sections, that comprise the complete framing package. These "parts" are assembled at the home site into the completed house. On-site completion time is still reduced dramatically, but time and labor requirements exceed those required by either the mobile and modular homes.
Type #3: Panelized Home |
The chief benefit of this style of factory home is the elimination of design constraints in the house itself. By this, we mean that the pitch of the roof is not restricted because of the limitation forced on the modular home and mobile home by the underpasses that must be negotiated during the transportation of the home to the building site. Also, the design restraints imposed by the need to place the home on a semi-trailer disappear.
The Modular Home Industry has provided the following information:
Market Size and Growth
In 1994, panelized home production totaled 630,000 units; 15% more than in 1993.
Product Segments
The two basic types of panelized homes are traditional, where factory- produced panels are joined to create a house, and pre-cut or kit homes, which are shipped with all the pieces necessary to form the house.
Market Share
Since 1984, panelizers' share of the market has increased by 10%, and in 1994, panelizers gained the lead of the factory-built housing market, capturing 38% of market share.
Market Forecasts
Panelized home production is expected to increase by more than 40% over the next five years, exceeding 890,000 units in 1999.
Retail Distribution
Most panelized homes are sold through local builders or builder/dealers. Some are speculators who put up one or more homes as models, then set out to sell them.
Marketing and Promotion
Automated Builder reports 1993's heaviest advertiser was Amerlink Homes, which spent $2.5 million. Overall spending for factory-built housing was $7.0 million, 18% lower than 1992's $8.5 million.
The Consumer
Two-thirds of Americans own their own homes. On average, owners are older and more upscale in terms of education, occupation, and household income than renters.
Industry Structure
Nationwide, 363 panelizers produced 548,000 houses in 1993, an average of over 1,500 houses per firm.
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The precut packaged house kit is exactly that. Individual pieces of building material are cut to size and numbered. The parts are organized in the order of their use and then bundled, packaged, and shipped to the building site for assembly. The house must be totally constructed on site just like a stick built home. Type #4: Precut Package Home
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The main benefit of the Precut Package Home, lies in the fact that, in some cases the homeowner is able to assemble the home and save the bulk of the labor costs. Another benefit is that the materials are precut to required dimensions by the factory, which eliminates much of the normal waste generated by a stick built home.
Factory verses Site-Built Construction
Where would you be after the first day of construction?
This question was recently put to a group of home builders.
The answers varied. "If cost was not a concern, and I had 20 people working, lumber was there, and it wasn't raining, and everyone showed up on time, I might have the first floor finished. But, it wouldn't be a big house and everything would have to work out just right."
Ask that same question of New Century Homes and you'll get this response.
"We'll have the house tight to the weather. The subfloor will be finished, the exterior and interior walls will be erected, the interior walls will have the sheetrock on one side, the sheathing will be on the exterior walls, the tubs, showers, vanities and water closets would be in the bathroom ready for installation, cabinets, counter tops and appliances will be in the kitchen ready for installation."
And that's after one day!
Most professionals and potential consumers realize the advantages of modular construction. Customization, consistent quality, design flexibility, construction in a climate controlled facility, speed of construction, multiple inspections and strict control of costs are but a few of the advantages over a site built home or addition.
There are similarities between stick built and component wall constructed homes. Both processes require on-site clearing, excavation, utility hookup, and the building of a foundation.
Once the foundation is in place, the modular home is delivered. The sub floor and walls are "set" on the foundation by a skilled crane operator and a "set crew". The crew fastens the walls to the sub floor and to each other. They then install the trusses and apply the roof sheathing, which makes the house tight to the weather. "Finish Up" now begins. This encompasses finishing the exterior trim and siding as well as installing the heating, electrical and plumbing. Finish the sheetrocking and painting, and then install the floor coverings. Installation is completed.
Soon after the Finish Up phase has begun, the electrician arrives. The necessary connections for electric power are completed and the meter is installed. Water service hook-ups are completed. The installation of the heating system, with the connection of the supply lines, soon follows. Final grading is completed in preparation for landscaping.
Custom paint and wallpapering now begin. Special appliances and any unique touches requested by the home owner are completed. The final stage of construction is cleanup. Windows are washed and construction debris is removed. Final inspections are completed and it's move-in day. Decks and porches, as well as landscaping plans, may extend beyond the completion date.
Total construction time, from initial site development to Certificate of Occupancy, is usually 5 to 6 weeks.
As the building industry enters the 21st century, all phases of factory construction will continue to gain wider acceptance. The educated consumer will demand affordable, quality-built homes.
New Century Homes is prepared to deliver.
Most of us don't realize there are many costs incurred when building a house that are in addition to the contract price. Weather plays havoc with a construction timetable. While the postal service may deliver the mail through rain, snow, sleet and hail, masons, framing carpenters and roofers don't work in bad weather. If Mother Nature wants to prolong the building process, there is little anyone can do to stop her. A modular home is built in a factory under climate controlled conditions. Weather delays are eliminated. Your home arrives on site at a prearranged date and time.
Construction loan interest begins as soon as the first disbursement is received from the bank. Each month, the interest the bank charges for the construction funding is billed to the homeowner. Each month, the homeowner must pay this interest only mortgage payment. As more funds are borrowed, the interest payments accumulate often putting a strain on the construction budget. These payments continue until the house is completed. Construction interest may add several thousand dollars to your building budget. Because of the speed with which New Century completes the construction this cost is greatly reduced.
Inspection fees are billed to the homeowner every time a construction budget payment is requested from your builder. The bank sends an inspector to your home site to verify that the work is proceeding as required, or is completed. A fee is charged for these inspections. Many disbursement schedules contain twenty or more inspection points. Inspectors view the foundation, the house set on the foundation, the button up work and await the Occupancy Permit. Fewer inspections result in fewer visits and the accompanying inspection fees charged to the homeowner.
Building material costs are controlled by the modular builder. Construction material suppliers are contracted to supply building materials at a preset price on a yearly basis. This reduces the fluctuation in material pricing that site builders must cope with on a weekly basis. Many home owners have experienced the impact that unforseen material price increases have on their construction budget. The prudent and informed home builder requires accurate and controlled costs during the building process. Your modular home builder will work with you to stay within your budget. In modular home building there are no delays, no cost over runs, no kidding.
New Century Homes has the added advantage of being able to use the Wildewoode Lumber in many phases of the home construction process. Wildewoode Lumber is a huge savings over regular wood and is superior to wood.
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