There are hundreds of firms that produce mobile homes. The largest plants can produce up to 5,000 units per year, the average annual capacity being about 1,000 units. About 500 plants are spread evenly over the country. The some 10,000 dealerships—retail outlets for the manufacturers' product—are local, independent, and relatively small. Most mobile-home dealers represent three or four manufacturers, with dealer markups averaging 20% to 25%.
Historical Background
The mobile-home industry developed from the manufacture of trailer-coaches for leisure use in the 1930s. But by the end of that decade, about half the output was already sold for use as permanent housing. During World War II the government purchased large numbers of mobile homes as primary housing for servicemen and workers. After the war the severe housing shortage created a booming mobile-home market. By 1952 the transition to the use of mobile homes as primary housing was complete, and the trailer-coach industry began to split into two separate components. The mobile-home industry concentrated exclusively on the production of primary housing, while the recreational-vehicle industry specialized in the production of vehicles for recreational use.
In the 1950s, production of traditionally built homes caught up with demand, and the mobile home lost favor because of its inadequate space and amenities. This prompted mobile-home manufacturers to provide larger and more complete units, and in the 1960s the fully appointed and more spacious expansible units and double-wide units were produced.
After World War II the mobile-home industry initiated a program of self-regulation designed to develop nationwide production standards. By the mid-1960s this industry code had been adopted by almost every state. The code served as the basis for federal mobile-home standards, which were established in 1976; the code was revised in 1994 in order to comply with the Energy Policy Act. This uniform national code gives mobile-home manufacturers a significant advantage over traditional builders, who are subject to thousands of different local building codes. Mobile homes built to the federal standards have the same economic life as traditional housing, if they receive comparable maintenance.
