Modular / Manufactured / Mobile / Factory Built Homes
Opportunity Profile
Definition
Location Investment
Manufacture prefabricated or pre-cut wood buildings sections and panels, including log cabins/homes. Manufacture mobile homes or non-residential mobile buildings. Units are portable structures built on a chassis and designed to be connected to sewage and water facilities. Modular and manufactured homes are built away from the construction site. Suitable locations and affordable industrial lands are available throughout the Central Alberta region. Investment required $5 - $10 million. Requires a facility to be 5,000 – 10,000 sq. ft. in size, depending on product manufactured. Alberta had the third largest number of housing starts in Canada in 2003. Also in 2003, there were 4,544 housing starts in Central Alberta. Expected expenditure for residential homes is $6.4 billion in the province. Affordability is a key factor in the growth of manufactured housing. High quality manufactured homes are more affordable than site-built homes for first-time buyers. Alberta exports of prefabricated buildings totaled over $64 million in 2002. Overall, Canadian exports were over $604 million, a 7.7% increase from 2001. Exports of Canadian mobile homes in 2002 were $27 million, an increase of nearly 69% from 2001. Canadian prefabricated building exports totaled $604 million in 2002, compared to $561 million in 2001. Seventy percent of Canadian exports go to the US (mainly Western and North Eastern states). Other key export markets include Japan (20%), Europe, and other Asia-Pacific countries. Canadian revenue for prefabricated wood building manufacturing totaled $768.4 million (2002) and grew by 7.7% per annum on average. Canadian revenue for manufactured (mobile) home manufacturing reached $340.9 million in 2002, a growth rate of 6.3% per annum on average. A shift towards “Green” (environmentally friendly and energy efficient) building products presents opportunities for manufactured and modular homes as they produce less waste, have shorter building periods, and are more efficient labour-wise than site built homes. Majority of home builders in the region provide site built-homes. British Columbia leads Canada in prefabricated building exports. Major export markets include Japan (52%) and the US (42%). Competitive advantage derived from access to materials and strategic marketing. Access to experienced labour force. Cluster of building and building product manufacturers in the region. Building products industry employs approximately 1,000 people in Central Alberta. Easy access to building products for modular and manufactured homes. Few suppliers of logs (for log homes) so securing a supplier may provide a competitive advantage. Mainly truck and rail systems for shipping materials to other provinces or export. Year round, custom / batch / continuous production cycles. Minimal byproducts during production such as scrap lumber, sawdust / shavings, scrap metal, etc. Average wage of a manufacturing labourer is $13.12 per hour. Average wage for a Manager is $29.29 per hour. Typical manufacturing firms employ engineers, managers, trades people, administrators and labourers. Large parcel of land is required for facility and storage of materials. Fencing may be required for security reasons. Standard industrial utility needs. Certification may be required to build modular, log or wood homes. Government construction codes must be followed. Subject to the Environmental Protection and Enhancement Act Subject to International Building Codes if exporting. Alberta Economic Development www.alberta-canada.com Central Alberta Home Builders Association www.cahba.ca APA The Engineered Wood Association http://apawood.org Canadian Manufactured Housing Institute www.cmhi.ca Alberta Custom Homes Artistic Log Homes (Sundre) Chiles Homes Ltd. Commonwealth Homes www.albertacustomhomes.com (403) 638-4577 (403) 346-3800 www.commonwealthhomes.com www.csa.ca http://irc.nrc-cnrc.gc.ca/codes/home_E.shtml www3.gov.ab.ca www.iccsafe.org International Log Builders Association www.logassociation.org Modular / Manufactured Housing Association www.modular-homes.ca (Alberta & Saskatchewan) Blue Trail Log Homes (Rocky Mountain House) (403) 844-4777 Winalta Inc. www.winaltainc.com Viking Log Builders (Alix) (403) 747-3222
Market Opportunity
Competition
CAEP Interface Potential Raw Materials Transport Production Cycles Byproducts Employment Site & Utility Needs Regulations and Environment Issues
Agency Support
Key Players
Central Alberta Economic Partnership Ltd. (CAEP) 201, 4920 - 51 Street, Red Deer, AB T4N 6K8 Phone (403) 340-5300 / Fax (403) 340-5231 Website: www.centralalberta.ab.ca www.alberta-canada.com
ISBN 0-7785-3391-3