The recent Texas Manufactured Housing Survey (TMHS) revealed that the production of manufactured homes improved in June, a contributing factor to increased business activity.
Manufacturers made further efforts to augment operations and reduce backlogs that have been piling up over the past year.
“Backlogs started to ease for some manufacturers in June, but time will tell if that trend persists through July,” Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA), said. “Production days are reduced by Independence Day, and the summer sales season continues on retail lots.”
Hiring challenges, workers’ compensation and benefits, and rising prices of raw materials keep businesses tied up to increasing manufacturing costs of production with a low return of income and sluggish rate of a price increase.
Employment issues, which were addressed by manufacturers with expanded payrolls that contributed to higher operating expenses, would hopefully improve over the next six months according to survey respondents.
According to Dr. Harold Hunt, a research economist at the Texas Real Estate Research Center at Texas A&M University: “Shortages in many other building components, especially those involving the use of chemical resins such as siding and shingles, also hampers and negatively impacts the construction process,” the Texas Real Estate Research Center reported. But Texas’ manufactured housing industry continues to remain hopeful that 2021 will be a promising year.