Market Analysis – 72153902 – Mobile home site set up and tie down

Executive Summary

The global market for mobile home site setup and tie-down services is estimated at $1.2 billion for 2024, driven primarily by the demand for affordable housing. The market is projected to grow at a 3.5% CAGR over the next three years, closely tracking new manufactured housing shipments. The single greatest challenge is the persistent shortage of skilled, licensed, and insured labor, which constrains capacity and drives up service costs, posing a significant risk to project timelines and budgets.

Market Size & Growth

The global Total Addressable Market (TAM) for this service is niche and directly correlated with manufactured housing placements. The United States represents over 85% of the global market, followed by Canada and Australia. Growth is sustained by the affordability gap in traditional housing and increasing acceptance of modern manufactured homes. Slower growth compared to the overall construction sector is expected due to the specialized, low-tech nature of the work.

The three largest geographic markets are: 1. United States (Southeast and Southwest regions) 2. Canada (Western provinces) 3. Australia (Regional and coastal communities)

Key Drivers & Constraints

1. Demand Driver (Affordable Housing): The primary driver is the widening gap between median incomes and the cost of site-built homes, pushing consumers toward manufactured housing. In the US, over 100,000 new manufactured homes are shipped annually, each requiring this service [Source - Manufactured Housing Institute, Jan 2024].
2. Regulatory Constraint (Building Codes): Installation is governed by stringent federal (HUD), state, and local codes, particularly for wind and seismic zones (e.g., Florida, California). Evolving standards require continuous training and certification, acting as a barrier for non-compliant installers.
3. Cost Driver (Labor & Materials): The service is labor-intensive. A shortage of certified installers puts upward pressure on wages. Volatility in steel (anchors, straps), concrete (foundations), and fuel prices directly impacts job costs.
4. Demographic Shifts: Demand is supported by two key demographics: first-time homebuyers seeking entry-level options and retirees downsizing into managed communities.
5. Constraint (Market Fragmentation): The supplier base is highly fragmented and localized, making it difficult to achieve economies of scale, consistent quality, and standardized pricing across a national portfolio.

Competitive Landscape

The market is characterized by a hyper-local and fragmented supplier base with low barriers to entry from a capital perspective, but high barriers related to licensing, insurance, and reputation.

⮕ Tier 1 Leaders * Clayton Home Building Group (through its installation network): Vertically integrated; offers installation as part of a turnkey home-buying process, ensuring consistent volume and process control. * Cavco Industries Inc. (and subsidiaries): Similar to Clayton, leverages its manufacturing and retail footprint to provide or subcontract installation services, offering a one-stop-shop solution. * Legacy Housing Corporation: Focuses on providing a complete package from factory to foundation, often utilizing a network of dedicated independent installers.

⮕ Emerging/Niche Players * Regional Installation Specialists: Companies like CIS (Constructive Installation Services) in the Southeast US focus exclusively on B2B installation for manufacturers and community owners. * Manufactured Home Community Operators (REITs): Large operators like Sun Communities and Equity LifeStyle Properties are increasingly insourcing or using preferred large-scale contractors to control quality and cost for new placements within their communities. * Technology-Enabled Brokers: Emerging platforms that connect certified installers with manufacturers and homeowners, aiming to improve scheduling and price transparency.

Pricing Mechanics

The pricing model is typically a Fixed-Fee-per-Unit quote, based on home size (single, double, triple-wide) and foundation type (e.g., slab, runners, basement). The price build-up consists of Labor (45-55%), Materials (20-25%), Equipment (10%), and Overhead & Margin (15-20%). Site-specific factors like soil condition, accessibility, and local permit fees can add significant variability.

The most volatile cost elements are labor, steel, and concrete. Recent changes include: 1. Skilled Labor: Wages for certified installers have increased by an est. 6-8% in the last 12 months due to persistent shortages. 2. Steel Components: Prices for steel anchors and tie-down straps, while down from 2022 peaks, remain volatile, with fluctuations of +/- 20% over the past 18 months based on raw material costs. 3. Concrete: Ready-mix concrete prices have seen a steady increase of est. 5-7% year-over-year, driven by cement and transportation costs [Source - Portland Cement Association, Feb 2024].

Recent Trends & Innovation

• Stricter Wind-Zone Regulations (Aug 2023): Following recent hurricane seasons, states like Florida and Louisiana have updated installation requirements, mandating stronger anchoring systems and more frequent inspections, increasing material and labor costs per installation.
• Vertical Integration by Community Owners (2023-2024): Large manufactured housing REITs are increasingly acquiring regional installation companies or building in-house teams to gain better control over new home setup timelines, quality, and expense.
• Improved Material Technology (Ongoing): Introduction of enhanced corrosion-resistant coatings for steel tie-down components and anchors, extending the lifespan of installations in humid or coastal environments.
• Digital Project Management (2023): Larger installers are adopting mobile software for scheduling, quality assurance checklists, and photo documentation, providing better visibility and compliance records for corporate clients.

Supplier Landscape

Regional Focus: North Carolina

North Carolina is a top-five US market for manufactured housing, with over 7,000 new homes shipped annually. Demand is robust, driven by population growth in the Research Triangle and Charlotte metro areas, coupled with housing affordability challenges. The state has a mature supplier ecosystem, including several manufacturing plants (e.g., Clayton, Oakwood Homes) and a deep network of local and regional installers. The North Carolina Department of Insurance (NCDOI) strictly regulates the industry, requiring installers to be licensed and to pass inspections. Labor availability remains the primary constraint, particularly for licensed crews capable of handling large community projects. The state's favorable business climate is offset by the administrative burden of its robust regulatory and inspection regime.

Risk Outlook

Actionable Sourcing Recommendations

1. Consolidate Regional Spend. Move from a fragmented, site-by-site sourcing model to regional Master Service Agreements (MSAs) with 2-3 pre-qualified, high-capacity installers per key region. This will standardize rates, improve quality control, and guarantee capacity. Target a 5-8% cost reduction through volume-based discounts and reduced administrative overhead.
2. Implement a Rigorous Supplier Qualification & Performance Program. Mandate stringent, non-negotiable requirements in all RFPs, including state licensing, a minimum of $2M in general liability insurance, and a safety record (EMR) below 1.0. Track KPIs for on-time completion, pass-rates on first inspection, and safety incidents to drive continuous improvement and mitigate liability risk.