Modular Home Businesses Feel Economic Pinch

MARSHFIELD, MA - For decades, manufacturing prefabricated and modular homes has been a prominent business in the Marshfield area. But the subprime mortgage debacle and current recession have hit the manufacturers hard. The Marshfield branch of Wick Building Systems Inc. permanently laid off about 70 employees in December and closed the plant for January and February.

While the Marshfield plant is closed, the company will reconfigure the manufacturing line to increase efficiency, said Tom Polacheck, a Wick manager. Seasonal closings are standard in the construction business, Polacheck said, but he said it was the first time in company history that the Marshfield plant would close for two months.

To survive the slowing economy, local modular home businesses are looking beyond traditional products and avenues of distribution. "We are very flexible due to our size. Being a smaller business, we can make just about anything," said Bill Himmel, plant manager at Stratford Homes. Recently, Stratford Homes shipped a unit to a ski lodge near Duluth. "We do everything from one room additions to four story multimillion dollar homes," said Himmel, adding that Stratford's reputation for adaptability is bringing in business.

Canada has become a lucrative market for the area's modular home industry. Wisconsin Homes, has become certified for the Canadian market, said Shannon Neinast, the vice president and general manager. "We recently sent our first multifamily home to Canada, and we're hoping this will be a bright spot," Neinast said.

While single family homes are the traditional product of the area's modular industry, more are producing multifamily homes and commercial buildings. "This housing market does force you to think outside the box," said Jim Hoogesteger, owner and CEO of Pittsville Homes. "You need to consider, 'What are the new markets, the new materials?' As a result, we've developed a new model for families," he said.

The new Pittsville Home model is built with amenities to accommodate parents as they age, such as wider hallways, fewer steps and easy-access cabinets, Hoogesteger said. "This is going to allow a mom and dad with kids that are gone to stay in their home longer before needing to be someplace like a retirement home," he said.