Today’s interview with Phil Hickman was one that I was
hoping to get for some time. Phil has been involved in helping Excel Homes
expand into a five plant modular home operation spanning a huge part of the
country.
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| Phil Hickman, President of Excel Homes |
Modcoach: Phil, thanks for taking the time to speak with me.
First question I have is how did you get into the modular home industry?
Phil: I am the President of Excel Homes and All American
Homes which include Mod-U-Kraf and Excel of Maine, Keiser. I have been in
the modular industry for 18 years starting at Unibilt Industries as VP of
Operations. Previous to that I began my career at General Tire and Rubber
Company in operations as Materials Manager, Huffy Corporation as VP of
Operations. I have a bachelor’s degree in business management.
Modcoach: How has Hurricane Sandy impacted your factory?
Phil: Hurricane
has impacted our factories in a big way. Our strong builder network in
York
roughly 50% in the past year, directly related to the Hurricane Sandy
rebuild effort. At the same time we are experiencing a substantial increase in
business from other key markets. Excel Homes has been able to shift our
southern business and some of our
business to
spread evenly across the builder base allowing growth in all areas of the
business.
Modcoach: I understand that commercial business was a large
part of your business. Is it still such a big part?
Phil: Commercial continues to be an important part of
our business. IDBS, our commercial division, is seeing a great demand for
multi-family and condominium construction. Our unique ability to shift
production between 5 factories allows us to better manage the commercial backlog
at each facility. This flexibility keeps the single family business running
largely uninterrupted by the commercial product.
Modcoach: Is the size of today’s homes different from the
boom times before 2008?
Phil: We have seen a steady increase in the average size of
the houses we are building, as well as more attention to higher quality
finishes and energy efficiency. As we have continued to focus on the highly
customized market, we have built a reputation among higher end buyers for
building a high quality house. That’s driven our business to larger houses
compared to pre-2008 – in fact our average house is >15% bigger than it was
in 2007.
Modcoach: Have code regulations hurt our industry?
Phil: Yes, we continue to work with state and local officials
to stay informed and on top of the current regulations. We do run into specific
codes or regulations that work against the Modular method of building.
Modcoach: Why do you think that the modular home industry
still stuck at 3% of the total new home market?
Phil: Our industry as a whole has done a poor job of
educating the general public on what it means to build modular. There is still
a lot of confusion or misconception in the market place on the type of homes we
build. We have made some great strides in the past years with exposure on media
such as This Old House, and Modern Marvels. The industry as a whole needs more
exposure like this to gain acceptance.
Modcoach: How does a company with such a small group of
executive leaders oversee 5 modular production facilities at once?
Phil: This requires strong management at the local level.
Each one of our production factories is operated by the local management with
regards to sales and operations. These folks know the business and the
workforce in each area. In many cases they have been working alongside their
colleagues for 30 plus years. This approach combined with some fresh young
talent and the leadership of our owners combine to make managing these
factories enjoyable.
Phil, it’s always a pleasure talking with you and I want to
thank you for sharing your thoughts about the modular housing industry. Next
time, lunch is on me.
