“One man’s treasure is another man’s trash.”
This proverb encapsulates the varying perspectives people have on the value of objects, something that becomes painfully clear during the process of cleaning out a deceased parent’s home. Sentimental items once cherished by parents – like Grandma’s assorted plates, silver-plated tea services, picture albums, and old favorite chairs – often end up discarded by their children, either thrown into a dumpster or sold at an estate sale.
This scenario, common in many families, is metaphorically parallel to what happens in the modular home industry when a factory is sold to an outside investor.
Modular factories often accumulate materials and equipment that they consider valuable for their operations. However, when a modular home factory is sold, the new owners, armed with fresh perspectives and possibly different experiences, usually view these ‘treasures’ as nothing more than trash. This is true regardless of whether the new owners are veterans of the modular housing industry or newcomers to modular manufacturing.
The new owners will start by clearing out the obvious trash – materials that have overgrown the warehouse space, carriers in the yards with broken rails and missing wheels, or abandoned production lines that have turned into storage spaces. This process of cleaning and decluttering will then extend to a critical evaluation of the production line and procedures. New owners, having invested significant capital in purchasing the factory, will not hesitate to discard outdated and unused equipment. They will scrutinize every procedure at each assembly line station, determining what can be dumped, saved, or reinvented.
The next area of focus will be the internal systems used by the Sales Manager, Production Manager, Service Department, and other departments. Outdated systems will be discarded, making way for more efficient and modern alternatives.
Then comes the most sensitive part of the cleaning process – evaluating the staff. Typically, only the receptionist and the CFO are safe immediately after a change in ownership. The receptionist is usually spared because of the high turnover rate in this position and their knowledge of the office dynamics. The CFO, on the other hand, is retained temporarily to help the new owners understand the financial landscape of the business. Apart from these two roles and the production line staff, most other employees, including top salespeople, may face the axe.
The era when upper management could pool resources to buy their factory is likely over. Today, young tech-savvy entrepreneurs, backed by millions in investment money and brimming with innovative ideas, are the ones making acquisitions or starting new ventures. They bring a fresh perspective, often discarding the old and worn-out in favor of the new and shiny.
For those not intending to sell their modular home factories, a proactive approach to ‘taking out the trash’ might be crucial for staying competitive. There are experts in modular efficiency ready to help streamline operations, bring in new procedures, and hire the right people to transform the factory into a more efficient and productive entity.
Delaying this process of renewal and rejuvenation could be risky. The next call might come from a high-tech entrepreneur with $40 million, ready to buy the factory at a bargain price or, even worse, start building a competing factory next door. Therefore, it is imperative for modular home factory owners to periodically assess their operations, discard what is no longer useful, and bring in new ideas, procedures, and people to keep their businesses competitive and relevant in a rapidly evolving industry.
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Gary Fleisher, the Modcoach, author
