Show Prospects For Mobile Homes Industry Shipments of mobile homes in 1972 were estimated at close to representing a hefty 16 percent increase over the such dwellings shipped the preceding a slowdown in recent months from the 27 percent rate gain in the first half of 1972 has caused concern that the industry's growth rate may decline further and that the point of market saturation may be close if not already Among the factors signaling a lesser rate of advance in shipments was the climb in shelter output last million single-family and multiple plus mobile homes-surpassing the average yearly demand for the set at million units by housing experts of the previous APPARENT overbuilding of apartments in some areas may also reduce sales of mobile since apartments are rivals of mobile home units and owners may offer incentives in order to attract tenants and fill their empty Also on the negative side for makers of mobile homes is the possibility that money and higher interest rates will hurt sales in coming ANOTHER deterrent could be quickening competition from used mobile Stricter controls over safety aspects of these dwellings may very well emerge over the period and these could serve as a damper on On the other those within the industry who see further good growth ahead for the shipment of mobile homes have some persuasive arguments on their Of major significance is the rise in the number of young married people as well as older retirees who comprise 75 to 80 percent of the market for such ALSO ON the favorable side c is the potential for greater use of double-wide sectional These are usually t composed of two produced and separately but-joined together at the Placed on a the double-wide resembles a small conventionally constructed but its price is substantially lower and furnishings are included with AND THERE are other encouraging including more liberal and considerably broadened financing practices as applied to this Mobile home park development on the part of producers and large real estate operators is also receiving heightened while more of the mobile units are being used for vacation or second IT SHOULD be noted too that the increasing popularity of these dwellings is prompting more local communities to streamline their zoning laws in order to permit mobile Weighing the favorable aspects against the less the Research Department of Babson's Reports is of the opinion that the most dramatic phase of expansion for the mobile home industry has probably FOR THE foreseeable chances favor growth of production in this housing line at a rate in the of 8 to 10 percent annually instead of the runaway improvement of 20 to 30 percent experienced in recent Under these it seems unlikely that the price earnings ratios of mobile-home equities will soon return to the former high levels seen before recent selling knocked them WHILE STOCKS of most mobile-home companies are not exactly on the bargain the Babson Staff that investors be warranted in commitments in those that have demonstrated in ability to withstand previous market Currently being followed are two leading companies in the mobile-home Skyline Corporation and Champion Home Builders While purchase is not advised at this the common stocks of these firms are worth watching and might be considered for purchase at lower |