Westchester Modular”™s owners are gearing up to celebrate 25 years in business and breathing a sigh of relief 2009 is nearly behind them. Adding insult to injury, some still refer to modulars as mobile homes.
It”™s been that kind of year.
“It was a tough year for the entire construction industry,” said John Colucci, the Wingdale-based company”™s vice president.
Westchester Modular, which grosses approximately $20 million annually, entered into an employee stock ownership plan in 2001, making all its 150 employees owners of the company.
“Because every employee, whether an office worker or skilled craftsman, is an owner, each has a vested interest in doing well,” said Colucci. “They know that the work they do is going towards their own income and eventual retirement. We believe it”™s been a tremendous gain, not just financially but emotionally, for the company. It”™s allowed us to retain our highly skilled workers and they are sharing in the profitability of the company.
“Like everyone else, we”™ve were hit by the downturn of the recession,” said Colucci. “We are turning out three homes a week, which we feel is very good in this market. We”™ve been able to maintain a consistent production level all year long.”
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Because construction loans have dried up, Westchester Modular has been working with buyers to help them get the home of their dreams. “Since it has become so difficult to get a construction loan and is easier to get an end-loan commitment, we will give a construction loan to a qualified buyer,” said Colucci. “These are difficult times for everyone, but we make good business decisions and this is one way to help qualified buyers get into a new home.”
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Modular homes are not newcomers to the construction industry; in some parts of the country entire neighborhoods are made off site. But now modulars are gaining momentum in the tri-state area. Depending on the budget, a modular home can be more cost-effective than a stick-built home, saving approximately 10 percent to 15 percent on the home”™s price, according to Colucci. “One thing we stress to buyers ”“ we are not building mobile homes. These are traditional homes that are built in a factory and shipped in sections to the home site.”
The company”™s founder, Charles Hatcher, was originally a stick-builder in Westchester. “That”™s where he was first introduced to modular homes,” said Colucci. He was so impressed by the quality of the modulars he decided to go into the business himself, building a 110,000-square-foot factory in southwestern Dutchess County and Westchester Modular was born.
The biggest positive, aside from 10-15 percent cost savings for the buyers over traditional stick-built homes, said Colucci, is the time element in getting from drawing board to finished product. “Our work environment isn”™tsubject to the weather…our homes are built indoors, which allows for better precision, and we”™re not encumbered by the weather; our skilled craftsmen to get the job done without dealing with the elements.”
While Westchester Modular has 60 model homes to choose from, “because of the way we are set up, we can make changes the home buyer wants right in the factory without any extra cost to the purchaser. While we can work with customers design changes, we advise our buyers to work with an architect. We have a very good relationship with that industry; they bring their expertise to the table for the buyer and can help guide them in the right direction,” said Colucci.
You can “go green” with a modular, but just as with traditional stick-built homes, it is more expensive. Within the next month, Westchester Modular expects to receive overall Energy Star certification. “We meet or exceed the national and state building requirements and work with the local contractor who is going to install the home to meet the local building codes,” said Colucci.  “However, when it comes to the different ”˜green technologies”™ out there, you can”™t predict the site conditions until the outside contractor starts the foundation, which is part of the home”™s package price.
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When you buy a modular home, we guarantee five feet around the outside perimeter of the homesite. Hooking up the electrical and plumbing and running lines to the sewer or building septic and well are not part of the package. That”™s why, in some cases, getting into geo-thermal or other ”˜green”™ applications might not be suitable or cost-effective for the property owner.”
Modular homes qualify for the first-time homebuyer”™s credit, which was extended to March 31, 2010. “But that means they have to close on their home by June 1…so if anyone”™s considering purchasing a modular home or any other type of home, they had better move quickly,” said Colucci.
Westchester Modular delivers from Maine to Virginia, put its primary market is the tri-state area. It just opened a model at the entrance to Stewart International Airport off Interstate 85 that has been getting positive attention. “We had more than 200 people come through on our opening weekend and about 85 people requested more information and we”™ve sold four homes already,” said Mark Warner, the Orange county sales manager. “We consider that a very good indicator, considering the market,” added Colucci.Â
“We feel Orange county is a great location and purchased a 13-lot subdivision in Montgomery for people who want to buy one of our homes and put it on one of those lots,” said Colucci. “We did extensive research marketing before making the commitment. We make quarterly plans now ”“ and watch the market closely…it is definitely not the same business landscape as it was three years ago. In order to stay successful, we have to monitor what we do and what market we go into with great care.”
