Cavco Industries, Inc., a Delaware corporation, was formed on June 30, 2003
as a successor corporation to previous Cavco entities operating since 1965.
Headquartered in Phoenix, Arizona, the Company designs and produces factory-built
homes primarily distributed through a network of independent and Company-owned
retailers, planned community operators and residential developers. We are the
second largest producer of manufactured homes in the United States, based on
reported wholesale shipments, marketed under a variety of brand names, which
include Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes and
Chariot Eagle. The Company is also a leading builder of park model RVs, vacation
cabins and systems-built commercial structures, as well as modular homes built
primarily under the Nationwide Homes brand. Our mortgage subsidiary, CountryPlace
Acceptance Corp. ("CountryPlace"), is an approved Fannie Mae and Ginnie
Mae seller/servicer and offers conforming mortgages to purchasers of factory-built
and site-built homes. Our insurance subsidiary, Standard Casualty Co. ("Standard
Casualty"), provides property and casualty insurance to owners of manufactured
homes.
We construct our homes using an assembly-line process in which each module
or floor section is assembled in stages. Our assembly-line process is designed
to be flexible enough to accommodate significant customization, as requested
by our customers. The Company operates 19 homebuilding facilities located in
the Pacific, Mountain, Midwest, South Central and South Atlantic regions.
We distribute our homes through 45 Company-owned retail outlets and a network
of independent distribution points in 40 states, Canada, Japan and Mexico. A
significant number of these independent distribution points are located in Arizona,
California, Florida and Texas. Thirty-two of the Company-owned retail stores
are located in Texas
Our marketing strategy is to offer a line of manufactured homes that appeal
to a wide range of home buyers. Our principal focus is on two large and diverse
markets, which include the sale of high-value homes to entry-level and move-up
buyers and to persons age 55 and older. We also market to special niches such
as subdivision developers and vacation home buyers.
Our production strategy is to develop and maintain the resources necessary to
build to varied and unique customer specifications in an efficient factory production
environment. This enables us to attract retailers and consumers who want the
flexibility to build homes to meet their specific needs, but still seek the
value created by building a home on a factory production line.
We are the second largest producer of manufactured homes in the United States,
based on reported wholesale shipments, marketed under a variety of brand names
including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes and
Chariot Eagle. The Company is also a leading producer of modular homes, built
primarily under the Nationwide Homes brand, as well as park model RVs, vacation
cabins and systems-built commercial structures.
Approximately 80% of our products are constructed in accordance with the HUD
code. We also build park model RVs, constructed to standards approved by the
American National Standards Institute, a private, non-profit organization that
administers and coordinates a voluntary standardization and conformity program.
Park model RVs are less than 400 square feet in size, are primarily used as
vacation dwellings and seasonal living, and are placed in planned communities,
recreational home parks and resorts. We produce a wide variety of modular homes,
which include single and multi-section/modular ranch-style dwellings, split-level
homes, Cape Cod style homes, two and three story homes and multi-family units.
We also build commercial modular structures including apartment buildings, condominiums,
hotels, workforce housing, schools and housing for U.S. military troops (e.g.,
barracks). Commercial buildings are constructed in the same facilities in which
we build our residential homes using similar assembly line processes and techniques.
These commercial projects are generally engineered to the purchaser’s
specifications. The buildings are transported to the customer’s site in
the same manner as homes and are often set by crane and finished at the site.
We produce our residential homes in a variety of floor plans.
Each home typically contains a living room, dining area, kitchen, one to five
bedrooms and one or more bathrooms, and is equipped with central heating and
hot water systems, kitchen appliances, carpeting and window treatments. Feature
upgrades include fireplaces, central air conditioning, tile roofs, high ceilings,
skylights, hardwood floors, custom cabinetry, granite countertops and energy
conservation elements. We also offer a variety of structural and decorative
customizations to meet the home buyers specifications. With manufacturing centers
strategically positioned across the nation, we utilize local market research
to design homes to meet the demands of our customers. We have the ability to
react and modify floor plans and designs to consumers’ specific needs.
By offering a full range of homes from entry-level models to large custom homes
and with the ability to engineer designs in-house, we can accommodate virtually
any customer request.
We are focused on building quality, energy efficient homes for the modern home
buyer. Green building involves the creation of an energy efficient envelope,
including higher utilization of renewable materials. These homes provide environmentally-friendly
maintenance requirements, generally lower utility costs, specially designed
ventilation systems, best use of space and passive solar orientation.
Our manufactured homes are constructed and equipped at our factories. The finished
home is then primarily transported by independent trucking companies either
to a retail sales center, planned community, housing development, work site
or the customers site. Retailers or other independent installers are responsible
for placing the home on site and, in most instances, arranging for connections
to utilities and providing installation and finish-out services. Although our
manufactured homes are designed to be transportable, very few are moved from
their original site after installation.
We are constantly introducing new floor plans, decors, exteriors, features and
accessories to appeal to changing trends in different regions of the country.
Our factory-built homes are designed after extensive field research and consumer
feedback. We have developed engineering systems which, through the use of computer-aided
technology, permit customization of homes and assist with product development
and enhancement. We work with a variety of partners, meeting an expanding range
of housing needs from a home buyer’s private land to planned neighborhoods
to recreational or resort properties to accommodations for workforces in agriculture
and industry.
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