We sit down with Champion Homes and talk affordable durable housing

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[00:00:22] Eric Goranson: And it's a healthier home. A hundred percent healthy, a

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[00:00:26] Eric Goranson: Yeah. Well, great, great example. I mean, everybody out there in our audience is driven by a job site. They see the, you know, neighborhoods. going up down the street and every four days you see the dumpster getting picked up and hauled off half full of wood building materials whatever you know all that waste that goes out of there and that's what's so efficient about the way you guys build because you get materials in the right bank and it's so optimized that i'm like when it

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[00:00:58] Mike Tweden: Welcome to

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[00:00:59] Eric Goranson: This is where [00:01:00] we hope you get the most out of your home through information and education. Thanks for joining us today. We are here at design and construction weeks, the international building show. And I am sitting in a beautiful house right now with champion homes, and this place is amazing guys. Let's get some introductions going so we can start talking about these beautiful homes you guys are building.

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[00:01:22] Wade Lyall: Well, I'm Wade Lyle, executive vice president for Champion Homes. I work with our business development team across the United States representing our 47 factories between Canada and the United States and have alongside of me, Mike Tweeden.

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[00:01:41] Mike Tweden: It's a lot

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[00:01:49] Wade Lyall: was packed. I think I heard, uh, this morning, there's already been over a hundred thousand people, um, that have actually checked in to the show. And I know yesterday we had [00:02:00] over 7, 000 people that came through the display.

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[00:02:06] Eric Goranson: Well, you guys are building some great homes and, you know, earlier on in the year, I was talking to you guys, of course, Brent from my local area, You guys are such an opportunity out there for people out there that need something that's beautiful and affordable because we have an affordable housing issue in the U S right now.

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[00:02:42] Wade Lyall: And so all of our designs, when we come up with the design, we think about who the buyer is, what the affordable cost factor is, and how do we back into that number? But more importantly, through our efficient production process. We can drive labor costs down. We, we maximize the scale of the size. You know, when you're doing over 27, [00:03:00] 000 homes a year, we can really leverage our spin to get really cost effective products.

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[00:03:16] Eric Goranson: This kitchen is twice as big as my home. Oh, yeah. This island is stunning. I mean, it's what?

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[00:03:29] Wade Lyall: Whoa,

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[00:03:35] Wade Lyall: So, so Eric, you just said the wild word and we do we do home demonstrations nationally. Seems like every month Mike's putting on a show somewhere in a venue and we're constantly trying to get the product out in front of.

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[00:04:04] Wade Lyall: Oh, wow. Yeah. Right. This is not what I expected. And when you think about the evolution of our build methods and some of the technology and some of the automation things we're doing, we're really putting quality as the focus. Right? Yeah. And when you can get a mortgage on this, that goes out to 30 years.

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[00:04:22] Eric Goranson: a lifetime. No question. And what's cool about this is you guys are building a better home than these spec guys are on no fence. Do you spec builders out there to check, checking it out right now, but you're not building this home inside a controlled area. I mean, I can't tell you how many job sites I've been out to.

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[00:04:51] Mike Tweden: You, you hit it, uh, factory built housing to me. It's just a smarter way to build when you look at climate control, material control. [00:05:00] You have artisans in the in our factories that they become specialists in that and they come in every day and they're able to own their skills in that area instead of having to switch.

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[00:05:14] Eric Goranson: It really is. Cause for instance, your molding guys, your molding guy, right? They're the ones doing it. They're not the plumber yesterday. They're not the drywall of the day before they do what they do. And they do it all day long.

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[00:05:49] Wade Lyall: And they do it repetitive day in and day out. And it ends up being a good quality product. Yeah.

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[00:06:04] Eric Goranson: You're making one job harder. That's exactly right. Those two trades don't talk on the

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[00:06:23] Wade Lyall: Yeah. So when one department finishes and moves to another. They get inspected before it's accepted. And so it ensures that we're constantly working out the deep, the bugs and the defects. Correct. And that's

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[00:06:42] Eric Goranson: There's not a wall. That's plum. There's nothing going on, right. But a past the building inspector. You guys have a whole level of actual quality that you're going through and making sure and I've been to the factory. See what goes on. It is amazing to watch that. It's like a symphony and they're going on as far as just everybody working [00:07:00] together and all of a sudden there's like, wow, there goes that wall panel, but it's it's studs.

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[00:07:08] Wade Lyall: better. Well, when you think about the bones of a house. It's the floors, it's the walls, it's the roof really end up determining whether you have a good quality product in all of those processes in our factories are in a permanent fixture, a jig that's made perfectly square, right?

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[00:07:41] Eric Goranson: Yeah, and it's just awesome because on the job site, there's somebody later on trying to fix it. Right? That's correct Yeah, and to

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[00:08:03] Eric Goranson: requirements.

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[00:08:22] Wade Lyall: the roof.

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[00:08:41] Wade Lyall: Okay. And how do we prevent it from happening? And since it is very repetitive process, we can put in the safety precautions and we really focus on that for our people.

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[00:08:56] Eric Goranson: It's not like there's one person floating around. I, when I was walking through, [00:09:00] I'm like, wow, there's a bunch of safety people around here. And that's super cool to see because. That means that person showing up to work the next day and they're not having to lose time. You're not paying for that.

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[00:09:13] Wade Lyall: a fact. And we do, we work with OSHA, right? And since we do have the 47 factors, if we identify a potential safety concern from one, we share it to the others immediately. We go do an internal inspection to make sure we check that off and get it

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[00:09:25] Eric Goranson: That's great. Let's go back to affordable housing because this again is such a like you said it's a crisis across the country and there's such a misconception with state federal even local governments On zoning and they could fix this relatively easy and quickly if they just identified some of these issues, because building codes are zoning in areas where does that were designed for grandma's 1976 single wide that it's been decades since that was built.

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[00:09:58] Wade Lyall: So that's the biggest issue. It [00:10:00] is literally the image, right? It's the vision that these officials have in their head. And hence the reason we try to get out to them and demonstrate products to them constantly. We focus heavily on innovation and really trying to make attractive products.

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[00:10:26] Wade Lyall: And, and it looks like the house next door. Right. So we're just taking the core of the house, manufacturing it in a very efficient quality environment. Yeah. Most cost effective way to build. Bring it to the job site and then let's make it fit the environment. Yeah. And why would, why would officials not want that in their area?

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[00:10:49] Eric Goranson: great example. I mean, everybody out there in our audience is driven by a job site. They see the, you know, neighbor's house going up down the street and every four days they see the dumpster getting picked up and hauled off half full of wood, [00:11:00] building materials, whatever, you know, all that waste that goes out of there.

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[00:11:18] Mike Tweden: Well, you said you toured the factory.

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[00:11:30] Yeah,

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[00:11:34] Mike Tweden: that goes back to your, to the point of people are doing the job that they're trained to do.

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[00:11:44] Eric Goranson: building. Which is great for the environment, but it's also great for the person that's buying it. Because if you're going out and buying this house, for instance, you're not paying for all that material that one you paid for to get brought in.

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[00:11:58] Wade Lyall: so you've paid for it twice. [00:12:00] Yeah. So we even down to the design, right? So when we design a home, we look at how many cuts we're going to have to make on a piece of sheetrock. And if we do one cut, can we take that piece and use it somewhere else?

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[00:12:29] Eric Goranson: waste.

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[00:12:47] Eric Goranson: composite countertops. I mean, let's, let's start getting into it. You know,

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[00:13:10] Wade Lyall: We absolutely focus on what's trending, right? We have, we have our own design department nationally. They come to these shows while we're here presenting our product. They're looking at what's trending inside the hall in there and we'll come back and we'll continue to update and refresh. And based on the volume we run at.

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[00:13:38] Eric Goranson: and an affordable price point too. I mean, I'm sitting here looking at stainless steel appliances.

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[00:13:59] Wade Lyall: [00:14:00] It is. And even more importantly, the speed at what we can build it. So if you're a builder, right? And we talked about these small spec home builders, Yeah. We, we, we want to partner with them. We want to help them be more efficient and deliver a better quality product for that end consumer. Looking for that affordable house, the speed at what we can do this while we're building this in a factory.

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[00:14:35] Wade Lyall: That's utilizing your capital very wisely and it saves the end consumer a tremendous amount of money.

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[00:14:51] Eric Goranson: Nobody has any idea what that house is,

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[00:15:08] Mike Tweden: And the city goes from a costing lot to a satisfied homeowner. Some of the housing situations resolved and they have a property tax generating piece of property. And that person is spending money in their community. So that sales tax has gone through. So there's a home buyer that wins the city and municipality wins yet.

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[00:15:31] Eric Goranson: Yeah, that's the part. And, and, and coming from Oregon, that's one of the biggest problems we have out there. It's just, and you guys know, it's one of those problems that, that plenty of states have is that there are people that just have not changed how they think about this stuff.

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[00:15:58] Wade Lyall: right? And it's not, and [00:16:00] even the new communities we're doing today, right? We're, we're developed developing them for the lifestyle of the person that's going to live there.

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[00:16:19] Wade Lyall: You know, our sweet spot, 1600 to 1800 square feet, three bedroom, two bath. And it's perfect for that type of buyer.

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[00:16:50] Eric Goranson: And in a few months you're out of there.

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[00:16:53] Eric Goranson: 30, 60 days. That's what I mean. Yeah. You can spend more time getting the landscaping knocked out than anything else. And that's the crazy part. I [00:17:00] mean, the house

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[00:17:07] Eric Goranson: ago.

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[00:17:15] Wade Lyall: Very true. In seven days.

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[00:17:21] Wade Lyall: has any idea. No.

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[00:17:33] Eric Goranson: Well, I noticed one thing in your construction, at least up at the skyline plant by my house about how you guys use those main beams down the middle.

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[00:17:42] Wade Lyall: Well, it kind of goes back to what I said about the bones of the house being the most important, right? So when you put a ridge beam across that, that center section, it just makes that house as strong as a sidewall. Right. And so that is, it is for the quality. Right. To make sure we get the house to the site, we get it set and it minimizes cracks and it's perfect.

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[00:18:17] Eric Goranson: Cause you guys really regionalize things. So it looks like it fits, you know, something that's going to fit maybe in the. Pacific Northwest, where I am is not what's going to work as well in the Southeast or down in Texas or SoCal or up on the East coast. But you guys have a lot of different styles for different people in different homes.

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[00:18:34] Mike Tweden: there are regional differences you hit, but if you take your typical site built bill or they take a piece of dirt and they scrape it and cookie cut the lots and they come in with four or five models. A large portion of our businesses to the individual homeowner that wants a certain look or landowner that they want a certain look a certain lay on the property.

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[00:19:16] Mike Tweden: It's, it really is a unique situation and you can see it change as you work coast to coast.

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[00:19:40] Eric Goranson: Yeah, I

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[00:19:57] Wade Lyall: Advantaged when you get to a scattered lot. So [00:20:00] picture a site builder having to drive 30 miles out of town versus having a subdivision going site to site. So we get 90 percent of it finished, right? We send our crews out to do the onsite finishes, have the foundation done, but that process is so quick.

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[00:20:18] Eric Goranson: Cause those things get so expensive when that. Contractor has to commute that 30 miles to get out of town, right? That's correct. They sit there and go, okay, well, that's, that's an hour lost each day, but I got to pay my guy an hour.

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[00:20:45] Wade Lyall: Yeah. It's, it's big. So, you know, to that point, when you think Our materials come to the factory, right? And most of our factories are in locations. We have easy access to get in and out with the big supplies of trucks and whatnot. And then we're selling that and then we just have one delivery to the site.

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[00:21:00] Eric Goranson: it simple. Yeah. And, and cost effective for everybody and they get a better house. We

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[00:21:07] Eric Goranson: Let's talk energy efficiency. Cause that's a big thing too. These days. I mean, nobody's utility rates are going down right now. Not happen. I don't care where you're at. I'm not seeing that happening.

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[00:21:20] Wade Lyall: energy is a major priority for us. The good thing about our production process, manufacturing process, you know, my kid on it with the inspections and the national code that we built to. We're regulated even tighter than a traditional site builder, right?

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[00:21:50] Wade Lyall: You know, two by six walls to get the heavy installation, but being to the national code, you know, energy star is regulated, right? And you go to the energy star and it's [00:22:00] inspected inside the factory during the process. Right. And so we focus on the energy codes. We've got a new energy code coming up here.

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[00:22:21] Eric Goranson: home.

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[00:22:41] Eric Goranson: And you don't have to worry about all the things that got missed that you would typically see in a side build home and that makes for a tighter house.

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[00:23:05] Wade Lyall: Right? Yeah. And then, you know, we're typically using a phone process for the application. So it does eliminate screws and some other drywall things that you could have. And so we know when we pick that proof up, it's 100 percent square, 100 percent plum. We're putting it on 100 percent square and plum.

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[00:23:31] Eric Goranson: cool thing. I love seeing you guys use adhesives. Cause it's one of my pet peeves.

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[00:23:51] Eric Goranson: They're like, wow, why it's seven minutes was a ceiling falling in where last year, you know, two years ago, it lasted twice as long and they went, oh, lightweight drywalls to put more air in [00:24:00] the drywall. Then you have a fire, right? Yeah. So that adhesive is something we should be doing on every home, but you guys have been doing it for a long time.

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[00:24:08] Wade Lyall: we, we do it started out because it was, it was very efficient and very functional, right? Yeah. And it did the, the application made it really seamless. And it is a better product. And so it just makes sense to keep using that. And we, we use it from wall or ceilings going down to the walls and just continuing to try to

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[00:24:24] Eric Goranson: Yeah. It makes it a lot easier. And like you said, there's no more pops cause there's not a mechanical fastener in there. That's not doing that great a job of holding anyway. That's correct. That's why you have so many screws and a piece of drywall just to hold it up there. That's right. That makes sense.

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[00:25:00] Eric Goranson: It's so different, but every time I see, or I'm in a different area, it seems like you guys have got. You know, that market covered on the style trend, we

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[00:25:21] Mike Tweden: So they go out and they walk, see what's going on in, in the industry. Type of area that the housing market, so they can bring those into into the houses we're producing. No, but it is a small team, but we do have a design studio where we have a lot of the different materials to test and pair up together.

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[00:25:43] Eric Goranson: people. Nice. Let's talk about the, the brands under your umbrella. Cause you guys have a lot of different people out there, right? Yes. Yes. You know, I mean, we have a brand in my, in my area, you guys have, you know, I mean, there's, you guys have a lot of hands in a lot of places.

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[00:25:58] Wade Lyall: So, so champion [00:26:00] in general, you know, grew through a lot of different acquisitions looking for manufacturers that have the same principles that we have in geographies where we needed distribution. And so, so we did kind of grow through some acquisition. But, but there, we have many brands like our skyline brand that you're familiar with, uh, in Oregon, right?

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[00:26:30] Wade Lyall: You know, our, our Genesis brands, one we're really proud of, which, which really, I think I'd mentioned it earlier, kind of focused toward these builder developers that are maybe struggling. With with trades today, and so we really want to try to develop products in a process. To help them expedite their build process with the better quality product and ultimately getting the most affordable price to the end consumer.

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[00:27:15] Wade Lyall: We're working on the production and the engineering and what needs to happen. And when they're finished, we're coming together to have that little seamless process, expediting speed, which is very important because it drives out costs and that's all a benefit to the end consumer.

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[00:27:29] Eric Goranson: I mean, think about that. And that's one of the biggest things I think, again, with building today, that's one of our biggest challenges outside of the zoning and other issues is, you know, the trade skills gap we have out there. You know, you guys have that ability though, which is cool to take somebody in under your wing as a new hire employee and work them through the system.

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[00:28:02] Eric Goranson: That kind of stuff. And And consumer pays for that. Cause that's just another day. That house is sitting there with

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[00:28:23] Wade Lyall: Get you comfortable with the way we operate, get them comfortable with our culture, help train and lead them through learning a skill and what we've identified, you know, for doing this for many years is. A lot of these people come in and they get really good at a skill and they want to grow. Right? I mean, we're, we're constantly wanting people to grow and develop and take on leadership roles.

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[00:28:57] Wade Lyall: And. We've got individuals that are running [00:29:00] multimillion dollar factories that started out framing a wall in a factory. Yeah. Right. So there's a great career opportunities for these individuals. Well,

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[00:29:13] Eric Goranson: Or do you want to be inside where you're in a controlled environment where you're coming in, clocking in, clocking out, doing the same work, but it is still healthier, safer, and easier environment to

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[00:29:37] Mike Tweden: I mean, fuel cost for somebody to drive from job site to job site is a labor and they come to the same place each day. It's really become a becomes a family form because they've worked around these people for years and they help each other and encourage each other and. And, and that, that shows in the quality of work

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[00:29:54] Eric Goranson: No question. No question. And I think that's just one of those things. I'm sure that's one of your biggest battles too, out there is [00:30:00] just getting quality people in the door, because that's been one of the biggest challenges is just trying to track down people for the trades, but you have that unique opportunity for somebody that's, you know, maybe getting out of college right now or thinking about going to college and they're not sure, Hey, go swing a hammer for a little bit, even though you guys aren't walking around with hammers in there anymore, you know, there's a lot of great equipment out there.

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[00:30:38] Wade Lyall: They can come around 1 of the machines for us. Right? It's still a production job. But yet you're not swinging a hammer to your point, right? So, so we're constantly trying to figure out the smarter way to build, which at the end of the day is going to drive out the cost and be a more affordable solution for the

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[00:30:54] Eric Goranson: Yeah. I got up on the catwalk at the skyline plant was up there when they were getting ready to do the roofing and stuff up there. I'm [00:31:00] like. Man, this is the easy button for getting up on the place because you had full access to it. You're just walking right along the edge of the roof, right? That's the safest environment I've ever seen for a roof.

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[00:31:29] Eric Goranson: So, yeah, I mean, we always

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[00:31:48] Wade Lyall: To handling the materials to getting them to the workstation to where the people that are actually doing the work, you're just grabbing and placing and fastening. Right? Yeah. And so be a very efficient. So

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[00:32:04] Eric Goranson: Six or eight homes or, or I got a bunch of infill lots. Let's say, what's the process for them to start going down this road? Well,

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[00:32:34] Mike Tweden: We help them with set up crews, things of that sort financing. But lots of times they have those, those trades in place. And so it's really working with the build. Where is the handoff to the set to a certificate of occupancy?

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[00:32:52] Mike Tweden: does. If you, if it's ready, Wade may have hit on it earlier.

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[00:33:18] Mike Tweden: Construction loan costs are these days and everything else. It, it, it adds up fast.

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[00:33:34] Eric Goranson: There's all those different delays that happened throughout the process. So that's a whole different project through that. Let's talk a little bit about here to the, that homeowner now that, that That's that's okay. I got that piece of land and I want to, I want to do some, or they're like, Hey, I'm going to be, this is my retirement place.

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[00:34:02] Wade Lyall: So the first process would be to go to championhomes. com, genesishomes.

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[00:34:26] Wade Lyall: And then we would get them connected to the retailer and talk through their process because every job site is different, right? And in our local distributor and build our partners, we'll go out to the job site and determine, okay, here's what we're going to have to do to get your foundation or driveway or whatever.

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[00:34:58] Wade Lyall: Right? So they would, they would [00:35:00] work with that retailer that distributor to make the home order. We would build it at the factory and then we would ship it and have it assembled and go right through that 30 to 60 day process. Mike was talking about. And

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[00:35:13] Wade Lyall: Yeah. And we do, we do work with those builders on their schedule, right? Sure. So if they think it's going to take them three months to get the job site ready because of their backlog or certain things that have to go on, then we get the house scheduled to be ready for when their site's ready. Yeah. Um, so we won't start production until they're like, go, we're going to need this house in 30 days.

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[00:35:29] Eric Goranson: Especially. Yeah. Cause if you guys are kicking that thing into the production line. Yeah. It's coming up the other end pretty quick. Yeah, absolutely. Like end of the week. Most

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[00:35:38] Eric Goranson: what I mean? It's fast. It's fast. And that's what's cool is about that. And, and, and guys, if you want to see a video and I'll put this, it's, I think it's actually up on my website that when I went through, did a nice walkthrough with skyline homes on that, you can kind of get an idea of what I'm talking about here.

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[00:36:07] Wade Lyall: out there.

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[00:36:26] Wade Lyall: Plus we have factory videos as well. That shows what's going on in the factory while the foundation is getting ready. Then we even show right up to the, to the transportation of the unit, come into the site and do a set and finish. So it's a great educational piece to give you confidence of what you're looking at.

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[00:36:40] Eric Goranson: that's something I think as a homeowner or even as builder, whoever you should be doing that, because that way you can understand the process. It really answers a lot of those questions. If you understand. Start to finish kind of what's going on in the recipe here, right? So

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[00:36:54] Wade Lyall: Look, buying a home is the largest purchase purchase an individual makes. Yeah. Right. So we want [00:37:00] to make sure we give them as clear of an education of what that process looks like. You know, answer all their questions. So when we go through this process, they're excited to get their own ready.

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[00:37:13] Eric Goranson: Yeah. It's a lifetime home. This is not something that I'm going to go rebuild this. And you know, we used to see that like people would come in and back, let's say in the eighties, right back a whole different world to go as far as this stuff, you'd see people and they're like, ah, 15 years, I'm going to upgrade and get another one.

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[00:37:41] Wade Lyall: actually put into our designs flexibility for, you know, bonus rooms, right?

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[00:38:02] Wade Lyall: You can convert that. Right. So we think about that in our designs as well. Yeah,

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[00:38:06] Mike Tweden: is great stuff. And the materials are readily available. It allows a home depot, all that type of stuff.

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[00:38:20] Eric Goranson: They think about helping working at the, their uncle's house or grandma's house, even the house they were in. And this is something that was like an old manufactured home in the 80s, 70s, 60s. Those things were not typically built. You know, the, the, the doors were thinner, the plumbing was different. And you guys have name brand stuff in here.

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[00:39:07] Wade Lyall: situations.

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[00:39:30] Wade Lyall: Right. So, so we focus on products that are durable, that are going to be a lifespan for the product. And then we're going to come out more and if there are any issues with the structure, then we can fix it. It's lumber, right? So we can fix

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[00:39:44] Mike Tweden: other home.

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[00:40:00] Eric Goranson: Yeah. And before we head out of here, I want to talk a little bit about choices inside.

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[00:40:13] Wade Lyall: So we do have a variety of products of some of them should say maybe too many, but we want to make sure we give enough choices to our homeowners.

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[00:40:40] Wade Lyall: Yeah. So, when you look at this house, we've got great cabinets. We've got black countertops, dark gray backsplashes. She has two or three other pallets. If you want to go lighter or you want to get a little more rustic, you know, she has those pallets designed. We, we don't let our factories make those decisions.

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[00:41:10] Eric Goranson: We have those choices.

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[00:41:20] Wade Lyall: we really focus on that to be part of the lifestyle, right? Everybody spends time in the bathroom and it should be a great experience and you should really love going in there because it's got good character.

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[00:41:36] Eric Goranson: I mean, we're sitting here on the kitchen island right now and you're four feet away from me. You're four feet away and we're sitting here having a good time and there's seating for four or five more people here if we wanted to make it and jam in.

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[00:41:50] Wade Lyall: Yeah. But that's where people live. Right? Yeah. So we got to make sure we give them the lifestyle we're looking for. They want to live and entertain and be able to work in the kitchen and see the TV and talk to the kids in the living room. And [00:42:00] so we have those designs.

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[00:42:06] Eric Goranson: Yeah. All right, guys. Well, thanks for coming on today. Let's get the websites one more time for everybody. So that way people know where to go. If they're out looking around and shopping, let's, let's make sure that we can send

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[00:42:18] Wade Lyall: com. Okay. It can lead you to all of our other sites. It's our parasite, but skyline homes. com, right? And then Genesis homes. com. And I'd really emphasize Genesis. If you're a builder developer out there looking for a better way to build, go to Genesis homes. com, reach out to us, give us a chance to talk about the process and see if we can help.

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[00:42:40] Wade Lyall: check these guys out. Seriously. We may use that slogan. Thanks for coming

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[00:42:50] Eric Goranson: This is, I think the best affordable housing solution we have out there. And we just need to steer our, our governments around us to make sure that, that we're doing [00:43:00] the right stuff. Because. The answers are here. We just have to make the right choices

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[00:43:09] Wade Lyall: So we thank you for it. Thanks

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