Arizona company buys Waco Fleetwood Homes site

ArizonaAn Arizona firm has purchased the troubled Fleetwood Houses complicated on Gholson Street and will spend $2 million increasing it with an eye fixed towards hiring 75 individuals.

Its plans hinge on a resurgence within the manufactured-housing market, Joe Stegmayer, CEO of Phoenix-based Cavco Industries, stated when reached by telephone Thursday.

"It's not going to occur subsequent month, nevertheless it's one thing we'll attempt to obtain," Stegmayer stated.

Riverside, Calif.-based Fleetwood Houses, a participant within the manufactured-housing enterprise for many years, filed for Chapter 11 chapter safety in March. It has since bought its title, model and several other manufacturing vegetation to Cavco. The Fleetwood plant in Waco is the one one Cavco purchased in Texas.

Native Fleetwood supervisor Ray Parma stated the plant employs about 125 individuals. It has seen a gradual decline within the measurement of its workforce as manufactured housing confronted making an attempt financial occasions.

Cavco purchased the constructing on Gholson Street, the place development continues, and in addition acquired a close-by constructing the place Fleetwood crews as soon as labored earlier than the slowdown.

It's there, Stegmayer stated, that Cavco would spend money on growth.

"We have now a constructing and loads of land for extra services," Stegmayer stated. "We've been in enterprise 45 years and contemplate ourselves long-term thinkers."

Stegmayer stated he hopes to get monetary incentives which may assist develop native Fleetwood operations. He's been working with the Higher Waco Chamber of Commerce to seek out out what's obtainable.

Kris Collins, the chamber's director of enterprise retention and growth, stated Waco could nominate the Fleetwood enterprise as an enterprise zone mission. If the state had been to approve that designation, it might refund the state's portion of the gross sales tax Cavco pays on items to improve the Fleetwood complicated.

"Nothing will transfer ahead on that till Cavco submits an utility," Collins stated.

It's potential Cavco might apply for cash from the Waco-McLennan County Financial Growth fund. To qualify, it must pay staff a minimal of $12 an hour and supply well being insurance.

As for the way forward for manufactured housing, D.J. Pendleton, govt director of the Texas Manufactured Housing Affiliation, stated he sees glimmers of hope that circumstances will enhance. For instance, he stated the federal government's tax incentive of as much as $8,000 for first-time homebuyers does apply to these shopping for new manufactured houses.

"We're additionally beginning to see a bit of flexibility with the banks and capital markets, that means extra money may very well be that can be purchased houses," Pendleton stated. "By means of the grapevine, I'm listening to hopeful optimism."

Pendleton stated Texas stays the main producer of manufactured housing within the nation, with 14.6 % of the market. Nonetheless, manufacturing has dropped greater than 30 % up to now yr or two.

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