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"We Have a Chance to Be Something More"
The President's Message, May 2000
by Randall D. Holler, Manufactured Structures Corporation |
The beauty of a representative form of governing has played out in the adoption
of an MBI seals program by your Board.
Seals Program Has Been
Adopted, Effective Immediately
When this issue of Factory Built Structures arrives, you will undoubtedly have
read or heard that our Board of Directors voted unanimously on a resolution
adopting a labeling program as 1) initially a source of revenue and 2)
ultimately fund the adoption of a meaningful standard. (If you have not heard
of it, a copy of the resolution appears on page 8.)
A Long and Fair Process
The process leading to this resolution spanned several years. However, in the
five years I have been on the Board, discussions have been frequent and
sometimes intense.
Board president's and committee members have been frustrated, compromised
positions, and then become frustrated once again as representatives of various
sectors of our industry and Board members have changed.
This was undoubtedly part of the beauty of the process. And while this affects
most of our membership in some form, you can rest assured that for more than
five years your company was responsibly represented during discussion and
debate.
Large and small manufactures had input. Large and smaller dealers had a say.
The East Coast was represented along with the West Coast, the Midwest, the
South, and Canada.
Suggested by Long Range
Planning Committee
It has become apparent to the Board that the Long Range Planning Committee's
(LRPC) recommendation of adopting a seals program is now important if the
Association is to become more meaningful and perhaps even survive.
Please note that the LRPC consists of five past MBI presidents. These are
individuals who through prior service have shown that they have the best
interest of our entire industry at heart.
Obstacles Overcome
Legal obstacles have been overcome. These alone stymied the committee for about
a full year. There were legal issues involving nonmembers as well as
members.
Of course, liability issues (read that external law suits) raised their ugly
heads. And, there are legal processes which must be followed if the seal was to
be given the meaning a standard entailed.
Other issues involved the meaning of the seal itself. Some manufacturers and
dealers are willing to recognize the seal as simply a source of revenue, while
others want a "real" value for their money.
Some manufacturers believe they will be unable to pass along the five-dollar
label cost without loss of business.
Dealers recognizing that costs ultimately flow to them have felt they would
have to absorb a cost increase on standard lease fleet units which have lease
rates established by market forces oblivious to such an issue.
Some members believe that they have gotten where they are on their own and they
will survive and prosper regardless of the state of the industry.
Lastly, there are those who believe that the act of reporting in itself might
either be burdensome regulation or give away secrets enabling competition to
catch on to the secret of their success.
Momentum Changes
About two years ago, two suggestions and a series of events occurred which
seemed to be the turning point after years of discussion.
The first was that the labels become a dealer-driven source of revenue.
Manufacturers would actually administer the program (buy, place, and report
seals). But dealers would require them and pay for the labels.
The second was that dealer dues would be reduced when a certain level of new
revenue was reached. This should enable the association to attract more
dealers, who would attract more manufacturers, who would attract more suppliers
and other associates, etc.
Dealers continued to buy each other, but suddenly manufacturers began to
acquire one another. The MBI's major source of revenue was being jeopardized as
major dues paying members were purchased by other members already paying dues
at or near the highest level.
Then, to top it all off, even our industry as a whole began to be attacked with
President Clinton's remarks on the so-called "need" to get our children's
education out of trailers.
And we all began to listen to the objections and seek compromise.
Compromises Made
Label fees were kept minimal. (Remember the Michigan Mobile Home Program? That
is Michigan, alone, collects $ 50 per floor and operates a public relations
campaign with a budget four times that of the MBI nationwide.)
A per floor fee system was accepted as proportionately fair by manufacturers.
Dealers agreed to drive the process with an objective of obtaining short-term
public relations value and long-term value when dues are reduced and standards
are obtained.
Reporting was simplified, almost to the point of "send me a seal, here is my
check."
Those wanting real meaning for the label began to understand that time (two and
one-half years) and money that the MBI does not have without the seals program
are needed to establish such a standard.
The Intent
The MBI now intends to begin the process stated at the beginning of this
message, with three MBI presidents following me overseeing the seals program.
But we only have a chance for the program to work if every member participates
fully and fairly. That is why the Board voted unanimously to exclude those who
do not participate from membership in the future.
There are threats to our industry which the Board has been monitoring closely.
As we have grown in size, we have garnered attention. Some may think they will
wait until the problem hits home. But then it will have been too late.
Members of your Board, such as Jerry Brosius, Pat Van Den Bossche, and others
have worked long and hard to keep the legislative wolves off your door. They
need our help.
In California, a separate organization was created to generate the money needed
to deal with serious classroom legislative, regulatory and budgetary
considerations. Why? We were not in a position to help at the time. Let's get
in position to help.
We need those believing in our industry and its future to step up now!
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