Wikipedia

Clayton Homes

(Redirected from Crest Homes)

For the public housing complex in Houston, see Clayton Homes (Houston).

Clayton Homes (or Clayton) is the largest builder of manufactured housing and modular homes in the United States.[1][2] It is a wholly owned subsidiary of Warren Buffett's Berkshire Hathaway.[3]

Clayton Homes
Company typeSubsidiary
IndustryConstruction
Manufacturing
Financial services
Founded1956; 68 years ago (1956)
FounderJim Clayton
Headquarters5000 Clayton Road,
Maryville, Tennessee
,
United States
Area served
United States
Key people
Kevin T. Clayton
(President & CEO)
ProductsManufactured homes
ParentBerkshire Hathaway
Websitewww.claytonhomes.com

Clayton Homes' corporate headquarters are in Maryville, Tennessee.[4] Its subsidiaries include Clayton Home Building Group,[5] Clayton Properties Group,[6] Vanderbilt Mortgage, 21st Mortgage,[7] and insurance company HomeFirst Agency.[8]

History

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Clayton Homes was founded in 1956 by Jim Clayton.[9][10] The business began by refurbishing and reselling used mobile homes.[11][12] In 1966, Jim Clayton opened a Clayton Homes store location in Knoxville, Tennessee, on Clinton Highway.[13] Clayton Homes established its own mortgage company in 1974 and added a manufacturing division in 1975.[14] The company went public in 1983, trading on the New York Stock Exchange.[15][14] Each year from 1989 through 1992, Clayton Homes was named on the Forbes list of the best small companies in America.[16] Kevin Clayton, Jim Clayton's son, took over the company in 1999.[12] Kevin Clayton had joined Clayton Homes in the 1980s and held several leadership roles in the company and its subsidiaries before becoming CEO.[17]

In 2002, Clayton Homes earned a revenue of $1.2 billion.[18] It was acquired by Berkshire Hathaway in 2003 for $1.7 billion.[12][19][18] Cerberus Capital Management also expressed interest in bidding for the company.[20][21] The certificate of merger was filed in Delaware, and Clayton Homes stock was removed from the New York Stock Exchange.[22][23] In 2007, Clayton Homes' revenue was $3.66 billion.[24] Clayton Homes sold its land-lease communities business to Denver-based Yes Companies LLC in 2008. The deal involved 65 properties in 11 states.[25][26] The i-house brand was introduced in May 2008 as a green, energy efficient home.[1][27] By 2009, Clayton Homes had sold over 1.5 million homes.[1][2] In 2009, Clayton Homes launched the eHome as a more affordable version of the i-house.[28]

Clayton Homes was involved in a lawsuit in 2011 with FEMA after providing portable classrooms as part of Hurricane Katrina relief which were found to contain formaldehyde. Afterwards, one of 12 prefabricated shelters provided to Haiti through the Clinton Foundation after the 2010 earthquake was found to have a formaldehyde level of 250 ppb, "a very high level" according to a scientist specializing in indoor pollutants at Lawrence Berkeley National Laboratory.[29]

A news story in 2015 claimed that Clayton Homes unfairly targets and exploits minority home buyers.[30] Clayton Homes was further criticized for its alleged use of corrupt business practices. The company has denied discriminating against its customers or its workers.[7][31][32] Warren Buffett, the CEO of Berkshire Hathaway, defended Clayton against predatory lending claims in an interview saying: "We have 300,000 loans on the books and in the last 3 years I've not received one letter of complaint from anybody."[33][34]

In 2015, Clayton Homes worked with Oak Ridge National Laboratory and the architectural firm Skidmore, Owings & Merrill to produce a 3D printed house and car which share a single energy unit.[35][36] Clayton Homes expanded into the traditional home building market with the acquisition of Georgia-based homebuilder Chafin Communities in 2015,[37] and Tennessee-based Goodall Homes in 2016.[38][39] Clayton Homes acquired River Birch Homes, based in Hackleburg, Alabama, in April 2016. The following month, Clayton Homes hosted its first Birmingham-based home show. The show had 492 attendees and featured 27 homes from 27 facilities.[40] That same month, Clayton Homes announced that it would partner with nonprofit Next Step to build a modular duplex in Waco, Texas on a lot owned by NeighborWorks Waco in order to create affordable housing in the Greater Waco area.[41]

In 2016, Clayton Homes was recognized as number 292 on Forbes' list of America's Best Employers.[42] The company introduced a line of tiny homes during fall 2016 with the debut of its "Low Country" prototype in North Carolina.[43] The designer series received media acclaim from USA Today, The Post and Courier, among others.[44][45]

On July 10, 2017, Clayton Properties Group announced the purchase of home building operator Harris Doyle Homes, which is based in Birmingham, Alabama.[46] Known for its manufactured housing, Clayton Homes is expanding into the site-built, $250,000-and-under housing market, as reported in July 2017. Since October 2015, Clayton Homes has acquired homebuilders in Atlanta, Nashville, Kansas City, Denver, and Birmingham.[47] In 2019, Clayton Homes also worked with Colorado-based advertising agency Made to create the "Prefabulous" series to promote its manufactured housing and attempt to fight the view that off-site built homes are "low-end and one-size-fits-all".[48][49] As of 2021, Clayton Properties Group, a subsidiary of Clayton Homes, is ranked number eight in size on Builder Magazine’s Top 100 list of home builders in the US with a gross revenue of  $2.98 billion.[50]

Operations

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Clayton Homes produces homes under the brand names of Buccaneer Homes,[51] Cavalier Homes, Clayton Homes, Crest Homes,[52] Giles Industries,[53] Golden West Homes,[54] Karsten Company,[55] Marlette Homes,[56] Norris Homes, Schult Homes, and Southern Energy Homes. Clayton Homes also owns retail brands Oakwood Homes,[57] TruValue Homes[58] and Luv Homes.[59][60] In 2016, Clayton acquired G&I Homes,[61] a family-run company based in New York.[62]

As of 2019, Clayton Homes has 40 home building facilities and more than 350 retail outlets located across the United States. At these facilities, retail locations and distribution centers, the company employs 16,000 people.[63] Clayton Homes produces about 50,000 homes per year at its facilities, which is about half of the industry's total. The off-site built home is then transported to its final location in sections to be assembled on a foundation.[64] Clayton Homes has taken a number of sustainability measures at it facilities including preventing 200 short tons (180 tonnes) of waste from going to a landfill from its facility in Bean Station, Tennessee, in 2020 by recycling metal, cardboard, wire, and plastic. The Bean Station facility also saved 40,000 U.S. gallons (150,000 L) of water annually – a 50% reduction – through implementation of water conservation upgrades.[65]

Philanthropy

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In 2015, Clayton Homes released the Patriot home model and partnered with the Hope for the Warriors veterans assistance group. Clayton Home Building Group gave a check for $33,600 to the organization in January.[66][67] Hope For The Warriors works with veterans from all branches of the military as well as post 9/11 active duty, National Guard, and reserve service members.[68][69] In May 2016, Clayton presented a $100,000 check to the organization.[70]

In 2019, Clayton Home Building Group became a founding sponsor of the Warrior's Compass Suite program by Hope for the Warriors to help veterans transition from US military service to civilian employment. Clayton Home Building Group committed to donating $300,000 to support the program.[71]

Clayton Homes also partners with Family Promise to donate several homes per year to families who have experienced homelessness.[72] In 2021, Clayton Homes donated $450,000 and 3 off-site built homes to be used to prevent family homelessness.[73]

References

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  1. ^ a b c Schwartz, Ariel (May 4, 2009). "Clayton Homes' i-house Combines Energy Efficiency and Modular Affordability". Fast Company. Retrieved June 3, 2016.
  2. ^ a b Koch, Wendy (December 9, 2009). "Clayton Homes joins prefab green building boom with $45,000 eHome". USA Today. Retrieved June 7, 2016.
  3. ^ Sorkin, Andrew Ross (July 31, 2003). "Buffett Wins Battle to Buy Clayton Homes". The New York Times. Retrieved June 3, 2016.
  4. ^ "#292 Clayton Homes". Forbes. Retrieved June 3, 2016.
  5. ^ Fisher, Kelly (April 24, 2019). "East Tennessee home-building company to invest $14 million in Sumner location, establish more than 100 jobs". The Tennessean. Retrieved August 14, 2021.
  6. ^ Harshberger, Caleb (June 4, 2020). "Warren Buffett's homebuilding unit buys hundreds of acres in Durham". Business Journals. Retrieved August 14, 2021.
  7. ^ a b Muhammad, Dedrick (January 22, 2016). "Call for Federal Investigation Into Report of Racially Discriminatory Predatory Lending". Huffington Post. Retrieved June 3, 2016.
  8. ^ Prevost, Lisa (October 16, 2014). "Financing Manufactured Homes". The New York Times. ISSN 0362-4331. Retrieved July 11, 2017.
  9. ^ Williams, Chambers (April 11, 2016). "Clayton Homes buys Alabama manufactured-housing company". Knoxville News Sentinel. Archived from the original on April 14, 2016. Retrieved June 7, 2016.
  10. ^ "Warren Buffett praises East Tennessee entrepreneurs behind two of his businesses". Chattanooga Times Free Press. March 1, 2021. Archived from the original on March 2, 2021. Retrieved August 14, 2021.
  11. ^ Wood, Tom (April 9, 2021). "Knoxville partners race in to bolster Music City Grand Prix". The Nashville Ledger. Archived from the original on April 8, 2021. Retrieved August 14, 2021.
  12. ^ a b c Reingold, Jennifer (January 1, 2004). "The Ballad of Clayton Homes". Fast Company. Archived from the original on September 18, 2012. Retrieved June 7, 2016.
  13. ^ Gaines, Jim (February 27, 2017). "Buffett: Clayton Homes to keep growing". Knoxville News Sentinel. Archived from the original on November 30, 2020. Retrieved August 14, 2021.
  14. ^ a b Mansfield, Duncan (February 15, 1991). "Trailer park 'king' makes big business after humble beginnings in Tennessee". Kentucky New Era.
  15. ^ "Small Company Initial Public Offerings: June 1983". Inc. Retrieved June 7, 2016.
  16. ^ Cunningham, Lawrence A. (December 24, 2014). "Ocwen Would Do Well to Follow the Lessons of Berkshire's Clayton Homes". The New York Times. Retrieved June 7, 2016.
  17. ^ McManus, John (May 13, 2019). "Clayton Homes Earns 2019 Builder of the Year Award". Builder Magazine. Archived from the original on July 16, 2019. Retrieved August 14, 2021.
  18. ^ a b "Berkshire Hathaway Agrees To Acquire Clayton Homes". Wall Street Journal. April 2, 2003. Retrieved June 7, 2016.
  19. ^ Sorkin, Andrew Ross (July 31, 2003). "Buffett Wins Battle to Buy Clayton Homes". The New York Times. Retrieved June 7, 2016.
  20. ^ "Belated suitor woos Clayton Homes". USA Today. July 11, 2003. Retrieved September 4, 2016.
  21. ^ Sorkin, Andrew Ross (July 31, 2003). "Buffett Wins Battle to Buy Clayton Homes". The New York Times. Retrieved September 4, 2016.
  22. ^ Nolen, Amy (August 27, 2003). "Clayton Homes Shareholder Alleges Executive Fraud in Berkshire Hathaway Sale". The Knoxville News Sentinel. Archived from the original on October 8, 2016. Retrieved September 4, 2016.
  23. ^ Nolen, Amy (August 8, 2003). "Clayton Homes Declares Merger with Berkshire Hathaway, Stops Trading Stock". Knight Ridder Tribune. Archived from the original on October 8, 2016. Retrieved September 4, 2016.
  24. ^ Nolan, Amy (March 17, 2008). "Buffett gives Clayton Homes a high five". Orlando News Setinel. Retrieved September 4, 2016.
  25. ^ Silence, Michael (February 26, 2008). "Clayton completes sale of housing communities". Knoxville News Sentinel. Retrieved June 7, 2016.
  26. ^ Caulfield, John (March 7, 2008). "Clayton Homes to Focus on Subdivision Development". Builder Online. Retrieved June 7, 2016.
  27. ^ Reynolds, Glenn (January 15, 2009). "Clayton's I-House: Prefab Green Homes Get Affordable". Popular Mechanics. Archived from the original on May 27, 2010. Retrieved January 5, 2013.
  28. ^ Koch, Wendy (December 9, 2009). "Clayton Homes joins prefab green building boom with $45,000 eHome". USA Today. Retrieved September 4, 2016.
  29. ^ Macdonald, Isabel; Doucet, Isabeau (July 11, 2011). "The Shelters That Clinton Built". ISSN 0027-8378. Retrieved August 14, 2021.
  30. ^ Wagner, Daniel; Baker, Mike (April 3, 2015). "Warren Buffett's mobile home empire preys on the poor". Center for Public Integrity. Archived from the original on December 15, 2019. Retrieved August 14, 2021.
  31. ^ Stempel, Jonathan (February 27, 2016). "Buffett defends Clayton Homes after critics fault its lending". Reuters. Retrieved June 7, 2016.
  32. ^ "Buffett Defends 3G and Clayton Homes as Berkshire Profit Grows". Fortune. February 27, 2016. Retrieved June 7, 2016.
  33. ^ David, Javier E. (May 2, 2015). "Warren Buffett defends Clayton Homes against claims of predatory lending". CNBC. Retrieved June 7, 2016.
  34. ^ Das, Anupreeta (May 2, 2015). "Warren Buffett Defends Clayton Homes". Wall Street Journal. ISSN 0099-9660. Retrieved August 14, 2021.
  35. ^ Krassenstein, Brian (August 2015). "ORNL & Clayton Homes are 3D printing a home & car that share energy with one another". 3D Print. Retrieved June 7, 2016.
  36. ^ "ORNL unveils integrated 3D printed house and car that produce and share clean energy". 3Ders. September 23, 2015. Retrieved June 7, 2016.
  37. ^ Hudson, Phil W. (November 2, 2015). "Buffett-owned company buys Georgia homebuilder for $50 million". Atlanta Business Chronicle. Retrieved June 7, 2016.
  38. ^ McManus, John (May 2, 2016). "Home Building Investment, Buffett-Style". Builder Online. Retrieved June 7, 2016.
  39. ^ Ward, Getahn (April 29, 2016). "Warren Buffett's company buys Gallatin's Goodall Homes". The Tennessean. Retrieved June 7, 2016.
  40. ^ Marcum, Ed (June 1, 2016). "Clayton Homes marks 60 years, new directions". Knoxville News Sentinel. Retrieved September 4, 2016.
  41. ^ Copeland, Mike (April 18, 2016). "Clayton Homes, NeighborWorks Waco join forces for affordable housing". Waco Tribune. Retrieved September 4, 2016.
  42. ^ Dill, Kathryn. "#292 Clayton Homes". Forbes. Retrieved September 4, 2016.
  43. ^ "Clayton home building group unveils tiny home designer series". Retrieved September 22, 2016.
  44. ^ "Home building group unveils tiny home designer series". USA Today. Retrieved September 22, 2016.
  45. ^ "Clayton Homes takes a turn from manufactured housing to introduce its own line of 'tiny homes,' including a model with Charleston ties". September 12, 2016. Retrieved September 22, 2016.
  46. ^ "Alabama Shakes: Clayton Buys Birmingham's Harris Doyle Homes". Builder. July 10, 2017. Retrieved July 11, 2017.
  47. ^ Jordon, Steve (August 2, 2017). "Berkshire's Clayton Homes division expanding into $250,000-and-under housing market". Omaha World-Herald. Retrieved September 30, 2021.
  48. ^ Stanley, T. L. (February 13, 2019). "Can a Prefab Home Actually Be Stylish? This Upbeat Ad Hopes to Make the Case". Ad Week. Archived from the original on February 14, 2019. Retrieved September 30, 2021.
  49. ^ "Clayton Homes: Prefabulous by Made". The Drum. February 2019. Archived from the original on February 21, 2019. Retrieved September 30, 2021.
  50. ^ "The Top 100". Builder Magazine. 2021. Archived from the original on April 30, 2021. Retrieved September 30, 2021.
  51. ^ "Buccaneer Homes". www.buccaneerhomebuilders.net. Retrieved July 11, 2017.
  52. ^ Homes, Crest. "Crest Homes | Manufactured Homes, Modular Homes, Mobile Home". www.cresthomes.com. Retrieved July 11, 2017.
  53. ^ "Giles Industries". gilesindustries.com. Retrieved July 11, 2017.
  54. ^ Homes, Golden West. "Golden West Homes | Manufactured Homes, Modular Homes, Mobile Home". www.goldenwesthomes.com. Retrieved July 11, 2017.
  55. ^ Homes, Karsten. "Karsten Homes | Manufactured Homes, Modular Homes, Mobile Home". www.karstenhomes.com. Retrieved July 11, 2017.
  56. ^ Homes, Marlette. "Marlette Homes | Manufactured Homes, Modular Homes, Mobile Home". www.marlettehomes.com. Retrieved July 11, 2017.
  57. ^ "New Oakwood Homes - Builder in Colorado and Utah". oakwoodhomesco.com. Retrieved July 11, 2017.
  58. ^ "Tru Value Homes of Alexandria, AL | Mobile, Modular & Manufactured Homes". truvaluealexandria.com. Retrieved July 11, 2017.
  59. ^ Mike Baker and Daniel Wagner, Minorities exploited by Warren Buffett’s mobile-home empire The Seattle Times / BuzzFeed News, December 26, 2015.
  60. ^ "Our Modular and Manufactured Home Brands". Clayton Homes. Retrieved June 3, 2016.
  61. ^ "G&I Homes, Your Confidence Builder". G&I Homes. Retrieved July 11, 2017.
  62. ^ Marcum, Ed (February 9, 2016). "Clayton acquired New York home retailer". Knoxville News Sentinel. Retrieved September 4, 2016.
  63. ^ McManus, John (May 13, 2019). "Clayton Homes Earns 2019 Builder of the Year Award". Builder Magazine. Archived from the original on July 16, 2019. Retrieved September 30, 2021.
  64. ^ Scott, Amy (February 22, 2019). "More houses are rolling off the assembly line". Marketplace. Archived from the original on June 20, 2019. Retrieved September 30, 2021.
  65. ^ "TDEC Welcomes Clayton Homes of Bean Station Into Green Star Partnership". Tennessee Department of Environment & Conservation. December 15, 2020. Archived from the original on December 15, 2020. Retrieved September 30, 2021.
  66. ^ Jordon, Steve (May 1, 2016). "Clayton Homes home had a 'sold' sign even before the meeting". Omaha World-Herald. Archived from the original on October 30, 2018. Retrieved September 4, 2016.
  67. ^ "DeVore Homes participates in large contribution to nonprofit military support group". Osceola-Sentinel Tribune. February 16, 2016. Archived from the original on September 15, 2016. Retrieved August 14, 2021.
  68. ^ "DeVore Homes participates in large contribution to nonprofit military support group". Osceola Sentinel Tribune. February 16, 2016. Retrieved September 4, 2016.
  69. ^ "Homes Plus participates in contribution to military support group". The News Star. February 1, 2016. Retrieved September 4, 2016.
  70. ^ Silver, Matthew (May 12, 2016). "Clayton Homes Inaugurates Birmingham Home Show". Daily Business News. Retrieved September 4, 2016.
  71. ^ "Clayton Home Building supports Warriors". The Nashville Ledger. January 11, 2019. Archived from the original on August 14, 2021. Retrieved August 14, 2021.
  72. ^ Tucker, Melanie (December 14, 2020). "Clayton donates new house to Blount Family Promise". The Daily Times. Archived from the original on December 19, 2020. Retrieved August 14, 2021.
  73. ^ Moore, Hannah (May 14, 2021). "Family Promise receives $450,000 and 3 homes to be used to prevent homelessness". WATE ABC6. Archived from the original on May 14, 2021. Retrieved August 14, 2021.
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