Wathen-Castanos Hybrid Homes Overview

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Wathen-Castanos Hybrid Homes Overview
High Performance Production
Building as a Bottom Line Strategy
PRESENTED BY
Mike Nimon
Wathen-Castanos Hybrid Homes
Changing Housing Market Drivers
THE FACTS
• Government legislation is pushing
for higher standards and higher
levels of energy efficiency
• Consumer expectations for home
quality, performance and
affordability are on the rise
• Builders have an opportunity to use
energy efficiency as a real valueadded and a competitive advantage
Wathen-Castanos Hybrid Homes
Changing Housing Market Drivers
ENERGY EFFICIENCY RATINGS ON THE RISE
Verified 50%
Above Code
Year
New Homes Sold
2009
374,000
37,506 or 10%
2008
485,000
21,939 or 4.6%
2007
776,000
23,102 or 3.0%
2006
1,051,000
7,110 or 0.7%
Source: RESNET
Wathen-Castanos Hybrid Homes
High Performance “Bottom Line”
Approach
• Whole House,
Systems Approach
• Integrating Technology
and Business Processes
• Cost Effective and
Profitable at Production
Scale
Wathen-Castanos Hybrid Homes
High Performance “Bottom Line” Homes
Safe
Healthy
Durable
Comfortable
Efficient
Responsible
AFFORDABLE
Wathen-Castanos Hybrid Homes
High Performance “Bottom Line” Homes
WHOLE HOUSE, SYSTEMS APPROACH
Wathen-Castanos Hybrid Homes
High Performance “Bottom Line”Delivery
INTEGRATED ORGANIZATION
Wathen-Castanos Hybrid Homes
High Performance “Bottom Line” Delivery
Integrated
Process& &
Teams
Integrated Process
Teams
1.
Cultural & corporate alignment
2.
Increased collaboration - internal & external
3.
Clear intent for quality & performance
4.
Whole house integrated design & specification
5.
Better communication practices & systems
6.
Disciplined approach to quality control
7.
Continuous measurement, verification and improvement
MAKING QUALITY & PROCESS EVERYBODY’S
BUSINESS!
Wathen-Castanos Hybrid Homes
Wathen-Castanos Hybrid Homes
Overview
• 2011 National Housing Quality Award Winner
• 2011 Energy Housing Award Finalist
Wathen-Castanos Hybrid Homes
Wathen-Castanos Hybrid Homes
Overview
• Wathen-Castanos has been building houses since 1983
• 30 employees built 189 homes in 2009 and anticipates
just over 200 in 2010
• Single family, detached homes ranging from 1,100
to 2,700 square feet
• Price range $129,000 to $270,000
Wathen-Castanos Hybrid Homes
Wathen-Castanos Hybrid Homes
Overview
• In 2006, entered the ―green‖ home market, with a focus
on achieving the highest home energy performance within
reasonable costs
• Marketing our high performance homes to marketplace under
the ―Hybrid Home‖ branding
• Target 30%+ better than Title 24, as well as participating
in Builders Challenge, ENERGY STAR, and California Green Point
Rated under Build it Green program
Wathen-Castanos Hybrid Homes
Planning and
Development
• Company strategy, culture, and mission includes quality
and high performance housing
• Use strategic gap analysis to review strengths and
weaknesses and process map action items
• Compare energy performance against set industry
standards through third party verification for results
(HERS Scale, Energy Star, Build it Green, PG&E Advance
Home – minimum 30% above t-24)
• Aggressively capitalize on utility rebates trade of costs
and Federal tax credits
• Use cross functional teams when evaluating new energy
performance strategies to get input and ownership across
all departments and trades
Wathen-Castanos Hybrid Homes
Planning and Development
•Measure all result to strategic goals that are reviewed monthly,
quarterly and yearly through a managed team dashboard
•Strategic quality management process as core operational objective
•Uses W.I.G.- Work Improvement Groups
Wathen-Castanos Hybrid Homes
Design and
Purchasing
• ―Design to the numbers‖ and ―Proforma defined‖ integrative, aligned process with
architects, marketing, energy performance team, purchasing, trades, HERS rater and
sales to get best bang for the buck on energy performance
–
Marketing – Product program, best yielding plans, lot dynamics, buyer profiles,
focus groups, define minimum needs.
–
Architectural Team – Right Engineer, #’s driven, HERS rater, HVAC Trade
–
Performance Team – Defines performance measures w/rebates
–
Purchasing – Sets line item budgets by Trade to meet Proforma
–
Trades – Brainstorm products and manufacturers
• Bid to the numbers Trades review
• Balancing act between aesthetics, energy performance and cost
• Long-term relationships with trade partners and manufacturers
• 16 week Design-to- Permit cycle
Wathen-Castanos Hybrid Homes
Construction
• Limited internal labor used for critical High
Performance ―pickup‖ work (thermal bypass
punch, critical air sealing, etc.)
• House as a System training for key
trades, HERS rater works closely
with insulation and HVAC company
• HVAC trade self tests system
tightness
• 3rd party HERS energy and Build it Green
managed inspections
Wathen-Castanos Hybrid Homes
Marketing
and Home Sales
• Went from vague ―green‖ branding to Hybrid
Home, focus on energy efficiency and $$ savings
• Goal for Sales Team to have Buyer see all other
choices as" Obsolete‖
• Referral and power bills from Homeowners
are sales testimony
• 28% referral rate, 87.7% willingness to refer
and 25% ―Evangelical‖ Buyers who promote
their purchase
• ―Miles per gallon‖ approach with Builders
Challenge HERS scale
Wathen-Castanos Hybrid Homes
Marketing
and Home Sales
• Energy efficiency is standard product feature:
―We Care — You Compare‖
• Ongoing sales staff training on Hybrid Home
features
• Performance home features must be clearly
understood for Buyer
• Homeowner manual is used from contract
to closing
Customer Care
• Homeowners manual
with HP features
• High Performance
features demonstrated
at walkthrough
• Homeowner testimonies
of energy savings
• Eliant survey results
• Direct warranty dollar
cost per home are under
$200/Home
Wathen-Castanos Hybrid Homes
Evaluate the Relationship Between
Key Attribute To Function Areas
Planning &
Development
Product
Design &
Purchasing
Marketing &
Sales
1. Culture
2. Intent
3. Integrated Design
4. Measurement
5. Communication
6. Team Collaboration
7. Quality Control
8. Cont. Improvement
Wathen Castanos Hybrid Homes, Inc.
Home
Construction
Customer
Care
Business Advantages
• In 2010, 110 units closed through June and on track for
over 90 on the back half of the year. On track for another
year in the black
• Market leader in Fresno/ Clovis in high performance
homes — competition is playing catch up
• In top two for permits pulled in Central San Joaquin
• Enables positioning of foreclosures or even competitors
new housing as ―obsolete‖
• In 2009 started projecting 138 units and losing money to
closing 189 at a profit, in part due to Hybrid Home
strategy
• Tracked Buyers in second half of the year and Hybrid
performance home was compelling reason to purchase
when all things were equal in dollars against competitors.
• Capitalizing on utility incentives allows
for significant leverage
Wathen-Castanos Hybrid Homes