Sekisui House, Ltd. Overseas Business Briefing 2023.7.19
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Table of Contents
- The Current U.S. Homebuilding Business
- Orders in the U.S. Homebuilding Business
- Taking Advantage of Market Fluctuations
- Factors behind the Success of the Stretch Plan
- U.S. Homebuilding Business Growth Strategy
- Vision and Strategy for the Overseas Homebuilding Business
- Steps of the Homebuilding Business's Expansion
- U.S. Homebuilding Business Growth Strategy
・Business Area Expansion Strategy
・Organic Growth and External Growth
- Hubble Homes
- Company Profile
- Hubble Homes House Exteriors
- Market and Economic Outlook for Boise, Idaho
- Housing Market Outlook for Boise, Idaho
- Vision Going Forward
- U.S. Homebuilding Business Operation Structure
- Forecast for the U.S. Homebuilding Business
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1. The Current U.S. Homebuilding Business
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Orders in the U.S. Homebuilding Business
Progress Toward Plan for Orders in the U.S. Homebuilding Business
400 homes
Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May 2023 Jun. 2023 | Jul. 2023 | Aug. 2023 Sep. 2023 Oct. 2023 Nov. 2023 Dec. 2023 | ||
P l an | R e s u l | t | F o r e c a s t |
Orders in FY2023 have been about 35% higher than planned
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This graph shows our plan at the start of the year, results so far and our forecast for housing unit orders by month. The plan is in red, results are in blue and the forecasts are in light gray.
As we reported at the first-quarter earnings briefing, our builders have been seeing recovery in orders. Since January 2023, orders have exceeded our plans, and in March they exceeded the previous year's monthly figure, at over 500 homes for the month.
Orders remained strong after the first quarter, with orders through June exceeding the plan by approximately 35%. We expect orders to remain strong going forward, backed by firm demand for new houses.
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Taking Advantage of Market Fluctuations | ||||
Implementing our "Stretch Plan" to increase the number of housing starts | ||||
from the start of the fiscal year | ||||
Strategy for capturing market recovery quickly and as fully as possible | ||||
By increasing housing starts,we were | Increase in | Increase in | By increasing housing starts, we were | |
able to meet demand for finished and | orders | sales | able to complete and close on more | |
nearly finished homes, leading to | houses than originally planned | |||
increased orders | ||||
Part of the increase in orders will | ||||
Planned orders | Planned sales | remain in the year-end order backlog, | ||
contributing to sales in the following | ||||
fiscal year | ||||
Increase in | ||||
Order backlog | Order backlog | order backlog | ||
at the end of | ||||
at the start of | ||||
the year | ||||
the year | ||||
Closings on houses built under this strategy will begin in earnest from 3Q | ||||
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This slide shows some of our initiatives to take advantage of market recovery.
Since the start of the year, we have been implementing a strategy of increasing new housing starts above the level in the initial plan.
Currently, the number of new housing starts in the overall U.S. market is not growing, but in the first half of the fiscal year, we reached 55% of our planned number of housing starts for the year.
In meetings with our local subsidiaries, we heard that U.S. housing sales were beginning to show signs of recovery at the end of last year, and that many customers were seeking completed or nearly completed homes. Based on this firsthand information, we revisited our plans for the fiscal year, which had already been established. We formulated and set into action a "Stretch Plan" to increase the number of housing starts and thereby boost orders and sales.
First, by increasing the number of housing starts, we were able to effectively capture demand for completed and nearly completed homes, leading to an increase in orders.
We are still advancing housing construction in line with the Stretch Plan. As houses that began construction at the start of the year reach completion, closings will begin in earnest from the third quarter. As such, construction on the majority of the additional orders received will be completed during the current fiscal year, and we expect them to contribute to the year's net sales.
As you can see, our strategy of increasing housing starts has functioned as intended to capture market recovery quickly and as fully as possible.
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Sekisui House Ltd. published this content on 04 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2023 09:37:01 UTC.