Atlanta-based Beazer Homes Inc is now the US' seventh largest housebuilder, closing out 8000 sales in 2000 and operating across 13 states, mostly in the faster growing South and West. Like its UK counterpart it has a reputation for keeping pace with innovation, particularly in the application of web-based technology and in trialling of new designs like its live/work homes.
The US and UK Beazers share a common history though there is no longer any corporate connection. The key is, of course, chairman Brian Beazer who turned a sleepy, Bath-based family building firm into an international construction conglomerate in the 1980s before it fell prey to Hanson Trust, in 1991. When Hanson floated the UK and US Beazers as separate companies seven years ago Brian Beazer threw his lot in with the US company. He remains non-executive chairman, with fellow Brit Ian McCarthy as president and CEO.
Since flotation, Beazer US has doubled its size and it continues on the acquisition trail, having picked up Trafalgar House's US housebuilding arm in 1998. Its end product is evolving too, to take on board US lifestyle issues of web-based home technology and increased home working, demonstrated in bricks and mortar in three trial live/work homes.
"We are trying to get everything on line," says Ian McCarthy. "We put structured cabling into all our homes now and we actually set up a unique website for every unit. It's standard practice in the US to sell off plan so we allow our buyers to access to our central data warehouse so they can track construction of their home. It will also allow them to purchase additional services such as removals, utility hook-ups and insurance, even the mortgage on line. The site remains with the customer after they move in, as it contains so much useful information about the house and its contents.
"We are starting to build in intelligent links with General Electric so that appliances can be serviced or repaired before faults occur. And we also build a community network on all our developments."
Recently Beazer had an on line sales event at a development in Sacramento, California where buyers bought homes via the internet having previously qualified for a mortgage. All 30 homes were sold on line before they were built. In fact, 70% of Beazer US buyers exchange contracts on nothing more than a set of house plans. On many developments only the show house is built without a buyer. "In the US" says McCarthy, "no one wants to live in the same house as their neighbour. We rarely change the floor layouts but we do a huge amount of customising and we find it's very profitable." To make this easy for the buyer, Beazer has set up design centres where customers can personalise their home by choosing upgrades and options. Customers are encouraged to maximise their tax efficient mortgage (all interest payments are tax deductible) by using Beazer Bucks. Last year, Beazer's customers spent almost $16 000 per home in the design centres, almost 8% of the total home purchase.
McCarthy believes that the US homebuilding industry could be on course for consolidation, just like the UK, and that Beazer US is well placed to grow. But he discounts the possibility of Beazer following Centex's lead and making an acquisition back in Britain. "We have looked at it and we have thought about it but we don't have any plans on that front at this time".
Source
Building Homes
