Cavco Industries manufactures factory-built housing including manufactured homes, modular homes, park model RVs, and vacation cabins across 20+ production facilities primarily in the Southwest and Western U.S. The company also operates a financial services segment providing consumer financing, insurance, and floor plan lending to independent retailers. Cavco competes as a vertically-integrated player with in-house financing capabilities, serving the affordable housing segment where homes typically sell for $80,000-$150,000.
Consumer CyclicalManufactured Housing & Modular Constructionmoderate - Factory operations have meaningful fixed costs (facility leases, equipment, base labor) that create operating leverage as volumes increase, but the business maintains flexibility through variable labor and material costs representing 60-65% of COGS. Incremental volume drops significantly to operating income once fixed facility costs are covered, though the company cannot rapidly scale production beyond existing factory capacity without capital investment.
