Even as the housing market struggles through its roughest stretch in more than 50 years, Taylor Morrison has seen its marketshare increase as a new homebuilder and real estate developer. By offering a wide range of products and smart, managed growth, the company has made the most out of an economic climate that has put many builders out of business, according to Charlie Enochs, Taylor Morrison’s Arizona division president.
To succeed, the company has been conscious of costs and the needs of its customers. “We’ve scaled back on overhead, as well as the general cost of doing business, to meet the decreased demand in the marketplace,” said Enochs. “We’ve also reengineered our products to provide more value to the customers.”
During the boom days of the housing market, Enochs said customers often tried to squeeze as big a house as possible on small lots. As the market has bottomed out, he said he has seen more homeowners opting to build smaller homes on large lots.
As part of its business strategy during the downturn, the company has also taken a look at its assets to determine which provide the best opportunities for long-term growth. “We’ve sold the assets we feel won’t provide long-term opportunities, and we’ve taken our assets we think do have long-term opportunities and set them up to be profitable,” Enochs said.
Commitment to quality
All the company’s market maneuvers wouldn’t mean much if it didn’t have a long history of providing a wide range of high-quality homes. Taylor Morrison is the US division of Taylor Wimpey, PLC, a UK-based homebuilding company with more than 125 years of experience. The Canadian branch of the company, known as Monarch, has been in business for nearly a century.
“Throughout North America, we build everything from large luxury homes to high-rise buildings,” said Enochs. “In the US, we are both a homebuilder and developer.”
 As opposed to many homebuilders, Taylor Morrison doesn’t focus on only one portion of the housing market. “Many companies are associated with either first-time homebuyers or luxury buyers,” he said. “We put together an annual business plan that focuses on the specific needs of our marketplaces.”
In Arizona, Enochs said he typically serves first-time homebuyers and those taking the next step up in the housing market. In Southern California, the company’s market is more geared toward the high-end luxury market and mid-rise condominium developments.
“We are also a master plan developer, so in addition to building houses, we have a development group in my division,” he said. “We recently purchased about 570 acres in Gilbert, Ariz., and we will be actively developing that property for a master plan community, which should come out by the end of next year.”
Whether the company is building a single-family home or developing a large community, Enochs said quality construction is the hallmark of Taylor Morrison properties. “The quality of our product and the willingness to stand behind it is absolutely non-negotiable for us,” he said. “We use the best trades, we have the best builders who work for us, and we build a high-quality home. We’re very proud of that.”
Providing the best quality product possible keeps the customers happy and helps bring in new business. “We focus on quality because the cheapest advertising you can get is word of mouth,” Enochs said. “We recognize that for every good experience we provide for a customer, we have the long-term benefit of referrals, as well as even selling that customer another house in the future.”
Many of the company’s customers become lifelong customers. Enochs said there are many homeowners who are on their third or fourth Taylor Morrison house.
“We have many buyers who come in, fall in love with our process and the quality we provide, and become customers for life,” he said. “That’s our goal with every customer we have.”
Good relationships
To keep business running as smoothly as possible, Enochs said it’s important to maintain a good relationship with the company’s trade partners. He said creating a successful partnership helps the company and its partners.
“We try to keep production on as even a pace as possible and not have great fluctuations in terms of starts,” he said. “We create an environment where our trade partners can count on us to maintain the level of production each month that they’ve become accustomed to. In addition, we work on a very personal level with the principals and the site superintendents from those trade partners to make sure we can solve any problems in the field as soon as they arise.”
In addition to maintaining strong relationships with its trades people, the company hires some of the most knowledgeable and experienced people in the industry to work for the company itself.
“Our staff has a tremendous amount of experience,” Enochs said. “We have builders and developers who have been in the business for more than 40 years.”
When it comes to hiring new employees, the company looks for people who bring a combination of experience and leadership potential. “We want to be a company that’s not here just for the next two or three years, but the next 50,” Enochs said. “We’re always looking for potential future leaders within our organization.”
As signs begin to suggest the market is turning around, Enochs said the company is well positioned to continue as a leader in the homebuilding and development industry. “It might take a year or two to come out of it, but all signs indicate we’ve hit bottom, and we should start to see some good price increases in the coming year. But even during this economic downturn, we’ve been able to increase our marketshare, and that is something we are very proud of.” |
