What’s Happening In The Cabin Industry
In what has been a tumultuous 2 years in the manufactured cabin industry, we thought we would take a moment to update our audience on things to expect and be aware of when moving forward to update, replace or order a new cabin.
The first important aspect to be wary of is the increase in materials. Over the past 2 years, our team at Cabin Connect has witnessed an increase in materials and in some cases as high as 50%.
This has resulted in an increase in the quoted price for new builds and a substantial increase in the cost of a cabin compared to 5 years ago. An example of this is: A cabin was installed at a park 5 years ago and that park has recently flooded. The current owner obtained a quote for an exact replacement. Originally, this 3-bedroom cabin cost $145,000 complete and installed. Now, in 2022 with the increased pricing and expenses associated with building a new cabin, this exact design is quoted at $245,000. This is an increase of close to 68%.
So, why the increase?
As mentioned above, materials and the cost of importing specific materials have increased by close to 50%. Along with this, we have an increase in wages, which is substantial in the trade industry, when compared to 5 years ago. We have a skilled workforce shortage, which means tradies can ask for a greater rate of pay, and because demand is high for this product, manufacturers and consumers are willing to pay it.
Along with the increase in materials and wages, we have an increase in power prices, petrol/gas/diesel, factory rent, rates, and the list could go on.
The cost to insure your business to allow you to trade has also increased and this combination of expenses that are essential to have in order to build quality relocatable cabins results in an increase in the final cost and quoted price.
So, what does this mean for consumers?
In simple terms, it means all consumers (including businesses that buy cabins such as caravan parks) must pay more for these products. However, cabins have long proven to retain and hold their value extremely well. We also do not anticipate that we will see a drop in any of the expenses associated with building cabins, therefore we accept that this recent price increase over the past few years has resulted in a price correction and that these new prices are here to stay.
On a positive note, demand is high, prices for second-hand cabins are strong, and in some cases, manufacturers have lead times of up to 2024 due to demand. This is great news for our developing cabin industry within Australia. It means that more people are taking up this lifestyle, whether it be for permanent living or for holiday accommodation.
It proves that this developing industry is highly desired in Australia and that quality product that is built to an extremely high standard is being produced.
If you are in the market for a new cabin, we strongly recommend that you connect with one of our reputable manufacturers that are listed in our Industry Directory. These builders have been associated with Cabin Connect for many years and have proven to build a quality, high-end product that many other consumers have been very happy with.
Avoid imported cabins, and avoid rouge builders, cheaper is not always better and in the long run, we advise you to opt for quality and standards.
For any inquiries on a new or replacement cabin, do not hesitate to contact us.
