Matt Neumann prepares for the next business cycle and the opportunity that solar presents
Q: How did you prepare for the rebound?
Q: How do you combat the perception that solar carries high upfront cost, requires a long time to recoup investment, and is affordable for some as long as there is a government subsidy?
Q: What are your biggest challenges with buying and developing land?
Q: What is Neumann Companies working on next?
A: We have the three core businesses, land development, home building and solar, so for us as a group of companies, I think what’s next is diversification because right now single family construction and single family land development are really good markets to be in but we have a fairly long term memory about what happened between ’08 and 2011. So we’re already looking toward the next market correction, which could be a year, two, or three away. It’s probably going to be tied to when interest rates start going up and slows the market down. So rather than expanding our operation within the existing businesses, with the exception of solar because there is a lot of opportunity for expansion there, but we’re looking for diversification opportunities, so what other market segments might we want to get in that are good complements to what we already have. What really ties our three businesses together is our environmental responsibility and we believe any industry that has an opportunity to go through a sort of environmentally friendly future, we think those are areas where we can participate.