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Economy slams RV manufacturers in June
By Russ and Tina DeMaris
June was a tough month for the RV manufacturing industry. It started early, when Winnebago, "the most popular RV manufacturer" by some accounts, said it was shutting a key plant in Iowa. Three hundred Winnebago employees were out of work.
Rolling up behind Winnebago’s bumper came Fleetwood. Here the layoffs were larger, and spread across the nation. More than 600 of Fleetwood's finest factory folks were shunted off to the unemployment lines as Fleetwood trimmed back to 'meet market conditions.' From Pennsylvania to Oregon with stops in Illinois, the 'pink slip train,' just kept a rolling. By month's end, the figures were out: 20 percent of Fleetwood's motorhome manufacturing employees were sacrificed, and 15 percent of those working on towable units.
The fallout from other manufacturers who gave up completely came to settle in June. Two major liquidation auctions brought bargain hunters in from the cold. In June the remaining assets of Alfa Leisure (Ontario, California) and Western Recreational Vehicles (Yakima, Washington) were sent to the auction block. From partially completed rigs to 'intellectual property,' and manufacturing equipment, what was left was sold.
Financial woes weren't the only problems haunting the industry. Early in June the torrential rains in the Midwest made themselves felt in the RV manufacturing sector. The big diesel engine builder, Cummins, found part of its engine manufacturing plant in Columbus, Indiana afloat. While the worse flooding it the day care and occupation health centers, muddy water invaded the company's technical center, where 700 to 800 brainy workers come up with new ideas and give them a thorough testing.
Overall, the manufacturing end of the RV industry just had a month where ice packs and aspirin aren’t enough to cut the pain. As the economy stumbles along, analysts say RV manufacturing will have a bit more of a hard slog. An analyst at William Blair, Co. (Chicago, IL) says of the American consumer, 'If they're not buying houses on foundations, they’re not going to buy them on wheels.' The analyst, Bob Simonson, thinks it'll take a while before RV builders see much of an improvement. 'What was terrible is getting worse,' he said.
Nevertheless, not all ends of the industry are in such dire straights. With the high cost of financing and questions about where the economy is going, many RVers are hanging on to their rigs and taking better care of them. RV repair and maintenance sectors are seeing good sales. Likewise, those who rent RVs say they're having a good time too. And investors are suggesting that now isn’t such a bad time to invest in RV parks and resorts.
Need a little relief from the stress? It might not be such a bad time to pack up the rig and take a weekend or a weekend plus to head to a nearby park or boondocking area to get away from the television. Pack up the dog and the kids, bring some games and lounge chairs. RVing's still a lot less money than moteling it, and the big out of doors can serve as a major pressure relief valve.
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