- RV Business

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RVBUSINESS.com
VOLUME 59, NUMBER 4, JULY 2008
©
Peter J. Liegl,
Founder and CEO,
Forest River Inc.
Winnebago Streamlines Class A
Gas Lines, Debuts 34-foot Diesel
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Rigs Ride Wave of Popularity
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‘East Meets West’ as RVIA
Leads China Trade Mission
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26
VOLUME 59, NUMBER 4, JULY 2008
DEPARTMENTS
4 State of the Art
16 In Brief
42 Ad Index
45 Public Domain
47 Retail Trends
34
48 Classifieds
TOP OF THE NEWS
7 RVIA Addresses Tough Industry Issues During Committee Week
7 Lightweight Towables Gain Emphasis in Economic Climate
7 FEMA Keeps Travel Trailer Option on Table for Emergencies
8 RVBusiness Top 50 Dealer Awards Program Unveiled, Explained
10 RVB Poll: ’08 Remains Bleak, Industry Expects Recovery in ’09
10 Thor Industries Reports Drop in 3Q Net Income, Lower RV Sales
12 Gary LaBella Outlines Aggressive New RVIA Marketing Strategy
12 House Committee Asks Four OEMS for Formaldehyde Testimony
14 Winnebago Idles Charles City Plant, Moves Production to HQ
14 RV Rental Companies Anticipate 18% Activity Increase in 2008
16 Statistical Surveys Logs 31% April Decline in Motorized Sales
14 Pilgrim International Announces Key Management Changes
THIS PAGE: Brian Donat, general manager
of KZ RV’s toy-hauler division, with a pair of the
company’s Inferno fifth-wheel SURVs. The sector’s
popularity continues, even as some OEMs wonder if
the market has reached a saturation point (page 34).
RVIA members attend the China RV and Camping
Show during trade mssion to China (page 26).
COVER: Forest River Inc. founder and CEO
Peter Liegl made headlines in 2005 when he sold the
company he’d built into the No. 2 RV manufacturer
in the U.S. to Warren Buffet’s Berkshire Hathaway
Inc. The amiable, hard-driving Liegl remained at the
helm of the largely decentralized operation — and
he continues to make
headlines. By Liegl’s
account, company sales
have risen by about
$400 million during
the past three years —
and are now closing in
on $2 billion annually.
NEWS IN FOCUS
21 Winnebago Introduces Shorter Diesel Pusher at ‘Dealer Days’
24 Coachmen Unveils New Interiors, Tag-Axle Class A to Dealers
FEATURES
26 East Meets West: RVIA Leads Exploratory Trade Mission to China
34 SURV Popularity Continues, but Market Saturation Questioned
COVER STORY
30 Bucking the Market, Forest River Closes in on $2 Billion in Sales
SUPPLIER SHOWCASE
39 Banks Power Celebrates Half-Century of Creating Horsepower
Photo by
Shawn Spence.
RV Business (USPS 920-340) is copyrighted 2008 by TL Enterprises
Inc. in the United States, Canada, Great Britain and other countries.
Publication Sales Agreement No. 1938495 Canadian return address:
Affinity Group Inc., 2575 Vista Del Mar, Ventura, CA 93001. All
rights reserved. Permission to reprint or quote excerpts granted only
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editorial material to the Ventura, Calif., office. RV Business is published
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Advertising rates are provided on request. RV Business is published by
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which also publishes Trailer Life, MotorHome, Rider, Trailer Life’s
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B Y
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S H E R M A N
G O L D E N B E R G
STAFF
Sherman Goldenberg
Bruce Hampson
WEB EDITOR Dave Barbulesco
ART DIRECTOR Steven Averill
SENIOR EDITOR Bob Ashley
MIDWEST EDITOR Steve Bibler
EDITOR AT LARGE Jeff Crider
PHOTOGRAPHY DIRECTOR Shawn Spence
CONTRIBUTING TECHNICAL EDITOR Chris Hemer
PRODUCTION DIRECTOR Bob Dawson
VP/RV TRADE PUBLICATIONS
S T A T E
O F
T H E
A R T
EDITOR
Good Signs Down the Road,
Despite a Daunting National
Economic Landscape
riginally, I had planned to write this column about a new program that’s vitally important to our staff and, soon, the industry at large — the RVBusiness Top 50 Dealer Awards.
However, I couldn’t do it this time around — mainly because I, like
RVIA’s Gary LaBella (see page 12), need to address the nation’s
economic tumult, prompted by high gas prices and an ongoing
housing crisis, and how it’s affecting all of us.
So, we’ll deal with RVB’s new Top 50 promotion on page 8 of
this issue.
You’ve all heard the economic saga by now — about slumping
sales, production cuts and resultant layoffs. So, I won’t beat it to
death, other than to say that this is beginning to look like one of
those moments in history when change is rampant.
At the end of the day, though, I — like everyone else — am
faced with a choice of either succumbing to pessimism and bad
news reports, or looking ahead to a return to normalcy. And I think a lot of people,
like Forest River’s Pete Liegl, who appears on the cover of this issue, are in fact looking beyond 2008. But what we all are likely to find, I’m guessing, is a “new” sort of
normalcy in which motorhomes may be somewhat smaller and recreational vehicles
in general more fuel-efficient and aerodynamic. Frankly, some of us behind the scenes
have been anticipating this sort of evolution for years. But the WWII generation
wouldn’t have any part of it. Nor would the bulk of the Baby Boomers, born and
raised on big-fin Plymouths and growling Olds 442’s.
The result was that motorhome builders who toyed with more compact designs
through the years generally got their fingers burned. This, more than likely, will change.
At the same time, I’m reminded by those in the accommodations sector that
America’s RV park and campground operators aren’t sitting on their hands right now
buying into any negative attitudes, either. They’re too busy, a fact of which I was
reminded last week when visiting with representatives of the National Association
of RV Parks and Campgrounds (ARVC) during RVIA Committee Week in
Washington, D.C.
The bottom line in my view, once all the rough-and-tumble change recedes, is that
North Americans aren’t about to cast aside their camping traditions — something
they’ve cultivated for the better part of a century — and simply sit down with a beer
in front of the TV. It’s just not going to happen that way.
“From what I’ve heard, everything is looking very good (for campgrounds) so far
this year,” ARVC Chairman Mark Anderson told us. “Reservations seem to be up
across the country, not just on the East Coast or in the West. There is a bright side
to everything else that is going on out there, and we are happy to be the group that
is providing that.”
“Reservations seem to be holding,” added ARVC President Linda Profaizer. “We
are going to monitor this over the summer to see what happens with ever-rising gas
prices. So far, though, people are going camping … We are seeing more tenters in the
market this year. People that have seasonal sites and cabins and park models to rent
are doing really very well on that aspect of it, too. Bottom line, people are going out
camping. They are going to go closer to home, but they are definitely going.”
Enough said?
O
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Brenda Hutchinson
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PREPRESS SPECIALIST Gerald Vandiver
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News
OF THE
8:22 PM
Page 7
RVIA Addresses Tough Industry
Issues During Committee Week
Association Assumes More Aggressive, Proactive Stance to Bolster Consumer
Confidence; Go Rving, PR Campaigns Shift Emphasis to Stress Affordability
FEMA Switches Gears,
Keeps Travel-Trailer
Option In Draft of Plans
For Hurricane Season
The government may house disaster victims in trailers again this hurricane season as a last resort,
despite promises never to use them
again because of controversy over
formaldehyde levels found in trailers
used after the Katrina catastrophe.
Only the head of the Federal
Emergency Management Agency
(FEMA) can approve the use of such
trailers, and they must meet the
agency’s requirement for minimal
levels of formaldehyde, according
to a draft of the agency’s fivepage 2008 hurricane-season plan,
obtained by the Associated Press.
Also, disaster victims could stay in
the trailers for only six months.
FEMA Director R. David Paulison
has said there will be no more trailers
while he is in office. But his deputy
says that’s not cast in stone, should
there be another natural disaster.
“We’re putting our head in the
sand,” deputy administrator Harvey
Johnson said in an interview. “If we
had a Katrina again, there’s probably
no way we could respond to a
Katrina without having to deploy all
available options, which will include
travel trailers.” 6
Florida ARVC Meeting
Turnout Hears Positive
Camping Outlook for ’08
After welcoming the largest
attendance for an annual convention in several years, Florida/
Alabama ARVC President Bobby
Cornwell pronounced the state
association “strong and kicking.”
More than 100 people representing 54 Florida parks attended
the association’s annual convention and expo June 1-4 at the Hilton
on Clearwater Beach in Clearwater,
Fla.
“In spite of everything, the mood
was positive,” Cornwell said.
“Occupancy seems to be up,
reservations seem to be higher.
From what everybody told me,
they’re even seeing an increase in
continued on page 19
RVDA members focused on a number of
pressing issues during Committee Week,
June 9-12 in Washington, D.C.
Focused on combating the effects of a volatile economy, Recreation Vehicle Industry Association (RVIA)
committee members met June 9-12 during Committee
Week in Washington, D.C.’s Willard InterContinental
Hotel armed with an aggressive new marketing strategy
and a resolve that market conditions will turn the corner
next year.
“There’s not a whole lot we can do about the economy,” RVIA President Richard Coon told RVBusiness at
the event, which drew around 250 members. “There are
a lot of things working against us right now — gas
prices, consumer confidence and the economy. We’re
also dealing with some potentially crippling issues with
formaldehyde and CAFE standards.
“But it’s not doomsday out there. This industry has
seen much worse, especially in the ’70s with the oil
embargo. If we keep our focus and work together, we’ll
continued on page 41
Lightweight Towables Gain Added Emphasis
As RV Industry Adapts to Economic Climate
Forecaster Curtin Sees a 14.1% Drop in Total 2008 Shipments, With ‘Marginally
Lower’ Decline in ’09; Materials Price Hikes May Impact Slow Fiscal Recovery
A protracted downturn with wholesale shipments at an
annualized rate of just slightly above 300,000 units through
the end of 2009 — along with continuing inflationary pressure and sporadic pockets of prosperity — is part of the
challenging crosscurrents sweeping the RV industry during
the next 18 months as the RV sector battles through what
looks to be a longer, but shallower decline than in previous
serious down cycles.
That’s according to Richard Curtin, director of
Consumer Surveys at the University of Michigan, whose
quarterly Roadsigns forecasts are published by the
Recreation Vehicle Industry Association (RVIA). In an
updated outlook that was presented during June’s RVIA
Committee Week, Curtin is projecting RV shipments of
303,700 units for 2008, a 14.1% decline from 353,499 in
2007. That’s a slightly harsher view of the year than the
13.8% decline Curtin last predicted. And he’s anticipating
a marginally lower 303,100 wholesale shipments in 2009.
“I expect the low point (of the current decline) to be
reached in the first quarter of 2009,” Curtin told
RVBusiness. “But the recovery will be so slow we will not
fully recover to the level of 2008 (in ’09). That means
another difficult year.”
A Matter of Perspective
Although down considerably from a peak of 390,000
wholesale shipments in 2006, both 2008 and 2009 —
viewed from a historical perspective — are still credible
performances, considering that they’re 30% higher than
average shipments recorded in the 1990s, Curtin said.
“Part of the difficulty is comparing current numbers to
the very, very strong numbers we’ve had during the past
five to six years,” observed Mac Bryan, vice president of
administration for RVIA.
Perhaps most disturbing is Curtin’s projections for a
slow rebound. Curtin sees tight credit markets, higher food
and fuel prices, slow job growth and smaller wage gains all
combining to create a drag on the recovery. “We have the
credit markets undergoing a change that will make credit
somewhat more expensive,” he said, citing examples like
higher required down payments and better credit score
standards.
“That will not disappear by the end of 2009,” Curtin
added. “Higher food and fuel prices mean consumers will
have to re-allocate budgets. And I expect the economy to
produce fewer jobs and smaller wage gains, constraining
wealth growth. You also have falling home values. Add in
rising oil prices, which have caused some uncertainty, and
all this has a dampening effect.”
Consumer confidence, a major factor in RV purchases, is also currently at a 28-year low, according to U of
M’s survey.
continued on page 19
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Page 8
of the NEWS
Franklin Coach Breaks
Ground on New Facility
State-of-the-Art Manufacturing
Plant to Replace Structures Lost
to October Tornado in Elkhart
A concrete foundation in Nappanee, Ind., is all that
remains of Franklin Coach Co., one of the oldest RV
manufacturers in Indiana’s Elkhart County.
The facility, founded in 1945 by the late Paul Abel,
was destroyed when an October tornado barreled
through this small city in the southern part of the
county. But on May 23, while standing on the crumbling floor that used to be his office, Don Abel, oldest
son of Paul Abel, was confident of the company's
future, according to the Elkhart Truth.
“Next year there’s going to be RVs pulling out of
this lot,” he said.
Don Abel has bought out his brothers, Steve and
Rick, and with his son, Chris, is rebuilding Franklin
Coach. Construction on the nearly 53,000-squarefoot facility was expected to begin in June and be finished by October. Production should follow by
January 2009.
The new facility will be placed on the same fiveacre site as the former plant. Nuway Construction, a
design/build general contractor chosen for the project, will build a state-of-the-art production facility that
will allow for incorporation of new manufacturing
techniques with work stations, overhead cranes and
movable scaffolding, said Randy Huffman, Nuway
president.
The Franklin plant previously was a mesh of short,
narrow buildings, created by a series of additions
over the history of the company, Huffman said. The
new plant will be 120 feet wide, 400 feet long and 22
feet high.
At the time of the tornado, Franklin Coach had
about 60 employees and was operating five days a
week, Don Abel said. He hopes to begin hiring again
late this year.
Franklin will build the travel trailers, fifth wheels
continued on page 17
Affinity’s Daquino to
Oversee Clubs Division
Affinity Group Inc.
announced that Joe
Daquino will be taking
on an expanded role
as president of Affinity
Clubs, replacing Grant
Miller who resigned
for a position with
Chicago Title.
Daquino will continue in his role as senior
vice president, multimedia division. His
Joe Daquino
new responsibilities
will involve oversight of all Affinity Clubs, including the
Good Sam Club, Coast to Coast, Camp Club USA,
Golf Card International and the newly formed RV
Handyman Club.
Daquino started with Affinity in 1984 as a customer service representative before moving into management. He holds an undergraduate degree from
Case Western University in Cleveland, Ohio, and an
MBA from Pepperdine University in Malibu, Calif. 6
8
Publisher’s Note
RVBusiness Top 50 Dealer Awards Program
to Recognize Nation’s Stellar RV Retailers
By Sherman Goldenberg
You may have heard by now that RVBusiness
magazine is planning to help raise the bar this
year on industry quality — a hot topic during the
past few years — by introducing a new concept
into the recreational vehicle marketplace that
should soon develop into a new industry tradition: the RVBusiness Top 50 Dealer Awards.
The goal of this new national initiative is similar in many ways to our sister trade publication’s annual Boating Industry Top 100 dealer
recognition, now in its fourth year: to select
America’s 50 best RV retailers
in terms of consumer care and
best business practices. And,
yes, we’re forging ahead, even
in these challenging times. In
so doing, we’ll work to keep
people focused and forwardthinking and to extend the
existing mission of the Go
RVing Coalition’s Committee
on Excellence, whose members tackled quality
issues during the past couple of years at every
level.
How does it work?
We’re asking U.S. RV manufacturers to nominate their own dealers. We then forward confidential applications to nominated dealers, who
we’re hoping can complete those applications to
the best of their abilities by July 18.
Making the unranked selections will be an independent “panel of experts,” including Jim
Sheldon, assistant to the chairman, Monaco
Coach Corp., Coburg, Ore., and current co-chairman of the Committee on Excellence; Bob Parish,
vice president, RV Group, GE Capital Solutions,
Tampa, Fla.; Brad Sargent, vice president, marketing, Dometic LLC, Elkhart, Ind.: Carl Pletcher,
OEM Account Manager, Thetford Corp., Ann
Arbor, Mich.; and Larry Lebryk, director of marketing services and aftermarket sales, Atwood
Mobile Products LLC, Elkhart, Ind.
This esteemed panel will simply designate 50
dealers without ranking them from one to 50.
Then, they’ll set aside five “Blue Ribbon” nominees over the rest of the group and one retailer
above the rest as the winner of the new Dave
Altman Award, named after the respected
Southern California dealer and industry activist
who passed away Jan. 12.
That said, we plan on recognizing the Top 50
at a gala reception and dinner at the Rio in Las
Vegas on the evening of Wednesday, Sept. 24, a
separate program held during the annual RV
Dealers International Convention/Expo, which
is sponsored by the RV Dealers Association of
North America (RVDA). There, we’ll plan to bring
together the Top 50 dealership principals and
some of their key personnel along with guest
speakers and a host of manufacturers, suppliers
and distributors plus a celebrity keynoter: legendary NCAA basketball coach Bob Knight.
Afterward, we’ll work to promote the winners
in the national press, in dealers’ hometown
newspapers and in the pages — and on the
websites — of our RV-related trade and
consumer magazines, among them RVBusiness,
Trailer Life, MotorHome, Highways, Coast to
Coast and Camping Life.
Supporting the entire RVB Top 50 Dealer
Awards process, as well as the reception and dinner itself, is a new “Leadership Alliance” of sponsoring companies — so named because of their
willingness to help spearhead something authentically new in this business sector to promote professionalism across the board. Among them are
front-line Platinum co-sponsors ADP Lightspeed,
Salt Lake City, Utah; Assurant
Solutions, Atlanta, Ga.; Blue
Ox, Pender, Neb.; Coach-Net,
Lake Havasu, Ariz.; Cummins
Onan, Minneapolis, Minn.;
Freightliner Custom Chassis
Corp., Gaffney, S.C., and
KeyBank, Brooklyn, Ohio.
Joining us as Gold sponsors
are
Protective
Asset
Protection Division, Chesterfield, Mo., and MBA
Insurance, Scottsdale, Ariz.
These companies apparently have as much
interest in serving the needs of the recreational
vehicle dealer body and for recognizing dealer
excellence as we do — and they’ll help us keep
the mission and message of the RVB Top 50
alive year-round.
Now let’s address a few questions that may
well surface as we roll out this new RVB Top 50
dealer award program:
•Are these applications actually confidential?
All we can do is give you our word that there is
virtually no other valid use for this information.
•Are dealers expected to answer every question on the applications, some of which they
might find intrusive? In a perfect world, yes, we
would love to get a reply to every single question. But we frankly realize that there might be a
question or two with which a dealer might be
uncomfortable. So, again, all we can ask is that
dealers fill out the applications to the best of their
ability, keeping in mind that the more info we
have, the more able we are to make an astute
judgement.
•How will multi-store dealer nominations be
handled? All dealers are limited to one entry.
•Are Canadian dealers involved? Not this
year. We would like to tackle the U.S. market first
and, more than likely, add Canada in 2009.
•Is RVDA endorsing this program? No, RVDA
has not been asked to endorse anything, only to
allow us to set up at the Rio during their convention — which we greatly appreciate.
•To whom do I direct additional questions?
Contact myself, RVBusiness Publisher Sherman
Goldenberg, for any questions or issues that
might arise at (574) 457-3370 or by email at
Goldenberg@kconline.com. For assistance in
obtaining or submitting applications, go to
Barb Riley at BJ Thompson Associates at (574)
255-5000 or briley@bjta.com, or consult
RVBUSINESS.com.
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009-RVB0807 PG 9 DAIMLER
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8:23 PM
Page 10
of the NEWS
RVBUSINESS.com
INDUSTRY POLL RV Industry Looks to ’09 For Economic Turnaround
Many Expect Rebound to Begin Following Upcoming Presidential Election. “I Can’t Wait for the Pent-up Demand to Cut Loose,” Offered One Retailer
The RV industry is anticipating depressed
conditions for the balance of 2008 as a host of
economic pressures continue to tighten discretionary spending, according to the latest RVBUSINESS.com Industry Poll.
When asked to gauge the overall state of the
industry, a strong majority (54%) responded
“below average” followed by 27% who saw the
outlook as “dismal” and another 15% that perceived conditions as “average.”
A member of the manufacturing community
surmised: “The oil prices must stabilize; the financial institutes are delaying a recovery by tight
lending practices, which will not change for more
than a year, maybe two. Dealers are having sales,
but are not replacing inventory in the motorized. If
these things improved tomorrow, we would see a
recovery by August. The war is a hidden factor
that has put a drag on the economy, but this
wouldn’t hurt the RV industry if the other factors in
the economy mentioned above would improve.”
Acknowledging the cyclical nature of the industry, most respondents are looking for the market
to recover in 2009 with many looking at this
year’s presidential election as a turning point.
Responses showed that 30% of participants
expect a turnaround in the early portion of 2009
and 38% are gearing for better conditions by the
end of next year. Another 22% don’t see an upturn
until 2010.
“I can’t wait for the pent-up demand to cut
loose,” offered a retailer. “We are in a cyclical
industry, and have had a great ride for several
years. History shows that after the good years, look
for a couple of bad ones. I believe we have seen our
two off-years and ’09 will release the pent-up
demand and put us back in the growth cycle.”
Many respondents pointed to record-setting
fuel costs as strangling sales in the short-term,
and perhaps signaling a move toward more energy-efficient units in the long-term.
“If they would just get these fuel prices under
control and let the consumer get used to whatever
the price is, or is going to be, then sales will
increase,” responded a dealer. “There are a lot of
people out there who would like to trade up or even
purchase their first coach, and when the market
does come back it will be as strong as ever.”
Thor Reports 22% Drop In 3Q Net
Income, 12% Decline in RV Sales
Adverse economic conditions impacted recreational vehicle sales in Thor Industries Inc.’s fiscal
third quarter as the Jackson Center, Ohio-based
company reported a 22% drop in net income.
“Declining consumer confidence coupled with
high fuel prices have resulted in very soft retail
recreation vehicle sales,” said Wade F. B.
Thompson, Thor chairman, noting that the firm’s
commercial bus interests showed slight improvement in the quarter.
Net income for the quarter, ended April 30, fell
to $27.85 million from nearly $35.6 million in the
year-ago period while sales declined 10% to
$707.9 million compared with $789.6 million.
For the nine months, net income was up 4% to
$87.7 million versus $84.4 million the previous
year and revenue dipped 1.5% to $2 billion from
$2.1 billion.
Thor said RV sales in the quarter totaled $601
million, down 12% from $683.7 million a year
ago. RV revenue in the nine months fell 2% to
$1.77 billion compared with $1.8 billon. 6
Unicat Markets Smaller Off-Road Unit in U.S.
Germany-based Unicat GmbH has begun marketing the 26-foot Unicat MXT — a more consumer-friendly version of its go-anywhere Class C
motorhome — in the U.S.
“This is by far the smallest version that we manufacture for the American market,” said Avi Meyers,
president of distributor UnicatAmericas Inc., Palo
Alto, Calif. “This is much more like a pickup truck.
It's easier to get in and out of, and it’s softer riding.”
10
The MXT predecessor in the U.S., built on an
International 7400 commercial truck chassis,
resembled a military vehicle more than an RV. The
Unicat MXT is built standard on a beefed-up 23,500pound International MXT cutaway chassis equipped
with a 300-hp International VT365 V8 diesel engine.
The chassis is shipped from the U.S. to Unicat's
factory in Dettenheim, Germany, and outfitted with
a 17-foot-long, fiberglass-reinforced-polyester
body. The unit features a four-passenger crew cab
that is designed so the entire cabover roof opens
to the outdoors.
Unicat can be equipped with its own reverse
osmosis desalination system, an 8-kw generator,
oversized fuel tanks, cab roof rack and front and
rear 15,000-pound hydraulic winches. A stainless
steel bumper folds manually beneath the coach
when camping.
Unicats are built to order and take six months to
complete. Shipping to Germany and back is
included in the Unicat MTX's retail price of
$500,000, well-equipped. 6
A manufacturer noted: “The fuel economy is
not going to get better. We need to address the
problem with alternate fuel vehicles or hybrids.”
Volatility in the finance sector also rated as a
key concern.
“The housing market drop impacts the consumers’ home equity, which was a popular
lending vehicle to purchase RVs,” observed a
supplier. “This home value and equity drop has
put RV buying on hold for most. Then there is
very tight credit to gain financing even if you
wanted to buy an RV.”
Some, however, see the current market as a
purging process that will “weed out” businesses
unwilling to change or adjust.
“Economy might be bad, but this will flush out
a lot of weaker players (dealers and manufacturers) and improve the industry in the long run,”
stated a supplier. “Manufacturers and dealers that
continue to do business ‘the old way’ will not survive. This industry needs to modernize, and both
dealers and manufacturers need to embrace new
ideas, innovative products and business practices
to continue to compete in the years ahead.” 6
‘Big Rigs’ Publisher
Sees U.S. Parks
on Pace With 2007
The current spike in fuel prices doesn’t seem to
be deterring the owners of “big rigs,” according to
Ken Hamill, publisher of the Big Rigs Best Bets
Campground Directory.
“I’ve talked to park owners who retail our book
and every park I’ve talked to says that their reservations are up from last year, with the exception of
a few who say they are even with 2007 — and ’07
was a good year, and in some cases their best year,”
said Hamill, who is based in Kerrville, Texas.
The 486-page, eighth annual directory features
information about 1,100 RV parks that cater to
large motorhomes. Hamill and his wife, Ellie, personally visit each park listed in their directory, so
they’re on the road part of each year. The directory lists big-rig-compatible parks in the lower 48
states and Canada’s six most popular provinces.
New listings for big-rig friendly parks in
Alberta and British Columbia were added for the
2008 edition, as were approximately 40 U.S. parks.
“They (park owners) are cautiously optimistic,”
Hamill said. “They expect a good year. They are
content if it is as good as 2007. I think the parks
that will get hurt are along the interstates that rely
on overnight stays.Those parks will be most affected by fuel. I’ve talked with folks from Washington,
D.C., to California and I have a good feeling.”
The Hamills target ownership parks and have
established promotional relationships with 28
such parks across the U.S. “The demand is coming
from folks who are expecting more from an RV
park, even if it’s just for an overnight stay. We do
a lot of jump-starting for these parks,” he said. 6
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011-RVB0807 PG 11 TRVA
6/12/08
1:56 PM
Page 11
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www.TRVA.org or call our office at 512.327.4515.
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007-RVB_0807_LO_TOP
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8:23 PM
Page 12
of the NEWS
GUEST
COMMENTARY
A Good Offense is the RV Industry’s Best Defense
“Now, more than ever, our industry must remain committed to diligently and intelligently
working to maintain public awareness of RV travel and camping.”
Editor’s Note: The following is a message to the
industry from Gary LaBella, vice president and chief
marketing officer for the Recreation Vehicle Industry
Association (RVIA), outlining a proactive and aggressive
marketing strategy in the face of challenging economic
times.
These are trying times. Every other day it seems
there is more discouraging economic news. Oil
prices hit another high. Consumer confidence dips
to a 28-year low. Home values continue their
decline in a sluggish market. In the media echo
chamber, these reports reverberate and conspire to
add to the doom-and-gloom outlook.
It is in times like these that vision, resolve and
perspective are required, par ticularly when it
comes to our industry’s marketing efforts. It is true
that like many other producers of discretionary
products in this tough economic climate, the RV
market is slipping. However, RVIA’s latest forecast
projects that 2008 shipments will total about
304,000 units. That is a respectable total, representing 86% of the 354,000 units shipped in 2007.
It indicates that despite the dour economic news,
there are still a lot of people who are interested in
buying RVs in 2008.
We are seeing that substantiated in the performance of the Go RVing advertising campaign.
Visits to GoRVing.com remain strong and leads to
date have been comparable to 2007, despite
budget cuts necessitated by declining new-unit
assessments.
Now, more than ever, our industry must remain
committed to diligently and intelligently working to
maintain public awareness of RV travel and camping. RVBusiness put this well in its April editorial
when it said the Go RVing campaign “certainly
seems to be the kind of thing that shrewd businessmen/women do to attack, not retreat from,
challenging markets like the one we’re experiencing
here in 2008.” Or, as Keystone RV President Ron
Fenech told the Elkhart Truth in February, “The blow
of the economic downturn has been cushioned by
the Go RVing campaign stirring great interest in the
RV lifestyle.”
In the spirit of attacking rather than retreating
from our challenges, RVIA’s 2008 public relations
and Go RVing advertising programs have been taking the offensive to keep the industry in the news
and in the minds of consumers who, according to
numerous polls, are actively seeking ways to
reduce travel costs.
Even with budget cutbacks, Go RVing will still
spend approximately $13 million on media buys
and $19 million overall in 2008, promoting the
industry on three broadcast TV networks and 37
cable TV networks,
in 32 consumer
publications, and
on 25 websites.
Plus, new initiatives were unveiled
this year to supplement our traditional
advertising, including a new series of
Gary LaBella
lead-generating
ads in new publications and the increased usage of social media tools
such as blogging, postings on YouTube and a fan
page on Facebook.
When you add in the nearly $3 million that RVIA
is spending as an association on PR efforts this
year, our industry is investing heavily in pushing
back against the weak economy and fuel costs to
help maintain RV demand.
With Go RVing, we have been making every
effort to best support the market with available
resources, to be responsible stewards of the industry’s money to reap the most benefits, short and
long-term. And, there have been some tough decisions to make. Regrettably, because of cash-flow
continued on page 17
House Committee Asks Four OEMs to Testif y
A House investigatory panel has asked four
Indiana travel trailer makers to testify this month
about the formaldehyde levels in units purchased
by the federal government as temporary homes
for hurricane victims in Mississippi and Louisiana.
Gannett News Service reported that builders
include Gulf Stream Coach Inc., Nappanee, Pilgrim
International Inc., Middlebury, Keystone RV Co.,
Goshen, and Elkhart-based Forest River Inc.
Trailers built by the companies were among
those found by the Centers for Disease Control
and Prevention (CDC) to have statistically higher
levels of formaldehyde than other travel trailers,
according to Rep. Henry Waxman, D-Calif.
Waxman, the chairman of the House Oversight
and Government Reform Committee, sent letters
to the companies June 4 asking them to testify at
a July 10 hearing. Waxman had previously asked
Gulf Stream, Pilgrim and Middlebury-based
Coachmen Industries Inc. to provide various documents to the committee.
The inquiries stemmed from testing conducted
by CDC on 519 trailers used for emergency relief
following hurricanes Rita and Katrina. Preliminary
results, published in February, indicated that the
majority showed relatively low levels of formaldehyde outgassing, one-third had levels that may
affect those more susceptible such as infants, the
elderly or people with asthma, and around 5% had
“higher levels.”
Following the report, the Recreation Vehicle
Industry Association (RVIA) during its annual
meeting in March voted to adopt formaldehyde
requirements set by the California Air Resources
Board (CARB), which were authorized by the state
April 18. In September 2007, RVIA had adopted
formaldehyde standards for building products
established by the Department of Housing and
Urban Development (HUD).
Also in March, Gulf Stream announced that the
company was using products that met CARB
standards. 6
Bob Lee Launches Diesel Coach Refurbishing Firm
Bob Lee can’t stand still. At 68, Lee, founder
of Junction City, Ore.-based Country Coach Inc.,
could take his millions and take it easy.
But, as reported by the Register Guard,
Eugene, he has decided to start a new enterprise
— the Oregon Motorcoach Center — which will
specialize in refurbishing and servicing highline
diesel-pusher motorhomes.
Lee figures there are 50,000 to 60,000 diesel
pushers on the road, most with engines and
transmissions that haven’t worn out, but which
are getting a little run down.
“In most cases they’re in good shape,” Lee
said. “(Owners) just want to change the furni-
12
ture on them and update them a little bit, rather
than spending $500,000 to go buy a new one.”
Lee said his shop in Eugene can make a used
rig like new by refinishing cabinets, installing tile
floors, updating electronics, changing out the
furniture, repairing bodywork and touching up or
redoing the paint. Mechanics can check the
chassis, brakes, batteries and tires.
Lee said he expected to have about 25
employees on his payroll when the business
was scheduled to open in mid-June, a number
that could grow to as many as 35 workers.
The new company has five principals: Lee; his
daughter, Brenda Lee; Pat Mason, his son-in-law
married to Lee’s other daughter, Kenda; and
Vance and Jane Anderson.
Lee said his enterprise can help support the
area diesel motorhome builders because Oregon
Motorcoach Center can take care of service
work while OEMs handle warranty work.
Lee said he’s still affiliated with Country
Coach — he retained his ownership stake and
has a consulting contract, offering his advice to
CEO Jay Howard as needed. Lee and Howard
were part of the ownership group that bought
Country Coach back from its failing parent corporation, National RV Holdings Inc., and took it
private, in 2007. 6
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8:23 PM
Page 14
of the NEWS
Winnebago Idles Class C Plant in Charles City,
Moves Production To Forest City Headquarters
Company Cites Capacity-Utilization Rate of 35% for Q3 as Motorhome Sales Continue to Decline
Winnebago Industries Inc. announced June 2
that it will idle production at the company’s manufacturing facility in Charles City, Iowa, effective
Aug. 1, impacting an estimated 270 salaried and
hourly employees.
The moves follows an earlier decision in
March when Winnebago said it had cut its work
force by about 9%, or about 300 people during
the second quarter, to bring production in line
with slowing sales.
The facility currently assembles Class C products which will be relocated to the company’s
headquarters in nearby Forest City throughout
the company’s fiscal fourth quarter, ending Aug.
30. Winnebago emphasized the relocation would
not affect the company’s customers or product
offerings.
The motorhome builder said it will maintain a
significant presence in the Charles City area, with
approximately 190 employees remaining in the
company’s hardwoods facility and Charles City
assembly facility, which produces Winnebago’s
new Class B motorhomes.
Completed in the spring of 2004, the Charles
City plant allowed the builder to increase capacity during a year of record-breaking sales for
Winnebago and the motorhome market.
Winnebago noted that “market conditions have
dramatically changed since 2004.” Total Class A
and Class C motorhome industry wholesale shipments are estimated by the Recreation Vehicle
Industry Association (RVIA) to be 40,400 units for
2008, representing a 42% decline when compared
to the 69,300 motorhomes delivered in 2004.
Winnebago said that the current conditions
have necessitated capacity reductions to more
closely match market demand. The company
believes these actions will better position it for a
business environment that it expects will continue to be challenging.
“In order for us to keep production in line with
market demand, our employees in all locations
— Forest City, Charles City and Hampton — have
been significantly impacted throughout the last
several months,” said Winnebago Industries
Chairman, CEO and President Bob Olson. “For
example, in our third quarter ended May 31, production was reduced during 12 of the 13 weeks
through either four-day work weeks or shutting
down entire production lines for a week at a time,
resulting in an extremely low capacity utilization
rate of less than 35% for the quarter.”
RBC Capital Markets analyst Edward Aaron said
in a client note that he was not overly surprised that
Winnebago was closing the plant, but said the
move “underscores the severity of the current
downturn in the recreational vehicle industry.”
Aaron did note, however, that Winnebago’s
efforts give it the chance “to gain share through
attrition as certain competitors face financial
stress.”
William Blair & Co.’s Robert Simonson said
Winnebago’s decision to close the Iowa plant
indicates that industry conditions are worse than
previously thought.
“We remain of the opinion that a slowdown in
consumer discretionary spending, especially on
big-ticket purchases like a motorhome, is likely
to prove longer and deeper than is the current
consensus view,” the analyst wrote.
In reports made public prior to the announced
closing of the Forest City plant, however, analysts took stock of the fact that the company has
remained profitable and has no debt and some
cash on the balance sheet.
“While we had not been positive on RV fundamentals, we viewed Winnebago as a core RV
holding, especially for a recovery once the consumer market becomes more positive on discretionary purchases. That has not changed,” wrote
analyst John Diffendal of BB&T Capital Markets.
Winnebago said it intends to reopen the
Charles City facility in the future when the added
capacity is needed. 6
Patrick Industries Names New Chairman, President
RV Rentals Expected To
Increase 18% in 2008
Patrick Industries Inc., Elkhart, Ind., announced
May 22 the appointment of President and CEO Paul
E. Hassler as chairman and the promotion of COO
Todd M. Cleveland, Patrick’s executive vice president of operations and sales, to succeed Hassler
as president. Hassler will continue as CEO while
Cleveland retains his position as COO.
The appointments were announced following
Patrick’s quarterly board meeting.
“I want to congratulate Todd for his promotion to
president,” Hassler said. “Despite the ongoing challenges in our core markets, we remain focused on
executing our strategic plan based on market penetration, enhanced capacity utilization, improving
operating efficiencies and product development.”
In April, Patrick reported a first-quarter net loss of
$1.4 million compared with $0.7 million in the yearago period while sales rose to $111 million from
$78.1 million. The first-quarter net loss includes
pre-tax intangible asset amortization of approximately $0.4 million related to its Adorn acquisition
and increased interest expense of approximately
$1.2 million.
During the quarter, Patrick closed an adhesives
division and consolidated an Elkhart lamination operation into Adorn’s 198,000-square-foot-facility. To
complete the restructuring, Patrick intends to consolidate two other Elkhart lamination operations, which
are currently in leased facilities, into a 180,000square-foot manufacturing complex owned by
Patrick. The company also eliminated 82 salaried
positions related to consolidation efforts. 6
Detroit Diesel to Exit Motorcoach Market
Daimler AG has announced that Detroit
Diesel engines will no longer be available for
motorhomes or fire trucks starting in 2010,
according to National Bus Trader magazine.
Detroit Diesel powerplants after that date
will be available only to Daimler-owned
companies, none of which produce motorcoaches.
The primary RV manufacturer affected by
the change in Germany-based Daimler’s
strategy will be Prevost Car Co., Sainte-Clair,
Quebec, which provides bus shells to
14
motorhome converters.
The magazine said the announcement will
accelerate Prevost’s strategy to offer Volvo
engines to various coach markets. Prevost is
owned by Volvo Bus Corp., Gothenburg,
Sweden. “Detroit Diesel has assured ... that
they will fully support vehicles equipped with
Detroit Diesel engines now and in the future,”
the periodical reported, adding that Prevost is
in the process of identifying and providing
bus-specific training for service centers that
will best suit Prevost customers. 6
RV rental companies expect 2008 to
be a strong year even with higher gas
prices and lower consumer confidence, according to a recent poll of
Recreation
Vehicle
Rental
Association (RVRA) members, the
rental division of the Recreation
Vehicle Dealers Association (RVDA).
Preliminary results from the annual
survey showed that RV rental firms are
looking for rental activity to increase
about 18% this year.
They are also expecting to have
slightly more foreign renters — a total
of 10% of all renters compared to 9%
in 2007, perhaps boosted by the
weakness of the American dollar.
Most RVRA members responding
to the survey say they have about the
same or a few less units available to
rent in 2008 as they did in 2007.
Gas prices continue to be a concern
for RVRA members in 2008.
However, many report bookings that
are above or equal to 2007 levels. They
also said that renters are planning
shorter trips. 6
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015-RVB0807 PG 15 SPADER
6/12/08
1:56 PM
Page 15
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For more information on what Spader can do for you, visit spader.com or call
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007-RVB_0807_LO_TOP
6/16/08
8:23 PM
Page 16
of the NEWS
April Motorized Sales Drop 31%
Gas prices, sagging consumer confidence and an uncertain economy continued to stifle discretionary spending
in April as motorized sales incurred
a 30.8% decline in year-over-year
comparisons.
According to data from Statistical
Surveys Inc., Grand Rapids, Mich., registrations for the month totaled 3,168
units versus 4,577 in the year-ago period, marking the sixth straight month of
double-digit declines. For the four
months, sales decreased 26.1% to 11,864
units from 16,060 the year prior.
April Class A motorhome sales plummeted 37.2% with 1,786 units sold compared to 2,844 in 2007. Year-to-date the
sector saw sales decline 28.4% with
7,271 units sold versus 10,159 last year.
The Class C retail sector fell 20.3%
in April to 1,382 registrations from
1,733 in 2007 while sales tumbled
22.2% to 4,593 units from 5,901 for the
four months. 6
Pilgrim Announces Key
Management Changes
Pilgrim
International
Inc.
announced May 27 a restructuring
of key management personnel to
help streamline the development
and implementation of their new
composite product launches.
Doug Lantz has been promoted to
chief operating officer (COO) and
will be responsible for the day-to-day
operations of the company, while
Jerry Sell has been promoted to vice
president of product development
and marketing and Len Ropp has
been named vice president of sales.
Lantz previously held the position of
vice president of product development, while Sell had been vice president of sales and marketing; industry
veteran Ropp has held sales leadership positions for several companies.
“Doug has been involved in every
aspect of the company throughout
the composite development process,”
said Steve Bennett, president of
Middlebury, Ind.-based Pilgrim
International. “He is uniquely suited
to lead Pilgrim in to the future with
all of the new materials and processes involved.”
Bennett remains president of the
travel trailer and fifth-wheel manufacturer. Jerry Rummell continues as
chief financial officer (CFO), and
company founder Dave Hoefer continues to remain actively involved as
chairman of the board. 6
ARVC InSites Confab Slated for Nashville
Nashville, Tenn., will play host to this year’s
National Association of RV Parks &
Campgrounds (ARVC) InSites 2008 Annual
Convention and Outdoor Hospitality Expo Nov.
12-15 at the Renaissance Nashville Hotel and
Nashville Convention Center.
Celebrating “Outdoor Hospitality Excellence
Country Style,” ARVC park owners and industry leaders will gather for a week of educational seminars, the industry’s largest trade show
and evening events at some of Nashville’s
legendary entertainment venues.
The convention kicks off Nov. 12 with a welcome breakfast, annual meeting and a salute
to all the first-timers attending InSites.
Serving as a centerpiece for the week is the
General Session & Harmony Luncheon with
motivational keynote speaker Brian Biro.
Known as ‘America’s Breakthrough Coach,”
Biro will present “The Unstoppable Spirit,” a
16
presentation that provides insight on thriving
and excelling in the face of abrupt change,
genuine adversity and immense obstacles.
ARVC said there will be no concurrent educational sessions during expo hours to offer
attendees the opportunity to focus entirely on
the exhibits. Attendees will have the opportunity to mix and mingle with more than 150
exhibitors displaying their latest products,
services and technologies to benefit their
parks.
The ARVC Foundation’s Music Row Live
Auction is slated for Nov. 13. The auction,
which benefits the ARVC Foundation, a
501(c)(3) organization, is ARVC’s largest
fundraising activity each year and raises
money to provide education and growth in the
outdoor hospitality industry. The ARVC
Foundation is currently in search of donations
for this special event. 6
IN BRIEF
La Mesa RV Acquires Featherlite
Sales Facility. La Mesa RV recently
completed the acquisition of the Featherlite
Coaches Inc. sales and service facility in
Sanford, Fla., and is relocating its East
Coast operations from the current site in
Tampa. Featherlite will continue to build its
line of Prevost bus conversions at the
Sanford manufacturing plant. With the
transaction, La Mesa also becomes the
exclusive outlet for Featherlite sales and
service in the state of Florida. La Mesa,
based in San Diego, operates eight dealerships in California and Arizona. La Mesa
said that the new dealership provides
space to display in excess of 200 new and
certified pre-owned motorhomes along
with a service center.
SoCal’s Newport Dunes Marks
50th Anniversary. Newport Dunes
Waterfront Resort, Newport Beach, Calif.,
is celebrating its 50th anniversary
throughout 2008. The picturesque Dunes
will celebrate the milestone by offering
“golden opportunities” including RV sites
for $50 (offered randomly throughout the
year) and extravagant dinners at the
resort’s award–winning restaurant, the
Back Bay Café, for a minimal $50.
Newport Dunes Resort is a state-of-the art
386-site RV park sporting doublewide
spaces individually fenced off for maximum privacy plus cable TV and 20-, 30and 50-amp electrical service.
Manufacturer Receives Dell/NFIB
Award. Transport Designs Inc., a manufacturer of customized enclosed trailers
and truck conversion motorhomes in
Montoursville, Pa., was awarded a 2008
Dell/National Federation of Independent
Business
(NFIB)
Small
Business
Excellence Award. Transport Designs will
receive $25,000 in Dell products and services, a lifetime membership to NFIB, valued at $15,000, which includes a trip to
NFIB’s National Small-Business Summit,
and a day of best-practice sharing with
Dell experts.
Monaco Announces Launch of
Signature Resorts. Monaco Coach
Corp. announced June 13 the formation
of Signature Resorts to develop and manage its growing luxury RV resorts segment. The new company, based in
Nashville, Tenn., will be headed by E.
Randall Henderson who will serve as
president. In making the announcement,
Monaco also reported that two new
Signature Resorts developments are
under construction in Bay Harbor, Mich.,
and Naples, Fla. 6
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8:24 PM
Page 17
of the NEWS
Franklin Coach
from page 8
and park model homes as it did before the storm,
but, Abel noted, the appearance may be updated
and some of the units may be built with aluminum
sidewalls and fiberglass exteriors.
“We need to move into the 21st century,” he said.
Also, he emphasized Franklin will sell products
only to registered dealers. That was the way his
father wanted to do business and that is the way
Don Abel intends to carry on. 6
from page 12
considerations, we imposed a freeze on some
cable advertising in June and July, as well as
some Internet and print advertising spending.
Fortunately, we will still have a major summer
presence on one of the year’s most anticipated
and high-profile events — the 2008 Summer
Olympics taking place August 8 -24.
Go RVing spots will air more than 125 times on
both network and cable coverage of the
Olympics, generating exposure that will help
ensure that RV travel is kept in the forefront of
consumers’ minds in a highly visible way in a
time of need, while setting the stage for a
rebound as consumer confidence returns.
Go RVing is also developing new tactics to
help dealers capture pent-up RV demand as the
market recovers and to communicate the RV
travel value message to consumers through our
website and fulfillment materials. This was the
key topic of discussion during the Go RVing
Coalition meeting during RVIA’s Committee Week
on June 9.
At that meeting, the Richards Group, Go
RVing’s award-winning advertising agency, presented a 2009 media plan based on their
research into successful ad strategies during
recessionary periods. Coalition members provided their input on whether to adopt the agency’s
and our staff’s recommended approach of focusing even more on leads-building media next year,
to help capture the “low-hanging fruit” and identify prospects ready to buy.
As you know, the Go RVing advertising campaign works hand-in-hand with RVIA’s public
relations efforts to keep RVing in front of consumers. Given the current economic conditions,
it is a complex PR environment, but our PR staff
and agency of 19 years, Barton-Gilanelli &
Associates, have developed an aggressive “RVIA
PR: Taking the Offensive” plan. Through this
approach, the PR team is offering fact-based stories to the media that demonstrates the counterintuitive reality that RV travel is still the best value,
and that RVers are not parking their units — and
the approach has yielded some terrific results so
far, with positive coverage during the Memorial
Day weekend on major TV news programs and
daily newspapers from New York’s Wall Street
Journal to the Los Angeles Times.
Yes, these are trying times. But, that doesn’t
mean they have to be devoid of long term thinking and optimism for the future. Smart marketers
know this. We know this … that’s why we have a
marketing plan for the times. 6
Impress Your Customers
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Every Coach-Net membership still provides comprehensive roadside
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customers resolve operational issues. But now there’s more…
We understand your customers and their passion for travel. So
we’ve expanded our classic road service to meet their individual
travel needs.
• Gold offers a long list of concierge services for use both on, and
off, the road.
• Platinum expands Gold services with air, hotel, and baggage
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Call us today or visit our Web site to learn how Coach-Net can
enhance your brand value and customer loyalty.
www.coach-net.com
1.800.863.6740
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Contents
COACH NET, CIRCLE 114 ON READER SERVICE CARD
LaBella
018-RVB_0807_LO_Spader_Rep
6/16/08
4:16 PM
The SPADER
Page 18
REPORT
■
BY JOHN SPADER
Back-to-Basics
“Bad habits are made in good times and good habits
are made in bad or tough times.”
I
am not sure where this quote originated, but I have heard it many
times through the years — most recently from a consistently
high-performing dealer in one of my 20 groups. He made this
statement to the group and then proceeded to share with us the list
that he and his managers had made of all the “bad” habits they had
developed during the last few years when business had been very
good. They now had action plans to address and change each of the
issues on the list.
In tougher times, it is important for stability, and even survival, that
a business makes sure the foundational basics are in place and are
being executed. In working with hundreds of dealers across several
industries, it is exceedingly clear that
those who have the basics in place,
and are executing them, are significantly better off. The following is a simple assessment of a few of
the key items that can make a significant difference — if implemented. Hopefully, this will help RV dealers identify some basic
improvements that will help them stabilize and/or grow their business, especially in more challenging times.
Financial
People Management (cont.)
We have a strong balance sheet (our debt-to-equity is 2.5-to-1
or lower).
■ Yes ■ No
The organization uses a proven and effective survey of all
employees to know if and where there are “people issues” within
■ Yes ■ No
the organization.
We have a detailed annual profit plan in writing broken down by
month.
■ Yes ■ No
We do monthly deviation reports and forecasts of sales, available
income (gross profit), expenses, and net profit/loss to know
where we are compared to plan, and where we are headed if
things don’t change.
■ Yes ■ No
The leader of the dealership has the passion, energy, commitment
and competence to lead through tough times.
■ Yes ■ No
Each department is staffed at the appropriate level based on
realistic sales projections.
■ Yes ■ No
We have forecasted and are managing and monitoring our cash
flow on an annual and monthly basis.
■ Yes ■ No
Sales
We know our true cash position daily (our position after all payables,
customer deposits, etc. are subtracted).
■ Yes ■ No
There is a unit sales process that is written, trained, and followed
■ Yes ■ No
daily.
Inventory
There is a written and followed process for following up on
Internet leads. (They are serviced as if they called on the phone
or walked in the door.)
■ Yes ■ No
We have an annual inventory plan in writing that is based on our
targeted sales volume, as well as broken down into monthly
inventory goals by product type.
■ Yes ■ No
We monitor and “tweak” our inventory plan monthly to adjust to
changing market conditions.
■ Yes ■ No
People Management
We are creating and executing plans to keep the nonverbal environment of our dealership positive, fun, and high-energy, even if
the market is tough.
■ Yes ■ No
The leadership of the business knows and uses the different leadership styles needed in favorable versus unfavorable situations.
■ Yes ■ No
The business has an effective people-management system that
consistently hires the correct people for the job and then trains,
develops, and manages them to high performance.
■ Yes ■ No
We have traffic logs that measure and monitor all store traffic
■ Yes ■ No
and close ratios.
The dealership has a written and implemented follow-up process
with all prospects and customers.
■ Yes ■ No
Market share is measured, monitored and managed.
■ Yes
■ No
The dealership is flat-rate billing and menu selling in the service
■ Yes ■ No
department.
There is an effective sales process in the parts and accessories
■ Yes ■ No
department.
There is a defined, written, and followed marketing plan for the
dealership and all its departments, based on realistic market
■ Yes ■ No
conditions.
It has been proven that dealers who can answer yes to all or most of these items will have a dealership that is more stable and out-performing the market conditions, especially in tougher times. We wish you the best and hope you found a nugget or two in the assessment. 6
An author, consultant and instructor, John Spader has worked with a host of individual companies (most frequently retail dealerships) in a variety of industries.
Spader Business Management - and the network of 20 Groups for which is has largely become known - blends statistical analysis and hands-on coaching and
consulting to assist clients in formulating proven business plans and increasing revenues. Comments or suggestions can be sent to: articles@spader.com.
18
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Page 19
of the NEWS
from page 7
Curtain sees Class A shipments falling in 2008
and then remaining at a low level in 2009. He also
sees conventional travel trailers falling in 2008, but
then starting to improve modestly in 2009.
“The one category I see as continuing to decline
over the forecast horizon (throughout 2009) is the
folding camping trailer,” he said, noting that those
buyers are typically more susceptible to income constraints and a “diminution of living standards because
of rising fuel and food costs.”
Industry officials and analysts queried by RVB
agreed with Curtin’s view that there won’t be a
significant uptick before next year.
Paul Eskritt, president of Fleetwood Enterprises’
RV Group, Riverside, Calif., thinks “It will be a tough
summer, with maybe a little recovery in the fall after
we get through the election, which always spooks
people. And now you’re heading into the winter
months; spring will be the next measurable upturn.”
Added Bob Wheeler, president of Airstream Inc.,
Jackson Center, Ohio: “How long and deep of a
recession? That’s a billion-dollar question — what
makes things turn and break back upward? I don’t
see anything short-term that will have a meaningful
impact on consumer confidence. Even the mitigation
of gas prices won’t help. We’re hoping the next buying cycle will start in early 2009, once we get the
elections behind us.”
Kathryn Thompson, senior research analyst at
Avondale Partners LLC noted the similarities between
the current downturn and that of 1990-1991, which
was also driven in large part by a credit crisis and
housing bust and lasted for about 28 months.
Overall, RV shipments were off 10.9% in the first
four months of this year from a year ago, according
to RVIA.
Gearing for Price Hikes
The relentless rise in commodity/raw materials
prices has gotten little attention. But its effects on RV
suppliers and manufacturers are very real and will
become more apparent in price hikes anticipated later
this year and next.
Under normal circumstances, a downturn in the
economy would reduce demand and help contain
materials costs. But the impact of such factors as
China’s rapid infrastructure development have kept
demand — and prices — high even as the U.S.
economy has cooled off.
As Fleetwood’s Eskritt pointed out, “You’re seeing
significant (price) increases in steel, aluminum, copper and any petroleum-related products. At the end of
the day, somebody has to bear the costs. Metals surcharges on products, going through the model year,
will likely affect pricing by most manufacturers.”
Chassis are, of course, the single biggest item in a
motorhome. They account for about half of the average materials cost in Class A and C coaches. Overall,
materials account for about two-thirds of the average
wholesale price of these RVs, noted Sarah Nielsen,
vice president and chief financial officer for
Winnebago Industries Inc., Forest City, Iowa.
Chrysler Holding LLC’s Dodge Division, Auburn
Hills, Mich., already announced an early, mid-2008
price hike of less than 5%. But Winnebago officials
are bracing for what could well be “fairly big increases” from major RV chassis suppliers like Workhorse
Custom Chassis LLC, Union City, Ind., and Ford
Motor Co., Dearborn, Mich., said Nielsen. “They could
be a significant element this fall,” Nielsen pointed out.
In 2010, diesel engine-chassis suppliers will also
face higher costs related to additional emissions
controls required to meet stiffer governmental standards. How much that will add to the cost of an RV
diesel chassis is still unknown, though it’s not likely
continued on page 20
ARVC Convention
from page 7
business.”
Cornwell said some Florida RV park and resort
owners are benefiting from higher fuel prices
because “snowbirds” are taking advantage of a
“6-6” program and leaving their RVs behind on
rental spaces in the off-season rather than driving
them back up North. The program has been available for many years in Florida but more visitors
are availing themselves of the service this year,
he said.
And, he added, in-state RVers are staying in
Florida, which also helps park revenue.
The association offered a number of different
seminars at the convention, led by expert moderators including Robert Bouse of Kampgrounds of
America and Bob MacKinnon of MacKinnon
Campground Management. Jim Tillman, the association’s lobbyist, reviewed key legislative matters
affecting the state’s campground industry. Max
Gibbs, former chairman of the National
Association of RV Parks and Campgrounds
(ARVC), also spoke at the convention and
reviewed the benefits of belonging to ARVC while
campground manager Tim Deputy moderated the
cracker barrel session.
During the convention, new officers were elected to serve two-year terms. They are:
President Linda Phelps, Up River Campground,
North Fort Myers; Vice President Bob Little,
Flamingo RV Resort, Jacksonville; Treasurer Pat
O’Neill, Camping on the Gulf, Destin; Secretary
Tim Deputy, Sun ‘N Fun RV Resort, Sarasota. 6
B W TRAILER HITCHES, CIRCLE 111 ON READER SERVICE CARD
Economic Climate
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of the NEWS
Economic Climate
from page 19
adjustments,” he said.
However, even in the current downturn, “There’s
good business potential out there,” said Richard
Florea, president of Dutchman Manufacturing Inc.,
Goshen, Ind. “But you have to work harder and
smarter and ‘laser focus’ on products to make sure
everything you do adds value. It’s no secret guys are
falling by the wayside. We hope to take market
share,” he added.
As one example, Dutchman has been growing its
Western trailer sales in the face of a declining market,
as a result of its parent, Thor Industries, Jackson
Center, Ohio, having built a plant in Burley, Idaho. It
produces both Dutchman trailers and sister division
Four Winds International, Elkhart, Ind., products.
According to Florea, the plant’s location — within
750 miles of “every major Western market” —
allowed the company to trim high freight charges
which particularly affect entry-level products, and
made the product more competitively priced. “We’ve
been picking up dealers and growing the market out
West,” he concluded.
Manufacturers also still see strong demand — and
are gearing more products — for such segments as
micro/ultra-light trailers, park models and smaller
diesel-powered motorhomes.
Ultra-light trailer demand, driven by high fuel
prices, will continue getting long-range impetus from
more stringent forthcoming new Federal fuel economy standards.
“You’ll find people going to lightweight products
and the focus on aero designs increasing every year.
It’s been a major trend, and will definitely continue,”
said Fleetwood’s Eskritt. “We’re definitely focused on
lighter weight products.”
continued on page 44
MITO CORP, CIRCLE 104 ON READER SERVICE CARD
to be as big a pricing hit as with ’08 models.
With 2008 models, new on-board diagnostics
(OBD), along with a particulate filter used to capture
and burn off soot were required. The new emission
technology also required various sensors to monitor
the exhaust before it gets to the filter, as well as afterward, to ensure the engine is operating properly to
protect the aftertreatment system from damage.
The new technology was largely responsible for
Winnebago’s average dealer cost of a Class A diesel
motorhome, for example, increasing from about
$160,000 in the fourth quarter of fiscal 2007
to $170,000 in fiscal 2008, Nielsen noted. Other
factors, such as equipment content/features, also
contributed to the increase.
Separately, suppliers such as Atwood Mobile
Products, Elkhart, Ind., a major producer of numerous RV products ranging from water heaters to vinyl
windows, have also been feeling the materials’ cost
impact. The company has already sent a letter to
customers signaling its intent to raise prices.
Depending on the component and amount of value
added, the increases could range from 21⁄2% to 6%
and potentially up to 14%, said Tim Stephens, company president. “The price increase will obviously be
higher for aluminum extrusions for trim, for example,
which has 80% material content, than on a product
that only has 55% material content,” he noted.
Similarly, Drew Industries Inc., White Plains, N.Y.,
is anticipating price hikes later in the year. However,
at the company’s first-quarter earnings conference,
Fred Zinn, Drew’s newly appointed president, said it
was “too early to estimate the timing and net impact
of higher raw material costs and increased selling
prices.”
“Raw material cost increases of this magnitude
require that we obtain significant price increases from
our customers,” Zinn added. “Unfortunately, these
cost increases come at a challenging time, with the
downturn in both the economy and our industries.”
Overall, Drew, like Atwood and others, has been
making every effort to deal with the costs by improving operating efficiency and reducing overhead. Drew
has even been “pre-buying certain raw materials at
lower prices to the greatest extent possible,” Zinn
said. He anticipated that the efforts would “largely”
help the company “offset the raw material cost
increases,” but noted “there could be a difference in
the timing of the increases in costs and sales prices
over the next several months.”
Manufacturers Sight Opportunities
The downturn has been taking its toll on dealers
and manufacturers alike. National RV Inc., Western
RV Inc. and Travel Supreme Inc. all ceased production this year, while some other manufacturers cut
back production, particularly in Class As, where
demand continued to decline.
“My feeling is it’s not done yet,” said Eskritt, with
reference to the manufacturer shake-out. Fleetwood
itself took numerous actions, including another $40
million in annual operating expense reduction in fiscal
2008, to shore up its financial position, according to
John Diffendal, CFA with BB&T Capital Markets. Top
management, “while more upbeat and what we
would term ‘comfortable’ after its numerous actions,
is still looking for 3-5% declines in its markets in fiscal 2009,” Diffendal added. But Fleetwood also “feels
(the additional market declines) can be handled without further major production capacity or overhead
20
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021-RVB_0807_LO_NIF-Winneb
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W I N N E B A G O D E A L E R D AYS
New, Shorter Diesel Pusher, Merged
Class A Gas Series Introduced at ’09
Winnebago Industries’ ‘Dealer Days’
More than 600 dealers attended the
annual “Dealer Days” program, held
at the Mirage hotel in Las Vegas.
Streamlined Winnebago, Itasca Product Lines to Include 23 Models, 78
Floorplans; More than 600 Dealers Celebrate Manufacturer’s 50th Year
■ P H OTO S
B Y T H O M A S
M Y E R S
innebago Industries Inc. drew more folio a week before the “Dealer Days” conventhan 600 dealers to the Mirage hotel in tion upon the retirement of Bruce Hertzke.
Las Vegas May 12-15 to mark its 50th
For 2009, Winnebago will offer 23 Winnebago
anniversary and promote 2009 products at a and Itasca motorhome models and 78 floortime when the market is as challenging as any plans, 46% of which are new or redesigned.
in recent times.
In challenging times like this, Olson told dealers
“All in all, I was very pleased with the
dealer reaction to our 2009 products,”
Journey
said President Bob Olson, a 38-year
Winnebago employee who added the
duties of chairman and CEO to his port-
W
Winnebago has added a shorter 34-foot floorplan to the
2009 Winnebago Journey/Itasca Meridian diesel pusher series to appeal to fuel-conscious buyers. Built on
29,410-pound GVWR Freightliner XC chassis with 350hp Cummins ISB engines, Journey/Meridian features a
$212,275 base MSRP. “Historically, (shorter diesel
pushers) haven’t been a super-successful line,” said
Winnebago Chairman, President and CEO Bob Olson.
“We are willing to take a gamble. With fuel prices the
way they are, people are going to be looking more
toward coaches like that.”
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021-RVB_0807_LO_NIF-Winneb
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Winnebago Industries’ President Bob Olson (left, on stage during the entertaining
“Dealer Days” presentation), added the duties of chairman and CEO following the
scheduled retirement of Bruce Hertzke a week before the annual dealer confab.
into a “J series” Adventurer Class A, while the Itasca
Sunrise and Suncruiser were merged into a new
Itasca “K series” Suncruiser.
While Olsen told RVBusiness the product merger
“was well received,” Bill O’Leary, vice president of
product development, said the result in both cases will
be retail prices several thousand dollars lower than the
2008 model carrying the Adventurer and Suncruiser
nameplates. And he said it will give Winnebago the
opportunity to focus more on diesel products.
in Las Vegas that it’s more important than ever for
retailers and manufacturers to form strong bonds. “If
the current downturn continues, the potential exists
that more (manufacturers) will fall,” Olson said. “That’s
why it’s important for dealers to partner with a strong
OEM and why it is important for Winnebago Industries
to partner with strong dealers.
“I can assure you that as a company, Winnebago
Industries is in an extremely strong position.”
The company in 2007 was again the market leader
with an 18.6% share of the combined Class A and
Class C sales, and led in Class C sales with a 24%
market share.
Destination
The Winnebago Destination/Itasca Latitude Class A pusher has been
redesigned for 2009, but still offers two chassis choices — a 27,910-pound
GVWR Freightliner XC rear-engine diesel equipped with a 340-hp
Cummins engine or a 26,000-pound GVWR Workhorse UFO rear gas with a
340-hp GM Vortex powerplant. Available in 38- and 40-foot floorplans, the
base MSRP is $183,666.
“Last year we shared data that showed Class A
diesel products had surpassed Class A gas volumes in
sales, and that trend has held true during the past
year,” he said. “The diesel-pusher market segments
stand out as a prime opportunity for increased volume
and profit opportunity for our dealers.”
O’Leary also noted that Winnebago Industries’
diesel motorhomes — Winnebago Destination/Itasca
Cambria
Redesigned for 2009, the Winnebago Aspect/ Itasca Cambria Class C offers
two new floorplans and a lower profile, while maintaining 6 feet 5 inches
of headroom. Built on a 14,500-pound GVWR Ford E-450 cutaway chassis
with 30- to 32-foot floorplans and up to three slideouts, the new
Aspect/Cambria features standard full-body paint. MSRP: $81,257
Highly visible among the displays at the Mirage
was the new 2009 Sprinter-based ERA Class B
motorhome, which is being marketed as a corporate
brand rather than carrying the Winnebago or Itasca
nameplates.
“We’ve made key improvements, have exciting
floorplans, more eye appeal, and we have done
something this year that is very unusual in today’s
world of rising commodity costs and other economic
bad news,” Olson told dealers. “We held the line on
diesel pricing.”
Winnebago also reduced its emphasis on gas-powered Class A motorhomes as the Winnebago Voyager
and Adventurer motorhome brands were combined
22
View
The 2009 Winnebago View/Itasca Navion Class C features three floorplans on the fuel-efficient 11,030-pound GVWR imported Sprinter cab
chassis equipped with a 154-hp Mercedes-Benz diesel engine. MSRPs
start at $92,418.
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Page 23
Latitude, Journey/Meridian, Tour/Ellipse and Vectra/
Horizon — will continue to be built exclusively on
Freightliner chassis. “They are the diesel chassis
product leader and have the best diesel chassis service network,” he said.
He also stressed that Winnebago continues to be
committed to emphasizing the differences between
the Winnebago and Itasca brands.
“We announced our brand-differentiation strategy
last year and we are continuing to reduce closely
aligned sister products in order to strengthen representation in all model lines,” O’Leary said. “This
approach will also reduce brand competition that
lowers profit potential for both dealer networks.”
Roger Martin, vice president of sales and marketing, said that marketing initiatives also will focus on
reinforcing brand differentiation in ads and
brochures, Internet websites and shows.
Winnebago Industries, he added, has created
separate websites for the Winnebago (www.
gowinnebago.com) and Itasca (www.goitasca.com)
as part of the differentiation initiative.
Martin told dealers that the current industry difficulties will turn around. “Having been around this long as
a company, we’ve collectively seen down markets
before,” Martin said. “Traditionally, our industry is one
of the first to indicate an economic downturn and, we
are traditionally on the leading edge of a rebound. So
the question isn’t if it will turn around, but when.”
Suncruiser
Winnebago Adventurer has been merged with the Voyager product line for
2009 to create a new lineup of gas-powered Adventurer Class A coaches
with GVWRs ranging from 22,000 pounds to 24,000 pounds on either
Workhorse W-22 or Ford F-53 chassis. The Itasca Suncruiser and Sunrise
series were also merged to create a new Suncruiser line. Available in four
floorplans in lengths of 33 to 39 feet, MSRPs start from $124,828.
“Nobody can give a hard date,” he continued.
“However, based on what we are seeing, we believe
the November elections hold a key.”
Also attending the dealer meeting was Richard
Coon, president of the Recreation Vehicle Industry
Association (RVIA), who delayed his departure for a
trade mission in China to be in Las Vegas, and Mike
Molino, president of the Recreation Vehicle Dealers
Association (RVDA).
Each dealer received a 36-page, soft-cover book, 50
Years on the Road, containing a decade-by-decade
overview of the rich history of the company founded
in 1958 by John K. Hansen, along with recollections
from past and present employees. 6
Top Dealers Honored
Special accolades were reserved during Winnebago Industries’
annual Dealer Days for dealerships that continued to perform well
even in a challenging market, as well as those recognized for superior customer service.
■ Lazydays RV Center, Seffner, Fla., which took top overall honors
as well as the top Winnebago brand and top Itasca brand nationally
■ La Mesa RV Center, San Diego, Calif., the leading Winnebago
brand dealer in the Western Region
■ Mike Thompson Recreational Vehicles, Fountain Valley, Calif.,
the top Itasca brand dealer in the Western Region
■ Woody’s RV World, Red Deer, Alberta, top Winnebago brand
dealer in Canada
■ Voyager RV Center, Winfield, B.C., Canada’s top Itasca brand dealer
■ Motouris LTD, Glattbrugg, Switzerland, No. 1 rental dealer
Winning Winnebago’s Partners in Excellence award, recognizing
dealerships with the best market share penetration in their areas:
■ Winnebago Western Region: Jack Sisemore Traveland LP,
Amarillo, Texas; Uhlmann RV Inc., Chehalis, Wash; and Alpine
Recreation Sales & Rentals Inc., Morgan Hill, Calif.
■ Itasca Western Region: Olympic RV, Sequim, Wash.; Guaranty
RV Centers, Junction City, Ore.; and Village RV, Roseville, Calif.
■ Winnebago Eastern Region: Bullyan RV, Duluth, Minn.;
McGeorge Camping Center Inc., Ashland, Va.; and Media Camping
Center Inc., Media, Pa.
■ Itasca Eastern Region: Camping World RV Sales, Midway, Fla.;
Suncoast RV Inc., Ocala, Fla.; and Barrington Motor Sales, Bartlett, Ill.
In addition, 139 dealers also were honored with Winnebago’s
Circle of Excellence award in recognition of their high customer
satisfaction ratings.
During the meeting, Winnebago also named Matt Ellinger of
Harberson RV-Pasco, Holiday, Fla., as its Peak Performer of the year.
Winnebago created the program in 1999 to recognize “exemplary
dealer sales professionals.” This past year, 585 Winnebago and Itasca
dealership sales personnel were recognized with Peak Performer
status and seven were selected as regional winners.
Four, including Ellinger, earned the right to participate as finalists
in a head-to-head competition. Other finalists were Mike
McMullen, PleasureLand RV, St. Cloud, Minn.; Tom Durell, Mike
Thompson RV, Fountain Valley, Calif.; and Pam Christopher, John
Bleakley RV, Douglasville, Ga.
Kelli Harms, public relations specialist for Winnebago Industries (center),
is joined by Joe Altman (second from left), owner of Carson, Calif.-based
Altman’s Winnebago, and dealership representatives (l-r) Danielle Conley,
Darylin VanWagner and Michael Burke.
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C O A C H M A N I N D U S T R I E S
Coachmen Unveils New ‘Avant-Garde’ Interior
Treatment, First Tag-Axle Class A to Dealers
European-flavored Avant-garde interiors place a
premium on flowing curves and such features as
halogen lighting and fold-down kitchen faucets.
Company Also
Resurrects Shasta
Nameplate With
Introduction of
New Airflyte
Lightweight
Towable
epresentatives from about 90 RV dealerships
were among the 265 people who attended
Coachmen Industries Inc.’s 2009 product
unveiling June 2-4 at the Pepper Mill Resort, Spa
and Casino in Reno, Nevada.
“The meeting went very well,” said Bill Martin,
Coachmen RV Group vice president of sales. “The
response to the new product was very good. We
had a whole bunch of changes across the board.”
Chief among them was the introduction of a
European-inspired “Avant-garde” interior design
package in the rear-diesel Sportscoach and front
gas-powered Mirada Class A motorhome lines,
along with the Prism, Condor and Leprechaun
Class C’s. Also on display was the reintroduction of the Shasta brand travel trailer and a
new tag-axle Sportscoach floorplan.
Coachmen CEO Richard Lavers,
President Michael R. Terlep, Martin
and Coachmen product managers
spoke at a general session June 2.
Lavers addressed the issues of $4
per gallon fuel, the negative tone of
the presidential election, the declin-
R
ing value of the dollar and continued speculation
about a national recession.
In response to a Wall Street Journal article that
suggested Coachmen was facing financial difficulties, Laver assured dealers that Coachmen is a
financially strong, stable company.
Among products shown to dealers:
■ The new Avant-garde interior treatment was
displayed in a 31-foot gas-powered Mirada Class A
motorhome. The European-inspired living quarters feature
cur ved
Tax-axle Sportcoach Legend
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■ The 45-foot Sportscoach Legend, Coachmen’s first
tag-axle. Built on a 44,600-pound GVWR Freightliner
XC chassis mated to a 500-hp Cummins ISM engine,
the Legend is the third
floorplan in the Sportscoach
series. With mirrored ceilings, solid-surface countertops, radius cabinet doors
and tile floors, the Legend
retails from $307,510. 6
While the Shasta carries ‘60s styling cues —
note the “wings” — it boasts contemporary
Avant-garde interior.
BRAKEBUDDY, CIRCLE 108 ON READER SERVICE CARD
cabinetry and ceiling accents, 26-inch LCD TVs with a
nearly 160-degree viewing angle, fold-down kitchen
faucets, vessel bathroom basins, halogen lighting and
extra storage throughout,
including storage slots above
the overhead cabinets.
“The objective was to
‘change the game’ through a
coach with unprecedented
styling, practical innovations,
thoughtful living amenities and
friendly and appealing style
lines,” Terlep said.
The entry-level, Mirada
Avant-garde floorplan, with
laminated-fiberglass sidewalls,
features new front and rear
caps with a full-body paint option for an MSRP of
$102,893.
■ Coachmen brought back the retired Shasta
nameplate with the debut of a diminutive 17-foot
Shasta Airflyte lightweight travel trailer. “It’s got
some of the classic lines with all of the modern
amenities,” Martin said. Featuring the new Avantgarde interior with very few 90-degree angles, the
laminated-fiberglass-and-aluminum Airflyte with a
dry weight of 2,482 pounds features 77-inch ceilings
and a complete wetbath. Retail base price: $20,300.
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NEWS inFOCUS
Shanghai RV & Camping Show
East Meets the Recreational
West: RVIA Leads Exploratory
Trade Mission to China
Members Attend
Shanghai RV Show,
Visit Chinese Manufacturing Plants;
Reciprocal Trip May
Be in Works. ‘I’m
Convinced They Have
No Idea What Camping
is About (in the U.S.),’
Noted RVIA President
Richard Coon.
■
BY BOB ASHLEY
The American delegation included Wilbur Bontrager, chairman of Jayco Inc. (third from left) and Richard Coon,
RVIA president (fifth from left). The trade mission included visits to manufacturers in China’s evolving RV market.
An 18-member trade mission to China
May 16-22 led by the Recreational
Vehicle Industry Association (RVIA)
found enthusiastic support for the RV
lifestyle — American style — but
Chinese RV manufacturing
and
campground
industries
that
remain in their
infancy.
“There’s really
not much of an
industry
there
yet,” said Wilbur
Bontrager, chairman of RV manufacturer Jayco Inc.,
Middlebury, Ind. “Certainly there’s a
belief that with a middle class emerging and with a growing upper class,
there could be a future market. But
they have a long way to go.”
The primary purpose of the trip was
to attend the China RV and
Camping Show in Shanghai that
featured Chinese-built RVs
and seminars on American
RVing presented by members of the U.S. contingent.
While in Shanghai the trade
mission — coordinated by the
U.S.
Department
of
Commerce — also
met
with
the
Shanghai Foreign
Both of these coaches were built by Great Wall Motors
in Beijing. Interestingly, while the Class A unit is structured like an American motorhome, there is no passenger seat up front, and there’s a bulkhead behind the
driver. “In China,” noted KOA’s Mike Atkinson, “you’d
probably have a driver for a rig like this.”
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Investment
Commission
and representatives of the
U.S. Department
of Commerce for
briefings on conducting business
in China.
Some of the
group later visited
factories operated by
Zhong-Ou International Group, a manufacturer of Class B and C motorhomes;
specialty vehicle manufacturer System
Equipment Co.; and Higer Bus Co.
Ltd., a manufacturer of vehicles as
diverse as airport shuttles and high-end
buses — the company reportedly
builds 14,000 units a year — which has
built a prototype Class A luxury
motorhome.
Also on the itinerary was a visit to
the facilities of China’s only RVIA member, CenTech Specialty Vehicle Ltd. in
Tianjin, a motorhome and travel trailer
manufacturer that exports the iCamp
travel trailer to the U.S. To conclude
the trip, the entourage visited Great
Wall Motors in Beijing, a manufacturer
of Class A, B and C motorhomes and
specialty vehicles.
Bontrager noted that the Chinese
don’t have the outdoors history that
Americans do, which dates back to the
19th-century wagon trains that opened
the American West. “I don’t think that
kind of experience has existed for
China in many years,” Bontrager said.
While agreeing with Bontrager,
Jeff Porter, president and CEO of
Velvac Inc., New
Berlin, Wis., a
manufacturer of mirrors
for RVs and
Page 27
LEFT: Australian-based
Swagman Motorhomes
expects to export its
Chinese-built Class A to
the U.S. in 2009. BELOW:
Mike Atkinson, KOA
facilities development
manager (left) at KOA
booth at Shanghai show.
commercial vehicles, said a Chinese
market for recreational vehicles could
emerge very quickly if government
officials put their minds to it.
“The issue with Chinese markets is
that things develop very quickly, particularly after the government gets
behind an initiative,” said Porter,
who has made more than a half-dozen
trips to China on behalf
of his company. “For the
Chinese, it’s obviously
another job-creation opportunity, but it also would
create more leisure and
recreational opportunities
for the Chinese people as
well. I think both of those
are priorities for the
Chinese government.”
RVIA President Richard
Coon, who led the trade
mission, said the trip was
useful for the government and business contacts the group made. “We
expanded our understanding of the
main issues and who the players are in
the industry,” Coon said. “We visited
some pretty high-powered companies,
particularly on the auto and bus side.
All of them are interested in getting
into RVs.”
Coon said that there’s a possibility
that RVIA will host a contingent of
Chinese businessmen. “I’m convinced
TOP: U.S. Department of Commerce assisted in
setting up several meetings, including this one
attended by (l-r): Bob Parris of GE Financial;
Craig Kirby, RVIA vice president and general
counsel; and Bruce Hopkins, RVIA vice president
of standards. Other attendees included Gwen
Lyle, an official with the U.S. Embassy (third
from right), Atkinson, and Edward Han of
Synorica Resources. ABOVE: Valvac’s Jeff Porter,
a Higer Bus Co. representative, Parris, Hopkins
and Bontrager examine a Scania chassis at
Higer plant. LEFT: Brian Mccormick of United
Shade, Lippert components’ Scott Mereness
and Ti-Patrice Lavers, sourcing specialist for
Coachmen Industries, tour Higer facility.
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Page 28
LEFT: David Coffin, director of product development for Fleetwood RV,
speaks with representatives of 21RV.com, an RV news resource in
China. RIGHT: Unusual mini-camper built by Great Wall Motors.
“They are a pretty innovative group of people,” Atkinson noted.
they have no idea what camping is
about here,” Coon said.
Mike Atkinson, facilities development
manager for Kampgrounds of America
(Chinese) group, since they have
no working knowledge as to
what camping is. No one
seemed to understand the
(camping) experience. The concept of recreation is foreign to
all the people I spoke with.
“Camping and campgrounds
“ We expanded our understanding of the main
issues and who the players are in the industry.
We visited some pretty high-powered companies,
particularly on the auto and bus side. All of
them are interested in getting into RVs.”
– Richard Coon, RVIA President
Inc., (KOA) Billings, Mont., who manned
a booth at the Shanghai RV show with
RVIA and Gary Enyart from Cummins
Power Generation, Minneapolis, Minn.,
found people attending the show enthusiastic about camping but uninformed
regarding the lifestyle.
In fact, trailers currently are prohibited on China’s highways, as evidenced
by an exhibitor at the show who was
stopped by police as he was transporting a travel trailer to the exhibit hall. “It’s
all so foreign to them,” said Bontrager.
“And I’m not sure the average vehicle
manufacturer in China would even have
towing a trailer in mind when they’re
building their cars and trucks.”
“There are a number of groups in
China that truly believe that camping
is the wave of the future,” Atkinson
wrote in a journal he kept during
the trip. “Overwhelming issues
plague this visionary
28
are viewed as the necessary
evils to produce RVs and not
as potential profit centers,”
he added. “The RV industry
is seen as a subset of the
auto industry — and camping as a subset of that. That
is unlike the U.S., where they
all are separate industries.”
Craig Kirby, RVIA vice
president and general counsel, said there was widespread agreement among
business executives and
government officials the
group met with that the barriers to
developing a strong RV industry in
China should be removed.
“Government and business officials
have great expectations for RVs in
China,” Kirby said. “They are still
trying to determine what
the market is
going to be
in China. It
could
be
very different
than here in
the United
States.” 6
ABOVE: This isn’t an RV, but a custom-built
tour bus coming off the Higer Bus Co. assembly
line. BELOW: Plush living quarters inside a
Chinese-built Kinglong Class A appear on par
with production-based American coaches.
FAR LEFT: iCamp trailer.
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029-RVB0807 PG 29 TOP 50 C
6/12/08
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Page 29
CALL FOR ENTRIES
RV Business magazine, along with our
2008 Leadership Alliance members, are
proud to introduce the 2008 Top 50
Awards Program honoring those RV
dealers that are unsurpassed in
overall busines operations …
a program destined to become the
most coveted, national RV award.
Visit www.rvbusiness.com to…
CALL THEM THE LEADERS
THE INNOVATORS
THE STANDARD BEARERS
THE INDUSTRY’S BEST
And we’ll call them
RV Business
magazine’s Top 50
DOES THIS SOUND LIKE A DEALER YOU KNOW?
Does the dealer put as much emphasis on
customer service as it does sales?
Does the dealer value technician efficiency?
Does the dealer invest in its future by training employees?
Does the dealer have a solid plan for success?
Does the dealer strive to be better than the competition?
IF SO, WE WANT TO KNOW ABOUT IT!
View our Frequently Asked Question page
Nominate Dealers
Download the official Top 50 Application
Reserve your spot at the Top 50 Dealer
Awards Dinner & Celebration, Sept. 24, 2008
during the RV Dealers International
Convention & Expo in Las Vegas
RV Business and the
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O E M
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S H O W C A S E
Forest River Inc.
Founded by Industry Veteran
Peter J. Liegl in 1996, this
Elkhart, Ind.-based Company
Grew to Become the No. 2
RV Manufacturer Before
its Purchase by Berkshire
Hathaway Inc. in 2005.
Today, with Liegl Still at the
Helm, the Decentralized Firm
Builds Towable and Motorized
RVs at 62 Facilities in Five
States — and is Approaching
$2 Billion in Annual Sales.
P
eter J. Liegl has preached a simple and consistent sermon since forming RV
manufacturer Forest River Inc. a dozen years ago and building the Elkhart,
Ind., company into an RV industry powerhouse: Sell the best products at
the best prices and then provide quality service for them.
Of course, it’s not an unfamiliar mantra among RV manufacturers — but few
have built a dynamic company that sells nearly $2 billion in product a year.
“We still have the same philosophy as when we started out,” said Liegl, 64. “If
you stacked up everybody’s products and looked at them in-depth and looked at
what you’re getting for a certain price, somebody’s going to be best and someone’s
going be to worst. We expect to be the best. We pay more attention to detail, we
work harder and we’ve got better, experienced people.”
Liegl founded Forest River in 1996, two years after he was dismissed as
president of publicly owned Cobra Industries Inc., which soon went through
bankruptcy. Two years later, Liegl, who got his start at Coachmen Industries Inc.,
purchased the remnants of Cobra to form Forest River.
Before a decade was out, Liegl had turned Forest River into the No. 2 RV manufacturer in the U.S. In July 2005 he sold privately owned Forest River to
legendary investor Warren Buffett’s Berkshire Hathaway Inc., Omaha, Neb.,
which in 2007 had $118 billion in revenue from such diversified subsidiaries as
GEICO, Dairy Queen, Helzberg Diamonds and World Book encyclopedia.
Buffet made an offer to buy Forest River during a telephone conversation with
Liegl just one day after he learned about the company. In Berkshire Hathaway
Forest River CEO Peter Liegl (right) with Mike Williams,
plant manager for the company’s Sunseeker and Lexington
divisions, and Jeff Babcock, head of sales and marketing.
V I T A L
S T A T I S T I C S
COMPANY: Forest River Inc.
(www.forestriverinc.com)
PARENT COMPANY: Berkshire Hathaway Inc.
LOCATION: Elkhart, Ind.
FOUNDED: 1996
KEY PERSONNEL: Peter J. Liegl, CEO; Joe Greenlee,
CFO; Jeff Babcock, sales and marketing; Jeff Rowe,
human resources; Gary Chamberlin, vendor relations;
Doug Gaeddert, general manager (GM), travel trailers
and fifth-wheels; Don Gunden, GM lightweight travel
trailers and folding camping trailers; Art Coven, GM
Class A gas motorhomes; John Cunningham, GM Class
A diesel pushers; Tim Graber, GM minimotorhomes;
Jim Foltz, GM park models; Ty Miller, GM California;
Tom Martin, GM Oregon; George Lot, GM cargo trailers;
Tom McCuddy, GM marine
PRIMARY PRODUCTS: Class A, B and C
motorhomes, cargo trailers, buses and pontoon boats.
PHYSICAL FACILITIES: 62 locations in Indiana,
Michigan, California, Oregon and Texas
EMPLOYEES: 6,500
2007 REVENUE: $2 billion.
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B O B
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A S H L E Y
Page 31
■
Inc.’s 2005 annual report, Buffett said, “Pete is a remarkable entrepreneur. You can be sure that I won’t be telling
Pete how to manage his operation.”
During the intervening period, Buffett has kept that
promise, communicating with Liegl no more than once
a year — “If that,” Liegl said. “I see him at the stockholders’ meeting. We just had one (in April).” The
annual meeting this year attracted some 26,000
investors, some of whom paid more than $150,000 per
share of Berkshire Hathaway stock.
By Liegl’s account, Forest River’s annual sales have
risen by about $400 million to just under $2 billion since
the sale three years ago.
“The advantages of being a public or private company
balance out,” Liegl said. “When we were in the rapid
growing stage, we were private. But to raise capital, it’s
a little more difficult for a private company.”
And even in a soft RV market, Forest River is holding
its own, Liegl reported. “We are bumping $2 billion
(annually) right now,” Liegl said. “We’re a little ahead
this year over last.”
Forest River is highly decentralized, with only about
60 employees in the Elkhart headquarters, most working in accounting and finance. Forest River’s many divisions are run by general managers in the field who
report directly to Liegl and share in the financial success
P H O T O S
B Y
S H A W N
S P E N C E
ABOVE: The Berkshire, a new Class A diesel pusher available in 36- to 39foot lengths in triple or quad-slideout floorplans, was named to recognize
Forest River’s parent company, Berkshire Hathaway Inc. BELOW: Art Colvin
(left) GM for the Cardinal division, with Cardinal division Sales Manager
Tim Miller.
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P R O D U C T
P R O F I L E
As one of the RV industry’s most diversified
manufacturers, Forest River Inc. produces all
classes of RVs, along with cargo trailers, utility
trailers, pontoon and fishing boats, light- and
medium-duty shuttle buses and portable offices.
The company’s Hart Housing subsidiary also
builds manufactured homes, while another subsidiary, Priority One Financial Services Inc., provides finance and insurance services enabling
RV dealers to outsource their F&I functions.
In the folding camping trailer-, travel trailer- and
fifth-wheel arenas, Forest River brands include
CARDINAL, CEDAR CREEK , CHEROKEE ,
DAY DREAMER , SALEM , SANDPIPER ,
SIERRA , V-CROSS , WILDCAT , FLAGSTAFF ,
ROCKWOOD and SURVEYOR .
Its SURV brands include XLR , WOLF PACK ,
SHOCKWAVE , SANDSTORM , WILDWOOD
and WORK and PLAY .
Forest River's No. 1 fifth-wheel brand is the
WILDCAT , a mid-profile, lightweight fiver that
has been in the top three for retail registrations
for the last five years. Available in 24- to 32-foot
lengths with up to three slideouts, Wildcat’s
base MSRP is $23,995.
Motorized RVs include the Class A gas
GEORGETOWN ; diesel pushers BERKSHIRE ,
CHARLESTON and TSUNAMI ; and
FORESTER, SUNSEEKER and LEXINGTON
Class C lines.
Forest River’s Class A gas Georgetown series
features the company's first motorized SURV,
the 36-foot GEORGETOWN GTX Toy Hauler.
Built standard on Ford or Workhorse chassis,
each with 22,000-pound GVWRs, Georgetown
will soon be available in a front-engine diesel
version on Freightliner’s FRED chassis.
Georgetown is available in 11 floorplans with up
to three slideouts, for retail prices that range
from $87,000 to $137,500 well equipped.
Introduced in the Class A gas Georgetown series,
the GTX is the company’s first motorized SURV.
of the company. “We have GMs who take a certain pride of authorship at each
division,” he said.
With some oversight from headquarters, Forest River divisions make their own
buying decisions. “I don’t personally believe in centralized purchasing,” Liegl said.
“If we have 15 or 20 people buying supplies, it seems like we are going to buy better than if we only had one person here buying. One person could become skewed.”
“There is some synergism in purchasing,” he continued. “If you look at all the
tires we buy for something like 135,000 units a year, that’s a lot of tires. That passes on to all of our divisions. That's our mentality. Same thing with wood, aluminum and anything else.”
Although Forest River is the No. 1 manufacturer of cargo trailers and No. 2 in
shuttle buses, RVs make up three-quarters of the company’s revenues — 75% to
80% of which are built in northern Indiana. The company has, however, established towable RV factories in California and Oregon to overcome high shipping
costs. “With a $200,000 motorhome, it’s different,” Liegl said. “Trailers need to be
closer to their market.”
Forest River’s towables range from entry-level folding camping trailers to highend fifth-wheels. “Our strength is towables,” Liegl said. “We had a game plan to
have product in each category.”
This year through March the Elkhart-based corporation posted a 16.3% market share in towables for a No. 2 ranking and a 5.7% motorized share for a 7th
place ranking, according to
Grand Rapids, Michigan-
Named to recognize Forest River Inc.’s parent
company, Berkshire Hathaway Inc., the Elkhart,
Ind., manufacturer’s newest motorhome is the
BERKSHIRE diesel pusher, available in 36- to
39-foot lengths with triple- or quad-slideout
floorplans. Built on a 28,000-pound GVWR
Freightliner XCR raised-rail chassis with a 300hp Cummins ISB diesel engine and standard
full-body paint, Berkshire retails from $200,155.
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“ We still have the same philosophy
as when we started out. If you stacked
up everybody’s products and looked
at them in-depth and looked at what
you’re getting for a certain price,
somebody’s going to be best and
someone’s going be to worst. We
expect to be the best.”
— Peter Liegl, CEO, Forest River Inc.
based Statistical Surveys Inc.
Consequently, growth in motorhomes remains a
prime objective. “We’ve got a long ways to go (in motorized),” Liegl said. “It takes a little longer (to build
motorized market share). We are not in all the product
lines that we could be.
“We are going OK in Class A gas, and in diesels, we’ve
made it around the corner. We are gaining momentum
every day.”
Despite Forest River’s explosive growth during the last
12 years, Liegl describes the company as “conservative”
in many ways. “We don’t believe that we should go around
base two until we go through base one,” he said. “Until
we have our act together in a particular situation, there’s
no sense expanding it. That’s
our approach.”
Liegl, with typical candor,
terms the RV industry’s current downturn as “a godsend” for Forest River. “Let’s
say the industry shrunk in
half,” he said. “That means
there’s still going to be half
left, and somebody’s going to
get that half, which is still far
more than I can produce. But
I’m going to get my fair
Wildcat
share. We might have to
lightweight
work a little longer and hardfifth-wheeler
er, but we are going to get it.”
Liegl said it’s already too
late to be making adjust-
ments to cope with the soft RV markets. “It’s not what’s
happening today,” he said. “It’s what you did last week
and the week before that and last month that is going to
determine your results today.”
All in all, Liegl expects that the RV market, despite current setbacks, will recover in short order. “It’s a very cautious individual who buys RVs,” Liegl said. “That doesn’t
mean they aren’t going to buy. They might buy something
a little less than what they would if the economy was
blowing and growing, but this is short term. I’m very confident of that.
“I don’t know why (people are worried). When I say
short-term, this year is going to be tough as far as the
economy goes. But that’s short term.” 6
Lisa Creager performs final inspection
on towable units in Elkhart.
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034-RVB_0807_LO_SURVs
The
6/16/08
4:16 PM
Page 34
Rise
of the
Machine-toting
Machines
■ B Y
B O B A S H L E Y
SPORT-UTILITY
RECREATIONAL
VEHICLES Allow
Outdoor Enthusiasts
to Carry Their Toys
With Them — But as
this West Coast-Spawned
Trend Sweeps Eastward,
Some Wonder if the
Market Already is OverSaturated.
With an Estimated 75
Separate SURV Towable
and Motorized Brands,
There is No Shortage Of
Manufacturers Building
on the Theme
34
Brian Donat, general manager
of KZ RV’s toy-hauler division, with
one of the company’s Inferno fifth-wheels
I
f competition is what keeps American
business and the RV industry robust,
it also is what has been responsible
for the spate of companies building
versatile towable and motorized sport
utility recreational vehicles (SURVs).
Indeed, sport utility RVs are the latest
product twist to emerge from out of
nowhere to become a standard offering of
the U.S. recreational vehicle arena, the
first of this magnitude since the explosion of slideout room compartments.
As such, almost all major towable manufacturers today offer SURVs, also known
as “toy haulers” and “ramp trailers” —
some as full product lines and others as
floorplans within a traditional RV series
— and the number of manufacturers
building motorized SURVs also is growing, although not as rapidly. “Most dealers of any size whatsoever will at least
carry a toy hauler representation on their
lots,” said Jim Jacobs, vice president of
sales and marketing for Jayco Inc.,
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LEFT: Dutch Aire diesel pusher and gas-powered Canyon
Star, from Newmar Corp.
Middlebury, Inc., manufacturer of Recon ZX and
Octane ZX SURV travel
trailers and fifth-wheels
and the Seneca ZX toy
hauler minimotorhome.
“Motorized, though, is a
very, very small niche.
Generally, the market is
dominated by the West
Coast, and specifically by
Southern California.”
The West Coast market
developed
primarily
around the California and
Arizona desert playgrounds, where off-road
types in four-wheelers,
sand
buggies
and
sandrails — extremely
lightweight, high-powered machines usually offering little more than seats, controls,
engine and sophisticated suspensions
wrapped in a tubular, “dragster”-type
framework sans body panels — could roam
nearly unfettered. To transport their “toys,”
those looking for desert recreation found
that RVs with separate garages or open
floorplans extending the storage area into
the living area of the coach were the most
convenient.
As the trend spread east, RVers discovered many other uses for the garage
area, from tailgating at football
games to transporting their
pets to dog shows to
collecting antiques, to
name just a few.
Patrick Brady, publisher of
LEFT and ABOVE: Monaco Coach Corp. offers its Safari
Compression motorhome on a Custom Chassis Products
1
LLC chassis. All models come with a 12 ⁄2-foot-deep
garage. Despite committing nearly one-third of its length
to the toy section, the coach interior maintains full complement of comforts. BELOW: Coachmen’s entry-level
Adrenaline Blast is available in four lengths, from 18
feet, nine inches to 29 feet, one inch. Power Plus
Package, available on the larger models, includes a
5.5kW generator and 30-gallon fuel station. BOTTOM:
Jayco Octane ZX T29M includes a queen bed loft area
above a portion of the 12-foot-deep garage.
Toyhauler magazine, said that innovation
in both motorized and towable SURVs will
sustain the segment even during the soft
economy with which the RV industry is
currently dealing.
“The trend is that there continues to be
innovation — separate garages, double
bunks in the back, lofts. With the number
of beds in some of them, you can sleep
10 people.”
Brady noted that when Toyhauler was
first published in 2003, there were only 12
manufacturers building sport utility RVs.
“Essentially, there are about 75 now, and
that doesn’t include the ‘specialty-race
trailer’ category,” Brady said. “Every time I
think they’ve invented just about everything
they can, something else comes along.”
Among the motorized innovators is
Newmar Inc., Nappanee, Ind., which has
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Most manufacturers design the garage area for double-duty, offering up varying degrees of creature comforts when not housing motorcycles, ATVS and the
like. The Scorpion Edition of Damon’s Outlaw Class A
can be ordered with high-end cabinetry and a folddown Murphy bed, for example, while the Cherokee
Wold Pack trailer fills the space with foldaway sofas
and a removable dining table.
sis in its All Star Class A diesel motorhome
to experiment with several rear configurations, including side- and rear-loading
garages and opposing garage slideouts
designed to carry motorcycles. The company also builds the X-Aire fifth-wheel SURV
and, for 2009, added a toy-hauler floorplan
to the 2009 Canyon Star gas-powered Class
A motorhome on a 22,000-pound GVWR
Ford F-53 chassis with a $136,626 MSRP.
“The key to a motorized toy hauler is (to
relocate) the (RV) engine cage from the
back of the coach, which allows you to
build a ramp with a good angle into the
coach,” said John Sammut, Newmar vice
president of sales and marketing.
Retail towable toy-hauler numbers in
36
Page 36
2007 of 30,252 were
13% of the total towable
market
last
year,
although registrations
declined from 31,023 in
2006, according to Tom
Walworth, president of
Statistical Surveys Inc.,
Grand Rapids, Mich. Yet,
in California and Arizona
— two prime desert
playgrounds — toy
haulers still accounted
for 37.3% of total toy
hauler sales last year,
Walworth added.
“There are two distinct
user groups — the West
Coast people
who use them
in a desert
environment,
and then the
rest of the
country that is
using them for
a number of
different
t h i ng s, ”
Walworth said.
Retail market
share leaders in
2007 were the
combined subsidiaries of Thor
Industries Inc.,
Jackson Center, Ohio, with a 28.9% of sales
followed by Weekend Warrior Trailers, Perris,
Calif., with 21.2%, according to Walworth.
Wholesale shipments of “specialty trailers” from manufacturers’ reports collected
by the Recreation Vehicle Industry
Association (RVIA)
showed a similar
decline as dealers
adjusted
their
inventories, falling
from 24,000 in
2006 to 21,500
last year (RVIA
does not keep
track of motorized
toy haulers).
“In the most
recent past, the
numbers
have
plateaued in our
reports,”
said
Robert M. “Mac”
Bryan, RVIA vice
president of admin-
istration. “While there are more players, we
don’t see the shipment numbers increasing.”
Indeed, Southern California’s preeminent
SURV manufacturer — Weekend Warrior
Trailers Inc., a company credited with fueling the SURV trend in the 1990s — is on
pace to see sales drop from 5,600 units in
2006 to 3,500 this year, which would
account for much of the decline in the
SURV segment in the soft RV market.
But that’s OK, professes Weekend Warrior
President Mark Warmoth, who founded the
manufacturer in 1988. “It’s a business that I
can now get my hands around better than a
growth business,” said Warmoth, whose
company and subsidiaries build Weekend
Warrior, Weekend Warrior Superlite, Weekend
Warrior Class C, Xtreme and Rage’n XL SURVs.
“I’m anxious to shrink the company. It was a
little overbuilt. Now I can spend more time
refining my coaches.”
Despite the loss in sales — due primarily to the disruption of the Southern
California housing market — Warmoth said
the national toy-hauler market is far from
saturated.
“The market is off in southern California
because the ‘fantasy money’ dried up,”
Warmoth said. “When the capital gains tax
laws changed, people were able to take the
equity out of their homes and they went
out and bought the shiniest toys they could
find — Harleys and ATVs, things like that.
We were at the right place at the right time.
That’s over now, but this whole thing is
moving east.”
Bill Martin, vice president of sales for
Coachmen RV Co. Inc., Middlebury, Ind.,
whose entry-level Blast travel trailer and
mid-priced Surge travel trailer and fifthwheel series are built in a factory in
Fitzgerald, Ga., said the toy-hauler crowd is
Pablo Carmona, director of
manufacturing, and Bob
Thompson, president of Thor
California, at the company’s
Moreno Valley, Calif., production facility which went to
three dedicated lines allowing
workers to specialize on their
product area.
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different than the emerging Baby Boomer
market that is said to be the RV industry’s
meat-and-potatoes. “Toy haulers are a family-oriented market for people with kids,”
Martin said. “But people are also finding
them useful for their hobbies.”
The same is true for motorized toy
haulers, said Bill Fenech, president of Thor
subsidiary Damon Motor Coach, Elkhart,
which introduced its first gasoline-powered
toy hauler, the wedge-shaped Outlaw retailing from $121,688, for the 2007 model year.
“People want a multi-use RV,” Fenech
said. “Outlaw is a full-sized motorhome
with a 10- to 12-foot garage that can be
used for many things.”
In a concession to escalating fuel prices,
Fenech said Outlaw also will be offered in
2009 on the Freightliner front-engine diesel
FRED chassis.
Still, Fenech sees new motorized toyhauler entries from builders such as Monaco
Coach Corp., Coburg, Ore., and Gulf Stream
Coach Inc., Nappanee, Ind., and some of
the so-called “Super Class C” units from
companies like Haulmark Industries Inc.,
Bristol, Ind., Optima Industries LLC,
Eastman, Ga., and Silver Crown LLC, White
Pigeon, Mich., as eating up portions of a
small pie. “We will continue to see some
growth,” Fenech predicted. “Versatility and
usage options are critical, but the pie is
only so big.”
In a tongue-in-cheek nod to Damon’s
Outlaw, Gulf Stream for the 2008 model
year introduced the Class A gas-powered
Bounty Hunter toy hauler with a 16-footdeep garage to complement its extensive
Wide Open, Track and Trail, Matrix and GForce towable SURVs.
“Motorized toy haulers are a viable mar-
Go To:
Page 37
ket, but there is limited
volume and just a lot of
manufacturers competing
for that customer,” said
Gulf
Stream
Vice
President Claude Donati.
“The key has to be the
garage. It needs to be
extremely large and the
units have to have a
large towing capacity.”
Gulf Stream also offers toy-hauler floorplans in its front-engine diesel Crescendo
and the “Super C” Gladiator minimotorhome
on a 25,500-pound GVWR International
Harvester VT 365 chassis with a 14-footdeep garage
Donati suggested the towable market is
too fragmented for any one company other
than Weekend Warrior to get much traction.
“The market is inundated with manufacturers and the category hasn’t grown much,”
he noted. “A lot of companies are splitting
the market that used
to
be
Weekend
Warrior’s, primarily.”
Is the toy hauler
market saturated?
“With
everybody
jumping in as they
have, I think we are
there,” said Bob
Rogers,
Fleetwood
Industries Inc.’s travel
trailer division product
marketing manager. “I
think you will find
some of the smaller
guys who aren’t as
dedicated as we are
will probably drop off.”
.com
TOP LEFT and TOP: Forest River offers several towable toy-hauler lines, including the Shockwave in
both fifth-wheel and travel-trailer versions. The
company recently debuted the Georgetown GTX, a
gas-powered Class A garage coach.
ABOVE: David Endres, director of operations for
Carson Trailer, with a Fun Runner SB232 that features a Monterey Mist interior.
BELOW: Peterson Industries Inc.’s Wild Cargo fifthwheel is a high-end unit directed at a customer base
of 55 (years) and up. According to company president Bryan Tillet, “When you shut the door into the
garage, you can’t even tell that you are in a toy
hauler.”
User Guide
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You
Should
Rent
RV’s!
6 Reasons To Be In
The Rental Business
• Generate Additional
Positive Cash Flow
• Create Your Own Clean
Used Sales Inventory
• Introduce Potential
Customers To The RV
Lifestyle
• Provide A Service Other
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• Build Interest In Your
Dealership With A Younger
Customer Base
• RV Rentals Drive Sales
Page 38
Gas-powered Gulf Stream Bounty Hunter offers enthusiasts a 16-foot-deep garage.
Fleetwood introduced its first SURV
series, the top-of-the-line Gearbox, in
2002. Since, the Riverside, Calif.-based
manufacturer has added the entry-level
Redline travel trailer and fifth-wheel, the
half-ton-towable Nitrous travel trailer and
the Formula fifth-wheel.
“Lots of great derivative have grown out
of this market,” Rogers said, pointing out
that the SURV market is relatively young.
In a twist on motorized toy haulers,
Fleetwood at the 2006 Louisville Show
introduced the X2 concept package — a 36foot Terra/Fiesta Class A gas-powered
motorhome decked out in toy-hauler fashion coupled with a 23-foot Nitrous
Hyperlite SURV. The concept didn’t go anywhere commercially, but is still available for
special order.
Rogers’ view that the market is saturated
with SURVs is not shared by Bill Modisette,
president of Carson Trailer
Inc., Gardena, Calif.,
whose entry-level units
continued on page 47
RIGHT: Interior of a
MotoMover fifth-wheel
by New Horizons RV
Corp.
BELOW: Sloped roofline
on
Damon
Motor
Coach’s Scorpion-edition Outlaw allows for a
loft with sleeping for
two above the garage.
MBA Insurance, Since 1978
MBA INSURANCE, CIRCLE 105 ON READER SERVICE CARD
retail from $8,995, and who also builds
cargo and specialty trailers. “I don’t think
there is a saturation point, but the market in
California sure has been killed,” said Carson,
who has cut back his production of towable
toy haulers by 50%. “We are still selling
them, but not nearly in the numbers that
we were.”
Motorized manufacturer Four Winds
International Corp., Elkhart, is credited
with creating the first commercial toy
hauler — the Fun Mover Class C motorhome
— after building a vehicle to carry cameramen to shoot the torch relay for the 1996
Summer Olympics in Atlanta, Ga. Most
recently, Four Winds has developed a crewcab floorplan in the Fun Mover to seat four
people and create more cabover sleeping
space and has added SURV floorplans to the
Fun Mover/Hurricane/Windsport Class A
• Insuring
• Motorhomes / Travel
Trailers / Pop-Ups
Call MBA for your rental quote
1-800-622-2201
www.MBAinsurance.net
38
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Page 39
■
S U P P L I E R
BY MIKE KEECH
S H O W C A S E
Banks Power Celebrates a
Half-Century of Horsepower
Founder Gale Banks, Who
Still Serves as President,
Established his Company as
a Perennial Power House.
Its Myriad Products Remain
Popular With RVers Looking
for Performance & Economy
Banks Brake,
for 20041⁄2-’07
Dodge
Cummins
n 1956, while
many teenagers
were contemplating the meaning
of Mad Magazine, Gale Banks was
elbow-deep in grease, passionately
rebuilding the motor in his mother’s
1931 Ford Model A. He was searching
for horsepower, and soon the model A’s
exhaust rumbled with a stronger and
deeper growl. A few years later, in 1958,
Banks sold his first engine, a Studebaker
V8-based stock-block Indianapolis
Racing Engine assembled for a streetdriven ’32 Plymouth coupe. Sixteenyear-old Banks did the complete engine
swap for the grand sum of $1,100. His
innate understanding of internal combustion motors and hands-on success
soon granted him a “pit pass” into the
mainstream of California’s growing
competition motor-building business.
In the years since, Banks’ creative
touch has run the horsepower gamut
from motorhome power systems to turbocharged racing boats. His successes on
I
and off timed courses are too numerous
to mention and his reputation for having
a deep understanding of diesel turbocharging systems is unquestionable.
Banks’ amassed expertise and capabilities, gleaned throughout the company’s
50-year journey, have also earned him
the reputation of being the “go to” guy
for many major automakers and truck
builders — among them Chevrolet,
GMC, Buick, Volvo and Pontiac.
Banks’ first product for the RV
market, introduced in 1987, was the
PowerPack System for Chevy 454 parts in-house. Complete control over
cid V8-powered gasoline Class A manufacturing also gives Banks the
motorhomes. The company continues opportunity to refine existing constructo manufacture the popular package — tion processes and improve products.
designed to optimize engine airflow,
Specifically, this quality-oriented
horsepower, torque, and efficiency — process led to advances like ultra-thick
for Ford and GM gasoline flanges for the company’s stainless
motorhomes and Cummins diesel rigs. TorqueTube exhaust manifolds sold in
According to the company, its tuned PowerPack systems. The improved
PowerPack exhaust systems deliver as manifolds are now welded on each side
much as 19% improvement in fuel and then machined to dead flatness.
economy versus stock systems.
According to Banks, generations of
Currently, the Banks Power facilities fabricating expertise — coupled with its
are housed in seven buildings — totaling tight quality control — allow the compa150,000 square feet — spread across an ny to turn out the sleekest, strongest,
11-acre campus setting in Azusa, Calif. and best performing goods in the
The firm produces highly engineered air industry.
intake-, exhaust- and electronic-tuner
First and foremost, however, Banks
systems to optimize performance in a Power is an engineering firm. The
wide array of diesel- and gasoline-fueled mechanical engineering department,
vehicles. Banks continues to serve as staffed with world-class automotive
president of the privately owned enter- experts, designs and tests the latest
prise and likes to describe his now high-performance equipment. Banks
50-year-old (in July) company as a contends ongoing testing ensures
“200-person mom-andpop operation.”
Banks Power does not
use wholesale distribution. Sales for Banks
Power are handled by an
in-house team of reps
that deal directly with
national accounts. These
reps receive outside sales
support from a team of
full-time Banks Power
employees who work
face-to-face with dealers.
Gale Banks, company founder and president, with a few past and
Banks manufactures
present projects at Banks Power headquarters in Azusa, Calif.
most of its performance
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Page 40
LEFT: Banks engineers initially
develop new components using
state-of-the-art computer software,
then test the products with a DynaFact onboard computer — proprietary laboratory-quality data-gathering equipment developed by the
company. BELOW: The manufacturing facility at Banks Power houses
tube-bending, fabrication, welding
and electronics assembly. BOTTOM:
Banks chassis dyno can accommodate a full-size Class A with ease.
unparalleled functionality, product
endurance and quality control.
Sophisticated electronic engineering
technologies are also a part of Banks’
engine-tuning offerings. Its computer
systems engineering department recently
released The Six-Gun Advanced Tuner
and PowerPDA, an electronic tuner
that offers Duramax diesel owners six
change-on-the-fly power levels to
choose from.
In addition to upgrading existing product lines for current-model-year gas and
diesel motorhomes and pickups, Banks
Power has just released three new items:
the Banks Brake (exhaust brake for
20041⁄2 to 2007 Dodge Cummins);
Monster Exhaust (systems for Duramax,
Cummins, and Power Stroke); and the
Banks Ram-Air (intake systems for Ford,
Duramax and Powerstroke).
The company refers to its Banks Brake
as a “total system solution” for exhaust
braking that includes a computerized
brake controller with a SmartLock torque
converter, a transmission and an overdrive
control to optimize braking performance.
It is, noted a Banks representative, the
industry’s quickest and strongest brake
and reduces wear and tear on the truck’s
V I T A L
S T A T I S T I C S
COMPANY: Banks Power
(www.bankspower.com)
LOCATION: Azusa, Calif.
PRIMARY PRODUCTS: high-performance
power systems for diesel- and gasoline-powered
light trucks, SUVs, and motorhomes; exhaust,
turbo, intake, and transmission upgrades;
braking systems
KEY PERSONNEL: “Everyone at Banks is key,”
Gale Banks noted, “and all contribute to each
other’s success.”
EMPLOYEES: 200
FACILITIES: 150,000 square feet
40
wheel brakes. In testing, Banks
personnel found the innovative
exhaust brake capable of delivering more than 200 braking
horsepower — including
achieving 100 braking horsepower in just 70 feet.
The newly introduced
Monster Exhaust systems are
for 6.6L Duramax LMM and
6.4L Power Stroke applications. They are equipped with
Cool Cuff, Banks Power’s
exclusive design for newer
pickups with diesel particulate filters
(DPF); specially designed cooling vents
force air into tailpipe(s) to reduce outgoing exhaust temperature while cutting
backpressure.
Banks’ new Ram-Air Intake Systems
are for the Ford 6.8L V-10, 6.4L
Powerstroke and 6.6L Duramax Class A
applications. During exhaustive testing,
the company found that its system
for the new Ford 6.8L V-10 outflows
stock intakes by up to 60%. Likewise,
it claims its aerodynamic lifetime filter
for the Ford 6.4L Power Stroke allows
greater airflow with less pressure drop,
resulting in a 31% increase in airflow
versus stock units. Its package for the
General Motors 6.6L Duramax is said to
offer a 57% increase in airflow with the
use of huge inlet/outlet openings and
streamlined tub routing.
Looking at the near future of the RV
industry, Banks believes there will be
“a reduction in vehicle mass (weight)
and aerodynamic improvements plus
improved gasoline and diesel efficiency
leading to better mileage with no loss in
performance.
“Further out, I would expect new,
safer, lighter-weight aerodynamic body
construction through the adoption of
totally new body structure and assembly.
I also see a future with hybrid powertrain
usage in a very high percentage of product offerings — and the use of intelligent
powertrain control with selectable
performance and efficiency settings.”
A half-century of service is an incredible feat in any arena. Banks has managed
it by bridging his company’s technical
and manufacturing expertise across several industries. It’s been “a 50-year inventive
quest for product perfection and having
in place the employees capable of such a
journey,” Banks said.
“The road to knowledge is littered with
risk and failure,” he added. “But I’d rather
see a man try and fail than not to try at
all. Intelligent risk equates to success. I
ask, ‘How bold are you?’” 6
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Page 41
of the NEWS
Committee Week
from page 7
CAREFREE OF COLORADO, CIRCLE 110 ON READER SERVICE CARD
come out of this in good shape.”
In a detailed report during the second annual
“Forecast 2009” luncheon on June 10, Richard
Curtin, director of surveys at the University of
Michigan, pointed to mid-2009 as a turning point
for the industry. Curtin forecast that shipments
would total 303,100 units in 2009, down slightly
from his latest projection of 303,700 units this year
– a 14.1% decrease from 353,499 units shipped in
2007 (see related story, page 7 of this issue).
He expects seasonally adjusted shipments to
reach a low point in the first quarter of 2009, but
then sees growth throughout the remainder of the
year, concentrated first in conventional travel trailers, closely followed by motorhomes.
In light of Curtin’s assessment, RVIA’s Go RVing
Coalition and Public Relations Committee are
adopting a proactive, wide-pronged approach to
delivering the industry’s message to consumers. A
key theme that will cross over in advertising efforts
and in story pitches with media is the economy of
RV travel versus other vacation options. That focus
will also be echoed in a new “consumer message”
on the Go RVing website — “Go Affordably, Go
RVing.”
In the Go RVing meeting, it was determined that
creative for the Phase IV “What Will You Discover?”
campaign should extend into 2010 representing the
fifth year for the campaign — breaking the pattern
of three-year runs during previous initiatives.
Gary LaBella, vice president and chief marketing
officer for RVIA, noted the
$2.5 million savings in productions costs per year
while adding that he “was
comfortable” with retaining
the current ads. “They are
still relevant,” LaBella said.
To keep the creative fresh,
Dallas-based advertising
firm The Richards Group
outlined methods of “getting
the biggest bang for the
buck” in the next phase.
Strategy included developing
a broader mix of media,
including more emphasis
on cost-effective “social
media” outlets such as Wade Thompson, president and CEO of Thor Industries Inc. (center), received
YouTube, Instant Messaging the RV industry’s Special Award from RVIA President Richard Coon (left) and
and Facebook, and also Chairman Carl Pfalzgraf.
expanding use of the “smaller-space ads” added to the
California, which is working with RVIA on a conarsenal earlier this year.
sulting basis.
“We do have a strong story to tell,” said LaBella.
During the June 10 luncheon, Coon detailed
“Despite everything that is going on in the econo- the industry’s efforts regarding formaldehyde —
my, our research shows that people are still RVing, including three Harris Interactive surveys gauging
and that RVing continues to be one of the most consumer pulse on the subject — and offered a
affordable travel choices.”
timeline of proactive steps taken by the organizaWhile gas prices and the economy were hot top- tion. “Many of these steps were handled out of
ics during informal discussions, formaldehyde in the public eye,” Coon explained to attendees,
wood products was also addressed.
“but formaldehyde has monopolized a lot of the
“We are briefing and updating all the relevant staff resources and is an issue we will continue
committees,” said Bob Feldman, CEO and manag- to deal with.”
ing partner of Feldman & Partners, Los Angeles,
continued on page 43
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Page 42
A D V E R T I S E R S ’
I N D E X
FOR ADDITIONAL INFORMATION on products and services advertised in this issue, circle the number on the
attached Reader Service card corresponding to the number of the company that interests you, and mail.
RS# Advertiser
111
112
108
109
110
DIGITAL ANTENNA, CIRCLE 135 ON READER SERVICE CARD
119
114
135
107
113
105
104
116
103
137
102
101
143
Pg.#
B W Trailer Hitches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
BrakeBuddy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
Carefree of Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
Coach Glass Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
Coach Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Digital Antenna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Freightliner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
GE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
Maxx Air Vent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
MBA Insurance, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Mito Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Monaco Coach Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Onan Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
Pennsylvania RV and Camping Association . . . . . . . . . . . . . . . . . . . . .42
Roadmaster, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
Texas RV Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
TrailManor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
PENNSYLVANIA RV & CAMPING, CIRCLE 137 ON READER SERVICE CARD
While every effort is made to maintain accuracy and completeness,
last-minute changes may occasionally result in omissions or errrors.
42
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Page 43
of the NEWS
Committee Week
from page 41
The RVIA Board of Directors set an effective
date at its June 12 meeting in Washington, D.C.
for member manufacturers to begin using wood
products that meet the California Air Resource
Board (CARB) formaldehyde emission levels.
As a condition of association membership, RV
manufacturers must build their units for sale in
all 50 states using CARB compliant wood by
January 1, 2009 and CARB certified wood
by July 1, 2010.
Curtin Foresees Slow Recovery in ’09
While prefacing his industry forecast for the
coming year, Curtin reeled off the list of adverse
variables weighing down RV sales and identified
“four crises” currently at play in the nation’s economy — housing, credit, fuel and food prices, and
consumer confidence.
“These crises are not over,” Curtin said, adding
that the combined effects were causing consumers to “spend more on necessities, and less
on other things.”
As noted, Curtin feels that mood will continue to
weaken sales for the balance of 2008 and continue
into the coming year. “We will see a very slow
recovery in 2009,” he said.
A breakdown of projected shipments by sector
for 2009 versus expected totals for 2008 include:
■ Travel trailer deliveries will rise to 159,300
units in ’09 from 157,400 this year
■ Fifth-wheel shipments will be flat next year,
rising slightly from 74,100 units to 74,400.
■ Class A motorhome wholesale deliveries will
increase 100 units to 23,600 in ’09.
■ Class B motorhome shipments will repeat
2008 totals of 2,400 units
■ Class C motorhome deliveries will increase to
17,500 units next from 16,900 in ‘08
■ Folding camping trailer shipments will incur
another decline in 2009 to 20,000 units from
23,300
■ Truck camper shipment will fall 200 units to
5,900 in 2009
Committee on Excellence Reviews Report
The Committee on Excellence focused on the
40-page report released in April covering the findings and recommendations of five task forces
charged with improving the RV industry’s quality
across the board.
“Each of these task forces have achieved significant findings regarding industrywide quality,” said
committee co-chairman Jim Sheldon, special
assistant to the chairman of Monaco Coach Corp.,
Coburg, Ore.
Recommendations from the report included:
■ Continued emphasis on training spearheaded
by an industry calendar managed by RVDA launched
in May 2007, offering a forum for companies to list
and check on available training programs.
■ Eventual implementation of an electronic system developed by the Motorcycle Industry Council
(MIC) that will allow industry sectors to communicate on a variety of areas, including parts ordering
and warranty claims. Information on the availability
and adoption of the system, which includes the
marine and powers sports industries, is slated for
Spring 2009.
Discussion centered around how to most effectively leverage the task force information. Sheldon
said the focus for the Committee on Excellence
moving forward would be to “keep the report from
falling through the cracks.” He added, “The reaction
has been positive. I think a lot of companies in
every segment will embrace this report as a way to
improve quality.”
Go RVing Looks at Upping Lead Generation
As part of the proposed 2009 Go RVing campaign, The Richards Group is looking at shifting
the focus to lead generation versus building
awareness.
“We’re looking into additional methods to drive
people to the website while also expanding our lead
generation vehicles,” said John Baker of The
Richards Group.
Mitch Shatzen, vice president of RV and marine
marketing for GE Money and chairman of the Goals
and Measurements Committee, noted that one of
the goals for the coming year was to “provide tools
for dealers to capitalize on leads.”
Baker also said the agency was looking into
ways to reshape the industry’s message, again
stressing affordability. As part of that strategy, the
firm was considering supplementing its target market of the “core family” to a better reaching a secondary audience of empty nesters.
Another electronic tool that could become more
prevalent is increased placement of “micro-sites”
that link Go RVing to other “partner sites.”
Public Relations Machine Keeps Rolling
Acknowledging the “tough business environment” facing the industry, the Public Relations
Committee offered members a review of “positive
press” generated by RV staff and Philadelphiabased public relations firm Barton Gilanelli and
Associates over the past year.
B.J. Thompson, president of Osceola, Ind.based B.J Thompson Associates and committee
chairman, noted the wealth of “major media hits,”
highlighted by a feature on the front page of the
New York Times business section, lengthy reports
in USA Today and Time Magazine along with
numerous spots on the nation’s top networks.
Fran Connors with Barton Gilanelli also reported
on the scope of high-profile media that covered last
year’s Louisville Show, led by the top business networks CNBC, Bloomberg and Fox Business.
RVIA staff also outlined the association’s broader electronic presence, including the new “RVIA
Today Express” that had risen to 2,000 subscribers. In addition, a continued emphasis on
research, providing the PR team with credible, positive angles for media, will continue to be a key
component in public relations efforts.
Committee Week Awards and Recognitions
In a June 9 luncheon, three industry professionals were recognized, including:
■ Wade Thompson, chairman, president and
CEO of Jackson Center, Ohio-based builder Thor
Industries Inc., received the industry’s Special
Award.
■ Ed Lee, senior applications engineer for
Marshall Gas Controls Inc., Marshall, Mich., was
presented with the National Education Service
Award.
■ Jerome Hoover, compliance engineer for
manufacturer Monaco Coach Corp., Coburg, Ore.,
received the Distinguished Achievement in RV
Standards award.
As part of Great Outdoors Week, an event
hosted by the American Recreation Council (ARC)
that annually dovetails with Committee Week, U.S.
Secretary of the Interior Dirk Kempthorne was
presented with the 20th Sheldon Coleman Award.
— Dave Barbulesco 6
IN BRIEF
L.A. Auto Museum Showcases
RVing.
The Petersen Automotive
Museum in Los Angeles was scheduled to
unveil its newest exhibit June 28, “From
Autocamps to Airstreams: The Early Road
to Vacationland,” which takes a nostalgic
look at the house cars, travel trailers and
specialized vehicles used by vacationers
during the formative years of motor touring
before World War II. The display, scheduled to run through Feb. 8, 2009, features
vehicles “both popular and obscure,” illustrating their utility by displaying them
loaded with period camping equipment or
hitched to trailers ranging from a pioneering Airstream to one of the earliest production tent trailers known to survive.
Winnebago Tops Canadian Retail
Sales. Winnebago Industries Inc., Forest
City, Iowa, sold the most motorhomes in
Canada last year, according to Statistical
Surveys Inc., Grand Rapids, Mich. For
2007, Winnebago Industries’ Canadian
dealers achieved a 16.7% share of the
combined Class A and C motorhome
market. “We have great Winnebago and
Itasca brand dealer partners in Canada,”
said Roger Martin, Winnebago Industries
vice president of sales and marketing,
“and we’re proud of their efforts in helping
us achieve this honor.”
Supplier Terra Group Restructures
Operations. U.S. Supplier Terra Group
LLC, formerly Nappanee Window,
announced June 5 a restructuring plan to
improve efficiencies in the face of declining sales. The moves will primarily affect
the
company’s
Nappanee
RV
Components division, which supplies
doors and other products to the industry
through its Indiana plants in Goshen and
Nappanee along with facilities in Caldwell,
Idaho, and Riverside, Calif. According to
management, the company will consolidate several lines in all plants to “better utilize the equipment.” It will also implement
layoffs that will affect both administrative
and production workers.
AL-KO Kober Ramps up Idaho
Facility. Germany-based AL-KO Kober
Corp. has opened a new manufacturing
facility in Caldwell, Idaho. AL-KO supplies
axles and brakes for the RV and light-trailer industry from the facility where operations began on May 15. The Idaho facility
comes less than a month after AL-KO purchased RBW Industries Inc. in Chino,
Calif., which manufactures slideout systems, hitches, landing gear, pin boxes,
bed lifts and TV brackets. AL-KO employs
more than 4,500 worldwide. 6
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of the NEWS
Economic Climate
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from page 20
In 2008, for example, 75-80% of the company’s
trailers are “half-ton truck towable,” up from only 2025% last year. “We were probably behind the industry in that, but we caught up fairly quickly,” Eskritt
said. And, while the company only competes with “a
couple of brands” in the under-3,500-pound, ultralight towing category, “We’re looking pretty heavily at
that in the future product area,” he added.
Pilgrim International Inc., Middlebury, Ind., earlier
this year hiked production of its Ultra Lite travel trailers. And Dutchman’s Florea, noting the segment
was “actually growing,” added that these are “not
inexpensive trailers, either.” The company’s two-person T@B “teardrop,” for example, which offers only
port-a-john bathroom accommodation, retails for
$12,000-$18,000. The larger T@DA micro model,
which accommodates a bathroom and shower, runs
about $20,000. “If you were buying RVs by the
pound, they would be prime rib,” Florea said.
Starcraft RV Inc., Topeka, Ind., also is looking for
continued growth in lightweight products. “It’s not a
new market for us; we’ve had a strong presence
there for years,” with lighter weight camping trailers
and expandables, said Don Walters, president and
CEO. “That trend (light weight products) will continue
solid,” he added.
Both Florea and Walters also cited the still-growing
demand for large park models, which outdoor enthusiasts can park by lakes, for example, as alternative
residences. Park models are also very popular in
many Eastern campgrounds, Walters added.
Starcraft, in fact, plans to introduce its first “permanent site park” Destination model to dealers in
July. It will also unveil a new toy hauler product,
which will effectively expand that product range.
Both the new Destination and toy hauler are part of
Starcraft’s plan to introduce “more products that
accommodate different choices of how to recreate,”
Walters said. “The market is changing the way we
look at the future. We’re not looking to be all things to
all people. For us, it’s more a matter of ‘fine-tuning’
what we already have,” he concluded.
Sprinter-diesel based motorhomes represent
growth opportunities for all their manufacturers. As
Airstream’s Wheeler pointed out, the chassis, in limited availability since summer, are now now coming
into supply. “There’s an anticipation that anything
built on a Sprinter chassis will be a bright spot
because of the pent-up demand. Fuel-efficient
motorhomes, including Class B, B-plus and even
Class C’s will (also) be a bright spot for us and other
manufacturers,” he added.
Exchange Rates Help
The dollar’s weakness is also helping some U.S.
RV manufacturers and suppliers.
According to Airstream’s Wheeler, overseas RV
markets — most notably in England, Germany and
Holland — have continued to be much more robust
than in the U.S. “They’re starting to feel credit issues
and the mortgage crisis, but not nearly to the extent
we are. We see a tremendous upside potential there,”
Wheeler said.
Airstream sold less than 100 units overseas, “but
this is only our second year in the market. We’re still
growing awareness. We haven’t been aggressive
marketers there, but that’s starting to change.”
Wheeler believes Airstream can achieve the same
market share overseas as in the U.S., about 0.5% of
all towables and 0.8% of the traditional travel trailer
segment. “I think we can do 200-300 units a year.”
The company builds the shell for its overseas units
in Ohio on a European-spec chassis, which it
imports, adds furniture and wiring, and ships the
units to England, where the appliances are installed.
From there, the units are distributed in England and
continental Europe.
Airstream also has burgeoning manufacturer distributor arrangements in Australia and New Zealand
with Swagman Motorhomes, which is still in its
infancy. “We shipped some base camping trailers.
It’s a small market, but very RV-centric. In general,
price sensitivity is less. Everything costs more over
there,” Wheeler said.
In North America, some U.S. RV manufacturers
also appear to be getting a boost in Class B business
as a result of the strong Canadian dollar undercutting
the competitiveness of some Canadian RV manufacturers, which rely heavily on exports to the U.S.
The U.S. dollar weakness also resulted in
Manchester Tank Co., Franklin, Tenn., a producer of
propane cylinders, tanks and related products, to resource domestically some of the of the products it
previously produced in China for the West Coast.
More importantly, said Bob Richard, company
president, “a lot of the foreign competition (which
the company had) is drying up.” Even though the
Chinese, for example, have largely tied their currency to the dollar and not allowed it to float freely (the
currency is up only 16% in the past two years vs.
the dollar), Chinese competition is “now gone,”
he added.
Meanwhile, with the dollar vs. Euro exchange, he
expects to be selling a lot more products in Europe
and the Middle East ”where we haven’t been able to
compete before.”
Dealer Opportunities
In the down market, some dealers have also been
taking hits.
“We’ve had some shake-outs, and we’ll have
some more,” said Mike Molino, president of the
Recreation Vehicle Dealer Association (RVDA),
Fairfax, Va. The most vulnerable dealers, he added,
are mid- and large-size retailers who over-extended
themselves or “grew beyond their capacity to sustain
themselves. If you have not controlled inventory,
you’ll be in deep trouble,” Molino said.
At last count, there were about 2,780 businesses
in the U.S. which described themselves as RV dealers, though many don’t sell any type of units; they
simply do servicing, Molino pointed out. Overall,
about 26% of the dealers do 80% of the total retail
dollar volume. New data, from a census taken last
year and expected to be released in 2009, will provide
a clearer picture of changing retail landscape.
Tom Nelson, owner of Nelson’s RVs, with stores in
Caldwell and Boise, Idaho, was wrapping up a
record-breaking year last fall, with sales of approximately 1,200 units, when a dealer friend pointed out
the industry was heading for a “perfect storm” of
troublesome events.
“This all happened very quickly. I didn’t know what
to expect. Coming off a record year, I went into the
new year somewhat cautiously,” Nelson said.
Even though his sales are “not down as much as
a lot of my dealer friends,” he plans to continue being
“very, very cautious between now and next spring.”
Nelsen is primarily a towables dealer, though he
also sells motorized Class C’s. He got out of the
Class A business a year ago, feeling “uncomfortable”
with it and wanting to inventory more towables.
A 27-year veteran of the RV business, Nelsen subscribes to the belief that “Good habits are made in
bad times.” That includes tighter expense control and
proper people management.
“This just makes me a better businessman,” he
noted. “Some of us have been through this a number of times, and each time (we’ve) gone through
downturns, we’ve come out the other side very
healthy. In this case, when things get a little better,
the industry and my company may be better for it.”
— Joe Bohn 6
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■
P U B L I C
B Y
B O B
A S H L E Y
D O M A I N
China Ready to Embrace
RVing — But Stateside,
Press Seems Unsure How
U.S. Industry is Faring
K
in the U.S.
Curiously, Zhang’s husband plans to
build a campground in China that
would be like a traditional RV park in
the U.S.
✺
✺
✺
Having the opportunity to search the
Internet each day to keep abreast of
what the newspapers and magazines
are saying about the RV universe, I’ve
had an opportunity to watch as the
general media has picked up on rising
fuel prices as they relate to recreational vehicles.
Depending on the source and location, the anecdotal evidence about the
effects of escalating prices of gas and
diesel on sales and campgrounds is
downright confusing, even contradictory.
Here’s a sample of headlines from
around the country in early June.
■ “RVers adjusting to higher fuel
costs,” St. Catharines (Ontario) Standard.
■ “High Gas Prices Changing Summer Vacation,” The DenverChannel.com,
Denver, Colo.
■ “RV Campgrounds Reap Benefits
of High Gas Prices,” Journal Gazette and
Time-Courier, Charleston, Ill.
■ “Campground Owners Feeling Pinch Of Gas Prices,” WGAL,
Lancaster, Pa.
■ “Gas, Tight Credit Batter RV Sales,”
Rocky Mountain News, Denver.
■ “RV Enthusiasts, Boaters Still
Motoring along,” Peoria (Ill.) Journal Star.
And then there were these two — from
the same day (June 9), but offering diametrically opposite views:
■ “RV Sales Travel Off Course,”
Chicago Tribune.
ROADMASTER, INC., CIRCLE 102 ON READER SERVICE CARD
ritine Zhang, president of United
Recreational
Vehicles
LLC,
Hackensack, N.J., has a unique
perspective on May’s Chinese trade
mission led by the Recreation Vehicle
Industry Association (RVIA).
As an importer of the iCamp, a
diminutive, Chinese-built travel trailer,
hers is the only company — other than a
couple of high-end motorhome manufacturers — selling RVs stateside that
are built outside of North America.
It’s tough, she says, to compete in the
mature American RV market, particularly when the economy is in the doldrums.
“In the current market, we want to go
slow a little bit,” said Zhang, whose husband is Alan Wang, a Chinese entrepreneur whose company, CenTech
Speciality Vehicles Ltd. in Tianjin, builds
the iCamp for export, and is RVIA’s only
Chinese member.
“Our trailers get a lot of attention at
RV shows and from dealers. But sales
haven’t met our expectations because
we didn’t come in at the right time.”
At the same time, in her native China
— where RVing is almost unknown —
she believes there’s great potential for
the building of a vibrant RV industry.
“The RV is a new product to the Chinese
people,” Zhang said. “But China will be
big. RVIA going to China is a great start.
I’m sure the Chinese government will
soon realize it.”
But first there needs to be a foundation for the RV lifestyle in China, which
is as lacking as the units themselves.
There are only a handful of RV campgrounds and, for the most part, RVs
are sited on the property, much like
someone renting a cabin in an RV park
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COACH GLASS INC., CIRCLE 119 ON READER SERVICE CARD
■ “RV Business Doing Well Despite
Rising Fuel Costs,” Quad City Times,
Davenport, Iowa.
See what I mean? What is anyone to
make of these and other similar stories?
On a broad scale, not much, because
few universal truths can be determined
by interviewing a couple of dealers or
RVers in a campground.
What they illustrate, however, is the
up-and-down nature of the RV industry
and the inconsistencies of the national
press. It’s been this way for more than
60 years. What the attention suggests,
though, is that RVing remains an important part of the American lifestyle — and
likely will remain so.
✺
✺
✺
CAMCO, INC., CIRCLE 109 ON READER SERVICE CARD
New federal weight label rules went
into effect in June making it the responsibility of the first-time seller of an RV to
include weight added by accessories and
equipment installed in the dealership ...
The British Columbia-based National
Recreation Vehicle Dealers Assoociation
of Canada (RVDAC) has created a
Facebook page at facebook.com to promote the industry and provide industry
news ... The regional RVDA of Alberta
has hired Dan Merkowsky as its new
executive vice president ... A new buzz
word in the media that I’m already tired of
is “staycation,” a term used to describe
RVers who take their units to local campgrounds rather than spend the money on
fuel to drive somewhere else ... Plans are
under way for the 1st Recreational
Vehicle World Conference, Sept. 4 in
conjunction with Caravan Salon
Dusseldorf 2008 — the world’s largest
RV show, which anticipates drawing
16,000 visitors ... Transportt Designs Inc.,
a manufacturer of highly customized
enclosed trailers and truck conversion
motorhomes in Montoursville, Pa.,
received the Dell/National Federation of
Independent Business (NFIB) Small
Business Excellence Award, for its innovation with technology. 6
RV Business Senior
Editor Bob Ashley is
an Indianapolis-based
freelance writer/ editor
and a 25-year newspaper veteran. He focuses
on the RV industry
and national recreation
issues.
46
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from page 38
sister lines.
“You start with good basics and as time
goes on, you develop different features like
extra storage and towing capacity based on
the overall usage of the coach,” said Dana
Simon, vice president of sales and marketing for the Thor subsidiary. “We’ve tried to
develop our Fun Movers packages to appeal
to a wide variety of people. Some want it to
look like a traditional motorhome, some
want some pep to it.”
Peterson Industries Inc., manufacturer of
luxury Excel fifth-wheels, added the 39-foot
Wild Cargo SURV for the 2008 model year
retailing from $82,505. “We got into the
toy hauler market late,” said Bryan Tillet,
president of the Smith Center, Kan., manufacturer. “We felt the toy hauler was for the
middle-aged and younger buyers who have
quads and dune buggies. We decided that
maybe there is a market for the high-end
toy hauler with a customer base of 55
(years) and up. That buyer is going to have
a Harley or maybe two, and they want to go
touring on their bikes during the day. But
at the end of the day they want to sleep in
an Excel. When you shut the door into the
garage, you can’t even tell that you are in
a toy hauler.”
Tillet said the new coach has sold “surprisingly well.”
“It has outperformed our expectations,”
he said. “I thought we’d just build one or
two and then we’d be done.”
Airstream Inc., Jackson Center, Ohio, also
is looking at the 50-and-up buyer for its new
34-foot Airstream PanAmerica — featuring
an 11-foot-deep garage — that was to go
into production this month. “It’s not going
to appeal to the traditional toy-hauler guy
who wants to take it out to the desert,” said
Airstream President Bob Wheeler. “This guy’s
going to have a Harley or two and will park
his trailer somewhere and ride for a couple
of days. It a great way to haul all your stuff,
particularly if its dirty things that you don’t
want in your living space.”
Wheeler said Airstream also intends to
make the PanAmerica, with an MSRP of
$95,000, adaptable to what customers
want. “We are interested in seeing how
people use it and then we will start designing custom interior applications.” he said.
With an average retail price of $106,000,
MotoMover fifth-wheel SURVs from New
Horizons RV Corp., Junction City, Kan., also
are designed to appeal to older, more affluent buyers, said President Phil Brockenicky.
“They’re hauling bikes, versus four-
RETAIL TRENDS
December ’07: Mid- to Large Dealers Rack Up
Double-Digit Improvements to ’06 Net Profits
This is the financial report for the 12 months ending December 31, 2007. By keeping a lid on expenses, small dealers managed to squeeze out a net profit of .5% of sales for the year, even though total
dealership sales were down by 3% in 2007 — although that profit was off 36% from last year. Midand large-sized dealers fared better in 2007; large dealers earned a net profit of 3.4% of sales, while
middle dealers did even better, recording a net of 3.7% of sales. Both numbers were substantially
better than 2006 (12% and 27%, respectively). .
$1 Million to $5 Million Dealers
DECEMBER YTD
New RV Sales
Used RV Sales
Total Dealership Sales
2007 AVERAGE DEALER
$1,969,196
$475,116
$3,343,772
2006 AVERAGE DEALER
15.6%
19.1%
$2,021,318
$546,874
$3,448,073
15.3%
22.5%
CHANGE
-2.6%
-13.1%
-3.0%
GROSS MARGINS
Total Company GM
$947,916
GM %
28.3%
$962,785
GM %
27.9%
0.4 pts.
Expenses
Personnel Expense
Advertising Expense
Total Expenses
$516,193
$66,237
$929,826
% GM
54.5%
7.0%
98.1%
$517,443
$64,939
$934,173
% GM
53.7%
6.7%
97.0%
0.8 pts.
0.3 pts.
1.1 pts.
Net Profit/Loss
Net Profit % of Sales
$18,091
0.5%
3.0%
-36.8%
1.9%
$28,612
0.8%
$5 Million to $10 Million Dealers
DECEMBER YTD
2007 AVERAGE DEALER
2006 AVERAGE DEALER
14.5%
20.1%
$4,577,438
$1,238,128
$7,421,341
CHANGE
New RV Sales
Used RV Sales
Total Dealership Sales
$4,783,772
$1,299,999
$7,777,714
GROSS MARGINS
Total Company GM
$1,971,705
GM %
25.4%
$1,837,036
GM %
24.8%
0.6 pts.
Expenses
Personnel Expense
Advertising Expense
Total Expenses
$919,092
$120,962
$1,682,994
% GM
46.6%
6.1%
85.4%
$867,926
$119,199
$1,611,370
% GM
47.2%
6.5%
87.7%
-0.6 pts.
-0.4 pts.
-2.3 pts.
Net Profit/Loss
Net Profit % of Sales
$288,711
3.7%
12.3%
27.9%
14.6%
14.4%
19.6%
$225,666
3.0%
4.5%
5.0%
4.8%
$10 Million and Higher Dealers
DECEMBER YTD
New RV Sales
Used RV Sales
Total Dealership Sales
2007 AVERAGE DEALER
$11,660,433
$3,910,423
$19,453,758
13.5%
18.0%
2006 AVERAGE DEALER
$11,578,731
$3,699,129
$18,848,517
CHANGE
13.5%
17.9%
0.7%
5.7%
3.2%
GROSS MARGINS
Total Company GM
$4,515,621
GM %
23.2%
$4,343,245
GM %
23.0%
0.2 pts
Expenses
Personnel Expense
Advertising Expense
Total Expenses
$2,177,961
$262,694
$3,850,836
% GM
48.2%
5.8%
85.3%
$2,107,465
$263,580
$3,751,892
% GM
48.5%
6.1%
86.4%
-0.3 pts.
-0.3 pts.
-1.1 pts.
Net Profit/Loss
Net Profit % of Sales
$664,785
3.4%
13.6%
12.4%
14.7%
$591,353
3.1%
continued on page 49
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C L A S S I F I E D
Page 48
A D V E R T I S I N G
BUSINESSES
FOR SALE
HOLDING TANK
TREATMENT
SOUTH FLORIDA RV PARTS SERVICE
and Mobile. Ideal family operation as is or great
foundation for full dealership. Excellent market.
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provide training. Asking $149K. Call Curtis,
(772) 692-2552.
ALL PRO ODOR ELIMINATOR
HOLDING TANK TREATMENT
Our “all natural green product” removes odors
and does not mess up your TANKS or the
ENVIRONMENT.
www.midlandprobiotics.com 866-329-5565
HELP WANTED
MOTORHOMES
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Immediate openings for experienced RVIA
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plan. Stable work environment. Family-owned,
same location for 26 years. Fax resumé to
(979) 885-1072 or call (979) 885-3554.
CLIFF JONES RV/AUTOWORLD, Sealy TX
ATTENTION DEALERS!
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Nationwide!
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034-RVB_0807_LO_SURVs
SURVs
6/16/08
4:18 PM
from page 47
wheelers, which is what the younger crowd
is taking into the desert,” said Brockenicky,
who reported that SURVs account for more
than 20% of New Horizon retail sales.
“The whole toy hauler trend is about convenience. Our customer has the mindset of
a guy who has worked his whole life and
made some good dollars. Now, he’s going to
go and have some fun and he’s going to
take his toys with him. And in our case, the
living quarters please momma.”
Forest River Inc., the nation’s No. 2 RV
manufacturer, builds a pair of toy-hauleronly towable lines — the XLR and the new
Wave/Sandstorm, which is built in
California specifically for sale on the West
Coast. Forest River also features toy-hauler
floorplans in the traditional Salem/
Wildwood travel trailer and fifth-wheel
lines and the entry-level Georgetown
gas-powered Class A motorhome.
Despite the current soft RV market, Jeff
Babcock, who is in charge of Forest River’s
sales and marketing, said the toy hauler
will continue to grow and become even
more competitive than it is now. “Toy
haulers will be a big part of the market,”
Babcock said. “And other companies are
making it even more competitive.”
One company that left the SURV segment
already is planning a return. Carriage Inc.,
Millersburg, Ind., intends to introduce a
toy-hauler version of its two-year-old,
European-inspired Domani fifth-wheel line
after putting the luxury C-Force series into
mothballs last fall. “We missed the marketing pricing and the looks,” said Don
Emahiser, Carriage vice president of sales
and marketing. “There is a market. But you
have to have the right product. If it’s off,
the buyer is going to go somewhere else
because those people are looking for a
specific sort of flavor.”
And other companies are continuing to
expand. KZ RV LLC added 12,000 square feet
of manufacturing space to its Shipshewana,
Page 49
COMING IN SEPTEMBER!
2008 RV DEALER
DIRECTORY
DEALERS – act now to have your dealership included in
the most comprehensive listing available of RV retailers
throughout the United States and Canada. Please take
a moment to fill out this brief profile, then return it (or
a copy) to the address or fax number at the bottom of the
page. The 2008 RV DEALER DIRECTORY will be published in conjunction with the September edition of
RVBusiness magazine — and your listing is FREE!
Company Name ______________________________________
P.O. Box ____________________________________________
Street Address _______________________________________
City __________________________State_____Zip__________
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Fax Number(s) (
) ______________________________
) ________________________________
Email ______________________________________________
Web Address ________________________________________
Please mark the categories which best describes your dealership.
❑ New Unit Sales
❑ RV Rentals
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❑ Service Center
❑ Retail (Parts and Accessories)
Mail or Fax to:
RV Business Magazine
2008 RV Dealer Directory,
2575 Vista Del Mar Drive, Ventura, CA 93001
Fax: (805) 667-4484
Questions? Please call (805) 667-4383.
Thank you for your time.
Four Winds International Fun Mover Class C. The
Elkhart, Ind., company is credited with creating the
first commercial toy hauler when it built a vehicle
with an open rear “garage” to carry photographers
during the ’96 Olympics’ torch relay.
J U LY
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49
Contents
034-RVB_0807_LO_SURVs
6/16/08
4:18 PM
Ind., factory in January to handle increased
production of the entry-level Sportsman
Sportster, the mid-priced Inferno travel
trailer and fifth-wheel series retailing from
$34,000, and the high-end New Vision travel trailer and fifth-wheel SURVs with MSRPs
that start at $69,000.
KZ General Manager Brian Donati said the
toy-hauler market is the most volatile in
the industry and that companies need to
almost continually shift their product
strategies. “That market runs month-tomonth, not year-to-year,” Donate said. “If
you are not making changes in your product constantly, you’re going to lose out. If
you don’t have the latest, coolest thing,
they are not going to buy your stuff.”
Ed Kinney, vice president of Monaco
Coach Corp., Coburg, Ore., pointed out that
motorized and towable owners are not the
same kind of buyer. Monaco makes the
McKenzie Dune Seeker and Dune Chaser,
Holiday Rambler Black Diamond and Next
Level, and this year introduced the
Compression gas-powered Class A toy hauler
built on a chassis by Custom Chassis
Products LLC (CCP), a joint venture between
Monaco and International Truck Corp.’s
Workhorse Custom Chassis LLC
subsidiary.
“On the motorized side, it’s
a lot of
50
Page 50
people spending time tailgating
at football games or at a racing
venue,” said Kinney. “The towbehind people seem to be headed to the desert to play with
their toys.”
Like Warmoth, Kinney’s opinion
is that the potential for growth in
toy-hauler sales is east of the
Mississippi River. “On the West
Coast, the market is saturated,”
he said. “But in the eastern part
of the country, toy haulers really
are just catching on. That’s where
the opportunity is to grow.”
The top-selling towable SURV
is the Raptor travel trailer and
fifth-wheel series from Keystone
RV Co.’s
Key
Performance
Division. It’s also been in the
top five among all fifth-wheels
for the last three years. “We
have our own little niche and we’ve
worked hard to stay in it,” said Sean
Ryan, Key Performance general manager.
Besides the mid-priced Raptor, retailing
from $44,000, Key Performance Division
also builds the Fuzion fifth-wheel toy
hauler introduced in the 2007 model year,
while other Keystone divisions build
side-loading towable toy-hauler
floorplans in traditional RV
lines that include Cougar,
Sprinter,
Springdale,
Hornet, Outback and
Mountaineer.
“All ramp-trailer
manufacturers will
continue to push
the envelope on
i n no v a t io ns, ”
Ryan said. “What
that will be, I
don’t know.
But you are
TOP LEFT: The popular Raptor toy hauler, from
Keystone RV Co. has been among the top-selling fifth wheels for the last three years. TOP:
Airstream’s PanAmerica “is not going to
appeal to the traditional toy hauler guy who
wants to take it out to the desert,” said company President Bob Wheeler. “This guy’s
going to have a Harley or two and will park his
trailer somewhere and ride for a couple of
days.” ABOVE: Mark Warmoth, Weekend
Warrior founder and president, is credited
with fueling the SURV trend in the 1990s.
LEFT: Gulf Stream Gladiator.
going to see many different things out
there because of the competition as people
try to get a leg up on one another.
“At the same time, you are going to see
fewer production facilities dedicated to
only toy haulers as manufacturers combine
their toy haulers with conventional product on the production line so it doesn’t
have to support the line on its own.” 6
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051-RVB0807 PG 51 CUMMINS
6/12/08
1:55 PM
Page 51
Give Your Towable Customers
Full Genset Power In Minutes.
Introducing
JuiceBox™
Now, trailers and fifth wheels can have a full 4,000 watts of power with
the space-saving JuiceBox.™ No special compartment or wiring is needed. Hitch-mountable and self-contained, it’s fast, easy to use and maintain.
And because it’s detachable, it can be used independently or transferred to
another RV. It’s truly a first—a complete power system with the reliability of
a Cummins Onan generator, for fast and easy power, wherever you need it.
For more information visit www.cumminsonan.com/juiceboxspecs
Cummins®, Onan®, JuiceBox and the “C” logo are registered trademarks or service marks of Cummins Inc. © 2007 Cummins Power Generation. All Rights Reserved.
ONAN CORPORATION, CIRCLE 103 ON READER SERVICE CARD
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052-RVB0807 PG 52 GE
6/12/08
1:55 PM
Page 52
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08RV290
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