October 2014
Volume 39 - Number 3



Industry News

October 01, 2014 2955
Last Call for Nominations to the RV/MH Hall of Fame

by RV/MH Hall of Fame

ELKHART, Ind., -- With the October 31 deadline fast approaching, the RV/MH Hall of Fame Selection Committee has issued a reminder for the call for nominations for the Class of 2015.

RV/MH Hall of Fame (Hall) Chairman and President Darryl Searer said, "If you know of anyone who you believe deserves to be nominated for induction into the Hall of Fame now is the time to send in his or her nomination. I hear the question from colleagues on a regular basis, 'Why isn't this person or that person in the Hall of Fame?' Chances are, the reason is that no one has ever nominated them. My advice to them is, 'Nominate them - don't wait for someone else to do it.'"

The Hall welcomes nominations from all RV and manufactured housing sectors -- manufacturers, dealers, campgrounds, housing communities, suppliers, user groups, trade media, associations, etc -- for the class of 2015 and beyond.

Nomination guidelines and forms available online at www.rvmhhalloffame.org/pages/nominations.cfm."

According to the guidelines, anyone can nominate a person to the Hall of Fame that meets the eligibility requirements. The only people who may not be considered are those who currently serve on the Hall's Selection Committee.

To be eligible the nominee must be, or have been, an active participant in any segment of the recreation vehicle or manufactured housing industries for a minimum of 25 years.

Also, the nomination form must be filled out in its entirety and must be accompanied by three supporting letters (no more, no less) that meet the Hall's guidelines for these letters. Incomplete nominations cannot be considered. If the nominee is not selected within three years, he or she remains eligible only if the nomination is resubmitted and refreshed with additional information.

When evaluating a potential nominee, the selection committee will consider the nominee's overall contributions to the good of the industry, to include both his or her positions, accomplishments and innovations on the job as well as volunteer work both inside and outside the industry, with special emphasis on volunteer work done on behalf of state and national associations and owner groups, the Hall of Fame itself and other industry-related organizations and causes. Favorable responses to these two basic questions are good starting points for Hall consideration.

If a completed nomination form and three properly-prepared seconding letters are received by October 31 of any year, the nominee will be in the pool of candidates considered for the following year's class and for two years beyond that if not selected that year

The Hall's Selection Committee will announce its selections in January and those chosen will be inducted at the Hall's annual Induction dinner in August. The Hall's bylaws allow for up to 10 inductees per year.

Searer said, "The Selection Committee is made up of an equal number of members of the RV and Manufactured Housing industries, and members will only vote on nominees from their respective industries."

Once the nomination form and supporting letters have been completed, the nominations may be submitted by mail, in person at the Hall, or by fax at 574-293-3466.

"Time is running out for nominations to the Hall's Class of 2015," Searer said, "so I urge my colleagues to honor their friends and co-workers by submitting their nominations before the October 31 deadline."

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September 30, 2014 2953
Airstream Announces Major Plant Expansion

by Thor Industries, Inc.

ELKHART, Ind., -- Thor Industries, Inc. (NYSE: THO) today announced a significant expansion of production and office capacity at the Company's Airstream subsidiary in Jackson Center, Ohio. The project will add approximately 94,000 square-feet to Airstream's existing 134,000 square-foot travel trailer plant.

"With the recent strong growth in our markets, momentum and optimism among our dealers and positive outlook for future growth, this expansion will help us achieve our long-term growth objectives," commented Bob Wheeler, Airstream President. "We are also pleased to make this $5.9 million investment in Jackson Center, where our manufacturing base has been located since 1952. Our commitment to the community matches our strong heritage here, as well as our vision of continued growth over the long term."

In fiscal 2014, Airstream reached capacity production levels at its main travel trailer plant, highlighting the need to increase capacity to meet the growing demands for the iconic Airstream trailers. Once completed in May 2015, the new addition to the production facilities will result in an increase in current production capacity of approximately 50% over current levels.

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September 28, 2014 2949
Elkhart-based Skyline shedding RV unit, selling to Evergreen

by Jeff Parrott, The Elkhart Truth

Click Illustration for Larger Image

An embattled longtime Elkhart recreational vehicle and manufactured housing maker is spinning off its underperforming RV division and selling it to a growing upstart.

Cavco Industries Announces Interest in Transaction With Skyline Corporation
PHOENIX, -- Cavco Industries, Inc. (Nasdaq:CVCO) announced its interest in a potential acquisition of Skyline Corporation, a publicly-traded company, at a significant market premium. Over the past several weeks, Cavco has attempted to open a dialogue with the board of directors of Skyline through a series of formal communications, one of which is attached as an exhibit to this release. Cavco has suggested that it would be in the best interest of Skyline shareholders for its board to discuss the various proposals by Cavco to improve shareholder value, including a purchase by Cavco of all outstanding shares of Skyline at an attractive premium to current market prices. Skyline did not respond to any of Cavco's attempts over an approximately 30 day period to engage in a productive dialogue, which included a series of letters addressed to Skyline's board of directors, phone calls to Skyline's longest serving board member and former CEO, and Joseph Stegmayer, President and CEO of Cavco, attending Skyline's annual meeting of shareholders in an effort to discuss the matter with any of Skyline's directors who would be open to exploring options for maximizing shareholder value. After Cavco sent two additional written communications addressed to Skyline's board of directors, one of which asked Skyline to respond within one week to simply schedule a time for preliminary discussions between the companies, Cavco received a letter on September 25, 2014, from Skyline's lead director stating without further explanation that the board would not be able to respond to Cavco's request within the requested time frame.
Skyline Corp. is selling its RV business to Middlebury-based Evergreen RV, the companies announced Friday, Sept. 26. Skyline will continue to make manufactured housing.

“I am very excited to be acquiring the RV division from Skyline,” Kelly Rose, Evergreen RV’s chairman of the board, said in a press release. “Mr. Art Decio has been a longtime friend of mine and a person who I hold in the highest esteem and respect.”

The move comes as Skyline recently announced that an independent audit found substantial doubt that the company could continue operating with its heavy losses and declining capital, and despite Skyline’s vow to turn things around with a yet-to-be-announced plan that included the release of three new RV brands for 2015 at last week’s RV Open House Week. Skyline has lost more than $129.5 million over the past eight years, and hasn’t turned a profit since 2006.

Skyline has focused more heavily on manufactured housing than RVs in recent years. Of its $191.7 million in net sales for the current fiscal year, $145.9 million — or 76 percent — came from manufactured housing, while $45.9 million (the other 24 percent) was derived from RVs. Total net sales were down 29 percent from 2010’s $136.2 million, when the MH/RV ratio was 66 percent to 34 percent.

But the company’s manufactured housing sales from January through June were up 53 percent compared to that period a year ago, in an industry whose sales only grew by 7 percent during that time.

Skyline founder Decio is still the publicly traded company’s largest shareholder with 17 percent of the stock.

Skyline has signed a letter of interest in the sale, but both companies have yet to negotiate and execute terms of the deal.

A publicly traded company’s board of directors must approve such a sale, said Dan Smogor, partner at Elkhart-based accounting firm Kruggel Lawton, speaking generally and not specifically about the Skyline-Evergreen deal.

Evergreen rose from the ashes of the Great Recession. Industry veterans Rose and Mike Schoeffler funded the startup in late 2008, assembling executives from other companies that closed during the crisis. The company last year was the fastest-growing of the industry’s 15 largest manufacturers, according to Grand Rapids, Mich.-based Statistical Surveys Inc.

Rose said the company will try to retain all of the employees at Skyline’s last remaining RV plant in Bristol.

“Obviously the most important issues that face us immediately are retaining the very loyal employees of Skyline as well as solidifying and building on the tremendous dealer body that has partnered with Skyline over the decades,” Rose said.

It’s not the first time Rose has given new life to competitors who’ve struggled. In late 2011 Evergreen hired executives from the recently closed Carriage Inc. to launch its new high-end fifth wheel division, Lifestyle Luxury RV.

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September 21, 2014 2947

'An absolute tremendous success'

RVIA official: RV open house worth a billion in sales

by Jim Meenan South Bend Tribune

This is an aerial view of the RV/MH Hall of Fame in Elkhart during last week’s RV open house. (Photo provided/LIPPERT COMPONENTS)

Click Illustration for Larger Image

ELKHART, Ind., -- From sold-out hotel rooms to massive sales of RVs, the annual RV Open House keeps getting better and better.

The show ended Thursday with most participants headed out of town by Friday. More than 4,000 visitors, mostly dealers, came to the Elkhart County area last week for the open house, where 2015 models were on display at manufacturing sites as well as at the RV/MH Hall of Fame. The three largest manufacturers -- Thor Industries, Forest River and Jayco -- all participated. Bob Martin, Thor CEO and president, said last week that Thor had its largest pre-registration ever for the show.

All hotel rooms were sold out in Elkhart last week, said Diana Lawson, executive director of the Elkhart County Convention and Visitors Bureau, including 1,400 rooms off exit 92 of the Toll Road. "It affected every hospitality business in the city and probably around the region," Lawson said. "It was an absolute tremendous success that continues to grow year after year after year."

And that's just half of the story.

The other half is what one official calls a bigger sales effect than the long-running RV show in Louisville, Ky.

"In 2 ½ days we at least did a billion dollars worth of business," Doug Gaeddert, outgoing chairman of the board of the Recreation Vehicle Industry Association and a group general manager at Forest River, said Friday, speaking for the industry as a whole. "We had to be in that billion dollar range easily. There's no question there are more units and more sales written in this 2 ½ day period than by far anything else."

Part of the reason is the show's timing, which benefits the industry in other ways, too.

A fall show where orders can be placed is much more advantageous for dealers, Gaeddert said, because orders placed in September will arrive on time for January dealer shows. Orders placed in November are generally not ready for the January RV shows.

Orders placed now also help keep workers busy making RVs throughout the entire year. And approximately 83 percent of all RVs in America are made in the Elkhart County area.

In the past, manufacturing might slow down as winter approaches. The industry has become less seasonal because of the Internet and its ability to showcase products, Gaeddert said. "There are other factors but absolutely this (fall show) levels out the production at high levels during the fall and winter and it benefits the entire industry and community," he said.

In his mind, the fall open houses work for everyone, even the Louisville show, a thought that's been echoed by other industry leaders. "It's a win-win for everybody to have this event at this time and then have the Louisville show at its time," he said.

It's definitely a win-win for Elkhart and Elkhart County, Lawson said. It kept the hospitality industry busy even though Notre Dame was off this weekend.

"It is first class," Lawson added. "It's a great impression for the industry. It's a great impression for the city of Elkhart and Elkhart County. I just don't know what they would do any better and create more of an impact on the entire community.

"It's definitely the No. 1 biggest event for the city of Elkhart."

Source: South Bend Tribune, Sunday, September 21, 2014

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September 17, 2014 2943
Thor's Keystone Subsidiary Building New Plant In Goshen

by Thor Industries, Inc.

ELKHART, Ind., Sept. 16, 2014 /PRNewswire/ -- Thor Industries, Inc. (NYSE:THO) announced that its Keystone subsidiary has begun construction on a new plant for travel trailer production adjacent to its existing complex in Goshen, Indiana.

"As a leader in the towable RV industry, we see continued growth opportunities in our core markets," commented Matt Zimmerman, Keystone President. "Our investment in this new plant will allow us to expand travel trailer production and better serve our dealer partners. Our dealers are committed to Keystone and optimistic regarding the future of our market, providing us with the confidence to make a sizable investment of nearly $6 million in the new plant and related equipment. This additional capacity presents us with an opportunity to expand our product breadth and better meet the needs of our dealers and consumers with the high quality features and value they have come to expect from Keystone."

Keystone's new 120,000 square-foot travel trailer plant is the latest addition to a sprawling Keystone campus in Goshen, Indiana. With this expansion program, Keystone expects to increase overall travel trailer production capacity, allowing the Company to better meet the continued growth in demand for towable RVs.

Zimmerman added, "Keystone is growing in a big way. It's imperative that we continue to invest in our infrastructure to support that growth. Supplying product in a timely manner is critical for our dealers. This new investment will enable us to continue to deliver in a big way."

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September 17, 2014 2939
Thor Announces Expansion Projects At Heartland

by Thor Industries, Inc.

ELKHART, Ind., -- Thor Industries, Inc. (NYSE: THO) announced several projects to expand production and office space at its Heartland subsidiary in Elkhart. The projects include the purchase and renovation of an existing office building, expansion of a plant dedicated to production of lightweight travel trailers, expansion of a production facility to produce Toy Haulers, the renovation and dedication of a single facility to the production of destination trailers and the purchase and renovation of a building for a new service center.

"Heartland has made great strides in growing our sales and enhancing our market position to the point where we need to make an investment in infrastructure to support our future growth," commented Chris Hermon, Heartland President. "In total, we are planning to invest nearly $8 million in new or renovated facilities to take better care of our dealer partners and retail consumers, at both the front end with enhanced production and the back end with superior service after the sale. We are truly excited with this expansion program as it will allow us to not only meet the needs of dealers and consumers but also exceed their expectations."

Heartland's expansion program includes a new dedicated facility to build lightweight travel trailers with greater efficiency and even higher quality standards. The Company also renovated another facility to house the production of its #1 selling toy hauler. Heartland announced that it would begin producing destination trailers in a dedicated facility with year round production, illustrating its leadership in that unique market. Finally, Heartland is improving its service capabilities with the addition of 15 service bays to meet the needs of retail customers, as well as a new service lounge to enhance the customer experience.

With its focus on products that are growing fastest in the market, Heartland expects to increase overall production capacity by nearly 20%, while adding approximately 85 jobs in Elkhart.

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September 17, 2014 2938
Lippert Components Announces Custom Glass Printing Capabilities for RV Kitchen Backsplashes and Other Applications

by Lippert Components, Inc.

ELKHART, Ind. - Lippert Components, Inc. (LCI®) announced the introduction of custom glass printing capabilities, and will debut custom printed glass kitchen backsplashes on the 2015 Jayco Starcraft and Evergreen Lifestyle.

“We purchased our specialized glass printer in order to prototype new frameless window designs swiftly and more efficiently move them into full production to improve customer service,” said Josh Roan, LCI Vice President of RV Windows. “We quickly found we could do so much more. We can print realistic replications of marble, ceramic tiles and more on glass providing classic styles, but with a significantly shortened installation time.”

LCI Vice President of RV Sales Andy Murray added that the printer permanently etches ceramic ink into the glass during the tempering process, delivering a durable surface with very high resolution print quality. “Printed glass backsplashes and decorative accents are lighter and much easier to clean than other materials like heavy ceramic tiles,” said Murray. “Not only do we see a wide range of RV applications for this process, but we also believe custom glass printing has potential in manufactured housing and other adjacent markets.”

The LCI Engineering team has been working with customers on various applications and sees opportunities for additional custom glass printing product lines across the industries it serves. LCI Engineer Jim Schoeffler explained, “We’ve barely scratched the surface on possible applications for custom glass printing for RV interiors and exteriors. Our customers have broadened our scope of product ideas, and we expect the pool of creativity will continue to grow in all the industries we serve,” said Schoeffler.

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September 13, 2014 2934
RV Industry is Healthy and Growing Despite Early 2014 Headwinds, Says GE Capital

by GE Capital

CHICAGO--The recreational vehicle (RV) industry continues to experience strong and steady growth, according to performance data from GE Capital, Commercial Distribution Finance (CDF), a major provider of financing to the industry. Early headwinds this year including the unusually cold weather that impacted manufacturing and transportation issues that slowed down shipments haven’t derailed the positive trajectory of the industry.

This upbeat sentiment is expected to be on display at the seventh annual RV Open House, a major industry gathering for dealers and manufacturers, September 16-18 in Elkhart, IN. “This is a busy time of year for both dealers and manufacturers as new models are introduced and orders are placed for next year,” said Tim Hyland, president of CDF’s RV group. “Dealers should feel confident in continued consumer interest and a relatively healthy economy as they plan their inventory needs for next year.”

Through June, CDF data is showing dealer inventory turnover running at a strong annual rate of over 2X and aging rates, reflecting inventory over one year old, remains healthy at under 10 percent. Additionally, the Recreational Vehicle Industry Association (RVIA) is predicting that the industry should expect to grow almost 9 percent in shipments for the full year, up from just under 6 percent projected earlier in the year.

“While the industry is growing at a slightly slower pace than 2013’s record year, it is still growing, and just as importantly, dealers are doing an excellent job in managing inventory,” said Hyland. “While weather and shipment delays contributed to a slower start to the year, the industry is in good position to meet or exceed RVIA’s full-year shipment projection.”

The RV industry’s resurgence after a tough period following the downturn five years ago is helping to fuel the broader U.S. middle market’s performance.

Seventy percent of middle market companies, representing approximately 200,000 firms with revenues of $10 million to $1 billion, project revenue grow this year, according to the National Center for the Middle Market (NCMM)’s latest poll. The NCMM, a partnership between GE Capital and The Ohio State University Fisher College of Business, also reported in its second quarter Middle Market Indicator that 63% of middle market companies will make capital investments that add jobs, equipment, enable acquisitions or train employees.

“The RV industry, like many recreational industries, is closely aligned with consumer confidence,” said Hyland. “With the NCMM reporting record high confidence in the U.S. economy and manufacturing experiencing strong growth, the RV industry will benefit from this positive trend.”

CDF has supported the RV industry with flexible inventory financing products for more than 30 years. Inventory financing, also known as floorplan financing, allows dealers to stock, market and sell a wide variety of products from RV manufacturers.

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September 10, 2014 2925
Winnebago Minnie Headed for Australia

by Winnebago Industries, Inc.

FOREST CITY, Iowa, -- Winnebago Industries, Inc. (NYSE: WGO) is now shipping the Winnebago Minnie to Australia as part of an agreement with Australian-owned Winnebago RV Pty Ltd, a wholly owned subsidiary of Apollo.

Apollo CEO Luke Trouchet and Executive General Manager Operations Paul Truman recently visited Winnebago Towables in Middlebury, Indiana to inspect the first Winnebago Minnie® to be delivered to Australia as part of Apollo's initial order of Australian designed and compliant caravans. Winnebago representatives on hand to meet them were Chairman, CEO and President Randy Potts; VP, CFO Sarah Nielsen; Towables President Johnny Hernandez; Towables National Sales Manager Brion Brady; as well as export specialist, Doug Spencer.

Luke Trouchet, CEO of Apollo said bringing Winnebago to Australia and New Zealand realised a long-held ambition and represented an exciting milestone for his family-owned company, which was established in 1985. "It's a real privilege to represent Winnebago in Australia and New Zealand, and we know the market is very keen to at last have access to this iconic brand," Trouchet said. "We're absolutely delighted to see the first Minnie caravans heading Down Under and we are sure they will be out on the road in no time."

Potts continued, "We look forward to continuing to grow our relationship with Apollo and the export of our first Minnie is a great step to a long and successful relationship."

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September 09, 2014 2921
Camping World and Good Sam Announce Acquisition of Mid-States Campers and RVs in Rapid City

by Marketwired

LINCOLNSHIRE, Ill. -- Camping World announce that an agreement has been signed to acquire Mid-States Campers & RVs, an existing RV dealership in the Rapid City, South Dakota market. Plans are for the location to undergo renovation to feature additional service bays, a Camping World retail store and a state of the art collision center preparing the dealership to join over 100 other Camping World SuperCenter locations across the U.S.

"We are pleased to begin the acquisition of Mid-States Campers & RVs and expand our market share throughout South Dakota and the greater Midwest area," said Marcus Lemonis, Chairman and CEO of Camping World and Good Sam. "For almost 50 years, the Trupe family has proudly served the Rapid City area with top notch service and the best products. We look forward to upholding the values and commitment to customer service that Bob Trupe started nearly half a century ago."

The SuperCenter will officially be named Camping World of Rapid City and located at 10400 Recreational Drive in Summerset, South Dakota with easy access off Interstate 90. This will be Camping World's first full service location in South Dakota, offering a wide array of services including RV sales, service, collision, parts and accessories for the outdoor enthusiast. The dealership will feature motorhomes and towables from the finest manufacturers and brands including Winnebago Industries, Fleetwood, Thor Motor Coach, Itasca, Coleman, Heartland, Keystone, Forest River, Crossroads, Monaco, Holiday Rambler, Jayco, Starcraft, Coachmen and many more.

On the accessory side, the new retail location will feature new and innovative products including interactive displays and customer experiences from the top vendors such as Dometic, Honda, Thetford, Goodyear, Winegard, ADCO, Camco, Roadmaster, Husky, Reese, Cequent, Exide, Ultra-Fab, Coleman, Valterra, Dicor, Champion, Rand McNally, Max-Air, BAL, Furrion, Select Comfort, ASA Electronics, Cummins, Onan, WFCO, Weber, HWH, Presto-Fit, Stromberg-Carlson, Atwood, RDK Products, Magellan, King Controls, Charbroil, Amerigas, Exxon Mobil products, Norcold and many more. Camping World also creates and carries its own private label lines of exclusive products for the RV, outdoor and home markets.

Lemonis continued, "I always look for three things: People, Process and Product in relation to enhancing our Camping World and Good Sam presence. The management and staff of Mid-States Campers and RVs clearly meet that test. Our goal is to add more quality manufacturers and brands, increase our presence in the market, and grow the workforce. The Rapid City area is perfect for outdoor enthusiasts with five national parks and monuments all within an hour's drive allowing RVers to hike, camp, and just enjoy life. We are excited to begin serving this market."

The new SuperCenter in the Rapid City market is in line with Camping World's future growth plans and the company expects to soon announce several additional markets of expansion throughout the country.

Camping World of Rapid City will also be adding additional positions for seasoned and professional RV sales associates, technicians and retail support as the facility expands, and is pleased to have the current employees at the Mid-States Campers and RVs location join the Camping World staff.

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