The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Tue Oct 4, 2016
Winnebago Industries has made a power play on the stock market after announcing its upcoming acquisition of Grand Design Recreational Vehicles.
The Winnebago shares have surged more than 22 percent just after its announcement to acquire the 4-year-old manufacturer for about $500 million.
Stock Market Analyst Craig Kennison says the Winnebago and Grand Design deal is similar in stock behavior to the July acquisition of Jayco by Thor Industries. At that time, Thor's share price soared more than 50 percent since the start of the year. During the same time span, Winnebago also has climbed 45 percent, with much of that gain coming Monday.
"We are upgrading Winnebago to outperform following the decision to acquire Grand Design," Kennison says, according to Barron's Stocks to Watch Today. "The deal is expected to be accretive to earnings, pending a few unknowns. For context, Thor shares have jumped 32 percent since announcing the accretive Jayco deal. We missed an opportunity in Thor, and intend to avoid the same mistake here. Meanwhile, we like the leadership-driven story led by new CEO Mike Happe and see the Grand Design deal as evidence of a fresh vision."
The Winnebago-Grand Design acquisition was announced Monday and Happe and Grand Design President Don Clark both said the deal was in the works for a couple of months.
"Winnebago is an iconic brand that is about as well known in our industry as Kleenex was to tissues," Clark said Monday. "Then when you look at the deep-seeded culture in the industry - they have a reputation for building quality products and have a deep-seeded relationship with their dealers and great customer service. That speaks volumes to us because in our core business model, we have more similarities with Winnebago than with any other companies."
"It's a merger of talent, which we're excited about," Happe added. "We will evolve over time."
The combined Winnebago-Grand Design company will have about $1.4 billion in pro forma revenue along with a broader and more balanced portfolio positioned to deliver growth and improve value, according to a press release announcement of the acquisition.