INDUSTRY NEWS
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RPTIA
Charges RVIA Trying to Squash According to Bill Garpow, executive director of the Recreation Park Trailer Industry Association (RPTIA), RVIA is attempting to block the association's scheduled show in Louisville in the year 2000. Garpow reported that prior to the close of the Louisville show in December, he and Bob Kropf, RPTIA chairman, visited the Commonwealth Convention Center (CCC), in downtown Louisville, to examine construction progress and insure that the dates that RPTIA holds for RPTIA's Park Trailer show scheduled for December 2000 and beyond were still on target. They learned that the expansion was on schedule and determined that the additional 146,000 square feet of new exhibit space could easily accommodate Park Trailers. Garpow said, "This good news was quickly overshadowed when we were informed that RVIA's new contract with the KFEC held a clause, allegedly put forth by RVIA, that prohibits the Fair Board from renting any exhibit space under its control to exhibitors who would compete with the KFEC RV Trade Show. An official representing the State Fair Board informed us that the board would enforce this clause and would officially inform us (in writing) that they were unilaterally revoking our right to produce a Park Trailer trade show at the CCC on the dates we have held for the past 18 months. "We informed officials such action would be unacceptable to RPTIA and suggested that the Fair Board review the Federal Antitrust laws as well as Kentucky's laws requiring specific performance of a contract before officially taking such an action." Since RVIA's creation Park Trailer manufacturers were members until 1994 when the RVIA board voted to delete that membership category and expelled all Park Trailer members. That resulted in the creation of RPTIA. Since then, RVIA has allowed Park Trailer manufacturers to exhibit at the annual Louisville show, but with a lot of restrictions and limitations. RVIA is on record as not supporting RPTIA's attempt to hold its own trade show to coincide with the annual RVIA Louisville show. Consumers On Buying Spree as 1998 Ended Bolstered by the lowest inflation in more than a decade, government reports show consumers started 1999 on a buying spree which kept U.S. growth on track in the face of foreign economic woes. The Commerce Department said retail-store sales climbed in December by 0.9 percent to a seasonally adjusted $231.35 billion after strong gains in October and November that showed a nearly eight-year-old U.S. expansion still booming. Separately, the Labor Department said prices barely edged up in December as the Consumer Price index that measures inflation registered its smallest gain last year in 12 years. The index rose 0.1 percent last month after a 0.2 percent November gain for a 1998 increase of 1.6 percent -- lowest since 1.1 percent in 1986. A surging stock market, ample jobs and rising incomes all helped make consumers confident enough to keep shopping, adding vital force to the expansion since spending fuels two-thirds of U.S. economic activity. The Labor Department said energy costs tumbled 1.4 percent in December, posting an 8.8 percent decrease for all of 1998, which means cheaper gasoline and heating oil prices. Winnebago Industries Reports 81 Percent Increase in Net Income Record revenues of $157.7 million were reported by Winnebago Industries, Inc. (NYSE: WGO) for the first quarter of fiscal 1999 that ended November 28, 1998, an increase of 25 percent when compared to revenues of $125.9 million for the first quarter last year. Net income for the first quarter was $9.6 million, or 43 cents per diluted share, when compared to net income of $5.3 million, or 21 cents per diluted share, reported for the first quarter last year. This was an increase of 81 percent in net income and an increase of 105 percent on a per diluted share basis. Kingsley Coach Signs Agreement with Thor Kingsley Coach announced it has reached an agreement with Thor America, Inc., a wholly-owned subsidiary of Thor Industries, Inc. (NYSE: THO) to lease and use a new manufacturing facility in Middleburg, PA. The plant will enable Kingsley to expand its manufacturing capabilities of the popular Kingsley Coach recreational and commercial vehicles. Ralph Dickenson, CEO of Kingsley Coach, said, "This strategic alliance with Thor instantly brings professionalism, quality and reputation that is an industry standard." Thor America will assist in marketing and selling the Kingsley Coach. Full integration of Thor/Kingsley production and assembly operations was expected to be completed by the end of January 1999. Kingsley Coach currently operates at full capacity in its two manufacturing facilities in Houston, TX and Anoka, MN. Under the new agreement, Thor will be the exclusive manufacturer of the bodies and interiors for the coaches, which will be placed on Kingsley's patented chassis design. Coast Announces Stock Repurchase The Coast Distribution System, Inc. (AMEX: CRV) announced that the board of directors has authorized the repurchase of up to 600,000 shares of the company's outstanding stock. Thomas R. McGuire, Coast's chairman and chief executive officer, said, "We believe that the buy-back of our shares is an attractive opportunity for the company, is a good investment of corporate funds and is in the best interests of our stockholders." Shares may be purchased from time to time; depending on market conditions and other factors, on the open market or through privately negotiated transactions at the then prevailing market prices. Key Business And Financial Speakers Lined Up For RVIA's 1999 Annual Meeting A full roster of respected financial and business speakers will provide their expert insights into trends affecting the RV industry's prospects for continued profitability at the Recreation Vehicle Industry Association (RVIA's) 1999 Annual Meeting on Hawaii's Big Island, March 10-14. Heading the list of key speakers will be J.D. Power & Associates' Linda Schulz, director of commercial and specialty vehicles, who will report on findings from the much-anticipated RV consumer satisfaction research funded by the Go RVing Coalition. Speaking at the Annual Membership Meeting on Saturday, March 13, Shulz will discuss consumer feedback on the key components of the "RV experience" -- the product, the dealership and the campground. Leading off the meeting's seminar schedule on Friday, March 12 will be Jeff Thredgold, popular CNN and CNBC financial commentator and president and CEO of the consulting company Thredgold Economic Associates. Thredgold will offer his outlook for the future course of the U.S. economy, the direction of interest rates and the competitive position of U.S. companies. Mimi Donaldson, management trainer and author of the popular book, Negotiating for Dummies, will reveal the six basic skills necessary in successful negotiations. Currently president of her own training and development company, Ms. Donaldson has served on the human resources staffs of major international companies, including Rockwell International, Walt Disney Productions and Northrup Aircraft. The reasons behind the trends that drive consumer, client and employee behavior will be examined by John Krupski, chairman of the International Thought Leadership Council, in a presentation entitled, "Why We Lead the Lives We Lead." In addition to his current behavioral research work, Krupski has amassed much expertise from his diverse professional background as a radio newsman, TV set designer, advertising executive and futurist. RVIA's 1999 Annual Meeting will be held at the Orchid Mauna Lani Hotel, a world-class resort overlooking the Pacific Ocean. Frank Blair Named President of Suburban
Mel Adams, president & CEO, AIRXCEL, Inc., announced the promotion of Frank Blair to president of Suburban Manufacturing Company. Blair succeeds James H. (Jim) Peden, who will resume his duties as president of KODA Specialty Products - the former owner of Suburban Manufacturing before it was acquired by AIRXCEL earlier this year. Adams said, "Jim made many valuable contributions over the years toward helping Suburban grow to be one of the leading suppliers to the RV and HVAC industries. He will be missed. One of Jim's most important contributions has been the development of an exceptionally strong management team at Suburban." According to Adams, Blair's new appointment promises a smooth transition. "Frank Blair has been with Suburban for 15 years as vice president of sales and marketing and, most recently, as vice president of engineering," Adams said. "He is uniquely qualified to lead Suburban's continuing growth and development." Monaco Coach Corp. Moves Trading to NYSE Monaco Coach Corp. began trading on the New York Stock Exchange under the ticker symbol MNC at the end of December 1998. The stock had previously traded on the NASDAQ Natl. Market system under the symbol MCCO. Coachmen Provides Starfltye Motorhome For "A-WeighWe Go" Safety Team
Coachmen Industries, Inc., is loaning its support -- and a new Starflyte motorhome -- for A'Weigh We Go to use during its 1999 travels to inform RVers about the importance of vehicle cargo weight and weight distribution. The full--featured Starflyte, built by the company's Coachmen Automotive division, has been loaned for a year to John Anderson, founder and president of the independent weight safety company that journeys throughout the nation presenting seminars and weighing RVs. Anderson commends Coachmen's high regard for weight safety. "There is no question that Coachmen is committed to educating RVers on the weight issue," Anderson said. Keith Corson, president of Coachmen Industries, said, "Vehicle safety is important to RV enthusiasts as they travel down the road in their 'home away from home.' Increasing awareness about possible safety problems caused by overloading RVs will benefit RVers, manufacturers and dealers. We're delighted to support John because we feel he's performing a significant public service by educating consumers about this issue." Anderson is like a personal trainer for RVs. His Tennessee-based company has weighed nearly 8,000 vehicles in the past five years. "About two-thirds were overloaded," Anderson said. "Weight is half the problem; the other half is weight distribution." A'Weigh We Go has two weighing teams in addition to Anderson. RV owners pay a nominal fee for the weighing and receive a detailed, computerized weight analysis. The company conducted 50 seminars last year at RV rallies and related events to educate consumers, manufacturers and dealers about proper weight and loading. Anderson, a retired helicopter pilot, started A'Weigh We Go after he experienced tire failures and handling problems when he and his wife traveled around the country in an RV they unknowingly overloaded. Anderson said consumers need to understand the capacity of the unit before purchase. "We tell them you buy an RV like you buy a pair of shoes. If you wear a size 10, you don't buy a size 8. If you do, your feet hurt," he said. "We know from weighing that an average couple runs around with 2,000 pounds of gear. If you're an average person, you're a size 2,000." In the photo, Anderson (l) accepts the keys to the new motorhome from Wayne Bigler, director of sales for the Van Camper Division of Coachmen Automotive. For more information on A-Weigh We Go and the team's 1999 seminar schedule visit the A'Weigh We Go web site at: www.rvamerica.com/a-weigh-we-go/ M.B. Thomas Winnebago Donates $10,000 In Stock To The RVDA Education Foundation M.B. Thomas Winnebago, an RV dealership in St. Louis, MO, has donated $10,000 in Winnebago Industries stock to the RVDA Education Foundation, the first gift of securities to the Foundation in its history. The donation was made by Butch Thomas, the dealer principal of M.B. Thomas Winnebago. The RVDA Education Foundation is a 501 (C)(3) organization which means contributions qualify as a tax deductible donation to charity. The Foundation produces pamphlets, manuals, workshops, audio conferences, and posters to help professionalize RV dealerships. The Foundation also makes computer-assisted sales training courses available to dealerships at a fraction of the market price. National RV Ranked High In Forbes Magazine's 200 Best Small Companies And Fortune's Top 100 Fastest Growing Companies For 1998 National R.V. Holdings, Inc., (NYSE-NHV) was recently noted for their well managed growth and profitability in both Forbes and Fortune Magazine articles. In Fortune's list of the top 100 companies from the September 28th issue, National RV was ranked as number 67 in the 100 Fastest Growing Companies. In addition, Forbe's November 2, 1998 issue listed National RV as number seven of the top 200 Best Small Companies. It is the second year in a row National RV has been ranked by Forbes in this distinguished category; in 1997 they were ranked 76th. Wayne Mertes, founder, president and CEO of National RV said, "It's certainly an honor to receive this special recognition of our growth and increased stature over the last twelve months of operation, which I attribute to the hard work of our management team and over 1,700 dedicated employees." The company's 67th rank in the 100 Fastest Growing Companies list in Fortune was based on its 70% earnings per share annual growth rate for the past three years. Additionally, the company had net income of $19.7 million for the past four quarters; an annual revenue growth rate of 62%; and its share price of $23.63 as of August 26th, represented a 120% increase from the previous year. Country Coach Announces Expansion Plans Country Coach, Inc., has embarked on another building project which includes a new 24,000-square-foot expansion to its existing state-of-the-art lamination facility and a 7,000-square-foot DynoMax chassis Quality Assurance DynoCenter. When completed the DynoCenter will house the very latest technology available for its DynoMax chassis testing equipment, including chassis alignment, brake testing and dynamometer stations. The fully computerized dynamometer utilizes horsepower absorbers equipped with valving for adjustment capabilities. The horsepower absorbers are driven by water and employ strain gauges to accurately measure horsepower. The Dynamometer can handle up to 1,000-horsepower engine loading capacity in the simulation. National R.V. Holdings, Inc. National R.V. Holdings, Inc. (NASDAQ: NRVH), is now trading on the New York Stock Exchange under the symbol "NVH''. As previously announced, the company feels that listing on the NYSE will provide exposure to a broader base of potential investors, improve liquidity, and offer the advantages of auction market pricing for both current and future shareholders. |
RPTIA
Scheduled to Move According to Bill Garpow, executive director of the Recreation Park Trailer Industry Association (RPTIA), demands for services offered by RPTIA are on the increase and plans to move into expanded quarters are expected in March. Jess Fowler Named President of DTI
DTI chairman and CEO Hal Fowler surprised employees during the company's annual holiday celebration in Elkhart, IN when he announced his retirement as president. He also announced that Jess Fowler had been appointment president. Hal Fowler started DTI in the middle 1980's and built the company to the point where it is the largest appliance parts distributor in the country with locations in Middlebury, Indiana, Florida, California and Canada. In an interview with RV News, Jess Fowler said that this does not mean that Hal will not be participating in the company. It simply means that he will not be involved in the day-to-day operational level. Jess said, "He's already out developing new business in the marine industry, and I expect to be able to call upon him for advice from time to time." Fowler, in addition to building a successful company, has made many contributions to the industry through his involvement in associations. He was named the RV Aftermarket's person of the year in 1997 and was selected as the RV News' RV Industry Executive of the Year also in 1997. Chevy Trucks Set All-Time Sales Mark Tahoe, Suburban and Venture Models Post Sales Records Chevrolet's truck lineup posted its best sales in history for the third consecutive year in 1998, led by calendar year sales records for Chevy's full-size sport utility vehicles -- Tahoe and Suburban -- and Venture minivan. Sales of Chevy trucks were 1,550,098 in 1998, topping the previous record of 1,504,391 in 1997 by three percent. Tahoe and Suburban record-setting sales of 133,235 and 108,933, respectively, reinforced Chevy's traditional strength in full-size sport utility vehicles as it prepares to introduce all-new year 2000 models. Yearly Tahoe and Suburban sales increased seven and ten percent, respectively. Venture's record sales for '98 were 97,362, up 28 percent. Chevrolet's total vehicle sales for 1998 were 2,426,530, down two percent from 1997. On the passenger car side, sales (223,703) of Chevy's midsize Malibu increased 36 percent in '98, and Corvette sales (29,208) increased more than 28 percent. Profaizer Resigns from Woodalls
RV News has learned that Linda Profaizer, president of Woodalls Publishing, has resigned to pursue new opportunities in the park industry. Profaizer had been with Woodalls since 1970 and led a group that eventually bought the company. The Affinity Group, Inc subsequently acquired Woodalls. Profaizer is one of the most respected professionals in the RV park industry and RV News wishes her continued success in her new pursuits. Thor Industries Approves Share Repurchase Thor Industries Inc. (NYSE:THO) said its board approved the purchase of up to 500,000 Thor shares. Thor also announced that at the national RV show in Louisville it received 55% more orders than last year and 75 new dealers. Thor Bus also recently received orders totaling $20 million from the Port Authority of New York and New Jersey, the State of Michigan, the National Park Service, and others. Thor added that it completed the previously announced divestment of Thor West and its record high RV and Bus backlogs and strong financial condition, including cash on October 31, 1998 of $42.7 million, places the company in the strongest position it has ever been to pursue both internal and external growth opportunities. Airxcel Expanding in Wichita According to Mel Adams, president and CEO, Airxcel the company is adding a 50,000-square-foot addition to its facility in Wichita, KS. Ground breaking is expected this month. Adams told RV News, "We are going to be adding another assembly line to produce some of the new models that are coming on stream." Adams reports that Airxcel just finished a record year. That along with his faith in the potential of the RV market has inspired Airxcel to expand its research and development programs in 1999. Adams said, "We are going to invest more on R&D than we have probably in the last five years. Since 1998 was such a good year it has provided the opportunity for us to spend more on R&D. We are reinvesting because we have great confidence in the future of this industry." Fleetwood Honors Its Outstanding
Suppliers Fleetwood RV has named the recipients of its annual Outstanding Supplier Awards and the Award of Merit recognition was presented to American Bolt & Screw Co. - fastener supplier for Fleetwood's Towable and Motor Home Groups - for long term outstanding performance in quality, customer service, timeliness and responsiveness. Winners were selected based on ratings they received on Supplier Performance Evaluations given by the individual Fleetwood travel trailer and motorhome plants during the 1998 model year. This year's recipients of Fleetwood RVs Outstanding Supplier Awards were:
Go RVing Campaign Receives Award The Go RVing national advertising and promotion campaign has been honored with a first place award in the American Society of Association Executives' (ASAE) 1998 Gold Circle Awards competition, recognizing excellence in association communications. The Go RVing campaign, launched in February 1997, was selected as the best product or service marketing or advertising campaign among 17 association entries in its category. In all, the Gold Circle Awards drew 780 entries in 22 categories. The award was presented to the Go RVing Coalition in December at ASAE's Management and Technology Conference, in Washington, DC. Coalition chairman Tom Faludy, president, Carefree of Colorado, said, "These awards are a testament to our industry's unity, hard work and dedication." IMHA/RVIC Presents Annual Awards The Indiana Manufactured Housing Association/Recreation Vehicle Indiana Council (IMHA/RVIC) recognized several of its members recently in Elkhart, IN. Rich Agan of NBD in Elkhart was awarded the Citizen of the Year Award. Agan has served on the board of governors and as RV Council Chairman and Midwest Show Committee Chairman. He has also served on the Valley Chapter Board and on numerous committees. The President's Award was presented by president Harry Scott to vice president Maggie Stephenson of Redbud Estates in Anderson, IN. Stephenson has served three terms on the board and was president in 1991. She has also served as secretary-treasurer, MH Council chairman, president of the East Central Chapter, and has served on numerous committees. The Fred Haile Supplier Award was presented to Ed Gnott of LaSalle Bristol in Elkhart. Gnott served as the IMHA/RVIC president in 1996 and has served on the board for the last two years as the immediate Past President. Gnott has also served as RV Council Chairman and has organized the Annual Lowell Lerner Supplier golf outing. Arizona's Good Life RV Resort Named Nation's Best RV Park The Good Life RV Resort in Mesa, AZ, recently was named the nation's best recreational vehicle park by the National Association of RV Parks and Campgrounds (ARVC). The park received the honor for the "Mega Park" category that includes RV parks with 400 or more spaces. In addition ARVC named its operators, Chuck and Marianne Weins, "Operators of the Year." Judges base their selections on the campground's customer service, good reputation in the industry and managerial skills. National RV Park Institute Graduates Eleven Executive Services Group (ESG) recently completed a session of the National RV Park Institute (NRVPI), and eleven students from California, Oregon, Texas and Missouri successfully completed the five-day training conducted at Far Horizons 49er Village, in Plymouth, CA. The students were a mix of park owners/operators, managers, people who would like to work at a park and "wanna-bees" who are seriously investigating buying a park/campground. Chairman Emeritus, Holiday of Orlando, Inc., Newton Kenneth Kindlund, age 84, passed away in January at his home in Lansing, MI. Mr. Kindlund was an avid RV enthusiast who assisted his son and daughter-in-law, Newt and Joanne Kindlund, in the start up of Holiday of Orlando, lnc., the precursor to Holiday RV Superstores, Inc. Chuck Hays Elected ARVC Chairman The National Association of RV Parks and Campgrounds (ARVC) board of directors has elected Chuck Hays, owner and operator of 49er Trailer Village in Plymouth, CA, as its new chairman. Hayes officially began his duties as the top elected member of the 3,300-strong RV park and campground owners group during the association's recent convention in Orlando, FL. Airxcel Launches RV Products Web Site The RV Products division and Suburban Manufacturing subsidiary of AIRXCEL, Inc., have launched Phase I of a web site to provide customers and dealers 24-hour access to view available products and services. The site offers a wealth of information about a complete line of RV comfort products, including Coleman® -Mach® air conditioners, and Suburban gas furnaces, water heaters, ranges and cooktops. Visitors can review entire product lines, with specifications and various sizing options. Also included on the site is a helpful "Need Service?" section, where visitors can find a service/maintenance-oriented set of frequently asked questions, easy-to-use databases of authorized service centers for RV Products and Suburban products, and sales and service information. According to Airxcel, when Phase II is completed, the
expanded site will offer a password-protected "For Dealers Only" section that
provides dealers a link to RV Products' primary distributor as well as on-line parts
identification and ordering capabilities. Other companies that have recently lauched web sites include:
WEB SITE OF THE MONTH
Hitcharama's web site is an excellent example of what a web site's potential can be when the key managers at a company take the Internet seriously. Hitcharama's site has been on line for just over a year, and in that time, 10% of all RV sales have come from leads generated through the site. Hitcharama also has a rental operation, and at least 12% of all rentals have come from leads generated through the Internet. The site is somewhat larger than the average dealer web site - about 50 pages. Information includes extensive product information, rental information, specials, parts and accessories and a wealth of related material. An investment in a digital camera gives Hitcharama the capability of including actual pictures of their entire pre-owned inventory of about 100 units so visitors can see the actual RV listed in the ad. Another unique aspect of the site is it is completely maintained and updated in house by Hitcharama's president, Alan Libove. This gives the company the option of immediate updates rather than gathering materials and sending them to a web designer. According to Libove, the Internet is the most cost effective advertising the company does, and far surpasses newspaper advertising that used to have the greatest return on investment. |
KOA Launches New RV
After nearly 40 years as a franchise chain of privately-owned campgrounds, Kampgrounds of America™ has expanded by launching a new company geared to meet the ongoing needs of today's campers and boaters. The concept and development for the new company, KOA RV & Boat Storage, was spawned by responses from surveyed campers regarding security issues, vandalism and the growing level of restrictive ordinances banning residential storage of RVs and boats. According to the new company's president, Keith Kambak, these first-class Centers were designed with RV & boat owners in mind; they were created to eliminate the storage hassles and security concerns many owners face today. Kambak, a former business consultant and long-time vice president for Disney, is extremely confident of the successful future of this new corporation. He said, "Our research revealed that consumer needs and demands for superior storage facilities with top security and on-site conveniences is a growing national trend, and this is extremely the case in major urban areas. We have targeted several large cities across the nation and plan to develop hundreds of the full-service KOA RV & Boat Storage Centers over the next several years." Following the opening of its first center, a prototype facility, earlier this year in the Denver, CO area, KOA chose the Houston area for its number two and three KOA RV & Boat Storage Centers. An industry first, each center spans across several acres, has several on-site amenities and offers varied storage options: climate-controlled indoor; standard indoor; covered outdoor; and standard outdoor. Storage rates at the Houston Centers, which vary by the type of storage, start at just $12 per month for a standard secured outdoor space. According to Kambak, these full-service storage centers are an ideal solution for the many RV and boat owners who struggle with the concerns of storage and security, as well as those others who have neighbors whose idea of a "room with a view" does not include looking at an RV or boat. " While the owner of an RV or boat may consider it the best investment ever made, others may consider the units a less than desirable piece of neighborhood landscaping. On top of this, today's owners must deal with increasingly restrictive parking ordinances as well as issues of theft or vandalism. They especially do not want their investment to become part of the latest crime statistics. "With state-of-the-art security, RV and boat owners feel confident that their investments are safe and secure."
Each KOA RV & Boat Storage Center offers extensive electronic video surveillance and monitoring, nightly security patrol, fire suppression equipment, enclosed perimeter fencing, overall security lighting and controlled access to the facility. Surveyed owners had reported to KOA that while these were all critical factors for selecting a storage facility, they also really wanted -- and asked for -- convenient services on-site to save time and make it easier to get on the road. More than just a storage option, KOA RV & Boat Storage offers on-site boat and RV washing, propane servicing, free air and fresh water filling and free sewage disposal. An owner just calls ahead before picking up his or her RV or boat and the staff will have it ready to go when the owner arrives on-site. Upon arrival, owners simply drive in, leave the car (which gets stored) and drive away with the RV. Best of all, owners also have the option of having their RVs or boats cleaned up by KOA when they're returned to the center. If supplies are needed for a trip, KOA RV & Boat Storage Centers also offer a fully stocked RV and boat supply shop. It's there that customers can even take advantage of free travel planning assistance. For more information on KOA's existing and future planned Centers, call the Billings, MT based KOA RV & Boat Storage headquarters at (406) 254-7460.
RV/MH Heritage Foundation Elects Board The members of the 1999 board of directors of the RV/MH Heritage Foundation were elected at the foundation's annual meeting in December. The board, with new members noted with asterisk (*), include:
Officers for 1999 are: Guy Veni, chairman; Steve Purdy, vice chairman; Dick Aker treasurer; Larry Ryan, secretary; and Gene Stout, past chairman. |
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