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001-RVB_0802_FrtCover 1/18/08 4:29 PM Page 1 Dirk Kempthorne, Secretary of the U.S. Department of the Interior Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 002-RVB02 PG CV2 MONACO 1/17/08 4:20 PM Page CV2 ost chassis ers supply many dustries. Roadmaster chassis s 877-252-4666 roadmasterchassis.com © 2007, MONACO COACH CORPORATION Monaco Coach Corporation is traded on the NYSE under the listing MNC. MONACO COACH CORPORATION, CIRCLE 113 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 003-RVB_0802_LO_TOC 1/18/08 5:22 PM Page 3 VOLUME 58, NUMBER 11, FEBRUARY 2008 © 26 DEPARTMENTS 4 16 24 45 50 56 34 TOP OF THE NEWS 7 7 7 8 8 10 12 14 18 22 RVIA Schedules Annual Winter Meeting on Hawaii’s Big Island Dave Altman Remembered as ‘Dynamic Leader,’ ‘Visionary’ Airstream Dealer Creates Unique Homage to ‘Cadillac Ranch’ Dealers Express ’08 Uncertainty in RVBusiness Industry Poll Equity LifeStyle Properties Names Joe McAdams President Tampa RV SuperShow Seen as Benchmark for U.S. Economy Thieves Target RV Dealerships in Michigan, Southern States Mexico Outlaws Picturesque Copper Canyon Train Tours National RV Trade Show Sees Supplier Participation Upswing Park Model Business Helps Cavco Weather MH Downturn RVBUSINESS Q&A 19 Spader Organization Focuses on Managing Dealership ‘Culture’ FEATURES 26 34 Louisville, Part Deux: More Coaches, Towables From Trade Show Interior Secretary Kempthorne Viewed as ‘Breath of Fresh Air’ OEM SHOWCASE 40 New Ownership, Management, Models for Columbia Northwest SUPPLIER SHOWCASE 46 Retail Trends In Brief Public Domain Ad Index Classifieds THIS PAGE: LEFT: RVers enjoy beachfront sites at Sunshine Key RV Resort & Marina, a 54-acre island in the Florida Keys (page 34). ABOVE: The inviting interior of CrossRoads RV’s new fiberglass-and-aluminum Seville VF35CK fifth-wheel boasts a unique floor-to-ceiling slate-look fireplace ... plus a 42-inch LCD TV and large island kitchen (page 26). COVER: Dirk Kempthorne, seen in the doorway of an Airstream travel trailer during the 45th National RV Trade Show in Louisville, Ky., is a rarity in government management — someone whose “job” dovetails perfectly with his lifestyle. As Secretary of the U.S. Department of the Interior, Kempthorne oversees 500 million acres of open land. In his personal life, he has owned three motorhomes — his current coach, an 2003 Fleetwood Expedition, has 15,000 miles on the odometer. Photo by Shawn Spence. Accomodations of the Future — The 21st Century Campground COVER STORY 30 State of the Art MOR/ryde Specializes in Suspensions for RVs, Tow Vehicles 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 upon written request. Periodicals postage paid at Ventura, Calif. 93001, and additional mailing offices. POSTMASTER: Send address changes to RV Business, PO Box 17126, North Hollywood, Calif. 91615-7126, (866) 238-3237, fax (818) 760-4490. Address all correspondence and editorial material to the Ventura, Calif., office. RV Business is published monthly. Subscription rates: U.S. and Canada, $79 a year; $149 for two years. Foreign subscriptions, $129 a year. Single copies are $11.95. Advertising rates are provided on request. RV Business is published by TL Enterprises Inc., 2575 Vista Del Mar Dr., Ventura, Calif. 93001, which also publishes Trailer Life, MotorHome, Rider, Trailer Life’s Campground/RV Park & Services Directory and Highways for the Good Sam Club. TL’s Book Division currently has 11 books in print. FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 3 Contents Contents Contents 004-RVB_0802_LO_State of A 1/21/08 3:31 PM STATE OF THE ART Page 4 STAFF BY SHERMAN GOLDENBERG 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 EDITOR The Fine Art of Picking a President: Caucuses, Coaches and Iowa RVers Raised in a small, politically charged Indiana town that has produced an array of national characters — including high school golf-team member Dan Quayle — I’ve come to enjoy national political election years like this, distracting and annoying as they may be. Indeed, I’m a major news junky, fixated on Fox News, CNN and MSNBC and the latest polls reflecting shifting electoral sentiments. Don’t worry, though — I’m not going to bore you here with my own political views or concerns. Sorting out the candidates and one’s own preferences to me is a personal thing and, proudly, the crux of American democracy. On the contrary, I simply want to comment on the myriad ways in which the national campaign affects and energizes so many of us throughout the U.S. and here in the Midwest — at the lunch counters, during half-time at the high school basketball games and over the fruit displays at the local grocery. Of course, those of us connected to the RV sector get a double whammy because we often find the industry’s products showcased in the national press in prominent and unpredictable ways — like the gorgeous, wintry shot of Republican Mike Huckabee’s campaign bus in the Jan. 14 issue of Time. For Iowa residents involved in this industry, moreover, the impact of all this has amounted to a trifecta, as sportscaster Dick Vitale is prone to say, because of the Jan. 3 caucuses in the Hawkeye State that kicked off this whole national mania. Directly in the crosshairs of the campaign is John N. Dodgen, president of Born Free Motorcoach Inc., Humboldt, Iowa, who has openly thrown his weight behind the candidacy of Massachusetts Republican Mitt Romney. “I think he is the only candidate from either party with the leadership required to govern our nation,” Dodgen said in a rather passionate letter to Affinity Group Publisher Bob Livingston that included the photo shown here. Then, there are the employees of Forest City, Iowa-based Winnebago Industries Inc., who also put themselves directly in the line of political fire as caucus participants — including 35-year-old Public Relations Specialist Kelli Harms. For her part, Harms is proud of the role that Iowa and she herself have played in the process of selecting a new U.S. president. “I think there are some issues that I feel strongly about,” she told RVBusiness. “If I don’t do anything about them or voice my opinion one way or the other, how can I complain?” At the end of the day, though, it’s more than likely that we’ll all be glad when the presidential campaign of 2008 has come and gone — just as Winnebago Chairman and CEO Bruce Hertzke was relieved to have seen the last of the Iowa caucuses. “I’m glad today’s here, I don’t mind telling you,” Hertzke said on Jan. 4, the morning after the closely watched caucuses were held. “It may be an honor to have the caucus, but it’s good to send them (the Born Free Motorcoach President John Dodgen (right) with press, the candidates and their electoral Republican Presidential candidate Mitt Romney. teams) home today.” SENIOR ADVERTISING Brenda Hutchinson Olivia Long PREPRESS SPECIALIST Gerald Vandiver IMAGE EDITOR Robert Peterson ASSISTANT CIRCULATION DIRECTOR Jill Anderson FULFILLMENT MANAGER Melissa Robinson PRODUCTION MANAGER PRODUCTION COORDINATOR TL ENTERPRISES INC. Stephen Adams Michael Schneider SENIOR VP/CFO Tom Wolfe CHAIRMAN PRESIDENT & CEO VP/PUBLISHER/ RV CONSUMER & TRADE PUBLICATIONS VP/CONTROLLER Bob Livingston Dale Hendrix VP/EXECUTIVE DIRECTOR Susan Bray Kevin Hobbs VP/TL DATABASE PUBLISHING Joe Daquino OF GOOD SAM CLUB VP/MARKETING SENIOR DIRECTOR OF CLUB & PUBLICATIONS MARKETING CHAIRMAN & PUBLISHER EMERITUS Ken Hurd Art Rouse EDITORIAL /BUSINESS OFFICE 2575 Vista Del Mar Drive, Ventura, CA 93001 (805) 667-4100; Fax: (805) 667-4484; [email protected] ADVERTISING Terry Thompson Sue Panchenko (Mgr.), Angela Pezzullo BUSINESS MANAGER Denielle Sternburg ADVERTISING SALES PROMOTION MGR. Barbara Keig P.O. Box 8510, Ventura, CA 93002-9912 (805)667-4100; Fax: (805) 667-4379 Elkhart, Indiana MIDWEST SALES DIRECTOR Chuck Lasley ADVERTISING SALES Tacy Hendershot 2300 Middlebury St., Elkhart, IN 46516 (574) 295-7820; Fax: (574) 522-0418 ADVERTISING SALES Paul Gillerlain (219) 324-4740; Fax: (219) 324-6564 Seattle, Washington ADVERTISING SALES Scott Oakes, John Marciano 1818 Westlake Ave., Seattle, WA 98109 (206) 283-9545, fax (206) 283-9571 VP/RV ADVERTISING SALES CLASSIFIED Automotive Accounts TIME & SPACE INC. 651 Oak Ridge Drive, Pike Road, AL (334) 260-7765; Fax: (334) 260-7762 As Vice President of RV Trade Publications for TL Enterprises Inc., Sherman Goldenberg, based in Elkhart, Ind., oversees RV Business & Woodall’s Campground Management. 4 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 005-RVB02 PG 5 FREIGHTLINE 1/17/08 4:20 PM Page 5 4/;7:G 7B¸A/:: 7<B63 BOUOfZS1VOaaWa F11VOaaWa F1:1VOaaWa 4@ 3 2 >]eS`>S`T]`[O\QS7\\]dObW]\1V]WQS BVS4`SWUVbZW\S`TO[WZgVOaWbOZZ1OZZT]`RSbOWZa &#"#&&! &#"#&&!jT`SWUVbZW\S`QVOaaWaQ][ 1OZZ 4`SWUVbZW\S` 1cab][ 1VOaaWa 1]`^]`ObW]\ Ob & #"#&&! ]` dWaWb ca ]\ bVS ESP Ob eeeT`SWUVbZW\S`QVOaaWaQ][ 411;1/!%A^SQW¿QObW]\aO`SacPXSQbb]QVO\USeWbV]cb\]bWQS4`SWUVbZW\S`1cab][1VOaaWa1]`^]`ObW]\Wa`SUWabS`SRb] 7A='1]^g`WUVb %4`SWUVbZW\S`::1/ZZ`WUVba`SaS`dSR4`SWUVbZW\S`1cab][1VOaaWa1]`^]`ObW]\WaO[S[PS`]TbVS 4`SWUVbZW\S`5`]c^4`SWUVbZW\S`::1WaO2OW[ZS`1][^O\g Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 006-RVB02 PG 6 TRAILMANOR 1/17/08 4:19 PM Page 6 “Instead of looking for customers, what if they found you?” We have a terrific product. A great marketing team. And over 1 million names of current RV buyers on our mailing lists. See why dealers can sell over 1 million dollars a year, at some of the highest margins in the industry. The New TrailManor. It’s something to see. For your dealer pack and DVD, call 1-800-707-7061 www.trailmanor.com T h e Tr a v e l Tr a i l e r T h a t To w s L i k e A P o p - U p TRAILMANOR, CIRCLE 112 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 3:07 PM Page 7 RVIA Annual Confab Set for Hawaii’s ‘Big Island’ ‘ of the NEWS Dave Altman, Widely Respected Dealer Helped Found CalRVDA; Is Remembered as a ‘Dynamic Leader’ and Industry ‘Visionary’ Southern California recreational vehicle dealer Dave Altman, founder of Altman’s Winnebago and a respected voice in the RV industry, passed away Jan. 12 following a bout with a cancer. He was 63. A high-profile individual with a contagious smile and a wide circle of industry allies, Altman and his younger brother, Joe, vice 200 Expected as Meeting Reverts to Traditional Wintertime Schedule; RV ‘Superhighway,’ New CAFE Standards, Chinese Trip on Agenda The Recreation Vehicle Industry Association (RVIA) will hear from representatives of the Centers for Disease Control about formaldehyde testing in emergency living units (ELUs) during its annual meeting March 1-3 at the Orchid Hotel, Big Island, Hawaii. “The results of the testing are due at about that time,” said RVIA President Richard Coon. “We have a commitment from the CDC people to come to the meeting and explain what has been going on.” Following hurricanes Katrina and Rita in 2005, RV manufacturers and dealers supplied an estimated 108,000 travel trailers and ELUs to the Federal Emergency Management Agency (FEMA) for emergency housing for those left homeless by the storms. Testing by the CDC, which began last month, was initiated by FEMA under pressure from Congress after some people living long-term in ELUs — spurred by the advocacy of the Sierra Club — complained of health symptoms. The testing was ordered, even though there was no federal standard for formaldehyde emissions in RVs, and it’s not clear to what use the test results will be put. Subsequently, RVIA adopted formaldehyde standards that the U.S. Department off Housing and Urban Development applies to wood products used in manufactured housing, and the Recreational Park Trailer Industry Association (RPTIA) later followed suit. “We are continuing to prepare ourselves for dealing with the formaldehyde issue if it gets out of hand,” Coon said. With this March meeting, RVIA is returning its annual meeting to a wintertime schedule after holding them in the fall since 2004. The 2007 meeting was an abbreviated transitional session in September in Las Vegas. About 200 people are expected to attend the Hawaiian confab. On March 2, “Supplier Appreciation Day,” Lowell Catlett, regent’s professor off continued on page 255 ‘Airstream Ranch’— Work of Art, or ‘Eyesore’? Tampa Dealer Erects Homage to Texas’ ‘Cadillac Ranch,’ but Neighbors, County Officials Object Dave Altman president and general manager, operated Southern California retail centers in Baldwin Park, Carson and Colton, although the company’s original Baldwin Park location, opened by Altman in 1971, had been slated for an eminent domain closure by the end of the year. Altman, who had traveled extensively in an RV over the past 34 years and always displayed a high degree of industry involvement, was a founding member of both the Southern California RV Dealers Association and CalRVDA, serving as chairman of both organizations. He was president of the continued on page 44 Evoking the spirit of kitschy Americana like giant balls of string or alligator wrestling, seven aluminumplated travel trailers once destined for the junkyard have gotten unexpected mileage as a roadside curiosity along Interstate 4 in Dover, Fla., just east of Tampa. Front ends partially buried in the dirt, rear bumpers scraping the sky, the old Airstream trailers lean at identical acute angles, catching glints of sunlight and the glances of highway travelers. The Tampa Tribune reported that the man who arranged them into a row of giant silver dominoes frozen in free-fall said he is paying tribute to an American icon: the Cadillac Ranch, a display of 10 tail-finned cars placed nose-down in a prairie near Amarillo, Texas. “It’s art,” said Frank Bates, the owner of Bates RV and the adjacent field where the teetering trailers were planted Jan. 4. The family-owned business is a longtime Airstream dealer. But one person’s art is another’s junk — at least that is how Hillsborough County code enforcement inspectors defined the display when they found Bates in violation of land-use codes. Bates received a certified letter in mid-January PHOTO: CHARLES LEVIN informing him that he has improperly used agricultural land, code enforcement spokesperson Kemley Green said. Bates will also be cited for accumulating items on his property — namely the old trailers — that code enforcement officers deem debris or junk, Green said. Bates can explain his case at a code enforcement board hearing, she said. If Bates does not comply, he could have daily fees assessed on his property. Although allegedly in violation of county codes, the trailers have passed the muster of the county Environmental Protection Commission’s wetlands and solid waste divisions. The trailers, which were put into position by crane and backhoe operators, are on pasture, not wetlands, commission inspector Bob Owens said. 6 FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 7 Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:24 PM Page 8 TOP OF THE NEWS RVBUSINESS.com INDUSTRY poll Dealers Express Uncertainty, View ’08 as Soft Market MORE THAN HALF OF SURVEY RESPONDENTS FELT THEIR INVENTORY LEVELS WERE HIGH; SOME PLAN REDUCTIONS IN STAFF, NEW UNITS RV retailers have been moving cautiously into the new year reflecting uncertainty in the U.S. economy and continued soft spots in the market, according to results from a recent “dealers-only” RVBUSINESS.com Industry Poll. That guarded tone was prominent in responses concerning inventory levels and floorplanning strategies for the first part of the year. Results showed that the majority of participants (39.3%) felt inventories were average, closely followed by dealers claiming levels were high (35.3%). Another 18.7% said inventory levels were “uncomfortably high.” Accordingly, many retailers are adopting a frugal and pragmatic approach to purchasing new models from OEMs while also cutting overhead costs. Comments included: Equity LifeStyle Names Joe McAdams President Relinquishes Leadership of Privileged Access LP to Take Reins of Company With Interests in 28 States and Canada Chicago-based Equity LifeStyle Properties Inc. (ELS) has named Joe B. McAdams as its new president, effective Jan. 1. Thomas Heneghan, who has been ELS’s president and CEO, will continue to serve as CEO with no change in compensation. As part of the move, McAdams will step down as chairman, president and Joe McAdams CEO of Privileged Access LP, a Frisco, Texas-based RV and vacation membership business that currently leases approximately 24,100 sites at 81 ELS properties. Privileged Access is the parent company of Thousand Trails LP, NACO, Leisure Time, Mid-Atlantic and Outdoor World Corp. ELS, a real estate investment trust (REIT) which owns or has an interest in 311 properties in 28 states and British Columbia consisting of 112,724 sites, said that McAdams will remain on the Privileged Access board and retain 100% ownership of the company. McAdams was on the ELS board from January 2004 to October 2005 before forming Privileged Access. Previously, he was president and CEO of Ventura, Calif.-based Affinity Group Inc. continued on page 24 ■ “Our inventory is currently about 60% of what it was a year ago. That's where we intend to keep it until things turn around. Last year was very spotty with very short hot periods, then long slow periods. We want to see what the market and economy do through the spring.” ■ “We will dramatically reduce inventories and carry only best sellcontinued on page 53 Winnebago Produces 400,000th Motorhome Milestone Comes on Heels of Company’s 1Q Earnings Report Showing Higher Sales, Profits Forest City, Iowa-based Winnebago Industries Inc. recently posted a milestone with the production of its 400,000th motorhome, serving as a prelude to the company’s marking of its 50th anniversary with several events planned for 2008. The news came in the wake of Winnebago's release of its fiscal 2008 first quarter earnings Dec. 20. The company reported a 6.6% increase in sales for the quarter ending Dec. 1 and a 25.5% hike in profits. Management attributed the gains to customers buying more profitable highend motorhomes and the company spending less on promotions. The quarter also included an extra week compared to the previous year. John Diffendal of BB&T Capital Markets said he slightly lowered his earnings forecast for Winnebago in the current quarter but concluded, continued on page 51 Country Coach Rehires 65, Names Guaranty Top Dealer Country Coach Inc. said in January it was hiring back 65 production workers as the company continues to “shape its workforce to meet dealer demands.” In the fourth quarter of 2007, the Junction City, Ore.-based motorhome builder reduced its workforce by nearly 200, many due to the seasonal slowdown. “Country Coach is committed to providing a high quality, innovative motorcoach,” said President and CEO Jay Howard. “At the same time, we are dedicated to providing long-term stability to both our investors and our employees. Making the right adjustments to keep our company healthy serves both our loyal team members and our investors to the best of our abilities.” 8 RVBusiness Go To: Go To: Go To: Go To: Howard added that the current increase stems from several southern dealers showing improved sales in January. In other news, Country Coach named Guaranty RV Centers as its 2007 Dealer of the Year, marking the seventh consecutive year the Oregon-based dealership has garnered the recognition. Guaranty is Country Coach’s oldest continuous dealer with stores in Junction City and Gilroy, Calif. “We appreciate Guaranty's dedication to serving our mutual customers and we are proud to honor this exceptional group of people,” noted Jim Howard, senior vice president of sales and service. 6 FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 009-RVB02 PAGE 9 HENDRICKS 1/17/08 4:19 PM Page 9 Enjoy the ride as much as your adventure Hendrickson suspensions deliver superior comfort, reliability and handling to keep your RV travel carefree and on track. Hendrickson products provide a smooth comfortable ride for passengers and the driver. In addition, they give the peace of mind of knowing you're riding on suspension technology with a road-proven legacy of nearly a century. Drivers enjoy the outstanding handling of a Hendricksonequipped RV through turns, lane changes and maneuvers in tight spaces, such as gas stations, back roads and campgrounds. Experience the comfort of a ride that smoothes unpleasant bumps in the road and helps eliminate excessive lean in turns and road bends. Hendrickson's low-maintenance, extremely durable suspensions contribute to keeping you on the road and out of the shop, allowing you to breathe easy and enjoy your RV experience. After more than 90 years, travelers continue to rely on Hendrickson for superior riding and handling suspensions. Trust Hendrickson to make your next motorhome adventure memorable. For additional information, visit www.hendrickson-intl.com or call 630-910-2800. The Power of Reliable Exceptional Durable www.ridewithred.com HENDRICKSON TRUCK SYSTEMS, CIRCLE 110 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:24 PM Page 10 TOP OF THE NEWS Tampa RV SuperShow Provides Benchmark for U.S. Economy RV Dealers Aren’t Only Ones Paying Attention to Early Events. Historically, Dropoffs in RV Sales are Followed by Decline in America’s Buying Power. There may be more to the annual Florida RV SuperShow, which ran Jan. 16-20 in Tampa, than just deals on travel trailers and motorhomes. The Tampa Tribune reported that the 23rd annual show at the state fairgrounds might just offer a sign of where the U.S. economy is heading. That’s heady stuff for a humble gathering of dealers of vehicles intended to provide the good life. But last year, the recreational vehicle industry recorded lower year-to-year sales for the first time since 2001, and a prolonged slump doesn’t bode well for the big picture. As Lance Wilson, executive director of the host Florida RV Trade Association (FRVTA) pointed out, because sales are largely based on disposable income, RV figures are considered a leading-edge economic indicator. “The industry really looks to this show as a benchmark for the rest of the year,” Wilson said. “If sales are good, if attitudes are good, that The Tampa SuperShow is the first major public RV event of the year, and was expected to help gauge consumer buying sentiment. suggests what’s going to happen for the rest of the year.” And it’s not just RV dealers paying attention, according to Bruce continued on page 24 November Shipments Decline 7.7%, Fueled by 26.9% Dropoff in Class A Class C coaches Only Segment To Show Improvement; '07 Deliveries Off Nearly 10% for the First 11 Months A 26.9% drop in the Class A motorhome wholesale market contributed to a 7.7% decline in November shipments from 2006, according to the Recreation Vehicle Industry Association (RVIA). Overall November shipments fell to 21,500 units compared with 23,300 the year prior. For the 11 months, deliveries dropped 9.9% to 331,000 units from 367,300 the previous year. The Class C motorhome sector was the only category to post a gain in November, up 100 units to 1,200. For the year, Class C deliveries fell 4.7% to 18,200 units from 19,100. Shipments of Class A motorhomes totaled 1,900 for the month compared to 2,600 in 2006, perhaps reflecting a cutback in inventory on dealer lots due to continued softness in the market. Class A retail sales tumbled 16.4% in November, according to information from Grand Rapids, Mich.-based Statistical Surveys Inc. Year-to-date, Class A wholesale shipments were up 200 units to 30,200. Travel trailer shipments were off slightly in November, down 6% from the previous year with 11,000 units delivered versus 11,700. For the 11 months, the sector fell 12.1% to continued on page 52 Western RV Appoints Industry Veteran Bob Wert President Yakima, Wash.-based Western Recreational Vehicles Inc. named industry veteran Bob Wert as president, effective Jan. 2. Western RV, which builds highline coaches, fifth-wheels and truck campers, was acquired by private equity firm Monomoy Capital Partners in December 2006. Previously, the 38-year-old company was run by founder William 10 RVBusiness Go To: Go To: Go To: Go To: Doyle and later by his son, Ron, who retired last June. Philip Von Burg, a partner for Monomoy, noted: “MCP has invested significantly in the people, processes and products of Western RV. During the past year, the company has both revitalized its current brands as well as launched new products in the motorhome, fifth- Workhorse Upgrades Class C Chassis for ’08 Improvements Include Refined Cab, More Horsepower; Available in Three GVWRs Workhorse Custom Chassis LLC is boosting the power in its ChevyWorkhorse Class C motorhome chassis for 2008 and has upgraded the cab interior to give it “more of an SUV feel.” The GM Vortec 6.0-liter gas engine will increase horsepower from 300 hp to 323 hp. In addition, the cab interior has a new dash and offers the same interior as GM’s new SUVs while retaining the roominess created by large footwells along with a forward-mounted doghouse. Access from the exterior is also made easy by wide step pads. According to the Union City, Ind.-based company, performance and safety enhancements for 2008 include: ■ New steering wheel with new cruise control activation for easier driving. ■ New radio offerings with MP3 capabilities, automatic headlamps, continued on page 52 continued on page 52 FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 011-RVB02 PAGE 11 AON 1/17/08 4:19 PM Page 11 If your RV customers think their auto insurance company provides adequate coverage, help them check out the facts. The fact is that auto insurance policies do not provide adequate RV coverage. We’re Aon Recreation Insurance, the nation’s largest RVspeciality insurance producer. And we’ve been protecting RV owners since 1966. We’ve come to know the industry pretty well. We know our specialized RV policies go way beyond standard auto policies. For instance, auto policies don’t include total loss replacement, personal contents, campsite liability or special emergency expenses — critical needs for RVers. According to industry statistics, 90% of RVers are underinsured because their RVs are insured with a standard auto policy. As a dealer, you’re in a unique position to help reverse this alarming trend. Make sure your customers know the facts and provide them with a quote from Aon Recreation Insurance before they leave your showroom. When your customers know the facts about RV insurance coverage, they will appreciate your concern for their well-being. And you’ll rest assured knowing your customers have the protection they need. Call Aon Recreation Insurance today to learn about our new dealer incentive program and how your dealership can earn valuable “after sale” income! PO Box 923, El Segundo, California 90245-0923 • Phone: 888-829-5810 • Fax: 877-356-6034 • www.aonrecreation.com Aon Recreation is a division of Aon Private Risk Management Insurance Agency, Inc. (in California, Aon Private Risk Management of California Insurance Agency, Inc., CA Insurance Lic. 0B33296). AON RECREATION INSURANCE, CIRCLE 107 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:24 PM Page 12 TOP OF THE NEWS Thieves Hit RV Dealerships in EDITOR Michigan and Southeast States Fifth-Wheel TO THE Authorities Suspect Some Burglaries Work of an Organized Crime Ring Authorities are stepping up efforts to track down thieves that have been targeting recreational vehicle dealerships in Michigan for electronic devices. According to WNEM TV5, Saginaw, a new task force was created by the Saginaw County Sheriff’s Department after as many as nine RV dealers were hit along the Interstate 75 corridor. In the most recent crime as of presstime, police said someone broke into Hamilton RV in Kochville Township and forced their way into about 70 vehicles. Police said the thieves are breaking into the dealerships for high-end electronics like CD players, stereos and plasma televisions. The rash of burglaries in Michigan mirrors a string of break-ins in the Southeast. Investigators said that a January burglary at Flagship RV in Clermont, Fla., was linked to similar incidents reported by at least 30 RV dealerships in four states, costing dealers at least $1 million in stolen items and property damage. The Orlando Sentinel reported robberies date back as far as August 2007, when incidents were reported in Louisiana. The thieves moved through Alabama, Tennessee and Georgia before arriving in Florida. Like Michigan, in nearly every case the thieves cut through the dealers’ fence to target high-end motorhomes, stealing expensive portable electronics and ignoring bulky items. Authorities believe the burglaries in the Southeast are being carried out by an organized crime ring. 6 Miniature Factory Replica Planned for RV Hall Amish Model-Maker Commissioned To Build Unique 1:24-Scale Diorama Amish model and furniture maker Laverne Kauffman A group of prominent RV executives is raising money to build a miniature replica of a towable manufacturing plant that will provide minitours illustrating how RVs are built as a permanent addition to the newly re-located RV/MH Hall of Fame in Elkhart, Ind. Amish model- and furniture-maker Laverne Kauffman of Howe, Ind., has been commissioned to build the 1:24 scale model that the group expects to have installed in the hall’s museum by spring. “There are a lot of notable people in the continued on page 54 Skyline Corp. Incurs 2Q, Six-Month Net Loss Skyline Corp. reported a net loss for its fiscal 2008 second quarter and six months, ended Nov. 30. During the quarter, the Elkhart, Ind.-based builder of RVs and manufactured housing incurred a net loss of $1.9 million compared to net earnings of $625,000 for the year-earlier period while sales fell to $77.2 million compared to $94.8 million. For the first half of fiscal 2008, Skyline reported a net loss of $1.8 million compared to net earnings of $2.52 million the previous year and sales were $173.6 million versus $210.6 million. The company’s RV Group, which produces travel trailers, fifth-wheel trailers and park models, saw second-quarter sales decrease 18% to $18.8 million compared to $22.17 million a year ago. For the first six months, RV sales were $42.9 million versus $53.5 million. Skyline shipped 1,192 RVs in the second quarter compared to 1,416 units the year prior and delivered 2,855 units versus 3,481 for the six months. Skyline noted that RV sales “decreased due to an overall softening of demand. Furthermore, sales were negatively impacted by an increase in consumer demand for fiberglass bonded wall construction.” Skyline addressed this shift in demand by opening a previously idled facility that is dedicated to producing travel trailers with fiberglass bonded wall construction. The plant began operations in the third quarter of fiscal year 2007. 6 Square-Footage Story, Survey Elicited Strong Opinions “Thank you for the wonderful exposure RVBusiness gave to the fifth-wheel ‘supersizing’ issue with the different opinions being presented by RVIA and RPTIA/ARVC. The cold hard light you shined on this matter was instrumental in making the industry aware of what was being proposed and the potential impact that such a change could have made on the entire industry. Your effort to tell both sides of the story in a fair and equal way was applauded. Next, when you conducted a survey it once again captured the attention of a lot of dealers, parks, suppliers and manufacturers who otherwise would have had no other way of being informed — let alone have a chance to express an opinion. Keeping the industry up to speed like this is a primary objective of a good trade publication. RVBusiness needs to take a bow for achieving this objective in a quality way.” Bill Garpow, executive director, Recreational Park Trailer Industry Association, Inc., Newnan, Ga. Open Range Fivers Emphasize Square Footage of Units Open Range RV Co., Shipshewana, Ind., is introducing five 2009 models as part of its new mid-priced Open Range fifth-wheel series. Three 331⁄2-foot double and triple slideout floorplans are currently in production, with two 361⁄2-foot quad-slide models set for introduction in the spring. The startup company’s first product came off the line in early November featuring lightweight, silver metallic fiberglass exterior panels imported from Europe on a welded-aluminum superstructure. In an unusual twist, Open Range is marketing the fifth-wheel series according to the line’s square footage, continued on page 54 12 RVBusiness FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 013-RVB02 PAGE 13 HOPKINS 1/17/08 4:19 PM Page 13 ® ™ BRAKEBUDDY, CIRCLE 104 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:24 PM Page 14 TOP OF THE NEWS New OEM to Operate in Former Spartan, ‘Set to Fleetwood Canada Ltd. Facility Grow,’ Buys Back 250,000 Stock Shares Paul Perras Paul Perras, CEO of the newly formed Great Lakes Recreational Products Inc., hoped to have his company's first stickand-tin travel trailers off the production line by the end of January. The new company is operating from the former Fleetwood Canada Ltd. facility, a two-building complex covering 220,000 square feet on 33 _ acres in Lindsay, Ontario, a city of 30,000 located 50 miles northeast of Toronto. Perras heads a nine-member management team, all former Fleetwood employees with combined service of 200 years at the plant, who, along with primary financier the Vrancor Group, bought the assets (real estate, machinery and intellectual property) of the Fleetwood facility for $5.3 million. The transaction was completed on Jan. 15. The management team will own controlling interest of the new company. Vrancor, based in Burlington, Ontario, is a real estate firm engaged in the hotel building business. “The management team in Lindsay indicated an interest in purchasing the plant at the time that the facility was closed in July 2007,” said Elden L. Smith, Fleetwood's president and CEO. “We are pleased that we were able to negotiate a mutually beneficial transaction and are continued on page 55 RV Hall Announces ’08 Display Manufacturers The RV/MH Hall of Fame, Elkhart, Ind., recently announced the winning manufacturers of the lottery for space in the Go RVing Hall for 2008. The Go RVing Hall serves as a marketing feature for the Go RVing campaign and showcases the latest models of five different styles of current RVs. According to hall officials, the display was well received by the thousands of visitors that toured the facility during its first year of operation and complements the exhibits of vintage RVs spanning the period from 1913 to the 1970's. The 2008 units on display include: ■ Folding camping trailer — Jayco Corp., Middlebury, Ind. ■ Expandable travel trailer — Monaco Coach Corp., Coburg, Ore. ■ Fifth-wheel trailer — Carriage Inc., Millersburg, Ind. ■ Class C motorhome — Winnebago Industries Inc., Forest City, Iowa ■ Class A Motorhome — Four Winds International Corp., Elkhart The 2008 models were scheduled to go on display at the Hall of Fame beginning Jan. 15. Companies are selected each year by blinddraw lottery from those applying to participate in the Go RVing display program. 6 Spartan Motors Inc. reported it has repurchased 250,000 shares of its common stock in the open market in December 2007, reflecting “the company’s belief that its stock is undervalued.” Spartan also confirmed it expects to report a record 2007 fourth quarter and year-end driven by growth in all three of its primary product lines — luxury motorhome chassis, emergency rescue and specialty vehicles. The Charlotte, Mich.-based manufacturer of custom chassis and specialty vehicles said it completed the recent share buyback at an average price of $7.75 per share. In July 2007, Spartan received authorization from its board to repurchase up to 1 million shares over a 12-month period. Spartan said it will continue to evaluate its best use of cash, but indicated continued stock buybacks will remain part of the mix. “Despite the current uncertain economic conditions in 2008, we have multiple product lines supporting our diverse business model,” said John Sztykiel, president and CEO of Spartan Motors. “We are positioned well to grow our business. “Luxury motorhome chassis are less sensitive to increases in fuel prices than the RV market as a whole. Emergency-rescue vehicles must still respond to calls for help every 20 seconds, regardless of the economy. Lastly, with the current backlog and the expectation of additional subcontract orders in the near future from our MRAP military customers, our specialty vehicle chassis will see very substantial growth in 2008.” 6 Mexico Outlaws Picturesque Copper Canyon Train Tours El Paso, Texas-based Tracks to Adventure has modified its popular railroad tours into Mexico’s Copper Canyon after the government there decided to prohibit the practice of allowing RVers to stay in their units that were affixed to flat cars while traversing the canyon in the northern state of Chihuahua. The Mexican government said the practice was not safe, although Tracks President Larry Olsen said there had been no serious mishaps during the 33 years that he arranged trips for some 8,000 RVers. “It’s over,” Olsen said. “We fought it a little bit, but the Mexican government just reached the point that they said they weren’t continued on page 57 14 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents The revolutionary new Hybrid Quiet Diesel (HQD) Electrical System from Cummins Onan sets you free! Embrace the integration of battery, shore and generator power that only the HQD delivers. With the press of a button, the Auto mode takes full command of the HQD electrical system so you can live a life of ease. Forget what you thought you knew about RV electrical systems and join the power revolution. See the new Hybrid Quiet Diesel power revolution on select coaches at major RV rallies this spring or right now at CumminsOnan.com/HQD. Cummins Onan Hybrid Quiet Diesel ® Performance you rely on.™ ©2007 Cummins Power Generation. Cummins®, Onan® and the “C” logo are registered trademarks of Cummins, Inc. ONAN CORPORATION, CIRCLE 108 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 6:57 PM Page 16 TOP OF THE NEWS RETAIL TRENDS November ’07: Bigger is Better — Mid- to Large Dealers See Upsurge in YTD Net Profits This is the financial report for the 11-month period ending November 30, 2007. Although spending increased across the board, only at the under $5 million dealerships was this a problem, due to a dropoff in total sales volume. Due to extra sales and gross margin, spending actually decreased (as a percentage of gross margin spent) at larger stores. Mid-sized dealerships ($5 million to $10 million) earned a net profit through November of 5% of sales — an improvement of 25% compared to ’06. The “Over $10 million” group earned a YTD net profit of 4.3% of sales — more than 10% better than ’06. 6 $1 Million to $5 Million Dealers NOVEMBER YTD 2007 AVERAGE DEALER New RV Sales Used RV Sales Total Dealership Sales $1,934,762 $471,688 $3,257,465 15.6% 19.3% 2006 AVERAGE DEALER $1,946,213 $528,649 $3,301,875 15.2% 23.3% CHANGE -0.6% -10.8% -1.3% GROSS MARGINS Total Company GM $922,700 GM % 28.3% $925,390 GM % 28.0% 0.3 pts. Expenses Personnel Expense Advertising Expense Total Expenses $471,723 $60,489 $861,558 % GM 51.1% 6.6% 93.4% $471,578 $60,548 $854,857 % GM 51.0% 6.5% 92.4% 0.1 pts. 0.1 pts. 1.0 pts. Net Profit/Loss Net Profit % of Sales $61,142 1.9% 7.6% -13.3% 6.6% $70,533 2.1% $5 Million to $10 Million Dealers NOVEMBER YTD 2007 AVERAGE DEALER 14.6% 20.2% 2006 AVERAGE DEALER New RV Sales Used RV Sales Total Dealership Sales $4,708,348 $1,340,560 $7,738,069 GROSS MARGINS Total Company GM $1,968,185 GM % 25.4% $1,806,916 GM % 24.8% 0.6 pts. Expenses Personnel Expense Advertising Expense Total Expenses $864,077 $114,500 $1,578,487 % GM 43.9% 5.8% 80.2% $805,627 $109,552 $1,495,888 % GM 44.6% 6.1% 82.8% -0.7 pts. -0.3 pts. -2.6 pts. Net Profit/Loss Net Profit % of Sales $389,699 5.0% 17.2% 25.3% 19.8% $4,465,349 $1,246,856 $7,281,861 $311,028 4.3% 14.4% 19.7% CHANGE 5.4% 7.5% 6.3% $10 Million and Higher Dealers NOVEMBER YTD 2007 AVERAGE DEALER New RV Sales Used RV Sales Total Dealership Sales 16 $11,436,696 $3,923,711 $19,128,709 13.6% 18.2% 2006 AVERAGE DEALER $11,172,387 $3,647,139 $18,247,336 13.6% 18.0% CHANGE 2.4% 7.6% 4.8% GROSS MARGINS Total Company GM $4,443,159 GM % 23.2% $4,213,141 GM % 23.1% 0.1 pts Expenses Personnel Expense Advertising Expense Total Expenses $2,060,885 $262,312 $3,622,019 % GM 46.4% 5.9% 81.5% $1,945,368 $266,400 $3,470,952 % GM 46.2% 6.3% 82.4% 0.2 pts. -0.4 pts. -0.9 pts. Net Profit/Loss Net Profit % of Sales $821,140 4.3% 17.6% 10.6% RVBusiness 18.5% $742,189 4.1% Foretravel Adopts ‘Straight-Forward’ Pricing Policy to Limit ’09 Discounts Luxury coach manufacturer Foretravel Inc. has added a new California dealership and adopted a “straight-forward” pricing policy for its 2009 models that will limit discounts from coaches’ MSRPs. “Foretravel believes that the manufacturer’s suggested retail price should mean something to the consumer,” said Foretravel President Lyle Reed. “It can be confusing and misleading to inflate an MSRP, only to have the retailer quickly and automatically volunteer a large discount.” The Nacogdoches, Texas, manufacturer builds high-end Nimbus and Phenix diesel pusher motorhomes that will retail for the 2009 model year starting at $449,000. Foretravel’s first 2009 model — a 45 foot Phenix — will roll off the production line in early April. The company expects to build about 60 units during the 2008 calendar year. “Foretravel prices will be quite similar to manufacturers who occupy the high-end luxury segment of the automotive industry,” Reed said, noting that automakers don’t heavily discount MSRPs on those vehicles. “(Our) buyer would also like to know that Foretravel's suggested retail prices bear a direct relationship to the actual purchase price, even when making allowances for trade-ins.” “The biggest challenge will be over the allowance on the trade in,” said Terry Nabours, director of sales for the company with 160 employees. “It’s going to be a re-education process. We’re going to have to spend some time promoting it.” Foretravel also announced that it has added California Coach Co., Costa Mesa, Calif., to its small retail network, joining other independent dealers, Parliament Coach Corp., Clearwater, Fla., Keystone RV Center, Greencastle, Pa., Tennessee RV, Knoxville, Tenn., and Motorhomes of Texas, Nacogdoches. Foretravel will be the only new coach line sold by California Coach Co., which up to now has sold and brokered bus conversions and highend used motorhomes. 6 FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 017-RVB 02 PG 17 TEXTRON 1/17/08 4:18 PM Page 17 Textron Financial Corporation ©2008 …enough said. Serving Dealer Floorplan Needs For Over 45 Years! Textron Financial is part of Textron Inc., a Fortune 200 company. Call us at 866-844-8398 or visit us at www.textronfinancial.com TEXTRON FINANCIAL, CIRCLE 114 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:25 PM Page 18 TOP OF THE NEWS Supplier Participation Increases At 45th Annual RV Trade Show in Louisville BOOTH SPACE AND EXHIBITORS SHOW HEALTHY UPSURGE, ACCORDING TO RVIA pound GVWR UFO gas-pusher. Ford debuted two brawnier 24,000-pound and 26,000 pound GVWR variants in its Class C chassis lineup. Monaco debuted its new 28,000-pound GVWR, CCP FD-28, a front-engine diesel chassis. Freightliner continued to promote its two-year-old FRED frontdiesel chassis. Tiffin displayed its Allegro Bus diesel pusher for the first time at a trade show on its new, proprietary, raised rail, 34,600-pound PowerGlide chassis. And a host of other suppliers made some waves with their new products as well. Here is a sampling of some of them: ■ Dometic Corp., Elkhart, Ind., introduced several new products, including the new RML8555 refrigera- tor which has a removable freezer so RVers may expand the fresh-food refrigerator compartment; the industry’s most powerful cooling unit in the RM1350SS Elite 2+2 refrigerator featuring a pass-through freezer, throughthe-door ice and water, automatic or manual door locking system and contemporary styling; and the Horizon II Box Awning for smaller RVs that features an automatic rain shield and pneumatic struts for wind resistance ■ Thetford Corp., Ann Arbor, Mich., introduced an improved lineup of SmartTotes, portable waste-water holding tanks ranging in size from 12 to 35 gallons for RVs; Norcold’s 2117 PolarMax RF, an RV refrigerator with 17 cubic feet of storage space; and an continued on page 57 MOR/RYDE, CIRCLE 111 ON READER SERVICE CARD The final count from the 45th Annual National RV Show in Louisville, Ky. showed that 3,766 supplier exhibitors took part in the show, up 2.2% from the 2006 show, according to the Recreation Vehicle Industry Association (RVIA). The number of supplier booths was up a healthy 12%, to 973, from the 869 who displayed a year ago, RVIA noted. Among the 973 suppliers that displayed their products and services at the show, the chassis manufacturers got most of the pre-show ink. And rightfully so, in light of major innovations by Workhorse Custom Chassis LLC, Ford Motor Co., Custom Chassis Products LLC, Freightliner Custom Chassis Corp. and Tiffin Motor Coach Inc. Workhorse introduced a 22,000- 18 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 019-RVB_0802_LO_Q&A_Spader 1/18/08 1:20 PM Page 19 Spader Organization to Launch Workshops, Services Focusing on Managing Dealership Culture, Personnel “IT’S GOING TO DO FOR THE ‘PEOPLE SIDE’ OF MANAGING THE BUSINESS WHAT OUR TOTAL MANAGEMENT I DID FOR THE FINANCIAL SIDE,” — COMPANY PRESIDENT JOHN SPADER Q&A RVBusiness ■ BY SHERMAN GOLDENBERG and BOB ASHLEY S pader Business Management is a well-known service firm that provides management training, consulting and computer services to small businesses in the RV and other niche arenas. Confidently billing itself as a “resource,” the Sioux Falls, S.D., firm offers clients — most frequently retail dealerships — a portfolio of tools and programs designed to increase performance and profitability. That service has certainly been compelling enough to open plenty of doors since Duane Spader, whose business partly grew out of a presentation he and three other dealers gave in 1972 at an RVDA meeting during the South Bend Show, founded the company 30 years ago. After all, what business owner is going to ignore an opportunity to improve their bottom line — especially in the retail corners of niche sectors like RVs, marine and farm equipment in which good advice is often hard to come by? But Spader Business Management — and the John Spader long-standing network of 20 Groups for which it has largely become known — has made good on those claims as its blend of statistical analysis and hands-on coaching and consulting reportedly has provided clients with higher revenues in the short-term and proven business plans over the long haul. In fact, those 20 Groups, which bring together business people from different regions of the country to share ideas and provide sounding boards for short- and long-term strategies, best financial practices and other varied concerns, are widely recognized as a cornerstone behind some of this industry’s most prominent retail players. One of the keys to its longevity is the fact that Spader astutely changes with the times. Accordingly, this past year has marked another evolution for the company, led by Duane’s son, John, who took over as president five years ago. “I was told it would take two or three years before I learned what my job was,” stated John Spader, 41, noting that his father was still actively involved in the company. “That was right on. Learning what my job is and getting a vision of where we want to take the company has been quite a process the last three to four years.” One of the biggest changes has been the expansion of Spader’s offerings to a portfolio of clients that now spans 10 industries. Beyond the software that it has promoted for a number of years and is still being utilized by a few hundred clients, the company is delivering 20 Groups, consulting and training for all aspects of dealer management. Spader, in addition, is complementing its programs for the “financial side” of businesses with a comprehensive workshop and related services targeted at the “people side” of things. “Our client base has grown significantly during the past five to 10 years, and a lot of our current clients have figured out how to make it work financially,” noted John Spader. “But people management continues to be one of their big issues.” In addition, the company has launched a new logo and is projecting “a whole new identity,” said Spader, who, along with Noel Lais, the company's vice president of operations, recently discussed the company’s ongoing transition with RVBusiness. “The journey started with being more consistent in our advertising — even re-visiting and tweaking our mission and values, which has not hardly been touched in 10 or 12 years.” FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 19 Contents Contents Contents 019-RVB_0802_LO_Q&A_Spader 1/18/08 1:21 PM RVB: We are here to talk about what you are calling a ‘big moment’ in the progression of the Spader Business Management company. Please explain what’s happening and what it means for our industry. SPADER: It’s a big moment in the evolution of our company. It’s not about ‘out with the old and in with the new — it’s about adding a whole new level to our foundation, and what we can do for our clients as well as the skill set that we offer. And we have launched a new facet in our Total Management II workshop that helps dealers manage the people and culture of their businesses, which is a vision that started more than 30 years ago with my father and one of his business partners. That’s really what this foundational workshop addresses. It's going to do for the ‘people side’ of managing the business what our Total Management I did for the financial side. RVB: This sounds like more than just adding a new workshop. LAIS: It’s a whole new perspective, a new realm of services, one of which is the Total Management II workshop focusing on the people and the culture of the business. But a lot of the services we are beginning to offer now outside of the workshop — in the consulting area and even the software and management tools — will focus on the people side and the culture side of the business. SPADER: We anticipate it being similar to what happened with Total Management I some 20 RVBusiness Go To: Go To: Go To: Go To: Page 20 30 years ago. For the first five to 10 years, the main training Spader offered was the Total Management I workshop. And, then, other programs started spinning off that core, like our management consulting, service part and sales training, the 20 Group reports and the way 20 Groups run. We’re looking at this 41⁄ -day course as a new foundation. Give us five years and you’ll probably see somewhere between six and 10 other workshops and many other related products and services (that grew out of Total Management II). RVB: Is this workshop designed for an individual dealership or a larger group? SPADER: We could do it for an individual company, but ordinarily it’s for a group of dealers. It’s more hands-on than some of our other workshops, which may have 35 or 40 people in them. On average, this workshop has two instructors and it's limited to 24 attendees. LAIS: There are a lot of small group activities and breakout sessions. It really is beneficial to have multiple businesses there. The interaction among multiple businesses is important. RVB: Where are the workshops held? SPADER: Traditionally, we’ve been holding them in Sioux Falls. Under the right circumstances we might take them on the road, but generally they will be in Sioux Falls because we have such a strong base of resources there, including 40 full-time employees. And with the things we are starting to do with technology and training, it’s going to get tougher and tougher to move that around the country. RVB: How are you applying this new focus on people and culture to the RV industry? LAIS: I talked with one of our longtime RV clients who brought most of his employees to a Total Management workshop many, many years ago. At that time, the business was probably less than 15 to 20 employees. He said that now he has 150 employees and there was a real need to really understand the HR (human resources) side of the business. This is pretty typical in the RV industry. As the industry has grown, dealerships have grown in size and are employing more people, and creating more department managers and general managers. In a smaller dealership, often the owner is the culture. But in a business that has more than a dozen employees, where the owner can’t visit with them every day, you have to establish a companywide culture. We teach that by creating the vision and the mission and the values of the organization, the people in the organization now can promote that culture as well as the owner of the business. It’s becoming more and more of a need as our RV dealer clients grow. SPADER: It’s really a system. We talk about culture and people, but it’s a system to manage the energy and the people in your business from top to bottom. It’s all connected and integrated. For example, if a dealer loses a key, long-time employee, getting a new one in and up to speed takes years in a lot of cases. Our program allows that process to be streamlined. It allows them to adapt faster and in the long FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 019-RVB_0802_LO_Q&A_Spader 1/18/08 3:29 PM run make a much stronger, integrated system for managing and directing the company. RVB: We understand that Spader has developed a new business model. What, to North America’s RV dealers, does this really mean? SPADER: The model is a map for dealership success. It is a way of looking at things and a way of asking questions. The part that excites me the most is that the model is simple — one that almost any business owner can look at and implement immediately. It allows owners to see the entire business. If they have 200 things to do, they can determine the 10 that will have the most impact. LAIS: One of the things we teach now is there are two key models. One is an ‘issues’ model — determining what all the issues are in a business and figuring out which issues to work on first. And then, there’s the ‘solutions’ model. Once we’ve identified the issues, there are certain solutions that work for those issues. We teach the two models in conjunction: identify the issues and then choose the right solution. We have done this type of thing on the financial side, but, again, now we are applying it to the people side. RVB: The 20 Groups have always been a key part of Spader. Is that still true today? SPADER: Yes, 20 Groups are evolving significantly. We’ve offered some different versions — for example, groups for larger-volume and smaller-volume dealers. The fact that we’re now dealing with many businesses that have 100 million-plus dollars in revenue and operate multiple stores is representative of the 20 Groups’ success. Ten, or even five years ago, that wasn’t even on our radar. Another thing that’s happening is that we’re also seeing a lot of the manufacturers bringing us some of their smaller clients — four-, fiveor six-person operations that traditionally we would not have seen. And with the variance in size and dollar volume of our 20 Group companies, we now offer multiple types of 20 Groups and training. LAIS: Let me add that we are also incorporating the people and culture side of the business into our 20 Groups. In addition to compiling financial reports, we have developed employee productivity reports. Just like when we compare sales, total margins and net profits for the 20 Group companies, now we are starting to gather people information. RVB: Are 20 Groups as popular in the RV industry as they've ever been? SPADER: I would say so. Our numbers keep going up. RVB: In the past, we’re told, some of these 20 Group meetings have been extraordinary sessions in terms of off-therecord, discreet information that is shared. Is that still the case? SPADER: There are those dealers who buy into a 20 Group and those who don’t. Not everybody is right for a 20 Group. 20 Group is not for someone who is not willing to lay their Page 21 cards on the table, be held accountable, be open to critique or evaluation, it’s probably better if they don’t even get in. We really see two types of people who come into the 20 Groups. About a year or two into it, they take a path. There are those who are looking for the silver bullet (a quick fix). And there are those who are really willing to commit and be strong members. And a couple years in is where they generally become ‘lifers’ for the most part, or they move on. RVB: What else is going on at Spader that, in your view, the industry ought to know more about? SPADER: We are getting into more industries. We are now in 10 different industries — RV, marine, farm equipment, office furniture, power sports, motorcycles, lighting showrooms, motorcoach, horse trailers and cargo trailers. The more industries we get into, the better we get at sorting out issues and tackling them. It gives us a larger perspective. And the lessons that we have learned in the other industries should allow us to better serve our RV industry people. LAIS: We are also doing some new things in terms of assessing businesses. We’ve launched a program that assesses all levels of a business — from a 12-question assessment all the way to gathering three years of data and history from the dealership. The process includes surveying all the employees and visiting the dealership. It allows us to get baselines. And from that assessment we give red, green or yellow flag areas that coincide with our business model. From those assessments we can define the two-, three-, four- or even six-year development plans showing opportunities for the business. SPADER: There also is an opportunity for individual assessment for the owner. As businesses have grown significantly, sometimes the owner or founder of the business will need to develop new skill sets. The motivations and capabilities that are needed to lead a 12- to 15person operation are significantly different than those needed to lead a large organization. We have assessments that they can use to determine where they are a fit and where they need to develop. And that holds true for every management position. The sales manager that you had when you opened your doors and got started in business might not be the right sales manager if you have grown to a dozen salespeople and are doing $50 million in annual sales. RVB: What, in general, are the biggest changes that a typical American RV dealership faces these days? SPADER: What we are seeing in the market is that the level of sophistication from high to low is changing significantly. There are a lot of high-volume dealers who are not sophisticated and we’ve seen some low-volume dealers who are highly sophisticated, almost bullet-proof in how they run their business. That level of sophistication is really what emerges in a marketplace that has softened or hiccupped a bit. If you look at the top 20% of our dealers, they have maintained their net profits in a down market. Those on the lower end of the scale have been taking a hit in their businesses for the past few years. RVB: How much of a factor is consolidation in the current marketplace? SPADER: I’m not going to speak as an expert on this, but in general I still see the RV industry as a growth industry. If you study industry evolution, when industries level off or they contract a little bit, you are going to see lots of consolidation. The RV industry is still an easy-entry industry, and you probably will see some consolidation take place, but it’s more from opportunity than it is from forces pushing it. Some day the industry will level off and maybe even dip or contract some. When that starts, I believe you will see a lot of dealer consolidation, and you’ll see more manufacturer consolidation. RVB: So, are you seeing an increased attrition rate in the current soft market? SPADER: We’ve seen some dealers go out. But one of the things my father taught for years is that those that are management-driven can often do better in tough times than in the good times. That is a lot of what we are seeing. Management-driven dealerships have to work harder for it (stability and growth), but they are able to get it. In a soft market, their skills shine. In a rising market, it’s tough to tell who is the strong manager because everybody is up and everybody is doing well. This strength really is apparent in the nonverbal, or the vibe, of a dealership. I’ve walked into a lot of dealerships this year, when times have been tough, and you could feel they’re not doing well. Customers may not consciously know that, but, subconsciously, they feel it. RVB: You instruct retailers in non-verbal vibes? SPADER: That’s one of the key things in all of our training. Every one of our training classes talks about that and gives examples of that. It’s one of the key fundamental things about business, particularly in the tough times. 6 Noel Lais FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 21 Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 3:08 PM Page 22 TOP OF THE NEWS Fabric Services ESOP Plan Motivates Park Model New Co. Owners — All 80 of Them Business Helping Employee Stock Ownership Plans Cover About 10% of the Private-Sector Work Force, But Are Rare in the RV Industry Fabric Services President John Wuori (left) and former owner John Regan, who sold the company to workers by forming an ESOP, pose at their home office. Textile supplier MRP Corp., doing business as Fabric Services, has new owners — approximately 80 of them. On Nov. 21, ownership of the 20-year-old, Bristol, Ind.-based firm was converted from founder John Regan to his employees through an Employee Stock Ownership Plan (ESOP). The company is now 100% owned by its employees. Rather than selling the company to the highest bidder, Regan said he wanted to pass on the opportunity of ownership to the employees, adding that a core group already works “as though they own the place.” This positive work ethic is now rippling throughout the company. “I’ve had nothing but positive reactions,” he said. “A lot of people were shocked: shocked I sold the company and shocked that I sold it to them.” Regan stayed on as chairman of the board and serves as a strategic adviser, but no longer is involved in day-to-day operations. John Wuori, company president, is the go-to guy, according to Regan. “I’ve been putting the best people in key places to ensure the company continues on its track of excellence and growth,” Regan said. Converting to an ESOP is a “long-term educational process,” said Wuori. “It’s a new opportunity for a lot of them who come to work,” he added. “They are learning what makes a business thrive and what drives the business." Now, employees not only do their jobs but also must consider factors such as improving efficiency, lowering costs and finding new markets. Don Wade, vice president of design and development, chairs the company’s ESOP committee and is responsible for educating the “owners” about the plan. The ESOP is structured similar to a 401k plan, and employees receive financial reports each quarter on the status of their investment. ESOPs are not uncommon: there are approximately 11,500 ESOPs in the U.S., covering 10 million employees or about 10% of the private sector work force, according to the ESOP Association. However, ESOPs in the RV industry are considered 22 RVBusiness Go To: Go To: Go To: Go To: quite rare. Wuori noted that Regan had many options for succession at Fabric Services. When discussions began, a management buyout was certainly an option. “The ESOP intrigued us a little and when we looked at it further, it looked like an appropriate opportunity,” he said. “There were other things he could have done that would have been more profitable than an ESOP. But John has never been in this for the profit. “He loves to see how the work of his hands has a ripple effect to make an impact in the industry and give good employees a place where they belong and where they can be proud of their work. We’re grateful that John chose ESOP so we can partake of the joys and satisfactions he's experienced as a business owner.” He also reinforced Regan’s assertion that not much at Fabric Services will be different now that ownership has changed hands. “We were successful before, so we’re not changing much,” Wuori said. The company is a textile source for both distribution services and value-added processes, including flame lamination, computerized cutting, adhesive lamination and perforation. The company ships nationwide but its core market is located within a 50-mile radius of Bristol. Nearly half of its revenue is generated from the RV industry, Wuori said. It also serves the automotive, transportation, heavy trucks, furniture and specialty markets. In the RV arena Fabric Services sells prepared, interior soft goods to OEMs and tier-one parts suppliers and claims to be the top supplier of soft vinyl for RV ceilings. The company also represents Guilford Mills, Wilmington, S.C., which makes material for pleated shades, and distributes storage compartmentliner materials for Millikin & Co., Simpsonville, S.C. In 2005, the company acquired Flame Treat Inc. in Elkhart, Ind., and now can treat fabrics to meet federal flame-retardant standards. The company’s 80,000-square-foot plant in Bristol contains two fully automated adhesive lines, a flammability testing and certification laboratory and a lab to test material for abrasion and tear strength. “We had a good year in 2007,” said Wuori. “Our company has been very fortunate and blessed to be a growing company. We project continued growth over the next few years. We’ve had a very fortunate run here.” Meanwhile, Regan has bought out Fabric Services’ latest acquisition, the Shelby, N.C.-based textile mill Abercrombie Textiles. “Abercrombie needs someone to make it their No. 1 priority, and I’m tickled to make it mine,” said Regan, who will run the operation from northern Indiana. Regan sits on the board of the Recreation Vehicle Industry Association (RVIA). He also is a lecturer in the entrepreneurial series and co-teaches an MBA business leadership course, both at Indiana University in South Bend, Ind. 6 FEBRUARY 2008 .com .com .com .com Cavco Survive MH Downturn Despite Downturn in Manufactured-Housing Industry, Company Remains Profitable — Looks to Expand With the manufactured housing industry floundering, Phoenix-based Cavco Industries Inc. might be expected to sink as well. Cavco, according to a report in the Arizona Republic, is the seventh-largest manufactured housing producer in the country, and most of its customers live in Arizona, California and New Mexico. But shipments fell 43% in its two major markets, Arizona and California, during the first eight months of 2007 compared to the same period in 2006. “It’s terrible,” company president Joe Stegmayer said about the overall market. “The industry is at its lowest shipping point in about 41 years.” He blames the problem on the easy subprime mortgages that lenders gave buyers of site-built homes several years ago, a financing that is now causing severe problems in the housing and financial industries. Yet despite the problems in the manufactured housing industry, Cavco, the state’s largest maker of manufactured homes, not only continues to operate in the black but is looking at expanding. Stegmayer credits Cavco’s staying power to its longevity and diversification — and to its specialty in making recreational park trailers, a type of small manufactured dwelling that made second homes affordable for the past 30 years. “We’re not making nearly as much (money) as last year or the year before, but we're still making profits,” Stegmayer said. “Our financial position is very strong. We have no debt.” Company officials say they have continued to increase the quality and appearance of its manufactured homes. Cavco also makes some commercial buildings and recently branched out into manufactured cabins and lodges, many of them sold to KOA campgrounds. But its most important niche is the park model, a 400-square foot manufactured home that is especially dominant in agerestricted plus parks in east Mesa and Apache Junction. James McCanless, senior analyst with FTN Midwest Securities Corp. in Nashville, said park models really help Cavco’s finances. “As a result of that niche business, that has allowed them to stay profitable every quarter since going public in 2003 and has allowed them to maintain profitability during a very difficult time for the industry,” he added. 6 User User Guide UserGuide Guide Contents Contents Contents 023-RVB02 PG 23 HALL OF FA 1/17/08 4:16 PM Page 23 Walk down memory lane to a place where the past is preserved and the future is promoted. Located in Elkhart, Indiana, the new 100,000+ square foot home of the RV/MH Hall of Fame, museum and library is now open to the public. Whether you are just passing through or your destination is nearby you won’t want to miss the largest exhibit of historical recreational vehicles anywhere. Walk through these beautifully restored units and step into the past, then visit the GO RVing Hall and envision the future of Recreational Vehicles. Hours Mon. - Sat. 9am - 5pm Admission: Adult - $8.00 Seniors: $6.00 Age 16 & under - $3.00 Groups of 14 or more $6.00 ea. The RV/MH Museum, Hall of Fame,and Library 21565 Executive Pkwy., Elkhart, IN / Exit 96 - I-80/90 (South on C.R. 17). Phone 574/293-2344 / 1-800-378-8694 / rvmhhalloffame.org Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 3:09 PM Page 24 TOP OF THE NEWS Tampa SuperShow from page 10 Hertzke, chairman and CEO of motorhome builder Winnebago Industries Inc. “We are an indicator, and when things start getting tough for us, you can kind of expect it to be a little tougher for the economy as well.” In fact, according to the Recreation Vehicle Industry Association (RVIA), for the past three decades, every decline in the RV industry has been followed by a decline in the U.S. economy as a whole. And industry economists are expecting another slide, with last year’s 10% sales decline expected to be followed by a 5% drop this year. But officials said poor economic news didn’t dampen the show. PRVTA reported that the show is breaking records for both manufacturers’ exhibit space and suppliers' booth space, according to show officials, and 1,300 vehicles were on display from every major manufacturer. “The good news for our industry is that you can never take leisure time away from people,” Wilson said. He said high gas prices have been offset by lower interest rates for RV loans. A big bogeyman, though: The housing slump, specifically lower resale rates for those intending to pull up stakes in retirement and hit the road. “Certainly, there’s that trickle-down from all of that. There are guys that thought they might Joe McAdams from page 8 “We are pleased to have Joe join the company as a member of our executive team,” said ELS CEO Thomas Heneghan. “Joe brings a wealth of knowledge and experience to the company.” McAdams said his appointment makes sense both for Privileged Access and for ELS, which owns the real estate that Thousand Trails markets to its members. “ELS is my landlord and has been my sponsor in helping me acquire the Thousand Trails operating company,” McAdams said, adding, “I think I can create more opportunities for both companies in this position. I am extremely excited about joining Equity Lifestyle Properties and creating value for all folks associated with both companies, the shareholders, employees and customers and members of Thousand Trails as well as ELS." McAdams also said that he has “a very good team” in place at Privileged Access and that he expects the company to do well while he serves as president of ELS. McAdams will serve as ELS president from his office in Frisco, Texas, while Heneghan is headquartered in Chicago. Meanwhile, David McCrum, a longtime Thousand Trails manager, was 24 RVBusiness have had a bigger retirement than what they ended up with,” Wilson said. From shorter trips and longer stays to shopping for more economically friendly vehicles, RVers are adjusting, he said. “They still do what they want to do; they just change what they do to make it more economical,” Wilson said. A couple of noticeable trends from the Tampa show: ■ The growing popularity of “toy haulers,” vehicles with living space whose spacious rearends open up to stow everything from motorcycles to all-terrain vehicles to watercraft. ■ Continued advancement of the slideout concept, with roomy sections of vehicles — entire walls of some of the huge Gulfstream Tourmasters at the show — extending outward after the vehicle is parked to provide additional living space. The novelty of a decade ago is now common to RVs. On the economical side, shoppers can enjoy a working kitchen with mini-fridge, dinette, bathroom, queen bed, flat-screen TV, and iPodbased music system all in the 70-square-foot iCamp Elite, imported from China. The singleaxle trailer towable by a six-cylinder vehicle goes for $19,975. But what would an RV show be without the rolling palaces? Inside the Expo Hall, browsers checked out the bus conversions, including a $2.2 million Marathon Coach appropriate for the most discerning rock star. 6 named CEO of the Frisco-based company. He joined Thousand Trails in 1987 as a vice president and was promoted to treasurer in 1992. According to Thousand Trails, the firm is the largest private network of RV camping and outdoor preserves in America with destinations for more than 130,000 member families at over 80 preserves in 22 states and British Columbia. Resort Parks International (RPI) resorts, which are located throughout the U.S., Canada, and Mexico, offer additional recreational activities and amenities to Thousand Trails’ members. ELS has obtained an option to purchase Privileged Access with all of its subsidiaries, but the company has determined that “the best strategic option available” right now is simply to bring McAdams into ELS management. In its statement, ELS said: “The company recognizes that Mr. McAdams may have a conflict of interest with respect to his ownership of Privileged Access and his role in the company. To mitigate this potential conflict, Mr. McAdams will not be involved in the monitoring of the current contracts, or negotiation of future contracts, with Privileged Access on behalf of the company.” ELS also said it is evaluating whether to consolidate Privileged Access. 6 IN BRIEF Corrections. In the January issue of RVBusiness, the article “RVIA 45th Annual RV Trade Show Highlights” inadvertently relocated CrossRoads RV to Kansas. For the record, the manufacturer of towables, destination trailers and park models is headquartered in Topeka, Indiana. Also, in the same article, the Winnebago Era was referred to as the first “corporate” brand from Winnebago Industries Inc. Winnebago previously released the ultimate and Rialta brands outside of its Winnebago and Itasca brand families. Charter Equities Cuts Ties with Saddleback RV. Charter Equities Inc., a publicly traded company that acquired Saddleback RV last September, announced Jan. 3 that it was severing its relationship with the Colton, Calif. dealership. In its statement, Charter said that Saddleback is “no longer associated or affiliated” with Charter and has been taken private by management. Charter said that the 22.5 million shares issued to Saddleback shareholders have been tendered back to Charter and canceled. Go RVing Launches Redesigned E-Newsletter. The Go RVing Coalition recently announced the January launch of its redesigned e-newsletter, designed to build consumer readership with several new and enhanced features that promote easier site navigation and an upgrade to link directly to audio/video content. To view the redesigned enewsletter or to subscribe, visit www.GoRVing.com. N.Y. Investment Firm Buys National RV Shares. A New York investment firm called Grandview LLC and managed by Millennium Management LLC has purchased 888,639 shares of National RV Holdings Inc., taking a bargain-basement-priced, 8.6% position in the holding company and its closed Perris, Calif., RV manufacturing firm, National RV Inc. Grandview paid $85,400 for the stock, according to a Securities and Exchange Commission statement filed by Millennium on Dec. 4. Cooper Industries Acquires Sure Power. Cooper Industries Ltd. announced Dec. 26 the acquisition of RV supplier Sure Power Industries Inc., as well as OMNEX Control Systems ULC and Roam Secure. Combined sales for the three companies in 2007 will be approximately $62 million, while the total purchase price is approximately $100 million. Cooper Industries Ltd. is a manufacturer with 2006 revenues of $5.2 billion. 6 6 FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 1/18/08 1:25 PM RVIA from page 7 economics, agriculture and genetic engineering at New Mexico State University, will provide a broad look at the U.S. economy; Jack Uldrich, president of the NanoVeritas Group, will outline RV industry trends; and Morton Kondracke, executive editor of Roll Call newspaper and a Fox News regular, will talk to members about what is going on in the nation’s capital. During the general membership meeting March 3, Coon and RVIA Chairman Carl Pfalzgraf will report on the association's activities for the last year, while Gary LaBella, RVIA's chief marketing officer, and B.J. Thompson, chairman of the RVIA Public Relations Committee, will update members on the RVIA public relations program. LaBella will be joined by Don Walters, co-chairman of the Go RVing Coalition, to report on the coalition's activities. Other topics likely to surface at the early March meeting: RV “Superhighway”: RVIA’s board at its March 1 meeting is expected to decide whether to implement an electronic system patterned after one used by the motorcycle industry that would allow dealers, manufacturers and suppliers to send encrypted information among themselves and streamline handling of warranty claims, among other things. A task force formed by the Go RVing Coalition's Committee on Excellence is presenting the proposal as the most salient byproduct of its recent push for improved industry quality in both products and service. “Hopefully, we’ll get an idea of what the cost will be and how we will deal with them,” Coon said. “Most people see the value of a system like that. The question is that, individually, some will be able to do it and others won’t be.” CAFE Standards: RVIA’s board is expected to receive a staff briefing on the corporate average fuel economy (CAFE) standards recently signed by President Bush requiring auto manufacturers to meet a fleet average of 35 miles per gallon by 2020. Pickup and medium-duty trucks used for towing RVs will be the target of a separate set of standards that will be established by the National Highway Transportation Safety Administration (NHTSA). Chinese Trade Mission: More details are expected to surface with regard to RVIA’s planned mid-May trade mission to China to attend “RV China 2008,” an international recreational vehicle show in Shanghai that will showcase both Page 25 trade and retail components. RVIA staff, were notifying members to see who would be interested in attending. RVIA President Richard Coon and Vice President of Standards and Education Bruce Hopkins last August attended the China Sports and Recreation (CSR) show as a prelude to the ’08 trade mission, which is being coordinated by the U.S. Department of State. RV Square Footage: Late last year, opposition from the Recreational Park Trailer Industry Association (RPTIA), the National Association of RV Parks S F C C a R t m d a l H 3 w p o S l m m a p n m Heavy Duty Trailer Hitch ✔ Air Helper Springs ✔ t 1 w t Premium Shocks? h e H m o Since you already have that vehicle up in the air installing a trailer hitch or air helper springs, why not really help your customer (and your bottom line) by dramatically improving the ride comfort and handling...simply install a set of premium Bilstein monotube gas pressure shock absorbers. No other shock manufacturer offers you the technological advancements, original equipment heritage, race bred performance and profitable range of vehicle coverage like Bilstein. This photo dramatically illustrates the size difference between the working piston inside a Bilstein monotube shock and one found in a typical “twin tube” shock. The Bilstein piston has 228% larger surface area than the conventional O.E. twin tube piston, offering greater sensitivity and superior vehicle control. ® ...the world leader in monotube gas pressure shock absorber technology. Bilstein Gas Pressure Shock Absorbers ThyssenKrupp Bilstein of America 800-537-1085 • bilstein.com FEBRUARY 2008 Go To: Go To: Go To: Go To: D and Campgrounds and a handful of state associations derailed (at least temporarily) efforts by RVIA to change federal law to allow fifth-wheels to be larger than 400 square feet. But this issue is far from settled, as RVIA’s board has given travel trailer manufacturers permission (effective Jan. 1) to increase the maximum size of their units from 320 to 400 square feet, which will put them on par with fifth-wheels. Suffice to say that the industry hasn’t heard the last of this debate. 6 .com .com .com .com User User Guide UserGuide Guide RVBusiness 25 Contents Contents Contents BILSTEIN CORP., CORP CIRCLE 126 ON READER SERVICE CARD 007-RVB_0802_LO_TOP u n C o t a b l b b a e s n S p C s 026-RVB_0802_LO_Louisville 1/18/08 3:44 PM Page 26 Louisville,Part The expansive Damon Motor Coach exhibit featured a number of motorhomes, including this eye-catching Tuscany. The company also debuted the industry’s first six slideout floorplan on the Tuscany (above). 26 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 026-RVB_0802_LO_Louisville 1/18/08 3:44 PM Page 27 rt Deux A second Helping of New Motorhomes and Towables Debuting at the 45th Annual National RV Trade Show ■ BY BOB ASHLEY ■ PHOTOS BY SHAWN SPENCE A ■ ■ FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 27 Contents Contents Contents 026-RVB_0802_LO_Louisville 1/18/08 4:12 PM Page 28 CrossRoads RV’s new fiberglass-and-aluminum Seville Monaco Coach Corp.’s Safari Cheetah large island kitchen. Retail prices start in the mid-$50,000 range. ■ Gulf Stream Coach Inc.’s Conquest Division’s B Touring Cruiser GX-2, a Bplus style minimotorhome built on a 14,050-pound GVWR Ford F-450 cutaway chassis. The Nappanee, Ind., builder is offering the GX-2 in two floorplans, one of which is a 31-footer with three slideouts. Retail prices start in the mid-$80,000s. ■ Pilgrim International Inc.’s first allcomposite RV designed in conjunction with TekModo LLC, Elkhart, Ind., which features walls,, roof and end caps p that are p plyy wood-free d f and d comprised i d off T TekModo’s kM d ’ CosmoLite dent-resistant thermoplastic fiber-reinforced composite. Additionally, Pilgrim and TekModo introduced the exterior surface SpectraLite, an impact-resistant, colorable composite enhanced with Dupont Surlyn. ■ Komfort Corp.’s entry-level Ridgecrest towable series, an aluminum-and-fiberglass line with six 20- to 30-foot travel trailer floorplans equipped with single slideouts and one 27-foot fifth-wheel layout. MSRPs on the Ridgecrest from Clackamas, Ore.based Komfort, which was attending the Louisville Show for the first time in six years, start at $17,000. ■ Keystone RV Co.’s Co ’s Break Away SURV, SURV an extension of the Passport series of lightweight travel trailers designed for towing by SUVs and half-ton pickup trucks. Available in one 29-foot floorplan, the laminatedfiberglass-and-aluminum Break Away features a 10-foot deep cargo area, full galley and bath, dual hide-a-way sofas, and an electric overhead “sit-’n-sleep” combination bed in the garage. MSRP: $23,000. ■ Coachmen Recreational Vehicle Co. LLC’s 30-foot Adrenaline Surge SURV travel trailer floorplan — positioned to 28 RVBusiness Go To: Go To: Go To: Go To: Gu Coa FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 026-RVB_0802_LO_Louisville 1/18/08 4:20 PM Page 29 appeal to a West Coast crowd that likes to bounce around sand dunes — featuring up to 19-feet, 7inches of cargo space to accommodate off-road sandrails. Space utilization in the wood-and-aluminum Surge is maximized with a drop-down electric queen bed, foldup sofas and a removable pedestal table. Fiberglass sidewalls are optional. MSRP: $27,860 ■ Four Winds International Corp. introduced a minimotorhome on an imported 11,030-pound GVWR Dodge Sprinter manufactured in Europe by Mercedes-Benz. Powered by a 154-hp, 3.0 liter V-6 turbo-diesel engine, g , the Sprinter p p platform is available l bl in the h Ch Chateau, F Four W Winds d and dS Siesta lines. The Four Winds International Sprinter, built at the Thor division’s plant in Elkhart, Ind., features one-piece fiberglass front and rear caps with steel-reinforced bulkheads and a single slideout that can be configured with any one of three dinette setups. MSRP: $91,700 ■ Carriage Inc.’s new triple-slide floorplan in its yacht-inspired 2008 Domani fifth-wheel line, now available with a full-body automotive paint option. “We can paint it any color the customer wants,” explained Don Emaheiser, vice president of sales and marketing. The upscale aluminumand-gelcoat-fiberglass Domani is available in three 30- to 32-foot floorplans, featuring LED lights, frameless windows and chrome accents. MSRP: $83,000. ■ Jayco has been building its Seneca line of “Super C’s” for five years, and in 2006 the company “grew” its offerings with a 36-foot version built on the 22,000-pound GVWR Duramax chassis. At Louisville, it introduced the line’s first full-wall “Mega-slide,” stretching for 22 feet and fitted with a Flexsteel sofa/dinette ensemble. “You would typically see this in a half-million-dollar coach,” said Paul Gardner, director of product development. The 36MS also features French doors to close off the rear master bedroom, and is the first Jayco coach built with two bathrooms. MSRP: $155,000. 6 Coachmen Recreational Vehicle Co. LLC’s Adrenaline Surge SURV Four Winds International Corp.’s Siesta FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 29 Contents Contents Contents 030-RVB_0802_LO_Kempthorne 1/18/08 1:27 PM Page 30 ‘This is America the beautiful, and yo that this next generation understand s U.S. Secretary of the Interior Dirk Kempthorne may have come late to the party — having held the job only since the spring of 2006 — but he’s viewed by most as a breath of fresh air for America’s parklands W ith just months to serve in 2006 on his second term as Idaho governor, Dirk Kempthorne's political career took an abrupt turn when he was asked to be Secretary of the Interior for the Bush Administration's final 21⁄2 years in office, succeeding Colorado’s Gale Norton. “Dirk understands that those who live closest to the land know how to manage it best, and he will work closely with state and local leaders to ensure wise stewardship of our resources,” President George W. Bush said in the spring of 2006 in announcing Kempthorne's nomination. “Dirk has a long and abiding love for nature.” Overseeing 500 million acres of land — about 20% of the country’s land mass — the Department of Interior (DOI) is comprised of the National Park Service, U.S. Fish and Wildlife Service, Bureau of Land Management and Bureau of Reclamation, among other units, all of which play an important role in American recreation. An avid recreationist and a conservative Republican with regard to economic and conservation issues, Kempthorne took over an agency criticized for park maintenance, Alaskan oil exploration, Endangered Species Act enforcement and “managerial irresponsibility” that led to conflicts of interest and cronyism. So, the arrival at DOI of Kempthorne, who introduced himself in late November as an “RV enthusiast'” to some 1,200 attendees at the Recreation Vehicle Industry Association’s (RVIA) Outlook 2008 Breakfast at the 45th Annual National RV Trade Show in 30 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 030-RVB_0802_LO_Kempthorne 1/18/08 1:28 PM Page 31 you are the stewards that will ensure d s it, appreciates it and enjoys it.’ Louisville, Ky., was hailed by some as a refreshing change. Within a year of his appointment, he created an ethics policy to make Interior “a model of an ethical workplace.” Also, with Kempthorne championing the national parks among the Bush administration’s budget makers, the $2.4 billion proposed to be spent this year by the National Park Service contains the largest increase in history. Kempthorne’s ascension to national notoriety probably didn’t come as a surprise to those who had known him through the years. The photogenic 56-year-old California native, a University of Idaho graduate, became mayor of Boise in 1985 and was elected to the U.S. Senate in 1992, serving one term before leaving Washington to run for Idaho governor in 1998. During his breakfast presentation at the RV industry’s annual trade show in November, Kempthorne touted the attributes of his new National Park Centennial Initiative (2016) and warmed up to the topic of RV travel — a pastime he said he has enjoyed discussing on occasion with another fellow motorhome aficionado on the national stage, Supreme Court Justice Clarence Thomas. “I absolutely love being outside with RVs,” said Kempthorne, a voice of concern about dropping national park visitation levels who has owned three motorhomes — the first being a used 1990 Hawkins. His current coach, a 2003 Fleetwood Expedition diesel pusher nicknamed “Freedom” by his wife, Patricia, has 15,000 miles on the odometer. In retrospect, Kempthorne’s primary message to the RV industry echoed that of the American Recreation Coalition (ARC), a Washington-based organization which was partly responsible for his presence in Louisville: That America’s young people have become disconnected from the outdoors by spending too much time inside playing computer games and watching TV. “We just have to be creative to encourage children to get outside,” he said, pointing to a U.S. Surgeon General’s report suggesting that children born today, on average, won’t live as long as their parents. “That’s the first time in our society that has ever been forecast,” added Kempthorne, a motorcyclist who’s ridden in mass events in Washington, D.C., and Sturgis, SD. “All of us can and need to do something about that. We need to encourage our children to put down the Blackberry and go pick wild berries, to stop channel-surfing and try windsurfing, to put down that podcast and go cast a line. You can help reconnect the American family with the outdoors. You can help get children outdoors. This is America the beautiful, and you are the stewards that will ensure that this next generation understands it, appreciates it and enjoys it.” Following the breakfast, Affinity Media Group Publisher Bob Livingston and RV Trades Publisher Sherman Goldenberg met with Kempthorne to talk about his role in recreation in America. RVB: In the time that you have headed up the Department of Interior — since March of ’06 — what have you viewed as being your mission? Kempthorne: I have likened it to being the relief pitcher coming in in the seventh inning where there are runners on base and I need to close things out. I want to have a strong finish. Those last innings are when you win or lose. I want to take the initiatives that have been launched and I want to make sure that we are successful. We are working with a variety of things. There's a major initiative in the president’s ’08 budget — the National Park Service Centennial Challenge — which is the largest operating budget in the history of the parks. RVB: What, in the big picture, will this enhanced budget do for DOI in particular and Americans in general? Kempthorne: For example, it will allow us to bring on 3,000 additional seasonal park rangers. There’s been a 10-year decline. The people, the citizens, are going to see more rangers in the parks. It will allow us to bring on 1,500 additional full-time rangers and other personnel who are critical. It also includes the component that we call the Centennial Challenge. That is, for (each of) the next 10 years — leading up to the 100th anniversary of the national parks in 2016 — we would have a fund of $100 million that we would match dollar-for-dollar with the private sector. When you take the operating budget and the $1 billion in match, and then the other $1 billion from the private sector, that’s an infusion of $3 billion in our national parks leading up to the centennial — so that when we get to the centennial, that’s not when we roll out a master plan and have a one-day event. We’re having a 10-year roll up that is going to be a celebration of tremendous programs and projects that are new and have been put in the parks. RVB: Is that enough, realistically speaking, to make a difference? Kempthorne: I wish it were. You can never do enough. But the proponents and supporters of this said it was a tremendous idea but thought we’d be lucky to attract $20 million from the private sector. We attracted signed letters of financial commitments for $301 million dollars. And that’s only the beginning. RVB: Where’s that money coming from — corporations and businesses or other entities? Kempthorne: The Pew Charitable Trust (named for Sun Oil founder Joseph Pew in Philadelphia) for one. The second day that Rebecca Rimel, the CEO, Kempthorne was a keynote speaker at the Outlook 2008 breakfast, kickoff to the 45th National RV Trade Show. FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 31 Contents Contents Contents 030-RVB_0802_LO_Kempthorne 1/18/08 1:28 PM Page 32 “I’m a conservative who is pragmatic. I like to get the job done. You don’t surrender your principles, but you determine that with the proper attitude, you can probably find a solution.” — Dirk Kempthorne heard we were going to do this, she made an offer. The Ben Franklin Museum in Philadelphia is in need of renovation. It’s outdated with its technology and it’s tired. She said that Pew will put in $6 million, and she’s already talked to Pennsylvania Gov. (Ed) Rendell and the private sector. They will (each) put in $6 million if the federal government will put in $6 million. That’s an $18 million upgrade of the Ben Franklin Museum. That is tremendous. Another example of matching funds is in Grand Teton National Park. This August we opened the Craig Thomas Visitors Center. It is a magnificent center. The architecture is great. But as one of the members of the foundation said, because the foundation raised half the money while the federal government matched the other half, the center was so much more magnificent because it was done in partnership. If either one of us had done it alone, it would not be nearly what it is today. Interestingly enough, they also were going to include an auditorium theater as part of the project, but because of the process that was required by the park service, they said they couldn’t afford it. I told them that if they would put the problem in a onepage memo, and also the solution, I’d be interested in seeing it. They provided that and within one week I had that decision reversed and the park service is now building the auditorium theater. RVB: Some would view you as a breath of fresh air since you've entered the picture, feeling generally that the parks weren’t getting a lot of attention. Do you view yourself that way? Kempthorne: I view myself as an advocate that has a passion for this. Initially, they were going to celebrate the 90th anniversary of the national parks. I said, ‘No, no, no! We need to think about the 100th anniversary, and we need to make it real.’ So, it’s underway. It’s exciting. It has reenergized the National Park Service. RVB: Did President Bush ask you in so many words to bring more focus to the national parks? Kempthorne: When he asked me to take this job, he said that he wanted me to reach out and build 32 RVBusiness Go To: Go To: Go To: Go To: bridges because there had been too much polarization taking place. So, we sat down in a one-on-one conversation a few months after I joined this administration and we talked about the parks. We talked about leading up to the 100th anniversary. So, on Aug. 25 at Yellowstone, where we celebrated the 90th, I read a directive I had received from the president launching the Centennial Challenge. The president loves the national parks; the first lady loves the national parks. RVB: Will some of the money that is going to be spent to improve the parks during the next 10 years be directed toward the development of recreation vehicle facilities? Kempthorne: It will be a combination. There will be areas where you are simply going to have tents. There are areas that you are going to have different activities for recreation, but there will also be areas for the RVs. I’ll give you a specific: Just two years ago, when I was governor, I was able to get the largest increase ever in the operating budget for the Idaho state parks. Included in that was a new RV facility that I felt we needed. We met with architects and talked about it. It’s in Ponderosa State Park near McCall, Idaho, about 100 miles north of Boise. It’s a beautiful drive. But we now have a number of pull-throughs that accommodate 70 feet for a fifth-wheel and a truck, all with full utility hookups, including cable. Now, why cable? Because we left in most of the trees. People who want to use their satellite dish are not going to be able to get the satellite coverage. So we simply put cable underground. Before we actually went in and did this, I took a particular section and told them to line it out with traffic cones. Then we borrowed a Class A and a fifthwheel with a pickup truck so that I could see if you could actually make the turns in the campsite. Turns out, you couldn’t, so they modified the blueprint to take into account the turning radius of these vehicles. RVB: Do you get some opposition when you make these large sites with all these modern conveniences? Is that not, in the views of some people, what the parks are supposed to be? Kempthorne: If that's all that we were doing, but it’s not. We are putting a great emphasis on trails, and areas that you are just simply going to have to hike in and you’ll use your tents. You have to realize, the parks have a multiple purpose. I’ve seen some groups that will volunteer to improve an area, even though their particular activity will never benefit from it. They just want to say, ‘We’re good neighbors.’ A group of volunteer RVers may come in and put in a trail system that no RV is ever going to be on. RVB: Any unusual motorhome experiences you’d care to relate, given your position with regard to so many of America’s recreational lands? Kempthorne: While on my way to the Fiesta Bowl last year (2006) — when Boise State beat Oklahoma in one of the greatest college football games ever — I had to drive my motorhome over the Hoover Dam, which is part of Interior’s jurisdiction under the Bureau of Reclamation. Well, there’s a security protocol. If you are going to take an RV across the dam, you have to have an inspection. We went to the inspection lane, and the officer would point to certain bins and just randomly ask ‘Would you open this, please?’ And then he came on board to open this and that. We went through the whole thing, and when we were finished, I pulled out and then pulled over and got out again. (Laughing) There was an e-mail that I later found (about that episode) describing an average-looking motorcoach arriving for inspection that they took through the routine inspection process and did what they usually do. Then the e-mail said the driver did an unusual thing in that he pulled over, exited the vehicle and approached the officers who were — and I quote — “braced for the worst.” “Then he just put his hand out and said, ‘I’m Dirk Kempthorne, and I wanted to compliment you on your professionalism and friendliness. I just wanted to see what citizens go through.’ That was the gist of the e-mail. RVB: People call you conservative, yet you take some positions that you don’t often think a conservative individual would take. What is your description of yourself politically as it relates to that? Kempthorne: I’m a conservative who is pragmatic. I like to get the job done. You don’t surrender your principles, but you determine that with the proper attitude, you can probably find a solution. What I’ve found is that with many polarizing issues, if I can sit down and have a discussion with people about what they really wish to achieve — and leave the rhetoric aside — often times there is a result. That’s my approach to things. RVB: You know, your resume looks like a string of phenomenal successes — you’ve done well everywhere you've gone — to the extent that one might think you were future presidential timber. Cutting to the chase, is it possible? Kempthorne: This year, of course, the field is very crowded. I don’t now what is next. But I always keep all my options open. 6 FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 033-RVB 02 PG 33 ZF SALES 1/17/08 4:18 PM Page 33 ZF technology - the intelligent choice. ZF Independent Front Suspension (IFS) systems are engineered for premium performance. 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ZF Commercial Suspension Systems and Components LLC, 946 Quality Drive, Lancaster, SC 29721, 803-416-8999 ZF COMMERCIAL SUSPENSION SYSTEMS & COMPONENTS, CIRCLE 121 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 034-RVB_0801_LO_Accommodat 1/18/08 1:58 PM Page 34 Century 21 CAMPGROUND ACCOMMODATIONS OF THE FUTURE — L AST OF A 3-PART SERIES ST THE ■ BY JEFF CRIDER NO RV PARK OR RESORT CAN BE ALL THINGS TO ALL PEOPLE, BUT THERE ARE SEVERAL BASIC CONCEPTS THAT EVERY PARK OPERATOR NEEDS TO ADDRESS TO BE SUCCESSFUL — REGARDLESS OF WHICH MARKET SEGMENT THEY SERVE 34 RVBusiness Go To: Go To: Go To: Go To: What will campground and RV resort operators need to do in the future to best position themselves for long-term success? Should they emulate what Equity LifeStyle Properties (ELS) has done with Tropical Palms FunResort, a luxurious 585-site park in Kissimmee, Fla., which features a combination of premium RV sites and park models? Or is ELS’s Lake George Escape Camping Resort a better model, with 400 full hookup sites, 147 tent sites and 44 cabins in the heart of the Adirondack Mountains of New York? Are high-end, condo-style resorts a better approach? As you probably know, FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 034-RVB_0801_LO_Accommodat 1/18/08 1:59 PM Page 35 S Contemporary campgrounds increasingly must mean more things to more people. Adding activities and features is looked upon as an investment aimed at generating repeat business. Another emerging trend is the desire to reinvent campgrounds as “destination resorts,” whether it’s accomplished by locating the facility in an unusual location — Sunshine Key RV Resort & Marina (left), an ELS property, is on a 54-acre island in the Florida Keys that offers beachfront sites — or by creating an invitiing atmosphere. The aptly named Tropical Palms Fun Resort in Kissimmee, Fla., (above) rings its pool with colorful umbrellas and lounges and a poolside cafe — and is also adjacent the Walt Disney World Resort. Recognizing, as Thomas P. Heneghan, president of ELS, put it, that “these people got out of the house to go do something,” a number of resorts also boast a growing array of on-site activities for young and old alike. ELS properties often include such features as sand volleyball (right), softball fields and more. there are many upscale parks across the nation selling their campsites in the six-figure range, including Bob Lee’s Desert Shores Motorcoach Resort in Indio, Calif., Pelican Lake Motorcoach Resort in Naples, Fla., and numerous other properties, including several of the more than 20 upscale parks developed by Bermuda Dunes, Calif.-based Outdoor Resorts of America. And what about family-focused resorts? Do Kampgrounds of America Inc. (KOA) and Leisure Systems Inc. (LSI) offer the best templates for family parks in the country? For example, is LSI’s Jellystone Park in Warrens, Wis., with its 50,000-square- foot indoor water park and 25,000-square-foot skate park, a model for the future? Will there continue to be a market for well-run transient parks like High Plains Camping in Oakley, Kan., or is the trend in parks moving inevitably to upscale resorts that are destinations in themselves? The truth is, all of these parks, while serving different demographic segments, represent some of the best parks the outdoor hospitality industry has to offer. They each exemplify the types of accommodations that could be templates for successful private parks in the future. FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness Contents Contents Contents 35 034-RVB_0801_LO_Accommodat 1/18/08 1:59 PM Page 36 B ut while these parks do provide some of the best facilities, amenities and service in the private park sector, the owners and operators of these facilities also realize that they can’t be all things to all people. There is, in short, no single template for park operators to use to create the perfect park for 21st-century campers and RV enthusiasts. “Not every RV customer is looking for the same thing,” said Thomas P. Heneghan, president and CEO of ELS, the Chicago based Real Estate Investment Trust that owns and operates more than 300 resorts in 30 states and British Columbia with more than 110,000 sites. As a result, he said, park operators need to tailor their facilities to suit the needs of the demographic group they are best able to both accommodate and entertain. Indeed, the outdoor hospitality market is highly segmented, both geographically and by product type. Many ELS parks, for example, cater to snowbirds and other RV travelers who spend weeks or months on the road. Consequently, ELS parks not only provide big sites with a fully array of onsite amenities — such as swimming pools, exercise rooms, tennis courts and even golf courses in some cases — but ongoing activities such as arts-and-crafts, computer classes and professional entertainment. ELS, like many other destination- and seasonal resorts across the country, is also actively tapping Americans’ growing demand for affordable second homes, and the company has found that it can offer an affordable vacation-home product by selling park models and manufactured housing in some of the most sought-after destinations in the country. Other resorts, meanwhile, are finding that some of the more affluent RV owners will purchase their campsite — partly to guarantee that they have a site and partly because of the exclusivity and upscale amenities that condo-style resorts can provide. And while Outdoor Resorts of America is probably best-known for pioneering this niche of the industry, growing numbers of companies are developing these condostyle parks across the country. And the concept is no longer limited to the high end of the market. Indeed, while resorts like Pelican Lake Motorcoach Resort have been known to sell their sites for $300,000 and up to Class A motorhome owners, other resorts — such as Elite Resorts of America, based in Salt Springs, Fla. — are developing properties that accommodate towable and motorized units as well as park models for roughly $60,000 to $100,000. Meanwhile, vast numbers of independent and franchise parks, including those in the KOA and Yogi Bear (LSI) networks, are increasingly finding that they can make their parks “destinations” for families by providing more activities and entertainment for their guests. However, there will still always be a need for parks like High Plains Camping and others that simply cater to travelers looking for a clean, safe place to spend the night. But while there is considerable segmentation in the outdoor hospitality market, park operators told RVBusiness that there are several basic things that every park operator needs to do to be successful, regardless of which market segment they serve. 36 RVBusiness Their advice? ■ MARKET YOUR SITES BOTH ONLINE AND THROUGH ESTAB- LISHED CAMPGROUND DIRECTORIES. “You really need to make sure that your campground is being marketed as thoroughly as possible,” said Vic Nolting, vice chairman of Milford, Ohio-based LSI, which franchises Yogi Bear parks. “The Internet is becoming more and more a part of how you market your park, but certainly you also need the national directories and the state directories.” Campground websites, he added, need to be “easily navigated, colorful, warm and friendly.” Websites should also make it easy for travelers to contact the park directly. “Make it easy and simple to do business with you,” Nolting said. ■ MAKE SURE YOUR SITES ARE EASILY ACCESSIBLE AND HAVE A FULL RANGE OF HOOKUPS. “You better have infrastructure,” said Heneghan of ELS. “Today’s RVers are looking for the convenience of full hookups, meaning the right electric service and sewer- and water hookups.” Fifty-amp electrical hookups are also essential. “Everybody should have them,” said Bob MacKinnon of Murrieta, Calif.-based MacKinnon Campground Consulting. “But there’s a lot of parks out there that don’t have 50-amp hookups. If you want to attract and service a particular portion of the market, that’s a basic requirement. Some parks might think they don’t need 50-amp hookups, but most parks need to have a few 50-amp sites.” Nolting said he also sees a movement to provide more sites with concrete pads as well as nicer patio furniture and barbecues. ■ PROVIDE CLEAN, WELL-MAINTAINED RESTROOMS. “All parks need to have clean, serviceable restrooms. It’s the number-one satisfier or dissatisfier of the camper’s experience,” MacKinnon said, adding that the camper’s experience starts at the restrooms and works all the way through the park. “They don’t have to have gold-plated fixtures and granite countertops,” he said. “They just need to be well maintained, neat and clean … with no rust stains in the sinks. It’s the little details that tell you whether the place is clean or well maintained.” ■ OFFER CABIN ACCOMMODATIONS TO BROADEN YOUR MARKET BASE. Whether site-built or park model, resorts of the future will increasingly need to offer cabins to be successful. “We see a very, very strong indication that cabins — full-service cabins with kitchenettes, showers and restrooms — and park models will continue to be a trend because it gives you a terrific opportunity to get the non-traditional camper into your park,” Nolting said. “We’re seeing it all through the Jellystone Park system. People are systematically adding cabins as demand dictates it. It’s a matter of arithmetic. You know exactly what it’s going to cost to put it in there. It’s usually a two-year payback.” And while the traditional camper is still the base of the campground business, “the fullservice cabin in a campground is a wonderful twist on the camping experience. It appeals to a whole lot of people.” Indeed, park models are increasingly being used by independent private parks and campground chains for everything from rental cabins to high-end accommodations. Seasonal parks, or those with significant summer or winter business, FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 034-RVB_0801_LO_Accommodat 1/18/08 1:59 PM Page 37 also use park models to generate year-round lease revenue from consumers who use their units as weekend retreats or seasonal vacation cottages. ■ DEVELOP CONCIERGE SER VICES. “This isn’t necessarily like you’d have at the Hyatt, where you have a man in a three-piece suit sitting behind a desk and a computer,” Nolting said. “But the staff of the campground should be totally tied in with what’s going on in the area. Or, there should be an information center with all of the local shopping and dining options.” These types of services are particularly needed by parks that are shooting for extended stays. “Our average stay in the Yogi system is a little more than three days. They’re going to love the experience. But they’re also going to use the park as a base to do other things,” Nolting said. ■ CREATE ACTIVITIES AND ENTERTAINMENT. While this isn’t necessary for parks that cater to travelers who are simply looking for a place to spend the night and move on, providing a broad range of activities — from family craft events to outdoor movies to water recreation amenities such as waterslides and spraygrounds, and rental equipment such as bikes and boats — is becoming increasingly important for parks as they attempt to increase the number of nights that campers spend at their parks. “I would say that as a percentage of business, that’s where the growth is,” Nolting said. “In terms of developing the product from an amenity side, (there is growth) in (parks that install) water spraygrounds, that enlarge the pool experience or put in a water slide next to the existing pool.” Many parks, in fact, are hiring professional musicians and comedians to provide weekend entertainment. Many are also hiring activity directors to develop everything from family activities to craft and computer classes. ELS is helping its guests organize everything from golf- and tennis tournaments to professional-enrichment programs with guest speakers who address a variety of health and business topics. “These people got out of the house to go do something,” Heneghan said. “If you allow them the facilities and the opportunity to do what they’re looking for, you’re going to have a pretty loyal customer base.” ■ PROVIDE WIRELESS INTERNET OR WI- FI SER VICE. “Wi-Fi is becoming more and more in demand,” MacKinnon said. “A majority of campers are traveling with computers and they like sitting by the campfire or their RV or tent and going online. The issue with Wi-Fi is, it’s got to be free. Parks need to build it into their rate structure and offer it as an amenity.” Many parks, in short, are finding they need to offer higher-quality facilities, amenities and activities than ever before. But these things are only half of what’s required to address the needs of 21st century campers. Equally important is the quality and training of their staff. “You can design the best place in the world,” MacKinnon said, “but it takes people to make it a reality — and if you don’t deliver great service or have a great atmosphere, you’re not going to build return business. The hiring and training of people is absolutely critical. The biggest opportunity we have in our industry is to raise the bar on how we train our TOP: The main lodge at Lake George Camping Resort, Lake George, NY, serves as a popular gathering point for the facility. MIDDLE: Aside from its 409 campsites, Sunshine Key offers outdoor enthusiasts a 200-slip marina. BOTTOM: Whether site-built or park model, the resort of the future will increasingly need to offer cabins to be successful. “You know exactly what it’s going to cost to put there,” said Vic Nolting, vice chairman for LSI. “It’s usually a two-year payback.” FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 37 Contents Contents Contents 034-RVB_0801_LO_Accommodat 1/18/08 1:59 PM Campgrounds staff. It’s more than guest service. It’s guest relationships.” That viewpoint is shared by Grant Miller, president of Affinity Group Inc.’s Club Division, which includes the Good Sam Club, Camp Club USA, Coast to Coast Resorts and Golf Card International. “I think the most important thing is to have tremendous hospitality, creating a Marriott or Ritz Carlton-type experience, where it’s consistent, where it’s part of the culture of the staff,” he said. “If you create a warm, welcoming, service-oriented attitude toward the visitors, that will go such a long way to creating an experience for people that will bring them back.” Trouble is, many park operators actually try to cut corners with staff by hiring inexperienced people to interface with their guests. “Of all the things that drive the business, the front-desk staff is easily the most overlooked,” said Randall Hendrickson, president and CEO of The Intrepid Group LLC, a Scottsdale, Ariz.-based campground management and consulting firm. “Parks have to have professionals at every level who have the customer serv- Page 38 ice skills, salesmanship and demeanor to extend the guest’s stay and create a positive experience.” “Marketing begins at the front desk,” Hendrickson continued. “Parks will sweat over the composition of their ads and congratulate themselves on a job well done, when they need to spend much more time and effort making sure they deliver a professional product when the guest arrives. We’re not perfect. This is something I preach to my managers. You are only as good as what the guest sees when they show up. We have to be strong at the front desk. The whole thing hinges on how good you are at that first point of contact … but all too often, there’s a person who looks like he’d rather be someplace else. And if they’re not interested in being there, they’re not going to be telling you about things to do in the area.” Staff needs to be trained to connect with the guest on a personal level. And the closer the park operator’s relation- MaxxFanTM Is the ONLY RV Ventilator on the market with a Built-In Rain Cover! AND... It’s Fully Remote Control! MAXX AIR VENT, CIRCLE 119 ON READER SERVICE CARD Its unique patented rain shield moves into position, protecting your RV’s interior. One Touch Does It All! 38 RVBusiness Go To: Go To: Go To: Go To: ship with the guest, the better that park will be able to meet or exceed the customer’s expectations. That’s why guest surveys are important: to bring management in tune with the needs of guests on an ongoing basis. “I don’t believe there’s a one-size-fitsall approach,” said MacKinnon, who provides a guest-survey service through GuestReviews.com for members of the National Association of RV Parks and Campgrounds (ARVC). “If something’s important to your guest, it ought to be important to you. If it’s not important to your guest, it shouldn’t be important to you.” This is precisely why not every park necessarily needs to be upscale or invest in infrastructure, amenities or activities to the same level. Indeed, to be successful, MacKinnon asserts, parks simply need to make sure they do a good job of covering the basics that are sought after by their guests. That, MacKinnon noted, means four things: a clean park, a safe environment, friendly staff and value for the experience. “There are a lot of parks that may not have great facilities. But they cover the basics. They provide what their customers are looking for and they provide great service,” MacKinnon said. In fact, while aesthetics and amenities are important, everything really boils down to the guest experience. “What’s the difference,” MacKinnon asked, “between Campground A and its 50amp plug and Campground B and its 50-amp plug? What makes park A different from Park B? It’s that intangible stuff. ‘Did I feel welcome when I checked in?’ ‘Is the park neat and clean and well maintained?’ ‘Did I feel safe in this environment?’ You have to have friendly people and a nice, clean environment and provide a safe and secure place for people to stay at a good value. That’s what keeps people coming back.” 6 FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 039-RVB02 PG 39 SPADER 1/17/08 4:17 PM Page 39 The difference between seeing the possibilities and knowing which is right for your business. 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BEST KNOWN FOR ITS ALINER LIGHTWEIGHT TOWABLES, THE COMPANY INTRODUCED ITS FIRST CONVENTIONAL, ENTRY-LEVEL TRAVEL TRAILER AT THE RECENT NATIONAL RV TRADE SHOW ■ BY BOB ASHLEY ■ PHOTOS BY SEAN STIPP W ith Columbia Northwest Inc.’s headquarters in the small southwest Pennsylvania community of Kecksburg, Pa. — known internationally for a 1965 UFO incident — it might seem odd that the company’s largest dealer is in Reykjavick, Iceland. “They sold the largest number of Aliners last year — about 50 units,” said Ned Collins, Columbia Northwest’s new president and CEO. “The Aliner is small and can be towed by most of the European-built cars, it’s well built, and because it has solid walls, it’s very easy to heat so it allows them to use it year around.” Aliner’s popularity in Iceland notwithstanding, an equity group headed by Collins that bought family-owned Columbia Northwest from the Tait The Classic, family last April one of six intends to Aliner models aggresavailable. sively 40 RVBusiness Go To: Go To: Go To: Go To: expand the manufacturer’s North American dealer base during the next five years Toward that end, Columbia Northwest introduced the T.R.E. (“Travel, Ramble & Explore”) travel trailer and increased its dealership outlets by nearly 10% during November’s 45th Annual National RV Trade Show in Louisville, Ky. Columbia Northwest founder Ralph Tait started building Aliner trailers in a Bend, Ore., garage in the 1970s, for the first couple of years as a hobby. “He'd build one, drive it around to RV shows and dealerships until he sold it and then he’d build another one,” Collins said. “The company had significant growth in the late 1980s and mid-1990s.” Originally from Pennsylvania, Tait, joined by sons Dave, Mark and Doug, founded Columbia Northwest in 1984 and within a couple of years returned to their home state. With a mineral springs that still flows below, the current headquarters building was originally built in the early 1900s as a day spa, drawing clients from Pittsburgh, 40 miles to the northeast. Collins came to Columbia Northwest when Pennsylvanian Growth Fund LLC, which acquires small- to medium-sized companies, quietly purchased 23-year-old Columbia Northwest in April 2007. “We did not want to make a bunch of buzz initially,” Collins said. The low-key approach in which Columbia Northwest changed hands is emblematic of the Aliner itself, a small and lightweight towable that hasn’t changed dramatically since Tait first designed it. “The Aliner represents the majority of our product,” Collins said. “The concept has remained the same for 30 years.” Although classified as a folding camping trailer, FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 040-RVB_0802_LO_OEM_Aliner 1/18/08 1:29 PM Page 41 Aliner’s fiberglass sidewalls — which set up almost automatically — appeal to others than the popup market’s traditional entry-level campers. “Most of the people who buy our products are not comparing them to the tent trailer,” Collins said. “Most of our owners have actually owned larger travel trailers. They are trending down to something smaller than can be towed by a small vehicle.” At the same time, Collins professed, Aliner has a specific niche that sets it apart from traditional RVs, too. “We are not Ned Collins took over as president and CEO of Columbia Northwest Inc. after the company was purchased by Pennsylvanian Growth Fund LLC C in April 2007 and has led the expansion of its dealer base and product line. VITAL statistics COMPANY: Columbia Northwest Inc. (www.aliner.com) LOCATION: Kecksburg, Pa. FOUNDED: 1984. KEY PERSONNEL: Ned Collins, president and CEO; Bill Horvath, COO; Nancy Miller, director of sales; Cindy Linderman, bookkeeper; Chris Albright, Mike Shaulis, Michelle Pritts, customer service team. PRIMARY PRODUCTS: Hard-sided “A-frame” folding camping trailers and small conventional con entional travel tra el trailers. trailers PHYSICAL FACILITIES: 118,000 square feet on 30 acres in Kecksburg EMPLOYEES: about 65. , Go To: Go To: Go To: Go To: p .com .com .com .com FEBRUARY 2008 User User Guide UserGuide Guide RVBusiness 41 Contents Contents Contents 040-RVB_0802_LO_OEM_Aliner 1/18/08 1:29 PM Page 42 TOP: Worker Bill Riggs prepares an Aliner for A-wall installation. ABOVE: Ted Hall and Riggs separate roof panels to allow the A-wall to be fitted. RIGHT, TOP: As seen by this interior, while the lightweight Aliner is small enough to be towed by even a six-cylinder-powered family sedan, the units are wellequipped. RIGHT, BOTTOM: Ned Collins discusses production issues with Sean Smith, Columbia Northwest’s line supervisor. PRODUCT Columbia Northwest Inc. primarily builds unique A A-frame, frame, hard hardsided folding camping trailers, trailers but also has ventured into small, small more traditional t diti l travel t l trailers. t il Columbia Co u b a Northwest’s o t est s laminated a ated fiberglass be g ass ALINER popup iss available in four lengths ranging from nine to 18 feet with two or three th floorplans fl l in i eachh model, d l iincluding l di ddouble bl di dinette, tt rear sofa or rear mattress. The nine nine-footer footer, with a dry weight of 450 pounds, pounds is designed to accommodate one person and can be towed by a heavy-duty heavy duty four-wheel ATV and some motorcycles. y MSRPs range from $4,000 $4 000 to $18,000. $18 000 At the 2007 National RV Trade Show in Louisville, Louisville Ky., Ky Columbia Northwest introduced the T.R.E. conventional, entrylevel travel trailer with one 15 15-foot foot and two 18 18-foot foot floorplans. The T.R.E. T R E is six inches wider than the Aliner, Aliner features heavier i t i wallll construction interior t ti andd iis equipped i d with ith a bbath th with ith a ffullll tub u versus e sus thee Aliner’s e s wet e bath. a MSRP: S $$11,500. ,500 42 RVBusiness Go To: Go To: Go To: Go To: a competitive substitute for travel trailers, but a unique product sought after by a small group of people. Our engineering is what makes the Aliner unique — and our focus on lightweight products.” Nonetheless, Columbia Northwest dipped a toe into the traditional travel trailer market with the recent introduction of the T.R.E. conventional travel trailer. “Our travel trailer allows dealers to carry the same type of product that appeals to the same kind of customers as the Aliner,” Collins said. Currently, Columbia Northwest products are being sold at 80 RV dealerships with a strong presence on both coasts and Canada. (An independent sister company also builds Aliners in Australia.) Columbia Northwest’s five-year goal is to have enough dealers for owners to find service outlets without having to drive more than 200 miles. Seven new dealerships signed up during the Louisville Show. “A lot of our new dealers are guys who have been in bigger and heavier stuff and want to take on products that are more attuned with what’s happening in the market,” Collins said. “We’d like to double the number of dealers that we have right now, particularly where we are underrepresented in the midwest and plains states.” Because of its light weight, Aliner is particularly well positioned for the current marketplace, Collins said. The heaviest Aliner weighs 2,100 pounds. “We are one step beyond where the market is headed,” Collins said. “Most of the market is targeting 3,000 to 5,000 pounds. Our typical customer is an engineer driving a Subaru Outback. They like the uniqueness of the design and the quality of the construction, and it’s different from what they see in the campground. “I see demand for our type of product growing during the next three to five years,” he added. “Chevy Suburban owners probably won’t be looking for an SURV again when they buy their next vehicle. And if they want to keep camping, they are going to have to downsize the camper, too.” 6 FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 043-RVB 02 PG 43 AFFINITY 1/18/08 1:21 PM Page 43 What goes into a successful ad campaign? Targeted publications from Affinity! Only Affinity lets you aim your advertising message at exactly the people you want to reach. Want RV buyers and owners to recognize your brand and appreciate your innovations? Affinity has consumer magazines and buying guides that appeal to every market segment. Want RV manufacturers, distributors, and dealers to know how a partnership with you makes sound business sense? Affinity has the leading RV trade magazine delivering news – and credibility – every month. So put Affinity publications into your ad plan. And what you’ll get out, is success. Affinity 2575 Vista Del Mar Dr., Ventura, CA 93001, Tele: (805) 667-4100, Fax: (805) 667-4379, E-mail: [email protected] Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:26 PM Page 44 TOP OF THE NEWS Dave Altman from page 7 Recreation Vehicle Dealers Association’s (RVDA) board of directors (1977-78), having chaired RVDA’s National RV Rental Association (RVRA) when it was established, and was current chairman of the RV/MH Heritage Foundation Inc.'s board of directors in Elkhart, Ind. 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THL K "L .ORTHLAKE "LVD "LVD D 3T 3TE s!LTAMONTE3PRINGS&, !LT !LTAMONTE T 3PRINGS 3P I G &, 3PRINGS Call 407-358-2000 today or visit us on the web at www.sys2.com! 44 RVBusiness Go To: Go To: Go To: Go To: ny at the newly constructed Hall of Fame facility before a dinner crowd of 450. The sixth recipient of RVDA’s prestigious James B. Summers Award, he was inducted into the RV Hall of Fame in 2000. Of course, the accolades, upon word of Altmans’ death, were effusive from national trade groups like RVDA, whose leadership, like rest of the industry, had been keeping track of his condition through Joe Altman’s blog postings ever since Dave was first hospitalized on Thanksgiving morning for emergency brain surgery that wound up involving a cancerous brain tumor. “Dave Altman was a true hero of the RV industry,” said RVDA President Mike Molino. “Dave never said ‘no’ to any worthy cause, whether it was RVDA, the RV Learning Center, the RV/MH Hall of Fame or other joint industry, community, or church efforts. He organized and was the first committee chairman of the RVDA convention. “In 1976,” added Molino, “Dave proposed a resolution for a surcharge on each unit to finance a national RV marketing campaign. This was the seminal idea for what later became Go RVing. Whatever Dave set out to do, he got it done. He was a master of building consensus. Dave’s desire to win was strong, but what set him apart as a truly special person and great leader was his even stronger desire to see others win.” And from the Recreation Vehicle Industry Association (RVIA), the national trade association representing the bulk of the nation's manufacturers and suppliers: “Dave was one of the most respected and widely admired people in our industry,” stated RVIA President Richard Coon. “He will be remembered as an industry visionary who long understood and advocated the great benefit of having everyone in our industry — manufacturers, dealers and campgrounds — working cooperatively toward the common goal of promoting and advancing the RV industry. He was a successful businessman, passionate volunteer, respected leader and, most important of all, a beloved family man. He will be greatly missed.” From Winnebago, an Iowa company with which Altman had been doing business since 1975 and from whom his dealership had won the “Winnebago Industries Circle of Excellence” award for 22 consecutive years: “We feel truly privileged to have had the opportunity to work with Dave these many years and also very grateful for the opportunity to meet with him just last week,” stated Winnebago Board Chairman and CEO Bruce Hertzke. “Dave’s commitment to the RV lifestyle led to many satisfied customers and a mutually beneficial relationship for our companies.” From Carl Ehry, president of the RV/MH Heritage Foundation Inc.: “He was a dynamic leader with boundless energy and very creative in getting things accomplished for the hall. He was always trying to come up with ways to promote the Hall of Fame. In my heart, I will keenly miss Dave, and our thoughts and prayers are with the family.” Funeral services were held Jan. 18 at the Cathedral of Our Lady of the Angels, Los Angeles, Calif. 6 FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 045-RVB_0802_LO_Pub_Domain 1/18/08 PUBLIC DOMAIN 1:32 PM Page 45 BY BOB ASHLEY Motorcycle Maverick Jesse James and Airstream Trade Pink Slips West Coast Choppers Owner Swaps Custom Riveted Aluminum ‘Work of Ar’ for Classic ‘Cabana’ A irstream President Bob Wheeler describes as “stunning” a custommade Airstream-themed motorcycle that his company “acquired” from motorcycle icon Jesse James, owner of West Coast Choppers and husband of actress Sandra Bullock, and displayed for the first time at the 2007 Louisville Show. “It is absolutely a work of art,” said Wheeler. Art or not, James actually traded the chopper that was so visibly positioned at the front of Airstream’s Louisville display for a 34-foot Airstream Classic travel trailer from the Jackson Center, Ohio, company that he gave Bullock for her birthday. The trailer is now being used as a pool house “cabana” at the couple’s Austin, Texas, home. “He took some design cues from photos of the 1937 Airstream Clipper,” said Wheeler. With the exception of the 130-hp S&S V-Twin engine and Baker sixspeed overdrive transmission, the entire bike with sidecar was custom made by West Coast Choppers with influences gleaned from Airstream’s riveted, polished, aluminum exterior — including the chopper's headlight cover, gas tank and sidecar. The Airstream-inspired bike, meanwhile, will be used as a marketing tool at shows and rallies. “And it opens up other opportunities in the bike world to help us promote our products,” Wheeler said. “It’s a natural tie-in to our new PanAmerican toy hauler.” • • • With summer approaching, concerns are being raised by campground owners along the Canadian border about oncedelayed passport requirements that are supposed to go into effect sometime this summer — exactly when, the federal government hasn’t said. “People are very worried about the passport situation,” said Gregg Pitman, executive director of the New Hampshire Campground Owners Association. “They’re worried that Canadians won’t want to bother with the hassles and that American RVers won’t be coming to New Hampshire on their way to Canada. They wonder how difficult it’s going to be to get across the border next summer.” Maurice Barnes, president of the Vermont Campgrounds Association and owner of Lakeside Camping, Island Pond, Vt., doesn’t think the passport requirement is worth the government’s time and bother. “We don’t need a passport,” Barnes said. “A passport won’t make any difference to security.” The requirements originally were scheduled to go into effect more than a year ago, but were delayed after the U.S. Department of State couldn’t cope with the volume of passport applications. • • • In what seems to be a neverending battle, 286 full-time RVers using a Cleveland, Tenn., mail-forwarding service as their permanent address were struck arbitrarily from the local voting list. The Tennessee purge follows similar attempts in Texas in 2000 when a county judge stepped forward to overrule overzealous election officials who tried to dump some 9,000 members of the Escapees RV club from the voting roles. While the U.S. Constitution gives the right to vote to every U.S. citizen over 18, the federal government allows the states to decide how elections are run, including voter registration rules. With regard to full time RVers, it’s time for Congress to set the rules, and not leave it to some local official whose last brush with the U.S. Constitution was in a high school government class. • • • RV manufacturers and commercial transport companies in northern Indiana should welcome the news that Indiana and Illinois officials have begun serious cost planning for the Illiana Expressway, a new Interstate highway proposed to be routed south of the heavily congested Chicago area at the tip of Lake Michigan that’s expected to draw heavy traffic from crosscountry truckers who don’t need to go into Chicago. The Illiana Expressway would roughly follow the path of what was known as the Dixie Highway in pre-interstate highway days, linking Interstate 65 in southern Lake County, Ind., to Interstate 57 in Will County, Ill., about 45 miles south of the Chicago Loop. The new link would relieve congestion on I-80/94, a route taken by many RVs as they are shipped by transport companies to dealerships in the Upper Midwest and Plains States. • • • The Bush Administration has turned down an appeal from Indiana Gov. Mitch Daniels to extend federal disaster status to Nappanee, Ind., which was struck in mid-October by a tornado that destroyed Franklin Coach Co., and damaged Gulf Stream Coach Inc., along with dozens of other businesses and homes in the small southern Elkhart, Ind., community. 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. FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 45 Contents Contents Contents 046-RVB_0802_LO_SupplrShow 1/18/08 1:36 PM Page 46 SUPPLIER SHOWCASE MOR/ryde y International NOW IN ITS FIFTH DECADE, ELKART, IND., MANUFACTURER SPECIALIZES IN SUSPENSION SYSTEMS THAT “SMOOTH THE TRAIL FROM TIP TO TAIL,” ENCOMPASSING MOTORHOMES, TOWABLES — AND TOW VEHICLES. ■ BY MIKE KEECH ■ PHOTOS BY MARK SHEPHARD I trailers, tow vehicles and motorhomes. Key milestones in MOR/ryde’s growth include the addition of three distinct service units. The first of these was the 1994 addition of the Metal Fabrication Service unit. As MOR/ryde continued to expand, it added a Chassis Service unit in 1996 and an n the RV arena, there exists an entire cottage industry of companies that don’t build recreational vehicles — but wield considerable impact nonetheless. Since its creation by Robert Moore Sr. in 1966, MOR/ryde International has established its reputation as a designer and manufacturer of high-performance patented suspension systems for vehicles ranging from ambulances to transit buses — but it’s best known for its systems for fifth-wheels, travel TOP: MOR/ryde International’s Moyer Avenue offices and plant in Elkhart, Indiana. ABOVE: Brothers Bob, left, and Rodney Moore stand next to pin boxes manufactured at one of MOR/ryde’s four Elkhart facilities. 46 RVBusiness Installation Service unit in 1997. Today, the company’s operating structure breaks down into four distinctive business units, incorporating the three previously noted divisions along with the MOR/ryde Suspension unit. MOR/ryde operates from four facilities — with a combined operating space in excess of 300,000 square feet of operating area — in Elkhart, Ind., and employs some 400 individuals, including more than 25 degreed engineers that work in all four business units. Engineers are charged with the continued expansion of business through the development of new suspension systems and with assisting the customers of the three service units.They are also responsible for finding cost-efficient ways to manufacture quality parts more effectively. Currently, the Suspension Manufacturing unit produces an LRE suspension system that utilizes a rubber equalizer and leaf springs for the high-end towable market. It also builds an RL (Rubber Leaf ) suspension system for buses; additionally, this smooth riding system is frequently chosen for para-transit vehicles. Complementing the suspension systems, MOR/ryde also produces automotive-grade disc trailer brakes and a fifthwheel pin box system that utilizes the proven unique rubber FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 046-RVB_0802_LO_SupplrShow 1/18/08 1:36 PM Page 47 VITAL shear spring design. Surprisingly, this unit (the company's original mainstay) accounts for approximately 20% of the business MOR/ryde currently enjoys. The Metal Fabrication Service unit provides fabricated metal components to a wide range of industries, generally located within a 150-mile radius of Elkhart. Customers include recreational vehicle, commercial vehicle, trucking, industrial, agricultural and even orthopedic industries. In this unit, the company utilizes its state-of-the-art precision laser-cutting technology and metal fabrication skills — ranging from welding to powder coating — to meet customer requirements. This unit makes parts ranging from small complicated bridgebacks used in hip replacement surgery, to large folding ramps for tops of motorhomes. The Metal Fabrication Service unit utilizes an extreme-service business model, meaning MOR/ryde supplies custom-made parts to end users on the same or next day in many cases. According to management, this is possible because MOR/ryde uses prime (high quality) material and has invested heavily in equipment. For instance, it bought its first precision laser cutter in 1999, purchased a second laser in 2002 — and added 10 more between 2003 and 2007. Top executives indicate there are more significant investments in high-tech equipment on the horizon. The Chassis Service unit was formed to work with OEM accounts. This unit makes recreational vehicle and transit bus chassis body-ready. Chassis services include lengthening, shortening, suspension installation, frame enhancement, brake retarder installation, slideout installation, leveling jack installation and drive shaft balancing and servicing. This segment of MOR/ryde’s business has grown substantially during the past 11 years, and a number of RV OEMs utilize MOR/ryde products as standard equipment. Plus, by manufacturing products intended to improve the ride of a towable both at the unit’s suspension as well as its hook-up point (in the case of fifth-wheels), MOR/ryde claims to “smooth the trail from tip to tail.” The company’s latest addition is its aftermarket Installation Service unit. This unit caters to the general public, selling and installing disc brakes, pin boxes and suspension components at retail prices. Since this segment requires that the work be done at the company location, this user-friendly service includes free overnight camping with electrical hookups, and a comfortable waiting lobby that is fully supplied with coffee, soft drinks and doughnuts. According to management, the company’s operational structure along with its positive business philosophy have made MOR/ryde successful. “We try very hard to listen to our customers,” said Robert Moore Jr., owner and president. “Our business strategy has been to find good people who agree with our company philosophy of treating people the way we would like to be treated. We then turn them loose to go out and ask our customers ‘what else can we do for you?’ Our job is to make sure our capabilities line up with the demands and expectations of our customers. “We’ve invested very heavily in new equipment over the past five years,” he added, “but just as important is our investment in hiring new people. We try very hard to seek out the best talent and then hire for the long term. We’ve been able to attract good people — and that gives us an edge in the marketplace.” That also allows the company to control as many variables as possible in an environment roiled recently by rising fuel costs. “There are so many factors that we can’t control — overall economic conditions, growth of the RV industry, price statistics COMPANY: MOR/ryde International (www.morryde.com) LOCATION: Elkhart, Ind. FOUNDED: 1966 PRIMARY PRODUCTS: Suspension systems, metal fabrication, chassis service and installation service KEY PERSONNEL: Robert G. Moore Jr., presi- dent; Rodney Moore, CFO, director of sales; Jack Enfield, marketing and sales manager EMPLOYEES: 400 ABOVE: Jose Cruz works on a bending machine as Patrick Fox finishes and packs parts at MOR/ryde International’s Bristol Street plant. BELOW: Sergio Ruvalcaba welds parts for a hydraulic axle at MOR/ryde’s Moyer Avenue plant. FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 47 Contents Contents Contents 046-RVB_0802_LO_SupplrShow 1/18/08 1:37 PM Page 48 PHILIPS PRODUCTS, CIRCLE 117 ON READER SERVICE CARD VENTLINE, CIRCLE 103 ON READER SERVICE CARD of gas, etc. — that our job is to work on the things we can control,” noted Rodney Moore, owner and CFO. “We need to make sure we are positioned to meet our customer’s increasing demands. As for the future, I would expect that we would go deeper with our existing customers in the RV industry while continuing to pursue opportunities in the medical services and industrial sectors outside the RV industry.” MOR/ryde has proven itself to be market sensitive and has put its money where the company can best support the customer — equipment and engineering. The investment in infrastructure has allowed the company to maintain its edge while exploring future opportunities. “We consider ourselves an opportunity-driven company,” said Rodney Moore. “That just means we work hard to find opportunities with our customers. “Many times these opportunities require us to begin working on or to develop new products or new capabilities,” he added. “Sometimes that means new equipment. We recently purchased a tube laser and tube bender to allow us to process tube-related parts more efficiently. We’ve just scratched the surface on what this equipment is capable of. On the product side, we’re working on the next generation of suspension system products for fifth-wheel and travel trailers as well as developing custom specialty products that are used on motorhomes, toy haulers and fifth-wheels.” 6 TOP: A MORE/ryde pin box. ABOVE: One of the company’s 12 precision laser cutters in action. 48 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 046-RVB_0802_LO_SupplrShow 1/18/08 1:37 PM Page 49 CUTTING EDGE KING CONTROLS VUQUBE PORTABLE SATELLITE ANTENNA Being on the road shouldn’t mean divorcing yourself from traditional home comforts — including your favorite TV programs. The new VuQube Portable Satellite Antenna from King Controls is said to be the first portable antenna under a dome — and incorporates user-friendly features to provide easy, one-person set-up. Just place the unit on the ground (or picnic table, etc.) where there is a clear line of sight to the southern sky; it connects with a single coaxial cable, and includes a wireless remote to tilt and turn the internal dish for maximum signal reception. According to King Controls, the unit also boasts a built-in automatic leveling feature to keep the dish pointed at a consistent elevation while rotating. Contact: King Controls, 11200 Hampshire Ave. S., Bloomington, Minn. 55438; (800) 982-9920; www.kingcontrols.com. SHURHOLD FLEXIBLE WATER BLADE If you live in an area with hard water, you know how difficult it can be to dry a dinghy before it starts spotting. You might not want to tackle an entire motorhome using just Shurhold’s Shur-Dry Flexible Water Blade, but it will make quick work of tough areas like windows — and inside, everything from countertops to shower doors. According to the company, the 12-inch Water Blade molds to curved and uneven surfaces, and the non-scratching silicone blade dries surfaces faster than a chamois. An adapter is also available that allows the blade to adjust 180 degrees and attaches to other Shurhold handles for hard-to-reach areas. Contact: Shurhold, 3119 SW 42nd Ave., Palm City, Fla. 34990; (800) 962-6241; www.shurhold.com. MAXXAIR VENT COVER It ddoesn doesn't'tt ttake k more th than a ffew yyears off near-constant t t sunlight light tto tturn th the ttypical ypi l RV ventt cover into i t a brittle b ittl ppiece i off plastic. pplastic l ti The Th new MAXXAIR II ventt cover from f MAXXAIR Vent V t Corp not only provides protection but improves air flow and permits the vent to be opened Corp. “rain rain or shine shine.” The one-piece one piece aerodynamic design is claimed to provide more vent area than any other vent cover, cover and features side louvers for better cross cross-ventilation. ventilation. ventilation Made of high high-densidensi ty polyethylene for maximum UV protection, protection the new unit mounts in the same holes as the ooriginal igi al MAXXAIR vent e t cover, co cover e , and a d is is available a ailabble in i the the same sa e colors colo s (white, ((white hite, almond, aalmond l o d, d smoke smoke, k , champagne, champagne h p g , silver il andd black). black) bl k)) Contact: C t t MAXXAIR Vent V t Corp C Corp., p , 5513 W W. Sligh Sligh A , Tampa Ave Ave., TTampa, p , Fl Fla Fla. 33634 33634;; (800) ( ) 780 780-9893; 9893; www.maxxair.com. www maxxairi com SPECTRO COATING CORP. BLACKOUT FABRIC Maintaining privacy in an RV can be as easy — or as hard — as the type of window coverings selected by its manufacturer. According to Spectro Coating Corp., its new blackout drapery fabric offers 100% blackout functionality without the need for sewn construction or separate handing panels and hardware. And it does so without sacrifing style — the fabric can be produced with custom prints, colors and textures to coordinate with interior-design requirements. The two-in-one drapery fabric features a single panel with fabric on the front and blackout on the back to ensure privacy and insulate the interior from sunlight, temperature and noise. Contact: Spectro Coating Corp., 101 Scott Dr., Leominster, Mass. 01453; (978) 534-1800; www.spectrocoating.com. FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 49 Contents Contents Contents 050-RVB_0801_LO_Ad Index 1/18/08 2:00 PM Page 50 ADVERTISERS’ INDEX 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 107 120 126 104 116 DR. PERFORMANCE, CIRCLE 116 ON READER SERVICE CARD 124 115 110 101 123 111 119 122 113 108 117 118 Pg.# Aon Recreation Insurance..... 11 B W Trailer Hitches................ 52 Bilstein Corp.......................... 25 BrakeBuddy............................ 13 Classifieds........................ 56-57 Dometic Corporation............. 50 Dr. Performance..................... 50 Freightliner.............................. 5 GE.......................................... 60 Generac Power Systems....... 59 Hendrickson Truck Systems.... 9 Hi-Lo Trailer Company........... 55 MBA Insurance, Inc............... 44 MOR/Ryde............................. 18 Maxx Air Vent......................... 38 Maxxis International............... 54 Monaco Coach Corporation.... 2 Onan Corporation...................15 Philips Products..................... 48 River Park Inc........................ 53 RS# Advertiser 102 105 114 112 125 103 121 Pg.# Roadmaster, Inc.................... 51 Systems 2000........................ 44 Textron Financial.................... 17 TrailManor............................... 6 Transfer Flow Inc................... 54 Ventline.................................. 48 ZF Commercial Suspension Systems & Components........ 33 While every effort is made to maintain accuracy and completeness, last-minute changes may occasionally result in omissions or errrors. Dometic Corporation is continually committed to maintaining a high level of satisfaction and excellence now and in the future. That is why Dometic is voluntarily recalling certain refrigerators that may have a potential safety defect. The recall affects Dometic two-door refrigerators manufactured between April 1997 and May 2003. The well-being of Dometic customers is of highest concern. A serious problem resulting in a fire may occur in an exceptionally small fraction of Dometic two-door refrigerators, but to address that potential risk, please contact us immediately for more information. 1-888-446-5157 www.DometicUSA.com RECALL O6E-076 50 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:26 PM Page 51 TOP OF THE NEWS Winnebago’s most senior employees (based on years of service with the company) helped celebrate milestone motorhome, along with Chairman of the Board and CEO Bruce Hertzke and President Bob Olson. Employees and the departments they represent (from left to right): Hertzke; Keith Farland, accounting; Bob Eames, customer service; Joe Biretz, customer service; Harlan Rodberg, motorhome plant; Francis Oborny, customer service; Ken Gremmer, chassis weld; Irv Larson, maintenance; Elsie Felland, treasury; Lanny Jenkins, Creative Aluminum Products Co. (CAPCO); Bernie Kofron, customer service; and Olson. Winnebago from page 8 ROADMASTER, INC ROADMASTER INC., CIRCLE 102 ON READER SERVICE CARD “Still, we see the company as a solid, core RV holding, especially for an eventual recovery in the RV market once the consumer becomes more positive on discretionary purchases.” Diffendal noted that “while better Class A mix has helped recent quarters, the firstquarter backlog composition raises mixed concerns looking forward. Class A unit backlogs sagged 26.5%, with diesels off 35.8% and Class A gas down 18.7%. On the other hand, Class C backlogs popped 49.2%, allowing total unit backlogs to increase by 5%.” He cited management’s statement in the investors conference call that some of the orders from November's National RV Trade Show were included in this year's totals — perhaps 70% of what will be received — compared to zero inclusion in last year's end of quarter totals. Part of Class A’s decline reflects the fact that new products have pushed into the marketplace lowering backlogs, Diffendal said. “But we are a little concerned that retail turns of new offerings may be disappointing — especially in the diesel market where management is looking to raise share and provide growth,” he added. “Still, there is nothing in the reported backlog for the new Class B entry Era, which could be a hot new entry.” The new B product, which Winnebago said will achieve 22 mpg, will hit dealer lots in late February and early March. Craig Kennison of Robert Baird & Co. said Winnebago “reported a mixed quarter that essentially met expectations. On balance, retail demand and gross margin fell shy of our forecast, but dealer orders were surprisingly strong and management remains committed to repurchasing stock.” On the backlog issue, Kennison said, “The strength in the backlog is surprising given that dealer inventory is running slightly above expectations. It is possible that dealer demand for the new Era Class B product boosted orders.” He noted that Winnebago plans to grow its diesel share by introducing more products at the low end of the market. These new products will complement its current offerings in the fast-growing low-to-mid price point segment. “We expect increased competition at the low end of the diesel market, but believe Winnebago can successfully gain share as it pursues the lower price points more aggressively,” he said. He further noted that among its top competitors, “Winnebago produces some of the strongest financial metrics including: return on equity of 18%, return on assets of 10%, operating margin of 6% and net income margin of 5%.” 6 FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 51 Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:26 PM Page 52 TOP OF THE NEWS Workhorse from page 10 new HVAC control knobs and childproof window switches for added convenience and safety. ■ Updated seating materials improve looks and comfort. The 2008 model also features a new Driver Information Center that keeps drivers updated on vital engine and vehicle functions. “This platform continues to develop a presence in the marketplace,” said Bill Walmsley, Workhorse director of marketing. “It posted some very consistent numbers during the past year, and it’s showing that it can be very competitive. We’re very pleased with how well it’s done, especially during the period when Class C sales were down.” The chassis, available in 9,600-, 12,300- and 14,050-pound GVWRs, features an independent coil spring front suspension with heavy-duty stabilizer bar, rear multi-leaf spring suspension and four-wheel disc brakes with ABS. 6 Shipments from page 10 169,200 units from 192,400. Other highlights include: o Overall November towable shipments dipped 5.7% to 18,200 units from 19,300 in 2006 while the motorized sector was down 17.5% to 3,300 units compared to 4,000. Year-to-date, towable deliveries dropped 11.3% to 279,700 units from 315,500 in 2006 and motorized deliveries fell 500 units to 51,300. o November fifth-wheel shipments equaled last year’s output with 5,500 units delivered while the segment was down 8.6% for the year with 76,400 units shipped compared with 83,600 the previous year. o Class B deliveries were down 100 units to 200 for the month and year-to-date increased 200 units to 2,900. o November folding camping trailer shipments declined 300 units to 1,300 from 2006 and were off 15% for the 11 months with 27,100 units delivered compared to 31,900. o November truck camper shipments were down 100 units to 400 and fell 7.9% to 7,000 units for the 11 months. 6 Bob Wert from page 10 B W TRAILER HITCHES, CIRCLE 120 ON READER SERVICE CARD wheel and truck camper segments. The addition of an industry veteran like Bob accelerates our turnaround and growth of a great brand like WRV.” Wert has served in a number of capacities during his 30-plus years in the industry, including 23 years with Riverside, Calif.-based Fleetwood Enterprises Inc. In October 2004, Wert joined Workhorse Custom Chassis LLC and recently retired from his role as vice president of RV sales and marketing for the Union City, Ind., chassis builder. Wert is a graduate of Shippensburg University of Pennsylvania and currently resides with his wife, Cathy, in Chico, Calif. They will be relocating to the Yakima area. “I am extremely pleased to join the Western RV team,” Wert said. “It will be exciting to help rebuild a great industry brand. Western has a long tradition of innovation, inspired by the customers’ journey. Our biggest priorities going forward will be to re-build the brand, re-build the dealer network and launch new products.” 6 52 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:26 PM Page 53 TOP OF THE NEWS Industry Poll from page 8 ing/turning floorplans when reordering. In addition, we will also reduce expenses and retain only our best people.” ■ “Our plan is to sell more used and keep a minimum of new in stock.” Many dealers noted that the motorhome sector, in particular, remained sluggish and would be the focus of inventory cutbacks. “It is very slow right now, the slowest I’ve seen in 17-plus years,” observed a poll respondent. “We reduced expenses for 2008 and will probably reduce motorized inventory as well. There is very little market for Class A gas, so that is where we will cut inventory the most.” Results, however, did show that despite early challenges, the majority of dealers remain hopeful that prospects would improve over the course of the year. When asked to calculate expectations for 2008 on a 1 to 10 scale (10 being the best year ever), 75% gave rankings from 5 to 10 with the largest percentage (22.4%) assessing a 5 rating. The survey also indicated that dealers came away from last November’s National RV Trade Show in Louisville, Ky., with a better-than-expected outlook. A vast majority gave the overall mood of the show an average rating (73.5%), followed by “very good” (15.7%), “poor” (6.9%) and “excellent” (3.9%). As is typical in a soft market, dealers by and large were looking for other profit areas, including the Internet. Responses included: ■ “I am training my people not to take any shortcuts and know their pitches. I am also investing in things that will bring in more business, such as my website, and investing in management training.” ■ “We’ll have an emphasis on inventory and people management. We will put more resources into training and be diligent tracking productivity and efficiency.” ■ Our company will be utilizing alternative marketing techniques, including the Internet, to attract buyers, particularly first-time RVers. 6 WITH SECOND RATE PRODUCTS, EVEN A WORLD CLASS PERFORMANCE CAN GO FLAT. An inferior audio system is like playing an incorrect note in an orchestral performance. It’s just wrong.A first rate RV deserves first rate components. That’s why you should insist on the outstanding performance of Bose®. From music to movies, innovative Bose technologies provide extraordinary audio performance, elegance and simplicity. Bose®Lifestyle 48 Series Home Entertainment System digitally stores and organizes up to 340 hours of music. With a progressive scan DVD/CD player, viewers can experience a superior cinematic experience. The Wave® Music System sets a new gold standard for audio performance — sound so thrilling and lifelike it feels as if you are sitting in the front row. Bose award winning audio systems are known worldwide for superior performance and lifelike sound reproduction. RiverPark complements this world class performance with the exceptional product expertise and dedicated service that our customers have come to expect.We’ve been providing the finest electronic brands to our recreational vehicle customers since 1981. Expect great performance.With innovative Bose products from RiverPark. AUTHORIZED OEM DISTRIBUTOR W W W. R I V E R P A R K I N C . C O M © 2 0 0 5 R I V E R PA R K I N C . FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 53 Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:27 PM Page 54 TOP OF THE NEWS 8F(PUIF&YUSB.JMF Miniatures from page 12 industry that have responded very favorably,” said B.J. Thompson, president of B.J. Thompson Associates Inc., Mishawaka, Ind., who is coordinating the effort led by Wilbur Bontrager, president of Jayco Inc., Middlebury, Ind. Elvie Frey, president and CEO of SunnyBrook RV Inc., Middlebury, Ind., and Daryl Zook, president of KZ RV LLP, Shipshewana, Ind., also are involved in the effort. The total project is budgeted at $30,000 and will include a sound-activated narration with different areas of the RV factory being illuminated as they are discussed. “We don’t want to get carried away with signage,” Thompson said. “We thought we would have a sound module to narrate a representative tour of a manufacturing facility. Our intention is to make the model as general as we can so that no one manufacturer is identified.” 6 'PSNPSFJOGPSNBUJPOPOUIF.45 3BEJBM5SBJMFS5JSFDBMM."99*4PS HPPOMJOFBUNBYYJTDPN Open Range from page 12 TRANSFER FLOW INC., CIRCLE 125 ON READER SERVICE CARD <RXU2(0$IWHUPDUNHW )XHO7DQN6RXUFH ,QEHG$X[LOLDU\)XHO7DQNV rather than length. “Length doesn't mean much today with all the slideouts that RVs have,” said Randy Graber, Open Range founder and president. “People know about square footage because that's how they buy their homes and they can compare the cost.” The three 331⁄2-foot floorplans range from 322 to 337 square feet. With an aerodynamic front cap and heated and enclosed underbellies, the widebody Open Range sports 42-inchdeep living room slideouts, which increase the living area without significantly adding to the length. Amenities include hardwood, raised-panel cabinet doors with hidden hinges, hardwood moldings, solid surface countertops and built-in wine and spice racks. MSRPs start at about $45,000. 6 *HQHUDWRU7DQNV KEPPSRKIRIVEXSVXEROVITPEGIW WXSGOTVSTERIXEROSRÀJXL[LIIP ERHXVEZIPXVEMPIVW'EPPJSVTVMGMRK )XHO)LOOQHFN.LWV =SYV0IKEP*YIP8ERO7SYVGI ZZZWUDQVIHUIORZFRP 54 RVBusiness Go To: Go To: Go To: Go To: Floorplans in Open Range 331⁄ -foot fifth-wheels range from 322 to 337 square feet. FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:27 PM Fleetwood Canada from page 14 Perras identified Thor and Jayco as his major competition in Canada. Perras said he hopes his company can tap into “a tremendous market right now for park models” that exists across Canada. Perras said he does not plan a formal product introduction of his 2008 products but is shooting for a 2009 product introduction in June. The purchase is good news for the community of Lindsay and some 300 former Fleetwood unionized employees with recall rights who stand to get rehired in the coming months. Perras’ team negotiated a memorandum of understanding with the union that was crucial to the purchase. “The wage structure was out of whack,” said Perras, referring to one of several changes he is initiating. He also plans to remove all the building’s time clocks and put all employees on salary. The agreement contains some wage and benefit concessions. For example, 44% of the employees will be part time with minimal benefits, he said. However, all employees will become eligible to invest in the company after six months, he noted. Perras said the present is a good time for the right company to enter the RV business. “I think it is an excellent time to be lean and mean,” he said. “We’re hungry. There may be a lull in the industry but there is still a lot of opportunity out there. An organization that can produce quality and service has an upper edge.” Fleetwood decided last May to close its Canadian operation, resulting in the loss of more than 300 jobs. Closure was part of company’s restructuring plan to restore profitability to its travel trailer division. The company had previously tried amalgamating its two Canadian operations in an effort to keep Fleetwood Canada in business, but was unsuccessful. Fleetwood has closed five of its nine U.S. plants in the trailer division after consumer demand plummeted in the last several years. Fleetwood Canada had operated in Lindsay since December 1972; it was the city’s 10th largest employer with more than 500 workers at its peak operations. It produced the Pioneer, Mallard, Prowler, Terry, Lynx, and Dakota brands, as well as a park model line. Significant layoffs in February and March last year did not improve things for the company. 6 HI-LO TRAILER COMPANY, CIRCLE 101 ON READER SERVICE CARD hopeful that they will be able to provide many of our former associates with employment.” Perras, who was general manager of the former Fleetwood plant, said “travel trailers will be our bread and butter,” but the company will also manufacture fifthwheel trailers and park models. Perras did not go into details on any of the company's products, other than to say models would range from between 18 and 39 feet in length and be price-competitive. The new company will draw upon a dealer body of 45 dealers located across Canada. Perras hopes also to sell units west of the Canadian Rockies, as well as in a dozen or so U.S. states along the border. “We’re trying to focus on ‘Canadian made’; some of our dealers have been buying products from this plant since its inception more than 30 years ago,” he said. “We will be fanatical about quality and service. That’s all that counts.” The company also will maintain “a continuity of supply” with Fleetwood’s former vendors, 85% of which are located in the U.S., he noted. Page 55 FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 55 Contents Contents Contents 056-RVB Class 2008-02 1/18/08 2:14 PM Page 56 CLASSIFIED ADVERTISING ACCESSORIES CONSULTANT/TRAINING ATTENTION PARTS MANAGER—More Towel Space!! No installation. Separates towels for fast drying! Factory direct, made in USA. No distributors carry these products. 800-4486935 tripleto p welholder.com/fourcolorpac p kaging g g JOHN MANCINELLI Consulting & Training 36 Year RV Industry Veteran www.jo w j hnmancinelli.com [email protected] 270-793-0509 BUSINESSES FOR SALE FL KEYS RV BUSINESS FOR SALE 300' on hwy, paint booth, RV lift, 2 acres, 5 work bays, and a 2-story sales, parts and service building. Motivated to sell. Email: [email protected] BUSINESS OPPORTUNITIES BECOME AN RV RENTAL DEALER El Monte RV is expanding its Dealer Rental Network across the U.S.A. With 46 present locations, it will expand to 90 in ’07. El Monte RV supplies the motorhomes, reservations, and necessary training and software. For additional information, please call “Dealer Program” at (800) 367-4707 or visit our website at www.elmonter v.com and click on the “Contact Us” link and select “New Dealer Inquiries”. DEALERSHIPS FOR SALE TEXAS RV DEALERSHIP—Health issues force retirement. 20M plus sales, high profit, excellent diversified lines, substantial annual growth. Sell with or without inventory, real estate. Qualified buyers only please. Reply: RVB-775, POB 8510, Ventura, CA 93002 or email [email protected], subject line RVB-775. HELP WANTED TECHNICIANS Come to sunny Ft. Myers, FL and join the team at Marks RV on a new 20-acre, 50,000 sq ft, 21bay facility. Work on the best products in the industry and enjoy a wonderful lifestyle of living. Will pay up to $25/hour for Master Techs. Relocation pkg avail. Fax resumé to Chris Stout at 239-790-0136 or email [email protected]. © COME TO THE COUNTRY! Country RV Center in Bryan, Texas is looking for qualified RV Techs. Relocation pkg to country living. Fax resumé to B. Barker 979-279-6767 or email to [email protected] SALES PROFESSIONALS We are looking for experienced RV sales people who want to make 6 figures and work in Ft. Myers, FL selling Winnebago, Allegro, Beaver, Jayco, to name a few. 5-day work week, benefits, beautiful new store on 20 acres on I-75. Call Marks RV today at 877-406-2757, ask for Chris Stout or email [email protected] REAL ESTATE EXCELLENT RV DEALERSHIP LOCATION. Near Camping World on IH-35, New Braunfels, TX. Up to 16 acres w/hwy frontage. All utilities available ••• Contact Tim Cronin 830-608-5436 or email [email protected] RV PARTS FLEETWOOD PARTS DEALER Fast Service, Knowledgeable Discontinued Parts, FDN System Major Damage Repairs, We Buy Wrecks 1-800-720-0484 • www.r w vpar p tstore.com CLASSIFIEDS Use this form or your own stationery to submit your ad copy! Classified Ads — Priced at $18 per line, 40 characters and spaces per line, five-line minimum. Ad closing for the April 2008 issue is February 5. This issue reaches subscribers on March 28. GENERAL INFO: Blind Box service is available at an additional cost of $15. Allow one line of billable space for Blind Box address. For ad with photo, limited to RVs and real estate, please add $30. • For your ad to appear in red type add $25. All classifieds are prepaid by check, credit card or money order. No agency commissions or cash discounts. Name: Address: Phone/Fax: Credit Card Number: Run for Expiration: issues Category: Signature: RV BUSINESS Classifieds, PO O Box 8510, Ventura, CA 93002-9912 • Fax (805) 667-4379 • Email [email protected] 56 RVBusiness Go To: Go To: Go To: Go To: FEBRUARY 2008 .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 007-RVB_0802_LO_TOP 1/18/08 1:27 PM Page 57 TOP OF THE NEWS Copper Canyon from page 14 Coachmen Wholesale Parts Depot An Authorized Coachmen Parts Distributor. Call us for all your Coachmen Sportscoach Shasta needs. Courteous, experienced staff. Wholesale Pricing. Same Day Service. 8-5 EST (866) 412-7936 www.coac w hmenpar p ts.com www.WINNE w BAGOP A PAR RTS.com Parts for all WINNEBAGO/ITASCA products including Renault/LeSharo. For personal service at fair prices, call 800-933-7742 (641-896-2222 non USA) 8-5 Central M-F Parts are our ONLY business RV DEALER PARTS SURPLUS An online parts trader for dealers and customers to buy and sell parts. Hard to find parts at hard to believe prices! Turn your surplus inventory into profits. Visit www.R w RVDealersurplus.co p m RECREATIONAL VEHICLES WANTED WE BUY MOTORHOMES ’98 & Newer - Clean - Low Miles - No Smoke/Pet CASH Payment & NATIONWIDE Pick Up Contact Bill Fishfader @ 1-509-993-0321 RVs NORTHWEST • SPOKANE, WA INSTANT CASH FOR 2001 - Current model motorhomes. All models Top$$ + Quick pickup. Call or email Craig Woods, 1-800-511-8502, [email protected]. North Bay Ford RV Helping the RV Industry grow for over 40 years! PACKRAT STORAGE — Consigns, Buys RVs Class A, B, C Motorhomes Not Picky! Cash for Referrals. Nationwide Pickup. 1-877-520-MINI www.pac w p kratsa.com SERVICE TRAINING Profit $100 Per Hour Reconditioning RV refrigerator cooling units. Certified hands-on Training, Manual, Tools. Secure your territory!! Call Ford RV Refrigeration 877-378-3744. www.r w vrefriger g ation.com Our classified section now offers the opportunity to include a photo with your ad copy. Photos are limited to RVs and real estate for sale. Photos may be submitted as B/W or color 35mm prints, or via email to [email protected]. Please refer to the ad coupon for our rates and next month’s deadline. going to allow it anymore.” The ban went into effect last fall. Such a practice already was prohibited in the U.S., Olsen pointed out. Texas-based Fantasy RV Tours and Adventure Caravans also offered “piggyback” trips through the canyon that have been discontinued. Tracks still markets a Copper Canyon tour but now RVs are parked and visitors take the 172-mile-long canyon rail in passenger cars. “They Suppliers at Show from page 18 updated RV Sani-Con System, a waste-water holding tank evacuation system. ■ Lippert Components Inc., Goshen, Ind., introduced a rear electric stabilizing jack for towables and a radius entry step for towables. ■ Mantaline Corp., Mantua, Ohio, introduced the Manta-Slide 2.0, an integrated sealing solution for slide rooms that is designed to eliminate the problems of moisture, debris and sunlight penetration. ■ Winegard Co, Burlington, Iowa, showcased TRAV’LER’s DISH 1000 Antenna, an automatic multi-satellite TV antenna that is DISH Network’s premier reflector dish for home systems. ■ Kustom Fit/Hi-Tech Seating, South Gate, Calif., introduced a new high-end sofa bed for toy haulers. ■ DuPontCorian New York, N.Y., introduced the Terra Collection, a selection of 25 colors which uses recycled materials. ■ ASA Electronics, Elkhart, Ind., showcased a line of LCD flat-panel TVs with diagonal screens ranging from 15 inches to 42 inches that can be powered by 12V DC or 11V AC. ■ Carefree of Colorado, Broomfield, Colo., displayed the Paramount box awning, a lateral-arm roof-mounted awning that angles out and down in multiple stages that eliminates the need for multiple awnings on RVs with slideouts. ■ Keyline Sales Inc., Elkhart, Ind., introduced a new TV lift assortment that can handle up to 50-inch TVs. ■ Yamaha Motor Corp., Cypress, are away from their rigs for one day and then stay overnight in a luxury hotel,” Olsen said. “Going by passenger car has all kinds of advantages. One is that everybody doesn't have to wait a day to load and another day to unload the train cars.” Track’s canyon journey on the privately owned Mexican railroad was part of three Mexican excursions Tracks offers at a cost of between $6,000 and $8,000. Tours, with an average of about 20 rigs, leave El Paso about once a week in October, January, February and March, Olsen said. 6 Calif., introduced the wireless QuickStart Remote Start Kit for Yamaha's EF3000iSE and EF3000iSEB generators which remote starts from up to 75 feet away. ■ Thule Inc. Seymour, Conn., introduced two new bike carriers, using the company’s patented SMART RV Rail system that can carry two or three bicycles on the rear of an RV. ■ Hopkins Manufacturing Corp., Emporia, Kan., introduced the BrakeBuddy Vantage Select, a portable auxiliary braking system that takes the weight of a towed vehicle off a motorhome to shorten stopping distances. ■ Graco Inc., Minneapolis, Minn., introduced a new auxiliary fuel pump designed to dispense fuel to 4-wheelers, motorcycles and dune buggies in remote locations. ■ Affiliated Resources Inc., Portland, Ore., displayed its new Dyna-Bilt structural floor and roof panels that exceed RVIA/HUD and California Air Resources Board formaldehyde requirements. ■ Alcoa Wheel Products, Cleveland, Ohio, previewed its new forged aluminum wheel designed for the Sprinter 3500 cab/chassis for aftermarket fitment. ■ Philips Products, Elkhart, Ind., introduced a new retractable screen door with pleated screen mesh. ■ Ventline, Bristol, Ind., introduced its new roof vent with an aerodynamically-shaped dome. ■ Kampgrounds of America Inc., Billings, Mont., promoted its new RV Express program whereby an existing business can develop its own campground of between 15 and 45 RV sites on between two and eight acres of land. 6 FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide RVBusiness 57 Contents Contents Contents 058-RVB_0802_LO_Calendar c 1/18/08 1:03 PM Page 58 CALENDAR OF EVENTS FEBRUARY FEB. 6-7 Coast Distribution System’s 20th Dealer Advantage Buying Show Rio All-Suites Hotel and Casino Las Vegas, Nev. Contact: (800) 538-7973, ext. 2188 www.coastshow.com FEB. 7-10 Minneapolis/St Paul RV, Vacation & Camping Show Minneapolis Conv. Center; Minneapolis, Minn. Contact: (763) -383-4400; www.agievents.com FEB. 7-10 Edmonton RV Expo and Sale Northlands Park Sportex; Edmonton, Alberta Contact: (780) 455-8562 www.rvshowsalberta.ca FEB. 7-10 Seattle RV & Outdoor Recreation Shows Qwest Field & Event Center; Seattle, Wash. Contact: (425) 277-8132 www.mhrvshows.com FEB. 7-10 Flint Camper & RV Show Perani Arena & Event Center; Flint, Mich. Contact: (517) 349-8881; www.marvac.org FEB. 8-10 Richmond Camping-RV Expo Richmond Raceway Complex; Richmond, Va. Contact: (804) 425-6556; www.agievents.com FEB. 8-10 Arkansas RV Show Statehouse Conv. Center; Little Rock, Ark. Contact: (501) 225-6177 www.dgattractions.com FEB. 8-10 Cincinnati RV Supershow Wall 2 Wall Sports Complex; Mason, Ohio Contact: (941) 827-7144; www.rvexpo.net FEB. 8-10 North Carolina RV & Camping Show North Carolina State Fairgrounds Raleigh, N.C. Contact: (804) 425-6556; www.agievents.com FEB. 8-10 Central Valley Sportsmen’s Boat & RV Show Kern County Fairgrounds; Bakersfield, Calif. Contact: (800) 725-0793; www.calshows.com FEB. 8-10 Central Gulf Coast Boat, Sport & RV Show Lake Charles Civic Center; Lake Charles, La. Contact: (334) 436-4355; www.bacshows.com 58 RVBusiness FEB. 8-10 The Montgomery RV Super Show New Montgomery Conv. Ctr., Montgomery, Ala. Contact: (256) 509-3574 FEB. 8-10 New England Camping & RV Show Dana-Farber Fieldhouse, Gillette Stadium Foxborough, Mass. Contact: (800) 225-1577; www.naexpo.com FEB. 11-15 RVIA/RVDA Trouble Shooters Clinic Lane Community College; Eugene, Ore. Contact: (703) 591-7130 www.rvtechnician.net FEB. 13-15 Detroit Camper & RV Show Rock Financial Showplace; Novi, Mich. Contact: (517) 349-8881 www.marvac.org FEB. 14-17 Jackson Boat & RV Supershow Jackson Civic Center; Jackson, Tenn. Contact: (731) 584-7880 www.jacksonrvshow.com FEB. 15-18 Indianapolis Boat, Sport & Travel Show Indiana State Fairgrounds; Indianapolis, Ind. Contact: ( 877) 892-1723 www.renfroproductions.com FEB. 15-18 Sports, Boat & RV Show Sports Expo at Cal Expo; Sacramento, Calif. Contact: (888) 862-8924 www.SurfandTurfOnline.com FEB. 18-22 NTP Distribution 2008 National Conference Austin Convention Center; Austin, Texas Contact: (503) 570-5455 www.ntpdistribution.com FEB. 19-24 National School of RV Park & Campground Management Oglebay Resort; Wheeling, W. Va. Contact: (304) 243-4126 FEB. 21-24 Kansas sport, Boat & Travel Show Kansas Coliseum; Valley Center, Kan.. Contact: (303) 892-6800; www.agievents.com FEB. 15-18 Show & Sale Westerner Exposition Grounds Red Deer, Alberta Contact: (403) 340-1132 FEB. 15-18 Northeast RV Show Rockland Community College; Suffern, N.Y. Contact: (845) 343-2772 www.rocklandexpo.com FEB. 15-18 Springfield RV Camping & Outdoor Show Eastern States Exposition Fairgrounds West Springfield, Mass. Contact: ( 413) 781-2267 www.springfieldrvcampingshow.com FEB. 25-28 FMCA’s 79th International Convention Fairplex; Pomona, Calif. Contact: (800) 543-3622; www.fmca.com MARCH MARCH 14-17 ‘The Rally’ by Affinity Events Georgia National Fairgrounds & Agricenter Perry, Ga. Contact: (877) 749-7122 www.therally.com FEBRUARY 2008 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 059-RVB 02 PAGE 59 GENERAC 1/17/08 4:17 PM Page 59 Generac, a leading innovator in the design and manufacture of home standby and industrial generators has done it again! We’ve completely reinvented our line of GUARDIAN generators for recreational vehicles and trailers. These new generators are compatible with industry standards for easy installation, maintenance and serviceability. Plus, they’re reliable, compact, quiet, and fuel efficient – making them the ideal solution for your customer. With a full range of gasoline, diesel and LP products, your customers can power every adventure with the performance and value of a GUARDIAN. ALL LL N NEW E Industrial Generators forIndustrial Adventures THE NEW GUARDIAN RV GENERATORS FEATURE: } ÌÜi} Ì]ÊV«>VÌÊ`iÃ} ÕiÊivwViVÞ >ÃÞÊÃiÀÛViÊ>`Ê>Ìi>Vi]Êvi>ÌÕÀ}ÊÊ >ÊVÌÀÊ«>iÊvÀÊL>À`Ê`>}ÃÌVà iiÀ>V½ÃÊiÜÊxÎäVVÊ"6®Ê`ÕÃÌÀ>Ê i}iÊÜ V Ê«>VÃÊÀiÊ«ÜiÀÊÌÊÊ >ÊÃ>ÊvÌ«ÀÌ -Õ«iÀÀÊÃiÊÀi`ÕVÌÊvÀÊÕÌÀ>µÕiÌ «iÀ>Ì For more information, visit us online at guardiangenerators.com or call 1-800-333-1322 GENERAC POWER SYSTEMS, CIRCLE 115 ON READER SERVICE CARD Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents 004-RVB02 PG CV4 GE 1/17/08 4:17 PM Page CV4 Puzzled by your current business lender? Growing your business shouldn’t be this hard. Neither should finding a lender who understands the needs of growing businesses just like yours. At GE, we understand that your customers’ needs are always changing. These changes present both challenges, as well as opportunities. For nearly 30 years, GE has earned the reputation as a name the RV industry has come to know and trust. Our unique product and service solutions are designed to help position your business for growth – today and in the future. Maybe it’s time you took the guess work out of finding a solution that’s right for you. Let us show you how to improve working capital, reduce risk and grow your current customer base. From inventory, equipment and consumer financing, to real estate and business credit cards – GE can put the pieces in place for a solution that’s right for you. For a simple solution... call us today. You’ll be glad you did! Inventory and Other Financing, Call GE Capital Solutions at 800-289-4488 Consumer Financing, Call GE Money at 800-234-2647 GE, CIRCLE 124 ON READER SERVICE CARD 08RV005 Go To: Go To: Go To: Go To: .com .com .com .com User User Guide UserGuide Guide Contents Contents Contents Welcome to our digital edition of RV Business Magazine. This format makes it easy for you to navigate the magazine and provides direct links to Internet sites of our advertisers, our RVBusiness.com Web site, and many Web sites to supplement our editorial features. Here are some tips on how to use Digital RV Business: Go Go To: GoTo: To: Go To: .com .com .com .com User Guide User Guide User Guide User Guide Contents Contents Contents Contents • Click on the RVBusiness.com button to go directly to our Web site. • Click on the User Guide button on any page to bring you back to this page. • Click on the Contents button to take you to the Table of Contents page from anywhere in the magazine. • When the hand icon changes to a pointing finger, it indicates a link to a Web site or to another page in the magazine. • Use the Zoom tool to zoom in on the page. Use the Zoom-out tool and hold down the option (Macintosh) or Windows key to toggle back and forth. • Click and drag using the Dynamic Zoom infinitely control the zoom. tool to We recommend a Page Layout view of Continuous - Facing, but Adobe Reader provides several options you may prefer. We hope you enjoy reading our Digital RV Business Magazine and we encourage your comments and suggestions to our editor atb [email protected]