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001-RVB_0708_FrtCover 7/19/07 1:55 PM Page 1 RVBUSINESS.com VOLUME 58, NUMBER 5, AUGUST 2007 © New 80,000-square-foot RV/MH Hall of Fame, Museum & Library Celebrates Grand Opening Go To: .com User Guide RV/MH Heritage Foundation Inc. board members & guests Contents 002-RVB0708 PG. 2 MONACO 7/18/07 6:02 PM Page 2 2 4 /7 / 3 6 5 / L I F E T ECHNICAL S UPPORT “Monaco’s service after the sale is hands down, way above any of the other manufacturers that I’ve handled in 20 years.” Jim Rampton, Simi RV Simi Valley, California ONLY MONACO OFFERS ROUNDTHECLOCK ASSISTANCE FOR THE LIFE OF THE PRODUCT. “No other manufacturer can match Monaco’s offerings. No one even comes close.” Anyone can offer 24/7 roadside assistance. But who’s going to help your customers figure out their DVD player or hookups at 10:30 p.m.? Only Monaco has technicians on call 24/7 to answer your customers’ questions — not just for a year, but for the entire life of the product. Now that’s a difference you can sell. Isn’t it time you called Monaco? Kay Toolson, CEO ® www.monacodifferent.com . 877-252-4666 TM MONACO COACH CORPORATION, CIRCLE 104 ON READER SERVICE Go To: .com User Guide Contents 003-RVB_0708_LO_TOC 7/20/07 3:08 PM Page 3 VOLUME 58, NUMBER 5, AUGUST 2007 © 44 DEPARTMENTS 4 22 35 49 50 52 36 TOP OF THE NEWS 7 7 10 10 12 12 14 14 RV Industry Associations Lobby for Balanced CAFE Standards Blue Bird Corp. Sells Coach Lines to Complete Coach Works 21 Candidates to Contend for 12 Seats on 2008 RVIA Board Dura Agrees to Sell Atwood Mobile Products to Insight Equity Monomoy Set to Merge Western RV, Pilgrim International Inc. General Coach West Tops RVDA of Canada Warranty Survey Plant Closures Figure Into Fleetwood 4Q, Fiscal Year Losses Cequent Acquires Quest Technologies’ Fifth Gear Product Line NEWS IN FOCUS 19 AGI Events Division Grows Recreation-Based Show Portfolio OEM SHOWCASE 26 Heartland Prepares to Enter High-Volume Travel Trailer Market COVER STORY 30 RV/MH Hall of Fame, Museum & Library Celebrates Opening SPECIAL SECTION — ’08 OEM REVIEW 36 38 39 40 40 41 58 Monaco Emphasizes Motorized Lines at 2008 Dealer Congress Coachmen Debuts New Georgie Boy, Expands Wyoming Line Gulf Stream Unveils New Toy Hauler and ‘Ultra Large’ Class A New Four Winds, Mandalay Models Aim at Higher-End Market Damon Introduces Redesigned Daybreak to Dealer Network Cameo, Domani Floorplans Highlight Carriage Conference KZ RV Showcases Upgrades to Fifth-Wheel, Travel Trailer Lines State of the Art In Brief Retail Trends Public Domain Ad Index Classifieds THIS PAGE: Monaco opened its 2008 Dealer Congress with a reception at Studio 54, inside the Las Vegas MGM Grand Hotel & Casino (page 36). Built on a Chevy Kodiak medium-duty truck chassis, the 4000 series minimotorhome from Bigfoot Industries is right at home in cold climates (page 46). COVER: Board members of the RV/MH Heritage Foundation Inc. and a few close friends celebrate the official opening of the RV/MH Hall of Fame. Pictured, front to back left: “Boots” Ingram, Ron Wheeler, Dave Rand, Newt Kindland, Jay Hesse; left center: Ross Kinzler, Bobby Glass, Al Ruhl, Jerry Haggadone, Lon Larson; right center: Don Magary, Larry Campbell, Darryl Searer, Dave Altman, Barry Cole, Mike Schneider; right: Jim Scoular, Phil Ingrassia, Bruce Hertzke, Jim Visser, Carl Ehry. Photo by Shawn Spence. RV Business (USPS 920-340) is copyrighted 2007 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. AUGUST 2007 Go To: .com User Guide RVBusiness Contents 3 004-RVB_0708_LO_State of A 7/19/07 2:22 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 Pulse of the Industry: Stronger Than You Think SENIOR ADVERTISING Brenda Hutchinson Gerald Vandiver IMAGE EDITOR Robert Peterson ASSISTANT CIRCULATION DIRECTOR Jill Anderson FULFILLMENT MANAGER Melissa Robinson CIRCULATION MANAGER Mike Blakely PRODUCTION MANAGER PREPRESS SPECIALIST ou know, I’ve never had much patience for blind optimism. I always believed in shooting straight and leaving all of the happy talk and fanfare up to the cheerleaders, sales managers and televangelists. So, please don’t take it lightly when I tell you, after monitoring an ocean of information during the past few weeks, that the industry’s pulse appears to be remarkably strong right now. Now, that’s not to say that everything is coming up roses. It’s not. Insiders say there’s plenty of soft spots in the marketplace right now in an economic environment in which escalating gas prices and relatively high interest rates clearly have taken their toll. But the simple fact of the matter is that selected companies — and we won’t name names — appear to be outperforming a market that was down at wholesale through May nearly 14%. As Winnebago Chairman and CEO Bruce Hertzke so aptly put it in a recent RVBusiness interview: “We are in a downturn. But if you go back to 20012002, we’d have jumped at having these numbers. So, it’s not a terrible market. I’ve seen tough times, and these are not tough times.” Indeed, anyone familiar with the industry knows that there seems to be more of a pulse right now than we might have expected — a relatively strong pulse that seems to reflect a more modern and mature industry that doesn’t bolt for the door at the slightest hint of disruption. On the accommodations side of the business, the nation’s campgrounds are busy to say the least. According to USA Today, Americans “defied” high gas prices to jump into recreational vehicles in droves during the July 4 holiday to visit parks operated by organizations like Thousand Trails Inc. and Kampgrounds of America Inc. In fact, in an e-mail received as we prepared to go to press with this issue, KOA reported that summer camper nights in mid-July were up 3.3% over 2006 — and advance reservations for August had grown a whopping 22.5%. And through it all, new and expanded RV accommodations are being launched at an impressive rate — from Port Sanilac, Mich. (where 395-site Lake Huron Campground opened its gates during the July 4th holiday) to Trenton, Me. (where $4.5 million in renovations were just completed to Equity LifeStyle Properties Inc.’s Narrows Too resort) to Sault Ste-Marie, Ontario (where construction just got underway at 70-site Mark’s Bay Cottages & Campground) to Bristol, Tenn. (where local officials have created a special Recreation Vehicle Development District to accommodate waves of RVs that converge for races at Bristol Motor Speedway (BMS). The bottom line is that business is pretty decent. Now, all manufacturing executives have to do is convince people at different levels, including dealers, of this reality. That’s not always a simple task, as Monaco President John Nepute points out in our Monaco Dealer Congress coverage on page 36. “We are trying to tell our dealers that the market is actually going pretty well for us and, by extension, pretty well for them,” he said. “We are seeing retail levels looking pretty good for us right now. Yet, you see reluctance on the dealers’ part to stock because they are cautious because industry people are saying it’s a cautious market. It’s one of those things that’s almost self-fulfilling. If you don’t restock, eventually your sales are going to go down. We are trying to encourage them to keep their inventory levels up.” 6 Y 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 Nancy Chavanothai CLASSIFIED 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 MIDWEST SALES MANAGER Peg Recchio 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 ADVERTISING SALES 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: AUGUST 2007 .com User Guide Contents 005-RVB0708 PG. 5 B OF A 7/18/07 6:03 PM Page 5 Opportunity Starts Here® Complete dealer solutions from one bank. Look to Bank of America as the single source for all your dealership needs. With more than 40 years of accumulated industry experience, we offer a broad spectrum of solutions designed to help you focus on the future—from floor plan financing, retail credit, deposit services and fraud prevention, to merchant card, wealth management and much more. You can count on Bank of America to help build your success. To learn more, visit us at bankofamerica.com/rvdealer. Bank of America, N.A. Member FDIC. ©2007 Bank of America Corporation. Go To: BANK OF AMERICA, CIRCLE 108 ON READER SERVICE CARD .com User Guide Contents 006-RVB0708 PG. 6-7 FORD 7/18/07 6:03 PM Page 6 FORD RV www.commtruck.ford.com Go To: .com User Guide Contents 006-RVB0708 PG. 6-7 FORD 7/18/07 6:03 PM Page 7 THE BEST-SELLING RV CHASSIS OUT THERE. NOW APPEARING IN A LIFE NEAR YOU. Why is the Ford Super Duty® frame the RV chassis sales leader? Nothing else delivers the same Built Ford Tough peace of mind. What’s more, our Class A chassis features the best-in-class power and torque of the 362-hp Triton® V10 engine. And our Class C chassis boasts best-in-class towing. No wonder they’re so easy to get sold on. FORD MOTOR MEDIA, CIRCLE 120 ON READER SERVICE CARD Go To: .com User Guide Contents 008-RVB0708 PG. 8 DTI 7/18/07 6:02 PM Page 8 DTI RV PARTS & APPLIANCES, CIRCLE 102 ON READER SERVICE CARD Go To: .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:02 PM Page 9 RV Industry Lobbying for Sane CAFE Rules of the NEWS Lazydays Co-Founder Wallace to Retire in August After 30 Years Don Wallace, co-founder and chairman of Lazydays RV Center Inc., the nation's largest singlesite RV dealership, will follow through with his announced plans to retire on Aug. 2. But the 58year-old Tennessee native says he’ll remain active in Tampa, Fla.area redevelopment projects and with the dealership on an asneeded basis. "I don’t have any intention about not continuing to work," Wallace told RVBusiness. "I’ll be there (at Lazydays) whenever I’m needed for whatever I’m needed for. I’ve still got a strong financial interest in Lazydays. It’s not something that I won’t pay attention to." Wallace’s retirement date marks his 30th anniversary with the company. Wallace founded the company in 1976 with his father H.K., brother Ron, mother Edith, and sister Connie. Their initial investment of $500 brought two travel trailers to a small dirt lot in Tampa. Lazydays relocated in 1996 to a 156-acre site in a country-club setting along Interstate 4 in the Tampa suburb of Seffner, and in 2006 reported sales of $757.3 million. continued on page 18 RVIA, RVDA, ARC join fight “for a reasonable CAFE standard that allows our customers to continue using their recreational vehicles.” The future of traditional RV trailer tow vehicles is seemingly up for grabs, as Congress wrangles over new Corporate Average Fuel Economy (CAFE) standards that could severely limit the power, size and availability of today’s heavy haulers in the next decade. RV associations intensified their efforts to preserve the heavy haulers in June, followProposed CAFÉ standards exempt “work trucks” of 8,500 to 10,000 pounds ing the U.S. Senate’s enactGVW, but don’t define the term. Light-truck MPG to increase substantially. ment of potentially harmful new standards. They call for a year. It’s uncertain how that would affect combined car and light-truck CAFE of 35 motorhomes, but the National Automobile miles-per-gallon (MPG) by 2020, but exempt Dealers Association (NADA) and the so-called “work trucks” with gross vehicle American Truck Dealers Association are weights (GVW) of 8,500 to 10,000 pounds. very concerned about its impact on truckAs Dianne Farrell, vice president of gov- market economics. ernment affairs for the Recreation Vehicle The House Energy and Commerce Industry Association (RVIA) pointed out, Committe, chaired by industry ally John the question of what constitutes a “work Dingell (D-Mich.), is currently seeking comtruck” still has to be defined at some future promise legislation based on other CAFE time by the U. S. Secretary of Transportation. proposals in the House. The Senate bill also requires the fuel effiRegardless of the outcome, “some form of ciency of medium and heavy trucks — those CAFE is inevitable, no matter how the more than 10,000 pounds GVW — to industry fights it,” said George Magliano, increase 4% per year after the 2010 model continued on page 23 Blue Bird to Sell Wanderlodge RV, Coachworks Coach Product Lines Divesture Allows Company to ‘Return to its Roots’ as School Bus Manufacturer coach brand names, includes the 450LXi and M380 vehicles. Complete Coach Works, founded in 1987, is the nation's largest supplier of remanufactured trans- Blue Bird Corp., Fort Valley, Ga., announced July 17 that it will sell its luxury Wanderlodge RV and Coachworks Coach product lines and manufacturing facility to bus retrofitter Complete Coach Works of Riverside, Calif. The Blue Bird Coachworks line currently includes the 40- and 45-foot Express Commuter Coach models, while Blue Bird’s Wanderlodge line, among the nation’s oldest luxury motorDon Wallace Wanderlodge continued on page 18 AUGUST 2007 Go To: .com User Guide RVBusiness Contents 9 009-RVB_0708_LO_TOP 7/20/07 3:05 PM Page 10 TOP OF THE NEWS RVIA Fields Slate of Candidates for ’08 Board of Directors from seven to two. “The concern has been to make sure we had proper representation across the manufacturer and supplier base,” said Robert M. “Mac” Bryan, RVIA vice president of administration. “The changes made it easier for the nominating committee to find candidates across the membership. The election will bring a lot of new faces to the board, which was the goal.” Seven manufacturer seats are in contention this year. Candidates vying for available seats include: Two one-year term seats: DeWayne Creighton, Dynamax Corp., Elkhart, 21 Applicants Contend for 12 Seats, Including Seven Manufacturer and Four Supplier Chairs The Recreation Vehicle Industry Association (RVIA) nominating committee has selected 21 candidates to compete for 12 board seats during the association elections in August. The elections are the first since the RVIA board changed the association's bylaws to increase the number of manufacturer seats by two members for a total of 12 and the number of supplier seats by three for a total of seven. At-large seats were reduced continued on page 20 BRAUN CREIGHTON ECKENROAD ESKRITT FORE GILBERTSON HANEMAAYER HOWARD HUGHES JULIANO McSWEENEY RHYMER RUHL SHELDON SUNSHINE TERLEP THOMPSON TIERNEY WALDOCH WARMOTH WILLIBRAND Dura Agrees to Sell Atwood Subsidiary to Insight Equity Dura Automotive Systems Inc., an auto-parts maker that is reorganizing while in bankruptcy, announced an agreement to sell its Atwood Mobile Products unit for $160.2 million to Insight Equity, operating under the name Atwood Acquisition Co. LLC. With 2006 sales of approximately $330 million, Elkhart, Ind.-based Atwood supplies a broad range of products to the recreation vehicle, spe10 RVBusiness Go To: cialty vehicle and manufactured housing markets. The division’s lines include windows and doors, specialty glass, hardware appliances and electronics. Dura said in May that it was seeking a buyer. "This agreement is a major milestone in our restructuring efforts," Dura Chairman and CEO Larry Denton said in a statement. U.S. Bankruptcy Court Judge Kevin Carey in Wilmington, Del., was expected to approve procedures for a sale at a hearing on July 24, after which an auction for the unit will be held in August. If no other bidders top Insight's offer, it would be declared the winner. Under the proposed sale procedures, Insight would collect a $3.2-million fee if it doesn't win the auction for the subsidiary. Rochester Hills-based Dura said it hopes to complete the sale by the end of August. 6 AUGUST 2007 .com User Guide Contents 011-RVB0708 PG. 11 FREIGHT 7/18/07 IT’S ALL IN THE 6:04 PM Page 11 FAMILY. Tag-axle Chassis Formed-rail Chassis From our high-end Tag-axle to our entry level FRED, no one offers a wider choice of diesel motorhome chassis than Freightliner Custom Chassis. XC Chassis Our XC and Tag-axle chassis set the industry standard for high-end performance and durability. Plus, the XC comes in straight-rail, raised-rail and formed-rail configurations…a clear example of Freightliner’s constant innovation to address specific customer needs. Then, there’s FRED, the industry’s only Class A FRont-Engine Diesel chassis, an entry-level diesel that’s a superior alternative to gas. FRED Chassis Power. Performance. Innovation. Choice. The Freightliner family has it all. Call for details. 1.800.545.8831 1.800.545.8831 | freightlinerchassis.com Call Freightliner Custom Chassis Corporation at (800) 545-8831, or visit us on the Web at www.freightlinerchassis.com. FCC/MC-A-030. Specifications are subject to change without notice. Freightliner Custom Chassis Corporation is registered to ISO 9001. Copyright 2006, Freightliner LLC. All rights reserved. Freightliner Custom Chassis Corporation is a member of the Freightliner Group. Freightliner LLC is a DaimlerChrysler Company. Go To: .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:05 PM Page 12 TOP OF THE NEWS General Coach West Tops RVDA of Canada Poll Dealer Study Surveyed Warranty, Parts Issues Monomoy Expected to Merge Western RV, Pilgrim International New team (left to right): Jerry Rummel, CFO; Doug Lantz, Vice President of Product Development; Richard Fish, CEO; Steve Bennett, President and COO; C. David Hoefer, Chairman; and Jerry Sell, Vice President of Sales and Marketing. Company Will Maintain Separate Manufacturing Plants, But Combine Corporate Units in Indiana In a surprise development to most in the industry, Monomoy Capital Partners L.P. has agreed to merge Western Recreational Vehicles Inc. (Western RV), a manufacturer of high-end recreational vehicles based in Yakima, Wash., with Pilgrim International Inc., a mainstream towable manufacturer in Middlebury, Ind. The transaction was expected to close in July. “The merger expands the presence of both companies in the RV industry and combines the resources of the two, well-established and wellknown brands,” the two companies stated in a joint release. Focused on travel trailers and fifth-wheels, 5-year-old Pilgrim has grown to become the 15th-largest manufacturer in the towable arena. Western RV, in turn, is an old-line, 36-year-old company specializing in the design and manufacture of “premium” Class A’s, fifth-wheels and truck campers. Western RV also builds the automotive chassis for its products, making it one of only a few vertically integrated manufacturers in the industry. It also distributes and services its motorcoaches, including the Alpine Coach, a premier diesel pusher, through a network of independent U.S. and Canadian dealerships. The new company will continue to operate facilities in both Yakima and Middlebury with a combined 750,000 square feet of production capacity and more than 750 employees, while its corporate team will operate out of Middlebury. Pilgrim Chairman Dave Hoefer will serve as board chairman of the merged company, while Pilgrim President Steve Bennett assumes responsibilities as president and COO of the new entity. Richard Fish, an operating partner from Monomoy, will be continued on page 23 Airstream Honors New Jersey Dealer During Las Vegas Event Lakewood, N.J., dealer Colonial Airstream captured top honors for sales volume for the third year in a row at the annual Airstream dealer show June 8 in Las Vegas. Airstream, along with the management teams of many of its 90 U.S. dealerships, also hosted representatives from Airstream Japan and Airstream Europe at its annual dealer event. "Airstream sales have more than doubled over the last five years," states a corporate release from Airstream Marketing Director Ben Owen. "Even as high fuel prices have slowed recreation vehicle sales across the nation, Airstream has remained one of the shining lights in the industry … that’s a credit to Airstream’s dealer network.” 12 RVBusiness Go To: The top 10 Airstream dealers for the 2007 fiscal year are as follows: Colonial Airstream, Lakewood, N.J.; Southwest Coaches, Irvine, Calif.; Bates RV, Dover, Fla.; George M. Sutton RV, Eugene, Ore.; California RV Sales, Fontana, Calif.; Toscano Recreation, Los Banos, Calif.; Airstream of Arkansas, Searcy, Ark.; Revolution RV, San Diego; Bill Thomas Camper Sales, Wentzville, Mo.; and Randall Noe Airstream, Rockwall, Texas. Leading the Airstream pack in terms of motorized sales are Colonial Airstream, California RV, Intermountain Coach Leasing of Colorado Springs, Colo., Bates RV and Toscano Recreation. Top international retail sales kudos went to Airstream Japan, while “Rookie of the Year” honors went to Airstream of Chicago. 6 AUGUST 2007 .com A 2006 survey of 129 RV dealers in Canada revealed a 63.3% overall satisfaction rate when dealing with manufacturers on warranty and parts issues, according to the RVDA of Canada, which released the results in its June newsletter. The rating was close to the 63.8% rating posted in the 2005 survey, although RVDA of Canada President H. Wayne Hambly was quick to point out that the results of this survey are based on dealers’ responses at the time of the survey and do reflect policies of individual dealerships and manufacturers. “It would appear that warranty and parts issues are still a significant issue for dealerships,” the association’s leadership indicated in its June newsletter in which the results were published. “The final report suggests that there still needs to be improvement in dealer/manufacturer relations.” Among the findings: ■ Warranty labor rates ranged between $63.57 and $96.50 per hour, with the national average at $80.91; ■ Retail shop rates were almost identical at $80.90 per hour; ■ The average parts margin was 38.6%; ■ The number of technicians varied from one to 17, with an average of five per shop; ■ Percentages for warranty parts and handling allowances ranged from 0% to 100%; the national average was 18.5%. “Very few manufacturers do not give any handling allowance or markup for warranty parts,” the newsletter stated. “Fortunately, the majority of manufacturers gave allowances ranging between 10% and 40%.” The newsletter added: "In order to encourage qualified, career–oriented, professional technicians to join the RV industry, dealers and manufacturers must remain competitive. This requires a close monitoring of the flat-rate times allowed, as well as charge-out rates. There was a wide variance reported in the survey, which may indicate that some shops are not maintaining their service departments as a profit center." Ranking in the top ten were the following manufacturers: ■ General Coach West — 87.1 * ■ KZ RV LP — 81.4 * ■ Pleasure-Way Industries Ltd. — 81.3 * ■ Triple E RV — 75.3 * ■ Leisure Travel Vans Ltd. — 74.2 ■ General Coach-Ontario — 73.6 ■ Fleetwood Canada — 73.5 * ■ Bigfoot Industries — 71.3 ■ Glendale RVs — 70.3 ■ West Coast Leisure Homes — 70.2 (An asterisk indicates manufacturers ranked in the top 10 in the 2005 survey, as well as the 2003 survey results.)6 User Guide Contents 013-RVB0708 PG. 13 CAMCO 7/18/07 6:05 PM Page 13 CAMCO, INC., CIRCLE 107 ON READER SERVICE CARD Go To: .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:05 PM Page 14 TOP OF THE NEWS Plant Closures, Slumping Travel Trailer Sales Aggravate Fleetwood 4Q, Fiscal Year Losses Company Narrows Operating Loss as Motorhome Division Generates Best Performance in Two Years Fleetwood Enterprises Inc. on July 12 reported a $90 million net loss for the company's fiscal year, aggravated by declining travel trailer sales and related costs associated with plant closures in its fourth quarter. "Despite the significant restructuring costs from plant closures, the fourth quarter operating loss was, as expected, narrower than the third quarter," said Elden L. Smith, president and CEO of the Riverside, Calif.-based recreational vehicle and manufactured housing builder. "The difficult market environment was particularly evident in our travel trailer division, where poor operating results prompted us to reduce manufacturing capacity by closing five smaller or underperforming travel trailer plants.” Fleetwood’s aggressive actions to stem its overcapacity were met with an uptick in the company’s stock price. The stock closed at $11.37 on July 12, a 15-month high. Fleetwood’s travel trailer losses offset improvement in motorhome revenues, which increased 12% during the quarter. Revenues for the fourth quarter, ended April 29, declined 16% to $508.4 million from $602.6 million the prior year while the net loss, including discontinued operations, was $39.2 million compared to net income of $1.7 million. For the full year, sales fell 17% to $2.01 billion from $2.43 billion the previous year while the net loss totaled $90 million versus a net loss of $28.4 million. Looking ahead, Smith said the company’s restructuring efforts along with new product introductions would improve performance in fiscal 2008. “We have been gratified by the reaction to the early shipments of our ’08 travel trailer prod- ucts,” he said. “We believe that our companywide efforts to eliminate inefficiencies, curtail costs and increase revenues through enhanced products will provide a foundation for Fleetwood's consistent operational improvement. These factors combined with more efficient operations are expected to yield considerably better financial results in the next year.” A performance breakdown for the company’s RV segments in the fourth quarter showed: ■ RV sales were down 11% to $382 million from $430.2 million in the fourth quarter of the prior year. ■ The RV Group incurred a quarterly operating loss of $18.4 million compared to the prior-year fourth quarter operating profit of $2.2 million, which was aided by $33 million in sales of emergency living units pro- continued on page 23 Cequent Acquires Fifth Gear Tow Products Line Jayco Australia Debuts Platinum 'C' Coach on Fiat Ducato Chassis Jayco Australia has introduced the Jayco Platinum, a right-handdrive minimotorhome built on a Fiat Ducato chassis with a 154hp turbodiesel engine estimated to get 19.5 miles per gallon. The coach, however, isn’t likely to make it to the United States any time soon. “We just can’t get that chassis here,” said Jim Jacobs, vice president of sales and marketing for Middlebury, Ind.-based Jayco Inc. “Fiat doesn’t have the service network set up in the United States.” One Australian blogger characterized the Platinum’s front end as being straight from a science fiction movie. With a metallic finish, the Jayco Platinum features two body style designs — one with a high roof that enables more sleeping area, and a second with a lower roof offering more storage space and less wind resistance. The interior features Eurostyle wood paneling and leather upholstery with a front passenger seat that swivels into the vehicle’s living area. Other features include double-glazed windows with separate screens and UV blinds, a security door and child-restraint anchors that allow additional seating. MSRP: About $94,000 (U.S.). 6 14 RVBusiness Go To: The Cequent Towing Products group of TriMas Corp. has expanded its fifth-wheel product offerings through the acquisition of Quest Technologies’ Fifth Gear product line. The company said the addition of the Fifth Gear line complements Cequent's towing products marketed under the Reese, Draw-Tite and Hidden Hitch brands. Fifth Gear products include the Fifth Airborne pin coupler, Sidewinder pin coupler, Fifth Airborne Sidewinder pin coupler, Standard pin boxes and the Toy Lok security system. These products were manufactured in Elkhart, Ind., and will relocate to Cequent facilities in Goshen, Ind. The deal was finalized on July 12. A purchase price was not disclosed. Cequent said Bob Mater, a principle in Quest Technologies and former president of Reese Products, will serve as general manager for the Fifth Gear division. Fifth Gear products are currently offered as optional equipment by several fifth-wheel RV manufacturers and marketed through RV dealers and service centers via a network of distributors. The line is also sold directly to consumers at Camping World stores. “We are extremely proud of this opportunity to expand our product offerings to our customers, as well as the ability this will afford to help further strengthen our towing business,” said Ed Schwartz, group president of the Recreational Accessories and RV and Trailer Products groups of TriMas. “The Fifth Gear product line is an ideal product extension to our heavy-duty towing line. Moreover, it is a seamless fit to our organization as it leverages our world-class manufacturing operation in Goshen.” Cequent Towing Products, headquartered in Plymouth, Mich., is part of TriMas’ Recreational Accessories group. 6 AUGUST 2007 .com User Guide Contents 015-RVB0708 PG. 15 KEY BAN 7/18/07 6:07 PM Page 15 !SINGLESOURCE-ANYFINANCINGOPTIONS +EY2ECREATION,ENDINGTAKESTHETIMETOUNDERSTANDYOUR DEALERSHIPSBUSINESS7ITHOVERYEARSOFEXPERIENCEINTHE RECREATIONLENDINGINDUSTRY+EYPRIDESITSELFONDELIVERINGHIGHQUALITY RESPONSIVESERVICETHROUGHKNOWLEDGEABLEPROFESSIONALS$EALERS HAVEACCESSTOAWIDERANGEOFFINANCIALOPTIONSINCLUDING s.EWANDUSEDINVENTORYFINANCING s%QUIPMENTFINANCINGLEASING s7ORKINGCAPITALLOANS s2EALESTATEFINANCING s4REASURYMANAGEMENTPROGRAMS s2ETAILFINANCINGPROGRAMS &ORMOREINFORMATIONPLEASECALLORVISIT WWW+EYCOMKRLDEALER !CHIEVEANYTHING +EY2ECREATION,ENDING KEYCORP, CIRCLE 115 ON READER SERVICE CARD !LLLOANSSUBJECTTOCREDITAPPROVAL Go To: .com ¥+EY#ORP User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:06 PM Page 16 TOP OF THE NEWS National RV Hosts Dealers, Officially Announces David Humphreys New Chairman Appointment of Former RVIA President “Well Received” RV manufacturer National RV (NRV) recently conducted a three-day meeting in Riverside, Calif., for a select group of affiliated RV dealerships, its first since the February sale by NRV’s parent company, National RV Holdings Inc., of sibling division County Coach Inc. In addition to attending receptions and meetings, the NRV dealers traveled to the company’s production plant in nearby Perris for a tour. During the June meetings, the formal announcement also was made to the group that former Recreation Vehicle Industry Association (RVIA) President David Humphreys had been appointed the company’s new board chairman. Humphreys said he is optimistic regarding the company’s planned financial turnaround. "I know we have challenges ahead," he noted. “I’m not going to stand here and say we don’t have more things to overcome. We do. But I can say this: I’m not aware of a single thing that we cannot overcome easily if we pull together. I’m looking forward to happy days ahead." Humphreys’ appointment, likewise, was well received by dealers. John Millis, director of product planning, spoke to the group during the weekend about the development of new products and stressed that in coming years National RV’s engineering teams are committed to introducing specialized items, and have no desire to just clone competitors’ products. “We recognize and appreciate that NRV already has a rich heritage and history of distinctive product lines,” said Millis. “We don’t want to ignore or minimize that heritage, but rather embrace and enhance it with new technology and innovations. We want to engineer these new products so that they are not easily duplicated by our competitors, as with our patentpending TeleSlide. We want to bring out things that are distinctly National RV.” Travel Supreme Repositions ’08 River Canyon Luxury motorized and fifth-wheel table at the mid-price point.” The 2008 River Canyon is available in manufacturer Travel Supreme Inc. is reaching out a bit more to mid-priced a dozen 31- to 38-foot floorplans with up fifth-wheel buyers with the reposition- to four slideouts, at retail base prices of ing of the 2008 River Canyon fifth- $32,590 to $38,340. The mid-summer rollout also breaks wheel line. The more affordably priced 2008 the Travel Supreme tradition of introducRiver Canyon by Travel Supreme reflects ing new models exclusively at the an approximately 10% retail price reduc- Louisville Show in late fall. The introduction across the board, plus the addition tion to dealers beginning around Aug. 1 of standard equipment that previously will be accompanied by a new print advertising campaign in consumer and had been optional. The 2008 River Canyon more firmly trade publications. “We are definitely putting a push on establishes itself as the entry point to the Wakarusa, Ind., company’s brand lineup brand name awareness," Whitehead that includes Select, Travel Supreme, said. “We have every intention of making Rally Sport SURV and Travel Supreme this a high-volume division.” 6 Classic fifth-wheels. “It’s a combination of a lower price point and getting more equipment for less,” said Brad Whitehead, River Canyon division manager. “The 2008 River Canyon has more standardized features. We are bringing the Travel Supreme name and its reputaStandard features in ’08 River Canyon include Corian countertops, tion for quality to the solid hardwood interiors and DuPont Stainmaster carpet. 16 RVBusiness Go To: National RV’s patentpending TeleSlide Having said that, the dealers got a sneak peek of the company’s new Rip Tide and Nautica motorized product lines that are to debut in December at the Louisville Show, and they also heard about some new designs that are still in the early stages of development. Included in those targeted new lines are more affordable gas and diesel coaches vs. “high-end products that are more expensive and that have been slowing down in sales” during the past two years. 6 WCM Debuts BusinessOriented Website That Targets Campgrounds Industry insiders can do a better job of keeping up with the latest developments in the RV, park and campground industries with Woodall’s Campground Management’s (WCM) new website WOODALLSCM.com. Modeled after RVBUSINESS.com, the website of its sister publication, RVBusiness magazine, WCM’s new site features a wide variety of business news from both the recreational vehicle and campground sectors — posted whenever it’s available — in addition to archived news stories, features, columns, an up-todate calendar of events and a national bulletin board of campgrounds for sale. Also part of the new site, located at www. woodallscm.com, is WCM’s annual business directory — an extensive listing of product-and-services vendors, consultants, finance specialists, insurers, associations and more that appears each year in the January print issue of WCM. "Things have reached a point, with the growth of content, advertising and pages in WCM over the past five years, that we felt it was long past time to move ahead and establish a bridgehead on the World Wide Web,” noted WCM Publisher Sherm Goldenberg, vice president of RV Trade Publications for Affinity Group Inc., Ventura, Calif., which publishes more than 40 monthly and annual titles. “We think people will like what we do to the extent that they’ll want to include us on their regular web search rounds.” 6 AUGUST 2007 .com User Guide Contents 017-RVB0708 PG. 17 CUMMINS 7/18/07 6:05 PM Page 17 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 in action at select motor coach dealers this summer 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 121 ON READER SERVICE CARD Go To: .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:06 PM Page 18 TOP OF THE NEWS Wallace from page 9 ON THE ROAD OF LIFE IT’S GOOD TO KNOW WHAT LIES AHEAD ... OR BEHIND. RiverPark can’t save RV owners from the unexpected but we can get them where they’re going safely and expediently with superior tools from Sony® and Garmin.® Sony offers a revolutionary new Rear/Side Camera-Monitor VCB-62MH system that features the first and only true 16:9 format. It also provides unprecedented viewing angles of 95 degrees vertical and 120 degrees horizontal. The stylish monitor minimizes glare but maintains accurate color reproduction, with exceptional resolution, brightness and contrast. Sony’s Standby feature eliminates the need to manually switch to the side view cameras when engaging in a right or left turn. Garmin, a leader in Global Positioning System technology, now offers a true OEM integrated navigation system for the RV market. Integrated with an existing coach monitor and operating with a convenient RF remote control, the new GVN52 GPS system black box solution features voice-to-speech technology and NavTec™ map database pinpointing over six million points of interest. As the industry’s leading supplier of quality RV electronics, you can count on RiverPark to provide high quality too. Give your customers nothing but the best with Sony RearVision and Garmin navigation systems from RiverPark. AUTHORIZED OEM DISTRIBUTOR W W W. R I V E R P A R K I N C . C O M RIVER PARK INC., CIRCLE 109 ON READER SERVICE CARD Go To: COO John Horton replaced Wallace as president and CEO in 2005. A majority of Lazydays’ stock today is held by the New York-based private equity firm Bruckmann, Rosser, Sherrill & Co. (BRS), which bought a majority interest in the company three years ago after it operated as an Employee Stock Ownership Plan (ESOP) for several years. Philanthropy, meanwhile, has become a priority for Wallace. In 2004 the Don and Erika Wallace Foundation donated $5 million to a Tampa cancer research program, while Wallace at the time served on the boards of eight charitable foundations. Through the foundation, he has aided atrisk children and families and had a hand in cultural arts, economic and community development, public health and medical research and education. Currently, Wallace is working with others to redevelop mixed-income homes for people living in a 500-unit public housing project that is being torn down. "I enjoy working on it because it gives them a little spark in their lives," said Wallace, for whom Tampa Mayor Pam Iorio in 2005 proclaimed April 7 to be Don and Erika Wallace Day for their work in the community. In January, Wallace received the H.L. Culbreath Profile in Leadership Award from the Greater Tampa Area Chamber of Commerce. 6 Blue Bird from page 9 portation vehicles, emission upgrades and wheelchair lift retrofits. “The acquisition represents a perfect fit and will provide an opportunity for the expansion of our operations to the Southeast,” said Complete Coach Works President and CEO Dale Carson. “We look forward to our long-term association with the Fort Valley (Ga.) community and continuing to be a vital part of their economic foundation.” The transaction is part of Blue Bird’s long-term strategy refocusing the company exclusively on the school bus market. “The sale of Blue Bird Coachworks to Complete Coach Works marks the end of our initial product line rationalization plan,” said Blue Bird CEO Bob Shaughnessy. “This transaction represents an important step toward returning Blue Bird to its roots as the nation's premier school bus manufacturer.” Shaughnessy also expressed his satisfaction that as part of the new agreement, Complete Coach Works will remain economically committed to the Fort Valley and Central Georgia communities. The sale of Blue Bird’s remaining non-school bus lines represents a key element of the company’s corporate strategy. Earlier, Blue Bird’s Ultra LF and Xcel 102 transit buses became part of affiliated transit bus manufacturer North American Bus Industries Inc. (NABI) and their manufacture was moved to NABI’s Anniston, Ala., facilities. During the transition period, Blue Bird and Complete Coach Works will work closely to ensure ongoing parts and service support. 6 © 2 0 0 7 R I V E R PA R K I N C . .com User Guide Contents 019-RVB_0708_LO_NIF_AGI_Ev 7/19/07 2:42 PM Page 19 NEWS IN FO CUS First held in 1999, The Rally (formerly the Great North American RV Rally) has grown into one of the largest RV events in the country. AGI EVENTS GROWS RECREATION-BASED SHOW PORTFOLIO ■ B Y D AV E B A R B U L E S C O he success of last April’s Pomona RV and Travel Show represented an important benchmark in a new tier of growth for AGI Events, a division of Affinity Group Inc. (AGI) that launched and operates the two-year-old Southern California consumer gathering. Since its founding in February 2005, AGI Events has built a solid portfolio of 35 recreation-focused shows in just more than two years — primarily through the acquisition of firms owning multiple-event packages in key areas of the country. The rollup strategy allowed the division to establish a hub of three regional offices to oversee operations while growing its staff to 26 employees. “Most of our shows are recreation-focused, including RV, boat, powersports and outdoor productions,” said Tom Gaither, senior vice president for Ventura, Calif.-based AGI Events. “And we have 13 shows that are strictly RV events. That’s a pretty strong platform to work from.” While still very intent on adding to that platform through additional acquisitions, AGI Events began launching its own lineup of shows last year. “It’s a natural progression for us,” Gaither said. “We very quickly were able to build this base of solid, established shows. T Company Now Produces 35 Events, Including 13 RV- Only Programs. Goal is 100 Shows. Now, we’re using that experience to start our own shows and add them to our existing offices. In addition to Pomona, which drew around 9,500 attendees this year, we launched RV shows in Ontario, Calif., and Des Moines, Iowa. In 2008, we’re adding an RV show in Roanoke, Va.” Steve Hedlund, president of AGI Events and AGI affiliate Ehlert Publishing Group Inc., said that he wasn’t surprised with the division’s rapid growth. He noted that Maple Grove, Minn.-based Ehlert had run a snowmobile show for 13 years while AGI — umbrella company to a slate of publications, clubs and services tailored to the recreation and outdoor sectors, including RVBusiness — developed The Rally in 1999, which has become one of the RV industry’s premier consumer shows. “We went into this anticipating that we could become a player in a relatively short period of time,” he said. “We expect to grow at this rate for another couple of years.” Mike Schneider, president and CEO of AGI, confirmed that the division would continue to operate on a fast track. “We are committed to growing this network,” he said. “We aren’t going to slow down until we get to 100 shows.” continued on page 24 AUGUST 2007 Go To: .com User Guide RVBusiness Contents 19 009-RVB_0708_LO_TOP 7/20/07 3:06 PM Page 20 TOP OF THE NEWS REALITY CHECK RVIA Board from page 10 Go RVing’s Committee on Excellence Spearheads Major Industry Focus on Quality-Control Issues Jim Sheldon As a co-chairman of the Go RVing Coalition’s Committee on Excellence (COE), Jim Sheldon has been at the forefront of the industry’s ongoing push for improved quality in both goods and services. It’s not an easy job. However, Sheldon, an assistant to the chairman of Monaco Coach Corp., seems to have a diplomatic style that enables him to gracefully strike a balance among the industry’s varying constituencies. RVBusiness touched bases with Sheldon in July regarding the COE’s June meeting, held during RVIA Committee Week in Washington D.C. RVB: Jim, we’re told that the COE entertained presentations from the chairmen of the task forces set up to help tackle the industry’s quality initiatives. What can you tell us about those presentations, the first held by the COE in about a year? SHELDON: It was exciting. The task forces are divided into five categories: warranty processing, parts replacement, industry training, communications and product quality, and each of the task force chairs presented a status report of what took place during the last year in each area. Marty Shea, the other co-chair of the COE, and I are continuously impressed with the caliber of the participants on each task force. These folks attend two to three meetings per year and participate in several conference calls to tackle the day-to-day challenges we all face — and they leave their stripes and their egos at the door and simply try to come up with workable solutions to how we are going to raise the level of customer satisfaction in our industry. RVB: Just to play Devil’s Advocate, some in this industry feel that customer satisfaction is clearly the province of individual companies and not the COE, an offshoot of an industrywide marketing coalition. By the same token, critics have speculated that a lack of substantive achievements during the past year is an indication that the COE isn’t doing much and is losing its momentum. How would you respond to that? SHELDON: Clearly, the ultimate responsibility for improving customer satisfaction rests on the shoulders of the individual manufacturers, suppliers and dealers. At the same time, many in the industry feel that the associations — specifically RVIA, RVDA, the state associations along with ARVC and RVAA — can and 20 RVBusiness Go To: should provide guidance and assistance which will help all segments of the industry to become more successful in raising the needle measuring customer satisfaction. And just to remind everyone, the COE tracked the level of customer satisfaction from 1997 to 2005, and that needle was just not going up. So, given the choice of leaving things up to individual companies or working together to tackle common across-the-board challenges, the Go RVing Coalition chose the second option. The point is that what the COE does is not instead of — but in concert with — what individual companies do to improve quality. RVB: No offense, Jim, but you still didn’t answer the second half of our question: What, if anything, did the COE accomplish this past year? SHELDON: Two accomplishments come to mind immediately. One is called STAR and the other is the Training Calendar. STAR is an acronym for Standards for Technology for Automotive Retail. This system was studied last year by our Communications Task Force. One of the common themes in our industry is the lack of consistent and accurate transfer of information electronically among dealers, suppliers and manufacturers. Lo and behold, our task force discovered that the same challenges existed in the auto, marine and motorcycle industries. But the difference was that these other industries figured out a way to come up with standards for data transfer which did not compromise the proprietary nature of participants’ data. So, the more we looked continued on page 56 Ind.; Jeff Hanemaayer, Roadtrek Motorhomes, Kitchener, Ontario, Canada; and Larry Hughes, Pilgrim International Inc., Middlebury, Ind. Two two-year term seats: Paul Eskritt, Fleetwood Enterprises Inc., Riverside, Calif.; John Rhymer, Heartland Recreational Vehicles LLC, Elkhart; and Mike Terlep, Coachmen Industries Inc., Elkhart. Three three-year term seats: Chris Braun, Teton Homes, Casper, Wyo.; Jay Howard, Country Coach Inc., Junction City, Ore.; Jim Sheldon, Monaco Coach Corp., Coburg, Ore.; Mark Warmoth, Weekend Warrior Trailers Inc., Perris, Calif.; and John Willibrand, Play-Mor Trailers Inc., Westphalia, Mo. Eight candidates are competing for four supplier seats, including: One two-year term seat: John Juliano, AL-KO Kober Corp., Elkhart; and Jack Tierney, Thetford Corp., Ann Arbor, Mich. Three three-year term seats: Dan Eckenroad, Power Gear/Kwikee, Mishawaka, Ind.; Gregg Fore, Dicor Corp., Elkhart; Jim Gilbertson, Flexsteel Industries Inc., Dubuque, Iowa; Al Ruhl, Manchester Tank & Equipment Co., Franklin, Tenn.; Stan Sunshine, Stag-Parkway Inc., Atlanta, Ga.; and B.J. Thompson, B.J. Thompson Associates, Osceola, Ind. Two candidates are competing for the three-year conversion vehicle seat, including: Rod McSweeney, Southern Comfort Conversions, Birmingham, Ala.; and Don Waldoch, Waldoch Crafts Inc., Forest Lake, Minn. Official representatives from RVIA member companies will elect candidates in each category to serve on the board. Election ballots will be sent out Aug. 3 and must be returned to RVIA by Aug. 24 to be counted. All terms begin Oct. 1. This year’s nominating committee is chaired by Bruce Hertzke, Winnebago Industries Inc., Forest City, Iowa, and includes Mel Adams, Airxcel Inc., Wichita, Kan.; Dick Parks, Newmar Corp., Nappanee, Ind.; and Art Wyatt, Dometic Corp., Elkhart. 6 AUGUST 2007 .com User Guide Contents 021-RVB08 PG 21 3M AUTOMOT 7/18/07 6:08 PM Page 21 Keep your customers looking great miles down the road Scotchgard™ Paint Protection Film safeguards an RV's paint from damaging stone chips, scratches and bugs. You get: · A proven product · Effective 3M merchandising support · Trusted 3M brand Visit our website to find RV specialists and to purchase model-specific kits www.3M.com/PaintProtectionFilm or call 888-663-1394. © 3M 2007. 3M and Scotchgard are trademarks of 3M. Go To: 3 M CORPORATION, CIRCLE 105 ON READER SERVICE CARD .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:06 PM Page 22 TOP OF THE NEWS Florida Billboards Promote FRVTA’s Dealer Program The Florida RV Trade Association (FRVTA) is laying out $24,000 to pepper the Sunshine State’s highway roadsides with billboards for the next year promoting FRVTA’s Certified Service Center program. “We are trying to brand the dealerships that are certified,” said Executive Director Lance Wilson. “We think it’s important.” The billboards of various sizes started going up in June and are red, white and blue with the yellow letters “FRVTA.org” below the slogan “Superior RV Service From Certified Experts.” FRVTA worked out advertising its program with the Florida Outdoor Advertising Association to put the FRVTA advertising message as a public service announcement on billboards that haven’t otherwise been rented. Twenty two of FRVTA’s 128 members are taking part in the 2-year-old Certified Service Center program that requires them to have certain facilities and a minimum number of RVIA/RVDA certified technicians. Dealerships that meet the criteria receive FRVTA certification and are highlighted in FRVTA publications and advertising. The perceived value of being a Certified Service Center dealership will be among the seminars at the 27th Annual FRVTA State Convention, Sept. 6-9 at Sanibel Harbour Resort in Fort Myers, Fla. Inspirational speaker and sports talk show host Bob Valvano — brother of the late Jimmy Valvano, coach of the 1983 North Carolina State national basketball championship team — will be featured. An awards banquet will conclude the convention on the last night. 6 22 RVBusiness Go To: May Towable Sales Grow 3.7%. According to Grand Rapids, Mich.based Statistical Surveys Inc., travel trailer registrations grew by 8.8% in May, pushing overall towable sales to a 3.7% gain compared to last year. May sales totaled 30,634 units, with travel trailers accounting for 19,366 units. Last year’s numbers were 29,544 and 17,801, respectively. RPTIA Reports Drop in Park Trailer Shipments. Shipments of park trailers fell 20% during the first quarter, representing the first significant quarterly decline in shipments in more than four years, according to the Recreational Park Trailer Industry Association (RPTIA). Manufacturers reported 800 shipments in the first quarter, compared to 1,000 during the same period a year earlier. Milestone Unit Built at Dutchmen Goshen Plant Dutchmen Manufacturing Inc. marked the production and sale of the 20,000th recreational vehicle at one of the builder’s towable facilities in Goshen, Ind. Jeff Nickell of Tom Raper RV in Richmond, Ind., was present to receive the keys for the milestone unit, a Denali fifth-wheel, from Steve Paul, Dutchmen vice president and general manager. During a luncheon, 21 of the 190 employees were honored for their work at the plant, located on C.R. 38 in Elkhart County, since it opened in 1998. “It takes great people to make IN BRIEF Camp Club USA Hits Membership Milepost. Founded in January 2006, the discount camping club recently announced that its membership base exceeded 30,000 consumers. The club guarantees 50% off nightly rates at its network of more than 600 affiliated campgrounds across the U.S. and Canada. Camp Club is a part of Affinity Group Inc., parent company of RVBusiness. great products, and Dutchmen Manufacturing thanks all of our employees and dealer partners for making these phenomenal milestones possible,” Paul said. Dutchmen opened the C.R. 38 production facility in 1998 to build its Dutchmen Classic laminate travel trailers. The facility now produces Denali, North Shore, Victory Lane and Winner’s Circle travel trailers, fifthwheels and sport utility recreational vehicles. Dutchmen operates 10 other manufacturing facilities in Indiana and Idaho, and employs 1,200 people. 6 KOA Sees Increased Bookings. Kampgrounds of America (KOA) reported that through July 16, the number of campers visiting its parks this year was up 3.3% compared to 2006. “Our camper night numbers are up significantly in nearly every region of North America,” said Shane Ott, president and COO for Billings, Mont.-based KOA. The company also noted that Internet bookings were up 25% through July 13, and advance reservations for stays in August are up 22.5%. Thor’s Thompson Recognized by Cancer Institute. Wade F.B. Thompson, chairman, president and CEO of Jackson Center, Ohio-based Thor Industries Inc., was honored June 26 with the prestigious Oliver R. Grace Award for distinguished service in advancing cancer research. Thompson is a three-time cancer survivor who made a challenge gift of $1 million to the National Prostate Cancer Coalition earlier this year to pursuade individuals, corporations and foundations to support cancer research. He also founded the Drive Against Cancer, a mobile screening program. 6 AUGUST 2007 .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:07 PM Page 23 Merger from page 12 CAFE from page 9 CEO of the new firm. “This merger is a very positive step for the combined organizations, its business partners and customers,” said Bennett. “Monomoy will provide substantial capital and management expertise for the merger and help us be more competitive in western U.S. markets. This is great news for our current and prospective dealer partners.” “This is a great opportunity for both companies,” noted Hoefer, a 30-year RV industry veteran and co-founder of the industry’s Dutchmen, Four Winds and Pilgrim brands. “Our merger will allow us to grow faster in the western U.S. and bring new and innovative products to the market more quickly. I have never seen a more perfect fit.” Following its 2006 acquisition of Western RV, the planned Western RV-Pilgrim merger is the second step in creating a presence in the RV industry for Monomoy, a private equity fund that makes controlling investments in middle market companies. Combined, the company will market Alpenlite fifth-wheels, Alpenlite truck campers, Alpine Coach motorhomes, Cirrus travel trailers, Defender ramp trailers, Legends travel trailers and fifthwheels, Open Road fifth-wheels, Peak chassis, Pilgrim travel trailers and fifth-wheels, and Pilgrim Lite travel trailers. 6 director of auto research, North America, at the New York office of the consulting company Global Insight. He predicted the new standards will put “significant pressure” on domestic as well as foreign manufacturers of body-onframe trucks, such as Toyota and Nissan, to downsize their fleet weights, engine sizes and adopt new powertrain and other technologies. “I’m very concerned, as are many, many of our members, that this issue could do great damage to the truck and RV industries and our American economy,” said Mike Molino, president of the Recreation Vehicle Dealers Association (RVDA), Fairfax, Va. Unrealistic CAFE standards “have a very good chance of totally ruining the American auto manufacturers’ ability to produce anything that will tow anything worthwhile,” he added. RVDA has joined with RVIA, the Alliance of Automobile Manufacturers, NADA, the National Truck Equipment Association, the SUV Owners of America, the American Recreation Coalition (ARC), the marine industry and other groups to “fight for a reasonable CAFE standard that allows our customers to continue using their recreational vehicles,” said Molino. With 75% of RVs towed by another vehicle, RVIA is “taking this issue very seriously” said Jay Landers, senior director of government affairs. To bolster its lobbying effort, it hired Sonnenschein Nath & Rosenthal LLP. “Clearly, we don’t want Detroit downscaling larger tow vehicles or phasing them out entirely,” Landers added. Meanwhile, RV towable manufacturers like Keystone RV Co., Goshen, Ind., and Jayco Inc., Middlebury, Ind., accustomed to adapting quickly to changing market demands, consider the CAFE issue important but not threatening. Ron Fenech, president of Keystone, said his company has already been responding to customer demand for lighter-weight, more fuelefficient trailers. And he thinks CAFE’s impact will be far enough in the future to allow plenty of time for additional response. “All the standards do is legitimize what our customers have already been saying to a certain degree, due to higher gas prices,” Fleetwood from page 14 vided by the travel trailer division in support of FEMA's disaster-relief effort. ■ Motorhome sales for the quarter increased by 12% to $278 million and the division generated operating income of $11.5 million, its best performance in more than two years. ■ Fourth-quarter travel trailer sales fell to $83.7 million from $158 million in fiscal 2006 while folding camping trailer sales totaled $20 million compared to $22.6 million. Results for the full year showed: ■ RV sales for the full fiscal year declined 11% to $1.44 billion from $1.61 billion in the prior year. ■ The RV Group's operating loss was $62.4 million compared to operating income of $0.2 million last year. ■ Motorhome revenues dipped to nearly $962 million for the year compared to $976.7 million in fiscal 2006. ■ The travel trailer division lost $65.3 million in fiscal 2007 versus net income of $1.1 million the previous year as sales declined to $391 million from $551.6 million. "A successful turnaround of our travel trailer business will be key to the extent and timing of our financial improvement in fiscal 2008," Smith said. "In all other areas of our business, we believe we are positioned well for the current markets, as evidenced by backlogs that are improved and healthy in motorhomes and improving in housing.” 6 Fenech said. “We’ll continue to monitor the market, and give people what they want. “When the time comes, we as an industry will react quickly. We don’t know what the auto industry will do, but I think the technology to meet these fuel standards and still offer towability will be there because their business depends on it.” Similarly, Derald Bontrager, president of Jayco, thinks “the auto manufacturers will adjust, and we as an industry will adjust. We’ll be just fine. It’s not that we’re not concerned, but we’ve adjusted to many things in the past.” However, large-size trailer manufacturers could end up fighting an uphill battle to preserve their market, since severe CAFE standards would put pressure on the cost as well as size of trailers. As Fenech noted, “There are many, many things we’ve done to reduce weight that are having an impact at an affordable price. But going forward, it’s expensive to get huge weight savings in travel trailers at this point. There are composite materials that you can use, but they’re cost prohibitive, relative to what customers will pay.” Meanwhile, along with lobbying Congress for “realistic fuel economy goals that do not sacrifice (trailer towing) performance,” RVDA officials also want lawmakers to place special emphasis on making bio-fuels and clean diesel more readily available options for consumers. “RVers would welcome wider availability and competitive pricing of fuels that burn cleaner and help decrease our dependence on imported oil,” officials said. In response to high fuel prices, truck manufacturers have already been planning the expansion of diesel engine, biofuel and hybrid-powered models — a trend that’s expected to sharply accelerate in the next decade. DaimlerChrysler, Ford Motor and General Motors already offer diesels, with additional entries being planned by Toyota Motor Sales U.S.A. and Land Rover, among others. Diesels can provide continued on page 55 AUGUST 2007 Go To: .com User Guide RVBusiness 23 Contents 019-RVB_0708_LO_NIF_AGI_Ev 7/19/07 2:43 PM Page 24 LIBERTY ELECTRIC BIKES, CIRCLE 106 ON READER SERVICE CARD B W TRAILER HITCHES, CIRCLE 103 ON READER SERVICE CARD AGI Events from page 19 Help RVers Park and Go Electric Hedlund noted that a catalyst behind the company’s expansion was being able to tap into the parent company’s resources. “A key for this division has been our ability to leverage all of Affinity Group’s media and marketing resources to build show attendance and to bring a broader range of new and repeat buyers to our shows,” he said. “In turn, we also hope to introduce people to a wider variety of AGI products while attending the shows.” Schneider added: “There were two reasons that we got into this. First, it’s a logical extension of AGI. It’s what we do best — marketing effectively and bringing traffic to dealers and manufacturers. Secondly, and just as important, is that the show division adds to our database. We are now finding customers at an earlier time in their product life cycle.” Hedlund said the genesis for AGI Events came about through discussions with a Minneapolis promoter in 2004. “At first, we were talking to him about doing things together to promote a single show, and then we ended up acquiring all three Minneapolis-area consumer shows,” Hedlund said. “During those discussions, Mike Schneider made the point that we should get into the event business on a much larger scale.” Gaither was brought on board to research and source out available shows that fit into AGI’s business plan. “I spent my first year basically talking to show promoters to see what their temperature was,” Gaither said. “We found there were a lot of promoters that were interested in selling. Others weren’t ready to make a move right away, but I’m still in discussions with a lot of those people. And now that word is out that we’re in an acquisitive mode, people are contacting us.” In December 2005, AGI Events purchased Royal Productions Inc., a Richmond, Va.-based company that Setting Up Distributors Nationwide! Street Mountain Folding www.libertyebikes.com • [email protected] Phone: (800) 806-7109 24 RVBusiness Go To: Tom Gaither AUGUST 2007 .com User Guide Contents 019-RVB_0708_LO_NIF_AGI_Ev 7/19/07 2:43 PM produced 12 consumer shows in the boat, home-and-garden, recreational vehicle and camping markets. Subsequently, a regional office was formed in Richmond led by Royal owner Dave Posner. “In most cases we have left the original management intact,” said Gaither. “But as we have grown, some people have moved on and we’ve brought in our own people.” With a solid base established, several other acquisitions followed, including: ■ Plus Events, a Las Vegas, Nev.based producer of six consumer shows in the RV, boat, camping, and homeand-garden markets, was purchased in March 2006. The shows acquired with Plus Events were combined with the Pomona RV and Lifestyle Show in California to form a southwest regional group based in Las Vegas. ■ In October 2006, four North Carolina-based RV shows, produced by Apple Rock Advertising and Promotion Inc., were acquired and rolled into the Richmond office. Three of the shows run in the winter, one each in Greensboro, Charlotte and Raleigh. The fourth is a late-season event held Page 25 in Greensboro each September. ■ Five RV and sportsman shows were bought from Industrial Expositions Inc. of Denver, Colo., along with the Madison (Wis.) Boat Show from MAC Events, LLC of Spirit Lake, Pomona RV and Travel Show drew around 9,500 attendees this year. The show was N.J., in March 2007 that launched by AGI Events, which currently produces 35 recreation-oriented programs. operate out of the Minneapolis branch. Events added shows. A promoter with just one or two through the Industrial Expositions shows would have great difficulty getacquisition include: the Rocky ting at these opportunities.” Gaither noted that a key opportunity Mountain Snowmobile Expo; the Colorado RV Adventure Travel Show; toward upgrading and improving the Kansas Sports, Boat and Travel shows, particularly those created by Show; the Colorado RV, Sports, Boat AGI Events, is to incorporate more and Travel Show; and the Colorado Fall entertainment and diversion for visitors. “My idea for our new shows is to evenRV Liquidation Super Sale. Hedlund said that while culling the tually create a more dynamic selling envimarket for additional events, the compa- ronment for dealers,” Gaither said. “We ny is committed to “adding significant want to move from people just grazing the aisles to hosting a fun, family-orientvalue to our current slate of shows.” “We want to bring in more sponsor- ed event. We saw that in our more mature ships and continue with the develop- shows. When you start up a show, the ment of show promotions and pro- budget and revenue are still unknown, but grams,” he said. “These are the types of as the show gets more mature, you can things we can do because we have 35 make it more entertaining.” 6 Call today. 1-800-236-4147 We offer personal attention and specialized services for RV dealers. With more than 50 years of specialized transportation experience, Zurich focuses on tailored products and What if your insurance carrier provided personalized service? services to help meet the needs of your dealership. This includes knowledgeable sales professionals and dedicated underwriters and claims specialists to service your account. Because of our experience, our customers can feel protected. www.zurichna.com SM Coverages underwritten by member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages not available in all states. Some coverages may be written on a nonadmitted basis through surplus lines brokers. Go To: .com User Guide ZURICH, CIRCLE 116 ON READER SERVICE CARD Contents 026-RVB_0708_LO_Heartland_ 7/18/07 6:17 PM Q&A Page 26 ■ By Dave Barbulesco ■ Photos by Shawn Spence Heartland Chairman, Brian Brady REVERSAL O 26 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 026-RVB_0708_LO_Heartland_ 7/19/07 11:51 AM Page 27 Heartland Recreational Vehicles Finds Success by Upending the Status Quo – First Came the Higher-End Fifth-Wheel, Now Comes the Entry-Level Travel Trailer In its earliest stages of development following its founding in December of 2003 in Elkhart, Ind., Heartland Recreational Vehicles LLC was very content to “fly under the radar” in many respects. “We weren’t in any rush to bring product to market,” said Chairman Brian Brady, the former Damon Corp. president who led a group of investors in founding Heartland. On the other hand, Heartland’s management was intent on “getting the product right,” according to Brady — particularly since its signature Landmark series would be positioned to compete in the higher-priced, upper tier of the fifth-wheel marketplace. “It took us three months before we built the first Landmark,” pointed out Scott Tuttle, vice president of marketing and one of the original investors. “We did a lot of tweaking, making sure the product met our expectations.” Even after the first fifth-wheel rolled off the line. “One of the things we developed was a 90-degree turning radius,” Tuttle said. “When the first Landmark was complete, we gave it a test run. It was inside our plant, which was really narrow and had all these poles running through it. We were able to complete a hairpin turn with a short-bed, extended-cab pickup. That’s when we knew we had it right.” And, in the process, Heartland has become a lot more visible in the U.S. RV arena, as the company has expanded to six fifthwheel lines and was ranked fourth (through March) in terms of fifth-wheel market share by Statistical Surveys Inc. “We have a team of people that is dedicated to building the best in class at the price points we compete in,” Brady said. “We approach each new product in a very thoughtful manner.” In addition to Brady and Tuttle, principles today include Tim Hoffman, vice president of sales; Jack Culbertson, vice president of production; and John Rhymer, vice president of operations. And along with the company’s portfolio of fifthwheel lines – two of which are in the sport utility recreational vehicle (SURV) arena – Heartland at press time was preparing to roll out a laminated North Trail brand, its first entry in the higher-volume travel trailer sector. Other milestones of note in Heartland’s short history: Since moving out of its original cramped leased facility, manufacturing space has grown to around 400,000 square feet, primarily at its headquarters on the north side of Elkhart. After posting $9 million in sales in part of 2004, revenue grew to $55 million in 2005 and $110 million last year — and Brady says Heartland is poised to double that in 2007. The company’s workforce has grown to 500 employees and its dealer network to 195 stores. Production should reach 8,000 fifth-wheels this year. Product lines are more balanced as time goes by and now include Landmark, Big Country and Big Horn fifth-wheels in addition to mid-profile Sundance and two lines of SURVs, a mid-profile Razor and full-profile Cyclone. Financially, meanwhile, Heartland appears well grounded, having sold a stake in the firm in February to Catterton Partners, a private equity firm — a move that should pave the way next year for a “major information technology implementation” addressing customer service, parts and warranty issues. To get a handle on just exactly what’s afoot at Heartland these days, Brady paused recently with Tim Hoffman for an interview with RVBusiness. F FORTUNES AUGUST 2007 Go To: .com User Guide RVBusiness Contents 27 026-RVB_0708_LO_Heartland_ 7/19/07 11:52 AM Tim Hoffman RVB: Why did Heartland enter the market in a specialized, high-end niche in 2004 rather than targeting a price tier that might have offered more volume, coming out of the gates? HOFFMAN: We started out with our Landmark series, which was a higherpriced coach. It was apparent that when we launched a new product it had to be unique and something the industry hadn’t seen before, which may have been easier to do on the high end of the market. We came up with a cap-frame design that allows for a 90-degree turning radius and also a universal docking center that was new to the industry. Basically, it has all the intakes for the hoses and cable inside a compartment on the off-door side, typically what you see in a motorhome. We featured that on the towable side. BRADY: The decision to go to a higher priced fifth-wheel wasn’t a consensus opinion in the organization. There was a real debate. Why were we picking something that was difficult to sell - particularly when you look at the pedigree of some of my partners who understood the middle of the bell curve, which is where the volume is. I guess it was my opinion that we weren’t ready to compete at a volume level. I don’t think we had anything particularly to add. And Page 28 we needed to get our legs beneath us, to build our balance sheet, and make sure we were going to be financially viable. HOFFMAN: Brian was the stand-alone guy going with the high end. But it was the right move all the way around. Brian was right on all levels — plan our time, build the right team, build the right people. RVB: It’s interesting that you all weren’t in more of a rush to bring your first product to market. HOFFMAN: We really took our time to do things right. We built mock-ups, we did prototypes and we did a lot of research with retail customers. That’s probably been one of the main things that has propelled our business forward. Brian says it best: If we can’t improve the product, if we can’t make it better, there’s no sense in doing it. So, we spent a lot of time making sure that we were resonating with the retail people. RVB: So, the Landmark gave you a good starting point, establishing your name in the industry. BRADY: It gave us time. I don’t think we were perceived as being particularly threatening to our primary competitors, and we knew who our primary competitors were. We just didn’t want to appear to be threatening out of the chute. Low volume really gave us the time to focus on the product. We didn’t feel a lot of pressure to rapidly ramp up, and it’s a strategy that has served us very, very well. RVB: While you were concentrating on product, what was your approach to building your dealer base? HOFFMAN: We went out there and took care of the dealers, worked very hard on responding to the retail people. We also were very active with the web from the outset. That’s been a good tool for us. We also concentrated on building a franchise for the dealer. Most manufacturers are copycatting their product line — two or three brands with the same type of price point. That’s how they grow their business. We actually concentrate on one segment of the business, building that franchise name in that particular product line. We want to bring value to the dealer by not making him shop against the same manufacturer in his market with a different name. We don’t want to sell a dollar for forty cents. Building a franchise is important. RVB: You’ve expressed plans about getting into a more affordable travel trailer market. Where are you on that? HOFFMAN: We are presently looking shortly at launching a lightweight, laminated travel trailer in the mid-summer time frame. BRADY: The facilities are in place and the team is in place. Right now, we are completing the prototype. HOFFMAN: We are very good at laminating product. All of our fifth-wheels are laminated, so it just made sense for us to step into laminated lightweights, especially with the gas prices. We see a trend in the marketplace: lightweights are going to keep growing, and we are going to let that lead us into the travel trailer marketplace. We have planned out all our product launches. At the same time, though, we are trying to create demand among our current dealers by giving them good service, good product and innovative features. Instead of just building something and throwing it at them, they are coming to us and telling us that we need to develop a travel trailer. BRADY: When we launch this lightweight, I have little doubt that Tim and his team will be very successful because they’ve taken their time and they’ve talked to our customers. They have a real sense of what our dealers want. From that standpoint, it’s pretty simple. RVB: Is this lightweight going to be an entry-level trailer? HOFFMAN: There are three classificacontinued on page 53 LEFT: Company principles include (l-r) Scott Tuttle, John Rhymer and Jack Culbertson. ABOVE: Cyclone is one of two SURV lines produced by Elkhart, Ind., manufacturer. 28 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 029-RVB0708 PG. 29 RVIA 7/18/07 6:06 PM Page 29 45th ANNUAL 55th ANNUAL National RV Trade Show California RV Show OPEN TO THE TRADE ONLY November 27 – 29, 2007 Kentucky Exposition Center (KEC) Louisville, Kentucky Get in gear and head for the 45th Annual National RV Trade Show. Discover the industry’s most exciting new recreational vehicles and meet leading manufacturers and suppliers. In the Kentucky Exposition Center (KEC), find what you need to excite today’s RV buyers and top off your revenue tanks. Discover the newest Type A, B, and C motorhomes, fifth-wheels, folding camping trailers, travel trailers, van conversions, park trailers, merchandise, accessories, component parts, and more—all on over 900,000 net square feet of exhibit floor. To keep your business revved up all year, check out the Outlook 2008 breakfast as well as dealer seminars designed to increase your bottom line. Call or write to learn more. October 12 – 21, 2007 Fairplex, Gate 14, White Ave. Pomona, California With 11,000 baby boomers turning 50 everyday, rev up for more strong RV sales ahead. Dealers and consumers riding this trend will converge for 10 exciting days at RVIA’s Annual California RV Show, the largest and longest-running RV show in the state. Check out the newest vehicles and equipment from leading manufacturers and suppliers. Look for more than 1,800 towable and motorized recreation vehicles including travel trailers, motorhomes, fifth-wheel trailers, folding camping trailers, slide-in truck campers, buses, mini motorhomes, van conversions, and toycarrying trailers. Discover the latest accessories and merchandise. Talk to hundreds of serious buyers. All at the California RV Show. Visit our website to learn more. Western Regional Office 6529 Riverside Ave. Suite 150 Riverside, CA 92506 951-274-0696 www.carvshow.com 1896 Preston White Drive P.O. Box 2999 Reston, VA 20195-0999 703-620-6003 RECREATION VEHICLE IND ASSOC, CIRCLE 111 ON READER SERVICE CAR Go To: .com User Guide Contents 030-RVB_0708_LO_HOFame 7/18/07 6:56 PM Page 30 M Modernistic New 80,000square-foot RV/MH Hall of Fame Includes Antique RV Displays, Library, Theater and Huge GO RVing Exhibit A fter almost a decade of planning and fund-raising and two years of construction, the $9 million, 80,000-square-foot RV/MH Hall of Fame adjacent to the Indiana Toll Road in Elkhart, Ind., will be dedicated Aug. 6. The grand opening will be held in conjunction with the induction dinner honoring the 10 newest RV/MH Hall of Fame members. “It’s important that we should know where we came from,” stressed RV/MH Heritage Foundation Inc. Board Chairman Dave Altman, president of Altmans Winnebago Inc., a Baldwin Park, Calif., dealership, in alluding to the modernistic new facility. The Hall, featuring an RV museum, library, theater and Go RVing display, actually opened to the public March 26. The nearly completed Boots and Betty Ingram Hall, in which RV historian David Woodworth’s prized collection of antique RVs will be displayed, is scheduled to be the site of the dedication ceremony. Guests, however, will probably have to overlook some finishing touches. “We’ve been assured that we will be able to have the dinner in (Ingram Hall),” Foundation Historian Al Hesselbart told RVBusiness. “It won’t be completely finished, but we are concentrating on having lights and air conditioning.” With salient glass windows, a two-story atrium and spacious display halls designed by museum specialists ICON Exhibits of Fort Wayne, Ind., the new facility clearly is a substantial upgrade from the building that housed the hall of fame/museum for 18 years in the aging south side of Elkhart’s downtown. “Most people who go in there the first time say that it’s stunning,” observed Foundation Treasurer Darryl Searer, chairman of RV industry supplier Ultra-Fab Products Inc., of Elkhart. “I have a really good feeling for what this means, not only to the founders of our industries, but for the current manufacturers, suppliers, distributors and dealers. We are putting something back for people to enjoy as it relates to the heritage of the RV- and manufactured-housing industries.” Foundation President Carl Ehry said he felt a new site for the hall 30 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 030-RVB_0708_LO_HOFame ■ By Bob Ashley 7/18/07 6:56 PM Page 31 ■ Photos by Shawn Spence & Larry McCay AUGUST 2007 Go To: .com User Guide RVBusiness 31 Contents 030-RVB_0708_LO_HOFame 7/19/07 12:51 PM Page 32 ABOVE: Don Walter and Tom Stinnett, both new inductees into the Hall of Fame, oversaw development of the Go RVing Pavilion. RIGHT: Carl Ehry, president of the RV/MH Heritage Foundation Inc., helped guide the facility to its present location and envisions it as integral to an even larger complex. Volunteers Critical to Hall’s Success Looking at the long-term operations of the RV/MH Hall of Fame in Elkhart, Ind., organizers are anticipating a need for between 60 and 80 volunteers to serve as tour guides, greeters, librarians, gardeners and gift-shop salespeople. “It’s going to give a lot of people who retired from the RV industry a chance to still be part of it,” said Gene Stout, retired vice president of Coachmen Industries Inc. and former board chairman of the RV/MH Heritage Foundation Inc. in its earlier years. Like Stout, former board member Jerry Pickrell, a retired executive for LaSalle Bristol Division, a unit of Heywood Williams Co., is a co-chairman of the foundation’s Volunteers Committee. The facility is open 9 a.m. to 5 p.m. Monday through Saturday, and volunteers will be scheduled daily in two four-hour shifts. “At some point, we will need volunteers six days a week,” Pickrell said. “Right now, we are running an ‘on-call’ program.” It will develop more structure when we start getting tour groups in here.” Setting up the volunteer program, which in mid-June already had signed up more than two dozen volunteers, was made easier with the help of the Auburn-Cord-Deusenburg Museum in nearby Auburn, Ind., which also is staffed with volunteers. “After we opened, they were our first official tour group,” Pickrell said. “They critiqued everything that we did. The most difficult part of setting this up was getting the word out that we had a need.” Stout said tour plans changed after the museum opened in late March. “Initially we thought we would lead people through,” he explained. “But as we watched, people want to go through at their own pace and spend time where they want to spend it. So, we expect to put people who understand RVs in the displays to talk about the units instead of leading people through. Ours is different from a typical museum because people have a sincere interest in what is here.” 6 32 RVBusiness Go To: of fame/museum was needed even before he accepted his current position in 1994 after 12 years with the Elkhart Salvation Army Corps and 13 years with the United Way of Elkhart County. “When I interviewed for the job, I told them they didn’t belong down there — that they belonged on the Indiana Toll Road where there was high visibility,” Ehry recalled. “People couldn’t find us downtown and they couldn’t turn around their RVs when they did find us. It [the new facility] is quite a contrast.” The main floor of the new two-story building — situated on the north side of Elkhart near the city’s new C.R. 17 toll road exit — is dominated by Founders Hall, which houses the museum’s own collection of 35 motorhomes and towable RVs. Though not of Smithsonian quality, the existing collection is quite impressive and includes the oldest known RV and the first Coachmen RV to come off the line of the now-publicly held manufacturer’s assembly line (see sidebar). Adjacent to that is the 5,000-squarefoot Go RVing exhibit, designed to build awareness of modern RVs and of the industry’s national marketing program. It will feature a continuous showing on a high-definition monitor of the “What Will You Discover” television ads and the Go RVing video from the DVD that consumers receive when they call the Go RVing hotline. The video is augmented by a series of computer kiosks with direct, high-speed access to the Go RVing campaign’s website (gorving.com) where people can order the Go RVing DVD or search for participating Go RVing dealers, manufacturers and campgrounds. The Go RVing exhibit — funds for which are donated by the Go RVing Coalition, which is administered by the Recreation Vehicle Industry Association (RVIA) — also includes a new Class A motorhome from Winnebago Industries Inc., a minimotorhome from Coachmen Industries Inc., a fifth-wheel trailer from Jayco Inc., a travel trailer from Thor’s Keystone RV Co. Inc. and a folding camping trailer from Starcraft RV Inc. Exhibitors, chosen through a lottery by RV/MH officials, rotate annually. The facility’s ground floor also features an 80-seat theater that can serve as a lecture hall, and a supplier’s hall in which component manufacturers will display samples of their wares. Ingram Hall, which will house RVIA spokesman Woodworth’s stellar collection of restored vintage RVs, is named for Robert “Boots” Ingram, founder and former owner of Teton Homes in Mills, Wyo., and his wife, Betty, who contributed $1 million toward the $1.5 million purchase of Woodworth’s historic RVs. Still under construction in early August, Ingram Hall will add some 30,000 square feet to the existing 50,000-square-foot facility that opened to the public in March. Nineteen of Woodworth’s 34 antique RVs — those that have been fully refurbished — were to have been moved to the hall of fame/museum in mid-July. While not yet set up in permanent displays, the collection will be available for attendees to see during the induction dinner. A two-story-high photo mural depicting the history of the recreation Founders Hall is home to the museum’s own assortment of RVs. The Woodworth collection is slated for Ingram Hall. AUGUST 2007 .com User Guide Contents 030-RVB_0708_LO_HOFame 7/18/07 6:57 PM vehicle industry since 1900 will be installed on the theater’s outside wall facing the main lobby, and a groundlevel patio outside the main entrance will feature about 800 bricks with the names of those donating money for the facility’s construction. The second floor — accessed by a central flight of stairs that serves as an architectural centerpiece of the hall’s interior — opens into a large room to the right, with glass on three sides and a balcony overlooking the ground floor. This area houses staff and a small conference room. A hallway to the left leads to the RV/MH Hall Of Fame itself: four neat rows of framed photographs with plaques for each of the 304 current members, starting with the first class of 14 men in 1972. That class, by the way, included Airstream founder Wally Byam; Elmer Frey, founder of Marshfield Homes; and Hal McPherson, who designed the first RV toilet with a holding tank. At the end of the sweeping hallway is the library, full of all kinds of printed matter, consumer and trade magazines and other publications occupying two sets of long walnut bookshelves, each sporting replicas on top of motorhomes, towable RVs and manufactured homes. The library also contains a mediumsize conference room in which duplicate publications are stored and, upon request, loaned, as well as a small sitting area with a half-dozen easy chairs and a study table that overlooks the grounds through floor-to-ceiling windows. The library’s catalog traces the RV industry’s history back to the 1930s and includes every issue of Family Motor Coaching magazine, plus an incomplete set of Trailer Life starting in 1942. It also traces RVBusiness back to 1949, when this publication was known as Trailer Dealer and then RV Dealer and finally RV Retailer before being renamed by the late Art Rouse, founder of Trailer Life Enterprises Inc. The February 1936 issue of Woodall’s Trailer Travel — a trade publication aimed at dealers — offers an intriguing, if not erroneous, analysis of the thenfledging trailer business. Reprinted from the Los Angeles Times with the headline “We’ll Soon Be Living On Wheels,” author Roger W. Babson said he was making an “astonishing prediction” that, “within 20 years, more than half of the population of the United States will be Page 33 living in automobile trailers.'' So much for predictions. The public pays an admission of $8 for adults, $6 for seniors and $3 for children ages 6 to 16 — and people, especially toll-road travelers, have been showing up with some regularity to pay that price of admission. In late May, for instance, Bob and Sandra Pinegar from Sterling Heights, Mich., north of Detroit, were thumbing through some of the library’s new magazines, having seen an advertisement for the hall of fame/museum in Amish Country magazine while they were in northern Indiana for a series of travel trailer factory tours. Also on hand during our visit were Brad and Joyce Mayberry, South Bend, Ind., snowbirds who had sold their home to become full-timers the week before they visited the hall of fame/museum with two grandchildren. “We wanted the kids to see the old RVs,” Joyce Mayberry said. “We’ve watched this being built as we’ve gone back-and-forth on the toll road. If anyone has any interest in camping, from tenting on up, they’ll find this interesting.” Meanwhile, the Hall’s board of directors apparently has a pretty keen eye on the challenges that lie ahead of it, as continued on page 47 The modernistic new RV/MH Hall of Fame stands like a beacon alongside the Indiana Toll Road north of Elkhart. Reliving Days of Future Passed Interested in seeing what the first Coachmen — a Cadet travel trailer with Serial No. 1 — looked like when it rolled off the production line in 1964? How about an epic 1974 GMC Class A motorhome containing then-state-of-the-art airride suspension … or a homemade 1935 Kumfort Travel Trailer with a welded, all-steel frame, the components of which obviously came from an auto junkyard? Those and other RVs with historic significance already are on display in the newly opened RV/MH Hall of Fame’s Founders Hall. Still to come is the balance of RV historian David Woodworth's 1,800-piece collection of antique RVs and camping gear that the RV/MH Heritage Foundation Inc. acquired last year for $1.5 million. The collection will be displayed in a special wing of the museum financed by Robert “Boots” Ingram, founder of Wyomingbased Teton Homes. However, the gem of Woodworth's collection — Mae West's deep blue 1931 Chevroletbased House Car — is already on exhibit in the Founders Hall display. Among the other RVs in Founders Hall, just in case you don’t get a chance to see them all for yourself: ■ A 1913 Earl travel trailer recognized by the Smithsonian as the oldest known RV, displayed with a restored Ford Model T. Both were purchased at auction in San Francisco by Thor Industries Inc. Chairman Wade F.B. Thompson and donated to the foundation. ■ A 1931 Tennessee Traveler motorhome, built in Pulaski, Tenn., by an unknown carriage maker and discovered in a barn in Athens, Ala., in 1999. The unit was heated by a small potbelly stove. ■ A 1967 Winnebago Class A gas motorhome, serial No. 22, a unit that is best remembered for its rather homely appearance and “eyebrow” look. ■ A 1957 10-foot Scotty teardrop travel trailer built by Serro Travel Trailer Co., Erwin, Pa., whose founder, John Serro, is a member of the RV/MH Hall of Fame. ■ A 1969 Stites chassis-mount Class C motorhome. ■ A 1928 Pierce Arrow motorhome. The expansive new facility includes an 80-seat theater, which can also serve as a lecture hall. AUGUST 2007 Go To: .com User Guide RVBusiness 33 Contents 034-RVB0708 PG. 34 RV TRIP 7/18/07 6:06 PM Page 34 ,ETOURSITEFILLYOURSITES 2EACH BXIPMFOFXDSPXE 0WFS -ILLION PG 5SER3ESSIONS!NNUALLY 9OUDECIDEHOW MUCHJOWFOUPSZTO MAKEAVAILABLE 37FST o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o To: .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:07 PM Page 35 TOP OF THE NEWS Reynolds Brings Six Parks into the KOA Fold When Tom and Michele Reynolds added the Sacramento, Calif., KOA Campground to their collection of 12 California camping resorts in 2005, they weren’t sure they wanted to keep it in the KOA system. “We were doing pretty well as an independent group,” said Tom Reynolds, who operates his parks under the Reynolds Resorts brand. “I didn’t know if KOA had much to offer us.” But two short years later, the Reynoldses have agreed to bring six more of their California properties into the KOA campground system according to a release from the Billings, Mont.-based franchisor. The new KOA campgrounds are the Yosemite South/Coarsegold KOA, Banning Stagecoach KOA, Brannan Island KOA, Colorado River/Blythe KOA, Moss Landing RV Express KOA and the Santa Cruz North/Costanoa KOA. “Our experience with the Sacramento West/Old Town KOA the past two years showed us that the support KOA offers in the areas of technology, marketing and training really makes a difference,” said Michele Reynolds. “Once I saw what KOA could do, it was an easy decision to add more of our parks to the KOA system.” To help manage 12 parks and one marina, son Nick and daughter-in-law Anna joined the family business shortly after Nick graduated from UCLA, and now second son Chris, an art student, handles the company’s graphic design work. “It’s great to have two generations working here, but I still felt strongly that we needed to run things differently in order to mature the company,” Michele Reynolds said. That’s where KOA came into the picture. “KOA spends a lot of resources studying colors, planning parks and gathering data on the right way to do things,” said Michele Reynolds. “Working with someone who already had a great template for the fundamentals of marketing, employment, training and even cleaning was important to me. We could go out and re-invent the wheel, but why bother?” 6 RETAIL TRENDS May ’07: Inventories Are Up — But So Are New RV Sales. Small Dealers Post Net Loss. This is the financial report for the 5 months ending May 31, 2007. New inventory levels continue to run higher than last year, although this is balanced by new RV sales also ahead of last year — small dealerships saw a 3.6% improvement, while medium- and large dealers reported increases of 3.8% and 3%, respectively. Small dealers recorded flat total dealership sales, but medium and large retailers noted an uptick in that department. However, while large dealerships averaged a 5% improvement in total sales, their total gross margins were down slightly from 2006, due to increased personnel and flooring costs. $1 Million to $5 Million Dealers MAY YTD New RV Sales Used RV Sales Total Dealership Sales 2007 AVERAGE DEALER $920,074 $202,890 $1,460,473 15.5% 19.1% 2006 AVERAGE DEALER $887,886 $229,505 $1,466,361 14.5% 27.3% 3.6% -11.6% -0.4% GROSS MARGINS Total Company GM $398,495 GM % 27.3% $405,158 GM % 27.6% -0.3 pts. Expenses Personnel Expense Advertising Expense Total Expenses $214,766 $34,448 $401,999 % GM 53.9% 8.6% 100.9% $210,331 $34,306 $389,919 % GM 51.9% 8.5% 96.2% 2.0 pts. 0.1 pts. 4.7 pts. Net Profit/Loss Net Profit % of Sales $(3,505) (0.2)% 3.8% -123.0% (0.9)% $15,239 1.0% $5 Million to $10 Million Dealers MAY YTD New RV Sales Used RV Sales Total Dealership Sales 2007 AVERAGE DEALER $2,088,597 $561,855 $3,355,387 15.1% 21.1% 2006 AVERAGE DEALER $2,012,446 $505,992 $3,185,638 14.6% 21.7% CHANGE 3.8% 11.0% 5.3% GROSS MARGINS Total Company GM $849,885 GM % 25.3% $798,035 GM % 25.1% 0.2 pts. Expenses Personnel Expense Advertising Expense Total Expenses $374,483 $54,063 $698,223 % GM 44.1% 6.4% 82.2% $355,541 $51,339 $683,742 % GM 44.6% 6.4% 85.7% -0.5 pts. 0.0 pts. -3.5 pts. Net Profit/Loss Net Profit % of Sales $151,662 4.5% 14.3% 32.7% 17.8% $114,293 3.6% $10 Million and Higher Dealers MAY YTD 2007 AVERAGE DEALER 13.5% 18.6% 2006 AVERAGE DEALER $5,218,899 $1,568,124 $8,258,542 $5,376,353 $1,693,658 $8,654,273 GROSS MARGINS Total Company GM $1,987,521 GM % 23.0% $1,921,274 GM % 23.3% -0.3 pts Expenses Personnel Expense Advertising Expense Total Expenses $913,681 $121,811 $1,633,117 % GM 46.0% 6.1% 82.2% $866,400 $123,858 $1,566,627 % GM 45.1% 6.4% 81.5% 0.9 pts. -0.43pts. 0.7 pts. Net Profit/Loss Net Profit % of Sales $354,404 4.1% 18.5% -0.1% 17.8% $354,646 4.3% 14.1% 18.9% CHANGE New RV Sales Used RV Sales Total Dealership Sales AUGUST 2007 Go To: CHANGE .com User Guide 3.0% 8.0% 4.8% RVBusiness 35 Contents 7/19/07 12:59 PM Page 36 Photos: Thomas Myers 036-RVB_0708_LO_Dealer_Mtg OEM REVIEW Monaco Dealer Congress opened with a welcome reception at Studio 54 inside the MGM Grand Hotel & Casino. Monaco Convenes ‘Best Dealer Congress Ever’; Emphasizes Motorized Lines at Las Vegas Event Company Also Splits Product-Development Functions Between Motorized and Towable Divisions to Provide An Edge in A Competitive Trailer Market Forget the vagaries of the general economy and rollercoaster gas prices because business in general is stronger than most observers might realize right now for Coburg, Ore.-based Monaco Coach Corp. and its dealer network. That’s the message that Monaco’s senior management transmitted to its wholesale clients at the company’s 2008 Dealer Congress, June 18-20 in Las Vegas. The simple fact that Monaco’s internal Class A registrations indicated that the company’s year-to-date retail sales were up 8% — and 12% for the quarter — is what Monaco executives wanted to get across during to dealers at the Las Vegas Hilton. And from all appearances, dealers got the message. “It was the best Dealer Congress we have ever had, in my opinion,” said Chairman Kay Toolson in the aftermath of the meeting, which included a posh welcome reception at Studio 54 in the MGM Grand Hotel & Casino. “This year, we only brought motorized product with the exception of two travel trailer lines. We were focused on our franchise products. And we exceeded 36 RVBusiness Go To: last year’s order total and, most importantly, had a great bonding experience with our dealer partners.” That said, Monaco President John Nepute told RVBusiness that the psychological, confidence-building hurdle is perhaps the biggest one his management team faces during this “challenging” year in that some dealers don’t seem to realize how well Monaco and they are actually doing. “We are trying to tell our dealers that the market is actually going pretty well for us and, by extension, pretty well for them,” he noted. “We are seeing retail levels looking pretty good for us right now. Yet, you see reluctance on the dealers’ part to stock because they are cautious because industry people are saying it’s a cautious market. It’s one of those things that’s almost self-fulfilling. If you don’t restock, eventually your sales are going to go down. We are trying to encourage them to keep their inventory levels up.” In the news at Monaco’s Dealer Congress, of course, was product — and the fact that the company has quietly split its product-development functions for the first time between motorized and towable. Pat Carroll, Monaco’s vice president of product development, is retaining oversight of the company’s motorized lines while Craig Swisher, president of Monaco’s Towable Division, assumes the reigns of RVision, Holiday Rambler and McKenzie-brand towables. The change was effected in an effort to give Monaco an edge in the competitive trailer market without sacrificing the company’s strong hand in motorhomes. On the motorized side of the ledger, we’re told, that means keeping an eye on the highline market while taking a stronger run at more price-sensitive, higher-volume products — AUGUST 2007 .com User Guide Contents 036-RVB_0708_LO_Dealer_Mtg 7/19/07 1:00 PM a shift that clearly reflects a strong trend right now in the North American marketplace. Keeping in mind that Monaco entered the B-van sector for the first time last year, Nepute pointed out that the Oregon-based manufacturer has been making “big strides” in Class B and C sales, posting a 90% improvement for the year. “We are just trying to break into segments that offer a huge opportunity for growth in the B’s and C’s and low-end Class A gas,” explained Vice President of Sales Mike Snell. “Like John (Nepute) said, Pat (Carroll) and his team are focusing on those products because it's a product-driven industry. We didn’t have what we needed (in terms of lower-priced motorized) the past few years. Now we do.” More under the radar at Vegas were towables, only two of which — affordably priced Starlites and Alumalites — were on exhibit as Monaco prepares for a more aggressive product rollout later in the year. “A primary focus for us is to become a major player in the towable market,” noted Toolson, in addressing the company’s dealer body. “Under the leadership of Craig Swisher and his team, we’ve introduced many new exciting towable products — you’ve seen a couple here at this show — and we have a lot more great new products coming out of this division throughout the next year, both fifth-wheels and travel trailers. “Because of the way we are both changing product development and our model-change process,” he added, “we Page 37 chose not to display towables at this year’s Dealer Congress. But we are definitely expanding our presence in this important market.” Yet another major point of product focus: light-weight, low-cost designs that are to debut during the next two years. “While we are putting a great deal of emphasis on the towable market and lower-cost, lighter-weight motorhomes, we continue to focus on what got us here — our diesel products,” Toolson reiterated. “We will always be the most innovative and most competitive manufacturer of diesel motorhomes in the marketplace.” During the last 12 months, he added, Monaco was able to increase its diesel market share by 81⁄2%, and in the first four months of this year, held a 26% share of the diesel market. Also making news at Monaco: ■ A new chassis-building joint venture with International Truck and Engine Corp., the principal operating unit of Navistar International Corp. “This manufacturing partnership brings significant benefits and opportunities to Monaco Coach Corp. and, by extension, you, our dealer partners,” Nepute told the dealers, stressing that the company’s proprietary Roadmaster platform still goes exclusively to retailers of the company’s diesel motorhomes. “The agreement consolidates all of our dieselchassis production, improving operations and efficiencies, and significantly enhances our engineering, purchasing and technical expertise.” continued on page 42 LETTER-PERFECT: MONACO FOCUS FOR ’08 IS A’S, B’S, C’S Responding to a price-sensitive marketplace, Monaco Coach Corp. has put a great deal of its 2008 model year R&D energy into areas in which it sees the greatest potential for growth: Entry-level gas Class A’s, Class B's, and Class C's. Having said that, new models at the company’s 2008 Dealer Congress in Las Vegas covered a wide range of models and price tiers. At the top-end was a highline Monaco Signature Class A on a proprietary Roadmaster chassis sporting five-color exterior graphics and an optional 600-hp Cummins ISX engine. In a more moderately priced diesel-pusher niche, Monaco’s No. 1-selling Diplomat sports a new front cap, chrome accents, four-color graphics plus new premium Villa furnishings. Gas-powered Holiday Rambler Admiral and Monaco Monarch A-bodies on Ford and Workhorse platforms feature major interior and exterior upgrades and full-wall slides. Competitively priced Arista and Passage Class A’s, based on dealer input since their recent debut, have new floorplans and interior furnishings. Safari Ivory and Holiday Rambler Atlantis Class C’s, still with laminated construction, have been redesigned from top to bottom to compete directly in the lower-priced Class C market. And, while the bulk of the company’s new towables will follow at a later date, ultra-affordable Starlite and Alumalite towables were exhibited at the Las Vegas Hilton. Monaco chairman Kay Toolson addressing a dealer group during the Las Vegas meeting. Interior of the highline Monaco Signature AUGUST 2007 Go To: .com User Guide RVBusiness 37 Contents 7/19/07 1:01 PM Page 38 Photos: Nancy Heffernan 036-RVB_0708_LO_Dealer_Mtg OEM REVIEW Mike Bear, vice president of the towables group, addressed the crowd from an unusual vantage point. New Georgie Boy Gas Class A and Expanded Wyoming Fifth-Wheel Line Highlight Annual Coachmen Confab Builder also Introduces Slate of Programs Intended To “Reconnect” Company with its Dealer Network Espousing a renewed focus on dealer relationships and a more streamlined approach to doing business, officials for Coachmen Industries Inc. outlined the “culture change” adopted by the 43-yearold Elkhart, Ind.-based company during its dealer seminar June 18-20 in Savannah, Ga. “We have made a 180-degree turn,” said Mike Terlep, president of subsidiary Coachmen RV Co. of Middlebury, Ind., while addressing around 400 people representing 140 dealerships at a breakfast meeting in the Savannah International Convention and Trade Center. “During the last nine to 12 months we have been going through an introspective analysis of our company. We visited with our dealers Leprechaun Class C is available with a rear-lounge floorplan, said to be an industry exclusive. 38 RVBusiness Go To: and listened to our customers. In some respects, the process has been humbling. But, as a result, we have set out on a course to institute changes — meaningful changes that are essential to our business.” During the meeting, the RV- and modular-home builder introduced a slate of newly developed and refined programs designed to “reconnect” with its dealer body, including a revised dealer service agreement, training for dealership salespeople, along with several financing services and a private-label extended-warranty contract through GE Money. Coachmen also unveiled its 2008 product lineup that featured 16 new floorplans, highlighted by an expanded Wyoming fifth-wheel line and a Georgie Boy Cruise Master Class A built on a rear-engine gas UFO chassis from Workhorse Custom Chassis LLC. “We’re excited about our new products,” Terlep said, emphasizing that Coachmen was refocusing on the entryand mid-level sectors of the towable and motorized markets while reducing its floorplan selection by 45% during the past year. “We have done away with the ‘cram and jam’ mentality that is prevalent in the industry. We are building what you want to buy, not what we think you want to buy.” Coachmen Industries’ new direction stems from of a top-level management shift last August with the retirement of Claire Skinner — daughter of cofounder Tom Corson — and the installment of Rick Lavers as president and CEO. Lavers noted that despite the laundry list of corporatewide moves — many relating to across-the-board brand segmentation on the RV side and an aggressive cost-cutting campaign — Coachmen’s legacy as a quality- and service-oriented company remained the cornerstone in its plan for the future. New Georgie Boy Cruise Master is built on the 26,000-pound GVWR Workhorse UFO chassis. AUGUST 2007 .com User Guide Contents 036-RVB_0708_LO_Dealer_Mtg 7/19/07 1:01 PM “The bedrock principles of this company will never change,” he said. “We will continue to ‘do what’s right,’ and do it with a sense of integrity. Quality is the first priority. During the last year, we have significantly improved quality in all aspects of the company.” Terlep related that Coachmen had implemented a $4 million program to improve overall quality, and was showing a 30% reduction in defects per unit since February. Lavers said that a key part of the turnaround process was “empowering” workers with a sense of ownership and giving them the ability to “exercise their creativity.” Terlep underscored the point by noting that he and Lavers had never seen many of the company’s new product introductions until Savannah. Lee Pickard, owner of Georgia-based Mid-State RV Center and a Coachmen dealer for 23 years, confirmed that the builder had “stripped away a few layers” in the decision-making process. “Before, we had three or four people presenting products who were three to four layers down in management,” he said. “Everything flowed up the ladder to be approved and then back down. Now, we’re dealing with one person who has the authority to make decisions.” Lavers also addressed the company’s strategic plan to return to profitability as Coachmen finished in the red for fiscal 2005 and 2006. “We are on our way to recovery,” he said. “We are turning the corner, but we haven’t turned the corner. Everything that we have been doing is not yet evident in the bottom line.” Lavers said that Coachmen is responding with several initiatives to meet a “megatrend” among consumers regarding fuel efficiency. He revealed that the company is coming out with a patented construction technique for enhanced fuel continued on page 57 Mike Terlep, president of Coachmen RV Co. (right), with Rick Lavers, president and CEO of Coachmen Industries, and Rick’s wife, Christy. Page 39 Bounty Hunter Gulf Stream Marks its Silver Anniversary with Debut of Bounty Hunter Toy Hauler New SuperNova ‘Super C’ and ‘Ultra Large’ Class A Crescendo Diesel Pusher Unveiled at Dealer Meeting Gulf Stream Coach Corp. marked its engine. 25th anniversary during its annual June With a 7-foot ceiling and designed dealer meeting as the Nappanee, Ind.- to sleep eight people with side-aisle based manufacturer previewed the all- bunks and a rear bedroom, the floornew 2008 Bounty Hunter gas-powered plan is nicknamed the “Grand Hotel” Class A toy hauler motorhome. and retails for about $128,000. The 38-foot Bounty Hunter, Meanwhile, Gulf Stream also introequipped with a living-room slideout, duced its new 40-foot Crescendo UL was expected to be available in late July (Ultra Large) Class A diesel-pusher with a base MSRP of about $120,000. motorhome, built on a 32,400-poundCurrently in production standard on GVWR Freightliner XCR raised-rail a 24,000-GVWR Workhorse W-24 chassis equipped with a 330-hp chassis, the new motorized SURV is Mercedes Benz engine. available with an optional 26,000The double-slide Crescendo UL, pound GVWR Freightliner front- with a base MSRP of about $140,000, engine diesel (FRED) chassis. Along has a 25-foot full-wall slideout and with a 12-foot garage and queen-bed 71⁄2-foot interior ceilings — plus siderear loft, the Bounty Hunter also is aisle bunks and large wardrobes and equipped with a storage rack on the dressers. “We have a lot of innovating going pebble grain fiberglass roof. Also new from Gulf Stream is the on,” said Brian Shea, president of Gulf Conquest Division’s full-wall-slideout Stream’s motorized division. “We have floorplan in its new SuperNova Class the widest range of products and we are C line that debuted last November at building on more chassis than anybody in the industry.” — Bob Ashley 6 the Louisville Show. Built standard with full body paint on a 25,900-pound GWWR International 4000 series medium-duty Class 6 cutaway chassis, the SuperNova — part of a growing category of so-called “Super C” motorhomes — is equipped with a 350-hp International VE 365 SuperNova turbocharged diesel AUGUST 2007 Go To: .com User Guide RVBusiness 39 Contents 036-RVB_0708_LO_Dealer_Mtg 7/19/07 1:02 PM Page 40 OEM REVIEW Tag-axle Mandalay diesel pushers are built on Freightliner XCR raised-rail chassis. Four Winds, Mandalay Debut New High-End Motorhomes to Dealers Tag-Axle Diesel Pusher, Four-Seat ‘Crew Cab’ Version of SURV Fun Mover Among Offerings Four Winds International Corp. and Mandalay Luxury Division, Elkhart, Ind., hosted about 100 dealers June 17-18 in Las Vegas, where Mandalay debuted its first tag-axle diesel-pusher motorhome and Four Winds unveiled a crew-cab version of its Fun Mover SURV minimotorhome. “Generally, we wanted a higher-end feel for our 2008 models — and we attained that,” said Steve Shively, Four Winds’ Class C manager. “The dealers were very pleased with what they saw.” Four Winds and Mandalay are subsidiaries of Jackson Center, Ohio-based Thor Industries Inc., the largest RV manufacturer in the U.S. Mandalay debuted two 44-foot tag axle floorplans — for a total of five floorplans in the line — built on 44,320-pound GVWR Freightliner XCR raised-rail chassis powered by 425-hp Cummins ISL diesel engines. The triple-slideout Mandalay 43A features a 28-foot passenger-side full-wall slideout, while the quad-slide Mandalay 43B has a more conventional floorplan. Each coach offers more bathroom, kitchen and bedroom space. Damon Unveils New Daybreak to Dealer Body Daybreak sports new front cap and one-piece windshield. About 45 dealers attended Damon Motor Coach’s annual meeting June 1821 at the company’s Elkhart, Ind., facility, where they were shown a redesigned gas-powered Daybreak Class A motorhome meant to appeal to families and fulltime RVers. “It really appeals to both,” said Kevin Finn, vice president of Damon gas products. “The full-timers because of the storage, and the family because of the sleeping area that will sleep six to seven people.” Finn described the Daybreak’s new front cap with a one-piece windshield as “edgy” with a lower profile. Built on a Ford F-53 Super Duty chassis with GVWRs of up to 22,000 pounds, the Challenger also is available with the newly rated 21,200-pound GVWR Workhorse W-20 chassis. Daybreak is available in five floorplans, including a new triple-slideout king-bed layout, starting at $88,956. Other 2008 Damon product news: ■ The debut of an island kitchen floorplan in the gas-powered Challenger Class A with new cockpit furniture, oil-rubbed bronze hardware and a new contemporary furniture style. New Challenger Platinum Edition features in an upgraded package include full-body paint, power awnings, Corian kitchen counter- tops and home theater systems. ■ The year-old gas-powered Outlaw SURV has been redesigned with a new front cap containing a one-piece windshield. A new floorplan has been added with a fold-down Murphy Bed and cabinets installed in the 10 foot-deep garage so that it can be used more efficiently as a bedroom. ■ The Tuscany diesel pusher motorhome has two new 37-foot, tripleslideout floorplans on 28,000-pound GVWR Freightliner XCR raised rail chassis and lowered-engine option. — Bob Ashley 6 Challenger island kitchen 40 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 036-RVB_0708_LO_Dealer_Mtg 7/19/07 1:03 PM “The floorplans were predicated on what Mandalay owners already have in their coach,” said Jon Krider, Mandalay national sales manager. “But these floorplans allow king beds, and the 43A, with the full-wall slideout on the passenger side, allows more patio space. The MSRP for both tag-axle floorplans is $360,750. Other 2008 Four Winds products: ■ Two new 431⁄2-foot toy-hauler floorplans in the Four Winds Fun Mover Class C series built on 53,000-pound GVWR Ford F-750 extended-cab cutaway chassis that allow four people to sit in bucket seats in the cab area. “If you have a family of four, everyone can sit more safely in the cockpit,” said Ron Williams, Four Winds eastern sales manager. “The crew cab also creates a huge cabover bed.” Both new floorplans are equipped with sofa/dinette slideouts and offer 1,600pound capacity lift gates that access a 131⁄2-foot garage in the Four Winds 42C and a 10-foot garage in the Four Winds 42D. MSRPs start at $198,730. ■ The redesigned Four Winds Siesta and sister coaches Dutchmen Dorado and Chateau Citation Class C motor- Page 41 homes with curved exterior and interior walls and new seamless front caps giving the coaches a more aerodynamic, European look. The three lines are built standard on either 12,300-pound GVWR Ford E-350 or 14,050-pound GVWR Ford E-450 Superduty cutaway chassis in 21- to 31-foot lengths with up to three slideouts. MSRPs start at $63,500. Four Winds also has added what it calls “mega-storage” to some of its 2008 Class A and Class C models which allows large items to be hauled in an extra-large exterior storage com- partment that also features recessed storage bins. — Bob Ashley 6 New Four Winds Fun Mover floorplans include bucket seating for four in the cab area. Carriage Displays New Cameo, Domani Floorplans at Dealer Conference in Orlando, Florida Cameo now offers 11 floorplans in 31- to 37-foot lengths. Carriage Inc. showed dealers a second floorplan in its yacht-influenced 2008 Domani fifth-wheel trailer during the company's dealer meeting June 18-20 at the Gaylord Palms, Orlando, Fla. About 250 people representing 45 dealerships attended the event that debuted the 2008 Domani, as well as Carriage's new Royals, Carriage, CarriLite and Cameo fifth-wheels. “Compared to other shows, this one felt perfect,” said Don Emahiser, vice president of sales and marketing for the Millersburg, Ind.-based builder. “I can't say it any other way. Our attendance was up 40% from last year, and people seem to understand what we are doing and want to see more of it. Extra attendance means extra business.” Carriage has dedicated a production line to the Domani fifth-wheel, which incorporates both marine and automotive influences in two 31-foot doubleslideout floorplans. With aluminum-and-gelcoat construction, Domani — retailing in the $70,000s — has a yacht-like feel to the interior with curved walls and radius cabinets and countertops. The white, gray or silver exterior features automotive body and chrome accents, LED lights and frameless windows. Carriage also added a 32-foot side bath floorplan to the Cameo fifth-wheel line, which now features 11 floorplans in 31- to 37-foot lengths with up to four slideouts. MSRPs start at $49,000. Emahiser said Carriage came out of the meeting with orders that will prompt the company to ramp up production in its new 136,000-square-foot Millersburg factory where it assembles all its fifth-wheels with the exception of the Domani. “If we don't, we are sold out through the (upcoming) Louisville Show,” he said. 6 Both Domani floorplans feature two slideouts. AUGUST 2007 Go To: .com User Guide RVBusiness 41 Contents 036-RVB_0708_LO_Dealer_Mtg 7/19/07 1:03 PM John Nepute MONACO from 37 ■ Continued growth in year-old Monaco Financial Services (MFS) in partnership with GE Capital Solutions and GE Consumer Finance for both wholesale inventory flooring and retail financing. Since last summer, Nepute reported, Monaco has saved dealers nearly $3 million with its 30- and 15-day free flooring programs and is “on track” to save dealers about $4 million more this program year. “On the retail side,” Nepute noted, “we’ve paid out almost $2 million dollars in extra participation that’s built right into the MFS retail program — and that doesn’t count the millions we’ve saved you by forcing competing lenders to sharpen their pencils to match this industry-leading program.” Monaco, according to Snell, is continuing the 30 days of free flooring on all class A’s, and 15 days free flooring on all Class B’s, Class C’s and towables. Some 300 dealers are currently doing business through MFS, an increase of more than 100 dealers from a year ago, and loan commitments now total nearly $400 million. ■ Monaco’s groundbreaking “Franchise for the Future (FFTF),” a oneof-a-kind program launched in 2005 that in the first two years has yielded more than $60 million in payouts to participating Monaco dealers. “I would like to put a lot of your minds at ease by saying we are not announcing any changes to the format of the FFTF Program,” Snell explained. “I have received a lot of feedback from many of you, describing the financial successes of this program for your 42 RVBusiness Go To: Page 42 Texas. Cited as “Rookie of the Year” dealerships and was Carolina RV, Columbia, S.C., how you have startwhile “Most Improved” honors went ed to make business to Tucson’s Beaudry RV. decisions based on What, meanwhile, does the future your FFTF results. hold for Monaco and the rest of the You wanted to industry, Toolson asked in his conmake sure we cluding June 20 remarks? “Well, it weren’t tweaking certainly holds high fuel prices, and the financial comwe expect them to stay there for the ponents of FFTF foreseeable future,” he said. “But, you this year, and after know, this is a strong economy — hearing John and we are in a great industry. If you (Nepute) talk about have any doubts about the resiliency the numbers, it’s of the RV industry, just think back to apparent why.” where we were in the ’70s and ’80s. However, there The demographics continue to be are internal changes incredibly compelling. The number afoot for Monaco’s of Baby Boomers entering our target franchise program, as all of the adminmarket continues to explode, with istrative functions are being taken inmore than 350,000 Americans house at the company’s Coburg headreaching the age of 59 every month. quarters after having worked previThat’s 4.2 million this year alone. ously through a vendor, Pied Piper This gives us an amazing opportuniManagement Co. LLC. As part of the ty to expand our businesses over the change, Monaco is establishing a connext 10 to 20 years.” — Sherman solidated new Dealer Services departGoldenberg 6 ment through which Craig Wanichek, director of treasury and investor relations, will oversee dealer development, franchise operations, MFS, Monaco Extended Care Warranty as well as the company’s 24/7 roadside assistance and technical support programs. ■ The Top Ten Monaco dealers recognized in Vegas (in order) included Lazydays RV Center Inc., Seffner, Fla.; Beaudry RV, Tucson, Ariz.; DeMartini ABOVE: Gas-powered Monaco Monarch BELOW: Holiday Rambler Augusta Auto & RV Sales, Grass Valley, Calif.; Giant Inland Empire RV, Colton, Calif.; Guaranty RV Center, Coburg, Ore.; Paul Evert’s RV Country, Fresno, Calif.; Buddy Gregg Motor Homes, Knoxville, Tenn.; Simi RV Sales, Simi Valley, Calif.; Guarantee RV, Calgary, Alberta, Canada; Vogt RV Center, Ft. Worth, AUGUST 2007 .com User Guide Contents 043-RVB0708 pg. 43 good sa 7/18/07 6:07 PM Page 43 One owner – who did no maintenance whatsoever. Hasn’t been driven in six years. 2000 AI RSTR EAM LAN D YACHT CLIPPE R “New” tires salvaged from junk yard. One owner. Loaded. Low mi work-horse chassis, self-con les, tained generator, awning, big slid eout, new tires, full shower, bath, kitchen, roof air , quee n bed, certified road-ready, jus t tuned. $18K or best offer. “Certified” and tuned by Cousin Lester. Become a Good Sam Authorized Dealer and your customers won’t have to read between the lines. As a Good Sam Authorized Dealer, you’ll have automatic credibility – and sales power – from the most recognized name in the RV industry. For a proven way to increase sales and profits, put the Good Sam seal of approval on your dealership. Our Good Sam Certified Pre-Owned RV program will take the guesswork out of buying a used RV for your customer as all certified, pre-owned vehicles bear the Good Sam seal of approval, a quality endorsement that will mean 7-10% increased revenue for you! To find out more about joining the Good Sam Authorized Dealer network, call 1-800-547-1948 or visit www.goodsamdealers.com Go To: .com User Guide Contents 044-RVB_0708_LO_OEM_Bigfoo 7/18/07 6:20 PM Page 44 OEM ■ By Bob Ashley ■ Photos by Don Weixl Extreme Machines BIGFOOT INDUSTRIES WAS FOUNDED ON THE STRENGTH OF ITS HEAVILY INSULATED, SINGLESEAM TRUCK CAMPER, AND THE CANADIAN MANUFACTURER STILL SPECIALIZES IN RVS CAPABLE OF CAMPING IN HARSH WEATHER CONDITIONS. B igfoot Industries in Armstrong, British Columbia, doesn’t only build truck campers, travel trailers and motorhomes that are designed to be self sufficient in the often harsh Canadian climate. The company itself is highly self-sufficient, manufacturing its own molded, heavily insulated, two-piece shells for its truck campers and some of its travel trailers, and bonded fiberglass components for travel trailers and Class C motorhomes. “Our market is seasoned RVers. People who buy our units have RVed for years,” said sales manager Wolf Ernst. “They see the benefits of the two-piece construction. We are known for our insulation and our cold-weather units. Some of these models can be used in below-freezing temperatures if they are properly equipped with thermopane windows, heated and enclosed holding tanks and high-output furnaces. “Probably 80% of Bigfoot units are manufactured to that standard. People know that what keeps you warm in the winter will also keep you cooler in the summer.” Bigfoot was founded in the early 1970s, and later sold by its original owner, Terry Mayall, who subsequently formed Leisure Coach Works, marketing Oakland-branded fifth-wheels and Class C motorhomes. In the mid1990s, he repurchased Bigfoot and consolidated the two companies. Mayall died in an airplane crash in March 1998, and his wife, Sharon, took over as president and CEO of the company. Bigfoot’s original product was a twopiece, molded 17-foot fiberglass travel Bigfoot 4000 Series minimotorhome is available in 32- and 35-foot lengths. Both are built on Chevy Kodiak medium-duty truck chassis. 44 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 044-RVB_0708_LO_OEM_Bigfoo 7/18/07 6:21 PM Page 45 Alan Potts, general manager and CFO, with Sales Manager Wolf Ernst. Bigfoot Industries is headed by Sharon Mayall. trailer. “It’s a cousin of what’s built today,” Ernst said. “We were ahead of the times. Instead of having multiple seams, you only have one. Leaks are the biggest enemy of RVs. Our construction makes our units impervious to water and dust because they are extremely well sealed. We are not a mass-produced product. Everything we do is by hand.” Again, Bigfoot RVs are extremely well insulated. “All of our units are built for the Canadian climate, which can be extreme on both sides of the scale — hot and cold,” Ernst said. “We sell a lot of units — primarily truck campers — into Alaska because of our winterization. It can get pretty rough up there.” Bigfoot’s largest markets are British Columbia and Alberta, Canada, but the company also has dealers in the western U.S. and a few on the East Coast. As for self-sufficiency, Bigfoot manufactures its own fiberglass shells for its campers and travel trailers along with other paraphernalia, including shower stalls and bath tubs, fender skirts, propane bottle- and spare-tire covers. “If it’s fiberglass and it’s on our unit, we made it,” Ernst said. “We’ve got 100plus active fiberglass molds.” The company also builds its own slideouts and operates its own woodworking shop. “By making our own parts we get better quality control,” Ernst noted. “We are not relying on suppliers who might short-ship us or who might run out of stock, which can cause all kinds of headaches. “It makes it more complicated for us, VITAL statistics COMPANY: Bigfoot Industries (www.bigfootrv.com) LOCATION: Armstrong, British Columbia FOUNDED: 1976 KEY PERSONNEL: Sharon Mayall, president and CEO; Alan Potts, general manager and CFO; Jim Johnson, COO; Wolf Ernst, sales manager; Brad Harvey, Canadian factory rep; Kim Kipers, U.S. sales manager; Doug Sloan, U.S. sales rep. PRIMARY PRODUCTS: Bigfoot Class C motorhomes, travel trailers and truck campers. PHYSICAL FACILITIES: Approximately 100,000 square feet in six buildings that include offices, three production lines and welding, fiberglass and woodworking shops. EMPLOYEES: Approximately 150. The Canadian company manufactures its own fiberglass parts, including travel trailer shells and propane-bottle covers. “If it’s fiberglass and it’s on our unit, we made it,” said Wolf Ernst. AUGUST 2007 Go To: .com User Guide RVBusiness Contents 45 044-RVB_0708_LO_OEM_Bigfoo 7/18/07 6:21 PM ABOVE: Bigfoot Industries’ 100,000-square-foot manufacturing campus in Armstrong, British Columbia. PRODUCT BIGFOOT INDUSTRIES builds two-piece, molded gelcoat fiberglass truck campers and travel trailers along with conventional travel trailers and Class C motorhomes — mid-priced all-season equipment attuned to a northern climate. ■ BIGFOOT 1500 and 2500 series truck campers — in lengths of up to 101⁄2 feet — consist of two-piece, molded fiberglass shells for shortand long-bed pickup trucks. The primary difference between the two is that the five 2500 floorplans are equipped with basement storage and are more heavily insulated. Base MSRPs: 1500 Series, $18,000; 2500 Series, $22,800. In addition, five travel trailer floorplans with the same construction are offered in the 2500 Series with a base MSRP of $22,700. ■ BIGFOOT 3000 series truck campers, travel trailers and minimotorhomes are a step up in amenities and features, and are built in a more traditional manner with aluminum frames, bonded fiberglass sidewalls and molded front and rear caps. ■ THE BIGFOOT 3000 Series minimotorhome is assembled on the 14,050-GVWR Ford E-450 Super Duty chassis with MSRPs starting at $79,300. ■ BIGFOOT'S DOUBLE-SLIDEOUT 4000 Series Class C , the company’s flagship minimotorhome, has been available since 2005 in 32- and 35-foot floorplans on the 20,500-pound GVWR Chevy Kodiak 5500 medium-duty truck chassis. Features include bonded fiberglass sidewalls, molded front and rear caps and abundant storage. MSRPs start at 118,800. 46 RVBusiness Page 46 RIGHT: Bigfoot 3000 Series minimotorhomes are built on 14,050-pound GVWR Ford E-450 cutaway chassis. BELOW: Vertical high-pressureinjection press mold forms sidewalls for minimotorhome series. but if there’s a problem with a part — if it’s broken — we can manufacture another one. I can go to the cabinet shop and tell them that we need another valance box and they can make one.” Ernst said that in recent times, the market for Bigfoot products has changed. “The truck camper has become more popular,” Ernst said. “I think it’s related to gas prices. There are some definite advantages of truck campers — you can take your boat with you and have your truck as your vehicle to drive around when you camp. It’s just an all-around more flexible situation.” Not surprisingly, the 2500 series truck camper is the company’s most popular product. Ernst said that although seasoned RVers are the company’s primary buyer, demographics in the Canadian RV market have begun to shift, just as they have in the U.S. “We are finding that more younger people are coming into the market,” he pointed out. “They are a little more affluent. The Baby Boomers are still there, but there definitely is a trend toward younger families buying our units.” Bigfoot is expanding in a number of different areas. “We probably will be building a motorhome on a four-wheeldrive chassis, and we are expanding our 3000 Series motorhome with more floorplans. We will be developing prototypes through 2008 for production planned for 2009.” Also on the drawing board is a double-slideout truck camper and, perhaps, a toy-hauler type vehicle in the Bigfoot 4000 Series on a Kodiak chassis. 6 AUGUST 2007 Go To: .com User Guide Contents 030-RVB_0708_LO_HOFame 7/18/07 6:57 PM Page 47 HALL OF FAME from page 33 COACH GLASS INC., CIRCLE 119 ON READER SERVICE CARD well as those that are in the rear-view mirror. After acquiring 40 acres adjacent to the Indiana Toll Road in 2000, it took the board five years before deciding to go ahead with the project — a time during which some commitments started to soften. “We weren’t totally funded when we said ‘go,’” Altman told RVBusiness. “We finally said that we needed to step up to the plate and get started … or not build it. It was important to all of us that we don’t put a burden of debt on this thing because it’s just not going to be able to support it.” The foundation also is seeking to build a $30 million endowment to cover the Hall’s ongoing operations. “We’ve just started it,” Ehry said. “We are going to announce it at the dedication.” Even after construction on the building started, plans changed when Ingram put up $1 million to allow the foundation to purchase Woodworth’s 1,800piece collection of antique RVs and camping paraphernalia. Later, Ingram also financed $1.5 million to build another wing of the museum to house the collection. “The Woodworth collection added a lot,” Altman noted. “We were very fortunate we had a board member willing to finance the acquisition. Our goal all along has been to have a world-class museum.” Even with the building’s dedication, the project is obviously far from complete. A 20,000-square-foot kitchen/ conference center and a 20,000-squarefoot manufactured housing wing are planned and will be completed within the next couple of years after financing is secured. Long range, the foundation owns 20 undeveloped acres east of the hall of fame/museum and holds an option to rent or buy another 20 acres that could be developed into RV-related facilities. “We are going to try to have RV shows, antique auto shows, whatever people REM Industries, Inc. Quality Furniture From Start to Finish Unsurpassed quality, workmanship and customer service… • Hardwood Upholstered Chairs - Using our fabric or yours • Handcrafted Pillows, Afghans, Dinette Cushions • Hardwood Hide-A-Leaf, Coffee, and End Tables Colorful displays of restored vintage RVs line the “road” winding through the open, two-story hall. • Choose From Existing Styles or We Will Create One From Your Specifications Top Supplier m Recognition fro o nac Newmar & Mo 574-862-2127 • www.rem-ind.com AUGUST 2007 Go To: .com User Guide RVBusiness 47 Contents REM INDUSTRIES, CIRCLE 101 ON READER SERVICE CARD Made in the USA 030-RVB_0708_LO_HOFame 7/19/07 12:54 PM Page 48 Hall to Fete 10 New Members Upstairs areas include a library/reading room (above), and the display of all 304 Hall of Fame members (right). want,” Ehry said. “At some point we want to have a little village of manufactured housing on display and an outdoor pavilion with naming rights that could be seen from the Toll Road and used for rallies and shows.” “We know there are a lot of shows available to us if we can get it together,” said Altman. “It will be a solid business deal.” Word on the street is that hotels, restaurants and other retail businesses suitable for an interstate interchange that could help attract more people to the vicinity of the fledgling RV/MH Hall of Fame are expected to be built in the office park where the new facility is located. “We've just heard rumors,” said Ehry. 6 Inductees into the 2007 class of the RV/MH Hall of Fame, all of whom were to be saluted at an Aug. 6 induction dinner: Mel Adams, president of Airxcel Inc., Wichita, Kan.: A past chairman of the Recreation Vehicle Industry Association (RVIA), Adams is also chairman of the RV Service Training Council (RVSTC) and is recognized as a leading voice for industry education and customer satisfaction. Jerry W. Britton, president, Textron Financial Corp., Revolving Credit Group, Alpharetta, Ga.: Britton has been active in the financing of RV and manufactured housing dealers for over 30 years. Currently, Textron provides floorplan financing for over 800 dealers and annually finances over $1 billion in industry products. Billy Sims, owner of Billy Sims Trailer Town, Lubbock, Texas: An RV retailer for 37 years, Sims has served on the board of directors of the Texas RV Dealers Association and on the dealer councils for several manufacturers. Paul Skogebo, president of Robert Crist and Co. RV, Mesa, Ariz.: The RV retailer is the founder and president of the Recreation Vehicle Dealers Exchange Co. (REDEX), an independent dealer buying group with more than 100 dealers. In addition to operating and co-owning an RV dealership that is more than 70 years old, Skogebo has founded multiple RV and manufactured housing parks. Tom Stinnett, president of Tom Stinnett RV Freedom Center, Clarksville, Ind.: In addition to 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. operating one of the nation's larger RV dealerships, Stinnett is co-chairman of the Go RVing Coalition, chairman of the Recreational Vehicle Assistance Corp. (RVAC) and past chairman of the Recreation Vehicle Dealers Association (RVDA). Don Walter, president of Starcraft RV Inc., Topeka, Ind.: Walter is a founding member and co-chairman of the Go RVing Coalition. He is a past chairman of the RV Indiana Council and has served for more than 20 years on the RVIA Public Relations Committee. Manufactured housing honorees include the late Jerry Wilson, founder and president of Cavalier Homes Inc., Addison, Ala.; R.C. “Dick” Moore, CEO of Dick Moore Housing Inc., Millington, Tenn.; Ronald Thomas Sr., chairman of Rona Enterprises Inc., Pataskala, Ohio, and James P. Visser Sr., Manchester, Ga., publisher of The Journal, a monthly trade journal addressing the manufactured housing sector. 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 48 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 7/18/07 PUBLIC DOMAIN 6:55 PM Page 49 BY BOB ASHLEY RVIA Passports to Finally Get ‘China’ Stamp, But Local Pols Hamper Travel to State Campgrounds T he Recreation Vehicle Industry Association’s (RVIA) on-again, off-again August trip to China in is back on — sorta. RVIA President Richard Coon and Bruce Hopkins, vice president of standards and education, plan to attend the China Sports and Recreation (CSR) Show in Shanghai Aug. 10-12 to ease Chinese concerns about RVIA canceling the trip in the first place. Hopkins said that the association still intends to organize a formal trade mission late next winter and will use the trip to make plans for the more encompassing visit in which RVIA members will be invited to participate. “We don’t want this to become a mini-trade mission for the trade mission that we are planning early next year,” Hopkins said. “We basically are going to fulfill our obligation to them and do a little scouting around.” Coon announced during an RVIA Committee Week luncheon in early June that he had turned down the Chinese government’s request to lead the August trade mission due to the speed with which the trip was to have been put together and the association’s inability to pin down specifics. In an e-mail to members in midJuly, Coon described show officials as “devastated” that RVIA had decided not to attend the event. “They had counted on RVIA representatives to be the featured speaker and a factor in the success of the show,” Coon wrote. “Because of their concern regarding potential negatives relating to our having accepted and then subsequently canceled our participation in the show, (they) re-invited us. “To maintain the positive relationship with the Chinese representatives with whom we have been dealing ... we have accepted their re-invitation to attend.” Coon said his role will be to speak during a show forum. Although one northern Indiana manufacturer is said to be independently planning to attend the Chinese show with display units at the behest of a Chinese supplier, the association will not have a booth at the event. “This will just be a factfinding tour so that we can better plan for the trade mission when we go back next year,” Hopkins said. • • Why Aren't You Renting RV’s? 5 Reasons To Be In The Rental Business • Generate Additional Positive Cash Flow • Create Your Own Clean Used Sales Inventory • Introduce Potential Customers To The RV Lifestyle • Provide A Service Other RV Dealers Don’t • Build Interest In Your Dealership With A Younger Customer Base MBA Insurance, Since 1978 • Insuring • Motorhomes / Travel Trailers / Pop-Ups • Has anyone noticed that whenever politicians who run state government hit a budget impasse, among the first facilities that get shut down are state-operated campgrounds? It has happened twice this year so far — first in early July in Michigan, while the state temporarily closed down 20 state forest campgrounds to avoid a $75,000 budget shortfall, continued on page 51 Call MBA for your rental quote 1-800-622-2201 www.MBAinsurance.net AUGUST 2007 Go To: .com User Guide RVBusiness 49 Contents MBA INSURANCE, CIRCLE 113 ON READER SERVICE CARD 049-RVB_0708_LO_Pub_Domain 050-RVB_0708_LO_Ad Index 7/20/07 3:51 PM ADVERTISERS’ INDEX Page 50 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 Pg.# RS# Advertiser Pg.# 105 3M Corporation . . . . . . . . . . . . . . . . . . . . . . .21 106 Liberty Electric Bikes . . . . . . . . . . . . . . . . . . .24 103 B W Trailer Hitches . . . . . . . . . . . . . . . . . . . .24 113 MBA Insurance, Inc. . . . . . . . . . . . . . . . . . . .49 108 Bank of America . . . . . . . . . . . . . . . . . . . . . . . .5 125 Maxx Air Vent . . . . . . . . . . . . . . . . . . . . . . . .55 107 Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .13 122 Maxxis International . . . . . . . . . . . . . . . . . . . .56 124 Canvas Replacements . . . . . . . . . . . . . . . . . . .54 104 Monaco Coach Corporation . . . . . . . . . . . .CV2 Classifieds . . . . . . . . . . . . . . . . . . . . . . . . .52-53 121 Onan Corporation . . . . . . . . . . . . . . . . . . . . .17 119 Coach Glass Inc. . . . . . . . . . . . . . . . . . . . . . . .47 117 Pennsylvania RV and Camping Association . .51 102 DTI RV Parts & Appliances . . . . . . . . . . . . . .8 101 REM Industries . . . . . . . . . . . . . . . . . . . . . . .47 Dometic Corporation . . . . . . . . . . . . . . . . . . .48 110 RVTrader Online . . . . . . . . . . . . . . . . . . . . . .54 112 Draw-Tite, Hidden-Hitch, Reese . . . . . . . . . .57 111 Recreation Vehicle Industry Association . . . .29 123 Flight Systems . . . . . . . . . . . . . . . . . . . . . . . .57 109 River Park Inc. . . . . . . . . . . . . . . . . . . . . . . . .18 120 Ford Motor Company . . . . . . . . . . . . . . . . . .6-7 128 Rvtripsetter,com . . . . . . . . . . . . . . . . . . . . . . .34 Freightliner . . . . . . . . . . . . . . . . . . . . . . . . . . .11 114 Systems 2000 . . . . . . . . . . . . . . . . . . . . . . . . .56 127 GE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 118 TrailManor . . . . . . . . . . . . . . . . . . . . . . . . . . .59 Good Sam Authorized Dealers . . . . . . . . . . . .43 126 Transfer Flow Inc. . . . . . . . . . . . . . . . . . . . . . .55 115 KeyCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 116 Zurich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 While every effort is made to maintain accuracy and completeness, last-minute changes may occasionally result in omissions or errrors. D]Yjf^gjqgmjk]d^o`q :mkaf]kkak_gg\$ ZmlKm[[]kkakZ]ll]j LiZ]^kFZgZ`^f^gm@khnil LiZ]^k+)@khnif^f[^kl]bl\ho^kg^pb]^ZlZg][^mm^kpZrl[r phkdbg`mh`^ma^kpbmaZm^Zfh_ma^bki^^kl' GhfZmm^kahp`hh]rhnk[nlbg^llblghp%ZLiZ]^k+)@khni bgrhnkbg]nlmkr\Zga^eirhn`^mmhma^g^qme^o^eh_ln\\^ll' Ma^k^lnem8LfZkm^k%_Zlm^k%[nlbg^llfZgZ`^f^gm' LiZ]^kFZgZ`^f^gm@khnill^ko^ ]bo^kl^bg]nlmkb^l&\hgmZ\mnlmh]Zr mhchbgZ`khnibgrhnkbg]nlmkr' ;Yddlg\Yqgj[`][cgmjo]Zkal] ^gjegj]af^gjeYlagf 1))&00+&,,00 ppp'liZ]^k'\hfbg_h9liZ]^k'\hf 50 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 049-RVB_0708_LO_Pub_Domain 7/18/07 6:56 PM Public Domain from page 49 then a week or so later in Pennsylvania when state park campgrounds were closed for about a day and campers ordered to evacuate when the governor and legislature wrangled over a new state budget which was late being approved. Some 24,000 Keystone State workers were furloughed for the day, but the fact is that campground closures were high on the list of services that received publicity when the cuts were announced. You know, it sure seems ludicrous to shutter revenue-generating parks during a budget crisis. Michigan had raised its overnight camping fee from $10 to $15 a night at its rustic campgrounds earlier this year. The closures not only robbed state coffers, but also harmed nearby businesses — such as Northland Outfitters in Germfask, Mich., which hosts canoe and kayak trips on the Manistique River, the participants of Page 51 which oftentimes overnighted at a now-closed campground nearby. While obviously trying to rile the public for political advantage by shutting down services, government officials likely are inadvertently helping local private campgrounds that pick up the slack. • • • RVIA President Richard A. Coon said he didn’t intend to stir the political pot within the RV industry when he noted during an RVIA Committee Week luncheon in June that his staff this year has been monitoring twice as many RV franchise-related bills and proposed amendments in state legislatures than just two years prior — from 32 in 2005 to 61 this year. Any dealer with a particular ax to grind who has the ear of an influential legislator has the potential to disturb the carefully crafted cooperation between RV manufacturers and dealers, Coon told me after the luncheon. “One dealer, frankly, could wreck the cooperation and good relationships that have developed while manufacturers and dealers have been working on the customer-satisfaction issues,” Coon said. “Both sides of the house say we are working together as well as we have in a long time. We all have to be careful, whether its manufacturers or dealers, that no one does something really dumb.” Coon said his comments weren’t aimed at a particular situation, but that he was trying to view the big picture — “standing at the thousand-foot level and looking down,” he said. Asserting that dealers and manufacturers are working in concert more now than in previous years, Mike Molino, president of the Recreation Vehicle Dealers Association (RVDA), said he understands Coon’s concern. “There is a fragileness about the relationship (between manufacturers and dealers),” Molino said. “I understand the sensitivity that he’s talking about.” 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. !-%2)#!3,!2'%34263(/7 4HETH!NNUAL0ENNSYLVANIA 4RADE$AYS3EPTEMBER 0RINCIPLE#ENTERED3ELLING0LUS 3PECIAL3HOW3ELLING3TRATEGIES WITH2ANDY3OBEL (ALLOF&AME#OACH -ARV,EVYISGUARANTEED TOMOTIVATE )NDUSTRYNIGHTOFFERS(%23(%90!2+¸ RIDES""1AND,ITTLE2IVER"AND 0UBLIC$AYS3EPTEMBER (%23(%90!2+¸%.4%24!).-%.42%3/243#/-0,%8(%23(%90! 2EGISTERNOWORVISITWWWLARGEST26SHOWCOM PENNSYLVANIA RV & CAMPING, CIRCLE 117 ON READER SERVICE CARD AUGUST 2007 Go To: .com User Guide RVBusiness 51 Contents 052-RVBC Class 2007-August 7/18/07 6:15 PM Page 52 CLASSIFIED ADVERTISING ACCESSORIES BUSINESSES FOR SALE WWW.TRAILERFLOORCOATINGS.COM Non-Skid, Long Life Chemical and Stain Resistant Utility Trailer Floors, Ramps, Car Haulers, Steps. Applies like Paint — Brush-on, Roll-on SO. FLORIDA RV S/P/S. Been in bus 25 yrs & wife wants to retire. Fantastic opportunity to live, work, & fish in paradise. 300' on hwy, paint booth, RV lift, 2 acres, 5 work bays, and a 2-story sales, parts & service bldg. This is an opportunity for you to walk into a business & make money now! Reply: RVB-765, PO Box 8510, Ventura, CA 93002-9912. Email: [email protected], with subject RVB. WINEGARD SATELLITE DISHES AND ANTENNAS Authorized Winegard Distributor Established 1967 800-527-4662 • Huntington, WV CONSULTANT/ TRAINING OPERATING/CASH BUDGETS/ RESULTS ANALYSIS Do you have Meaningful Budgets? Do you Forecast Operating & Capital Cash Flows & Needs? Credit Lines Adequate? Hardee McAlhaney, RV Solutions, LLC 30 Years CFO Experience [email protected] • 321-689-9238 JOHN MANCINELLI Consulting & Training 36 Year RV Industry Veteran www.johnmancinelli.com [email protected] 270-793-0509 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”. EMPLOYMENT OPPORTUNITIES JOB HUNTING? NEED RV PERSONNEL? Call Jerry Roach 800-546-5579 Robert Sage & Associates Serving the RV Industry since 1969 www.rvemployment.net © HELP WANTED SALES PROFESSIONALS We are looking for experienced RV sales people that 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 Joel Grimm or email [email protected]. EXPERIENCED RV LOT SALESPERSON needed immediately for Five-Star Motorcoach Resort in Pahrump, NV, located in the vicinity of Las Vegas. Contact Natalie at [email protected] COT TONWOOD, AZ — CERTIFIED LEAD TECHNICIANS. Great pay yr round. No slow season. Rapidly growing company. Willing to certify right individual(s). Great opportunity to advance. Call (928) 646-6726 or see www.crvvv.com 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]. 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 October issue is August 7. This issue reaches subscribers September 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: Mail to RV BUSINESS Classifieds, P.O. Box 8510, Ventura, CA 93002-9912, or Fax to (805) 667-4379, Attn: Classified Ads Department 52 RVBusiness Go To: AUGUST 2007 .com User Guide Contents 026-RVB_0708_LO_Heartland_ 7/18/07 6:20 PM Page 53 HEARTLAND from page 28 SERVICE MANAGER Marks RV is a fast-growing RV Dealer in Ft. Myers, FL and is looking for a qualified Service Manager to grow with us. We offer a 20-acre, 50,000 sq ft new facility with 21 service bays and all the top brands. Excellent pay package for the right person. Fax resumé to Chris Stout at 239-790-0136 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] RECREATIONAL VEHICLES WANTED $ WE BUY $ MOTORHOMES CLEAN—LOW MILES—NO SMOKE/PET CASH Payment & NATIONWIDE Pick Up Contact Bill Fishfader @ 1-509-993-0321 RVs NORTHWEST • SPOKANE, WA PACKRAT STORAGE — Consigns, Buys RVs Class A, B, C Motorhomes Not Picky! Cash for Referrals. Nationwide Pickup. 1-877-520-MINI www.packratsa.com 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! RV PARTS FLEETWOOD PARTS DEALER Fast Service, Knowledgeable Discontinued Parts, FDN System Major Damage Repairs, We Buy Wrecks 1-800-720-0484 • www.rvpartstore.com www.WINNEBAGOPARTS.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 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.coachmenparts.com SERVICE TRAINING INCREASE PROFIT for your service department! Have your people certified as MASTER RV TECHNICIANS. Call (941) 722-5256. RV SERVICE ACADEMY in Palmetto, Florida. www.rvsa.net Licensed and approved for VA training tions of a lightweight. Ultra-lightweight, which is 18 to 22 feet. Then you’ve got the 3,000-pound lightweight, which usually are expandable with the tent ends. And then there are conventional lightweights that run from 4,800 to 5,300 pounds in different sizes. That’s the area that we are going to compete at — with an 8-foot wide versus 71⁄2-foot wide because that’s where the majority of the market is. It fits with what we’re already doing. Landmark competes at the high end. Big Horn competes at mid-price. Big Country, Sundance are more middle price points. Our travel trailer is going to be more entry level, at least for us. RVB: And this bridges you to a highervolume travel trailer? BRADY: Absolutely. RVB: Tell us more, if you would, about this new line? HOFFMAN: It’s going to come out under the North Trail brand in sizes running from 24 to 30 feet, from no slides to double slides. We are going to offer a variety of floorplans. One we are going to call the fun hauler - a toy hauler, but it’s going to have a side door so you can get to things from the side. We are finding that marketplace is growing a little bit; it’s becoming more diversified. Not everyone wants to take quads with them. They’ll haul mopeds and bicycles, and the door on the side helps them accomplish that. We are looking at a variety of different floorplans that a dealer can buy, bring onto his lot and hit so many segments of the marketplace and a variety of people. It’s just not locked into one type of customer or one type of niche. RVB: One of the biggest developments of late was your decision to sell a stake of the company to a private equity firm last February. BRADY: We were very fortunate in that this was something we did not have to do. We entered into discussions with Catterton in the fall of 2006. At that time, we were in the process of doubling our business from the prior year. We had an impeccable balance sheet. We were debt free. We were very attractively profitable. What does that mean? We were in the enviable position to be very selective whether or not to do a deal, and if we did a deal, picking the right partner with the right terms. For example, many private equity transactions today involve a lot of leverage — a lot of debt on the balance sheet. We went into the deal debt free. Posttransaction, Heartland remains debt free. RVB: Then what was the motivation for it? BRADY: Certainly, there was a very attractive liquidity event for all the share holders — no question. But we knew that we had a very valuable asset. One of my concerns was the changing economic environment, the changing industry dynamics. I think it’s inevitable the way our industry is going that there will be some consolidation. When is that going to happen? I don’t know. But when you look at it, think about the towable side of the business. It’s fragmented. That’s an inefficient market. Why would the towable segment of the RV industry be any different than almost every other industry in the United States? So, I wanted to make sure that we had the financial resources available to us that would enable Heartland to withstand environmental stress beyond our control. RVB: What was the most important thing that you gained by doing the partnership? BRADY: Maybe the ability to grow in a balanced way. For example, this year we’re in the beginning stages of a major information technology implementation here, which I would say is probably unprecedented for a manufacturing company in this industry that is three years old. We are not going to let issues related to customer service, parts and warranty get away from us for lack of technology. Not only do we have the financial resources to invest in that, our partners have considerable experience in that to guide us through the process. RVB: Is information technology one of Catterton’s strong suits? BRADY: Absolutely. The other thing is that all Catterton does is invest in consumer product companies. They don’t invest in financial services, medical technology ... only consumer companies. They understand today’s consumer. And we have some issues that we are not prepared to discuss right now that revolve around today’s consumer, what today’s consumer wants and how that relates itself to a manufacturer of travel trailers and fifth-wheels. RVB: It also sounds like you’ll have plenty of autonomy when it comes to building RVs. HOFFMAN: No question. Their influence, which we welcome, has been absolutely complementary to what we do. RVB: Where do you see the industry at continued on page 54 AUGUST Go To: .com User Guide RVBusiness 53 Contents 026-RVB_0708_LO_Heartland_ 7/18/07 6:20 PM Page 54 HEARTLAND from page 53 CANVAS REPLACEMENTS, CIRCLE 124 ON READER SERVICE CARD this point, and how does Heartland in its current state fit in? BRADY: How we look at that market goes back to the same simple beliefs: Build value into your product and build the franchise. Just coming out with another ‘me-too’ type of trailer is not going to increase the market share. It’s almost a matter of attrition out there either I’ve got to sell my 10 coaches today or the competition does. So, how do we outsell the competition in an attrition market? It’s listening to the customers. It’s having diverse floorplans that sell, that stand out in the marketplace. HOFFMAN: We spent a lot of time working with our dealers, recognizing their inventory and understanding their floorplan line and inventory turn. We concentrate a lot of our time working with the dealer making sure that we have turns, that we put floorplans and product on their lot that hit sweet spots in the retail market and sell. RVB: Is relationship-building with your dealer body even more important in a tight market? BRADY: Objectively speaking, the last nine months, it hasn’t been as robust out there. It’s been a little soft. OK, what happens? We find that businesses look inward. They do away with excesses and tighten things up. That’s the rational economic response to a softening market. Conversely, dealers reevaluate relationships, and maybe a relationship with a particular manufacturer made sense at the time the relationship was created, but in a more difficult, more competitive marketplace, that relationship has lost its validity. Consequently, that creates an opportunity for Heartland. RVB: Sure sounds like it’s the latest fasttrack growth story from the recreational vehicle sector, despite the challenges of a weird economic environment this year. BRADY: “We are enjoying a good run right now, and it is an interesting story. But I would temper that by saying that what we have done has been done before — and so we certainly do not want to imply that what is occurring at Heartland is unprecedented. But it hasn’t been done recently. These guys have done an absolutely outstanding job of executing in a very competitive and sometimes difficult market.” 6 RVTRADERONLINE, CIRCLE 110 ON READER SERVICE CARD Go To: .com User Guide Contents 009-RVB_0708_LO_TOP 7/20/07 3:07 PM Page 55 CAFE from page 23 MaxxFanTM Is the ONLY RV Ventilator on the market with a Built-In Rain Cover! AND... It’s Fully Remote Control! Its unique patented rain shield moves into position, protecting your RV’s interior. One Touch Does It All! • Remote control operates all fan functions from the palm of your hand • Easy to use Remote Control always displays room temperature • No more step ladders or stretching to reach the ceiling fan See our entire line at www.maxxair.com <RXU2(0$IWHUPDUNHW )XHO7DQN6RXUFH ,QEHG$X[LOLDU\)XHO7DQNV 2); *HQHUDWRU7DQNV KEPPSRKIRIVEXSVXEROVITPEGIW WXSGOTVSTERIXEROSRÀJXL[LIIP ERHXVEZIPXVEMPIVW'EPPJSVTVMGMRK )XHO)LOOQHFN.LWV =SYV0IKEP*YIP8ERO7SYVGI ZZZWUDQVIHUIORZFRP AUGUST 2007 Go To: MAXX AIR VENT, CIRCLE 125 ON READER SERVICE CARD Retracts securely at the touch of a button. Low-Profile and aerodynamic when closed! .com User Guide RVBusiness 55 Contents TRANSFER FLOW INC., CIRCLE 126 ON READER SERVICE CARD an immediate 25-30% fuel improvement over gasoline engines. Auto manufacturers have also begun shifting from full-frame SUVs to lighter weight, unitized body “crossover” vehicles to improve fuel efficiency and ride comfort. The crossovers don’t provide the same towing capability. But a vehicle like Honda’s half-ton Ridgeline pickup, with its 5,000-pound towing capacity and “unit-body” construction, offers considerable promise. The ability to build unitized-body vehicles, with high towing and tongue capability that at least approaches that of their full-frame truck equivalents, is the “holy grail” of the auto industry, according to Michael Robinet, vice president of global vehicle forecasting at CSM Worldwide, Northville, Mich. “The industry hasn’t done it yet,” he said. But, he thinks that with automakers reducing truck weight through unitized construction and RV manufacturers reducing trailer weight, “there’ll be a meeting in the middle” that will satisfy a high-volume segment of the RV market. And a more limited number of traditional, full-frame trucks will available for those who really need them. “You won’t see trailers or motorhomes go away,” as a result of CAFE, Robinet said. Global Insight sees sales of full-size and smaller SUVs eventually dropping to approximately half their current levels. Diesel engines are expected to reach 2530% penetration, with hybrid engine vehicles — those with gasoline and electric motors — accounting for another 2530% of sales. The cost of such new powertrain technology is tremendous. A key question, as Magliano notes, is whether that cost “will be passed onto consumers or will the technology change and become more economical?” “One saving grace: the industry spent a lot of money on bigger engines. We’re saying, they have to spend an equal amount for better fuel economy,” he said. Meanwhile, Keystone and Jayco said they are continuing to enjoy strong sales, even with today’s fuel prices. Fenech noted there’s a demand for more spacious trailers, as well as for smaller, lighter weight units. And the company is currently working with several product lines to allow more living space, without adding length or weight. Bontrager noted that contrary to what might be expected from higher fuel prices, the company’s sales mix has actually been shifting toward higher-end products, including larger fifth-wheel models. — Joe Bohn 6 009-RVB_0708_LO_TOP 7/20/07 Reality Check 3:07 PM from page 20 at these other industries, the more commonality we noticed — particularly with the motorcycle sector. The challenges faced by a motorsports Page 56 dealer handling Honda, Suzuki, Kawasaki and Polaris are not that different from those of an RV dealer carrying Monaco, Fleetwood, Winnebago and Jayco. Something else about STAR is that it will not “crutch” the weak sisters in our industry. On the contrary, if a manufac- SYSTEMS 2000, CIRCLE 114 ON READER SERVICE CARD Don’t let your CRM system limit your success! Let Systems 2000, Inc. take your dealership to… INFINIT Y Infinity Sales Management System is a powerful sales and marketing tool specifically designed for the dealership industry. 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RVB: Tell us a bit more about the Training Calendar, for which press releases were distributed in June? SHELDON: We’re really stoked about the Training Calendar, an idea which came out of our Industry Training Task Force. It’s an electronic calendar accessible 24/7 through its own website. It will list all training available through RVDA, RVIA, the state associations and the ancillary firms that service our industry. Monitored by a gatekeeper, it will be available to all members of our industry interested in obtaining training for themselves and their people. It will also be made available to all members who wish to publicize their training. In other words, any manufacturer will be able to list all of its training classes in this calendar. In addition, by visiting this website, interested parties will be apprised of other training links such as RVIA’s. RVB: So, all in all, you feel progress is being forged toward an improved level of industrywide quality? SHELDON: Yes, although I feel that we have to be careful that we don’t allow ourselves to get sucked into the misperception of being compared to cars in terms of absolute quality. We build houses on wheels, not cars. We do not follow the manufacturing procedures of car builders, so we should not be held to their standards. Our products are some of the most complex to be found anywhere in the world, with thousands of parts going into each unit. And we all want to do better. Some have said that product quality is the sole responsibility of the manufacturer and, in the free market system in which we operate, the COE agrees. Yet, there are things the Product Quality Task Force is doing to help all manufacturers large and small, such as researching the most common areas of customer dissatisfaction — like roof and plumbing leaks and 12-volt shorts — and publishing best practices on how to attack those problems. By documenting this research and making it available to all members, it is hoped many of these shortcomings can be mitigated by encouraging manufacturers to embrace higher standards. By building and selling less-than-acceptable quality, all of us are hurt as the disgruntled customer who purchases the bad coach throws up his hands and deserts the RV lifestyle forever. 6 AUGUST 2007 .com User Guide Contents 036-RVB_0708_LO_Dealer_Mtg 1:13 PM Page 57 from page 39 continued on page 58 When your business reputation depends on it, you need the brands that deliver. Visit us on the web to find the dealer nearest you. • UNPARALLELED TECHNICAL SUPPORT • MORE THAN 100 YEARS OF COMBINED EXCELLENCE • SUPERIOR CUSTOMER SUPPORT • INDUSTRY’S LARGEST PRODUCT OFFERING www.towingproducts.com Has the tools to make servicing ONAN ® RV GEN SETS easy and low-cost improved replacement controls to fix them right! The Control Circuit Boards Voltage Regulators From the leader in Generator Controls: FLIGHT SYSTEMS 505 Fishing Creek Rd • Lewisberry, PA 17339 Test, Troubleshooting & Service Tools • LOW Prices • 2-Yr. Warranty • Tech. Support w w w. f l i g h t s y s t e m s . c o m • To l l - F r e e : 8 0 0 - 4 0 3 - 3 7 2 8 AUGUST 2007 Go To: .com User Guide RVBusiness 57 Contents DRAW-TITE, HIDDEN-HITCH, REESE, CIRCLE 112 ON READER SERVICE CARD performance. And last March, Coachmen entered into a partnership to research using solar power and biodiesel fuel in RVs. Setting the tone for the gathering, Coachmen’s opening-night product rollout was carried out against a backdrop of smoke machines and spotlights showcasing the 75 units on display. Mike Scheetz, motorized group vice president, said Coachmen had reaffirmed its focus on the Class C market. “The Class C has always been our flagship,” he said. “We’re aggressively producing product to hit key price points with more features than our competitors.” In line with the company’s overall commitment to “thinking green,” Scheetz related that Coachmen had designed a Class C built on the higher-mileage Mercedes Sprinter platform. Motorized offerings debuted in Savannah included: ■ Georgie Boy’s 40-foot Cruise Master, built on the 26,000-pound GVWR Workhorse UFO chassis powered by GM’s Vortec 8.1L V8 rear gasoline engine. The 3740FWS features a fullwall driver-side slideout along with 221⁄2-inch wheels and cockpit door entrance that gives the coach the look of a diesel pusher. Other features include a one-piece windshield, residential-style furniture, 95 cubic feet of passthrough basement storage, a flip-down 32inch LCD television, large double door refrigerator and fully automatic hydraulic leveling jacks. Pricing wasn’t available. ■ Coachmen introduced a rear-lounge floorplan in its Leprechaun Class C lineup, which the company said is an industry exclusive. Built on a 14,050-pound GVWR Ford E-450 Super Duty cutaway chassis, the coach’s rear living area offers a 32-inch LCD TV and a sofa/hide-a-bed with a premium air mattress. Other amenities include a Euro-style island peninsula kitchen, optional dual recliners, cedarlined wardrobe closets and a storage compartment built into the floor. Base MSRP for the 319DL Leprechaun is $95,893. On the towable side, Coachmen pared the number of floorplans while adding features that “distinguish our products in the marketplace.” “This year has been one of the weirdest sales years in my 23-year history,” said Mike Bear, towable group vice president. “With the market up and down, it’s imperative that you build product that has eye appeal. It’s the five-second sale. That’s how long it takes for customers to decide if they want to step into a unit.” Bear said that Coachmen had become “much more agile” in product changes. FLIGHT SYSTEMS, CIRCLE 123 ON READER SERVICE CARD Coachmen 7/19/07 036-RVB_0708_LO_Dealer_Mtg 7/19/07 1:03 PM Page 58 Coachmen KZ RV Rolls Out 2008 Offerings, Fetes Top Dealers at Open House Recreational Vehicles held its “dealer roundup” June 14 at the builder’s complex in Shipshewana, Ind., showcasing the 2008 product line while marking its 35th year of operation. The open house attracted around 100 representatives from the company’s dealer body, according to J. R. Miller, KZ’s highline general manager. “Our dealer partners received the 2008 product with great enthusiasm and are looking forward to introducing it to their customers,” he said. In addition to the product rollout, attendees were given a tour of the towable manufacturer’s facilities, capped off by a banquet honoring KZ’s top 10 dealers. McClain RV in Dallas, Texas, received top honors based on the number of units sold. Randy Graber, vice president of sales, marketing and product development, said the 2008 lineup hits strong price points while building in more amenities led by the Spree line of lightweight travel trailers. “Our new products will have a much better eye appeal and be more competitive, pricewise,” said Graber. “We’re really excited about Spree and its pricing. The Spree has more ‘pop and sizzle’ in the interiors, and we’ve taken some of the weight out of it.” Graber said KZ has consolidated some of its product offerings for 2008, dropping the Jag and Frontier brands and incorporating some of those products' features into other lines. Graber noted that dealer reorders were not as strong as retail due to high inventories and retailers waiting on the new product showing. He added that KZ 58 RVBusiness Go To: orders were strong at the dealer open house. Highlights of KZ’s 2008 product line: ■ In KZ's highline fifth-wheel division, the Montego Bay and the Escalade, KZ’s flagship, offer several new upgrades and floorplans for 2008. The Montego Bay features upgraded residential style furniture, standard Corian countertops and a 30-inch microwave range hood. Montego Bay will continue to offer a partial body paint option as an alternative to the standard graphics. The 2008 Escalade will feature an available full-body paint option that includes color coordinated awnings and accessories. Also new for 2008, the Escalade will feature premium glazed maple cabinetry as a no-charge option. The Escalade Sportster continues as a high-line toy hauler, offering the same amenities as the Escalade fifth-wheel. ■ KZ introduced an updated lightweight Spree travel trailer with maple and cherry interiors in lengths from 21 to 33 feet. All models are towable by a half-ton truck. ■ The Coyote lightweight division totally revamped its product line. New features include radius angle bathrooms, European cabinet doors, radius exterior profiles for improved towing, European lightweight frames and maple cabinet doors. ■ The MXT toy hauler features an edgy exterior paint scheme and plush looking interior. MXT also has a generator tray, optional fuel station and a new double fresh water capacity. — Steve Bibler 6 from page 57 “During the past year, we instituted five generation changes in our Spirit of America line. If a change needs to be made, we can implement it immediately instead of waiting for the traditional model-year introductions.” Towable highlights included: ■ For 2008, Coachmen added a 38foot quad-slide floorplan to its midpriced, laminated Wyoming fifth-wheel lineup, bringing the total to six. All other models offer triple-slide layouts. Marketed as a “big living” fiver, the Wyoming features an 80-inch sofa/hidea-bed and up to 92 cubic feet of passthrough storage space. Features throughout the line include a notched front cap allowing for 90-degree turning radius on most shorter bed pickups, and residential-style interiors with upscale cabinetry. New standard features for 2008 include a 32-inch LCD TV, upgraded suspension system and a king-size bed. Lengths run 37-40 feet with base MSRPs from $43,827 to $50,386. ■ Coachmen RV extended its line of Blast lightweight sport utility recreational vehicles (SURV) with the Blast MPH 210 and 210 Power Plus. Coachmen touts the line, which is part of the company’s Adrenaline division built in Fitzgerald, Ga., as one of the lightest and most affordable “multi-purpose” toy haulers in the marketplace with units ranging from 15-21 feet in length (Aframe not included) and base weights from 3,400-5,000 pounds. The two new 21-footers introduced in Savannah offer optional dual electric queen beds, a fully equipped kitchen with black appliances and furniture that folds against the walls; the 210 Power Plus adds a 13,500 BTU air conditioner and standard fiberglass sidewalls versus wood-and-aluminum construction. Base MSRPs range from $12,782 to $15,113 with the 210 Power Plus starting at $20,293. — Dave Barbulesco 6 Coachmen added a sixth floorplan to its Wyoming fifth-wheel line, with four slideouts. AUGUST 2007 .com User Guide Contents 003-RVB0708 CV3 TRAILMANOR 7/19/07 2:58 PM Page CV3 “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 118 ON READER SERVICE CARD Go To: .com User Guide Contents 004-RVB0708 PG. CV4 GE COM 7/19/07 2:59 PM Page CV4 Driving Growth Our goal is to help drive growth for your dealership, no matter what the future may look like. At GE, we’ll tailor financing programs so you can maximize cash flow, stock more units and increase your sales. Our financing solutions include: > inventory financing > consumer financing > business credit cards > equipment financing > real estate financing To find out how to offer consumer financing, please call 866-838-0654. To learn more about our inventory and other financing programs, call us today at (800) 289-4488 or visit us online at www.ge.com/cdf. Proud Supporters of GE, CIRCLE 127 ON READER SERVICE CARD Go To: .com User Guide 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 To: .com User Guide 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]