001-RVB_0705_FrntCover
Transcription
001-RVB_0705_FrntCover
001-RVB_0705_FrntCover 4/18/07 4:19 PM Page 1 RVBUSINESS.com VOLUME 58, NUMBER 2, MAY 2007 © FCCC executives Bob Harbin, Tony Sippel and Dean Schaper Go To: .com User Guide Contents 002-RVB05 PG CV2 MONACO 4/16/07 9:59 PM Page CV2 John Nepute Kay Toolson PRESIDENT CHAIRMAN AND CEO “Only Roadmaster delivers a ride this smooth. And you’ll only find Roadmaster chassis under our brands.” THE DIFFERENCE IS OUR FOUNDATION. Take a test drive, and the Roadmaster difference is clear. Your customers will be amazed by the sure-footed handling and smooth ride. The secret is Roadmaster’s unique Cushion Air Glide suspension system combined with our exclusive SmartStructure integrated steel truss engineering. Together they create a ride unlike any other motorhome. And you will only find it under a Monaco Coach Corporation brand. Monaco Coach Corporation brands are recognized for luxury, comfort and cutting edge design. But without a solid foundation like a Roadmaster chassis, none of that would matter. That’s why every Monaco Coach Corporation diesel motorhome like our Safari, Holiday Rambler, Monaco, and Beaver brands is built on its own special and unique Roadmaster design. This is truly a feature that you won’t find anywhere else, from any other manufacturer. Roadmaster’s mission is a commitment to only building luxury diesel motorhome chassis for Monaco Coach Corporation. Roadmaster is the most reliable, and most experienced chassis builder in our industry. Show your customers the Roadmaster difference with a test drive today. ® www.monacodifferent.com . 877-252-4666 91320 Coburg Industrial Way, Coburg, OR 97408 . 606 Nelson’s Parkway, Wakarusa, IN 46573 © 2007, MONACO COACH CORPORATION Monaco Coach Corporation is traded on the NYSE under the listing MNC. MONACO. DIFFERENT. MONACO COACH CORPORATION, CIRCLE 114 ON READER SERVICE CARD Go To: .com User Guide Contents 003-RVB_0705_LO_TOC 4/19/07 1:44 PM Page 3 VOLUME 58, NUMBER 2, MAY 2007 © 19 DEPARTMENTS 4 15 47 50 55 56 26 TOP OF THE NEWS 7 7 7 8 10 10 12 14 14 RPTIA Opposes RVIA Initiative to Expand Trailer Dimensions Airstream Recognized as Cultural Icon by New York MoMA FreedomRoads to Acquire AGI’s Camping World RV Stores Tiffin, Weekend Warrior Notch Big Gains in ’06 Market Share New RV/MH Hall of Fame Welcomes Visitors in ‘Soft Opening’ RVB Poll: FEMA Sell-Off Will Have Adverse Impact on Industry Opinion: Will Chinese-Built RVs Wreak Havoc Stateside? KOA Adds Parks in California, Virginia to Company Portfolio Camping World Adds New Stores, Internet Banking Services FEATURES 19 26 200 Industry Leaders Attend Inaugural AGI Campground Expo New Coaches, Components on Display at FMCA Convention COVER STORY 21 Freightliner Streamlines Manufacturing, Maintains Diesel Lead OEM SHOWCASE 38 Frontier RV Adds Satellite Manufacturing Plant, New Towables Q&A 34 Coachmen CEO Richard Lavers’ Culture-Changing Crusade BUSINESS PROFILE 45 Colibert Enterprises Connects with Fifth-Wheel Hitch Lineup State of the Art In Brief Public Domain Ad Index Retail Trends Classifieds THIS PAGE: Coachmen’s Sportscoach division unveiled a supplemental hydrogen hybrid fuel system at the Georgia FMCA convention that the company claims will increase power and fuel economy (page 26). Inaugural AGI RV Resort and Campground Conference & Expo drew more than 200 industry leaders to Las Vegas in early March (page 19). COVER: Freightliner Custom Chassis Corp. (FCCC) has weathered recent changes well — including the loss of Sprinter commercial van construction from its Gaffney manufacturing plant — and the company continues to reign as the industry leader in diesel chassis sales. Under the leadership of Bob Harbin, who took over as company president last October, FCCC has implemented new quality control and lean-manufacturing processes intended to help maintain its lead role. Photo by Rick Haithcox. 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. MAY 2007 Go To: .com User Guide RVBusiness Contents 3 004-RVB_0705_LO_State of A 4/19/07 4:28 PM STATE OF THE ART Page 4 BY SHERMAN GOLDENBERG STAFF Sherman Goldenberg Bruce Hampson WEB EDITOR Dave Barbulesco ART DIRECTOR Steven Averill SENIOR EDITOR Bob Ashley EDITOR AT LARGE Jeff Crider COPY EDITOR Steve Bibler PHOTOGRAPHY DIRECTOR Shawn Spence CONTRIBUTING TECHNICAL EDITOR Chris Hemer PRODUCTION DIRECTOR Bob Dawson VP/RV TRADE PUBLICATIONS EDITOR Airstreams, Sarbanes, KOA & Van Campers H ere we are again, with the clock running down on another RV Business deadline and Editor Bruce Hampson and Art Director Steve Averill anxiously awaiting the completion of another late monthly column. Fear not, though, because I’ve got a couple of editorial aces up my sleeve — in this case, a few observations I’d like to make regarding business- and non-business-related topics. For instance: • What a neat thing it is for the Museum of Modern Art to have inducted a recreational vehicle, a diminutive 1963 Airstream Bambi (see page 7), into its permanent collection. I mean, for a product category like ours that is rarely if ever appreciated for its grace and style, this was quite an honor, and I was flattered to have been invited to attend the Bambi’s induction ceremony. • We’ve often heard about how cumbersome and expensive it is for publicly held companies to meet federal Sarbanes-Oxley reporting rules, and we were reminded of all that a few weeks ago when contributor Steve Bibler interviewed Rick Lavers, the new president and CEO of Coachmen Industries Inc. (see page 34). Calling it “extraordinarily” expensive for a company Coachmen’s size, Lavers said it costs Coachmen about $3 million a year — all things included. • A lot of people in the recreational-vehicle sector visit RVBUSINESS.com at least once a day — if not more often — to keep up with industry news, and most don’t realize just how busy that website is for a narrow slice of the American business pie like ours. In case you wondered, a traffic analysis indicates that we average 1,140 visits per day, 760 unique visitors per day, 34,704 visits per month. The busiest time: Tuesday mornings. • Soaring land values are quickly changing the accommodations end of the RV business. For example, the seasonal residents of a small Florida trailer-park town recently voted to sell out to a housing developer for more than $510 million. And why wouldn’t they, considering that they originally purchased their properties for as little as $35,000 and most of them will become millionaires as a result of the sale? Equally noteworthy was the recent sale by Kampgrounds of America Inc. to a developer of a marquee property in the Florida Keys for more than $53 million — the revenues from which have spawned a buying spree by the Montana-based campground franchiser. The upside in all of this is obvious. But the downside in general is that campground site counts are dropping in popular resort areas around the country. • While some RV categories have been turning in lackluster sales growth numbers lately, reader Dean Rumpel reminds us of how well van campers — also known as Class B motorhomes — have been doing lately and how little we have endeavored to point that out in the pages of RV Business. Indeed, shipments of van campers on Ford, Chevrolet and Mercedes chassis were up 75% — from 400 to 700 units — for the first two months of the year. We’ll try to pay more attention in the future. • Has it occurred to you just how deeply ingrained the Latino labor force is in our society at this point and just how difficult and damaging it would be to unilaterally remove these people from our service shops and factory floors? I mean, chances are that all of our businesses would feel the pain and that, like the state of Colorado, we would all have to take a good look at hiring prisoners before all was said and done. Yes, indeed, I advocate an accommodation of some nature that preserves the integrity of our borders while maintaining the dignity of this latest wave of American immigrants. 6 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 TL ENTERPRISES INC. Stephen Adams Michael Schneider SENIOR VP/CFO Tom Wolfe CHAIRMAN PRESIDENT & CEO VP/PUBLISHER/ RV CONSUMER & TRADE PUBLICATIONS VP/CONTROLLER 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 Go To: RVBusiness MAY 2007 .com User Guide Bob Livingston Dale Hendrix Contents 005-RVB05 PG 5 GE EXTENDED 4/16/07 10:10 PM Page 5 GE MONEY, CIRCLE 141 ON READER SERVICE CARD Go To: .com User Guide Contents 006-RVB05 PG 6 GIRARD 4/16/07 10:10 PM Page 6 WHEN IT COMES TO SHADE MANAGEMENT, WE’VE GOT YOU Girard Systems Combining tomorrow’s technology with today’s best quality and service There’s a reason why more RV manufacturers choose Girard awnings over any other brand: better quality, superior service and a limited lifetime warranty. Girard makes a variety of superior RV products and accessories, and is continually developing new comfort and convenience products to provide our customers with the ultimate in weather protection. Here are a few good reasons to get covered by Girard: AUTO MATI C! G-2000 PATIO AWNING Girard was the first in the industry to develop an automatic lateral arm retractable awning. Reliable, versatile & weather protected, the G-2000 has up to 3-lateral arms for superior strength. Easy pitch adjustment (from 5º to 35º) prevents water build-up during heavy rain. Up to 4 awnings can be roof-mounted creating a seamless integration that hides all other rooftop equipment. AUTO MATI C! G-1500 DOOR AWNING G-2085 WINDOW AWNING With more projection than any other window awning, it extends to a maximum 90º angle, providing complete privacy. Strongest & most durable in the industry. Wall switch with optional remote control for automatic operation. G-5000 SLIDE-OUT AWNING See Girard’s full line at your local dealer or go on-line at: www.girardrv.com ACS System 1361 Calle Avanzado, San Clemente, CA 92673 Toll Free: 800.382.8442 Fax: 949.276.5500 NEW! Girard’s Awning Control System offers worry free fully automatic weather protection GIRARD SYSTEMS, CIRCLE 163 ON READER SERVICE CARD Go To: NEW! New & better than ever, the G-5000 is mounted on the coach, not the extending slide room, providing more pitch than any slide-out awning on the market. This ensures smoother & tighter fabric while preventing water buildup over the room. A built-in brush self-cleans debris from the awning while retracting, completely protecting fabric & eliminating billowing during transit. A perfect complement to the G-2000 Patio Awning, the G-1500 is fully automatic, providing shade & rain protection at the touch of a button. Practical & attractive, especially when installed with decorative farings. GIRARD SYSTEMS The Future Is Today AUTO MATI C! .com User Guide Contents 007-RVB_0705_LO_TOP 4/19/07 1:25 PM Page 7 RPTIA Opposes RVIA Initiative To Expand Trailer Dimensions of the NEWS ARVC Supports Development of a National Tourism Strategy, Cites Decline in U.S. Visitors The National Association of RV Parks and Campgrounds (ARVC) has twice submitted comments recently to the U. S. Department of Commerce regarding the department’s development of a national tourism strategy. In Feb. 9 comments, ARVC urged that the federal government support efforts to reverse the declining U.S. share of the global tourism market. ARVC criticized unnecessary bureaucratic barriers that confront international visitors and suggest to the world that citizens of other countries are likely to be hassled — if not prevented — from visiting the United States. ARVC expressed special concontinued on page 42 Winter Texans Vexed Over ‘Double Taxation’ Of On-Site Park Models As the season came to a close, Winter Texans made one last appeal to local authorities concerning so-called double taxation laws, according to a report in The Monitor of McAllen. On March 5, protesters vented their frustration and anger over Hidalgo County’s tax policies toward their RVs in the area’s 60 RV parks. There was nothing official about the meeting, which had been suggested as an informational session by county Commissioner Oscar L. Garza Jr. Nonetheless, the gathering was held before key county tax officials. In Hidalgo County alone, Garza reported, there is about $48 million in RVs and related property that is continued on page 53 Critics Believes Changes Would Blur the Line Between Park Models and Over-the Road RVs The Recreation Vehicle Industry Association’s (RVIA) plan to increase the maximum square footage for travel trailers and fifth-wheels could take years, if ever, to complete. And that initiative, launched at the national trade association’s February annual meeting, apparently doesn’t sit well with the Recreation Park Trailer Industry Association (RPTIA). While RVIA members say that the proliferation of large slideouts in travel trailers and fifth-wheels should allow towables to house more square footage than current limits, RPTIA claims the changes would blur the line between over-the-road RVs and so-called “park models” that typically are more sedentary once sited. “My executive committee has indicated that we probably will do everything we possibly can to stop this,” said Bill Garpow, executive director of the Newnan, Ga.-based Airstream Recognized as Cultural Icon by New York Museum of Modern Art Restored 1963 Bambi Travel Trailer On Display in Museum’s Main Lobby The Museum of Modern Art (MoMA) in New York City marked the acquisition of a restored 1963 Airstream Bambi travel trailer into its design collection during an April 12 ceremony attended by company officials and noted design aficionados. The Bambi, first produced in 1960, was chosen after a lengthy review process as representative of the 76-year-old Airstream’s well-known visage. “As a cultural icon, the Bambi evokes the freedom of the open road and the convenience and comfort of a home on wheels,” noted MoMA in its display literature. “With its aerodynamic body of gleaming aluminum, the Bambi is a machine for living and traveling.” The 16-foot Bambi joins six others vehicles — all design statements in themselves — in MoMA’s collection: a 1946 Cisitalia “202” GT sportster, a 1953 continued on page 49 Fifth-wheels are currently limited to 400 square feet of floorspace; an increase would require federal intervention. RPTIA. “We don’t think this is in our best interest or in the industry’s best interest.” The RPTIA represents recreational parktrailer manufacturers, an industry segment coming off its strongest year in the 21-year history of the park-model business. Manufacturers last year built 10,141 units. At its Feb. 24 meeting in Scottsdale, Ariz., the RVIA board directed staff to begin what could be a lengthy process to increase the allowable size of travel trailers from 320 to 400 square feet, and to allow fifth-wheels to exceed by an unspecified amount their current limit of 400 square feet. Motorhome builders currently face no such limitations. continued on page 42 FreedomRoads to Acquire Camping World RV Stores Affinity Group Inc. (AGI) has announced plans to sell its Camping World Inc. subsidiary to FreedomRoads Holding Company LLC, a Chicago area-based national RV dealer network. In a filing with the Securities and Exchange Commission (SEC), AGI said it entered into a stock purchase agreement on April 16 with FreedomRoads. The agreement calls for the sale within the next 60 days of all of Camping World’s outstanding stock to FreedomRoads for $175.8 million. All three companies are controlled by businessman Steve Adams. The sale is an extension of a “joint venture” through which Camping World has co-located stores with numerous FreedomRoads-affiliated dealerships throughout the country. As part of that joint venture relationship, FreedomRoads has been managing the joint efforts of FreedomRoads and Camping World for more than a year. Camping World, a specialty retailer of merchandise and services for RV owners, currently operates 71 locations in 26 states. Of those stores, 38 are alongside or within FreedomRoads dealerships and 32 are leased from FreedomRoads. The nation’s largest wholly owned RV dealer network, FreedomRoads operates retail stores at 58 locations in 22 states. 6 MAY 2007 Go To: .com User Guide RVBusiness Contents 7 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:20 PM Page 8 TOP OF THE NEWS Tiffin, Weekend Warrior Good Sam RV Council Notch Big Gains in ‘06 Identifies Key Issues Thor Dominates Towable, Park Model Segments in Annual Market Share Rankings by Statistical Surveys, Inc.; Winnebago Continues Reign Atop Motorized Market A tested retail maxim came into play for motorhome manufacturers in 2006 as several factors continued to depress demand. “In a soft market, the smart builders concentrate on gaining market share,” said Tom Walworth, president of Grand Rapids, Mich.-based marketing firm Statistical Surveys Inc., which tracks the RV retail market. “They develop product that creates higher demand for their units. Then when the market comes back, they can ride on that advantage.” The motorhome sector showed a 9.9% decline in unit sales for the year — and that was stacked up against a relatively soft 2005. A 13.1% plunge in Class A registrations weighed down year-end totals while the Class C sector retreated 3.8%. Walworth said the Class A market did show some signs of bottoming out and then gaining some momentum late in the year. Walworth noted that the sale of motorhomes related to hurricane relief in the latter part of 2005 could have affected numbers slightly. But that factor had a deep impact on the towable side, which showed a 2.1% drop in retail sales from 2005 totals. “A couple of things happened,” Walworth said. “After Katrina hit, FEMA was buying product right off of dealers’ lots. And then dealers had to replace that inventory. It really distorted the trailer numbers. “That said, being down just 2.1% wasn’t too bad. All in all, towables experienced a good 2006.” continued on page 54 Market Share % 19% 16.3% 14.1% 11% 8% 5.7% 5.5% 5.1% 4.6% 3.4% The RVOC was formed in December 2006 to evaluate and make recommendations to Good Sam management regarding RV-related issues of major concern to the million-member club. The poll asked respondents to weigh in on nine specific topics. Results, ranked from first to ninth, include: • Quality of RV manufacturing (98%) • Availability of competent RV service (93%) • Existence of adequate lemon law protection (87%) • High fuel costs (86%) • Protection from local parking ordinances (79%) • Availability of suitable commercial RV parks (65%) 2006 Top 10 Motorized OEM Winnebago Industries Inc. Fleetwood Enterprises Inc. Thor Industries Inc. Monaco Coach Corp. Coachmen Industries Inc. Forest River Inc. Gulf Stream Coach Inc. Tiffin Motor Homes Inc. National RV Inc. Jayco Inc. The Good Sam Club’s RV Owners’ Advisory Council (RVOAC) recently completed a survey that identifies and ranks issues of importance to the club’s membership for the first time. Change from 2005 5.9% 6.8% 12.5% -14.5% -15.8% 22.6% 4% 32.9% 0.0% 8.6% • Federal access user fees (80% retained by federal facility) (63%) • Decreased availability/high cost of RV storage yards (52%) • Uniform state special RV drivers licensing (33%) “Most notably, the rather startling result is the 1-2-3 place finish of RV quality, RV service, and lemon laws,” said Tom continued on page 54 2006 Top 10 Towables OEM Thor Industries Inc. Forest River Inc. Fleetwood Enterprises Inc. Jayco Inc. Monaco Coach Corp. Weekend Warrior Trailers Inc. Coachmen Industries Inc. K-Z Inc. Starcraft RV Inc. Skyline Corp. Market Share % 29% 16.1% 9.6% 9.1% 4% 3.1% 2.8% 2.8% 2.6% 2.4% Change from 2005 4.2% 0.5% -14.6% 2.6% -8.1% 19.2% -27.4% 4.9% 10% -13.1% 2006 Top 10 Recreational Park Trailers OEM Thor Industries Inc. Skyline Corp. Chariot Eagle Inc. Cavco Industries Inc. Forest River Inc. Woodland Park DNA Enterprises Inc. Athens Park Homes LLC Kropf Manufacturing Co. Inc. Trophy Traveler 8 Go To: RVBusiness Market Share % 22.5% 15.2% 11.2% 8.3% 4.7% 4.3% 4.1% 3.6% 3.5% 3.1% Change from 2005 -12.6% -16.1% -12.3% 19.3% 0.0% 40.5% 2.3% 244.8% -4.6% -20.4% Teton Homes Appoints Chris Braun as CEO High-end fifthwheel manufacturer Teton Homes, Casper, Wyo., hired former Fleetwood Enterpri ses Inc. executive Chris Braun as CEO, effective April 9th. Braun most recently served as executive vice president of Fleetwood’s RV Group, overseeing the Riverside, Calif.based company’s folding camping trailer, travel trailer and motorhome divisions. Prior to Fleetwood, Braun logged over 20 years in the manufacturing sector, the majority with PACCAR, a builder of Kenworth and Peterbilt Class 8 trucks. While at PACCAR, he held a variety of senior management positions in the areas of sales and marketing, plant operations and finance. Teton was founded in 1967 by Robert “Boots” Ingram. In May 2005, Boston-based Webster Capital bought a majority interest in the company, which was then headed by Ingram’s son, Tony. 6 MAY 2007 .com User Guide Contents 009-RVB05 PG 9 FREIGHTLINE 4/16/07 10:09 PM Page 9 TURNING IT UP, AGAIN. Introducing another industry first by Freightliner Custom Chassis. We’ve done it. Freightliner Custom Chassis’ new independent front suspension by ZF®, with an industry-leading 60-degree wheel cut, enables you to maneuver like you’ve never thought possible. Why? It’s about negotiating those tighter spaces and tighter turns; about having more controlled confidence at the wheel; about expanding the limits of where you go and how you get there. So don’t be afraid of the road ahead…take on the world one turn at a time with Freightliner Custom Chassis, The Leader at Every Turn. 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 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:20 PM Page 10 TOP OF THE NEWS New RV/MH Hall of Fame Welcomes Visitors Low-Key Curtain-Raiser Will Allow Heritage Foundation to Fine-Tune Displays before Grand Opening in August The new RV/MH Hall of Fame/ Museum adjacent to the Indiana Toll Road in Elkhart County, Ind., opened to the public for the first time March 26 in advance of the official opening scheduled for Aug. 5, the day before the RV/MH Heritage Foundation Inc.’s 2007 Hall of Fame induction dinner. “The first week went absolutely wonderfully,” said foundation spokesman Al Hasselbart. “We had RV travelers, local people and two bus groups. Finally, we are doing what we said we were going to do: Show off the industry to everybody and anybody.” Don Walter, president of Starcraft RV (left) and Tom Stinnett, Included in the new president of Tom Stinnett RV Freedom Center, were instrumental in the development of the Go RVing pavilion. facility is the Go RVing pavilion that will feature interactive kiosks, a continuously run- pusher motorhomes. A supplier exhibit hall has yet to be ning Go RVing video, campgroundand RV-dealer locators and a repre- occupied, and construction will follow sentative sampling of new RVs from on a wing of the museum to house RV continued on page 53 folding camping trailers to diesel- RVBUSINESS.com INDUSTRY poll RVB POLL: FEMA Sell-Off Will Impact Industry Majority of Respondents Believe Ongoing Government Sales Will Deplete ‘Buying Pool’ – and Perhaps Damage Industry’s Reputation A clear majority of respondents in the latest RVBUSINESS.com Industry Poll is convinced that the auctioning off of surplus trailers by the Federal Emergency Management Agency (FEMA) will have an adverse effect on industry sales. Although the repercussions from the sell-off are still a matter of speculation, 78% of the those polled by RVB feel the ongoing, online sales will deplete the buying pool. Respondents said that the auctioning off of FEMA units — all purchased, and many actually used, for hurricane relief efforts — would have a detrimental impact on industry sales. “It is going to hurt the industry for as much as 12-18 months as our customers purchase them instead of new or used RVs through a dealer,” said an RV retailer. “It will take them off the market. Also, the buyers will try to trade them as ‘regular’ units — making it a nightmare for the dealers to decipher and making customers angry when they take the unit to the dealer and then the deal falls apart when the dealer finds it is not the correct unit.” That outlook was also reflected when poll participants were asked whether there were any potential benefits for the industry from the government auctions, particularly as a source for used inventory by dealers. Again, 67% felt that the surplus would damage both the industry’s bottom line and, possibly, its reputation among consumers. “I think it will flood the market with too many RVs that have not been maintained or checked on since they were built,” stated a member of the continued on page 16 Spartan Chassis Buys Manufacturing Plants Spartan Chassis Inc., a subsidiary of Spartan Motors Inc., announced April 9 it bought two manufacturing facilities near its headquarters in Charlotte, Mich., to meet demand from its military customers to supply chassis for a key military vehicle. The facilities, which total 80,000 sq-ft, will help build chassis components for the Mine Resistant Ambush Protected (MRAP) vehicles, while also creating capacity at Spartan’s other 10 Go To: RVBusiness facilities for motorhome- and fire truck-chassis production. A joint-military program led by the U.S. Marine Corps is seeking to double the size of its new armored vehicle program to meet short-term combat needs. The Marines and Army want to buy 7,774 MRAP vehicles, expected to cost $8.4 billion. Spartan Chassis, which makes frames and components for vehicles, said it will spend $8 million to purchase and renovate the two plants. 6 American Firm Recruiting Canadian Drivers for RV Deliveries to Alberta Thriving Economy of NW Province Outpacing U.S. R.V. Transport’s Ability to Ship Units. “I could use another 500 drivers today,” noted a company manager. U.S. R.V. Transport fielded an estimated 200 calls on April 9 in response to its plea for Canadian drivers to deliver travel trailers and fifth-wheels to Alberta, Canada. The Wakarusa, Ind.-based RV transporter began placing the ads in Alberta media to try to catch up on its backlog of deliveries. It has shipped about 1,000 RVs yearly to Alberta during the past five to six years but expects to far exceed that this year. “In reality I waited beyond what I should have,” Bill Goodwin, national sales manager, said in April. “I needed these drivers three to four weeks ago. I kept thinking we could manage our business but it kept coming faster than I could manage.” “I could use another 500 drivers today,” Goodwin said, based on backlogged deliveries waiting at depots in Wakarusa, Peru, Ind., and Dallas, Ore. Alberta’s vibrant economy is the hottest in Canada and has fueled the demand for RVs. The province’s economic output grew by 7% last year (highest in the country) and average unemployment was the lowest in Canada at 3.4%. Shale oil exploration and recovery in Alberta account for much of the current growth, which in turns spills over to the entire economy. A half-million new jobs were continued on page 57 MAY 2007 .com User Guide Contents 011-RVB05 PG 11 COUNTRY CO 4/16/07 10:09 PM Page 11 ÌÀ`ÕV}Ê> ÕÌÀÞÊ >V ÊvÀÊÌ i Î{Ê9i>Àà UÊ*ÀÛ>ÌiÞÊi` UÊ"iÊÀi>Ê>ÌÊ>Ê/itÊ UÊ`i«i`iÌÞÊ"«iÀ>Ìi` UÊ >ÀivÕÞÊi`i`ÊÛ>ÌÊ UÊVÕÃi`Ê"Ê"ÕÀÊÃÃ\Ê /ÊiÃ}Ê>`ÊÕ`Ê / iÊ7À`½ÃÊiÃÌ UÊ ÕÌÌ}`}iÊ/iV }Þ°Ê "`7À`Ê À>vÌÃ>à « >ÞÊÜ>À` *ÀiÃ`iÌÊEÊ " ÃVÛiÀÊ/`>Þ½ÃÊ ÕÌÀÞÊ >V ÊqÊ / iÊ7À`½ÃÊiÃÌÊÌÀV>V ið LÊii Õ`iÀÊ>`Ê >À>ÊiÀÌÕà *°"°ÊÝÊ{ääÊUÊÕVÌÊ ÌÞ]Ê",ÊÊÇ{{nÊUÊnää°Èx{°äÓÓÎÊUÊÜÜÜ°VÕÌÀÞV>V °VÉÀLxÇÌÊ 4RIBUTE)NSPIRE!LLURE3ERIES)NTRIGUE-AGNA!FlNITY#USTOM2HAPSODY#OUNTRY#OACH0REVOST#ONVERSION Go To: .com User Guide Contents 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:21 PM Page 12 TOP OF THE NEWS Diesel Chassis Joint Venture to Benefit Monaco, International Companies Will Share Engineering and Manufacturing Facilities, But Maintain Separate Support Operations Workhorse R-series diesel chassis will now be built by Custom Chassis Products LLC at Monaco plant in Elkhart. As part of a new joint venture, Monaco Coach Corp. and International Truck Corp.’s Workhorse Custom Chassis LLC subsidiary will share engineering and manufacturing facilities to build diesel chassis in Elkhart, Ind. But executives for both companies indicate that the two will keep separate sales, marketing, financing and customer service operations for Monaco’s proprietary Roadmaster and Workhorse’s R-series diesel pusher chassis. “The joint venture is principally a manufacturing arrangement,” said David Olson, president of Union City, Ind.-based Workhorse. “It will produce product and only have two customers — Monaco Coach, which will buy the Roadmaster chassis, and Workhorse, which will purchase the R-series as well as the LF 72 low-floor bus chassis. Nothing comes into play relative to Workhorse’s gas portfolio or the UFO (gas pusher) chassis that will have a diesel version coming up shortly.” Monaco and International, the operating company of Navistar International Corp. — whose chairman, Daniel Ustain, is a member continued on page 51 Blue Bird Redesigns, Lengthens Wanderlodge Production is expected to begin in June on the redesigned Blue Bird Wanderlodge from Blue Bird Coachworks Inc., Fort Valley, Ga. The 2008 Wanderlodge, designed with revamped front and rear profiles, side-swinging cargo doors and a new exterior lighting package, will be built on Blue Bird's proprietary 54,000-pound GVWR bus chassis equipped with a 625-hp Cummins ISX diesel pusher engine and will be 15 inches longer than its predecessors. “We are stretching the body out to a full 45 feet, which allows us to do some interesting things with the bathroom configurations and also provide more closet space,” said Fred Vandenberg, director of motorhome sales and marketing. Each coach will be custom built — including floorplans, slideouts and interior amenities. “It makes it a little more difficult to build, but each coach is basically a clean sheet of paper for each customer,'' Vandenberg said. Retail prices are expected to start at $745,000. 6 12 Go To: RVBusiness Chinese-Built RVs Enjoy Dual Advantages of Low Tariffs and Cheap Labor — Is This a Recipe for Disaster? Recreational vehicles made in China are the biggest threat to the RV industry in its history. I have been forming an alliance with North American RV manufacturers and also contacting the Recreation Vehicle Industry Association (RVIA), governors, senators and congressmen to gain influence to hopefully raise the tariffs on Chinese RVs. Currently, if we send an RV to China the tariff rate is more than 25%. However, when they ship an RV to America the tariff is 2.5%. That, coupled with one-dollar-a-day wages, is a recipe for disaster. As an industry we need to do anything we can to slow the invasion, as it will put many U.S. RV manufacturers at risk. continued on page 55 along with a service and collision center. Marcus Lemonis, CEO of FreedomRoads and Camping World noted: “With this new facility we add to our very strong position in the Carolinas with about 30% share in the RV market, which is formidable. We’re very pleased to have this new combined facility, which has it all for RV enthusiasts. We know that the loyal Sonny’s customer base, which has been built over 30 years, is excited to benefit from the expansion and transformation.” 6 Supplier Patrick Industries Inc. announced April 11 that it will acquire Adorn LLC, a manufacturer and supplier of interior components to the recreational vehicle and manufactured-housing industries. Both companies are based in Elkhart, Ind. Adorn, a privately-held company that posted approximately $240 million in continued on page 57 MAY 2007 .com Rex Willett Supplier Patrick Industries to Acquire Adorn FreedomRoads Dealer Network Adds Sonny’s Camp-N-Travel National RV dealer network FreedomRoads LLC announced April 12 that it acquired Sonny’s CampN-Travel in Charleston, S.C., and re-branded the dealership as Camping World RV Sales. As part of the acquisition, a new co-located Camping World retail outlet opened, raising the number of stores for the Bowling Green, Ky.-based company in excess of 70. Located in North Charleston, the new 45,000square-foot complex includes a full lineup of RVs OPINION Leveling The Playing Field User Guide Contents 013-RVB05 PG 13 KEY CORP 4/16/07 10:08 PM Page 13 !SINGLESOURCE-ANYFINANCINGOPTIONS +EY2ECREATION,ENDINGTAKESTHETIMETOUNDERSTANDYOUR DEALERSHIPSBUSINESS7ITHOVERYEARSOFEXPERIENCEINTHE RECREATIONLENDINGINDUSTRY+EYPRIDESITSELFONDELIVERINGHIGHQUALITY RESPONSIVESERVICETHROUGHKNOWLEDGEABLEPROFESSIONALS$EALERS HAVEACCESSTOAWIDERANGEOFFINANCIALOPTIONSINCLUDING s.EWANDUSEDINVENTORYFINANCING s%QUIPMENTFINANCINGLEASING s7ORKINGCAPITALLOANS s2EALESTATEFINANCING s4REASURYMANAGEMENTPROGRAMS s2ETAILFINANCINGPROGRAMS &ORMOREINFORMATIONPLEASECALLORVISIT WWW+EYCOMKRLDEALER !CHIEVEANYTHING +EY2ECREATION,ENDING KEYCORP, CIRCLE 135 ON READER SERVICE CARD !LLLOANSSUBJECTTOCREDITAPPROVAL Go To: .com User Guide ¥+EY#ORP Contents 007-RVB_0705_LO_TOP 4/19/07 1:27 PM Page 14 TOP OF THE NEWS KOA Expands CompanyOwned RV Park Portfolio Campground Operator Adds Resorts in Virginia And California, Will Operate Boomtown at Reno Casino In the latest in a series of expansion moves, Billings, Mont.-based Kampgrounds of America (KOA) has purchased two new properties, a Virginia Beach, Va., KOA park that has been operating as a KOA fran- chised park since 1970, plus the entire Tower Park Resort and Marina complex in Lodi, California. Additionally, KOA has entered into an agreement with the Boomtown Casino and Hotel Reno to operate Boomtown’s RV park just outside Reno, Nev. The Virginia Beach KOA, located in south Virginia Beach just 21⁄2 miles Amenities at Virginia Beach KOA make the coastal campground a favorite among families. from Atlantic Ocean beaches, is one of KOA’s largest parks, with nearly 400 campsites situated on 128 acres. “The Virginia Beach KOA is a beautiful campground, and it fits well into the family of KOA companyowned facilities,” said Scott Cory, vice president of KOA’s Company Operated Properties Division. “We continued on page 43 Camping World Launches New Supercenter Outlets, Partners with Bank of Internet USA Komfort Corp.’s John Attila (left) and Manuel Caravia. Komfort’s Founder Retires After 40 Years John Attila to Succeed Manuel Caravia as Company President Komfort Corp., a subsidiary of Thor Industries Inc., recently announced that its founder and current president, Manuel A. Caravia, retired from the company effective March 31. The Clackamas, Ore.-based towable builder said John Attila, vice president of sales and marketing, assumed the position of company president. “John Attila is exceptionally capable and has an outstanding reputation,” said Dicky Riegel, Thor group president. “He has demonstrated his depth of talents since he joined the company one year ago, and he will bring a renewed focus to Komfort’s products and dealer network to continue the company’s record of success.” Caravia co-founded Clackamas, Ore.-based Komfort Corp. in 1967. In the successive 40 years, the company earned a reputation as a quality builder and a leader in the Western U.S. and Canadian travel trailer and fifth-wheel markets. Jackson Center, Ohiobased Thor acquired Komfort Corp. in 1995. “For more than 40 years, Komfort has been driven by the passion and stewardship of Manuel Caravia,” said Wade F.B. Thompson, Thor chairman and CEO. “Thor Industries has been fortunate to have had Manuel leading one of its companies, and we wish him health and happiness in his retirement.” 6 14 Go To: RVBusiness Camping World Inc. announced the openings of three new supercenters in Michigan, New Jersey and Oregon in early April. The recreational vehicle parts and accessories retailer also recently launched with Bank of Internet USA a five-year marketing agreement to offer deposit and loan products to RV customers online. The new website, RVBank.com, will operate as a branch of Bank of Internet USA. Effective April 1, RVBank serves Camping World customers by offering online FDIC-insured bank deposits and loans nationwide with the same rates and fees as Bank of Internet USA. The site offers all RVBank products including checking accounts, bill pay, certificates of deposits, mortgage loans and home equity loans through one office with 24/7 access. “RVBank is just another example of how our organization brings needed services and attractive offers to our customers,” said Marcus Lemonis, chairman and CEO of Bowling Green, Ky.-based Camping World. “The growth in online banking matches the needs of our increasingly mobile customers. Our customers will save time and money by letting RVBank take care of their banking needs.” Camping World, again, launched three new supercenters during the first week in April, each co-located with existing RV dealerships. Two of the stores occupy 4,000 square feet alongside FreedomRoads member dealerships — a Meyer’s RV superstore in Lakewood, N.J. and Olinger Travel Homes in Wood Village, Ore. — while the third is a 4,600-square-foot location colocated with Grand Rapids, Mich., dealer American RV. “Having a Camping World with us is a very big plus in that the partnership will allow American RV to provide all of our customers the RV products and services they want at one location,” said American RV General Manager Chad Neff. “This is a new chapter in our 17-year history and we’re all very excited about it.” With the latest opening, Camping World raised the number of stores nationwide to 70 with plans to reach the 100 mark by 2008. 6 Host Class C Tackles Tough Terrain Host Industries’ 330 Quad Slide 4x4 is a nichemarket coach aimed at those that like to travel off the beaten path. Built on the rugged Ford F-550 chassis, the 330 has a towing capacity of 17,000 pounds and features high-end details like solid surface countertops, porcelain toilet, full-size queen bed, 20-inch LCD television and Yamaha DVD/CD player. Of particular note is the optional 96 x 96-inch, cable-suspended, 3,000-poundcapacity patio that deploys from the rear of the coach, complemented by a residential-style rear sliding patio door. Base price is $167,300. 6 MAY 2007 .com User Guide Contents 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:21 PM Page 15 IN BRIEF COACH GLASS INC., CIRCLE 113 ON READER SERVICE CARD Thor’s Audit Continues. Jackson Center, Ohio-based Thor Industries Inc. reported April 9 that it will be restating earnings dating back to fiscal year 2004 as a result of an internal audit of accounting practices at the company’s Dutchmen Manufacturing Inc. subsidiary. Thor currently estimates that the cumulative effect of the issues identified would be a reduction to income before taxes of approximately $25 million, or approximately $16 million in net income. RVDA, FEMA Officials Meet. The Recreation Vehicle Dealers Association (RVDA) recently met with key officials of the Federal Emergency Management Agency (FEMA) to discuss the agency’s sell-off of trailers following the 2005 Gulf Coast hurricanes. FEMA officials David Garratt and Maryanne Lyle told RVDA that they are trying to be extremely sensitive to local markets and are working to place excess travel trailers with other federal agencies and state governments, which will help keep these units out of the normal stream of commerce. February Motorized Sales Down. Motorized retail sales fell 7.2% in February compared with 2006, but did show improvement from January’s double-digit declines in both Class A and Class C registrations. According to Grand Rapids, Mich., marketing firm Statistical Surveys Inc., the Class A market was down 9.3% in February with 2,336 units sold compared with 2,576 units the previous year, while Class C registrations dipped 3.2% with 1,316 units sold versus 1,359 the year prior. CAMCO, INC., CIRCLE 106 ON READER SERVICE CARD RVDA Launches Dealer Marketplace Site. The Recreation Vehicle Dealers Association (RVDA) recently announced the beta launch of the RV Dealers Marketplace, a search tool providing RV dealers and other retailers access to RV-related products and services. Available through a link on RVDA’s website at www.rvda.org, the RV Dealers Marketplace is a partnership with MultiView Inc., an Irving, Tex., publisher of industry-specific search engines and buyers guides. Giant RV Leads Dealers in ’06 Unit Sales. Giant RV, with six California locations, led all dealerships in unit sales for 2006, according to data continued on page 18 MAY 2007 Go To: .com User Guide RVBusiness Contents 15 007-RVB_0705_LO_TOP 4/19/07 1:27 PM Page 16 TRANSFER FLOW INC., CIRCLE 153 ON READER SERVICE CARD <RXU2(0$IWHUPDUNHW )XHO7DQN6RXUFH ,QEHG$X[LOLDU\)XHO7DQNV 2); *HQHUDWRU7DQNV KEPPSRKIRIVEXSVXEROVITPEGIW WXSGOTVSTERIXEROSRÀJXL[LIIP ERHXVEZIPXVEMPIVW'EPPJSVTVMGMRK )XHO)LOOQHFN.LWV =SYV0IKEP*YIP8ERO7SYVGI ZZZWUDQVIHUIORZFRP 16 Go To: RVBusiness TOP OF THE NEWS RVB POLL from page 10 manufacturing community. “It will be a reflection of poor quality and a black eye on the industry.” Another representative from the manufacturing sector noted: “Many first-time RVers wanting to tread into the RV world will unfortunately happen upon these units at ‘low’ prices in the used inventories of dealers, or individuals. These units will most likely have numerous issues. This will give that first-time RVer a very bad taste of what RVing can be like.” Conversely, several survey participants believe there will be minimal fallout, surmising that the FEMA sale could draw more people into the lifestyle. “I don’t think this will have as large of an impact as people in the industry fear,” said a retailer. “The units being sold are stripped-down versions of what we currently sell on dealers’ lots, and can only help increase the exposure of RVing to a greater audience.” Most respondents (78%) also felt that regions where the units are being sold, particularly the Southeast, would be most affected by the sell-off. “We feel that it may lower the true value of entry-level used trailers in the regions that the auctions take place,” said a dealer. “Perhaps a viable option would be to offer to sell the units back to dealers, so the dealer can in turn stand to make some profit off of the sale. They could have on-line auctions, and open it to any dealer that has registered to be a buyer.” Finding alternative uses for the trailers, including future relief efforts or providing shelter for the homeless, was a common theme among poll participants. “…Our industry, already in a depressed state and recovery phase while operating in some very challenging market conditions, could be severely damaged by this liquidation sale,” observed an OEM representative. “Travel trailers intended for use as emergency housing should be used for that purpose, and they should not be later unloaded on the retail market. The 109th Congress, when faced with a similar problem, passed legislation that required FEMA to first try to donate unused manufactured homes to governmental agencies or nonprofit organizations in an effort to protect the struggling manufactured housing industry. That same consideration should be given to the RV industry at this time.” Bringing some perspective to the debate, a member of the supply sector observed that while the FEMA auction will alter the marketplace, the industry also received a boost from the agency. “First of all, the RV industry gained from a natural disaster and made great profits from supplying FEMA disaster units in a time when sales were slumping,” the respondent said. “Each manufacturer knew that at some point in time the units would need to be moved and sold. This will not hurt the industry in that FEMA is flooding the market with used product, but it will hurt the OEMs and its suppliers directly selling to dealers that have very limited or tied up flooring designed for new units, and will affect the natural turn-rate and floor space designed for new RVs exclusively.” 6 MAY 2007 .com User Guide Contents 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:22 PM RV/MH Hall of Fame Announces Class of 2007 10 New Members to be Inducted During Grand Opening in August The RV/MH Heritage Foundation Inc. board recently introduced the 10 newest members of the RV/MH Hall of Fame, representing a wide cross-section of the manufactured housing and recreational vehicle industries. The “Class of 2007” was selected from a pool of 50 candidates and elected by the foundation board. The new class will be inducted into the RV/MH Hall of Fame on Aug. 6, in conjunction with the grand opening of the new 55,000square-foot hall facility in Elkhart, Ind. Members (listed in alphabetical order) include: • Mel Adams, 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. Page 17 • Jerry W. Britton, Textron Financial Corp., Alpharetta, Ga.: Britton has been active in the financing of RV and manufactured housing dealers for more than 30 years. Currently, he provides floorplan financing for more than 800 dealers and annually finances in excess of $1 billion in industry products. • R.C. “Dick” Moore, Dick Moore Housing, Millington, Tenn.: Moore is a charter member of the Tennessee Manufactured Housing Association (TMHA) and a member of the TMHA Hall of Fame. He is the publisher of the housing Industry Perspective newsletter and a mentor to other retailers and land-lease community operators. • Billy Sims, Billy Sims Trailer Town, Lubbock, Texas: A longtime RV retailer, Sims served on the board of directors of the Texas RV Dealers Association and on the dealer councils for several manufacturers. He is actively involved with several consumer organizations to further promote the growth of the industry. • Paul Skogebo, Robert Crist and Co., Mesa, Ariz.: The RV retailer is the founder and only president for more than 10 years of REDEX, an independent dealer-buying group representing in excess of 100 dealers. In addition to operating an RV dealership that is more than 70 years old, he has founded multiple RVand manufactured-housing parks. • Tom Stinnett, Tom Stinnett RV Freedom Center, Clarksville, Ind.: In addition to operating one of the nation’s larger RV dealerships, Stinnett is co-chairman of the Go RVing Coalition and chairman of the Recreational Vehicle Assistance Corp. (RVAC), and is past chairman of the Recreation Vehicle Dealers Association (RVDA), • Ronald Thomas Sr., RONA Homes, Pataskala, Ohio: Thomas is a past president and lifetime member of the Ohio Manufactured Housing Association (OMHA) board. He also serves as chairman of the Midwest Manufactured Housing Association (MMHA) and on the Louisville Show Committee. • James P. Visser Sr., Manchester, Ga.: Visser is publisher of The Journal, a monthly periodical based in Manchester. He is a major promoter of industry trade shows and events via his publication and provides a forum for major organizations to communicate with the industry. • Don Walter, Starcraft RV Inc., Topeka, Ind.: Walters is a founding member and cochairman of the Go RVing Coalition. He is a past chairman of the RV Indiana Committee and has served for more than 20 years on the RVIA Public Relations Committee. • Jerry Wilson, (deceased), Cavalier Homes Inc., Addison, Ala.: One of the founders and past chairman of the Alabama Manufactured Housing Institute, Wilson is recognized as a 30year industry leader and mentor to others. 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, What if your insurance carrier provided personalized service? Zurich focuses on tailored products and 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 169 ON READER SERVICE CARD Contents 007-RVB_0705_LO_TOP 4/19/07 1:50 PM Page 18 TOP OF THE NEWS BRIEFS from page 15 FIRESTONE INDUSTRIAL PRODUCTS CO., CIRCLE 112 ON READER SERVICE CARD from marketing firm Statistical Surveys Inc. The retailer sold 4,098 units, garnering 1.8% of national sales in the 31 dealer states, to edge out Seffner, Fla.-based Lazydays RV Center Inc. at 1.4%. Rounding out the top five retailers in 2006 unit sales were Californiabased Mike Thompson RV, Michigan dealer General RV Center and Stiers RV, also based in California. Firestone’s new counter top display proudly shows off to consumers that you carry and sell the leading brand of air helper springs. From individual springs to complete systems and accessories, Firestone offers what your customers need. Plus now, most Ride-Rite™ applications for late model trucks are available as NO DRILLING REQUIRED systems. This simplifies installation and provides compatability with most fifth wheel and gooseneck hitches. Superior quality, time-saving, and profitmaking air suspension products...just what you would expect from Firestone. AIR AIR HELPER SPRINGS HELPER SPRINGS FLIGHT SYSTEMS, CIRCLE 117 ON READER SERVICE CARD 1.800.888.0650 riderite.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 18 Go To: RVBusiness Skyline Reports 3Q Loss. Citing a softening demand in its core RV and manufactured-housing markets, Elkhart, Ind.-based Skyline Corp. reported a net loss for its fiscal third quarter ended Feb. 28 of $2.175 million versus net income of $2.3 million the year prior; sales retreated to $66.3 million from $117.5 million. Third-quarter RV sales were $15.1 million, compared to $34.3 million the previous year. Skyline reported an operating loss in its RV Group of $2.4 million in the third quarter and $3.4 million for the first nine months. In the RV segment, Skyline sells travel trailers, fifth wheels and recreational park trailers. Forbes Recognizes Elkhart. Recreational vehicle manufacturing hub Elkhart, Ind., was identified by Forbes Magazine as one of the best places for business and careers in the U.S. The business publication recently named the best metropolitan areas and the best smaller metropolitan areas, based on such factors as job growth, educational level of work force, cost of living and cost of doing business. Out of 179 smaller metros listed, Elkhart captured the 83rd slot, receiving its best ranking — a 44 — in the cost-of-doing-business category based on cost of labor, energy, taxes and office space. RVs on TV. Fleetwood RV recently celebrated the 20th anniversary of its participation on CBS' popular daytime game show, The Price is Right!. The company’s Wilderness travel trailer and Red Line toy hauler are among this season’s prizes. Also, a complete array of RVs was showcased on the April 12 airing of the Today Show. Five RVs were featured on the NBC show, including an Aliner folding camping trailer, Winnebago Class C minimotorhome, Jayco SURV, Airstream travel trailer and a Fleetwood Class A coach. continued on page 57 MAY 2007 .com User Guide Contents 019-RVB_0705_LO_AGI 4/17/07 6:30 PM Page 19 NEWS IN FO CUS The three-day conference brought together campground operators, industry consultants, Internet providers and companies specializing in membership financing. Photos: Thomas Myers AGI Campground Expo Spotlights Key Issues Conference Stresses Need to Continually Improve Sites and Services to Satisfy Demands of ‘Baby Boomer’ Generation ■ By Jeff Crider A fter years of talk and speculation, the Baby Boom generation has finally entered its prime RV-buying years. But the ‘Boomer Bulge’ won’t sustain the industry forever. In only seven years, in fact, the numbers of Boomers turning 50 will start to decline. So, there’s little room for park operators to rest on their laurels in learning to market their businesses to the best of their abilities. That was a key message conveyed by David Gorin, the Virginia-based campground-industry consultant and lobbyist to some 200 private park operators, vendors and industry leaders attending Affinity Group Inc.’s (AGI’s) first-ever RV Resort and Campground Conference & Expo. The conference, which took place March 4-6 at the South Point Hotel, Casino and Spa in Las Vegas, was hosted by Grant Miller, president of AGI Clubs, and Joe Daquino, vice president of AGI’s Multi-Media Division. During the gathering, AGI introduced the American Council of Travel (ACT), comprised of individual travel clubs and their strategic partners. AGI said the council is designed to “provide a clear voice and establish best practices for the travel club industry, improving the recreational traveler experience.” According to AGI, by establishing the standards for best practices, ACT provides a forum that “embraces all elements of the travel industry and facilitates a network of strategic alliances that will maximize revenues and minimize costs for everyone involved.” In addition to educational seminars and a keynote address by Steve Farber of Extreme Leadership Inc., the conference showcased Affinity Group brands like Woodall’s, Trailer Life, Good Sam, Coast to Coast and Camp Club USA. Among the other vendors on hand were: Issaquah, Wash.-based Utility Supply Group; Evergreen USA; Murrieta, Calif.-based MacKinnon Campground Consulting; Boise, Idaho-based NomadISP; Austin, Texas-based TengoInternet; and Barbados, West IndiesMAY 2007 Go To: .com User Guide RVBusiness Contents 19 019-RVB_0705_LO_AGI 4/17/07 6:31 PM based Digital Rez International, with whom AGI is working to launch an online campground-reservation service called RVtripsetter.com. Also featured were several companies specializing in campground membership financing and debt servicing, including: Scottsdale, Ariz.-based Concord Servicing Corp.; Escondido, Calif.-based Conrad Companies; The Universal Group of St. Joseph, Mo.; and Aspen National Collections, located in Grand Junction, Colo. Partnering With Government Agencies Gorin urged private park operators to take the initiative now to make sure their parks are doing everything they can to satisfy the needs of today’s campers who, by all accounts, are more demanding than any camper the private-park sector has ever attempted to accommodate. In apparent agreement with Gorin were panelists George O’Leary, of Rincon Country East and West in Tucson, Ariz., and John Heidrich, of Shangri La Resort in Yuma, Ariz., among others. “‘Fun’ is the key word for this generation,” added panelist Gene Addink of Midwest Outdoor Resorts, with membership parks in southeastern Minnesota and in the Black Hills of South Dakota. “They have a very short attention span, and you need a tremendous amount of activities to keep them on your resort.” Both Gorin and Addink also advised park operators about the growing use of toy haulers, or sport utility recreational vehicles (SURVs). They spoke to the merits of contacting local Bureau of Land Management (BLM) officials to identify neighboring areas that may be of interest to RV enthusiasts with toy haulers. In a related interview with Woodall’s Campground Management, a sister trade publication to RVBusiness, Gorin talked about the advantages of being located in so-called “gateway communities” that serve as jumping-off points for visits to public lands operated by federal agencies like the BLM, the U.S. Forest Service and the National Park Service. “Where it is practical, partnering with the federal agencies can make a lot of sense,” said Gorin, the former head of the National Association of RV Parks and Campgrounds (ARVC) who currently serves as an ARVC lobbyist. “The feds can provide recreation-related information that the resort can incorporate into its own promotion and marketing. The feds can also provide interpretive activities that help guests appreciate the lands, and many of the federal lands provide great hiking, ATV riding, hunting and fishing opportunities.” From a marketing standpoint, Addink 20 Go To: RVBusiness Page 20 suggested that park operators need to keep teaching their staffs how to connect on a personal level with their guests. He mentioned, for example, how powerful it can be when campground staffers remember their guests’ names. “We Grant Miller (left), president of AGI Clubs, was one of need to work on the Expo’s hosts. Attendees included Linda Profaizer, giving people a reaARVC president, and Mike Schneider, president and son to come back to CEO of AGI. our park, to pass on that whole ‘conthose of their peers because search engines nected’ feeling,” he said. have made it possible for consumers to Upgrading Parks and Websites Campgrounds also need to continue gather more travel-related pricing informaking physical improvements to their mation than ever before. Gorin and Profaizer noted that private parks to accommodate today’s big rigs, parks have a growing number of tools which require more space as well as 50amp electrical service, attendees were with which to market themselves to consumers, including the GoCampingAmerica advised. On that score, the campground sector is website, their own websites and campmaking great strides, maintained Linda ground directories. Gorin also talked Profaizer, ARVC president and CEO. about virtual Internet tours, such as those Citing ARVC’s latest economic survey used by Rincon Country East and West in conducted by David Gorin & Associates Arizona, enabling consumers to see and — a survey that has not yet been general- feel more about a park than ever before. ly released — Profaizer told conference “The quality of some of these virtual tours attendees that 80% of ARVC-member is absolutely incredible,” he said. “It’s not parks today offer 30- and 50-amp electri- inexpensive. But it really does help share cal service, 56% improved their landscap- the experience, which is what people are ing in 2005, while the typical park invest- looking for.” Of course, U.S. RV parks and camped $37,500 in campground improvements that year. By the same token, camp- grounds still face plenty of challenges, grounds collectively invested about $1.2 what with developers gobbling up park real estate nationwide and RV manufacbillion in park upgrades last year. Profaizer also cited the new survey turers milling out dramatic design results in making her case that camp- changes without ever communicating grounds still have work to do on the mar- with park-sector leaders. However, it’s fair to say that demand for keting front. While 89% of ARVC member parks have websites, she said, most quality campsites continues to grow. “The aren’t using them effectively enough. In campground industry looks pretty good fact, she said, 42% of ARVC-member right now,” noted Mike Schneider, presiparks update their websites only once a dent and CEO of AGI, adding that anecyear, while 31% update them monthly, dotal reports from campground owners 14% weekly and 8% don’t update them at across the country suggest that 2007 all. “That’s not taking advantage of the occupancies are starting off slightly ahead Internet, where it is so easy to go in and of 2006. Another factor that bodes well for the make changes and really sell your park,” campground sector: Americans’ increasshe said. The importance of effective website ing focus on family travel. As Yesawich marketing was underscored at the confer- mentioned in his presentation, the desire ence during a pre-recorded briefing by of Americans to travel with family is Peter Yesawich of Orlando, Fla.-based being fueled not only by sociological Yesawich, Pepperdine, Brown & Russell changes fostered in the aftermath of (YPBR), who noted that 68% of website 9/11, but also by the pervasive lack of visitors experience trouble in finding what leisure time Americans have as a result of cell phones and e-mail, which lengthen they’re looking for. Yesawich said it behooves campground the work week and rob families of operators to differentiate their parks from precious time together. 6 MAY 2007 .com User Guide Contents 4/19/07 1:41 PM CLOSE UP 021-RVB_0705_LO_CCUp_Freig Page 21 Riding the Rails C O R P O R AT E Tony Sippel, RV product manager, Bob Harbin, president FCCC and Dean Schaper, director of sales and marketing (l-r), inside Freightliner’s Gaffney, S.C. manufacturing plant. The 288,000square-foot facility also houses the company’s headquarters. Meeting the needs of motorhome manufacturers is key at Freightliner Custom Chassis Corp. — more than 50 different models are offered on the company’s diesel chassis, by 16 different coach builders. It’s one reason why Freightliner’s share of the diesel chassis market exceeded 54% at the end of 2006. ■ BY BOB ASHLEY ■ PHOTOS: RICK HAITHCOX C imported Sprinter commercial van out of Freightliner’s 282,000-square-foot Gaffney plant, making room for a third production line that is to be turned over this summer to walk-in van-chassis assembly. At the same time, Freightliner ramped up its quality control and leanmanufacturing efforts, reconfigured its internal parts “supermarket” and instituted new procedures up and down the production line. Beyond that, the company last year opened a six-bay Freightliner Oasis service center two miles from the factory and adjacent to a new campus of Spartanburg Community College at which Freightliner will assist in teaching hange has come quickly at Freightliner Custom Chassis Corp., (FCCC) the RV industry’s leading supplier of rear-engine diesel chassis to motorhome manufacturers. The DaimlerChrysler AG subsidiary in Gaffney, S.C., a year-and-a-half ago introduced the industry's first frontengine diesel (FRED) RV Class A chassis since 2002, and late last year reintroduced the beefed-up, high-end Powerliner III chassis suitable for motorhomes up to 45 feet. Additionally, a short time after the October appointment of Bob Harbin as FCCC’s new president — succeeding Reid Bigland — DaimlerChrysler in December moved assembly of the MAY 2007 Go To: .com User Guide RVBusiness Contents 21 021-RVB_0705_LO_CCUp_Freig 4/17/07 12:43 PM new technicians and welcome its customers to bring their Freightliner-built coaches for maintenance or repairs. Also available at the factory service center for members of the 6,000-strong Freightliner Chassis Owners Club is “Camp Freightliner,” a twice-a-month, two-day consumer-directed orientation on the customer’s specific chassis configuration. All of this comes at a time when Freightliner is adapting all of its chassis to new federally mandated diesel-pollution standards in both the Cummins and Mercedes-Benz engines that power Freightliner chassis. “We are constantly making changes somewhere,” Harbin told RVBusiness during a February interview at Freightliner’s headquarters and factory two miles west of I-85 amidst South Carolina's rolling hills. “Executing properly and on time is our primary goal.” Harbin joined Freightliner Custom Chassis after most recently directing a Brazilian joint venture between DaimlerChrysler and BMW AG for five years that produced engines primarily for BMW’s Mini-Cooper automobile. “Freightliner Custom Chassis fits in well with my personal background,” said Harbin. “During the ’90s, I had three different motorhomes when my children were young, so this is a product that I’m very familiar with from a user’s standpoint. I understand the issues 22 Go To: RVBusiness Page 22 that face owners of motorhomes and I bring a lot to the job based on those experiences.” Freightliner’s share of the diesel chassis market at the end of 2006 exceeded 54%, according to Statistical Surveys Inc., nearly twice that of its nearest competitor — Monaco Coach Corp. and its proprietary Roadmaster chassis. FCCC execs attribute that market position to paying attention to the consumer-oriented basics. “It starts from our service network,” said Tony Sippel, RV product manager. “Nobody can service a customer better than we can.” Indeed, FCCC, in partnership with its parent company, Freightliner Group LLC, offers an extensive network of service locations across the country. More than 350 dealers in the U.S. and Canada sell and service Freightliner truck chassis — and can work on Freightliner RV chassis. Eighty-five of them are Freightliner Customer Chassis Oasis centers that provide dedicated service writers, factory-trained techs and RV customer lounges. Separate from that is a network of about 50 sister-company facilities and affiliated RV dealerships that also are able to service Freightliner chassis. “When people buy a coach built on a Freightliner chassis, they know they can find service,” Sippel said. FCCC’s 65-year-old parent, Freightliner Group LLC, headquartered in Portland Ore., generates annual sales of about $9 billion. The leading Class 3-to-8 heavyduty truck-chassis manufacturer in North America, it builds Freightliner, Sterling and Western Star truck, and Thomas Built school buses. On the commercial side, Freightliner Custom Chassis, formed in 1995 when Freightliner Group bought Oshkosh Truck Corp.’s chassis division, assembles Thomas Built bus, shuttle-bus and walk-in van chassis in addition to the RV chassis. “RVs are the biggest component of our business, and school buses would be a close second in number, and walk-in vans are third,” reports Dean Schaper, director of sales and marketing. Although venturing recently into new territory with the FRED and reconfigured Powerliner III chassis — FCCC built an earlier Powerliner platform from 1997 to 2000 — the XC chassis is the company's mainstay product line. The XC chassis features four different rail configurations, engines with eight horsepower ratings, three radiator setups and nine different sizes of tires — meaning many options can be mixed and matched, depending on a MAY 2007 .com User Guide Contents 021-RVB_0705_LO_CCUp_Freig 4/18/07 4:27 PM motorhome manufacturer’s requirements. And all that doesn’t take into account the customization required for each individual manufacturer. Taking everything into account, 16 manufacturers build more than 50 different coach models on Freightliner chassis. “It’s a tremendous challenge,” Harbin said. “But our satisfaction comes from being able to offer the options that allow the coach builders to differentiate themselves in the market.” “Every third chassis that passes down the line is going to be different,” explained production supervisor Terry Belue, above the noise of the production line on the first of two daily shifts near the end of February. “There is a huge variety and variance that our Daimler Chrysler Production System (DCPS) has been designed to handle.” FCC’s ISO 9001 processes and procedures, he maintained, “have created the discipline necessary to produce this level of complexity with a high level of quality.” Like an array of other RV-oriented companies for whom a substantial amount of customization is vital, there’s not much automation evident on FCCC’s production floor. That’s not to say that everything’s low-tech, only that there’s a lot of hands-on work taking place at the South Carolina company. There’s computer-aided direct-current “nut runners” with “transducers” that measure torque within extremely small tolerances, as well as multi-spindle torque tools for installing multiple lug nuts simultaneously. A “hydra-vac” system automatically fills the hydraulic brake system on FREDs. A/C systems are vacuum-tested and automatically charged with nitrogen. Every dieselpusher suspension is laser-aligned, and all chassis go over the automatic ABS system check. By the same token, hand scanners at each station deduct Page 23 Although chassis manufacturing is highly labor-intensive, Freightliner has automated certain tasks. The multi-spindle torque tool seen here installs multiple lug nuts simultaneously. parts from the line inventory and direct that they be restocked from Freightliner’s plant inventory as the company looks to incorporate an increasing degree of lean manufacturing processes. “We want no more than two hours’ worth of material on the line at any one time,” said Don Chapman, director of manufacturing. Computers also keep track of the parts after they’ve been installed. “Line workers can pull up the stats on the vehicle at every station and look up every nut, bolt and torque value,” added Belue. “And with our Parts Pro system, the dealer network can pull up the same VITAL information.” Freightliner’s production schedule calls for more than 100 total units to be assembled every day during two 8-hour shifts. That means, ideally, that a chassis comes off the line every 8.5 minutes. The production process begins by bolting the frame rails together while secured in place in the pneumatically controlled squaring fixture. The assembly sits upside down in a belt system that allows gravity to set the axle and suspension assemblies. After the axle and suspensions are installed, the chassis roll-over crane rotates the unit so that it is right-side up statistics COMPANY: Freightliner Custom Chassis Corp. (www.freightlinerchassis.com). LOCATION: Gaffney, S.C. PARENT COMPANY: Freightliner Group LLC, Portland, Ore., a subsidiary of DaimlerChrysler AG. KEY PERSONNEL: Bob Harbin, president; Dean Schaper, director of sales and marketing; Tony Sippel, RV product manager; Larry Dorer, RV dealer trainer; Missy Grey, RV marketing coordinator. PRODUCTS: Front- and rear-engine Class A motorhome, walk-in van, commercial bus and school bus chassis. Powerliner III tag-axle chassis is intended for luxury motorhome market, with GVWRs up to 49,000 pounds. FACILITIES: 282,000-square-foot headquarters and plant with two production lines, all in Gaffney. EMPLOYEES: 900. MAY 2007 Go To: .com User Guide RVBusiness Contents 23 021-RVB_0705_LO_CCUp_Freig 4/18/07 12:11 PM Page 24 PRODUCT Available in 22,000- to 26,000-pound GVWRs, Freightliner’s FRED (FRontEngine Diesel) chassis is powered by a 300- or 340-hp Cummins ISB 6.7-liter engine. as it proceeds down the assembly line. Engines being installed in chassis are readily recognizable — red for Cummins and black and silver for Mercedes-Benz. Digital displays along the production line keep workers up to date on the day’s progress, including the number of chassis completed without error, the number that should have been completed by that time and the amount of time the line has been shut down. Production workers are aided by lean manufacturing techniques that deliver parts to the line already sequenced and ready to install. “FCCC works with our suppliers to receive parts in returnable containers. Very little cardboard or other packing material comes into our plant,” Chapman said. “It makes the plant almost immaculate.” “We are team-driven and are empowering teams to take ownership for their areas of responsibility,” said Chapman, adding that production staffs schedule PRODUCT PROFILE: Freightliner Custom Chassis Corp. makes three types of diesel chassis for the RV industry: The frontengine MC (marketed as the FRED ), the bread-and-butter XC PUSHER and the new high-end, rear-engine POWERLINER III . ■ The 22,000 to 26,000-pound GVWR “star t-of-shif t huddle meetings” with teams to review production issues. One recent example, he added, involved two assemblers noticing that bolts used to attach flex plates were a little different than those that had been ordered. “They notified the team leader, who notified quality control — and we headed off probably millions of dollars in warranty costs,” Chapman said. “They were rewarded with a gift certificate to the Outback restaurant. It was a small pat on the back, but it goes a long way with folks.” Freightliner, by the way, doesn't build “open” units. All chassis have been sold to manufacturers before they move down the production line. 6 FRED , which is gaining popularity among manufacturers as an alternative to a standard diesel pusher, is powered by a 300- or 340-hp Cummins 6.7-liter ISB diesel engine in a lowered-engine position that eliminates the traditional cockpit “doghouse.” Introduced in 2005, the FRED features a 55-degree wheel cut and parabolic leaf-spring suspension with custom-tuned premium shocks. ■ The versatile XC platform, with up to a 60-degree wheel cut and GVWRs from 26,850 to 44,600 pounds, comes in four rail configurations — straight (XCS), raised (XCR), formed (XCF) and lowered rail (XCL). The XC can be equipped for the upcoming 2008 model year with Cummins ISB, ISC or ISL power plants, or the Mercedes-Benz MBE 926 engine built by Detroit Diesel Corp. Horsepower ranges from 300- to 425-hp. All engines include the “lowered engine position” to help achieve a flat or nearly flat floor in the bedroom. ■ Freightliner introduced the tag-axle, raised-rail, POWERLINER III chassis in November at RVIA’s National RV Trade Show in Louisville. Equipped standard with the 500-hp Cummins ISM diesel engine with 44,600-48,660-pound GVWRs, Powerliner III is designed for motorhomes retailing for $300,000 and up. “The Powerliner III takes us to the next level of chassis above the XC,” reported Dean Schaper, director of sales and marketing. Powerliner III also utilizes the lowered-engine design to allow builders to minimize the intrusion of the engine cover in the bedroom and is designed with a 60-degree wheel cut for maximum maneuverability. Most XC-chassis options are standard on the Powerliner III, including Freightliner-logoed beveled aluminum wheels, all-wheel air disc brakes and automatic load proportioning on the rear axles. Tire pressure monitoring system is an option. At Freightliner, every third chassis is equipped differently. Its XC chassis, for instance, is offered in four different rail configurations, with multiple engine-horsepower ratings, radiator setups and tire sizes. 24 Go To: RVBusiness MAY 2007 .com User Guide Contents 025-RVB05 PG 25 WACHOVIA 4/16/07 10:08 PM Page 25 4(%õ#534/-%2õ3%26)#%õ/&õ!õ ,/#!,õ,%.$%2õ7)4(õ4(%õ&/#53õ /&õ!õ.!4)/.!,õ/.% GK[^cVcX^c\ Ê*"--Ê7/Ê7 "6 7&3ä&INANCIALäANDä7ACHOVIASä$EALERä&INANCIALä3ERVICESäHAVEä JOINEDäFORCESäASä7ACHOVIAä$EALERä3ERVICESä/URä2ECREATIONALä &INANCEäTEAMäISäEXPANDINGäNATIONWIDEäANDäINCREASINGäOURä CAPABILITIESäTOäSERVEäYOUäANDäYOURäCUSTOMERSä26äFINANCINGä NEEDSä3OäGIVEäUSäAäCALLäWEäLOOKäFORWARDäTOäHELPINGäYOUä GROWäYOURäBUSINESS =fidfi\`e]fidXk`fe#gc\Xj\ZfekXZkpfli9lj`e\jj;\m\cfgd\ek I\gi\j\ekXk`m\fifliI\Zi\Xk`feXc=`eXeZ\^iflgXk($///$0*.$000.% WACHOVIA CORPORATION, CIRCLE 132 ON READER SERVICE CARD 7&3õ&INANCIALõISõAõREGISTEREDõTRADEMARKõOFõ7ACHOVIAõ#ORPORATIONõ7ACHOVIAõ"ANKõ.!õISõAõ-EMBERõ&$)#õANDõ%QUALõ/PPORTUNITYõ,ENDERõÚõõ7ACHOVIAõ#ORPORATION Go To: .com User Guide Contents 026-RVB_0705_LO_FMCA 4/18/07 4:14 PM Page 26 Convention Highlights Attendance was down but sales were solid at the Georgia confab, which also hosted newmodel debuts for several manufacturers — among them the long-awaited $1.3-million Country Coach Rhapsody and a unique supplemental hydrogen fuel system developed by Coachmen said to increase horsepower and fuel economy Newmar Grand Star 26 Go To: RVBusiness MAY 2007 .com User Guide Contents 026-RVB_0705_LO_FMCA 4/18/07 4:15 PM Page 27 Caterpillar’s Jeff Headean answers a question concerning 2007 emissions laws. Four-day FMCA confab was considered a successful outing by most manufacturers. BY BOB ASHLEY ■ PHOTOS: SHAWN SPENCE he Georgia National Fairgrounds and Agricenter, spiffed up with a $12 million rehab project that included new extra-wide Tasphalt roads and improved drainage, drew 3,822 family coaches to the Family Motor Coach Association’s (FMCA) 77th International Convention March 19-22. Fortunately, unlike a spate of recent past international conventions dating back to the ’90s, the new drainage system designed to expel rain water wasn’t needed as sunshine and moderate spring temperatures dominated the week. Unfortunately, although manufacturers generally said show sales met expectations, the Cincinnati, Ohio-based association reported attendance for the convention down about 750 “family” coaches from 2005, when FMCA last held its winter convention in Perry. Nonetheless, attendance exceeded last year’s winter convention in Charlotte, N.C. (3,107) and Pomona, Calif. (2,892). FMCA registered another 1,010 commercial coaches, along with 479 vendors that hawked products and services in outdoor and indoor display areas. Speculating on the decline in attendance compared to 2005, Jerry Yeatts, FMCA director of conventions and commercial services, suggested several reasons — including a daunting history of monsoon-like rains at Perry. “I think people were a little gun shy,” Yeatts said. “People are accustomed to having rainy conventions in that area, so I think that was one of the reasons. Also, it might have been the result of the Steve Gerzeny, vice president of Coach House, explains the features of the new Platinum Series to conventioneers. MAY 2007 Go To: .com User Guide RVBusiness Contents 27 026-RVB_0705_LO_FMCA 4/18/07 12:04 PM Page 28 Country Coach Rhapsody Carter Yoder of Sportscoach explains the workings of the hydrogen supplemental fuel system to current Sportscoach owner, Greg Lewis, and Norma Bradshaw of Mid-State RV Center, Byron, Georgia. Coach House Platinum 23-footer boasts a permanent rear bed in one of its two slideouts. 28 Go To: RVBusiness overall economy and rising gas prices. “The manufacturers that I’ve spoken to were satisfied with what happened,” he added. “Lower attendance didn’t seem to affect the buying patterns of the members. The exhibit areas were swamped the whole time.” Indeed, most manufacturers contacted by RV Country Coach Business following the convention indicated that Rhapsody is they met sales expectations. “Sales were good,” characterized as noted Dennis Shaw, general sales manager for “a coach without Winnebago Industries Inc., Forest City, Iowa. limits.” “Based on the amount of people shopping and the amount of business we had, I’m encouraged about the prospects for the rest of the year.” Shaw said that Winnebago’s Class C Winnebago View/Itasca Navion, based on the imported 2007 Sprinter cab chassis, sold well, as did the mid-priced Latitude Class A, built on the Workhorse UFO gas-pusher chassis. “People like the wide-open cockpit up front and the flat floor in the rear,” he added. Winnebago offered test drives in the gas-pusher Latitude while Workhorse Custom Chassis LLC, Union City, Ind., held ride-and-drives in a Monaco LaPalma Class A concept coach mounted on a rear-gas UFO that it purchased from Monaco Coach Corp. for demonstrations. Monaco has not yet announced that it will build on the UFO chassis. At the higher end, the long-awaited $1.3 million Rhapsody diesel pusher from Country Coach Inc., Junction City, Ore. — characterized by the company as “a coach without limits” — made its debut at Perry as the company’s most expensive motorhome ever. “We were pleased with the customer activity,” said Country Coach spokesman Matt Howard. “People were very, very much more focused on floorplans than in the past. They were interested in how specific floorplans fit into their lifestyle.” Newmar Corp., Nappanee, Ind., showcased its new King Aire luxury diesel pusher along with its more affordable Grand Star Class A, available on Ford or Workhorse gas-powered chassis or Freightliner’s FRED front-engine diesel platform. “The reception to our diesel lineup was good, all-in-all,” summed up John Sammut, Newmar vice president of sales. Sammut said Newmar sold a dozen coaches — a majority in the $450,000-and-above range — and would be following up with a handful of potential buyers. “That is about average for us,” Sammut said. “Given the attendance, I’d say it was a good performance. There was no discussion about fuel prices at all, which was pleasantly surprising.” He said consumers were particularly interested in the new 2007 diesel engines developed under EPA mandate to reduce air pollution. “There are a lot of rumors and inaccuracies about the new engines,” Sammut pointed out. “It’s not clear in peoples’ minds about what is going on.” Sales for Fleetwood Enterprises Inc. were off about 10% from 2005’s convention in Perry, according to Dave Cheney, Fleetwood’s national director of sales for motorhomes “We were a little disappointed with the attendance,” Cheney said. “Having said that, I think we made the most out of what we had to work with, and we were happy with the results. Customer comments were very positive.” MAY 2007 .com User Guide Contents 029-RVB05 PG 29 ALLISON 4/16/07 10:07 PM Page 29 ALLISON TRANSMISSION, CIRCLE 105 ON READER SERVICE CARD Go To: .com User Guide Contents 026-RVB_0705_LO_FMCA 4/18/07 12:05 PM Page 30 Lazydays RV Superstore, Seffner, Fla., sold 85 units during the show, including luxury diesel pushers, van campers and minimotohomes, according to Stewart Schaffer, Lazydays’ chief marketing officer. “We did really well across the spectrum of gas and diesel,” Schaffer said. “It was a buying crowd.” For Jayco Inc., Middlebury, Ind., sales were about the same as at last year’s FMCA spring convention in Pomona, Calif. “The show met our expectations,” said Sid Johnson, Jayco marketing director. “It seems like the big Class Cs are particularly interesting to motorhome buyers right now. The trend toward downsizing is getting more noticeable.” National conventions are a favorite stage for manufacturers to introduce new RVs, and Perry didn’t disappoint. Product highlights from the FMCA show included: ■ Taking things to the next level, Country Coach Inc. introduced a $1.3 million, 45-foot Rhapsody 900 diesel pusher built on the proprietary 54,000-pound GVWR DynoMax chassis with a 625-hp Caterpillar C15 engine. Standard is a new Cat CX Series six-speed transmission (for which the company has a one-year exclusive arrangement). Although the Junction City, Ore., builder continues to convert Prevost buses in the $1 million-plus price range, the quad-slide Rhapsody displaces the Affinity 700 Custom — retailing for about $815,000 — as the most expensive Class A motorhome in Country Coach’s lineup. “This product allows us to fill the needs of the many customers who said they wanted a Country Coach without limits,’’ said Matt Howard. “We can do anything that our engineers tell us is possible. As our customers wants and desires change, so will the product.” ■ Coach House Inc. debuted a new double-slideout floorplan with a permanent rear bed in the 23-foot Platinum minimotorhome. “It gives you a lot of room in the bedroom,” said Steven B. Gerzeny, vice president of the Nokomis, Fla., manufacturer. Assembled on a 14,050pound GVWR Ford E-450 Super Duty cutaway chassis, the Platinum — built around a seamless, one-piece reinforced fiberglass shell with 6 feet, 2 inches of interior headroom — is available in eight 23- to 27-foot floorplans. Standard are 4.0-Kw generators, automatic hydraulic leveling systems, Corian countertops, standup glass showers, porcelain commodes, ducted roof air conditioning and 30,000-BTU furnaces. Base MSRP: $130,000. ■ Monaco Coach Corp. Coburg, Ore., has added four new floorplans — including front-kitchen and bath-and-ahalf layouts — to its top-selling Dynasty diesel pusher. “We are giving customers a reason to trade up,” said Mike Snell, vice president of sales and marketing. “We also focused on color fades, which really jazzed up the exterior.” Built on Monaco’s proprietary, 45,160-pound GVWR Roadmaster S-series semimonocoque chassis powered by an 8.8-liter Cummins ISL 425-hp engine, the Dynasty is available in 2008 in seven four-slideout floorplans in 40- to 43-foot lengths. MSRPs begin at $379,438. ■ Chino, Calif.-based Alfa Leisure Inc. has added a fullwall slideout floorplan to its 40-foot See Ya! Class A dieselpusher motorhome. Along with a rear walk-in closet, this new See Ya! model incorporates a 42-inch-deep, 291⁄2-footlong street-side slideout that holds a sofa, walk-in pantry and king-size bed. Built on a 29,500-pound GVWR Freightliner XC raised-rail chassis with a 7.2-liter, 30 Go To: RVBusiness Monaco added four new floorplans to its Dynasty. National RV offers a full-wall passenger-side slideout in its new Pacifica. High-end Newmar King Aire is available in five 45-foot, quad-slide floorplans. Alfa Leisure See Ya! features a 29foot-wide slide and full-size pantry. MAY 2007 .com User Guide Contents 031-RVB05 PG 31 ONAN CUMMI 4/16/07 10:07 PM Page 31 Give Your Towable Customers Full Genset Power In Minutes. Introducing JuiceBox™ Now, trailers and fifth wheels can have a full 4,000 watts of power with the space-saving JuiceBox.™ No special compartment or wiring is needed. Hitch-mountable and self-contained, it’s fast, easy to use and maintain. And because it’s detachable, it can be used independently or transferred to another RV. It’s truly a first—a complete power system with the reliability of a Cummins Onan generator, for fast and easy power, wherever you need it. For more information visit www.cumminsonan.com/juiceboxspecs Cummins®, Onan®, JuiceBox and the “C” logo are registered trademarks or service marks of Cummins Inc. © 2007 Cummins Power Generation. All Rights Reserved. ONAN CORPORATION, CIRCLE 118 ON READER SERVICE CARD Go To: .com User Guide Contents 026-RVB_0705_LO_FMCA 4/18/07 12:06 PM Page 32 B W TRAILER HITCHES, CIRCLE 103 ON READER SERVICE CARD Robert Jones, Prevost VIP Bus Shell Series manager, was in Georgia to give show-goers a rare glimpse of the HE-45 VIP before conversion. 32 Go To: RVBusiness 330-hp turbocharged Mercedes-Benz diesel engine, See Ya! coaches feature passthrough storage, basement air conditioning, 7-foot, 2-inch ceilings, four LCD TVs, telescoping dinettes with free-standing chairs and outdoor entertainment centers with Weber grills. A fully loaded See Ya! retails for $227,295. ■ National RV Inc., Perris, Calif., has taken a different tack from most of its competitors by offering a passenger-side full-wall slideout in one of four 40-foot 2008 Pacifica diesel-pusher motorhome floorplans. This triple-slideout floorplan is assembled on a 32,000-pound GVWR Freightliner XC raised-rail chassis powered by a 350-hp Caterpillar C7 turbo diesel engine. “Most of the original fullwall slideouts just added an extra hallway,” said Doug Kollmyer, vice president of sales and marketing. “This full-wall slide was designed to give a much more open feel.” The 28-foot slide is supported by four rails and features a 20-foot attached awning. Typically equipped, this Pacifica retails for $255,000. ■ Luxury bus manufacturer Prevost Car Inc. gave those attending the FMCA show a chance to see what the interior of a 45foot Prevost H3-45-based VIP chassis looks like before one of about 10 independent converters finishes work on one of the Sainte-Claire, Quebec-based company’s upscale shells. “Sales have been very steady for the last three or four years,” reported Robert Jones, Prevost sales manager for motorhomes. The 54,500GVWR VIP’s self-supporting monocoque chassis with fiberglass exterior is powered by a 515-hp Detroit Diesel engine and features lightweight aluminum passengerside living room and bedroom slideouts. The VIP was last upgraded in 2006 when Prevost enhanced the front end and installed Prevost-designed metroplex technology to control coach systems. The price of VIP shells to converters begins currently at $475,000 and increases to $490,000 when EPA-certified 2007 engines are integrated into the chassis later this year. ■ Newmar Corp. Nappanee, Ind., has extended its reputation as a luxury-class coach builder with the addition of the high-end King Aire diesel-pusher bus to its 2008 motorized lineup. “It is a stylish and powerful alternative for discerning customers,” said Kyle McCrary, Newmar director of luxury products. Built on a 54,000-pound GVWR Spartan K3 chassis powered by a 600-hp Cummins ISX diesel engine, the King Aire is available in five 45-foot, quadruple-slideout floorplans with standard one-piece bonded windshields, polished porcelain tile, high-gloss cabinets, three central air conditioners, MAY 2007 .com User Guide Contents 026-RVB_0705_LO_FMCA 4/18/07 12:06 PM Page 33 CAMCO, INC., CIRCLE 107 ON READER SERVICE CARD MBA INSURANCE, CIRCLE 148 ON READER SERVICE CARD hydronic zone-heating systems, four-door, 17 cubic-foot refrigerators, Corian countertops and 12.5-Kw generators. The MSRP for the King Aire, Newmar’s second-most-expensive coach (behind the London Aire diesel bus), is $642,196. ■ A new entrant in the motorhome market, Silver Crown LLC, White Pigeon, Mich., has introduced a 2008 Silver Crown S-series Class C motorhome mounted on a 44,000-pound GVWR Freightliner Columbia Class 8 commercial truck chassis. “We are taking a heavy-duty chassis that has the ability to tow a large trailer and merging it with a very high-end luxury motorhome,” said General Manager Chris Miller. Silver Crown is a new division of Goshen, Ind.based Supreme Corp., a commercial truckbody builder. The laminated fiberglassand-aluminum S-series, featuring two floorplans with either two or three slideouts, is loaded with amenities that include heated granite floors, granite countertops, two home theater systems, cedar-lined closets, Select Comfort beds, washers and dryers, marble showers and ultraleatherclad furniture. MSRP: $470,000. ■ As part of a new push into alternative fuels, Coachmen Recreational Vehicle Co. LLC, Middlebury, Ind., is promoting a supplemental fuel system that pumps hydrogen directly into a 350-hp Caterpillar C7 diesel engine’s cylinder head to increase the horsepower and fuel economy in a prototype 40foot Sportscoach Elite diesel-pusher motorhome. “This system can be added to any diesel engine without modification,” said Carter Yoder, Sportscoach product manager. “The overall performance of the engine will be dramatically improved.” Coachmen’s Sportscoach division developed the system, which occupies a storage bay beneath the coach and converts water into hydrogen through electrolysis. It is available only as an aftermarket add-on at an initial cost of $15,000. ■ With the introduction of the 2008 Grand Star Class A motorhome, Newmar Corp., Nappanee, Ind., has completed a two-year revision of its gasoline products — and gone a step further. Besides gas versions of the Grand Star on either Ford or Workhorse chassis, a 26,000-pound GVWR Freightliner front-engine diesel platform also is an option in larger floorplans. Grand Star is available in five 33- to 37-foot models — one with a full-wall slideout, another with familyfriendly bunks and three with three-zone living arrangements. Standard features include full-body paint, stainless-steel appliances, solid-surface countertops, Flexsteel furniture and 5.5-Kw generators. MSRP: $134,000. 6 MAY 2007 Go To: .com User Guide RVBusiness Contents 33 034-RVB_0705_LO_Coachman_Q 4/18/07 4:21 PM Page 34 Q&A BY: STEVE BIBLER PHOTOS: MARK SHEPHARD Coachmen CEO Richard M. Lavers, accompanied by CFO Colleen Zuhl, inside a Coachmen Freelander Class C motorhome. COACHMEN INDUSTRIES’ Venerable RV manufacturer implements a multi-step plan to redefine its products and inspire its employees. Steps include re-emphasizing quality and increasing focus on product development — both much in evidence in the company’s new Blast SURV and Wyoming fifth-wheel. 34 Go To: RVBusiness he management of Coachmen Industries Inc., a publicly held company run since its inception in 1964 by the founding Corson family, underwent a sea change last August when Claire C. Skinner announced her early retirement as chairman and CEO. Skinner, daughter of co-founder Tom Corson, was succeeded as chairman by lead director William Johnson. CFO Richard M. Lavers moved up to president and CEO. And while the Corson family retains some equity in the company, Coachmen appears to have entered a new era since Skinner’s departure. According to Lavers, nearly a third of the 2008 products displayed at this past winter’s Louisville Show — most manufactured by the Elkhart, Ind.-based company’s Coachmen Recreational Vehicle Co. LLC (CRV) division in Middlebury, Ind. — were new. Significant among them was the Blast, a multi-purpose sport utili- T MAY 2007 .com User Guide Contents 034-RVB_0705_LO_Coachman_Q 4/17/07 12:33 PM Page 35 ty RV (SURV), and the Wyoming, a mid-priced fifth-wheel line. These new products are key to the company’s recovery efforts, which date back to mid-2005 when Coachmen, facing financial setbacks, began to tighten its belt and sell off underperforming assets. Coachmen’s consolidated RV enterprise now operates from 37 buildings covering 1.4 million square feet in Indiana, Michigan, Georgia and California. Its modular housing operations are located in six states. Coachmen employs approximately 2,500 companywide. Although this belt-tightening has helped cut costs, Coachmen still registered a loss of $31.8 million in 2006 on sales of $564.4 million, bringing its two-year loss to $58 million. The company’s last profitable year was 2004, when it earned $15.3 million on sales of $802.4 million. Lavers, 60, joined Coachmen in October 1997 as general counsel and assumed the position of executive vice president in May 2000, serving as general counsel and secretary of the company from March 1999. In December of 2005, he was named CFO and chief administrative officer. Prior to his tenure with Coachmen, Lavers was an executive with RMT Inc. and Heartland Environmental Holding Co. He earned both his B.A. and J.D. degrees from the University of Michigan. ■ RV Business sat down with Lavers, CFO Colleen Zuhl and Investor Relations Director Jeff Tryka in early March to check in with the new management team. ■ RVB: Now that you’ve served as CEO for six months, tell us, if you would, about how you and the rest of the new management team are redirecting Coachmen. LAVERS: We’re doing a number of things. Probably the most important is changing the company culture — and that involves several initiatives in several directions. We want to move Coachmen to what’s known as a high-performance culture. That is characterized by a commitment to quality, knowing the needs of your customer and then trying to exceed them, being very flexible and responsive, empowering your employees to act, having a commitment to innovation, sharing the wealth, shar- period of time, which means one of the big questions you get into is, “Why should I change it because we did it this way for a long time and we did very well at it?” Well, the answer is that it hasn’t worked that well recently, and the markets have changed and that sort of thing. We have taken four very specific steps in accomplishing that (culture change), and I think it will tie in with what I said were the characteristics of that culture. No. 1 — and the most fundamental — is to re-emphasize quality. I think quality is a huge opportunity for our industry. When you think about it, RVs are all about fun, and you’re not going to stay in the RV lifestyle unless you’re having fun. And you can’t have fun with an RV if your slideout is breaking or things aren’t working. Things have to work. Things have to fit together and function as they are designed. So, for the first several months, we have been really refocusing on what has always been part of Coachmen’s business principles, and that is that quality really is our first priority. We have done many things in that regard. The second step is product development. I mentioned that the culture of change has to have a commitment to innovation. We have taken the cuffs off, so to speak, and asked people to really work with their ideas — and some of the products we came up with at the Louisville Show in a rather short period of time were a direct result of empowering our people to actually act on their ideas. The third thing — and in many ways the most important thing — is listening. Communications is not just talking; it is listening to what people have to say. And then, if we’re going to change, people have to know where we’re going, so we have been articulating a new vision for our RV Group to define what we want to be and what our products mean to our customers. And finally, sharing the wealth. We have to turn the company around. We have to become profitable again, and as we do that, I want everybody in the company to share in that profit. We have introduced some programs for that. So, that has been our menu for the last five months. Counter-Culture Crusade ing the profits and sharing the rewards among your employees. And a real emphasis is on 360-degree communication, all of which is easier to articulate than it is to accomplish. We must change the way we have been doing things, and change is the key word. During the last couple of years we have been concentrating on reducing costs and that sort of thing — doing the same things better and more efficiently. But the numbers are reflecting that that is not getting done sufficiently. So we have to change what we are doing, and that means changing the culture, and changing culture is difficult. RVB: Essentially, then, you’re talking about altering a culture that has developed over a period of 43 years. That’s a big job. LAVERS: Yes, and it was a very successful culture for a long MAY 2007 Go To: .com User Guide RVBusiness Contents 35 034-RVB_0705_LO_Coachman_Q 4/17/07 12:33 PM Page 36 “We have been articulating a new vision for our RV Group to define what we want to be and what our products mean to our customers.” – Richard M. Lavers RVB: Tell us a bit more about Coachmen’s renewed push for quality. LAVERS: We’ve been emphasizing quality relentlessly, realizing how important it is for our people to understand it. We introduced a Quality Incentive Improvement Program last October and ran that through the rest of the year. It was so successful that we broadened it and introduced it companywide this year on a monthly basis as part of the concept I talked about — rewarding our employees and sharing the profits. If they deliver the quality that we feel we need, we are rewarding them for it. Actually, in February, four of our plants, I am very happy to say, received the maximum quality bonuses under that program, which is remarkable improvement in a very short period of time. We are hearing that from our dealers. We even had some dealers call us after delivery and said, “Mike, (CRV President Mike Terlep), we have to talk with you about the quality of these new units ... We didn’t have to do a darn thing with them. We just put them on the front of the lot.” So we’re hearing some very, very good things about the quality of the product. RVB: So, the incentive program is the crux of Coachmen’s quality improvement initiative? LAVERS: There are other things. I don’t think you could do it with incentive alone. For example, we had a driver’s meeting. I wasn’t at the meeting but Mike (Terlep) was. At the end of the meeting, for the first time in a long time they had a bull session. Drivers had some suggestions. One of them was a sign that we have adopted over the punch-in clocks at all of our plants. It asks a very simple question in big, bold letters: “WOULD YOU BUY 36 Go To: RVBusiness WHAT YOU BUILT TODAY?” I think the message has gotten across. The other parts of the program are more technical. We’ve ripped out a lot of complexity in our designs because the simpler things are to build, the better quality you will end up with. We’ve also tried to standardize a lot of things so they are building the same thing over and over and over again and not have quite so many variations because, once again, when you’re building the same thing over and over again, the quality improves. RVB: What sort of feedback have you received regarding the designs and marketability of the new products you introduced at Louisville? LAVERS: Feedback has been extremely good, particularly for the SUTs (sport utility trailers, or SURVs), the Blast, also for the minis and then for the Wyoming fifth-wheel, all of which were redesigned and introduced at Louisville. Our biggest problem with the Wyoming right now is production. We have to make enough to fill the orders we have right now, and that’s a pretty strong endorsement from our dealer body. Speaking of the Blast, we sold more SUTs in the first two months of 2007 than we sold in all of 2006. That’s in a down market. It (the Blast) is smaller than a lot of other SUTs and is designed for the eastern market. The SUT began in California and has sort of a California look and feel, and there is more of an eastern design for the Blast. RVB: What makes it an eastern design? LAVERS: Size, I think, as much as anything else. You don’t have the wide open spaces here that you might have in California. You have narrower, twisty roads. RVB: What are your specific targets for 2007? LAVERS: Our target is to increase market share across the board. RVB: OK, do you want to be more specific on that, Rick? LAVERS: No. RVB: Do you think you can grow market share in what many expect to be a flat market? LAVERS: That’s our plan. It looks like in the SUTs we are already doing that. I think right now the towables market is still suffering from [FEMA sales in] 2006, but we have seen some glimmers. We’ve heard about improvement on the motorized side. I think by the end of the year, we’ll be flat. But as of January, we’re down. Contined on page 46 MAY 2007 .com User Guide Contents 037-RVB05 PG 37 AON 4/16/07 10:05 PM Page 37 IF AN RV LEAVES YOUR LOT WITH JUST AUTO INSURANCE, IT’S ON THE WRONG ROAD... E verybody who drives needs auto insurance. So, its only natural for a new RV Buyer to contact their auto insurance provider about adding their new RV to their auto insurance policy. It seems like a simple solution. It’s also a simple mistake. Standard auto policies don’t cover the special needs of an RV owner, such as full-timer coverage, personal contents coverage, campsite liability, Mexico coverage, and more. Plus, they don’t provide adequate coverage when an RV is parked, or in storage. Aon Recreation Insurance, a Fortune 500 company and the nation’s largest RV-specialty insurance company, has been protecting RVers and their motorhomes since 1966. That gives us the leverage to make insurance carriers listen to the unique needs of RV owners when it comes to claims and policy innovation. It also gives dealers confidence in recommending Aon, because of our experience, dedication, and outstanding service. Add to the service you give your RV customers, by offering them a quote from Aon before they leave your showroom. And make sure they escape the problems of day-to-day life on the road. Call our dealer line today for a quote 800.782.9885 Aonrecreation.com Aon Recreation Insurance is a division of Aon Private Risk Management Insurance Agency, Inc. (in California, Aon Private Risk Management of California Insurance Agency, Inc., CA Insurance Lic. 0B33296) AON RECREATION INSURANCE, CIRCLE 116 ON READER SERVICE CARD Go To: .com User Guide Contents 038-RVB_LO_0705_OEM_Showca 4/18/07 6:51 PM Page 38 OEM The New Frontier ESTABLISHED IN 2002 AS A MANUFACTURER OF ENTRY-LEVEL TRAVEL TRAILERS AND FIFTH-WHEELS, FRONTIER RV RECENTLY FOUNDED A SECOND ASSEMBLY PLANT IN GEORGIA. THE GROWTH ALSO FUELED DEVELOPMENT OF TWO NEW TOWABLE SERIES — AND EXPANSION OF ITS TEXAS BASE. ■ BY BOB ASHLEY ■ PHOTOS: LUISA MORENILLA fter a notable career in RV manufacturing working for others, Johnny Hernandez didn’t wander far from home when he founded Frontier RV Inc., Longview, Texas, to sell travel trailers and fifth-wheels. He graduated high school in Longview and then went to work at Fleetwood Enterprises Inc.’s Longview factory as a material handler. Before he left in 2000, Hernandez had worked his way up to director of sales and development for Fleetwood’s Travel Trailer Division. “We are in Longview because that’s where I grew up,” Hernandez says. “We are southern-born and southern-bred and our products are designed for the South. We know what it’s like to camp in 100˚F temperature on the Fourth of July.” Initially selling regionally to dealers within a 500-mile radius of Longview, Frontier in 2005 opened a factory in Fitzgerald, Ga., to reach customers in the Southeast. With the expansion, Frontier established itself across the lower tier of states stretching from Texas along the Gulf Coast into Florida and north into Oklahoma, Georgia and the Carolinas. Currently, 28 dealers do business with the Longview factory and 13 with Frontier’s Georgia facility. A 500-mile-radius limit is one of Frontier’s primary principles that Hernandez won’t violate. “We have controlled growth,” Hernandez said. “We don’t want to be the biggest manufacturer out there. We just want to be important to the dealers whose lots we are on.” Fostering small, regional dealer bases allows Frontier to provide product more quickly. “We don’t want a dealer to have to wait 21⁄2 months for a product,” Hernandez said. “Our average time to get a unit to the dealer is three weeks — and we can deliver to any of our dealers within one day of the coach leaving the plant. That is important.” Hernandez founded Frontier in 2002 with six other industry veterans, all of whom have been associated with some A The Explorer, Frontier RV’s first product, is now available in 12 floorplans — some with a slideout. 38 Go To: RVBusiness MAY 2007 .com User Guide Contents 038-RVB_LO_0705_OEM_Showca 4/18/07 6:51 PM Page 39 aspect of the RV business for at least 30 years. “Some are dealers who have invested privately and carefully distinguish between Frontier and their retail operations,” he said. “They don’t get special treatment whatsoever. What they do for the company is that they bring a source of retail experience and they know how a manufacturer should relate to a dealership.” Also on board is Hernandez’ 22-year-old daughter, Heather, a regional sales manager who has been with Frontier for two years. “I use the products that I sell,” Hernandez said. “She’s been around the industry her entire life in motorhomes and travel trailers all over the United States. It’s such a great industry that you love to bring your children into it.” Hernandez is intent on keeping the company focused, and he feels it helps being in Longview — away from the RVmaking hub of northern Indiana. “Elkhart is so different from the Fleetwood plants I’ve worked in,” Hernandez said. “There is a whole different mindset in Elkhart, much of it regarding workers who move around a lot. The first thing when we came down here was to pay people differently — an hourly rate plus an attendance bonus and then quality and efficiency incentives on what they built on that particular day. That’s an immediate reward for building a good product.” Hernandez also likes to get himself involved on the production floor. “Yesterday I spent a half-day operating a forklift, moving stuff around trying to make the factory more efficient,” he said. Curiously, Hernandez said Frontier would not have existed without the guidance through the years of the late John C. Frontier RV president and founder, Johnny Hernandez with daughter, Heather, a regional sales manager. “It’s such a great industry that you love to bring your children into it,” said Hernandez. VITAL statistics COMPANY: Frontier RV Inc. (www.frontierrv.com). LOCATION: Longview, Texas. FOUNDED: 2002. KEY PERSONNEL: John G. “Johnny” Hernandez, chairman, president and CEO; Judge Finklea, vice president, purchasing; Bobby Tackett, sales manager; Justin Schooley, product development manager. PRIMARY PRODUCTS: Entry-level travel trailers and fifth-wheels. PHYSICAL FACILITIES: 60,000-square-foot production facility in two buildings in Longview and a 120,000-square-foot factory in Fitzgerald, Ga. EMPLOYEES: 260. MAY 2007 Go To: .com User Guide RVBusiness Contents 39 038-RVB_LO_0705_OEM_Showca 4/18/07 6:52 PM Page 40 BELOW: Frontier recently added a marketing department to help maintain company growth. BOTTOM: Work progresses on an Aspen fifth-wheel, Frontier’s higher-priced towable line. Frontier debuted its Hyperlite travel trailer earlier this year at the Florida RV SuperShow in Tampa. It’s available in lengths from 21 to 27 feet. PRODUCT DETAIL: Frontier’s entry-level wood-and-aluminum Explorer travel trailer – MSRP: $12,000 – was the company’s first product. Initially offered with fifth-wheel floorplans, Explorer now is available in 12 travel-trailer layouts, some with a single slideout. Features include an island queen bed with hydraulic lift struts, 6 1/2-foot ceilings, dual wardrobes, large windows and raisedoak-framed cabinets. A higher-priced Aspen towable series introduced in 2005 features nine travel trailer- and fifth-wheel layouts with up to three slideouts. With gelcoat fiberglass-and-aluminum construction, Aspen retails from $24,000. In addition, Frontier debuted its new aluminum-and-hung-fiberglass Hyperlite by Frontier travel-trailer series at January’s Florida RV SuperShow in Tampa. Though currently offered in single-slideout lengths of 21 to 27 feet, 18- and 19-foot floorplans are being developed for the entry-level Hyperlite. None will have a dry weight of more than 5,000 pounds. Hyperlite is equipped with fiberglass front caps and heated and enclosed underbellies. MSRP: $18,900. Crean, Fleetwood’s founder who passed away in January. “Our philosophy is to make quality products at an affordable price, provide our dealers with an opportunity to grow and prosper, and we in turn will make a reasonable profit,” said Hernandez, who worked for Fleetwood for 27 years before a short stint at Thor Industries Inc.’s Aerolite operation in Syracuse, Ind. “That was John Crean’s philosophy. I am the president of a company because of the things that I learned from John Crean. He is the person I have admired most in this industry.” Hernandez has no immediate plans for expansion other than to add production capacity in Longview. In February he was negotiating to buy property adjacent to a former oil-distribution facility where Frontier’s Longview plant currently is located. With the company firmly established, Hernandez says it’s time for Frontier to become more marketing oriented, and in that regard, Frontier recently hired its first marketing director. “From Day One until now, we did our marketing pretty much by word-of-mouth,” he said. “We were light on brochures and management because we put all of our money into product. “But,” he added, “we are going to focus on sales and marketing this year to keep the growth we have going.” 6 Frontier executives at the Texas facility include (l-r) Judge Finklea, vice president; Heather Hernandez; Justin Schooley, product development manager; Bobby Tackett, sales manager; and Hernandez. 40 Go To: RVBusiness MAY 2007 .com User Guide Contents 041-RVB0705 PG. 41 DTI 4/16/07 9:58 PM Page 41 DTI RV PARTS & APPLIANCES, CIRCLE 121 ON READER SERVICE CARD Go To: .com User Guide Contents 007-RVB_0705_LO_TOP3.qxd ARVC 4/19/07 4:22 PM from page 7 cern about the negative impact of the Western Hemisphere Travel Initiative (WHTI) on U.S.Canadian travel. Many RV parks and campgrounds in states that border on Canada or in Sun Belt states host large numbers of Canadian visitors. Identification requirements contemplated by the WHTI, ARVC maintains in Woodall’s Campground Management (WCM), are likely to have a depressing effect on that substantial Canadian business. ARVC also supports establishment of a nationally coordinated campaign to encourage more international travelers to visit the U.S., including visiting and experiencing the parts of the nation that are not located along either coast or in urban centers. This “Heartland” of America is where many of our natural attractions and much of our Page 42 culture and history can be found. Yet those areas are often without the experience or resources to market themselves internationally and would benefit greatly from a nationally coordinated marketing campaign directed to international tourism markets, WCM reports. ARVC submitted further comments on Feb. 28 urging that a national tourism strategy should encompass other significant policy concerns. One is transportation, especially highway policy since nearly 80% of all travel occurs on highways. “Another policy area is that of public lands — achieving a balance between the preservation of natural, historic and cultural resources and public use and enjoyment is an ongoing, formidable challenge and should be considered in any national tourism strategy while being sensitive to the potential adverse effect on private businesses from excessive expansion of recreation facilities on the public lands,” ARVC stated in WCM. 6 RVs bond families... ...we bond RVs We Succeed When You Succeed THE PANEL LAMINATING EXPERTS Success is a two-way street between supplier and customer. As a supplier, National Adhesives strives to understand the needs of RV manufacturers and their component suppliers and then deliver the right mix of products and services that meets those needs. And that’s how we both succeed. If you have an RV bonding application that you would like to improve, call 1-800-797-4992. www.nationaladh.com NATIONAL STARCH PANEL CONSTRUCTION, CIRCLE 126 ON READER SERVICE CARD 42 Go To: RVBusiness RPTIA from page 7 “The members would like the square footage to migrate upward,” said Diane Farrell, RVIA vice president of governmental affairs. “We’ve done some deep thinking about it, and we hope that it’s doable. Under federal rules that exist today, we could change the square footage for travel trailers to 400 square feet, but a change in federal law would be required for fifth-wheels.” Units exceeding 400 square feet are considered by law to be manufactured homes, falling under the authority and housing regulations of the U.S. Department of Housing and Urban Development. The proliferation of slideouts in fifthwheels makes measuring square footage more difficult. “Because manufacturers can install multiple slideouts, they sometimes get in trouble when they calculate the square footage,” Farrell said. Among manufacturers’ concerns, said Bruce Hopkins, RVIA vice president of standards and education, is that travel trailers exceeding 320 square feet must be displayed in the park-model area of the National RV Trade Show in Louisville and that fifth-wheels exceeding 400 square feet aren’t allowed to be displayed at all under current RVIA show rules. “They aren’t RVs if they are larger than that,” Hopkins said. In any event, Hopkins noted, the process to change the National Fire Protection Association (NFPA) standards regulating the size of travel trailers can’t formally be completed until 2011. There is no telling how long it would take to pass a new federal law governing the square footage of fifth-wheels. The RVIA board could temporarily adjust the travel trailer square footage, Hopkins said. But the board motion calling for the revisions says that the changes for travel trailers and fifth-wheels should go into effect at the same time. Meanwhile, RPTIA stated in a Mar. 1 release that the stable growth record of the park trailer business has gotten the attention of national lenders, including Minneapolis, Minn.-based U.S. Bank, Kansas City, Mo.-based Commerce Bank and Triad Financial Services of Jacksonville, Fla, each of which this year is rolling out new indirect financing programs for park trailer dealers. They join GM Money, which has long been the only national lender in the park trailer business. “Indirect lending brings with it the opportunity for younger families to own and enjoy these delightful vacation and seasonal dwellings with affordable rates and extended terms built to work within their budget,” said Garpow. 6 MAY 2007 .com User Guide Contents 007-RVB_0705_LO_TOP 4/19/07 1:29 PM Page 43 TOP OF THE NEWS will be making some immediate investments in the property, including [adding] lodges and recreational amenities, to ensure that our campers have an even more enjoyable stay at Virginia Beach.” Along with RV sites, the campground offers tent sites, cabins and RV rentals. The park has two large swimming pools and mini golf. KOA acquired the Tower Park Resort and Marina from Westrec, the world’s largest marina operator. The company had been operating the facility’s campground, called Stockton Delta KOA, for the past year through a lease agreement with Westrec. Under the purchase agreement, KOA will own both the campground and marina, but will lease the 365-slip marina portion back to Westrec. The Stockton Delta KOA and the Tower Park Marina are located on 29 acres of the total 140 acres involved in the transaction. The campground portion of the facility has 380 fullservice campsites, including lodges, as well as a pavilion, swimming pool, pet playground and outdoor movie cinema. In Reno, KOA will operate the Boomtown’s RV park, located next to Boomtown Reno and overlooking the Truckee River. The park, with 203 full-service sites, will now be called the Reno KOA at Boomtown. For several years, KOA has operated the Reno KOA adjacent to the former Reno Hilton. That location has been designated for an alternative use by its new owners. The new Reno KOA at Boomtown will offer campers more amenities and convenience than the former location. The facility has its own outdoor pool and spas, Wi-Fi access, cable TV, 24hour security and easy access from Interstate 80. There’s also a free shuttle from the park to the casino. “Reno has always been a fantastic location for KOA, and there is no way we wanted to leave the Reno market,” said KOA President and COO Shane Ott. “We’re thrilled that we now have the opportunity to work with a firstclass operation such as the Boomtown Reno.” 6 CAMCO, INC., CIRCLE 108 ON READER SERVICE CARD from page 14 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. Retracts securely at the touch of a button. Low-Profile and aerodynamic when closed! 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 MAY 2007 Go To: .com MAXX AIR VENT, CIRCLE 154 ON READER SERVICE CARD KOA User Guide RVBusiness Contents 43 4/18/07 12:07 PM Page 44 COMBI-CAM LOCKS DRAWERS, DOORS & MORE WITHOUT A KEY The Combi-Cam is a secure solid-metal cam lock that is said to offer 1,000 possible combinations. It is handy when keys are a hassle or when frequent lock changes are needed. It requires no expensive kits or the arduous task of entirely taking apart the lock, replacing disks. With the lock set on the opening combination, push in the reset button while setting the new combination. Combi-Cam Cabinet Locks, 18424 Highway 99, Lynnwood, WA 98037; S E R V I C E S CUT TING edge 044-RVB_0705_LO_CuttingEdg (800) 654-1786, FAX: (206) 523-9876; www.combi-cam.com; [email protected]. SCARE THE NIGHT AWAY Manufacturers’ Select Hawk Scare Light by ITC measures 6-1/2” wide and 5” high. The depth of the clear housing tapers from 2” on T R E N D S E T T I N G P R O D U C T S A N D top to 1” at the bottom. The tapered, acrylic 44 Go To: RVBusiness lens design directs light down toward the camping area. The six-position bulb holders grip two 20-watt halogen bulbs which draw a total of 3.33 amps. Suggested retail price starts at $32. Manufacturers’ Select by ITC, PO Box 8338, Holland, Mich. 49422-8338; (888) 871-8860; FAX: (616) 396-1152; www.itc-marine.com. AQUARIUM TOILET BRIGHTENS BATHROOMS Fish-n-Flush is a patented, clear, two-piece aquarium toilet tank that fits most two-piece toilets and cleverly contains a fully functioning aquarium inside. The Fish-n-Flush’s insert can be filled with water for fish or left dry for use as a terrarium for a pet reptile or to house colorful plants or foliage. The 2.2gallon aquarium piece can be easily removed for cleaning without obstructing the toilet from working. The toilet tank itself holds 2.5 gallons, which offers sufficient head pressure to flush properly. The power level is set at a safe 12 volts. The Fish-n-Flush sells for $299. Aqua One Technologies Inc., 14726 Golden West Suite J, Westminster, CA 92683; (714) 898-7016; www.fishnflush.com. MAY 2007 .com User Guide Contents 045-RVB_0705_LO_BusProfile 4/18/07 12:09 PM Page 45 BUSINESS PROFILE All The Right Connections COLIBERT ENTERPRISES WAS FOUNDED IN 1976 AS A SMALL INSTALLATION SHOP FOR CUSTOM HITCH RECEIVERS. TODAY, THE COMPANY MANUFACTURES ITS OWN LINE OF CLASS III AND IV RECEIVERS AND REMOVABLE FIFTH-WHEEL HITCHES — TO THE TUNE OF $2 MILLION ANNUALLY. J an Colibert, president of hitch manufacturer Colibert Enterprises Inc., Salt Lake City, Utah, recalls when the company consisted of her husband, Floyd, who installed and customized hitches in a small shop, and herself as the receptionist and bookkeeper. “It’s a far cry from that today,” she said of the company that today — absent Floyd Colibert, who died in a 2001 motorcycle accident — employs 11 workers in a 20,000-square-foot factory. Her daughter, Jacque Colibert Clark, is general manager and son, Greg Colibert, is vice president in charge of production and R&D. Sales for 2006 were a little more than $2 million. Floyd and Jan Colibert started out in 1976 with an installation facility. “He had worked as a metal worker in hitchinstallation shops,” Jan Colibert said. “We started in a little hole-in-the-wall doing sales and hitch- and wiring installations. Most of it was custom work.” By 1997, Floyd Colibert had designed an under-bed gooseneck hitch system that could be removed from the bed when a pickup truck wasn’t being used for towing. With it, he decided to change the company’s focus and become a manufacturer and distributor of his own products. “My husband was the ultimate inventor,” Jan Colibert said. “He was a genius. Unfortunately, he had new ideas for patents that he didn’t even tell me about.” The primary change in the hitch industry since the company was founded is that almost everything today is standardized. “When we started out as a manufacturer,” she said, “it was pretty much custom work for each unit. Now, there’s a fit for everything. You just pull it off the shelf, including the wiring RVBusiness Go To: harnesses, and put it on the vehicle. It’s so much easier than it was 30 years ago.” A major reason for the company’s success, she contends, is that her husband started on the custom-installation side of the business. “He always looked at creating a product from the installer’s point of view,” Colibert said. “What was the best, safest and easiest way to install a hitch. He thought about things from the ground, up, instead of the bumper, back.” The reason the company was founded — to make hitch receivers for trucks — has pretty much disappeared. “That industry has really gone away due to the fact that most of the major manufacturers now install hitch receivers standard on their trucks and SUVs,” Jan Colibert said. Today, Colibert Enterprises produces a full line of Class III and Class IV hitch receivers, including the Free Ride fifth-wheel hitch, Good 2 Go gooseneck system and Rail Rider fifth-wheel hitch for shortbed pickup trucks. A key feature of all three is that they all can be easily removed so that the truck bed is flat when the vehicle is not being used for towing. Colibert Enterprise’s factory is equipped with a computerized plasma table and six custom presses designed by Floyd Colibert that cut and form the metal used to build Colibert hitches. Last year, Colibert Enterprises licensed to Blue Ox a patented weight-distribu- MAY 2007 While the company has added employees, Colibert Enterprises remains a family affair. Jan Colibert (center, top) serves as president, with son, Greg, as vice president in charge of production/R&D and daughter, Jacque, as general manager. Among the company’s products is its Good 2 Go gooseneck hitch, shown with different-sized adapters. tion hitch that Colibert developed. “One of the contributing factors was that that was a new patent and we were just starting to try to market the product ourselves,” Colibert said. “A bigger company with better name recognition could do a better job marketing than we could.” Colibert Enterprises hitches are sold at RV dealerships and Camping World stores, and marketed via industry trade shows and through almost all of the major RV industry distributors. Retail prices range from $500 to $800. 6 — Bob Ashley MAY 2007 .com User Guide RVBusiness Contents 45 034-RVB_0705_LO_Coachman_Q 4/17/07 12:33 PM Coachmen’s Lavers Contined from page 36 RVB: You’ve reported consolidating Coachmen’s toy hauler division, combining two plants in Fitzgerald, Ga. How is that going? LAVERS: I think it is working out extremely well. Georgia before was making a selection of different products, building things that were designed up here (in northern Indiana) for the local market. We took everything out of Georgia and dedicated the whole Georgia facility to SUTs and made SUTs their own baby — design, sales, everything. I think they’re (employees) excited. The whole production crew down there is enthusiastic about what they’re doing, and I think the results with the Blast and the Adrenaline and some of the sales results I talked about speak for itself. It’s worked out extremely well. RVB: What price markets are you focusing on at this point, product-wise? LAVERS: Primarily, we are much more focused on the entry to mid-level. The sandbox we want to play in is there, not in the high end or ultra-high end. We made some mistakes in walking away from where our strengths have been. We are emphasizing energy efficiency, the whole Page 46 ‘green’ emphasis, not just as a marketing gimmick, plus more use of electronics in ways that make things more convenient and reliable. We’re also focused on styling — trying to get beyond the traditional designs we see so much of today. RVB: When you mentioned staying out of markets that don’t play into Coachmen’s strengths, were you talking in part about some motorized products? LAVERS: Mostly, yes. I’ll give you a specific example: Georgie Boy used to be very, very strong on the entry level. Then, it [was] decided to jump out from their sweet spot with the Belagio [higher priced Class A]. It was a big mistake. We need to get Georgie Boy back to what we’re really good at. We’re going to simplify the Georgie Boy line to be very easy to understand and define. But it goes beyond Georgie Boy. We looked at every one of our brands and asked, “What does this brand mean?” A lot of people say brands mean nothing in the RV industry. They say it’s a commodity because, again, so many products look so much the same. I don’t believe that. If you can brand water, you can brand an RV, and we have one of the strongest brands in the RV industry. RVB: You mentioned in your year-end conference call that you were undertaking a CAMCO, INC., CIRCLE 109 ON READER SERVICE CARD 46 Go To: RVBusiness strategic sourcing program for the RV Group. What’s that all about? LAVERS: What most people don’t realize is that about 75% of our product costs are in materials, and we found that we really weren’t doing a top-notch job in the supply-chain management of our raw materials. I’m not criticizing our purchasing people. Our purchasing people were negotiating and all that sort of thing, but there is a lot more to strategic sourcing than just negotiating the price. Part of it is product simplification and standardization so you can buy in larger quantities and negotiate discounts. But a lot of it is just becoming easy to do business with. Over a number of years, we have become kind of rigid in our ways. It goes back to culture change. We’ve invited our suppliers to help us by making us easier to do business with and, in so doing, reducing our costs and increasing our quality. We’ve launched a major initiative in that regard. Part of it is acquiring materials from new sources, low-cost countries, that sort of thing. RVB: Low-cost countries? LAVERS: Sure. You can get plumbing parts from Mexico or China that meet all our quality standards but are inexpensive. But that’s not the major thrust. The major thrust is eliminating the process costs that are involved in handling our materials, putting them into our manufacturing processes. We hired a new vice president of strategic sourcing (Mark Hatley). He’s jumped into it in a big way. We’ve added some support staff for him with people focused in acquiring certain types of materials. It’s a major emphasis. The other part is the design of our products and eliminating unnecessary variations which increase our costs. And, as part of all this, we’re reducing our number of suppliers. RVB: You’ve already done that? LAVERS: We’re in the process of rather radically reducing the number of suppliers, corporatewide. Why? I’m not going to say the particular type of item because I don’t want to send the wrong message to people, but, as an example, we have one item we were supplied by more than 20 suppliers, and we have reduced that to three. And in many cases, items were made specifically for Coachmen, so we ended up paying a heckuva lot for, say, a door and storing that door and having replacement parts for that door. It just ripples through the whole business, and the whole business is changed. So what used to be an advantage became a cost disadvantage. RVB: Do you plan to keep a hand in the MAY 2007 .com User Guide Contents 034-RVB_0705_LO_Coachman_Q 4/17/07 12:34 PM housing business? LAVERS: Yes, what we’re trying to do is develop some internal synergies between those two operations (housing and RVs). In the past, they hadn’t been what you would consider counter-cyclical. But they are not on the same cycles either, so the housing group has been able to buoy up the RVs when RVs were down a little bit. This is the first time in our history that both of those markets have been down at the same time, which makes it a little difficult. But we think there may still be some advantages to working those two groups more closely together, like engineering, making our products more energy efficient or using some of the electronic wizardry that is available today in the supply-chain management area. RVB: Then, you still view modular housing as a growth area for the company? LAVERS: Absolutely. It’s a huge opportunity for the company. The conventional wisdom is when the housing market reemerges from its current funk, it’s going to be more toward multi-family houses, more urban type things, and we’re trying to reposition ourselves to take advantage of that. But we also have a huge opportunity on the modular side in military construction because the Army wants to go modular at its bases. If things go as we think they will, we’ll probably have to add a plant in the South. RVB: Are you picking up Gulf Coast reconstruction business? LAVERS: Partly. That’s one of the drivers. Right now, we’re shipping houses to New Orleans from Decatur, Ind. There’s a lot of freight charge there. RVB: We were wondering, in closing, whether the Corson family still exerts any influence here at Coachmen with respect to day-to-day operations? LAVERS: No, there is no Corson family member who is active on the board or in management. I believe we still have a young man working in our service department who does a very fine job. They are still major shareholders who are interested in how the company is doing and they are available if we want to call on them. But, basically, there’s not a significant investment of any time by the Corson family in the management of the company … But I’ll tell you one thing that is still very evident and that we cling to: Tom Corson built a company that was based on some business principles that we have no intention of changing and which we all ascribe to. And that is: “Our word is our bond; integrity is our commitment.” We try to use this Golden Rule in dealing with our customers. 6 Page 47 PUBLIC DOMAIN BY BOB ASHLEY On Gas Prices, Parking Spaces, Parking Wars and Pennsylvania Park Trailers A nyone who’s traveled a bit this spring has to wonder, like I do, about the rationale behind gas prices. They seem to rise and fall for no particular reason — and pricing often seems to be arbitrary. My evidence is anecdotal, but nonetheless significant, I think. When I drove to the Indianapolis airport in mid-January to attend the Florida RV SuperShow in Tampa, I was surprised to see prices as low as $1.83 per gallon. In Tampa, however, I found prices in the mid-$2.40s for the same gallon’s worth of petrol. When I returned home to central Indiana, prices had begun to inch up again. They settled — for about a week — at around $2.20 a gallon. At the end of February, when I visited Freightliner Custom Chassis Corp. in Gaffney, S.C., I found local prices there were $2.03 a gallon — almost 20 cents a gallon cheaper than in Indianapolis where, 10 days later, prices had climbed to $2.53. And as I write this during Easter weekend, regular gasoline hovers around $2.88 a gallon — although three days earlier in Augusta, Ga., while attending the Masters golf tournament, I’d paid just $2.49. My point here is that the RV industry seems to prosper when there is predictability in both interest rates and gasoline prices. It’s the volatility that makes people nervous and causes them to postpone buying decisions until things calm down — and if the volatility I saw this spring in gasoline prices is a harbinger for what’s in store for this summer, I’m less optimistic about how the RV industry will do for the rest of the year than I was earlier. • • • I recently pulled off Interstate 69 into the parking lot of the Indianapolis version of a popular restaurant chain and was pleased to see four prominent pull-through parking places clearly reserved for recreation vehicles. I was somewhat chagrined, however, to see that there was nary an RV in sight. Instead, all the RV parking spots were populated by cars and trucks. RV friendly? Indeed. • • • There are some universal truths about RVing, extending even from the U.S. to Great Britain where RVing is enjoying a boom, relatively speaking. The Western Mail in Wales reported recently that parking wars have broken out between car and caravan owners (“caravan” is British-speak for “motorhome”). In fact, the issue even has reached the desk of Prime Minister Tony Blair — where a petition has landed to force UK communities to provide motorhome-only spaces in public-parking lots. In the U.S., where homes and yards typically are larger than in Great Britain, disputes usually concern the “unsightliness” of RVs parked in side yards or on subdivision streets. Communities from Maine to California have imposed restrictions, prompting many RV owners to pay to park their units in storage lots. In Wales, though, local councils are under pressure from residents who say motorhome owners should pay special fees to park in public spaces. The newspaper reported that 8,639 motorhomes were registered in the UK MAY 2007 Go To: .com User Guide RVBusiness Contents 47 034-RVB_0705_LO_Coachman_Q 4/17/07 12:34 PM Page 48 DON’T PUT YESTERDAY’S TECHNOLOGY IN TODAY’S AVANT-GARDE RV. You build beautiful, modern RVs. So why diminish your brand with inferior electronics systems? When it comes to contemporary television electronics, no one is better than Samsung. Samsung’s 32-inch HDTV and home theater system with SRS TruSurround XT™ sound provides outstanding performance and value. Its advanced high-def technology delivers a remarkably crisp, clear picture in vivid color. Samsung’s home theater audio system immerses your customers in 600 watts of rich, powerful Dolby Digital® sound and is XM satellite radio-ready. The console is stylishly designed to match the television’s beautiful décor. RiverPark’s service standards are RIVER PARK INC., CIRCLE 104 ON READER SERVICE CARD top-of-the-line, too. Customers have 48 Go To: come to expect our exceptional product expertise and dedicated service. And RiverPark has been providing these high quality services, along with the finest electronic brands, to RV customers since 1981. Offer your customers the best in contemporary electronics. Choose high quality Samsung products from RiverPark. 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. W W W.RIVERPARKINC.COM RVBusiness in 2006 — up dramatically from 4,477 in 1998. • • • Grow Boating Inc., the marine industry’s version of the Go RVing market-expansion campaign, is offering a $1,500 subsidy to dealers who become certified by the Marine Retailers Association of America. At the end of 2006, 421 dealers were enrolled in the program and 165 had been certified. • • • The Pennsylvania Recreation Vehicle and Camping Association (PRVCA) recently determined that recreational park trailers can be sited on private land for use as vacation cabins, contrary to the popular belief that they could be parked only in campgrounds. Dan Saltzgiver, a PRVCA board member and park trailer dealer, characterized the new interpretation of the law as “significant” with regard to the potential of increasing park-trailer sales in the Keystone State. • • • Seven former National Park Service (NPS) directors have signed a letter urging Interior Secretary Dirk Kempthorne to continue a transition away from snowmobile use in Yellowstone National Park. They noted that four NPS studies since 1998 have been consistent in their findings that a greater volume of snowmobile traffic would dramatically increase air and noise pollution and disturb Yellowstone’s wildlife … A Go RVing Canada tracking study found that more than 50% of non-RV-owning Canadians were aware of the Canadian market-expansion program that consists of print, TV and Internet adds that run primarily from February through May… The not-for-profit SUV Owners of America (SUVOA) has created an online guide at www.suvoa.com to help owners determine the proper towing capabilities of their vehicles … The National Wildlife Federation (NWF) is sponsoring the Great American Backyard Campout June 23. As part of that effort, an NWF website (www.back yardcampout.org) provides recipes, nocturnal wildlife guides and exploration activities. The NWF said 60,000 families participated last year. 6 MAY 2007 .com User Guide Contents 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:23 PM Page 49 AIRSTREAM from page 7 CAMCO, INC., CIRCLE 111 ON READER SERVICE CARD Willys-Overland Jeep, a 1959 Volkswagen Beetle, a 1963 Jaguar E-type Roadster, a 1990 Ferrari Formula 1 racing car 641⁄2 and a 2002 Mercedes-Benz Smart Car. Interviewed after the ceremony, Richard “Dicky” Riegel, group president for Thor Industries Inc., Airstream Inc.’s parent company, noted that Airstream travel trailers are unique within the RV industry. “There are few products in our industry that promote an emotional response,” Riegel told RV Business. “Even to touch an Airstream trailer is so different than anything else in the RV industry — indeed, among all products in the world.” Among those attending the ceremony in continued on page 52 Thor Industries executives Bob Wheeler, Wade F. B. Thompson and Richard “Dicky” Riegel (l-r) attended the MoMA ceremony in New York City. Dometic Corporation is continually committed to maintaining a high level of satisfaction and excellence now and in the future. That is why Dometic is voluntarily recalling certain refrigerators that may have a potential safety defect. The recall affects Dometic two-door refrigerators manufactured between April 1997 and May 2003. The well-being of Dometic customers is of highest concern. A serious problem resulting in a fire may occur in an exceptionally small fraction of Dometic two-door refrigerators, but to address that potential risk, please contact us immediately for more information. 1-888-446-5157 www.DometicUSA.com RECALL O6E-076 MAY 2007 Go To: .com User Guide RVBusiness Contents 49 050-RVB_0705_LO_Ad Index 4/19/07 4:08 PM ADVERTISERS’ INDEX RS# Advertiser 105 116 103 106 107 108 109 111 110 113 121 112 117 115 141 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. Pg.# Allison Transmission . . . . . . . . . . . . . . . . . . . . . . .29 Aon Recreation Insurance . . . . . . . . . . . . . . . . . . .37 B W Trailer Hitches . . . . . . . . . . . . . . . . . . . . . . .32 Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Camco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . .56-57 Coach Glass Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .15 Country Coach . . . . . . . . . . . . . . . . . . . . . . . . . . .11 DTI RV Parts & Appliances . . . . . . . . . . . . . . . .41 Dometic Corporation . . . . . . . . . . . . . . . . . . . . . . .49 Firestone Industrial Products Co. . . . . . . . . . . . . .18 Flight Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Freightliner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 GE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 GE Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 RS# Advertiser 163 135 148 154 152 114 126 118 102 104 167 170 169 119 153 132 169 Pg.# Girard Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 KeyCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 MBA Insurance, Inc. . . . . . . . . . . . . . . . . . . . . . . .33 Maxx Air Vent . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Maxxis International . . . . . . . . . . . . . . . . . . . . . . .52 Monaco Coach Corporation . . . . . . . . . . . . . . .CV2 National Starch Panel Construction . . . . . . . . . . .42 Onan Corporation . . . . . . . . . . . . . . . . . . . . . . . . .31 Pennsylvania RV and Camping Association . . . . .51 RV Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 River Park Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 S&S Mobility Products, LLC (DBA Coach Lift) .54 Sunbrella Brand Fabrics . . . . . . . . . . . . . . . . . . . . .53 Systems 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 TrailManor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 Transfer Flow Inc. . . . . . . . . . . . . . . . . . . . . . . . . .16 Wachovia Corporation . . . . . . . . . . . . . . . . . . . . . .25 Zurich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 While every effort is made to maintain accuracy and completeness, last-minute changes may occasionally result in omissions or errors. 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 Go To: RVBUSINESS ◆ MAY 2007 .com User Guide Contents 007-RVB_0705_LO_TOP 4/19/07 1:51 PM Page 51 TOP OF THE NEWS MONACO ufacturers have formed alliances and have worked together for years. As long as the joint venture can produce the best diesel chassis in the business, it would be to others’ (motorhome manufacturers’) advantage to use it over a Freightliner or Spartan chassis.” Monaco already used Workhorse Wseries gas as well as Ford chassis in its gas-powered Class A motorhomes. Because of a general sluggishness in the Class A motorhome market in the last couple of years, however, Monaco had excess capacity at diesel-chassis factories in Indiana and Oregon. “It’s mostly about the efficient use of resources,” Olson said. “This is the way things are going.” Toolson said the joint venture will benefit from International’s purchasing power and that the arrangement particularly will help in developing chassis under new EPA rules that will go into effect in 2010 and 2012. “There is a lot of engineering time, and to do it as a smaller chassis manufacturer is difficult,” Toolson said.'' The Elkhart plant, with about 125 people operating three production lines — two for from page 12 of Monaco's board — announced in January that they had formed a new company called Custom Chassis Products LLC (CCP) that would lease Monaco’s 210,000-square-foot Roadmaster chassis plant. The facility, known as Plant 50 and located on Ind. 19 on Elkhart’s south side, will manufacture both Roadmaster and Workhorse R-series chassis. A Roadmaster factory in Oregon will continue to build only Roadmaster chassis under contract to CCP. International owns 51% of CCP, while Monaco owns 49%. Monaco Chairman and CEO Kay Toolson said the company has “no plans at this time” to sell the Roadmaster chassis to other motorhome manufacturers. He acknowledged that some motorhome builders may consider the Workhorse diesel chassis being produced by a company owned in part by a motorhome manufacturer as doing business with a competitor. “There always is some of that thrown out as criticism,” Toolson said. “But auto man- the Roadmaster and one for the R-series — will be under the supervision of General Manager Terry Wells, a former Monaco employee. A five-member board will oversee the operation. CCP expects to build about 5,000 chassis the first year, with a little more than half going to Monaco for its Monaco, Holiday Rambler, Beaver and Safari motorized lineups. Previously Workhorse R-series chassis had been manufactured by Autocar LLC, Hagerstown, Ind., a subsidiary of Workhorse’s previous owner, Grand Vehicle Works (GVW) Holding Corp., which sold Workhorse to International in 2005. Workhorse introduced the R-series chassis in 2002, but so far only one manufacturer — Gulf Stream Coach Corp., Nappanee, Ind. — has built motorhomes on the 28,000-32,000 GVWR platform. “We have been less than successful in that area,” said Olson. “It’s a disappointment for us. “Obviously, our goal is to significantly increase our quantities of the R-series chassis coming out of that facility. There are through-put advantages, design advantages and supplier advantages.” 6 !-%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 102 ON READER SERVICE CARD MAY 2007 Go To: .com User Guide RVBusiness Contents 51 007-RVB_0705_LO_TOP 4/19/07 1:31 PM Page 52 TOP OF THE NEWS CAMCO, INC., CIRCLE 110 ON READER SERVICE CARD AIRSTREAM from page 49 MAXXIS INTERNATIONAL, CIRCLE 152 ON READER SERVICE CARD http://www. rvbusiness.com/ GLB/trx.cfm?d=T| 116|1345|1|{pID}| 52 Go To: RVBusiness MoMA’s six-floor, 630,000-square-foot museum on West 53rd Street in mid-town Manhattan were Thor Chairman Wade F.B. Thompson; Airstream President Bob Wheeler; all but one member of Thor’s board of directors; J Mays, Ford Motor Co. group vice president for design; Helmut Weiser, Alcoa group president; noted artist Vija Celmins; and a number of prominent New York galley owners. In the last decade, Airstream has raised the bar in terms of design as the company’s travel trailer line has evolved. The company hired noted designer and architect Christopher C. Deam to create a modern interior for one of its models that became Airstream’s best seller. Also, Jackson Center, Ohio-based Airstream partnered with Nissan Design America to create a diminutive BaseCamp sport utility travel trailer (SURV) that recently went into production. And in January, Ford Motor Co. debuted a capsule-shaped, hybrid-fuel concept vehicle stylized with Airstream’s assistance. Riegel said Thor is proud Airstream was chosen to represent an aspect of American culture. “MoMA is the Pantheon,” Riegel said. “And that's not just for people who pay attention to design or to art. It’s really the Pantheon of culture because [it features] the most important examples of the most influential modern artists, designers and architects.” He credited Airstream founder Wally Byam for establishing Airstream’s uniqueness from the beginning. “All you have need to do is look back at 76 years of Airstream’s history and acknowledge that the same basic design tenants that Wally Byam used in his first trailers continue today [using] the same materials and the same basic construction method,” Riegel said. The New York Times marked the debut of the MoMA Airstream exhibit with a mid-April feature article on Airstream’s origins and its history, including notable occasions that included Airstream trailers being used by NASA to quarantine astronauts returning from the moon and in February by Vice President Dick Cheney as a command center in the belly of a C-17 cargo plane when Cheney made a trip to Asia. “On The Road: Airstream Bambi Travel Trailer,” including photographs and posters, will be displayed in the museum’s main lobby through Nov. 12, after which the trailer will be moved to a display gallery. 6 — Bob Ashley Airstream Safari Bambi MAY 2007 .com User Guide Contents 4/19/07 Winter Texans 1:32 PM from page 7 subject to taxation as real property. The 70 participants got no resolution of their decadeold complaint. Richard S. Talbert, the appraisal district’s long-time attorney, said that the time for protest was in May or June when Winter Texans have headed back north. He suggested hiring an agent and the proper forms were distributed. Talbert also stressed that resolution of the Winter Texans’ beef would come only with the outcome of lawsuits now inching through Hall of Fame Page 53 courts in Hidalgo and Cameron counties that will most certainly end in the Texas Supreme Court in the far-distant future. “When that case is resolved,” Garza said, “we will get a court order saying ‘strike all those from the rolls’ and the first thing (we) will do is strike them all from the rolls.” The lawsuits, brought mostly by Winter Texans, plead for exemption from property taxes for RVs that are not “substantially affixed” to their sites. Specifically, the audience objected to taxation as real property of recreational park trailers that are rolled into an RV park and frequently outfitted with porches, decks, awnings and skirts. Despite such modifications, the RVers claimed their park models could be made mobile in an hour and thus don’t fit the “substantially affixed” requirement of Texas law to be taxed as real property. One protester brought large dramatic pictures of park model RVs being prepared for moving and actually being moved. Said Karen Rankin of Iowa, “We pay almost $300 in property tax on a park model that sits on rented property. And we already paid about $1,000 in Texas sales taxes. That sure doesn’t seem fair to me.” 6 from page 10 historian David Woodworth’s 1,800piece collection of antiques and camping memorabilia. A separate hall now houses the foundation’s own collection of about two dozen RVs with historical significance. “The purpose for the ‘soft opening’ was to allow visitors to come through and begin to see any areas that need to be revamped in preparation for the grand opening,” said B.J. Thompson, president of B.J. Thompson Associates, Mishawaka, Ind., the Go RVing Coalition’s liaison to the foundation. The foundation’s staff in December moved into the building, which also houses a library and meeting room. The hall of fame/museum previously was located in downtown Elkhart. In part because of the museum’s prominent location and a tie-in to the Indiana Department of Tourism, visitation is expected to increase to about 30,000 annually. 6 A R O U N D E V E RY C U R V E is another surprise. JUST NOT WITH OUR PERFORMANCE FABRICS . The unexpected is, well, expected when you’re on the road. That’s why Sunbrella® brand fabrics were created to perform mile after mile. They’re not only fade-resistant, but also extremely durable in all weather conditions. Specify Sunbrella on your awnings, and you’ll be providing a proven fabric with a 40-year history of exceeding expectations. And that’s not just talk. We also have the best limited warranty in the business. For more information, contact us at 336-221-2211. Sunbrella® is a registered trademark of Glen Raven, Inc. www.sunbrella.com Exhibits at the new Hall capture the history of RVing in America. MAY 2007 Go To: .com User Guide RVBusiness Contents 53 SUNBRELLA BRAND FABRICS, CIRCLE 170 ON READER SERVICE CARD 007-RVB_0705_LO_TOP 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:24 PM GOOD SAM from page 8 Gonser, chairman of RVOAC. “As the council said in its report, it's as if RVers were saying ‘build it right’ and if you don't, get it fixed the first time. And if you fail on the first two, I want lemon-law protection.” S&S MOBILITY PRODUCTS, LLC (DBA COACH LIFT), CIRCLE 167 ON READER SERVICE CARD SYSTEMS 2000, CIRCLE 169 ON READER SERVICE CARD Gonser added, "RVers would not be at all surprised at the high rankings of these three items. The real surprise is that RV owners now have a forum through the Good Sam Club to express their concerns, and potentially have them represented in meaningful discussions with industry Page 54 leaders. RVOAC members intend to use the survey as a means to bring constructive focus on the issues pertaining to RV quality and service.” Gonser, a retired attorney and former executive director of the American Bar Association who founded the popular website www.rversonline.org, chairs the council. Other members include: Jan McNeil, a retired realtor and full-time RVer; Leo Everitt, a former executive with engine builder Cummins Inc. and RV maker FMC; and Bill Estes, who recently retired as group publisher of Trailer Life, MotorHome and RVBusiness magazines. 6 Travel Country RV Center, a 3 location dealership with 15 manufacturing brands and 30 service bays, is one of the fastest growing RV dealerships in the southeast. Co-founders Ron Fleming (pictured) and B.K. Ison attribute their great success to “exceptional quality, value, customer service, and a software package that has met our needs every step of the way, for the past 10 years.” 407.358.2000 One Software Package From One Company [email protected] www.sys2.com Making RV'ing Possible! “A Person Lift For Your Mobility Needs” RV DEALERS: We can help you increase sales by providing access to RV’s for customers who have difficulty stepping up and down. PERSON LIFTS FOR: • RV's • Boats • Vans • Travel Trailers • Trucks • Aircraft • 18 Wheelers • Housing and more... • Adapts to all RV's - including basement model motorhomes • No Hydraulics • No Slings • 12 Volt D.C. For more information and for a dealer kit on Coach Lift, call: Toll Free 888.224.1425 or 480.456.5438 www.LectraAid.com by S & S Mobility Products, LLC. (Formerly known as Lectra Aid) • Patented 54 Go To: RVBusiness SURVEYS from page 8 The following offers a market share rundown among the top 10 manufacturers in the motorized, towable and recreational park trailer arenas. Motorhomes The top 10 motorhome OEMs for 2006 was comprised of essentially the same players as the previous year, led by Winnebago Industries Inc. with a 19% share of the market. The only shift was Jayco Inc. replacing Newmar Corp. for the No. 10 ranking. But three manufacturers showed significant market-share gains. High-end Class A builder Tiffin Motor Homes Inc. registered a 32.9% market share increase to capture 5.1% of the overall market and swap spots with National RV Inc. to assume the No. 7 position. Forest River Inc. moved from No. 7 to No. 6 while posting a 22.6% gain in market share and Thor Industries Inc. moved from No. 4 to the No. 3 slot with a 12.5% increase. Monaco Coach Corp. and Coachmen Industries Inc. both experienced double-digit market share declines, which Walworth said could be attributed to tightness in the diesel market. Towables Benefiting from acquisitions and riding a wave in the toy-hauler market, Weekend Warrior Trailers Inc. posted a 19.2% market share increase, claiming 3.1% of the overall market while jumping from No. 9 to No. 6. Like the motorhome market, the towable top 10 featured the same companies as 2005. “The top OEMs in terms of market share have remained pretty consistent in the past several years,” Walworth said. The top two towable builders again accounted for the bulk of market share. Thor remained perched atop the pack with a healthy 29% share of the market while Forest River owned a 16.1% share. Companies incurring double-digit drops in market share were No. 3 Fleetwood (-14.6%), No. 7 Coachmen (-27.4%) and No. 10 Skyline Corp. (-13.1%). Park Trailers The top three park-model builders captured more than half of the sector’s overall market share despite showing declines from 2005. Thor, primarily through its Damon Motor Coach subsidiary’s Breckenridge division, was No. 1 with a 22.5% share of the market followed by Skyline (15.2%) and Chariot Eagle Inc. (11.2%). Cavco Industries Inc., a major manufactured home builder, remained at No. 4 but showed a 19.3% jump in market share and owned 8.3% of the overall market. Woodland Park moved from No. 9 to No. 6, registering a 40.5% market share increase to capture 4.3% of the overall market. Athens Park Homes cracked the top 10 at No. 7 with 3.6%. 6 MAY 2007 .com User Guide Contents 007-RVB_0705_LO_TOP3.qxd 4/19/07 4:24 PM Page 55 TOP OF THE NEWS OPINION RETAIL TRENDS from page 12 The RV business is an American icon — invented here and built here with ideas and many decades of sweat and passion. To allow the Chinese to ship product into the United States and steal this industry away from us is crazy. The ‘invasion’ has already started. I-Camp trailers from China were shown last year in the parking lot of a hotel outside the RVIA’s National RV Trade Show in Louisville, Ky. They are not RVIA members and did not pay to exhibit. Rather, they leeched off the industry. They also ship units directly via container to dealership lots, where dealers unload them instead of using haulers to transport them. We are fairly experienced in exporting campers to other countries. Twenty five percent of our business is overseas, and our largest account is in Australia. Last year, there were no Chinese companies marketing RVs in Australia: This year, there are nine. We had one [dealer] with I-Camp in the U.S. last year. Next year you can count on many more. No American company is afraid of competition or quality competition. But to [compete with] dollar-a-day worker’s pay along with [virtually] non-existent tariffs to bring units into U.S. is unfair. Imagine a product that is [built and] sold for $10,000 in the United States. That same product can be copied in China, then shipped and sold here for $6,000. How long do you think American companies will last? We are lambs grazing in a field without a care, while the wolves are circulating around us ready to wipe us out. Please join me in this in the cause to expand awareness among the American people and government officials. It is the single-largest hurdle that this business has faced in its history. 6 Rex C. Willett is vice president of Cedar Falls, Iowa-based R.C. Willett Co. Inc. manufacturer of Northstar Campers. February ’07: Inventories Up Across the Board; Small Dealerships Report Large Sales Gains This is the financial report for the 2-month period ending February 28, 2007. While inancial results represent only a small portion of the year, they may reveal early trends worth watching. All dealership sizes reported increases in new-unit inventory levels, but only the $1 million-to-$5 million segment noted an upswing in new-unit sales. However, that same group reported total dealership gross margins below last year, with a two-month net loss almost 25% greater than the net loss experienced in the first two months of ’06. Larger dealerships also reported net losses for the period, of smaller increments. $1 Million to $5 Million Dealers FEBRUARY YTD New RV Sales Used RV Sales Total Dealership Sales 2007 AVERAGE DEALER $208,176 $44,886 $331,681 14.8% 16.3% 2006 AVERAGE DEALER $177,999 $54,821 $314,652 13.3% 30.1% .com 17.0% -18.1% 5.4% GROSS MARGINS Total Company GM $88,961 GM % 26.8% $89,414 GM % 28.4% -1.6 pts. Expenses Personnel Expense Advertising Expense Total Expenses $76,979 $14,912 $149,105 % GM 86.5% 16.8% 167.6% $71,757 $13,295 $138,120 % GM 80.3% 14.9% 154.5% 6.2 pts. 1.9 pts. 13.1 pts. Net Profit/Loss Net Profit % of Sales ($60,144) (18.1%) (54.5%) 23.5% (67.6%) ($48,706) (15.5%) $5 Million to $10 Million Dealers FEBRUARY YTD 2007 AVERAGE DEALER 14.0% 20.7% 2006 AVERAGE DEALER $437,369 $134,236 $736,859 GROSS MARGINS Total Company GM $192,514 GM % 26.1% $192,512 GM % 25.9% 0.2 pts. Expenses Personnel Expense Advertising Expense Total Expenses $118,664 $18,422 $238,011 % GM 61.6% 9.6% 123.6% $113,741 $19,201 $232,167 % GM 59.1% 10.0% 120.6% 2.5 pts. -0.4 pts. 3.0 pts. Net Profit/Loss Net Profit % of Sales ($45,497) (6.2%) (20.6%) 14.7% (23.6%) $447,412 $135,073 $742,035 ($39,655) (5.3%) 13.6% 20.8% CHANGE New RV Sales Used RV Sales Total Dealership Sales -2.2% -0.6% -0.7% $10 Million and Higher Dealers FEBRUARY YTD New RV Sales Used RV Sales Total Dealership Sales 2007 AVERAGE DEALER $1,487,879 $465,767 $2,425,277 13.5% 17.9% 2006 AVERAGE DEALER $1,512,931 $449,014 $2,395,516 13.5% 19.0% CHANGE -1.7% 3.7% 1.2% GROSS MARGINS Total Company GM $559,968 GM % 23.1% $551,909 GM % 23.0% 0.1 pts Expenses Personnel Expense Advertising Expense Total Expenses $305,120 $47,428 $579,953 % GM 54.5% 8.5% 103.6% $288,512 $47,537 $549,303 % GM 52.3% 8.6% 99.5% 2.2 pts. -0.1 pts. 4.1 pts. Net Profit/Loss Net Profit % of Sales ($19,985) (0.8%) 0.5% -866.8% (3.6%) $2,606 0.1% MAY 2007 Go To: CHANGE User Guide RVBusiness Contents 55 056-RVB CLASS 2007-MAY 4/17/07 12:31 PM Page 56 CLASSIFIED ADVERTISING ACCESSORIES WINEGARD SATELLITE DISHES AND ANTENNAS Authorized Winegard Distributor Established 1967 800-527-4662 • Huntington, WV BUSINESS OPPORTUNITIES $ BUSINESS OPORTUNITY $ 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.elmonterv.com and click on the “Contact Us” link and select “New Dealer Inquiries”. BUSINESSES FOR SALE 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. RV SALES & SERVICE. Past 5 years grossed $728,582. Priced to sell at $49,000 + inventory. Long lease avail on 3 bay shop, parts & sales. Now is the time to buy while inventory is low. [email protected] or (386) 985-4968. CONSULTANT/TRAINING JOHN MANCINELLI 35 year RV industry veteran Consultant – to all RV retail segments Trainer – 2 1/2 day sales training workshop [email protected] 270-793-0509 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 DEALERSHIPS FOR SALE RV DEALER FOR SALE! Great Gulf Coast Location. Gross revenue $3 Million, Cash flow $240,000. Seller Financing. 800-816-6064 © HELP WANTED ONE OF THE MIDWEST’S LARGEST and most progressive thinking RV Dealers is looking to take its Parts Department to the next level. Good qualified staff is already in place, all they need is you to guide them. If you are a successful RV Parts Manager who wants to be recognized for his/her accomplishments, this is an opportunity for you. If you possess strong Marketing, Personnel Motivation, and Inventory skills, we should talk. Send resumé to Bill Petty, Howard RV Supercenter, PO Box 510265, Oakville, MO 63151. NATIONAL ADVERTISING SALES Dominion Enterprises, the leading US photo guide/classified publisher, seeks an individual to sell and manage national advertising accounts for RVTraderOnline.com. Qualifications: proven track record exceeding sales goals & developing new business. Excellent computer, as well as oral & written communication skills. Strong understanding of the Internet and advertising. Respond with ad code KA-RVTOL, including resumé & salary history to: RVTraderOnline.com, Attn: KA Manager, 150 Granby St., Norfolk, VA 23510. Or email [email protected], Fax (866) 703-4084. (No calls.) EOE, Drug Testing Employer CLASSIFIEDS Use this form or your own stationery to submit your ad copy! Classified Ads — Priced at $16 per line, 40 characters and spaces per line, five-line minimum. Ad closing for the July issue is May 8. This issue reaches subscribers June 29. 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 56 Go To: RVBusiness MAY 2007 .com User Guide Contents 007-RVB_0705_LO_TOP 4/19/07 1:33 PM Page 57 TOP OF THE NEWS 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] 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 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 WARRANTY COLLECTION ARE YOU BEING PAID for all the warranty work your service department is doing? If not, call (614) 440-2014 BRIEFS from page 18 2006 it sold 6,875 new and pre-owned RVs in the retail market. Lazydays Profits Shrink. Lazydays RV Center Inc., the nation’s largest single-site RV dealership, reported a net loss for its fourth quarter, contributing to a decline in net income for the year. The Seffner, Fla.-based dealership reported a fourth-quarter loss of $864,900 on sales of $170.5 million, down from $185.4 million a year earlier. For the full year, net income totaled $1.8 million compared to $4.06 million the year prior, while revenues dipped to $757.3 million from $804.2 million. Lazydays reported that in ’06 Conversion Shell Shipments Down. Although wholesale shipments of inter-city motorcoaches increased 15.7% in 2006, deliveries of conversion bus shells used to build luxury Class A motorhomes and other vehicles fell 11.8% to 281 units, according to National Bus Trader magazine. Motorcoach shell shipments for 2006 totaled 2,381 units, an increase of 332 compared to 2005, the vast majority of them equipped with seats for use by bus lines and tour companies. 6 PATRICK IND. from page 12 revenue in 2006, has three facilities in Elkhart as well as manufacturing facilities in eight other states. Patrick said the acquisition will be funded through “both debt and equity financing, which will be structured to provide additional liquidity to facilitate the combined companies’ future growth plans and working capital needs.” Financing will include the purchase of 980,000 shares of Patrick stock by Tontine Capital Partners LP, currently TRANSPORT from page 10 created in the province in the last decade, according to the Alberta Department of Economic Development. The demand for RVs in Alberta is spread among residential housing, work use and traditional recreation, according to Daryl Dnistransky, a salesman with Leisureland Camper Village Ltd. in Grand Prairie. He said some of the units are going to the gas-andoil industry for housing into areas such as Fort McMurray, six hours northeast of his city. However, units for year-round use must be built for temperatures that reach minus 40˚C., he noted, which rules out most of the towable units built in the states. Goodwin said U.S.R.V. Transport used to employ some Canadian drivers for deliveries but dropped the policy several years ago. It’s necessary to revive it, he said, because of the shortage of U.S. drivers plus the frequency of Canadian authorities denying entry to some of his drivers. He’s had 50 of his drivers denied access to Canada already this year. He estimated that one in 10 U.S. delivery people “get turned back at the border a significant shareholder. “Adorn’s products provide a strong complement to our existing product lines, while broadening our reach in the industrial sectors,” said Paul Hassler, president and CEO of Patrick Industries. With Patrick Industries reporting 2006 revenue of $348 million, the combined entities together account for approximately $588 million in total revenue. Todd Cleveland, president and CEO of Adorn, noted, “I am truly excited about the new opportunities the combination will provide for our valued customers, team members and suppliers.” 6 because they have an infraction that prevents them from going in.” Right now the company uses 125 American drivers to deliver the RVs to dealerships in Alberta cities such as Calgary, Red Deer, Edmonton and Grande Prairie, Goodwin said. He identified OEMs such as Keystone RV Co., Gulf Stream Coach Inc., Adventure RV Manufacturing, Heartland RV LLC and Forest River Inc. as the leading U.S. firms sending RVs to Canada. “All of these companies are doing a huge Canadian business,” he said. “Our industry is alive and it is well.” Most of these firms are based in Indiana’s Elkhar t County where, according to Goodwin, an estimated 6,500 drivers for a variety of transport firms are based. Goodwin hopes to hire 200 Alberta-based drivers who would make the long trek to Wakarusa to pick up the RVs and tow them back to Canada, usually over four to five days, Goodwin said. The trip pays about $1,800 U.S., expenses included. Some drivers, after their initial orientation, may be sent to Oregon to relieve that depot’s backlog, too, Goodwin said. If he gets enough drivers, he’ll integrate them into deliveries for the rest of Canada as well, he added. — Steve Bibler MAY 2007 Go To: .com User Guide RVBusiness Contents 57 Calendar 058-RVB_0705_LO_Calendar 4/18/07 6:50 PM Page 58 OF EVENTS MAY 1-3 ARVC’s National Issues Conference Cherry Hill Park College Park, Md. (703) 241-8801; www.arvc.org MAY 2-6 Puyallup Home & RV Show Western Washington Fairgrounds Puyallup, Wash. (425) 277-8132; www.mhrvshows.com MAY 17-20 Spring Mall RV Show West Palm Beach Mall West Palm Beach, Fla. (813) 741-0488; www.frvta.org JUNE 2007 JUNE 1-3 Tampa RV Super Show Tampa Fairgrounds Tampa, Fla. (941) 827-7144; www.rvexpo.net SEPT. 13-16 Atlanta Camping & RV Fall Show Atlanta Expo Center South Atlanta, Ga. (770) 447-3334; www.atlantarvshow.com SEPT. 27-30 Indianapolis Fall Boat & RV Show Indiana State Fairgrounds - West Pavilion Indianapolis, Ind. (765) 641-7712; www.renfroproductions.com JULY 2007 SEPT. 13-16 Fall RV & Outdoor Recreation Show Qwest Field & Event Center Seattle, Wash. (425) 277-8132; www.mhrvshows.com SEPT. 28-30 RV Marketplace Rockland Community College Field House Suffern, N.Y. (845) 343-2772; www.rocklandexpo.com SEPT. 14-16 2007 Fall RV & Boat Sale Kansas Speedway Kansas City, Kan. (816) 931-4686; www.fallrvandboatsale.com SEPT. 28-30 New York State RV Show New York State Fairgrounds Syracuse, N.Y. (800) 542-6017; www.eastcoastshows.com SEPT. 20-23 Mid-America Spectacular Show & Sale Fort Worth Convention Center Fort Worth, Texas (817) 335-1211; www.ftworthrvshow.com SEPT. 29-OCT. 7 Salon Des Vehicules De Loisirs Leisure Vehicles Exhibition Parc des Expositions de Paris - Le Bourget 93350 Le Bourget, France (33)0143378661; www.salon-vehicules-loisirs.com JULY 7-14 North American Truck Camper Rally & Show Lake Ogallala State Park Ogallala, Neb. (604) 575-0911; truckcampershow.com AUGUST 2007 AUG. 13-16 FMCA’s 78th International Convention Deschutes County Fair and Expo Center Redmond, Ore. (513) 74-3622; www.fmca.com AUG. 15-19 Lake County RV & Camper Show Lake County Fairgrounds Grayslake, Ill. (847) 934-8300; www.lakecountyrvshow.com AUG. 24-26 Georgia RV & Camper Show North Atlanta Trade Center (770) 279-9899; www.northatlantatradecenter.com SEPT. 8-9 Vermont Fall RV Show Champlain Valley Expo Essex Junction, Vt. (800) 542-6017; www.eastcoastshows.com SEPT. 10-16 PA RV & Camping Show Hershey Park Entertainment Complex (888) 303-2887; www.largestRVshow.com Go To: RVBusiness OCTOBER 2007 SEPT. 25-28 RV Dealers International Convention Expo, featuring the RV Learning Center Rio All-Suite Casino Resort Hotel Las Vegas, Nev. SEPTEMBER 2007 58 SEPT. 23-24 RVIA Board Meeting Venetian Hotel Las Vegas, Nev. OCT. 3-7 Detroit Camper & RV Show Rock Financial Showplace Novi, Mich. (517) 349-8881; www.marvac.org SEPT. 27-30 Southwest RV SuperShow Dallas Market Hall, Dallas, Texas (512) 327-4514; www.trva.org OCT. 11-14 Fall RV Show & Closeout Sale Oklahoma State Fairgrounds Oklahoma City, Okla. (405) 376-3897 SEPT. 27-30 2007 Fall RV Show Cal Expo, California State Fairgrounds Sacramento, Calif. (800) 782-7469; www.rvshow.com OCT. 12-21 55th Annual California RV Show Fairplex Pomona, Calif. (951) 274-0696; www.carvshow.com MAY 2007 .com User Guide Contents 059-RVB05 PG 59 TRAILMANOR 4/16/07 10:00 PM Page 59 “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 119 ON READER SERVICE CARD Go To: .com User Guide Contents 004-RVB05 PG CV4 GE COMMER 4/16/07 9:59 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 115 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 at [email protected]