Airxcel, Inc, Acquires
Suburban Mfg.
Mel Adams, president and chief executive officer,
Airxcel, Inc., announced that his company has acquired Suburban Manufacturing Co., a
manufacturer of RV furnaces, water heating and cooking appliances. It will operate under
its existing name as a subsidiary of Airxcel.
James H. Peden will continue as president of Suburban.
Adams said, "We are extremely pleased that Suburban
Manufacturing is now a part of our organization. Suburban's success and position as a
market leader in the manufacture of appliances nicely complements the output of our RV
Products Division."
Forecast
RVIA Economist Optimistic About 1998
John DeWolf, economist and consultant to RVIA, remains
optimistic about the immediate future of the RV industry. Writing in RV roadsigns,
a newsletter for RVIA members, he said, "We look for shipments to climb from their
present rate of 254,500 to just under 257,000 units per year in 1998 and to gain another
10,000 units or so in 1999. This is just about what we were predicting in our last RV
roadsigns. We look for shipments this year to be up 1% from 1997, with theannual rate
reaching 270,000 units in the third quarter of 1999 -
continuing with small annual gains for as far ahead as we can see."
DeWolf predicts that towables will account for most of
the gain in shipments this year. He said, "We see shipments of all towable RVs
gaining 1.6% for the year, to 202,700, the largest total for these products since 1978.
Biggest gainer should be fifth-wheel travel trailers, up nearly 3.6%
"By contrast, motorhomes will be down nearly 2% for
the year, with almost all the loss coming in Type C motorhomes. Towables should continue
to gain very slightly through 1999 and motorhomes should improve some as well.
RVIA Honors Industry Leaders
Thetford's Larime Receives Top Award
RVIA bestowed its most prestigious honor, the
Distinguished Service to the RV Industry Award, to Mike Larime of Thetford Corporation at
the association's annual meeting in March.
 |
| Those receiving awards at
RVIA's annual meeting were Airxcel's Mel Adams, National Education Service Award; Ford
Motor Company's Jerry Mittman, RV Automotive Achievement Award; Thetford Corporation's
Mike Larime, Distinguished Service to the RV Industry Award; and Coachmen Industries'
Claire Skinner, National Legislative Award. |
Larime was recognized for his active participation in
many arenas within the association and his innumerable contributions over the years. The
Distinguished Service Award is presented annually to an individual within the RV industry
who has demonstrated outstanding service over a long
period of time.
Larime served as RVIA's chairman in 1995 and 1996 and has
sat on the board of directors since 1993. He currently is chairman of both the Strategic
Planning and Public and Legislative Affairs committees and is also a member of the Public
Relations and Supplier committees. He is executive vice president and chief operating
officer at Thetford.
National Legislative Award
Claire Skinner, chairman of Coachmen Industries, Inc.,
was the recipient of the National Legislative Award, which recognizes individuals who
distinguish themselves in legislative matters pertaining to the RV industry.
She was honored for her tireless efforts to protect the
interests of the RV industry through her consensus-building and insightful testimony on
landmark legislation.
National Education Service Award
The National Education Service Award was presented to Mel
Adams, president and CEO of Airxcel, Inc. This award is for individuals who have been
instrumental in the development of educational programs for the RV industry.
Adams was recognized for his avid support of the RV
Service Technician Certification, the National Recreation Vehicle Training Institute and
Trouble Shooter Clinic programs.
Automotive Achievement Award
Jerry Mittman, recreation and specialty vehicle sales
manager at Ford Motor Co., received the RV Automotive Achievement Award, which recog
nizes a person from the auto industry who has made
outstanding contributions to the RV industry.
He was honored for his innovative approaches to industry
needs and his commitment to advancing the RV and conversion vehicle markets.
National Service Award
The National Service Award is being awarded to Gaylord
Maxwell, who through his journalistic work and seminars has educated thousands of
consumers about the benefits and joys of RVing. He is being cited for his lifetime
commitment to introducing non-RVers to the lifestyle and strengthening the ties of current
RVers to their vehicles and the camaraderie of friends met on the road.
National Standards Award
The Distinguished Achievement in RV Standards Award is
being awarded to Bob Wozniak, director of engineering services at Fleetwood Enterprises.
He is being honored for the significant impact he has had on the quality of the industry's
standards programs.
Wozniak has been an active member of eight
Standards-related committees since 1987. He is currently the chairman of both the EPA/CARB
and Vehicle Chassis Technical subcommittees and sits on five other committees.
New Keystone Plant For Springdale Line
In January Keystone RV Co. moved into a new 35,000 square foot facility in
Goshen, IN, which was built to meet the growing demand for the company's Springdale travel
trailers and fifth wheels. The new plant has a capacity of 20 lightweight units per day.
Holiday RV Superstores Steps in to Aid in
Central Florida Relief
When a tornado hopscotched across central Florida in February,
Holiday RV Super-stores, Inc., immediately stepped in to provide RVs to be used as command
centers for the Osceola Emergency Disaster Team. Working with FEMA, Holiday RV helped
bring much-needed aid to tornado victims.
The Osceola County tornadoes claimed at least 22 lives, packed
winds exceeding 207 miles per hour. Property damage is estimated to be over $25 million.
RVDA Board Drops RV Business
Magazine as Sponsor of Dealer of the Year Award
The RVDA board approved a motion that will set up an RVDA
Dealer of the Year Award. RVDA will invite a panel of disinterested parties to participate
in the judging. In the past, RVDA has worked with RV Business magazine that co-sponsored
the award.
In other board actions, RVDA approved Las Vegas as the
western site for the RV Dealers' annual convention in odd-numbered years through the year
2005. In even-numbered years, the convention will be held east of the Rockies at cities to
be determined. The 1998 event will be in Minneapolis, followed by the 1999 convention in
Las Vegas, and then the convention will be in Orlando in the year 2000.
RVDA also approved a motion that will continue RVDA's
policy of representing RV dealers in general with other segments of the industry.
And finally, the board approved a new logo for
RVDA-endorsed products and services. The distinctive logo will help members easily
identify the RVDA endorsement.
Dealer Relations, Industry Unity Remain
Top RVIA Priorities
RVIA president Dave Humphreys stressed to members
attending the annual meeting that improving dealer relations remains the top priority for
the association.
"As an industry, we need to minimize the friction,
while maximizing the partnerships between manufacturers and dealers," Humphreys said.
"This is an important time in our history, and we need to re-double our efforts to
stamp out problems that still remain."
As proof of the progress being made in
manufacturer/dealer relations, Humphreys cited the fact that RVDA invited RVIA to
participate in RVDA's recent strategic planning conference.
"On most issues, we were all on the same page. In
fact, the group estimated that both sides are in agreement 95 percent of the time,"
he said. "It's the other five percent that we need to address."
He noted that RVIA would continue to work with RVDA
nationally as well as with state dealer organizations to determine what can be done to
eliminate the small percentage of conflict.
In an effort to strengthen and advance unity throughout
the industry, Humphreys suggested that solutions must be totally fair to all sides.
"Dealer agreements should be fair agreements that
are easily enforceable," he said. "This approach will be far better for the
industry than a legislative approach."
"A good lawsuit is not a solution, and legislation
is not a panacea," he said. "Instead of having a level playing field where the
government makes the rules, we need to have an open, competitive market where companies
are rewarded for doing things right."
Humphreys emphasized that despite disagreements on some
issues, the overall level of unity remains one of the RV industry's simple greatest
strengths. This is quite unlike the boating and manufactured housing industries, both of
which continue to suffer through internal conflict.
"We are basking in the limelight of industry
unity," Humphreys said. "Our industry is 'in,' 'hot' and 'hip' right now. If our
unity is eroded that will be lost, and we will never accomplish all that we can. I urge
everyone to cherish our unity and to refocus their commitment to preserving it."
Louisville Show Exhibitor Costs
Increased - Other RVIA Board Actions
The RVIA board of directors wrapped up the association's
1998 annual meeting by approving several motions related to the National RV Show at its
meeting in March.
A three percent increase on exhibit space rates at the
1998 National RV Trade Show was passed in order to keep event revenues in line with rising
costs.
Show hours were also changed for this year
with the event being open from 9 a.m. -- 5:30 p.m. on Tuesday, Dec. 1, and Wednesday, Dec.
2, and from 9 a.m. -- to 5 p.m. on Thursday, Dec. 3. The show had been open until 6 p.m.
on Tuesday and Wednesday.
After voting not to support a separate park trailer
show in conjunction with the National RV Trade Show in Louisville, the board
approved a motion to restore the seniority rights to park trailer exhibitors for the RVIA
event.
Further, a recommendation that park trailer exhibitors
continue to be limited to 1,000 square feet of exhibit space when it is necessary to
allocate space in the National RV Trade Show was passed. If it is necessary to impose
allocation of space, all manufacturer
exhibitors are subject to restrictions.
The board also moved to give manufacturers of both RVs
and park trailers the option to exhibit both products together in one booth at the
National RV Trade Show. If space allocation is instituted, no more than 1,000 net square
feet of exhibit space may be devoted to park trailer displays within the exhibit.
In actions relevant to the California RV Show, the
board approved a $15 per booth increase on supplier space rates and voted to
exercise RVIA's option to lease the Fairplex for the event through 2001.
The board also endorsed a motion that RVIA revise
how the association reports RV shipments so that there is a clearer distinction
between the RV and conversion vehicle markets.
A $20,000 contribution was approved for an American
Recreation Coalition fund that will be used to hire a lobbyist to fight the Teaming with
Wildlife initiative, a proposal that would levy taxes on recreation products, including
RVs, to finance non-game wildlife conservation programs.
RVIA Opposed To RPTIA's Planned
Park Trailer Show In Louisville
RVIA's board of directors reviewed a request from RPTIA's
board at their March 1998 meeting. According to Bill Garpow, executive director, the
request asked for RVIA's co-operation and assistance in making the planned Louisville Park
Trailer Trade Show compatible with RVIA's Louisville show that would run concurrently. He
said, "The request addressed several joint activities including: a mutual
registration system; a central marshaling yard; and an inter-show bus transportation
system. Additionally, a mutual agreement that both shows would only provide exhibit space
for the products represented exclusively by each sponsoring association was requested.
RVIA's board did not address the specific requests but instead, responded by voting not to
support a Park Trailer show during the National RV Trade Show in Louisville.
"They felt that such a show would not be in the best
interests of their (RVIA's), members. However, RVIA did pass a resolution to immediately
reinstate RVIA's show seniority rights to all RPTIA members who have participated in the
show for six or more consecutive years. This action will allow Park Trailer exhibitors
(with seniority) to participate in the first drawing for exhibit space. The seniority
rights were taken away from all Park Trailer
Exhibitors effective with the 1995 RVIA show, following the decision that RVIA would no
longer represent Park Trailers as a product after Oct. 1, 1994.
RPTIA Louisville Park Trailer Show
Delayed
Construction delays at Louisville's downtown Commonwealth
Convention Center (CCC), now undergoing a major expansion, have affected the dates that
Recreation Park Trailer Industry Association (RPTIA) holds for its Park Trailer trade
show. RPTIA planned to have its inaugural show November 30 - December 2, 1999, coinciding
with RVIA's dates at the Kentucky Fair and Exposition Center. Bill Garpow, executive
director of RPTIA, said, "Unfortunately, the space we had reserved at the CCC will be
impacted by construction delays involving the entrance ramps and the lobby area which will
be undergoing improvements at that time. It may be possible to shift our space
requirements for these dates to the new exhibit facility now under construction but our
move to the new halls would be subject to accessibility and availability. Dates and
exhibit space for the year 2000 and beyond are firm.
The CIT Group Makes Special
Contribution to RVDA Education Foundation
 |
| At the check presentation
are (l-r): Jerry Greer, Foundation President; Guy Veni, executive vice president, The CIT
Group Sales/Financing; Rick Horsey, RVDA chairman; and William Giles, vice president and
national RV product manager, The CIT Group Sales/Financing. |
The CIT Group/Sales Financing presented a check for
$22,500 to RVDA Education Foundation president Jerry Greer at a special luncheon during
the RVDA board meeting in Tampa on March 3. The CIT Group contribution is the largest
single gift in the Foundation's history.
Guy Veni, executive vice president, The CIT Group/Sales
Financing, who presented the check, said, "The CIT Group has a long history of
supporting RV dealers and this contribution represents a natural extension of our
company's involvement in the industry. We are dedicated to the RV business for the long
term and share the Foundation's vision for enhancing professionalism in RV
retailing."
Greer said, "We are pleased The CIT Group is now a
part of the Foundation's work to provide excellence in education for RV dealers."
Also participating in the check presentation were William Giles, vice president and
national RV product manager, The CIT Group/Sales Financing, and RVDA chairman Rick Horsey.
Kit Shuts Down McPherson Facility
Kit Manufacturing Co. reports that its McPherson, KS
facility will be closed immediately. Kit will continue its service operations at that
facility.
Patent Upheld for 12-Volt Fluorescent
Ballast
Sunbeam Trailer Products, Inc. has announced that the
patent for their Sunray TS (tube saver) ballast was challenged; however, they have just
received word that the U.S. Patent office has upheld their patent, thereby confirming the
unique ballast circuitry design.
Fred Muzic, president of Sunbeam, said that all of their
Sunray 12-volt fluorescent lights are equipped with their patented ballast. He also said
that this ballast is preforming far above all expectations, and that the reliability far
exceeds any competitive product.
Affinity Group Posts 1997 Results
Affinity Group Holding, Inc., reported 1997 revenues of
$304.7 million and a net income of $3.5 million compared with 1996 revenues of $140.0
million and a net loss of $1.5 million. The 117.7 percent increase in revenues was
primarily attributable to the operations of Camping World, Inc., acquired in April, 1997.
Included in 1997 net income is a $0.5 million loss, net of income tax benefits totaling
$0.2 million, recognized on the discontinuance of certain operations and a $0.4 million
loss, net of income tax benefits totaling $0.2 million, recognized on the early
extinguishment of debt. Income from continuing operations was $4.1 million in 1997
compared to $5.1 million in 1996, a decrease of 20.2 percent.
RPTIA Now On The Internet
According to Bill Garpow, executive director of RPTIA,
Recreation Park Trailer Association (RPTIA) has a site on the Internet. He said,
"Members of the industry, government officials and potential Park Trailer customers
now have immediate access to the association's information posted on the RV America On
Line web site.
Garpow said, "Included on our site is a listing of
available publications, the names and contact information for RPTIA's members, information
detailing the Association's Standards Enforcement Program, and a news release outlining
what a Park Trailer is, who our customers are and how they use and enjoy their Park
Trailers.
Provided as an industry service by RV America (RV
News) the new web site can be accessed at http://www.rvamerica.com
/rptia/.
Monaco Announces a 3 For 2 Stock Split
Monaco Coach Corporation (Nasdaq: MCCO) announced that
its board of directors has approved a 3 for 2 split of its common stock. The stock split
will be effected as a stock dividend. Stockholders of record as of the close of business
on April 2, 1998 will be issued a certificate representing one additional share for every
two shares held on the record date. These certificates will be distributed on April 16,
1998. The stock split will increase the number of shares of common stock outstanding from
approximately 5,500,000 shares to 8,250,000 shares.
Study Charts Current and Potential Growth
in RV Ownership
The University of Michigan's fifth major study of the RV
market for RVIA indicates that even as RV ownership continues to increase, demographic
trends hold tremendous opportunity for the industry in the coming decade.
Ownership Trends & Demographics
The number of households owning an RV in 1997 rose to the
highest level ever recorded, amounting to nearly 8.6 million owners. This is a 5 percent
gain since the last study in 1993, and an 18 percent increase since 1984.
Ownership rates rose slightly to 9.8 percent of
vehicle-owning households from 9.6 percent, representing the highest ownership rate in the
past two decades.
The survey charted increases in the ownership of
motorhomes, travel trailers and folding camping trailers. The gains in motor-homes and
folding camping trailers brought their ownership rates to the highest level ever recorded.
The growth in travel trailers make them the most commonly owned RV.
One-third of RVs were purchased new by their current
owners. This is an increase over the one-in-four ratio in 1993 and returns the share of
vehicles purchased new to the same high level recorded in 1988.
The typical RV owner is 48 years old, has an income of
$47,000 and is married. Motor-home owners are the oldest and least likely to have children
under 18 living at home. Folding camping trailer owners are the youngest and most likely
to have children at home.
Ownership rates rose consistently by about three
percentage points for each successive 10-year age bracket until 65. Among householders
aged 55 to 64, an impressive 16.4 percent own some type of RV.
The Boomer Potential
The aging of the enormous baby boomer population means
there will be a significant in-crease in the numbers of consumers entering the prime RV
owning age range.
By the year 2010, the number of households aged 55 to 64
will have grown by 8 million, a 63 percent increase. A gain of 6.1 million households will
be recorded among those aged 45 to 54, an increase of 32 percent. Importantly, these large
gains will be in the age ranges that have traditionally recorded the highest RV ownership
rates.
Assuming that age-specific ownership rates remain
un-changed as boomers age and that all other factors remain constant except for the impact
of the changing age distribution, the study projects that RV ownership rates will rise
from 9.8 percent to 10.4 percent in 2010.
This would result in the number of households owning RVs
growing to 10.4 million from 8.6 million -- a 21 percent gain.
During the past decade, the number of RV-owning
households grew by roughly 100,000 per year. With constant age-specific ownership rates,
growth over the next decade is projected to average nearly 140,000 per year.
The University of Michigan provided these projections to
illustrate the potential impact from the aging baby boomer population and urged that they
be considered with caution as is the case with any long term estimates of consumer demand.
Thor Announces 3 For 2 Stock Split;
February Sales Up 26%
Thor Industries, Inc. (NYSE: THO) has declared a
three-for- two stock split. The split was payable on April 6 to shareholders of record on
March 21, the company said, increasing common shares outstanding from 8,148,739 to
12,223,108. The company plans to pay a quarterly dividend of 2 cents per share after the
stock split, thus maintaining the dividend amount paid to stockholders.
Wade F. B. Thompson, company chairman, said, "This
action increases the market liquidity for our stockholders and reflects Thor's strong
earnings growth. It is our third 3 for 2 stock split since 1986. February sales were up
26% over last year with both RV and Bus revenues up strongly. Our newly acquired Champion
Bus received an order for 66 SoLo low floor, low emissions buses totaling $16 million from
VIA Metropolitan Transit, San Antonio, TX. Bus backlog is now over $100 million."
