INDUSTRY NEWS
February 1997

Koerselman and Mulder Sell Demco Shares:
Doug Beukelman New President and CEO

Doug Beukelman President and CEO Demco Products

Jim Koerselman and Ken Mulder, owners of 63 percent of the stock of Dethmers Manufacturing Co. (Demco) of Boyden, IA, announced the sale of their shares to a group of the management team of Demco and the Employee Stock Ownership Plan (ESOP). With the ESOP in place and a very strong management team at Demco, Koerselman and Mulder have decided that succession should take place. In order for this process to proceed, they have decided to sell the remainder of their stock. When the transaction is completed in the first quarter of 1997, the ESOP will own approximately 60 percent of the stock and there will be nine other shareholders. This group will include: Doug Beukelman, Stan Hulstein, Jerry Mulder, Don Damstra, Bob Koerselman, Tom Sheffield, Ron Damstra, Jayme Koerselman, and Kevin Ten Haken.

From the group of new owners, Doug Beukelman will be the president and CEO and will develop a senior management team to assume the leadership responsibilities when Jim and Ken step down. Koerselman and Mulder will be involved in the transition period and they will also be involved with Demco in the future on a consulting basis.

Demco is a diversified manufacturer of tow dollies and tow bars for the RV market. Demco also produces products for the agricultural, rental and marine markets. In addition Demco Printing provides full-service commercial printing to a variety of customers nationwide.

Safari Buying Chevy Cutaway Chassis from Other Manufacturers

While some manufacturers are dissatisfied with Chevrolet's new G3500 RV cutaway chassis with a Vortex 7400 V-8 engine, Safari Motor Coaches is taking all they can get their hands on. According to Martin Perlot, general manager, marketing, Safari is buying chassis from other manufacturers as well as taking all they can get from Chevrolet.

The question comes to mind is why does Safari wants the new Chevy chassis and other manufacturers don't.

According to Chevrolet's Jim Brieske, manager-RV/Commercial, Commercial Specialty Vehicles Department, some Class C chassis makers complain that the coach built on the chassis has a tendency to rock excessively while parked when someone walks around. He also confirmed that some RV manufacturers have their Class C motorhome production on this chassis on hold, awaiting a retrofit on chassis.

Brieske told RV News, "Chevrolet designed the chassis for optimum driving comfort; however, some RV makers believe suspension is too soft which allows the rocking when the motorhome is parked. In addition, they think there is a slight sag in the rear."

Chevrolet has planned a fix. In January, the existing chassis will be modified from tapered leaf to spring leaf springs which will add more rigidity to the suspension. In addition, Chevrolet is adding a spacer to fix the sag. In the meantime, production has been suspended, but is expected to resume this month when the modification will be added on the production line.

Sims Elected 1997 National ARVC Chairman

Jeff Sims, Compton Ridge Campground, Branson, MO, will serve as the chairman of National ARVC for 1997. Sims was elected by the association's board of directors in November. He succeeds Elaine Boissevain, CPO, Highland Orchards Resort Park, North Stonington, CT.

Also elected to serve with Sims during 1997 are: Chuck Hays, CPO, Far Horizons 49er RV Park, Plymouth, CA, first vice chairman; Don Toms, Point Sebago RV Resort, Casco, ME, second vice chairman; Mitch Parker, CPO, Frontier Town Campground, Ocean City, MD, treasurer; and Dick Whalen, CPO, Dunedin RV Resort, Dunedin, FL; secretary.

Fleetwood Reports Upswing in Backlog Levels

After Fleetwood Enterprises, Inc., said it was experiencing softening demand for manufactured homes and recreational vehicles and that order backlogs were below year-ago levels, Fleetwood's stock dropped dramatically.

In mid-January, the RV side of Fleetwood's business saw an upsurge in dealer orders, according to Elden Smith, senior vice president RV Group. He told RV News, "We are seeing strong dealer orders especially for motorhomes and fold down campers. We are encouraged that the slowdown we saw late last year is coming to an end."

Ford Exec to Keynote RVIA Annual Meeting

RVIA's 1997 Annual Meeting, scheduled for March 5 - 9 at Marriott's Camelback Resort Inn and Spa in Scottsdale, AZ, will feature an address by Ross Roberts, vice president of Ford Motor Company and general manager of the Ford Division. Roberts is scheduled to speak March 8.

The keynote is part of RVIA's annual membership meeting, which also includes RVIA chairman Bill Prinz's "state of the association" address and an update from RVIA president Dave Humphreys on RVIA and American Recreation Coalition activities. In addition, Go RVing chairman Tom Faludy will update RVIA members on recent public relations and advertising initiatives. RVIA will also bestow its annual awards, including the coveted Distinguished Service to the RV Industry Award.

Spartan Motors Receives 330 Orders for New Motorhome Chassis

Spartan Motors, Inc. (NASDAQ:SPAR) has received more than 330 confirmed orders for its new independent front suspension (IFS) motorhome chassis. This new business brings Spartan's total chassis order backlog to $68.4 million, its highest level in five quarters,

Wes Los RV Center on the Internet

Weslos RV Center, headquartered in Vacaville, CA, recently launched its Internet web site which is hosted by RV America On Line®. Weslos RV Center uses the web site to inform potential customers about the dealership's services and products, such as Fleetwood, Kit, Skyline and Palomino camping trailers. According to Glenn Starkey, president, the dealership recently added Pinnacle motorhomes to its product line-up and will be adding that information to the site in the near future.

The Weslos web site Internet address is: http://www.rvamerica.com/weslos/ and their e-mail address is weslos@rvamerica.com.


Forecast

Economists DeWolf Predicts Little Change in RV Market for 1997

RVIA economist John DeWolf wrote in the latest issue of Roadsigns, an economic forecast newsletter, "It is now apparent that the economy is settling into a period of below-average growth that began in the third quarter, and will last through much or all of 1998. This will have some affect on RV sales, but nothing drastic. We don't see shipments in any quarter dropping below an annual rate of 235,000 units - which is better than any recent year except the last two."

Dewolf predicted that RV shipments would be 245,100 units for 1996, down less than 1% from 1995. He added, "Our forecast is for a drop of about 3%, to 237,400 in 1997. Low quarter for this business cycle, at a seasonally adjusted annual rate, should be 1997's 3rd quarter, which means 1998 will almost certainly be a little higher than 1997."

He said motorhomes will gain about 1% in 1996 and should fall back 1% in 1997. Towables, which should be down about 1.6% this year, will fall off less than 4% in 1997.

RV Products Receives Award from Damon Corporation

Recreation Vehicle Products was presented the 1996 "Top 10 Supplier Award" from Damon Corporation.

Mel Adams (r), president of RVP, said, "We are very proud of this fourth consecutive annual Damon Supplier Award. The process to determine awardees involves a significant number of Damon people and that makes this and past awards more meaningful."

Nick Eppert (c), vice president of procurement for Damon, said, "Criteria for the award, determined by all departments of the Damon Corporation, is based on service, quality, partnerships, pricing, cooperation and honesty."

Joining Adams at the award presentation was Jim Woodruff (l), eastern area manager of RVP.

Coast Dealer Specials To Be Monthly Advertising Feature in RV News

Beginning with this edition, Coast Distribution's bi-monthly dealer specials will become a regular advertising feature of RV News, according Tim McGuire, CEO, Coast Distribution. McGuire said, "As in the past, Coast's special dealer pricing will be available for two months and will be featured every month in the magazine. This new advertising program will also allow our dealers to take advantage of a custom sale flyer for their dealership, through RV News, at a significant savings over what it would cost them to produce it themselves."

The format for the specials includes seven 4-color pages of products with suggested retail sale pricing and an eighth page that features the Coast special dealer sale pricing for both the U.S. and Canada. The 5-percent extra discount "Sale Tag" dealer pricing will also be listed. Dan Holt, publisher of RV News, said, "With the addition of the dealer's logo on the front cover and a full- custom back cover, Coast's specials become an eight-page, 4-color custom retail sale flyer that will be available directly from RV News."

For more information on Coast's "Sale Tag" savings program see the article below or contact the Coast Order Desk at 1-800-495-5859 (or 1-800-361-5227 for Coast's French Canadian order desk in Quebec).

Shelter Components Appoints New President

G. Ray Stults has been named president and COO of Shelter Components Corporation, according to Larry D. Renbarger, CEO. As president of Shelter Components Corporation, Stults will assume full responsibility for all the day to day operations of the company. All operating divisions and all resource operations will report to Stults.

Shelter Components Corporation, through its operating companies, manufactures and distributes a broad array of products primarily to the manufactured housing, modular housing, and recreational vehicle industries.

construction materials such as wood or aluminum tube framing, fiberglass and aluminum sidew, all skin as well as rubber roofmg material.

RV News Now Available in Canada

After a sabatical of several years, RV News magazine is once again available in Canada to professionals in the Canadian RV industry. According to Dan Holt, publisher of RV News, the initial Canadian circulation will be in excess of 1,500 companies and individual industry members. Holt said, "In addition to providing Canadians with information about the latest developments in the industry, which effect the Canadian market as well, we wanted to offer our advertisers access to this market. We have been told by Canadians that there is a real void of industry information in their market and they have encouraged us to make RV News available to them."

The demand by potential Canadian subscribers has always been high, but in order for Canadians to receive RV News it was on a paid subscription basis. Now, Canadians can receive the monthly magazine at no cost by simply filling out the subscription application (must be signed and dated) then either mail or fax it to the RV News office. (See page 46 for subscription form.)

Holt added, "The cost to print and mail into Canada adds a substantial expense to our cost and in the past the lack of support from Canadian advertisers forced us to make the decision to cease mailing to Canada. However, we feel the time is right to reintroduce RV News in that market, and we are committed to giving the Canadian RV industry the same benefits that the U.S. market has received for almost a quarter century."

Allemans Named 1996 KOA Franchisee of The Year

KOA senior vice president Kent Zimmerman (center) presents the 1996 KOA Franchisee of the Year award to Duane and Karen Alleman, who accepted on behalf of the entire Alleman family of Lafayette KOA, LA.

The Alleman family of Lafayette KOA, LA, was honored at the 1996 KOA International Conven-tion in Myrtle Beach, S.C., with the presentation of the 1996 KOA Franchisee of the Year award, according to Kent Zimmerman, KOA Inc. senior vice president. The Allemans were chosen on the basis of high standards, quality facilities, excellent customer service and consistent support of the KOA system.

"The Franchisee of the Year award is the highest honor a member of the KOA Kampground system can earn," Zimmerman said. "The Allemans were awarded this accolade for their lengthy history as innovators in the KOA system. They have created an outstanding facility that features a variety of entertainment and recreation options for their guests, and they consistently provide extraordinary customer service, as evidenced by their receipt in both 1994 and 1995 of a "5W" Woodall's rating for both facilities and recreation. Only 84 campgrounds in the nation received this high rating."

Onan to Close Huntsville Operation

Onan Corporation will close its Hunstville, AL plant. Mobile gensets and engines will be supplied from another location. The Huntsville plant will be closed sometime in late 1997 or in 1998.

Since the phase-out of a major diesel engine line in 1992, the company has not successfully utilized a large portion of the plant, despite record sales years. This early announcement is being made now in order to give employees and their union (UAW) ample notice.

Jerry N. Currie and Gerald C. Kitch were elected to the board of directors for Winnebago Industries Inc. during the Annual Stockholders Meeting held recently. Re-elected to the board are Fred G. Dohrmann, Gerald E. Boman, John V. Hanson, Joseph M. Shuster, Frederick M. Zimmerman and Francis L. Zrostlik.

Jerry Currie, 51, is president and CEO of Curries Company, a manufacturer of steel doors and frames for nonresidential construction and Graham Manufacturing, a manufacturer of wood doors for nonresidential construction, both located in Mason City, IA.

Gerald Kitch, 58, is executive vice president, president of International Development, General

Industrial Group, the largest segment of Pentair, Inc. in St. Paul, MN, a manufacturer of tools, equipment and ammunition. His responsibilities include Hoffman Engineering and Federal Cartridge of Anoka, MN.; Schroff GmbH in Straubenhardt, Germany; and Lincoln Industrial, St. Louis, MO and Walldorf, Germany.

As a result of the board meeting held the following day, Winnebago Industries' directors announced the addition of two new officers.

Brian J. Hrubes, 45, was named controller for the corporation. And Joseph L. Soczek, Jr., 53, has been appointed treasurer for Winnebago Industries. Hrubes and Soczek both report to vice president-CFO Edwin F. Barker.

Dometic's Factory Dealer Direct Distributes Monsanto Enviro-Chem

The Dometic Corporation, Elkhart, IN has announced the addition of Monsanto's patented, one-step Enviro-Chem® holding tank treatment to its aftermarket product offering through its Factory Dealer Direct division.

According to Brad Sargent, vice president of marketing for Dometic, "With Enviro-Chem, Monsanto has applied this patented breakthrough technology in developing a product which offers our market superior product features and benefits. In doing so, Enviro-Chem brings more profit opportunities to the dealers, and the best value for retail customers."

Sargent further stated, "We are pleased to begin this partnership with an outstanding company like Monsanto, who has built a reputation for products that provide superior performance and value."

In addition to Enviro-Chem, Factory Dealer Direct distributes Dometic's line of A&E awnings and accessories, Dometic refrigerators, and Duo-Therm air conditioning and heat pump systems.

Fleetwood Discontinues Euroway Production

Due to inconsistent regional demand, Fleetwood Enterprises, Inc., has discontinued production of the Euroway product line, according to Larry Hughes, vice president, Fleetwood Travel Trailer Division. He told Euroway dealers, "This trailer line was unique with many innovative European features. We have plans to implement many of these positive, unique features into our luxury class trailers."

To assist Euroway dealers in retailing the remaining inventory, Fleetwood is offering two incentives:

First, all Euroways in dealer stock beginning January 1, 1997, qualify for a two-year full warranty to the retail customer. This offer is good on any retail purchase between January 1, 1997 through April 30, 1997.

Second, to assist dealers' Euroway final marketing efforts all Euroway dealers will receive a $300 Retail Rebate for every Euroway PDI received by the plant between January 1, 1997 and April 30, 1997.

Hughes continued, "We also have a product locator service that can assist dealers in matching the right Euroway with a particular customer."

Fan-Tastic Vent Plant Destroyed in Fire

Fan-Tastic Vent Corporation and its subsidiary, Fan-Tastic Designs were completely destroyed by fire, January 4, 1997 starting at approximately 3:30 a.m. Six fire departments worked through the night using over 1 million gallons of water in trying to save the offices and manufacturing plant, according to Stephen A. Milks, president & CEO. He said, "Fortunately, this destructive fire caused no injury or loss of life."

Milks indicated that the company hopes to be back in production within 15 to 30 days.

He said, "While this event has certainly compromised our ability to conduct business as usual, we are already moving aggressively to restore operations. With the cooperation of our supplier partners, we will continue to go the extra mile for Fan-Tastic customers."

Milks also said that any orders faxed to Fan-Tastic after December 25, 1996, should be resubmitted

In the interum Fan-Tastick Vent's temporary address and phone is:

Coast Announces New "Sale Tag" Dealer Savings Program

With the addition of Coast's Dealer Specials running in RV News, Coast has also announced a new "Sale Tag" program for it's dealers. Jim Stark, senior vice president for marketing and sales explained, "For an annual fee of only $40.00 (U.S.) and $55.00 (Canadian), Coast's dealers can receive an extra saving of 5 percent off the regular dealer sale price of Coast's bi-monthly specials. In addition, dealers that join the "Sale Tag" program will also receive 24 bright fluorescent retail sale shelf tags for items featured in the Coast bi-monthly specials."

According to Stark, this is a new program for Coast's Canadian dealers: however, over 700 U.S. dealers already participate in the program. He said, "Dealers who are already on the pro gram will continue to receive their retail sale tags and their extra 5-percent savings on Coast's bimonthly specials. Other dealers can start anytime they wish."

The annual fee covers six sets of bimonthly retail sale tags and extra savings all year. For more information call the Coast Order Desk at 1-800-495-5859 (or l-800-361- 5227 for Coast's French Canadian order desk in Quebec.)

RV America and RV Technician Magazine Joins Sponsors of A'Weigh We Go

RV America On Line® and The Professional RV Technician magazine have joined other sponsors of the popular education and safety program, A'Weigh We Go.

According to John Anderson, founder of A'Weigh We Go, the program is a RV safety effort, designed to educate RV buyers and owners on the safety aspects of loading RVs, and the potential hazards and expense of operating in excess of established weight and load limitations.

Anderson said, "In addition, we assist RV industry manufacturers and dealers in assessing the manner in which the consumer operates their products. This effort is implemented by conducting educational seminars, the weighing of RVs, and the collection and analysis of actual loading data.

Anderson is on the road about 40 weeks a year presenting the series of seminars throughout the U.S. and Canada. As of December, 1996, Anderson had weighed and collected data on a total of 5,343 vehicles.

Anderson added, "Overweight and improperly loaded RVs have long been recognized as a potential safety hazard, but until now there has been no Safety Program specifically tailored to the unique requirements of the RV industry."

Other sponsors of A'Weigh We Go include Michelin Tire, Freightliner of Grand Rapids, MI; Cabriolet Custom Vehicles; Dexter Axle; Atwood Mobile Products; Reese Products; Jordan Research; MOR/ryde and PullRite Hitch.

In addition A'Weigh We Go is available on the Internet on the RV America On Line web site. The A'Weigh We Go Internet address is: http://www.rvamerica.com/a-weigh-we-go/

Morgan Group Agrees To Acquire Transit Homes of America

The Morgan Group, Inc., announced that it had executed a definitive agreement in principle to purchase the assets of Transit Homes of America (Transit), a privately held company based in Boise, ID.

Transit, with annual sales in excess of $28 million, serves, as does Morgan, a number of the leading producers in the manufactured housing industry.

97' RPTIA Board Members & Officers Elected

At the recent Annual Meeting of Recreation Park Trailer Industry Association (RPTIA), two open positions on the association's board were filled and a new slate of officers was elected by the new board to serve during 1997. Re-elected as a supplier member of the board for his second three year term, is Ted Huff, director of certification, T. R. Arnold and Associates. Ted also serves as the co-chairman of the association's standards committee. Joining the board for the first time is Dan Saltzgiver, co-owner of Reichart's Camping Center, and the elected president of the Pennsylvania RV and Camping Association.

Following the Annual Meeting, the newly elected board elected its officers for 1997. Elected were Tim Howard vice president and general manager, Damon Corporation -treasurer; Ernie Yoder, president, Woodland Park, Inc., secretary; Jack Harris, national sales manager, CAVCO Homes, Inc. - vice president; and Bob Kropf, president, Kropf Manufacturing president.

I.B. Perch, Pioneer Trailer Manufacturer, Named to RV Hall of Fame

I. B. "Irv' Perch, founder of three RV businesses in a career spanning more than 40 years in the RV industry, has been selected for induction into the RV Hall of Fame. Selection into the Hall of Fame, located at the RV/MH (manufactured housing) Heritage Foundation, Museum and Library in Elkhart, IN, is a tribute to individuals whose lifetime commitment and contributions include developments and innovations benefitting the trailering and manufactured housing industries.

"After a lifetime in the RV industry, building products that I hoped the public would enjoy, I am honored to be chosen for the Hall of Fame," said Perch. "However, I am not done yet, I've still got just one more for the road."

Now manufacturing a line of hard-sided, folding RVs called the Fold-N-Roll, Perch is best known for founding the Aristocrat trailer line.

In 1972, Perch founded and manufactured the American Clipper mini-motorhome, until the gas crunch that stretched through the 1970s forced it's closure.

Irv Perch is president of Fold-N-Roll Recreational Vehicles in Gilroy, CA.

Coachmen Completes Public Stock Offer

Coachmen Industries, Inc., has completed a public offering of more than two million common shares at $24.50 each.

The company said it sold 1.8 million shares, while 270,000 were sold as part of an over-allotment option. The lead underwriter was Oppenheimer & Co.

Kampgrounds of America (KOA) Inc. President and CEO Art Peterson (left) presents the first 30-year longevity award in the organization's history to Ann and Dick Kelch of Pigeon Forge/ Gatlinburg KOA, TN

"This landmark demonstrates the Kelch family's dedication to serving the camping public with a quality facility and superior customer service," Peterson said. "In the three decades the Kelches have owned their campground, three generations have been involved in the family camping business. They have created a superior campground that offers their guests beautifully landscaped grounds, numerous recreation opportunities and service that is consistently well-above average."

National RV Holdings Announces Closing of Private Placement

National RV Holdings, Inc., has closed a private placement of 900,000 shares of its common stock at a purchase price of $13.25 per share. for an aggregate purchase price of $11,925,000.

The company intends to use the net proceeds of the private offering to pay down outstanding indebtedness under its revolving fines of credit and for working capital and general corporate purposes. The shares of common stock issued in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements of such Act. RVN

Rexhall Reports Third-quarter Results

Rexhall Industries, Inc., reported results for the third quarter ended Sept. 30, 1996.

Revenues for the quarter rose to $17,431, 000, an increase of 11 % over the same quarter last year. Net income for the third quarter of 1996 was $477,000, compared with $492,000 for the same quarter in 1995. Earnings per share were 18 cents in the third quarter of 1996, vs. 19 cents for the comparable period of 1995.

Bill Rex, president and chief executive officer, said, "The end of the summer is traditionally slow for us, and this year we felt it back East. Although sales revenues were up, the cost to attract market share affected our net income. Rexhall East is still trying to establish the market presence necessary to sign up more dealers out of the Elkhart plant."

The company has already planned for the future by the purchase of a warranty center in Elkhart and the expansion of the Lancaster plant.

Automotive Aftermarket Industry Week '96
Establishes New Attendance Record

Automotive Aftermarket Industry Week '96 drew 64,345 attendees from across the globe, according to final audited reports. 9,345 of those attendees came from outside the U.S., representing 117 countries.

The 1996 show also saw 29,672 buyers in attendance, up substantially from the 25,087 who came to the 1995 event. Those 29,672 included 6,643 international buyers.

CIT Group Establishes Web Presence

The CIT Group has launched its comprehensive web site. The site, located at http://www.citgroup.com is designed to provide CIT's business customers and individual consumers with quick and easy access to information on the wide range of CIT's financing options and services.

Thomas J. O'Rourke, senior vice president corporate marketing, said, "The Internet offers us an ideal way to help our customers and prospects learn more about us and the many solutions we can offer. It is an ideal complement to the effective advertising, direct mail and public relations efforts we have already established."

In addition to information about CIT's products and services, the site also provides access to a series of industry forecasts prepared by CIT researchers. .