INDUSTRY NEWS
January 1999

RV Shipments Nears 300,000 Mark

According to John W. DeWolf, economic consultant to RVIA, RV wholesale shipments were at an annual rate of 296,000 units in the third quarter ­ up 1.9% from the second quarter's annual rate of 290,600. The third quarter was up 16.3% compared to the same quarter last year.

In his forecast, DeWolf predicts shipments gaining 14% in 1998 over 1997. He also said that he expects the gains to continue for several years, with a gain of just over 10,000 units in 1999.

J.D. Power Study Due in March

The Go RVing Coalition's J.D. Power study of consumer satisfaction with RV products, sales, service, and campgrounds will be released in March. The study will establish industry-wide customer satisfaction "benchmarks" that dealers and manufacturers can use to identify strengths and weaknesses in the RV buying process.

RVIA Board Approves Recommendations Regarding Size, Weight Issues

RVIA's board of directors at their meeting on Nov. 30 in Louisville approved several recommendations from the Standards Steering Committee regarding vehicle size and weight issues.

RVIA took a formal position to support all current state and federal laws and regulations relating to RV length, width and weight limitations.

Additionally, trailer and motorhome weight issues were separated. Motorhome weight issues will be more aggressively addressed while trailer weight issues will be further discussed and better identified to provide a strong, consistent basis for membership education.

As a starting point to enhance the motorhome weight label program, a revised calculation method using the Transport Canada weight requirements as a guide will be developed and submitted to the RVIA membership for review and comment.

To further educate the membership and consumers, the standards department will issue a series of Standards News Bulletins focusing on weight issues.

The standards department will also work with the public relations department to develop press information for RV trade magazines to explain and promote the RVIA weight label requirements and focus on dealer responsibilities.

In other actions:

• The RVIA Board agreed to offer free links to RVIA member web sites from the association website and revised the association's policy on maximum motorhome size to allow units greater than 400 square feet.
• Jim Sheldon, president of Monaco Coach Corp., was appointed to the RVIA board at the group's Nov. 30 meeting at the National RV Trade Show.

Sheldon chairs the Go RVing Coalition's Committee on Excellence and is also a member of RVIA's Public Relations Committee.

He assumes the seat on the RVIA board of directors vacated by Monaco Coach's Page Robertson, who is retiring. As with all appointments, Sheldon must stand for election in the next board election taking place in August.

SMC Corp. Announces Share Repurchase

SMC Corporation (NASDAQ: SMCC) announced that the board of directors has authorized the repurchase from time to time of up to 300,000 shares of common stock. Shares may be repurchased at prevailing market prices from time to time, either in open market transactions or in privately negotiated purchases. The board will periodically evaluate the program to determine whether it should be continued or terminated. SMC also announced that, pursuant to earlier authorization from its board, it had completed the repurchase of approximately 500,000 shares thus far this year. As of this date, there are approximately 5.8 million shares of SMC Corporation common stock outstanding.

Rexhall Industries Kicks Off Association with NASCAR Driver, Wally Dallenbach

Rexhall Industries Inc. (NASDAQ:REXL) has teamed up with Wally Dallenbach, a Nascar driver, and teammate to Jeff Gordon and Terry Labonte, all drivers for Hendrick MotorSports and Rick Hendrick.

Rexhall unveiled it's marketing campaign at the Louisville Show held in December introducing Dallenbach.

According to Bill Rex, president, the show was a great success with the signing of several dealers in the eastern territory and negotiations now in progress to fill the few remaining areas out west. Orders from the show exceeded 70 units.

Ford's Jerry Mittman Retires

Jerry Mittman, 54, Ford's liaison with the RV industry and manager, RV sales, told RV News at the Louisville Show that he was retiring from Ford. While we will miss him, we wish him well as he embarks on a new "life after Ford."

Jerry has been an asset to the RV industry and a true partner for those companies using the various Ford chassis.

He joined Ford 34 years ago at 19 and became the recreation and special vehicle sales manager over eleven years ago.

During his tenure he brought Ford to the number one Class A chassis supplier to the RV industry and has been very active in working with vehicle converters.

The reason for his departure is to take advantage of an early retirement plan offered by Ford.

For a man who just this past year ran the Boston Marathon and backpacked to the top of Mount Shasta, we suspect that his "retirement" will be filled with excitement.

Mittman's successor had not been named at presstime.

Skyline names Ronald Kloska as CEO

Skyline Corp. has promoted its deputy chief executive officer, Ronald Kloska, to chief executive officer.

The company said the previous CEO, Arthur Decio, will continue to serve as chairman. Kloska will also continue to serve as vice chairman.

Go RVing Coalition Retains Eisner and Associates for Phase II Ad Campaign

The Go RVing Coalition unanimously voted to retain Eisner and Associates as the agency of record as the organization begins planning Phase II of the industry-wide national advertising and promotion campaign.

That decision was made at the group's meeting on Dec. 3 in Louisville at RVIA's National RV Trade Show, where Eisner and Associates previewed concepts for a new campaign to promote RV travel to the baby boomer target market.

The new campaign, which would debut in early 2000 and run through 2002, is expected to maintain the feel and tone of the original Go RVing campaign. The Go RVing Coalition will spend the next year fine-tuning the campaign as well as working on funding and budgeting issues for Phase II.

In other action, the Coalition unanimously agreed to provide free links to Go RVing Coalition members from the recently launched Go RVing web site.

Eisner and Associates developed the current Go RVing campaign featuring the theme "Recreation Vehicles. Wherever You Go, You're Always at Home." The effort has been widely successful in building RV exposure among baby boomers.

Through two years, the campaign has created more than one billion impressions among the target market and generated more than 103,000 requests for the introductory video offered in the television and print advertisements. Research also indicates it is helping positively impact perceptions and attitudes about RVs.

The campaign's third cycle of Phase I will begin on January 11 and run through June to build RV awareness during the important spring and summer RV selling season. With a media budget of more than $6 million, Go RVing ads will air on national and cable network television and appear in 13 national print publications.

The 1999 campaign is expected to reach 90 percent of the target market of baby boomers with children, some college and a $35,000-plus income an average of 33 times.

Demographic Study OK'd for RV Techs

A demographic study of RV service technicians is being undertaken by the RVDA/RVIA Service Technician Certification Test Governing Board to help address the shortage of RV service personnel within the industry.

The research will be conducted in the first quarter of 1999 among current RV service technicians to help identify the demographic groups, by geographical area, that offer the best recruiting potential from which to seek new technicians.

Additionally, the study will help determine the best way to communicate with potential and existing technicians and offer insight on why more technicians are not taking the Certification Test.

RVIA vice president of Standards and Education Bruce Hopkins, said, "Like other industries, the RV industry is having difficulty attracting people into the service technician field. The findings from the demographic study will help us develop programs to recruit new RV service techs."

Robert Hitlin Research Associates, Inc. of Fairfax, VA, is conducting the study, which is being funded jointly by the RVDA/RVIA Service Technician Certification Test Governing Board and the RVDA Education Foundation. Results of the study should be released in the early summer of 1999.

Thor Completes Divesture of Thor West; Board Authorizes Purchase of 500,000 Shares

Wade F.B. Thompson, chairman, Thor Industries, Inc. (NYSE: THO), said, "We have completed the previously announced divestment of Thor West. Our record high RV and Bus backlogs and our strong financial condition (including cash on October 31, 1998 of $42.7 million) places us in the strongest position we have ever been to pursue both internal and external growth opportunities.''

Thor Industries, Inc. also announced that its board of directors approved the purchase of up to 500,000 Thor shares.

At the National RV Show in Louisville Thor says it received 55% more orders than last year and 75 new dealers. Thor Bus also recently received orders totaling $20 million from the Port Authority of New York and New Jersey, the State of Michigan, the National Park Service, and others.

Winnebago Industries Reports 81 Percent Increase in Net Income

Record revenues of $157.7 million were reported by Winnebago Industries, Inc. (NYSE: WGO; CSE; PSE) for the first quarter of fiscal 1999 that ended November 28, 1998, an increase of 25% when compared to revenues of $125.9 million for the first quarter last year. Net income for the first quarter was $9.6 million, or 43 cents per diluted share, when compared to net income of $5.3 million, or 21 cents per diluted share, reported for the first quarter last year. This was an increase of 81% in net income and an increase of 105% on a per diluted share basis.

Robert Hitlin Research Associates to Conduct RVIA Finance Survey

RVIA's Finance Committee selected Robert Hitlin Research Associates to conduct the association's annual research of RV lending institutions during their meeting in Louisville, KY.

The research, which has been conducted for nearly two decades, documents the scope of lending activity at banks, savings and loans, finance companies and credit unions by providing a detailed analysis of the three types of RV loans -- direct, indirect and wholesale.

Robert Hitlin Research Associates is directed by Dr. Robert Hitlin who has thirty years of diversified experience in conducting research for national associations as well as media, corporate and governmental clients.

RVIA's Finance Survey had been conducted by Jon Whitney Associates for the past 17 years.

Dixie RV Superstores
(www.dixiervsuperstore.com)
Newport News, VA

Dixie RV Superstores started testing the waters with a small web site in early 1996. After the success of that initial effort, Forest Crosby, owner of Dixie RV, decided to produce a much more elaborate site. The new site launched earlier this year includes a short history of the company including historical photos; as well as marketing themes carried over from radio, television and print ads. "The Colonel" appears on every page and when a visitor first comes on the site he or she is greeted by music -- "Dixie" of course.

An important element, we believe, is that a visitor gets to know the company by seeing photos of the people they will deal with when they visit the store. You get a sense that this is a company that develops relationships rather than simply selling hardware.

Rather than breaking the new RVs out by brand names, Crosby decided to break them out by product type. If the consumer is looking for Class A's, they are all on the same page. The same for Class C's, travel trailers, fifth-wheels and vans.

In addition there's an RV rental page, and a current used inventory page that allows visitors to browse or search the live database.

The web site is full of interesting information and easy to navigate.

Newmar Joins Growing Number of RV Producers Using ARI Systems

ARI Network Services, Inc., announced that Newmar Corp. of Nappanee, IN, has selected ARI to develop a complete dealer communications and electronic publishing system.

Virgil Miller, president and CEO of Newmar, said, "We continue to work to develop a closer relationship with our dealers. We feel that the ARI system will help us serve both dealers and customers better. For example, it will help us do a better job of warranty reimbursement. And, it will help our dealers order correct parts.''

"The growing number of RV manufacturers that have selected ARI software makes ARI the logical selection for us,'' Miller added. "There are definite benefits for RV manufacturers as the number of producers and dealers using ARI systems expands. Furthermore, the system has been specifically tailored to meet the needs of our industry.''

RVN