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Motorhome Manufacturers Predict Upturn

Analysts are projecting a 20-25% increase in motorhome sales in 2010, which will translate into more jobs for Elkhart, Indiana where an estimated two-thirds of the nation’s RVs are manufactured.

Heartland RV, Jayco RV and Thor Industries are among companies planning to expand in 2010. That is big news for an industry that is recovering from one of their worst years ever in 2009. “We’re not seeing this as an indication of greener pastures, but demand will come up higher in the next year,” said David Hefty, CEO and founder of Cornerstone Wealth Management in Auburn, Ind., who tracks the RV industry.

Making motorhomes, travel trailers and towable RVs has been big business in northern Indiana for years, peaking at 390,500 RV units shipped in 2006. As the recession began, total shipments fell to 353,500 in 2007 and to 237,000 last year, with just 150,000 units produced this year. As shipment levels dropped, unemployment swelled as factories closed or reduced production.

Many analysts are predicting shipments should rise to 190,000 to 200,000 by 2010, said Randy Eaton, RV Expert and author of popular consumer based publications, based in Clarkston WA. According to Mr. Eaton, Jayco RV is increasing production as a result of more orders than expected. The company is indicated that its order backlog is the largest in more than two years and that it has recalled or hired more than 200 production workers.

Heartland Recreational Vehicles LLC of Elkhart, which makes towable RVs, is hiring about 200 production workers, with 225 more by March or April. Heartland says orders have increased since Oct of this year and that it increased its whole line to help improve market share. According to Heartland RV “Ongoing research and development” is why we have been able to grow so quickly in just 51/2 years,” said Coley Brady, director of fifth-wheel sales.

“The RV business is entering into a recovery phase, and it is here to stay. This year has been really bad and everybody knows it, but the upside is many RV manufacturers are starting to focus on stronger, lighter and more fuel efficient vehicles,” said Rand Eaton.

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