RV Business News – Production Rolling at Heartland’s Idaho Facility

Production Rolling at Heartland’s Idaho Facility

April 27, 2016

(L-R) Blue Dog Director Parts & Service Tony Schilling; Director of Sales Jason Poole; Heartland General Manager Mike Creech; Blue Dog co-owners John Asplund Asplund and Rebecca Asplund; Coley Brady, Heartland vice president of sales; Steve Khoma, regional sales representative; Blue Dog Operations Manager Marc Hauser (Operations Manager)

(L-R) Blue Dog Director Parts & Service Tony Schilling; Director of Sales Jason Poole; Heartland General Manager Mike Creech; Blue Dog co-owners John Asplund and Rebecca Asplund; Coley Brady, Heartland vice president of sales; Steve Khoma, regional sales representative; Blue Dog Operations Manager Marc Hauser

Production is in full swing at Heartland Recreation Vehicles LLC’s new plant in Nampa, Idaho, as the company marked a milestone last week with its first unit shipped to Blue Dog RV in nearby Post Falls.

“It was a testament to our Nampa team that we were able to roll out production right on schedule,” reported Coley Brady, vice president of sales for the Elkhart, Ind.-based Thor Industries Inc. subsidiary, in a press release. “We will continue to up production to fulfill our backlog of West Coast orders that currently runs into late August. It’s a significant step and confirms that the Idaho location truly represents a difference maker for Heartland.”

The 248,000-square-foot facility, situated on 25 acres in Nampa, provides Heartland with a gateway into the lucrative West Coast marketplace, eliminating costly freight charges and opening new relationship-building opportunities with key dealers in the region.

”Our overall partnership with Heartland has been strengthened with the addition of the new Idaho manufacturing facility,” noted John Asplund, co-owner of Blue Dog RV, which operates 10 locations in the Northwest states of Washington, Idaho, Oregon and Nevada.

Heartland announced plans for construction of the new facility last September, preluding the Elkhart County RV Open House which annually draws thousands of dealers to the industry’s manufacturing hub in northwest Indiana.

“It was opportune timing for Heartland as dealers head to Open House preparing for the coming year in terms of product selection and which manufacturers they want to do business,” said Chris Hermon, president of the Elkhart, Ind.-based Thor Industries Inc. subsidiary. “We were able to pick up several new dealers, and continue to add to that network, while also better servicing our existing dealers in the region.”

Initially, the Nampa facility will focus on the lightweight laminated Wilderness line, a “feature-rich trailer with an exceptional price point for the West Coast,” according to Brady, with plans to add a second production line for Cruiser RV and Sundance laminated travel trailer lines in early 2017.

“The Wilderness product line is well-suited for the customers in our markets and we anticipate it will be a high-volume brand for our dealerships,” said Asplund.

The Nampa site represents the latest in a series of expansion moves for Heartland, including the acquisition of Cruiser RV LLC and its sister company DRV LLC along with a major expansion focusing on service, parts and administrative operations at its expansive campus in Elkhart.

“The Nampa expansion is an extension of Heartland’s commitment to providing industry-leading response to the needs of our dealer partners, and our owners,” said Hermon. “It significantly expands our supply chain to the West Coast. The travel trailer business is booming and we want to be on the leading edge of that tremendous growth.”

RV Business News – Heartland’s Bighorn Builds Momentum in 2016

Heartland’s Bighorn Builds Momentum in 2016

April 14, 2016 by RV Business

Offering consumers an expanded model lineup enhanced by a host of set-apart luxury features, Heartland Recreational Vehicles LLC’s full-profile Bighorn fifth-wheel line is enjoying strong sales and incremental market share gains coming out of the early show season.

According to Grand Rapids, Mich.-based Statistical Surveys Inc., Bighorn market share was up 9.9% in the first month of 2016.

“Bighorn sales performed extremely well in 2015 and the tempo has really picked up after a strong retail show season this year,” said Chris Hermon, president of the Elkhart, Ind.-based Thor Industries Inc. subsidiary, in a press release. “Bighorn is arguably one of the most recognized names with retail customers and dealers. We’re proud of what was accomplished at last September’s Open House and we’re seeing the results with very strong retails in the first quarter of 2016.”

Tom Montague, general manager for Bighorn, added, “We are particularly pleased with our new model momentum. We are tuned in to the high-end demographic and are producing product that uniquely meets their needs.”

New floorplans include the triple-slide 3575EL and 3760EL boasting a popular rear living room layout and a front bedroom with a king-size walk-around bed. The newest addition to the lineup, the 3970RD, is a five-slideout unit, including two opposing sofa slides in the rear living/entertainment area.

Montague noted that all Bighorn models are equipped with a lengthy list of standards that target the discerning tastes of today’s luxury fifth-wheel buyer.

“Standard features retail customers want and use on a daily basis have contributed to our fast start in 2016,” he said. “Retail customers are more educated than ever before and are demanding standard features that make RVing more enjoyable. Add a full-time warranty for overall piece of mind and you have a recipe for success.”

While Heartland focuses on progressive product development, the company has also taken aggressive steps on the service side, offering support to dealers and end users on every product and brand that the company offers.

“In addition to great product, Heartland continues to make significant investments in our customers’ overall ownership experience,” Hermon noted. “The state-of-the-art service center located in Elkhart provides campsites, a customer lounge and a dog park with 24-hour access with prior reservations. It’s not just about a particular brand anymore. The manufacturer and the dealership play an important role in overall customer satisfaction and right now Heartland RV is leading the way.”

Product Review – Dehumidifiers

DEHUMIDIFIERS – Product Review & Recommendation

Submitted by: Lisa Brown, Newsletter Editor

We like mushrooms but only on our dinner plates and the only mold we prefer is our blue cheese on our salads. Other than that, we have no place for them elsewhere; particularly in our RV coach.

Let’s face it, MOISTURE is an RV Coach’s worst enemy. In such a small amount of time, humidity inside a camper or RV could result in potential health risks as well as create unwanted structural issues. As noted on a facebook RV group page we frequent, we read about an RV owner who posted a photo of actual mushrooms growing inside their RV merely because of a damp blanket that was left on the floor for less than 72 hours…one weekend.

RV’s and Campers are not airtight. How could they be? They are not like Tupperware containers where you can look moisture away. They are not like sticks and bricks homes that have layers upon layers of insulation and building materials. There are small access points everywhere in a camper or RV; whether it be a small cracked window seal, air gaps around plumbing pipes, slides with deficient seals, etc. Every time you open a door or window, you invite moisture inside your RV or simply by leaving windows and doors open on humid days; notoriously known in the deep south and Pacific NW states. Cooking also presents its own moisture logistics; through steam and just the presence of water even from doing dishes or running water. And then there’s the bathroom; whether running water to brush your teeth or wash your hands or the steam from the shower. Even from humans and pets breathing expels water droplets everywhere. Its all moisture and in such small confines of a camper or RV, it could potentially set the perfect atmosphere to ‘grow things’; creating its own greenhouse effect.

One way to eliminate moisture in your RV is to run your coach’s Air Conditioner. But if the air temperature doesn’t dictate AC use or your electric bill is just too demanding, then you should look into purchasing small dehumidifiers.

When we think of dehumidifiers though, we think of those big, heavy clunky things we have or had in the basements of our homes. However, those are way too much and really, overkill for campers and RV’s with less square footage.

Shortly after buying our RV, we learned by others who were years ahead of us, we needed to add one or two small portable dehumidifiers to our Amazon Prime wish list which resulted in an actual purchase.

The two we recommend (because they have proven their worth to us personally) are manufactured by the same company “EVA DRY”. There are others out there however, since we have not used them, we cannot speak for their success or review.

The EVA-DRY ‘Petite’ 1100 Dehumidifier (Model #EDV1100) Whisper Technology. It has a 9V 2.5A electric input. Its virtually silent. It has an on/off switch with a power indicator light as well as an indicator light to alert when it needs emptying. We purchased it from Amazon for approximately $45 (S&H was free because we use Amazon Prime). We use this little guy in the bedroom on one of the CPAP shelves and is more than substantial for the bedroom square footage. Its perfect for small shelves or tabletops as it doesn’t take up very much space. It could be placed in a corner on the floor if preferred. We run it with the closet doors open when needed. This one is about the size of a football; very lightweight and we’ve found, on humid days, we only have to empty about every third day but it does the job required.

The Eva-Dry Electric Petite Dehumidifier uses Peltier Technology (no compressor) which makes it light and quiet. It is perfect for bathrooms, and small to mid-sized rooms where dampness and humidity are a problem. This unit is small enough to easily fit on your desk or workbench. It extracts the moisture from the air and stores it in a spill-proof reservoir. Just plug it in and it quietly dries the air. Features an automatic shut off switch to shut the unit off when the water reservoir is full. When this occurs a”full” indicator light will alert you when the reservoir needs to be emptied. Holds up to 16 oz.

The bigger dehumidifier we bought at the same time is the Eva-Dry “Mid Size” 2200 Dehumidifier (Model #EVD2200). We purchased the Mid Size for about $100 (S&H free because we used Amazon Prime). We use this dehumidifier in the main living space (kitchen/living area). This one is a tad bit taller than the Petite but of course that’s because this one facilitates a larger space. Also ‘whisper quiet’, we don’t even realize its running; it’s that quiet. We place this one on the floor out of the way beside one of the recliners. This one also requires us to empty approximately every three days.

The Eva Dry Mid-Size Dehumidifier – Eva-Dry electric mid-size dehumidifier with Peltier (no compressor) technology which makes it light and quiet. The unit draws humid air in and heats it over a warm plate inside the dehumidifier, then cools the air causing condensation which is trapped in the removable, spill-proof reservoir. Dry air is then expelled out. Features an automatic water level detector switch to indicate that the tank is full. Built in handle for portability and easy to use controls. Ideal for bathrooms, boats, campers, counter tops, and more. Works well in areas up to 2200 cubic feet. Absorbs 20.5 ounces of moisture in a 24 hour period with relative humidity of 80% at 86 degrees Fahrenheit. 9″ W x 14″ H x 7-1/2″ D. White. 1 year limited warranty. – Coverage Area: 2200 cu ft, Capacity: 20.5 oz/Day, Fan Speed: 1 Speed, Amperage Rating: 6A, Wattage Rating: 72W, Voltage Rating: 110V, Decibels: N/A, Tank Capacity: 2L, Dimensions: 8-1/2″ W x 14″ H x 6-3/4″ D.

In a nutshell, we love these! They do what they’re supposed to do. The $150 we spent for them was money well spent considering what the result could be if we didn’t have them. Seriously, we ‘can tell’ that they are working. We can literally feel the drier air when in use. While owning an RV, we will never be without them.

So, if you’re in the market of purchasing an RV, Camper or even a boat, put these on your list of ‘must haves’. The small amount of money paid now is a huge amount of money saved later. Look at these as ‘protecting your investment’.

DISCLAIMER: In writing this article, we are not compensated by Eva Dry nor Amazon for this review. These words are strictly from experience and opinion of the Editor. We will not be held liable for misuse of this article or in the event they don’t work for your individual use or situation. We recommend doing your own research and gather other reviews prior to purchase.

RV Business News – Thor’s Investor Q&A: ‘No Signs of a Slowdown’

Thor’s Investor Q&A: ‘No Signs of a Slowdown’

March 23, 2016

On the heels of an impressive second-quarter financial report, referred to by Thor Industries Inc. Chairman Peter B. Orthwein as the “strongest first half of any fiscal year in the history of our company,” the publicly held Elkhart, Ind.-based firm’s senior management has addressed a series of questions as part of an “Investor Q&A” accessible on the company’s website. Those questions not only deal with the intricacies of Thor’s own balance sheets, but with a few general industry topics that RVBUSINESS.com is highlighting here:

Q: What is the current state of the Canadian RV market? What do you anticipate the market will be like for the remainder of calendar 2016?

The Canadian market is still challenging as we see continued volatility in the value of the Canadian dollar relative to the U.S. dollar. Since we sell our products to Canadian dealers priced in U.S. dollars, this creates an upward pressure on prices in local currency which has an adverse impact on demand. As a result, total Canadian retail registrations as reported by Statistical Surveys Inc., fell 12.9% for the full calendar year 2015, with towables decreasing 12.0% and motorized decreasing 26.7%. Other factors impacting the Canadian market include increased job losses, an economic recession and tighter lending practices. However, even with these negative headwinds, we are seeing some areas of improvement in certain geographies and lean, healthy dealer inventory levels in the channel.

Q: Have you seen any signs of a slowdown in demand for RVs?

At this point, we have not seen any indications of a slowdown in demand at the dealer or retail level in the U.S. Despite the recent volatility in the stock market, consumers remain positive, as the impact of lower fuel prices, increasing job creation and lower unemployment have helped consumer confidence to remain strong. This positive consumer confidence is met with improved product offerings in our industry and, combined, these factors have driven continued growth surpassing the growth rate of the broader economy.

Q: Describe the current competitive environment; is there much discounting going on?

The RV industry is always competitive, but in the past year or two, we have seen less of the more extreme discounting than we have seen in prior years, with pockets of more aggressive discounting on certain high-end products.

Q: Have you seen any softness in markets that have been heavily impacted by the oil industry?

The largest state with exposure to the oil industry is Texas, which, based on retail registration data from Statistical Surveys, accounted for 31,656 units in 2015, which was up 8.5% for the year. At this point, we have not seen signs of reduced demand in the large metro regions of Texas, though we continue to monitor the situation closely.

Q: What is the current state of dealer sentiment and dealer inventory levels?

Dealers in general remain optimistic regarding calendar 2016. Early season shows on average have been well attended with very solid sales volume. Dealer orders are generally expected to reflect a 1-for-1 replacement as units are sold at retail. Dealer inventory remains appropriate for current conditions in both towables and motorized.

Q: Do we anticipate further RV industry consolidation?

Although a significant amount of consolidation has already happened within the industry since the last recession, we do believe that opportunities remain for additional consolidation within the industry. Consolidation in our industry does not threaten the competitive environment as years of consolidation have evidenced. So, even with more consolidation, we are confident that the competitive environment that drives innovation and improved product offerings throughout our industry will continue. In addition, we have seen a number of new or returning entrants to the RV manufacturer base since the recession as well. As these new entrants grow, there may be additional consolidation.

Q: Are we at the peak for shipments?

We do not believe we are at the peak for shipments. As an industry, we are impacted by many macro-economic factors such as consumer confidence, interest rates and credit availability, employment levels, inflation rate, and a number of other factors. Currently, many of these macro-economic factors remain favorable. In addition, a positive future outlook for the RV segment is supported by favorable demographics – both as more people reach the age brackets that historically have accounted for the bulk of the retail RV sales as well as an influx of younger consumers that are attracted to the RV lifestyle. These younger consumers in particular are generally attracted to lower and moderately priced entry-level products and are, in part, fueling additional growth in the industry beyond historical levels. In addition, RVIA recently updated their forecast for calendar 2016 and are now projecting 2% growth, to 381,800 units.

Q: What is the status of the new Heartland plant in Idaho?

The Heartland facility in Idaho is progressing according to our original timeline. We are ramping up production at the new western facility that is on track to begin producing and shipping units by the end of the fiscal third quarter. The Nampa facility will produce travel trailers to meet the strong demands of the West Coast dealers of our Heartland subsidiary.

Q: Thor has lost market share in calendar 2015. Why have you lost market share and what does the company plan on doing to address or reverse the losses?

From a share perspective, we have gained significant market share in motorized, which has been partially offset by some decreases in towable share, most notably in high-end fifth wheels and some travel trailers. Market share is certainly a key metric that we monitor for all our product categories – however, it is not the only metric. Overall, we generally try to take a balanced approach to growing or maintaining market share and growing or maintaining gross margin. The RV industry is extremely competitive and pricing discipline can come at the expense of market share for all participants, including the largest. We have developed a variety of new products that we believe address the largest and fastest growing segments of the market, which should help to improve share as they penetrate the broader market.

Q: What is your outlook for the rest of the year?

Continued strength in the RV market and a healthy dealer channel should result in continued, but more modest RV revenue growth in the second half of the fiscal year. Growth in gross profit margins will become more challenging as improvements in material costs and warranty expenses that were realized in the second half of fiscal 2015 will create difficult comparisons for the second half of 2016. In addition, certain benefits to gross margins, specifically the impact of the retroactive reinstatement of tariff rebates on certain imported raw material, which had a significant positive impact on gross margins in the fourth quarter of fiscal 2015, will not repeat in the fourth quarter of fiscal 2016. Finally, the effective income tax rate will likely remain higher on a year-over-year basis, compared with the relatively low rate in the second half of fiscal 2015

Q: What is your strategic plan for future acquisitions?

We have established a very disciplined approach to acquisitions to ensure we remain focused on the factors that provide the greatest likelihood to a successful acquisition and that will provide long-term value to our shareholders. We are opportunistic in our approach and seek willing sellers at a reasonable sales price. We also seek companies with strong management teams. We remain focused on acquisition opportunities within or adjacent to the RV industry.

RV Business News – Heartland Plans CRV/DRV Service Center in Indiana

Heartland Plans CRV/DRV Service Center in Indiana

January 14, 2016 by RVBusiness

The LaGrange County Economic Development Corp. (EDC) announced the sale of 64.4 acres in Howe, Ind., to Heartland Recreational Vehicles, a subsidiary of Thor Industries Inc.

According to a press release, Heartland RV broke ground Jan. 1 on a 52,200-square-foot state-of-the-art facility that will house a service center, warehouse and executive office for its Cruiser RV and DRV Luxury Suites subsidiaries. The project will create at least 15 new jobs.

Heartland acquired the sister companies in early January, 2015, to build its presence in the lightweight trailer and high-end fifth-wheel markets. Construction is expected to be completed in late spring and the new facility will be fully-staffed and operational by June 1.

Larry Miller, president of the LaGrange County Board of Commissioners and a member of the LaGrange County EDC Board, noted, “It’s impossible to deny the economic development momentum building in LaGrange County, and this project is a strong indication of that. Heartland RV’s purchase of the remaining land at Fawn River Crossing Industrial Park is particularly meaningful as it took many years of planning, land preparation, marketing and significant public investment to make it possible.”

“The commitment by Heartland RV and Thor Industries to the LaGrange County community demonstrates tremendous progress. The new jobs and capital investment are alone a reason to celebrate,” added Ryne Krock, president and CEO of the LaGrange County EDC. “We are encouraged by this project and potentially additional development by Heartland RV in LaGrange County in the future.”

Heartland RV’s plans received approval from the LaGrange County Plan Commission at a special meeting held on Dec. 18, 2015.

RV Business News – Heartland Will Oversee Bison Coach Operations

Heartland Will Oversee Bison Coach Operations

February 16, 2016 by RVBusiness

Thor Industries Inc. subsidiary Heartland Recreational Vehicles LLC announced it has integrated operations for specialty trailer manufacturer Bison Coach into its growing portfolio, effective Feb. 8.

Thor, through a wholly-owned subsidiary, acquired the net assets of Bison Coach in October of 2013 from an operating unit of Navistar Inc. Bison Coach, originally founded in 1984, is known for its rugged, high-quality and affordable specialty trailers, including a full lineup of equine trailers equipped with living quarters.

“We’re excited to team up with one of the most successful companies in the horse trailer business and bring Bison Coach into our family of companies,” said Heartland President Chris Hermon in a press release. “With Heartland’s knowledge and support system, we are eager to take this company and help it increase sales and better strengthen the service side of the business with its dealer body.”

Thor, through a subsidiary, expanded Bison Coach’s footprint in June of 2014 by acquiring a 55,000-square-foot facility in close proximity to the Bison Coach campus in Milford, Ind., along with purchasing 20 acres of land for future growth. Hermon noted, “Thor made a significant investment in Bison Coach. Our mission is to help push Bison Coach to that next level and cement its standing as the market share leader.”

The move represents the latest in a series of expansions by Elkhart, Ind.-based Heartland. In July of 2013, the company announced the acquisition of the assets of park model builder Breckenridge followed by the acquisition of Cruiser RV LLC and DRV LLC in early January 0f 2015. In addition, Heartland will be ramping up operations at a new facility in Nampa, Idaho, in the next 45 days.

“This is an exciting time for Heartland,” Hermon stated. “We are experiencing tremendous growth on the RV side and continue to be at the forefront of innovation and product design. Bison Coach offers a similar profile in the specialty trailer market and we see this as a strong, productive alliance moving forward.”

Product Review – Instant Pot

Raise your hands high if you’ve been in your RV for some time, whether it be two days or two months, it seems we have never enough kitchen/galley storage. Wouldn’t it be nice to have all the kitchen amenities and tools in our RV’s that we have/had in our S&B kitchens?

Black Friday last year, that came to light as I was reading a Facebook group page when a member posted this exciting Black Friday special on Amazon for this thing called an ‘Instant Pot’ aka ‘InstaPot’.

As one who loves to chef it up in the kitchen/galley but hates the cleanup of tons of pots, pans and utensils (who has room for them all in an RV anyways??) as well as the splatter mess all over, this was my savior! Immediately upon seeing the post mentioned above, I looked up the specs and info, then…BAM! All I can say is ‘thank God for Amazon Prime!!’. Three days later and only a hit of $80 to our credit card, our Instant Pot arrived. Excitedly, I unpacked it and decided right then, ‘lets make something’! And I did…spaghetti sauce.

I admit, I’m terrible about pulling out the directions and reading through them first. Good thing, because the buttons were self explanatory. I simply plugged that sucker in, put a little oil in the bottom, threw in my ground beef, chopped onion, chopped fresh herbs, spices and pushed ‘Saute’. All of a sudden, I hear sizzling (the good kind!) and start smelling it cooking. Only 15 minutes later, my meat mixture was finished. With the meat mixture still in the stainless steel pot insert, I then I threw in my canned tomatoes, sauce, pushed ‘slow cook’ and put the lid on it. Because the pot insert is deep, there was minimal splatter mess outside the appliance. We then ran out to go do something, forgetting I had our spaghetti sauce slow cooking and four hours later, arrived back to our RV smelling like we were in an Italian restaurant. After I released the moisture/steam pressure mechanism, I opened the lid and holy moly, it was ready; looking and smelling all delicious!! All I had to do was boil the boxed pasta in a separate pot on our induction cooktop.

So, we’ve had our InstantPot for almost three months and it, by far, is my favorite kitchen gadget. I’ve made everything from shrimp scampi, soups, sauces, sweated onions and green peppers, cooked sausages, etc.

Cleanup is easy peasy! Simply removed the stainless steel liner pot and wash/dry. Also, the lid is easy to clean as well.

The InstantPot is a ‘7 in 1′; it’s a multi-function cooker combining the benefits of a Pressure Cooker, Saute’, Slow Cooker, Rice Cooker, Steamer, Yogurt Maker and Food Warmer. Its 14 micro-processor controlled intelligent programs make your everyday cooking as easy as pressing a button.

It brings your green thinking right into the kitchen by saving up to 70% of energy compared with conventional cooking. In most cases, the Instant Pot reduces the cooking time by 70% and preserves more vitamins and minerals in the natural ingredients. It also has a timer that you can set for your cooking time (start and stop). For busy RV’ers like ourselves, this is a Godsend. Who wants to be tied up in the kitchen/galley when there are campfires to tend, places to go and people to see! Our Instant Pot replaced our one-function Crock Pot.

Just an FYI, we ordered the brand-name ‘Instant Pot’, however there are competitors on the market so I can’t speak on experience of those, but I’m guessing they are very similar in their operations. We found, also on Amazon and through the Instant Pot company, you can order replacement parts (ie. lid, seals, pot inserts). Oh and yes, it comes with a very good instruction booklet and recipe book. Notably, there are even Facebook groups that are for Instant Pot users (recipes, etc.)

So, if you’re looking for a ‘one does it all’ appliance for kitchen/galley, here ya go!

Submitted by: Lisa Brown