MARILYN ODENDAHL, Truth Staff
modendahl@etruth.com
GOSHEN -- Keystone RV Co. has announced plans to expand production and hire a couple hundred more workers but, while the news is welcome in an industry ravaged by the economic recession, no one is willing declare a recovery has begun.
"Keystone's had a very good year," said president and chief executive officer Ron Fenech. "However, we have a large number of former employees who aren't working. Until we get people back working across the county, it is difficult to say these are good times."
The towable manufacturer purchased a 140,000-square-foot building at 2639 Lincolnway E. to increase production of its travel trailer and fifth wheel brands. The additional capacity is needed, Fenech said, because sales of Keystone units have been climbing, consumers have a pent-up demand from the winter and the economy has made a small improvement.
"People are feeling more comfortable making large purchases again," he said.
With two, and possibly three, manufacturing lines to be installed in the new building, the company expects to have to hire 200 production workers. Fenech called the employment projections a "very conservative estimate" and said the total added to the payroll could be higher. The hiring will take place in October and November.
This is the first significant expansion and hiring announcement out of Keystone, one of the stronger RV companies, in almost two years.
To David Daugherty, president of the Goshen Chamber of Commerce, it is "fantastic news."
Many in the business community are still cautious, Daugherty said, but the economy appears to be getting better and Keystone's plans might be part of that upward trend.
"I think overall, we are beginning to see the light of day but like everybody says, it's going to be a little slower, a little longer than normal."
Wholesale shipments of RVs are predicted to reach 136,500 units in 2009, according to a forecast from Recreation Vehicle Industry Association. That represents a 42 percent drop from 2008 and a 61 percent decline from 2007.
Shipments should rebound in 2010, possibly to 169,500 units, but the RVIA contends that unlike past recoveries, RVs will not lead the way out this time.
Sluggish economic growth, coupled with consumers' shift to putting more of their money into savings, will dampen the RV market in the coming years.
Acknowledging the economy remains uncertain, Fenech said production at Keystone has exceeded levels recorded during this period in 2008. The company's share of the retail market has grown more than 22 percent in the past year and officials see the trend continuing.
There is still a lot of risk, Fenech said, but "we feel the greatest risk for us is not making this move."