By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
GOSHEN -- Decorator Industries' decision to consolidate its Elkhart County plants is a sign that the slowing production in the recreational vehicle manufacturing plants is trickling down to the suppliers.
The soft furnishings maker will be moving the Elkhart operation, which makes pleated shades at 1655 Gateway Court, to the Goshen facility, which sews draperies, bedspreads and valances at 1614 N. Eisenhower Drive. Both plants served local RV companies and with the downturn, each facility was running at half capacity, said Bill Johnson, president and chief executive officer at Decorator Industries.
The company's net sales to the RV manufacturers have dropped about 35 percent to $9.32 million in the opening six months of 2008, compared to the same period in 2007, according to the second quarter report filed with the U.S. Securities and Exchange Commission.
Since the beginning of the year, Decorator Industries has been laying off Elkhart County workers. The Goshen facility has cut 40 people and Elkhart has cut 25 people, leaving a current payroll of 115, Johnson said. The consolidation, which is expected to be completed by Oct. 31, 2008, may bring another round of layoffs as a "small handful" of workers in duplicate positions could be let go.
Despite the consolidation, the company is not planning to leave the RV industry.
"We know it's going to come back," Johnson said of the RV market. "It's just a matter of weathering the storm."
While the RV segment of Decorator Industries' business is down, the hospitality portion, which primarily serves the hotel industry, is strong with sales up about 38 percent in the first six months of 2008. The increase is helping Decorator cope with the sagging RV sales.
In fact, Johnson said the company is looking to capitalize in the current RV market and pick up new clients or acquire competitors.
Decorator, headquartered in Pembroke Pines, Fla., became a supplier the RV makers in 1988 and, through an acquisition, established a presence in Goshen in 1995. The acquisition of Specialty Window Coverings in 1997 brought the company to Elkhart.
The company also supplies the manufactured housing makers. The acquisition of Alabama-based Doris Lee Draperies in late 2007 has boosted manufactured housing segment sales a little more than 19 percent during the opening six months of 2008. However, the slump in that industry has caused Decorator to close facilities in Arizona and Georgia, Johnson said.