More upheavals are rocking the recreational vehicle industry as one company has laid off workers and another is consolidating operations as part of cost-cutting measures.
Newmar Corp., maker of Class A motorhomes, let go about 100 workers from its facility in Nappanee, according to Mayor Larry Thompson. He said he talked with the company last week and learned it was reviewing its options and considering a layoff or a reduction in the work week to 30 hours.
"It was not a gloom-and-doom type of thing," Thompson said of his conversation with the RV maker. "It was just one of those things the RV industry has been through before."
Thompson said he had not talked to Newmar officials since but did hear about the downsizing Wednesday.
Meanwhile, Coachmen Industries Inc. announced a major restructuring plan that includes moving corporate headquarters from Elkhart to Middlebury and consolidating a couple of production facilities, according to RV Business.
In addition to moving its headquarters, Coachmen plans to sell its paint facility in Elkhart and move those operations to Middlebury.
The company will downsize all Class A production lines into one plant and all travel trailer production for its Indiana facilities into one plant, as well as move two support plants in Middlebury into its main Middlebury complex, RV Business reported.
Coachmen turned in disappointing earnings results on Monday, with the company posting a $38.8 million loss for 2007.
Speaking to investors Tuesday, Coachmen President and Chief Executive Officer Rick Lavers said he expects his company to make a profit in 2008, according to RV Business.
In Nappanee, Thompson also was optimistic, saying he is looking forward to a stronger spring and summer for the RV industry. Downturns are part of the RV landscape, which can mean layoffs, but, Thompson said, companies need to take steps to keep themselves in business.
Still, this latest round of cuts comes on the heels of layoffs at Monaco Coach Corp. and Travel Supreme, both in Wakarusa, which, Thompson pointed out, is hurting local families.
"It's going to be a little difficult for a while," he said.