Just like the housing bubble, there was a bubble in the RV industry
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Just like the housing bubble, there was a bubble in the RV industry
Winnebago's new CEO, Randy Potts says "Many competitors went bankrupt. We survived and are strong. I'm looking ahead at a different chapter. We're figuring out where we're going to be in five years"

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6/28/2011 - The following extract from an article is by, and reproduced from, DONNELLE ELLER DesMoinesRegister.com
 Link to full story 

Winnebago's new CEO - Randy Potts, 52, an Iowa native who has worked in manufacturing since graduating - follows Bob Olson, who remains the board chairman.

Potts has spent nearly 28 years at the northern Iowa motor home manufacturing plant, working his way up from a senior tool designer to vice president of manufacturing to president in January and CEO last week.

Potts talked with The Des Moines Register on Thursday as the White House announced President Barack Obama would visit Iowa on Tuesday to discuss the future of manufacturing.

Q. What would you like President Obama to do to help the manufacturing industry?

A. It's saddening to see how many manufacturing jobs this country has lost. But with globalization of economies, the world is a much smaller place.

  
Manufacturing jobs that involve a lot of labor, especially unskilled labor, will just keep going to cheaper sources. There's nothing our government can do about that. Protectionism has failed. We all have to learn how to adapt in a changing world.

Q. What are important economic factors for Winnebago? Is it jobs, retirement funds?

A. It's a multitude of factors. Just like the housing bubble, there was a bubble in the RV industry. ... The industry has a long history of working on either side of normal, but sales spiked to 70,000 units in 2004. Looking back, the RV industry was overbuilding. Once the economy came undone, sales plummeted. The consumer base went from 70,000 to 20,000. But the dealer network was stocked with inventory for that higher sales level. Manufacturing was stacked up for the higher sales level. It took a long time to work itself out.

 
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When will we get back to normal?...:

A lot of people ask when we'll get back to normal, but we don't know. We simply don't know. Nobody knows.

We'll continue to gain market share. We'll take business away from our competition. But it's a bigger piece of a smaller pie.

We need to look for long-term sources of revenue. The towable trailer manufacturer we purchased in Indiana (SunnyBrook RV) is a good sampling of what we have an appetite for.

Q. Will workers, analysts, others who follow Winnebago see a big change between your leadership and Bob Olson's?

A. Bob was faced with a bottom falling out. He dealt with that very well. Many competitors went bankrupt. We survived and are strong. I'm looking ahead at a different chapter. We're figuring out where we're going to be in five years.

What we have to do now is more strategic. ... Winnebago is over 50 years old. The culture of this company, the product, quality, everything about this company has taken years to evolve. We can't be reckless. We have to be very careful.


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Re: Little Dealer Little Prices RV Relocation Liquidation at Indian SchoolBill AbernathyThe "Little Dealer Little Prices" showed "Very Little" interest in entertaining our interest in any product priced at less than $30,000. We got a rude salesman, a bumpy ride to a few RV's that did not meet our needs, and not even a "Thanks for coming in." We went to RV Trader and drove to Carson City to get our wonderful 2008 Chalet 1935XL - which curiously has the floor plan of the 1937. We would have paid $28K for a new one, but the local Chalet dealer took 7 months to call us back. Thanks for saving us $15K
Re: Little Dealer Little Prices RV Relocation Liquidation at Indian SchoolBill AbernathyThe "Little Dealer Little Prices" showed "Very Little" interest in entertaining our interest in any product priced at less than $30,000. We got a rude salesman, a bumpy ride to a few RV's that did not meet our needs, and not even a "Thanks for coming in." We went to RV Trader and drove to Carson City to get our wonderful 2008 Chalet 1935XL - which curiously has the floor plan of the 1937. We would have paid $28K for a new one, but the local Chalet dealer took 7 months to call us back. Thanks for saving us $15K
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Re: Thor Motor Coach Showcases Brand New 2015 Motorhomes on the West CoastKen BrownI had posted a comment about our 2013 Thor Tuscany 42WX back on 11/20/2014. I found out that thor problem was not Thor but was the dealer, Giant RV in Colton Calif. They have to be the worst repair shop around, they had the coach from 11-1-14 thru 11-21-14 and only put the dishwasher together in that 3 week period and then they had it from 12-1-14 thru 1-27-15 and did not get everything fixed. They laid dirty parts and tools on top of our new bedspread, leaving a stain. After we got the coach back on 1-27-15 we found a screwdriver stuck under the rear slideout, I called them and to this date I have not heard back from them. I now have the coach at a different repair shop. I would say to stay away from Giant RV.
Re: How to sell your RV without really tryingCathy TMy RV is on consignment at a local dealer. I just found out it is being rented out.I am not happy. What can I do? This is a BRAND NEW unit.
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Re: Thor Motor Coach Showcases Brand New 2015 Motorhomes on the West CoastKen BrownWe bought a new 2013 Thor Tuscany 42WX at this show. Got to use it one weekend had to take it back to the dealer and it has been there for 3 weeks and still not done. I hope the factory and the dealer get it together soon and get it fixed.
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Re: RV industry bubble - just like housingPatty O CamperI enjoyed reading the interview with Randy Potts, the new CEO of "Winnebago". His comments confirmed the feeling I had about the economy and it's impact on the RV Industry. I also noted he ignored the interviewer' s question about "how president Obama could help the RV industry" the question was stupid. The best thing government can due for the economy in general is to back-off on all the regulations that have strangled the American spirit of self-reliance. The crash in the economy was the result of government involvement in the housing industry. Insisting that banks loaned money for real estate to people who could never make the payments....all in the name of "equality". Banks started to fail, the housing market went into a depression and all because too many unqualified mortgage holders failed to make their payments. During this crisis the government continues to print money every week reducing the value of our currency on the world market and fueling inflation in this country. It is good to see Winnebago isn't in line for any government handouts like too many members of our dependent society seem to be. Reduce regulations, build the Keystone pipeline and the price of fuel for our RV's will go down....and get the ethanol out of our gasoline....it is reducing gas mileage and destroying our motor vehicles!
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SOME OF THE LATEST COMMENTS ABOUT RVING NEWS ITEMS:
(See also general comments further down this page)
Re: 2016 Leisure Travel Vans Unity Corner BedAndyInteresting8/22/2015 3:11:00 AM
Re: Little Dealer Little Prices RV Relocation Liquidation at Indian SchoolBill AbernathyThe "Little Dealer Little Prices" showed "Very Little" interest in entertaining our interest in any product priced at less than $30,000. We got a rude salesman, a bumpy ride to a few RV's that did not meet our needs, and not even a "Thanks for coming in." We went to RV Trader and drove to Carson City to get our wonderful 2008 Chalet 1935XL - which curiously has the floor plan of the 1937. We would have paid $28K for a new one, but the local Chalet dealer took 7 months to call us back. Thanks for saving us $15K 7/26/2015 4:44:00 PM
Re: Little Dealer Little Prices RV Relocation Liquidation at Indian SchoolBill AbernathyThe "Little Dealer Little Prices" showed "Very Little" interest in entertaining our interest in any product priced at less than $30,000. We got a rude salesman, a bumpy ride to a few RV's that did not meet our needs, and not even a "Thanks for coming in." We went to RV Trader and drove to Carson City to get our wonderful 2008 Chalet 1935XL - which curiously has the floor plan of the 1937. We would have paid $28K for a new one, but the local Chalet dealer took 7 months to call us back. Thanks for saving us $15K 7/26/2015 4:44:00 PM
Re: Little Dealer Little Prices RV Relocation Liquidation at Indian SchoolBill AbernathyThe "Little Dealer Little Prices" showed "Very Little" interest in entertaining our interest in any product priced at less than $30,000. We got a rude salesman, a bumpy ride to a few RV's that did not meet our needs, and not even a "Thanks for coming in." We went to RV Trader and drove to Carson City to get our wonderful 2008 Chalet 1935XL - which curiously has the floor plan of the 1937. We would have paid $28K for a new one, but the local Chalet dealer took 7 months to call us back. Thanks for saving us $15K 7/26/2015 4:44:00 PM
Re: White House Opens Door To Tolls On Interstate HighwaysdiverartWanted ::: windshields for Rexhall Aerbus---USED=OK diverart@yahoo.com 60558014244/27/2015 5:31:00 AM
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