RV industry death spiral...

thestoloffs wrote:

laknox wrote:
I've said for several years that one of the most basic things that an RV mfr could do would be to stop paying for piece-work and pay straight wages/salaries. Yes, this would cause a drop in production, but it almost certainly would lead to less warranty claims and higher customer satisfaction and increased sales. Profits would increase because supply would be less, therefore there would be less incentive to discount. Some sales would be lost due to higher prices, but these would almost certainly be customers who were marginally able to afford a particular unit to begin with.{snip}

Lyle, I agree with your approach. Here's my "proof":

I have a 2010 Born Free 26' Class C. It was built by a team of 4 people, not an assembly line, who are paid straight wages.

Born Free offers a 3 year bumper-to-bumper warranty on their work. However, the key to their QC is that, during those 3 years, every calendar quarter that no warranty claims are made against my coach -- that team receives a bonus.

So, if they build each coach right the first time, they'll be rewarded for the next 3 years!

OK, I concede that BF is a lower volume manufacturer than the Thor divisions, and that there are far less Class C's built each year than travel trailers.

But, why couldn't they run such a bonus plan for each workgroup on the line?

(BTW, I worked for both Chrysler & GM, so I have some insight on how large volume lines are organized and operated.)

Friggin' =brilliant=! This is exactly what I'm talking about! =Anything= to get the workers to take some pride in what they build, INCLUDING the executives.

Lyle

westernrvparkowner wrote:
One of the "reasons" the author of the article quoted believes is symptomatic of the death of the RV industry is the supposed fact that only 3 percent of the workers in the RV industry own RVs. I would assume that would be the case in any luxury business. I doubt many workers at Boeing, or Gulfstream own a Boeing Business Jet or A Gulfstream G650. Doubt many of the line workers at Ferrari own a Testa Rosa. What percentage of Rolex employees were Rolexes? A dubious argument at best.

But many workers at Ford , GM, and FCA own F-150's , Silverado's and Rams. Quality in trucks has greatly improved over the years. Those workers are very proud of their products.

Gulfstream sells a handful of G650's in a month. The RV industry sells thousands of units in a month.

Your argument is not valid.

I do agree that outside pressures will create a whole new business model for RV manufacturers. When you see what you can get in Europe for a fraction of what we pay here, or when you consider what the Chinese might produce once they enter the market, I believe the North American builders are in for a rude awakening.

Unfortunately it is their workers who will suffer rather than the business fat cats.

This thread is really starting to stray...

It all is about trade-offs. I bought an entry level travel trailer new, knowing that it is the "runt of the litter", because it had no slide-outs, and I would have to learn electrical, plumbing, and other skills in order to keep it maintained.

However, if I were to recommend a quality trailer that is not going to leak, or rot into uselessness in five years, I would recommend a horse trailer manufacturer (Bloomer Trailers out of Salado is one place), and have them do the job right. Just the fact that they use a one piece aluminum roof over rubber and aluminum framing will extend the life of the trailer well past almost anything "mass-produced" today.

A friend of mine had a trailer done this way. It has little in the way of plumbing and electrical (mainly an A/C with a heat strip), but it has gone through ice storms and 110+ degree heat easily. The trailer isn't really cared for, so it shows how well built it is when it just sits for months unused, which is a testament to how well Pace American built things.

There is exceptional build quality available in every type of RV class. Almost all of them are boutique manufacturers making only hundreds of units per year. Why? Consumers can't afford that level of quality and workmanship. Part of the problem is consumer expectations. It's the same problem with people buying a starter home but they expect granite counters, whirlpool tubs and home theaters. Something has to give. The highest cost in any business is labor. Best way to hit a price point is to take labor out of the process. That directly effects build quality and workmanship.

People want to buy a trailer for the cost of a sub compact car yet they want a fireplace, an outside kitchen, a residential refrigerator and a 55" flat screen TV. Oh, and they want to tow it with a Toyota Rav4.

This industry only changes when customers stop giving bad manufacturers money instead of getting sucked into amenity rich coaches at a $200 monthly payment.

colliehauler wrote:
I hardly ever hear about quality issues with Newell or Provost conversion.

I think it would be "tacky" to give over 1 mil. for a MH and then complain about the quality. Only "cheap" people complain about quality after they inspect and then purchase a MH. If it does not meet your expectation, don't purchase it. Maybe I just don't understand. I have owned 2 MH for 6 yrs. Never carried it to a Dealer for repair and never complained on a forum about anything. :S

I hardly ever hear about quality issues with Newell or Provost conversion.

RVs have been around for 100 years with many ups and downs in economy. Nothing is going to happen to RVing.

http://www.smithsonianmag.com/history/commemorating-100-years-of-the-rv-56915006/?no-ist

Say NO to death! It just ain't going to happen! RVing is here to stay, because it's exciting and fun. But, just to cover my bases, my motorhome is prepped for doomsday.....:B:B