Lancer Camper. Inc Sold Out

HMS Beagle wrote:

jimh425 wrote:

HMS Beagle wrote:
I'd have thought they would have all left long ago, and California would look more like - well, Michigan or Kentucky.

Interesting how you worked Michigan and Kentucky into the discussion, but I don't think we'd probably agree on any measures that "prove" California is better. In any case, what difference does it make where Lance happens to be.

I only mentioned those two states because they were brought up by others as examples. I'm not trying to prove California is better than anywhere. I was born here and as far as I am concerned the more people that leave the better. But the idea that a business like this can substantially improve its profit merely by a change of scenery is generally a fantasy. Sure if they were currently operating in downtown SF or SJ, but Lancaster?

SidecarFlip wrote:
My view is, reduce the supply chain distance and reduce your built in costs. Why I said they will relocate to Indiana, Ohio or (long shot), Michigan because all their suppliers are here or at least the ones that incur the highest freight charges.

I would not be at all surprised if the State of Indiana isn't already wooing them to relocate to the 'RV Capital of the United States' with tax incentives and / or real estate tax abatements.

There might be a small argument for being near Elkhart, as the supply chain for some appliances might be shortened by a few days. I suspect that someone like Lance has the leverage to run a JIT supply chain with no ownership until pulled for assembly though, so it may not contribute anything. If Lance isn't doing this, it would be a more productive pursuit than a speculative move to wherever. Skilled workers are clearly not required in the RV business - just look at the products.

Tax breaks are another thing entirely and are the reason than companies with nervous feet might walk. Many local communities are beginning to wise up to this though, as are the Feds. A local jurisdiction can only give away so much before there is nothing left, and the competition to do so has ruined some already.

Don't overlook the fact that, while not an insignificant cost, component transport is relatively efficient. Moving RVs involves paying to move empty boxes full of air. Lance has a huge west coast market and the cost of transporting RVs there from the Midwest would easily consume any possible savings on parts freight. Consumers look at the OTD price, which includes ground transport charges.