Lancer Camper. Inc Sold Out

[mkasner]

Sad day for Lance customers. Owners are rolling in the $$$

https://www.streetinsider.com/Corporate+News/REV+Group%2C+Inc.+%28REVG%29+Reports+Purchase+of+Lance+...

[HMS_Beagle]

Supply of materials into the factory is the beginning of the pipeline, but the short end. It is out of the factory into the customer's hands that can be very long. Years even. That's the forecasting and sell through problem car makers have, and much worse for the RV industry. It is not uncommon to see a brand new, 3 year old unit sitting on a lot, discounted by 40 percent. There isn't much profit in that. A few builders seem to be able to sustain a build-to-order business, but those are not the Lances of the RV world.

[Kayteg1]

rider997 wrote:


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.

Transport is cheap those days. Beside the fact that lot of things transported here from China are WAY cheaper than manufactured locally, years ago I used to work for still mill located close to San Francisco.
Corporation was doing lot of things for profit, like making us to come to work at 2 AM (!) but finally they bought plant in Seattle and energy cost savings alone covered cost of hauling the steel 900 miles.

[3_tons]

What difference does it make who owns Lance??....do some suppose the new buyer is going to sabotage the value of their new costly acquisition, the ‘Lance’ brand??....”Move along, theres nothing here to see”.......

[rider997]

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.

[jimh406]

Kayteg1 wrote:

jimh425 wrote:


Sounds like you have a different standard than the area where you moved to in Nevada. That doesn't make them unethical.

Sounds like you'd accept TC with gaps in the roof and no caulking when it is build in certain area?

Not the same thing, of course.

[Kayteg1]

My bet would be for Oregon.
They are one of the biggest, if not the biggest manufactured houses producer and house build is slow lately.
Meaning lumberyards, factories and workers are standing by.
Country Coach was doing very well there, meaning skills are there as well.
I had 1990's era DP build by Amish and it was exceptional quality.
How much the habits change with new generation?

[HMS_Beagle]

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.

[SidecarFlip]

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.

Plus here, the have 'Amish Craftsmanship' (a joke) instead of Mexican Craftsmanship (another joke).

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.

No one will know until they announce their intent. How it works but I see that happening and happening rather quickly.

[SidecarFlip]

Kayteg1 wrote:

jimh425 wrote:
... In any case, what difference does it make where Lance happens to be.

JOB ETHICS.
I retire from construction in San Francisco area.
We did charge high, but we did work efficiently and with excelent quality.
I moved to Las Vegas and hired contractor for pool construction.
The gunite shell contractors neglected removal of loose dirt from excavation before concrete pour. The crew was 7, so no lack of man power.
So jeopardizing $20,000 job over few minutes of preparation is standard operating procedure in this city.
The walls are 2" off plumb, go in wave lines and the pool is 5" shallower than spec.
I even made complain to Contractor licence board and they consider that "Industry standard"
So what would be camper build "industry standard" in Nevada?
You think contractors charge less for the job than in San Francisco? Think again.

Sounds to me like you need to leave Lost Wages and locate elsewhere.

[SidecarFlip]

BradW wrote:
Anyone know the percent of lance tc vs lance towables sold each year?

In my view, Lance got into pull behinds for market share and capital gain. The TC segment will always be a small part of the RV industry as a whole.

I would imagine that Lance / REV will push the trailer aspect even harder in the future.

[BradW]

jimh425 wrote:

BradW wrote:
Anyone know the percent of lance tc vs lance towables sold each year?

That would be interesting considering a lot of consolidation seems to be happening in trailers/fifth wheels.

I'm just wondering if Lance got bought out for their TCs, towables or both?

[Kayteg1]

jimh425 wrote:


Sounds like you have a different standard than the area where you moved to in Nevada. That doesn't make them unethical.

Sounds like you'd accept TC with gaps in the roof and no caulking when it is build in certain area?

[jimh406]

Kayteg1 wrote:
I even made complain to Contractor licence board and they consider that "Industry standard"
So what would be camper build "industry standard" in Nevada?

Sounds like you have a different standard than the area where you moved to in Nevada. That doesn't make them unethical.

[Kayteg1]

jimh425 wrote:
... In any case, what difference does it make where Lance happens to be.

JOB ETHICS.
I retire from construction in San Francisco area.
We did charge high, but we did work efficiently and with excelent quality.
I moved to Las Vegas and hired contractor for pool construction.
The gunite shell contractors neglected removal of loose dirt from excavation before concrete pour. The crew was 7, so no lack of man power.
So jeopardizing $20,000 job over few minutes of preparation is standard operating procedure in this city.
The walls are 2" off plumb, go in wave lines and the pool is 5" shallower than spec.
I even made complain to Contractor licence board and they consider that "Industry standard"
So what would be camper build "industry standard" in Nevada?
You think contractors charge less for the job than in San Francisco? Think again.

[jimh406]

BradW wrote:
Anyone know the percent of lance tc vs lance towables sold each year?

That would be interesting considering a lot of consolidation seems to be happening in trailers/fifth wheels.