Nappanee, Ind.-based Newmar Corp. reduced its workforce April 1 due to a softening of early-season sales, according to a report from the South Bend Tribune.
While the company, which was founded in 1968, did not say how many employees were laid off, it did release a statement to the Tribune.
“Through the first part of the year, there has been a softening of sales in certain segments of the Class A motor coach market,” John Sammut, Newmar’s vice president of sales and marketing, said in the statement. “We believe this change in sales has been related to pre-election activity and the fluctuation of the stock market. As a result, the demand for Newmar motor coaches has been lower than the current production rates, which has consequently caused an increase in our dealer inventory.”
The company does not build speculative orders, it said, only those placed by dealers or retail customers. Newmar felt it best to adjust its production rates to match its current demand.
Newmar produces about 10 models — with starting prices ranging from about $106,000 to $881,000 — including the Dutch Star and Mountain Aire Class A coaches.
“Early in the year, the higher-end products don’t move as well as in the mid to late part of the year,” said Tom Walworth, president of Grand Rapids, Mich.-based Statistical Surveys Inc., which provides market data solutions for the RV industry. Instead, there is usually a jump in sales for RVs costing $150,000 or more in the second and third quarters of the year.
Once the dealers work off some inventory, the company likely will call back workers, he said, because currently there is a demand for RVs, including high-end models.
Last year, at the national RV trade show in Louisville, Ky., he noticed what he called a “product creep.”
“Units are bigger and they have more content,” he said. “The price points are going up, but it’s because of the content that is being put in.”