Keystone, a major RV manufacturer, recently announced closing two plants and laying off over 300 employees. This comes as quite a surprise, especially after several record-breaking years. It looks like things are changing for the RV manufacturing industry.
Let’s take a closer look at Keystone’s decision and if we should expect this to become a trend among RV manufacturers.
About Keystone
Keystone is an RV manufacturer in the Thor Industries family that’s been in business since 1996 and has grown to more than 5,000 employees. Founder, Cole Davis, recruited some of the best and brightest in the RV industry to start a company focused on providing “exceptional value to owners.” The company now maintains more than a million square feet of manufacturing space between its Goshen, Ind., and Pendleton, Ore., facilities.
They focus on creating an easier shopping experience, leading the way in product development, a long-lasting product, and customer support that exceeds expectations when you need them. With over a million owners in their Keystone Nation, they listen to input from owners to take steps towards creating the best product.
What Types of RVs Does Keystone Manufacture?
Keystone is one of the leading manufacturers of towable RVs. You’ll find travel trailers, fifth wheels, toy haulers, and destination trailers. With various RVs and the goal of making shopping as easy as possible, you can take a quiz to help narrow down your options.
If you’re still having a hard time, you can talk with one of their knowledgeable product advisors. They will likely do everything they can to help you find the Keystone RV that allows you to get out and start making memories.
Pro Tip: Want to buy a Keystone RV? Check out these 5 Best Keystone RVs in 2022.
Which Plants in Goshen, Indiana, Is Keystone Closing?
Initial news reports indicated that Keystone would close a single facility, Plant 41 in Goshen, Ind. However, more recent reports suggest the closure of an additional facility, Plant 705. Aside from sending employees an email citing the plant closures effective Sept. 23, the company has been very tight-lipped with further information. They’ve not responded to media requests regarding the future of the plants.
According to US News, Goshen Mayor Jeremy Stutsman said in a statement, “We are working with business and industry leaders to better understand what is happening and see what may come in the future.”
The area surrounding Goshen relies heavily on the RV industry. Two plants unexpectedly closing up shop causes significant concern for the affected communities.
Is Keystone Closing Factories a Sign of the RV Industry Slowing Down?
The RV industry has experienced unprecedented growth in recent years. It was unrealistic for anyone, including Keystone, to expect that type of growth could continue forever. The closures come a month after the RV Industry Association released data showing that RV shipments were down for June 2022 compared to last year. With so much economic change, signs point to the RV industry slowing down.
However, it will take a couple of more months to know whether or not the industry has truly begun to level off. However, rising inflation rates, fuel prices, and campground fees certainly don’t make RVing as attractive as it recently was.
Did You Know: Stats are showing just how bad the RV industry has been tanking this year!
How Are Supply Chain Issues Affecting the RV Industry?
Like many manufacturing industries, the RV industry has had to weather storm after storm the past few years. Supply chain issues have caused many manufacturers to make production adjustments. Lack of product inventory led to IOUs for second air conditioners, switching TV brands, and changing metals.
The supply chain issues meant that RV shoppers were paying more for their rigs and waiting longer to receive them. These factors have made used RVs more attractive to shoppers and have increased the value of quality used RVs.
How Large Is the RV Industry?
According to Fortune Business Insights, the RV Industry hit $55.90 billion in 2021. It estimates this segment will continue to grow through 2028 and reach a value of $87.89 billion. This includes all RVs, motorhomes, towables, residential campers, and commercial motorhomes.
With the increased demand for RVs and travel, it doesn’t take a marketing degree to see that the industry will experience massive growth. We expect to see more campgrounds, RV products, and campground expansions. RV manufacturers will struggle to juggle demand based on unpredictable and variable data.
Are the Costs of RVs Going Down?
Recently, dealerships enjoyed making sales before RVs hit the lots. However, RV dealership lots return to having plenty of inventory on hand, which means a surplus of RV availability.
Prices may come down, but not nearly as fast as they increased. Dealerships will likely give more generous discounts, but don’t expect to pay 30% less than MSRP like you could have three or four years ago. It will take some time before we start seeing those prices again.
How do you think the closure of these two Keystone plants will affect the RV industry? Tell us your thoughts in the comments!
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