More bad news.... Keystone lays off 300 - Montana Owners Club

HamRad · 08-07-2008, 07:13 AM

I picked up this link over on Escapees forum. Not good news for sure. I was hoping the article would indicate which section of Keystone was doing the layoffs but no details.

HamRad

Keystone layoffs.

bncinwv · 08-07-2008, 08:17 AM

Tends to make you wonder how this and other similar news is aligned to the turmoil in the credit markets. A previous post of mine showed that Thor industries RV backlog orders were down an amazing 61% from the same time last year. I know when we arranged financing for the new house recently, that the hoops you have to jump through were amazing compared to what they used to be. The banks will not even hardly consider the lower tier of those credit rating scores. Knowing that people are getting to work by using credit cards because of higher gas and fuel prices is troublesome to me, but I know that it is happening. People who finance toys (I personally consider anything other than primary housing and primary transportation as toys) are the ones who are really going to be in trouble when money gets short. It is not only RV's but extends to boats, atv's, etc. as well. I can only hope that the situation gets reversed soon, before the economy goes completely south. I feel for the Elkhart/Goshen area it has to hurt everyone.

richfaa · 08-07-2008, 08:27 AM

I found by googling the local Elkhart and Goshen Newspapers that Keystone is doing better than other manufacturers. Many have laid off great numbers and some have gone out of business. Keystone does have a broad base of products but I fear for the higher end models...like the Everest, Montana, Big Sky. The full inpact of the increase in energy and its effect on the economy is setting in and it is going to get much worse. I agree with Bingo's definition of "toys" and these products will hurt the most.

KathyandDave · 08-07-2008, 08:35 AM

I read once that the RV industry is a reliable bellwether of the economy in general, since it runs on consumers' disposable income.

Quote:

quote:Originally posted by HamRad

I picked up this link over on Escapees forum. Not good news for sure. I was hoping the article would indicate which section of Keystone was doing the layoffs but no details.

HamRad

Keystone layoffs.

Mrs. CountryGuy · 08-07-2008, 09:24 AM

I see the return of tents and popups! Wonder what the tent makers are doing, financially and employee wise???

stiles watson · 08-07-2008, 12:28 PM

I feel bad for the employees that have lost their jobs. I hope that Keystone is wise enough to maintain a high level of customer service in a declining market. Cutting corners will destroy your market share. Ask General motors who once had a 50% market share. Now they are struggling to survive. Competitors came with better products and higher quality and ate GM alive. GM is finally really addressing quality seriously. I think quality of product and service will keep Keystone alive. And then there is Thor.......

HamRad · 08-07-2008, 07:29 PM

Many other outfits have quit completely or have had many more layoffs.

Not looking good.

HamRad

old turbo · 08-08-2008, 01:36 AM

I transport rv's part time out of Goshen. I do this to see the grand kids who are in three different time zones. I first called for a rv to Colorado or a state close by on July 28. I am still at the home base. The transport company I work for now has a waiting list on rv's for the drivers. I think you will see a lot of plant closeings in the future, and a lot of dealers go under. I have a auto auction site about 20 miles from me with a huge stock and I mean HUGE of rv's in it. I always thought these were in storage. I know found out these are all repos,and people trying to aution their units off because they can't make the payments.

Bob Pasternak · 08-08-2008, 01:49 AM

Monaco gave notice a couple weeks ago that they're closing three plants in Elkhart county. 1400+ people at Monaco alone affected. Considering that most all RV's are assembled parts, the effect on suppliers can be pretty severe. Indiana is planning on whacking them for unfullfilled tax breaks also.

South Bend Tribune

Waynem · 08-08-2008, 02:59 AM

National RV also closed a few months ago.

BirdingRVer · 08-08-2008, 06:28 AM

Quote:

quote:Originally posted by bncinwv

People who finance toys (I personally consider anything other than primary housing and primary transportation as toys) are the ones who are really going to be in trouble when money gets short. It is not only RV's but extends to boats, ATVs, etc. as well. I can only hope that the situation gets reversed soon, before the economy goes completely south. I feel for the Elkhart/Goshen area it has to hurt everyone.

A lot of RVs, boats, ATVs, etc. are bought with home equity loans. With housing prices dropping so dramatical there is very little equity left to borrow against. Unfortunately, even when the economy gets back on track it will take some time for equity to build back up. I think the "toy" suppliers are in for a very long down period.

Lambchop · 08-08-2008, 10:59 AM

Yet another RV manufacturer is closing there also:http://www.wsbt.com/news/local/26419574.html

Pilgrim International...they make Open Road & Pilgrim 5ver's

We previously owned two of these units

Too bad also are the people who live & work there.

Lambchop

Mrs. CountryGuy · 08-08-2008, 12:27 PM

visit their web site, you will surf on over to one that says:

In June 2008 Pilgrim International Premiered the RV industry's first units built with the technology utilizing CosmoLite, a thermoplastic fiber-reinforced composite to replace traditional wood substrates. CosmoLite is completely formaldehyde free with no out-gassing of Volatile Organic Compounds (VOCs). In addition, the new Pilgrim International trailers manufactured with CosmoLite are completely recyclable. CosmoLite can be ground up and reused like many plastic composites. High density Styrofoam within the vacuum bonded walls can be pulverized and recycled as blown-in insulation. Aluminum framing can be re-melted and reused. Using CosmoLite in the manufacturing process results in less waste when compared to wood products. Utilizing CosmoLite composite materials in place of wood saves precious old growth and rainforests. It also weighs about one third less than the wood it replaces. Lighter weight translates to improved fuel efficiency and the added ability to use smaller tow vehicles. Pilgrim customers may choose Eco-friendly fabrics, with recliners covered in fabric made from recycled plastic bottles! Pilgrim International is revolutionizing the RV industry by bringing these products to the market, and Pilgrim is committed to using advanced technology to lead the way to leaner, greener RVs.

How sad after all the chatter about formaldahyde, etc we have had here on MOC, that one company that was trying to go green, is now in deep doo doo, which last I checked is not green.

dsprik · 08-08-2008, 06:15 PM

Quote:

quote:Originally posted by Mrs. CountryGuy

In June 2008 Pilgrim International Premiered the RV industry's first units built with the technology utilizing CosmoLite, a thermoplastic fiber-reinforced composite to replace traditional wood substrates. CosmoLite is completely formaldehyde free with no out-gassing of Volatile Organic Compounds (VOCs). In addition, the new Pilgrim International trailers manufactured with CosmoLite are completely recyclable. CosmoLite can be ground up and reused like many plastic composites. High density Styrofoam within the vacuum bonded walls can be pulverized and recycled as blown-in insulation. Aluminum framing can be re-melted and reused. Using CosmoLite in the manufacturing process results in less waste when compared to wood products. Utilizing CosmoLite composite materials in place of wood saves precious old growth and rainforests. It also weighs about one third less than the wood it replaces. Lighter weight translates to improved fuel efficiency and the added ability to use smaller tow vehicles. Pilgrim customers may choose Eco-friendly fabrics, with recliners covered in fabric made from recycled plastic bottles! Pilgrim International is revolutionizing the RV industry by bringing these products to the market, and Pilgrim is committed to using advanced technology to lead the way to leaner, greener RVs.

Unfortunately I didn't read anywhere in this article that this unit would be "LESS EXPENSIVE" - a deal killer in these strained economic times. People are foregoing "Green" as a priority in their life right now just trying to get food on the table.

corncob · 08-09-2008, 02:28 AM

Feel for the workers, but does explain why my 2008 Montana is tied up waiting on parts (axle spring replacement). Been told 2x the parts were shipped only to be told yesterday they were still laying on the dock at Keystone. Trying to get punch list done and fix items that quality control should have corrected.

Mrs. CountryGuy · 08-09-2008, 02:30 AM

Cannot agree more Dave!

And, all the other comments I have typed and then deleted. My angst over this entire thing might show.

Mrs. CountryGuy · 08-09-2008, 02:33 AM

corncob,

Have you verified the order has been placed with Keystone?? Not saying this is true with YOUR dealer, but, it has been reported more than once, that the dealer says the parts are in Goshen, when indeed the order has NEVER been placed by the dealer with Keystone.

Have you called Keystone??

Sorry for your delay, so frustrating! Wanna go play and can't!

Good luck.

Glenn and Lorraine · 08-09-2008, 03:41 AM

Quote:

quote:Originally posted by Mrs. CountryGuy

corncob,

Have you verified the order has been placed with Keystone?? Not saying this is true with YOUR dealer, but, it has been reported more than once, that the dealer says the parts are in Goshen, when indeed the order has NEVER been placed by the dealer with Keystone.

Have you called Keystone??

Sorry for your delay, so frustrating! Wanna go play and can't!

Good luck.

Carol you Hit the nail dead on the head.

Quite often customers have been told Keystone hasn't shipped the part only to find the "dealer" never ordered the part. Many times the dealer will try to save on shipping costs by waiting until he has a sufficient quanity of items. A dealer I know would actually wait for a new trailer delivery and arrange with the transport company to deliver the parts with the new trailer.
I would also suggest calling Keystone to verify your dealer's claim.

Lambchop · 08-09-2008, 03:51 AM

Funny how an dealer can sell you a unit & you get it now or tomorrow!

Order parts for it & you wait 6 weeks for the item.

Lambchop

sreigle · 08-09-2008, 02:00 PM

The layoffs and plant closings are bad news. When in Goshen for a few days last month we noticed markedly fewer delivery vehicles on the streets and passing by the service center. Far fewer. Ditto for on the road approaching and leaving Goshen.

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