Here in Elkhart County, people have often taken a certain, albeit hesitant, pride in the moniker, “RV Capital of the World.”

Sure, it’s sort of a corny distinction and can even induce a roll of the eyes from those who don’t understand.

Along the Toll Road striped across the northern part of the county, people on their way to Chicago or New York must snicker as they drive past the RV Hall of Fame and possibly wonder how far down the road the world’s largest ball of twine must be.

But, those of us who do understand realize the enormous impact this industry has on our economy, our lifestyle, even our demeanor. We know when business is booming and we can certainly tell when it isn’t.



This past year has been no laughing matter.

Elkhart County has the highest unemployment rate in the state in large part because of the fragile health of the recreational vehicle business.

Punchlines aside, the RV industry has been a $10 billion business every year since 2002 and a $14 billion business every year since 2004. In the past 30 years RV sales have reached an estimated $200 billion. Approximately $117 billion of that has been in the past 10 years alone.

It is currently estimated that 8.2 million recreational vehicles are on the road today.

As the “RV Capital of the World,” Elkhart County accounts for about 50 percent of all RV production. One doesn’t need a degree from the Wharton School of Business to take note of the tremendous amount of eggs we keep in the RV basket.

A quick glance at the Recreational Vehicle Industry Association directory tells us there are more than 40 RV companies with more than 50 manufacturing plants in Elkhart and LaGrange counties.

The souring global economy has hit the RV industry and Elkhart County like a punch in the nose. As the Dow turned south and credit streams dried up, demand for recreational vehicles has dwindled significantly. Shipments in October totaled 13,500 units, down 12.3 percent from September and 52.5 percent from a year ago.

Shipments by the end of the year are expected to be just 266,800 units, down from 353,400 in 2006 and a 30-year high of 390,500 in 2005. This will likely be the first time in the past seven years that the industry has failed to eclipse 300,000 shipments.

In just the past 14 days, the pages of this newspaper has reported the closing of the Starcraft plant in Topeka and the pending sale of Coachmen Inc.’s RV division in Middlebury to rival Forest River of Elkhart for an estimated $42 million.



The Topeka closure in LaGrange County will likely cost 244 jobs in the town of 1,100. The Coachmen sale could eliminate 15 percent of the current work force there.

Because of our concern with the current health of Elkhart County’s most notable industry, The Goshen News is sending City Editor Roger Schneider to the 46th Annual National RV Trade Show in Louisville this Tuesday through Thursday. Roger will provide Goshen News readers with daily reports of the convention and the state of the industry.

The intent is to inform our readers with the very latest information during this very uncertain time in the history of RV manufacturing. This is the first time in recent memory the News has sent a reporter to cover the annual RV show.



This decision was not made lightly. These are perhaps even tougher times for the newspaper industry. Travel budgets are tighter than ever. Roger is a veteran journalist with a firm grasp of this issue and its effects on our community. We look forward to his reports.

Despite the immediate forecast, history tells us that the RV industry can weather such financial storms. In 1978 some 389,900 RV units were shipped and business was booming. But that affluence went out of style quicker than disco when the country slipped into recession in 1979.

That year shipments fell 48.9 percent. They dropped another 46.2 percent in 1980. That was essentially the industry’s shallowest point of the past 30 years.

Some say the RV market ripe for a turnaround by mid-2009. By then, they expect the credit pinch will begin to loosen and by 2010 the number of households owning an RV could reach 8.5 million.

This year RV rentals rose by 18 percent during a stretch of the highest fuel prices in history. Campground owners say RV reservations grew between 5 and 15 percent in 2008.

Experts feel that population and demographic trends also favor the RV industry in the years to come.

Let’s hope they’re not pulling our legs.

Figures used in this column were obtained from the Recreation Vehicle Industry Association and the Recreational Vehicle Rental Association.