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Town officials in Middlebury, Ind., agreed Monday (March 3) to give Coachmen Industries Inc. with a property tax break related to the company’s plan to build a new Class C motorhome assembly plant in the Northern Indiana village.
The tax break would involve the phasing-in of property taxes on the new factory over a 10-year period, which would save Coachmen around $400,000, according to the Goshen News in Indiana.
Coachmen officials have said they wanted to begin construction of the 128,000-square-foot assembly plant as soon as possible so it could begin production in the third quarter of this year.
The new factory will be built at Coachmen’s manufacturing complex at the north edge of Middlebury. It would replace the aging Plant 102.
Coachmen also intends to expand its towable RV assembly operation in Fitzgerald, Ga. Details about the Georgia expansion were not available.
Of course, executives at Coachmen and other RV manufacturers are concerned high fuel prices and a possible war with Iraq would have a negative impact on consumer psychology. However, they also believe any negative impact would be short-term and that the RV market would quickly return to the growth path.
On the subject of current market conditions, Mike Terlep, president of the Coachmen RV Co. subsidiary, told the Elkhart (Ind.) Truth, “We’re seeing continued strength in the market, with a little bit of conservatism among some dealers.
“Retail activity appears to be strong in many regions of the country,” Terlep said. “Overall, Coachmen RV is pleased by the results we’ve seen at the early (retail) shows.”
Dealers are continuing to build inventories “particularly in motorized products,” Terlep added.