Goshen, Ind.-based Keystone RV Co. announced today (Feb. 2) that it will consolidate manufacturing facilities in order to improve efficiencies as a result of the “weakening economic conditions that have adversely affected the RV industry.”
Keystone RV said it will lay off approximately 350 workers effective throughout April, representing approximately 15% of the company’s work force.
The Thor Industries Inc. subsidiary will also close several of its plants, including the Howe, Ind., facility, and move production of its Passport Ultra Lite product line to the company’s Goshen production complex.
“These layoffs are very disappointing to all of us at Keystone,” said Ron Fenech, Keystone president and CEO. “We realize the huge impact this will have on the lives of everyone involved. We have delayed this move as long as we could. However, we can no longer ignore the economic realities of what is happening in all of North America. These changes help us become more efficient and better prepare us for the future.”
Fenech noted that the latest wholesale and retail figures show that sales of RVs continue to decline industrywide.
“As part of Thor Industries, Keystone is financially strong and can weather just about anything the economy can throw at us,” he said. “Looking ahead, we expect the next six to 12 months will be very challenging for the RV industry. At the same time, I am encouraged by the level of sales activity we see at the early season RV shows. Although sales are not great, they are much better than we would have expected given all the bad news we see in the press.”