ELKHART — Forest River is expanding its operations in DeKalb and LaGrange counties at a time when the recreational vehicle industry is experiencing high demand from consumers for products.
In an announcement, the company said it plans to add up to 369 new jobs by the end of 2023.
The company said it will invest $3.5 million to expand its 20-acre manufacturing campus at 685 E. Main St. in Butler, constructing and equipping a 63,000-square-foot production facility and expanding its existing 30,000-square-foot building. The new facilities will allow Forest River to enhance production of the XLR Toy Hauler — the company’s newest line of toy hauler recreational vehicles. Construction began this month, and the company expects the expansion to be complete by February 2021.
In LaGrange, Forest River is planning a $3.5 million expansion at its facility at 1500 N. Detroit St., constructing and equipping a 95,000-square-foot building to increase manufacturing capacity of its Cherokee RV line. The company expects to break ground on the LaGrange expansion this October, according to the news release from the Indiana Economic Development Corp.
“We’re excited to continue expanding our operations in Indiana, which provides access to a talented workforce, strong RV manufacturing ecosystem and business-friendly environment,” said Mike Stump, project manager at Forest River. “With the support of the state and local communities in Butler and LaGrange, Forest River will continue to deliver high-quality products to customers around the world, while providing great career opportunities for Hoosiers here at home.”
Forest River, which employs 9,500 people in its 10 Indiana locations, plans to add 120 new jobs in Butler and 249 new jobs in LaGrange. The company will begin hiring in January 2021 at both locations for manufacturing, operations, administrative and management positions.
The company’s expansion plans come during a time of unprecedented growth in the recreational vehicle industry. The growth is being spurred by people turning to RVing as a way to vacation and travel during times of restrictions due to the COVID-19 pandemic, according to industry officials.
The industry recorded its highest July shipment numbers in four decades, the RV Industry Association announced Tuesday. The organization’s monthly survey of manufacturers found that total RV shipments ended the month with 43,035 units, an increase of 53.5% from the 28,044 units shipped in July 2019.
“RV shipments continue to show impressive gains again this month,” said RV Industry Association Chairman Garry Enyart. “Reflective of the booming RV sales across the country and the appeal of RVs to a wide range of consumers, production is up this month for both the towable and motorized segments of the industry.”
Towable RVs, led by conventional travel trailers, totaled 39,160 units for the month, an increase of 56.6% compared to last July’s total of 25,002 units. Motorhomes finished the month with 3,875 units, up 27.4% compared to the July 2019 total of 3,042 units.
Park model RVs finished the month up 17.6% compared to last July with 334 wholesale shipments.
“RVs have been the ideal way to travel this summer, providing the freedom and fun of RVing while also allowing people to control their environment. As we look toward fall, families and professionals who can work and learn from the road will continue to drive interest in RVing,” said RVIA President Craig Kirby. “Our manufacturers are working very closely with their dealer partners and component suppliers to meet the increased demand for RVs.”
MAYORS COMMENT
“We’re happy that Forest River chose Butler for their additional expansion,” said Butler Mayor Mike Hartman. “We have a very talented and versatile workforce in which they can pull from. We look forward to helping Forest River and the XLR Boost Division in growing their presence in Butler and northeast Indiana.”
“On behalf of the LaGrange Town Council, we’re very excited and thankful to see Forest River’s continued growth and investment in our community,” said Mark Eagleson, LaGrange town manager. “We look forward to working with them on their planned expansion.”
According to the IEDC, the IEDC offered Forest River up to $1.33 million in conditional tax credits based on its Butler job creation plans and up to $2.8 million in conditional tax credits based on its LaGrange job creation plans. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired. The city of Butler and city of LaGrange will consider additional incentives at the request of the DeKalb County Economic Development Partnership and LaGrange County Economic Development Corp., respectively.
Founded in 1996, Forest River is a subsidiary of Berkshire Hathaway Inc. and one of the largest RV manufacturers in the U.S. The company produces travel trailers, fifth wheels, pop-up tent campers, park model trailers, destination trailers, cargo trailers, commercial vehicles, buses, pontoons and mobile restroom trailers.
Indiana manufactures nearly 83% of all RVs in the United States and Canada, according to the IEDC.
