Flexsteel Exits RV Market

[throgmartin]

Wow. I didn't see this coming. Flexsteel has manufactured seats for coaches for years. I am guessing this will leave a few coach manufacturers scrambling.

This is a sad departure as Flexsteel made good seating products.

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[Joel Sheriff]

Are they knowing something we are not. With the evident downturn in the economy and a slowing sales of large ticket items as well as the decade its going to take us to crawl back from this virus, are they seeing something different.  The Rv market was on the rise but then the poop and fan scenario where do you think our industry is headed. I already heard parts are going to be sparse because of shipping from China etc.  

[bill4029]

I prefer to think that once we are back on a more normal, or a new normal track we will actually grow this "RV Market" as I believe people are learning that life is short and fragile. You need to enjoy as much as you can along the way! In addition there will be those buyers that want to have their home on their backs as a safe way to travel, vacation and see life !  Either way I believe each company will take a measured approach to getting back to business. We can not know what was going on internally with Flexsteel and this decision might have been in the works already ! 

[throgmartin]

I think Flexsteel was looking for an exit strategy from the RV sector and Covid provided them with it.  I guess my question is parts availability going forward.

This entire Covid deal has caused some shake up's in different industrial sectors. Some industries are doing well while others are taking huge hits.  Dave Pratt and I had a phone conversation a week ago  and his company along with our 3 companies have not seen a down turn at all. A lot of people are stuck at home and not traveling so are doing maintenance on their coaches which is why we are so busy. Dave is seeing classic car guys doing the same thing, working in their garages during the down time.

Some company owners I have talked to have said they are struggling big time and one said he would probably go bankrupt. Alot of the companies hit hard are ones who didn't maintain a good cash flow strategy and went into this downturn with little cash reserves. Even with the stimulus many wont make it. I am blessed to have a wife who miss an amazing money manager and keeps our companies always ahead of the curve.

One of my closest friends is a heavy investor and while he owns numerous fast food franchise buildings he has only had one not make payments to him. He is making a killing in the stock market though. I am guessing he made $ 50 K off Chevron alone in the last couple weeks. I bought into Chevron a little late after he bugged me daily for 2 weeks to buy CVX. I am making a little money off it but his buy price was right at the bottom of the cycle.  Real Estate listings I seen are dropping and what is funny is we had 5 acres we own off the Blue Ridge Parkway in VA listed for 2 years with no bites. The Covid issue came onto the scene and it sold to a cash buyer.  I am not complaining but find it strange.

It is going to be interesting to see how our economy comes back. In regards to RV's, I believe the sales will not have a V factor but will rather take a long time to come back due to so many being unemployed.   Banks are also tightening their lending which will effect RV purchases. I can say this though that if someone told me 3 years ago that they predicted a country wide lock down from a pandemic I would have suggested they get on med's and get mental health treatment.  This entire thing has been utter chaos. 

[Scotty Hutto]

Just chit-chat, but I hear friends — and have them asking me questions about our RV. Some who used to prefer hotels and resorts are now thinking an RV with their own personal space is how they will vacation in the future. 
 

Could bode well for the industry, not so well for finding that perfect camping spot if it plays out that way. 

[Doug Hoegh]

I've heard that RV sales are up because people want a way to travel that they consider safer.  I know that Lippert stock is up.