Excel Update 11/18/08 from Bryan

[ExcelRVGuy]

Hello folks.

Many of you have emailed me asking you to let you know how things are going at Peterson Industries. As you probably already know, things are quite slow. To cliche a phrase from radio... The hits just keep comin!
· First we had the high fuel prices
· Then we had tightening credit
· Stock market volatility has been an issue
· Then the election came along
· We are facing wholesale financing issues between dealers and financial companies.
· Now the holiday season is upon us

Peterson Industries had a nice surge of retail business in October and early November. Now things are quieting down again. We feel that the remainder of November, December, and the first ½ of January will be unusually slow, then we’ll see a gradual increase in orders resulting from our spring shows.

Beginning tomorrow, we will be having a 3 week staggered production shut-down. The frame plant will be the first to stop, and as the coach they finish progresses through the assembly process, other departments will follow. Then in three weeks, the frame plant employees will be the first to come back, etc.

The service center will share in the hiatus but will stagger their employees. Jack is in charge of making sure our customers are not affected.

By closing for three weeks, this will allow us to show at the National RVIA trade show in Louisville, KY, December 2 - 4. This year’s show will prove to be quite unique. We have already lost 6 DIRECT competitors as well as many who do not compete directly with us except by tying up our dealer’s floorplan monies, thus keeping them from stocking more of our product.

In the past year, manufacturers such as Alpha, Western Rec (Alpenlite), King of the Road, Travel Supreme, Teton, and Weekend Warrior have all went out of business. Now NuWa recently confirmed they are discontinuing production and are adopting a “wait-and-see” attitude as to whether they will resume again at some point in the future.

All reports say that the Louisville show will be “make it or break it” for many more manufacturers and suppliers alike.

Our theme for this year’s show is “Still Standing Tall After 43 Years!” We want dealers to know that Peterson Industries has prepared ourselves to weather storms like this. Of course, we’re feeling the effects of the consumers keeping your wallets in your pockets, but the message we are sending to dealers and consumers is that WE PLAN ON BEING HERE!

I believe that we are positioned in the best segment of the market possible. Many of you have done quite well throughout your lives and are interested in enjoying the fruits of your labor by having fun with your spouse. You don’t mind spending money to fulfill those lifelong promises you made to each other but you want to be sure you’re getting the most value for your money.

As I’ve stated many times, that is our commitment to you.... To give you the BEST value for your investment. We can’t promise to always do everything right and to build a perfect coach, but we do promise to always do the right things and strive for that perfect coach. When we fall short, we stand behind you.

It appears that with the elections over, the fuel prices coming down, and the credit markets beginning to stabilize, things aren’t as bad as we sometimes build up in our minds. Perhaps now would be a good time to go purchase that new Excel and start building some memories.

Thanks for caring
Bryan, Vaughn, Curtis, and all of us at Excel

[ExcelRVGuy]

Hello folks.

Many of you have emailed me asking you to let you know how things are going at Peterson Industries. As you probably already know, things are quite slow. To cliche a phrase from radio... The hits just keep comin!
· First we had the high fuel prices
· Then we had tightening credit
· Stock market volatility has been an issue
· Then the election came along
· We are facing wholesale financing issues between dealers and financial companies.
· Now the holiday season is upon us

Peterson Industries had a nice surge of retail business in October and early November. Now things are quieting down again. We feel that the remainder of November, December, and the first ½ of January will be unusually slow, then we’ll see a gradual increase in orders resulting from our spring shows.

Beginning tomorrow, we will be having a 3 week staggered production shut-down. The frame plant will be the first to stop, and as the coach they finish progresses through the assembly process, other departments will follow. Then in three weeks, the frame plant employees will be the first to come back, etc.

The service center will share in the hiatus but will stagger their employees. Jack is in charge of making sure our customers are not affected.

By closing for three weeks, this will allow us to show at the National RVIA trade show in Louisville, KY, December 2 - 4. This year’s show will prove to be quite unique. We have already lost 6 DIRECT competitors as well as many who do not compete directly with us except by tying up our dealer’s floorplan monies, thus keeping them from stocking more of our product.

In the past year, manufacturers such as Alpha, Western Rec (Alpenlite), King of the Road, Travel Supreme, Teton, and Weekend Warrior have all went out of business. Now NuWa recently confirmed they are discontinuing production and are adopting a “wait-and-see” attitude as to whether they will resume again at some point in the future.

All reports say that the Louisville show will be “make it or break it” for many more manufacturers and suppliers alike.

Our theme for this year’s show is “Still Standing Tall After 43 Years!” We want dealers to know that Peterson Industries has prepared ourselves to weather storms like this. Of course, we’re feeling the effects of the consumers keeping your wallets in your pockets, but the message we are sending to dealers and consumers is that WE PLAN ON BEING HERE!

I believe that we are positioned in the best segment of the market possible. Many of you have done quite well throughout your lives and are interested in enjoying the fruits of your labor by having fun with your spouse. You don’t mind spending money to fulfill those lifelong promises you made to each other but you want to be sure you’re getting the most value for your money.

As I’ve stated many times, that is our commitment to you.... To give you the BEST value for your investment. We can’t promise to always do everything right and to build a perfect coach, but we do promise to always do the right things and strive for that perfect coach. When we fall short, we stand behind you.

It appears that with the elections over, the fuel prices coming down, and the credit markets beginning to stabilize, things aren’t as bad as we sometimes build up in our minds. Perhaps now would be a good time to go purchase that new Excel and start building some memories.

Thanks for caring
Bryan, Vaughn, Curtis, and all of us at Excel

[camperguy]

Bryan

Thanks for the update. Congratulations on "Standing Tall For 43 Years"!!
We truly hope that things will improve after the first of the year for PI, and that soon you will be back up to full production.
Just keep doing what you do best, and you will prevail as the leader in the fifth wheel RV industry.

[Boogeyman]

Thank you Bryan. I am in the Sub 40 Year old category, and I have made a deal to purchase a brand new 2008 Wild Cargo from a dealer. We are still jumping through hoops, (two days worth so far) to get the financing in place. This after taking only 5 minutes to get approval on a 2008 F-450 in July. Credit is still tight, but I am confident that I will be driving off the dealers lot on Saturday with trailer in tow. Then to get ready for a trip to Phoenix for Christmas and New Years. Peterson Industries reputation for standing behind your product, to make things right, and your presence here on this forum addressing issues and keeping everyone informed are what made the decision process easy. Keep up the good work.

Peter