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Old 02-29-2020, 06:48 PM   #1
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Newmar Lay-Layoffs, Thoughts.

Is it Newmar, a industry downturn, or Winnebago trimming staff from the buy out?

I have only read bits and pieces, no real answers at this point.


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Old 02-29-2020, 07:06 PM   #2
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Here's a video about it. More questions than answers.

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Old 02-29-2020, 07:16 PM   #3
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Originally Posted by StevL View Post
Is it Newmar, a industry downturn, or Winnebago trimming staff from the buy out?

I have only read bits and pieces, no real answers at this point.


Steve
Mergers and Acquisitions are never a net positive for the workforce. As the companies merge the LIKE processes will be assumed by the team doing it the cheapest and it will dip from there. Truth be told NO RV company has a handle on quality control. The Axiom is "It takes them 6 months to build it and you a year and a half to finish it We recently had a visitor to our RV Park with 2019 Newmar. They were heading to the RV show in Tampa. We pulled the trigger and decided to go and surprise them there. Our rig is an 03 MADP. Guess what? We limped in to find they had not made it. They broke down 150 miles down the road. The moral of the story IS they always break, and it doesn't make any difference if they two weeks new or 20 years old. So it's always a wing and a prayer. Their failure was in the DEF circuit which the 08s and older will not have. I've seen some nice Winnies at my park but having a family owned operation like Newmar cash out makes me sad.
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Old 02-29-2020, 07:59 PM   #4
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Is it Newmar, a industry downturn, or Winnebago trimming staff from the buy out?
A quick Google search brings up a Goshen News report indicating industry downturn.
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Old 02-29-2020, 08:03 PM   #5
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Quote:
A quick Google search brings up a Goshen News report indicating industry downturn.

That article is dated July 2008.

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Old 02-29-2020, 08:26 PM   #6
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Newmar Layoff

Here's a link to RV business news on the layoff. Many have predicted the industry is gonna lay off because sales have slowed. https://rvbusiness.com/newmar-corp-r...-of-workforce/
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Old 02-29-2020, 08:29 PM   #7
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Hi - During the summer of 2017 Newmar hired a lot of new employees in order to up production. The 2018 model year was a big seller. 2019 was slower for all motorhomes sales and 2020 is slower. With the variety of issues in the world right now and for the near future I would doubt that this will turn around soon. I feel bad for the employees that have been laid off but that is always a risk in this industry. I guess that the layoffs get the workforce back to where it was before the hiring that took place a few years ago. It is likely an industry issue, not a Newmar issue.


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Old 02-29-2020, 09:10 PM   #8
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THE HONEYMOON IS OVER!With the recent acquisition by Winnebago, this should not come as a surprise to any of us who have been through a merger or acquisition! I did 5 in my 37 year business career.

The acquiring company will begin wringing out all possible synergies within 1-3 months after the deal is finalized. Prime targeted areas are: Accounting- AP & AR, payroll, taxes etc. IT systems & programmers. Supply chain: purchasing, logistics. Marketing: Promotions & Graphics, Engineering- CAD engineering & any redundant (overlapping) areas. HR- payroll & benefits management to name a few.

On this size acquisition, Winnebago will be looking for between $10-$13mm/year in synergies savings just from overhead reductions alone. Stay tuned this saga is just beginning.


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Old 02-29-2020, 09:13 PM   #9
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Newmar alone survived the 2008 downturn. Now coupled with Winnebago is going to be a different story.
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Old 03-01-2020, 06:19 AM   #10
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Attached are the RV Wholesale shipments posted by RVIA. It shows Class A shipments down for January by 16.6% vs last year. Interesting that van camper sales are up 33.5 % compared to last January.

I worked for a large company that was bought out three times. Each new owner kept things the same for about six months then eliminated duplication of services as mentioned by Capt. Bill.

The layoff is probably because of both these issues.
Attached Files
File Type: pdf January 2020 Monthly Report.pdf (657.0 KB, 19 views)
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Old 03-01-2020, 07:26 AM   #11
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That article is dated July 2008.

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Hmmm... the story I tried to link is not the story that shows up when you click the link...
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Old 03-01-2020, 07:36 AM   #12
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Our company that supplies to Freightliner and Spartan and many others are also down 15 plus percent and have laid off several on floor and in office and we are very diversified in many areas of the rubber industry and operate around the world..
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Old 03-01-2020, 07:43 AM   #13
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Quote:
Originally Posted by StevL View Post
Is it Newmar, a industry downturn, or Winnebago trimming staff from the buy out?

I have only read bits and pieces, no real answers at this point.


Steve
Compare the production number from this time last year with this year.........Not just in unit numbers but $$$.

They did not survive the last few downturns by being blind to the trend!!!

Combined with the Winny takeover you should see some of the obvious consolidations in places that are just duplicated.

IMHO - It is a combination of the two......

JMHO,
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Old 03-01-2020, 07:50 AM   #14
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Quote:
Originally Posted by Busskipper View Post
Compare the production number from this time last year with this year.........Not just in unit numbers but $$$.

JMHO,
I posted wholesale shipment numbers, do you have the $$$ numbers?
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