BREAKING NEWS
Sundowner Trailers Closing Elkhart Operations RV Business
Friday, July 25, 2008
Rising freight costs are forcing Sundowner Trailers to close its three plants in Elkhart, Ind., and move the operations to its main facility in Oklahoma, according to an article in the Elkhart Truth. The move is expected to happen in the next 60 to 120 days, said Justin Griffin, production manager.
About 70 employees work at the Elkhart operation and will be offered jobs in the Sooner state. Earlier this year, the company laid off about 15 workers from the local facility. Once the work is shifted to Oklahoma, the company plans to list the buildings for sale and leave Elkhart County completely after operating here for about 12 years. "I don't know if I'd put us in the category of struggling but the amount of freight it costs to bring the trailers here is the main driver," Griffin said of the closure.
Based in Coleman, Okla., Sundowner manufactures trailers to haul horses and livestock. The shells of the trailers with living quarters are built in Oklahoma and then transported about 1,100 miles to Elkhart to have the bedrooms, kitchens, living rooms and bathrooms added. When done, some of the living quarter units can retail for up to $300,000, Griffin said.
Most of the roughly 70 Sundowner dealers are in the South and Southwestern parts of the United States, Griffin said. Prior to the economic downturn, sales in the eastern part of the country offset the costs of shipping the trailers to Elkhart but with sales declining, that equation has changed.
The company still will make living quarter horse and livestock trailers and, Griffin said, will continue to order parts and components from the vendors in and around Elkhart. Workers at the Elkhart plants will have positions in Oklahoma but those who choose to stay in Indiana will not be given severance packages, Griffin said.
"Everybody that is currently employed here has the ability to relocate to the new company when we reopen," he said. A Michigan native, Griffin is one of the employees planning to move. "I would say the main driver is the company has been loyal to me and I'll be loyal to them," Griffin said. "I like my job very much."
Story forwarded by Yvonne of YES Mobile Catering, Inc. - Goshen, IN
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