RV capital Elkhart booming, but for how long?

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    RV capital Elkhart booming, but for how long?Turn back the clock to 2009, during the last recession, when RV sales nosedived. Elkhart, Indiana was the poster child for what was bad with the nation’s economy. The jobless rate in the region plunged from 20 percent that March, worst in the U.S., to just over two percent this January, half the national average. The local unemployment rate is actually closer to zero: some 9,500 jobs have no takers.

    Starting around 2012, the RV industry—and, by extension, Elkhart—started to rebound sharply, largely because of the improved U.S. economy. RV shipments last year tripled to 500,000 motorhomes and towable from 2009, the Recreational Vehicle Industry Association reports.


    JOBS ARE SO EASY TO GET that fewer in the region are enrolling in college, a risky bet against another downturn. Elkhart ranks 335th of 380 metro areas in percentage residents with a college degree, the Brookings Institution found.

    But even in good times, memories of the last recession—and fears about the next one—shape business and personal decisions in Elkhart. Residents squirrel away money, not sure whether to trust the boom. That makes sense, according to Mr. Hicks, the Ball State economist. In the next recession, he said, “they will be clobbered.”

    Even though the money for workers is excellent employees job-hop frequently in the workers’ market. According to local manufacturers turnover in the RV industry is roughly 100 percent. Bonuses of $500 to $1,000 are commonly offered to new hires if they stay 90 days. Read more.

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    vic

    All booms end sooner or later! It is a fact! For a community that is not diversified, they will be shooting themselves in the foot eventually. I have seen this happen before in Elkhart and the surrounding area. It will happen again! Booms do not last forever for one reason or another.

    Bill Lampkin

    Has anyone plotted a graph with RV production rate vs Recalls???

    jrw

    Hire anyone, even druggies. Well, often it shows in the finished product. $4.50 gas, CG fees up 65%, interest rates at 10%++ is beginning to sound good to some.

    John Snell

    The most successful district’s in the U.S. have diversified economies and an inclusive population. I’m not getting political, thats just an economic reality. States that provide more opportunities for trade school training are going to be successful. Robots are great but someone has to fix them.

    Sidney Smith

    College degrees are wonderful! Jobs are needed, plumber’s, carpenter’s, welder’s, mechanic’s do not necessarily need college, trade school’s can supply that education. A college education without a job is expensive.