Friday, Dec. 26, 2008
RV manufacturing not easy in a recession
Man plans on taking leap of faith in 2009
By Corey Pride / cpride@losbanosenterprise.com
Bill Wyrick is hoping to take a chance in about six months.
With business loans being difficult to get and an economy sinking deeper into recession, Wyrick is hoping to restart his manufacturing company, Los Baños RV Center.
A bad business deal caused him to shut it down in 2005. He said he misses the business.
"I certainly do," Wyrick said. "I have a daughter...she and I were going over to San Jose to a home and garden show. My daughter asked me 'Do you ever think you'll go back to making RVs?' My answer to her was, when you go to sleep at night and 90 percent of your dream is making RVs, what does that tell ya?"
Wyrick has spent the past three years making ends meet by renting out space in his 50,000 square-foot building on G Street. So far the economy has only allowed him to fill 12 of the 16 commercial spaces he has available.
As he plans to go back to running his RV company, Wyrick is prepared for business to be slow for the next year and a half. However, he thinks the economic decline is close to its end.
"I see some gradual improvement in 2009. I think we're getting to almost where we've hit bottom." he said.
Wyrick said the credit crisis may impact RV buyers, but it shouldn't.
"The recourse on loans on the RV industry is the lowest of any industry," Wyrick said. "The mortgage situation, the RV industry has never been in that. People that buy RVs, they've planned it and they've worked for it for a long period of their life.
"They're very responsible people. Banks, if they want to pull out of the RV industry, they're panicking."
Wyrick said the typical RV customers are between 40 and 70 years old. He said there are also young buyers.
"That doesn't leave out the younger group," he said. "The younger group, in the last 10 years, has become very interested in RV. It's probably one of the best ways to do things as a family."
Wyrick has been in the RV business since the 1960s. He went into business for himself in the '70s.
He said the current recession is not as bad for the industry as the oil embargo of the 1970s.
"When we were told that our resources for energy were depleted people believed it. They started selling RVs because they couldn't use it," Wyrick said. "Well, people were being lied to."
He said times became better for RV manufacturers as the price of fuel decreased.
Wyrick said until the economy turns around this time, he believes his business can survive by producing travel trailers.
Wyrick does not think about retirement either. He said he does not know how long he'll live but he expects when he does expire he'll be found at his office.
Enterprise staff writer Corey Pride can be reached at 388-6563 or cpride@losbanosenterprise.com
