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KZ RV, based in Shipshewana, Ind., has regained about three-fourths of its pre-recessionary business, but the manufacturer has seen the shift in consumer demand toward towables. Its most popular products cost between $10,000 and $35,000
-- well off its top-of-the-line RVs, which run about $90,000, said Andy Baer, the company's vice president of sales. "Seven years ago they didn't give a thought to buying a top-of-the-line product, kind of similar to the housing industry," Baer said. "People are more in tuned with what the reality is that they can comfortably afford today." Ann Arbor, Mich.-based Thetford Corp., which supplies toilets and sinks to RV makers, saw its business plunge by 70 percent during the recession. It survived the downturn because RV owners upgraded existing models, said Executive Vice President Kevin Phillips. Now, the company is having a good year as existing RV owners purchase upgrades and entry-level buyers enter the market, he said. Winnebago Industries Inc., best known for its premium products, also has adjusted to the new market. The company, headquartered in Forest City, Iowa, is rolling out towable products again after a decades-long absence from that market. And Winnebago has stepped up its presence in the market for entry-level motor homes priced in the $60,000 to $70,000 range. Those vehicles offer fewer features and amenities than their pricier counterparts. "That's where we see a lot of the movement in the industry," said Scott Degnan, the company's vice president of sales. Winnebago's profits soared in its last fiscal year, which ended Aug. 25. Winnebago earned $45 million over those 12 months, up from $11.8 million in the prior year. Revenue rose 17 percent to $581.7 million.
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