Keystone RV will close two Goshen plants, putting 334 out of work. Here's what we know.
GOSHEN — Keystone RV has filed a notice with the Indiana Department of Workforce Development indicating that it intends to close two plants in the city, displacing 334 employees.
In its notice, the company said it would close Plant 41 at 2833 Sourwood Drive and Plant 705 located at 2639 Lincolnway East effective, Sept. 23. The notice is intended to give employees 60 days to prepare for the job loss.
Officials with RV giant Thor Industries, the parent of Keystone, didn't respond to an email seeking comment Tuesday. In a letter to employees, Keystone told workers that the action is expected to be permanent and that it planned to offer seminars covering unemployment benefits and resume assistance.
In an emailed statement to the media, Goshen Mayor Jeremy Stutsman said there is always concern when people in the community face job loss. “We are working with business and industry leaders to better understand what is happening and see what may come in the future,” he said.
Though RV shipments from factories remained slightly ahead of 2021 through May this year, the RV Industry Association has reported that the industry expects business to level off in the second half and finish about 8.4% lower than last year’s record 600,240 total shipments.
Even then, the projected 550,000 units shipped from manufacturers would be the second best ever for the industry, which employs tens of thousands in Elkhart County and surrounding areas.
“Gas prices can have a psychological effect on people,” said Monika Geraci, a spokeswoman for the RV trade group. “But people who own RVs recognize that it’s still an economical way to travel.”
Besides record high fuels prices that make travel more expensive, higher interest rates might be affecting sales and overall inflation is taking a bite out of the pocket of every consumer in the country, according to observers.
At the retail level, there’s more evidence of a slowdown — at least compared to the blistering pace that was set in the immediate aftermath of the beginning of the pandemic when consumers sought out RVs, boats and other types of outdoor recreational that were deemed safer than other activities.
Even though RV shipments have remained relatively strong through the first half, retail registrations of RVs already have begun to slide, dropping 23.5% through May compared to the first five months of 2021 in the United States and Canada, according to Grand Rapids-based Statistical Surveys Inc.
Chris Stager, president and CEO of the Economic Development Corp. of Elkhart County, doesn’t know any details behind the plant closures, but he pointed out that the RV industry is still operating at a strong pace and said there is still demand for labor in the region.
Earlier this year, Elkhart County drew attention for having the lowest unemployment rate in the nation. People wondered how it would be able to continue filling jobs at area manufacturing plants let alone the estimated 1,000 positions that will be available at a massive Amazon facility that’s being built along the Indiana Toll Road.
In May, Elkhart County’s unemployment rate stood at 1.8%, still below the state average of 2.5%.
"Now the national economy is under duress," said Stager. "But there are still companies in need of employees, and Amazon is expected to begin hiring early next year."
This article originally appeared on South Bend Tribune: Keystone RV will close two plants in Goshen, putting 334 out of work
