It all came to a head in the spring of 2000, which was widely expected to be the start of yet another strong selling season. Instead, the stock market and consumer confidence plunged, along with RV sales. Fleetwood held excess finished goods and raw materials, and our dealers had bloated retail inventory. When customers came back to the market, it was clear that “old” products – those that didn’t have slide-outs or updated interiors or extra amenities –were not going to sell briskly. Unfortunately, many of those products were ours.

It was a crash course in the need to focus on the customer and product innovation, and Fleetwood took it to heart. Our entire product line has been dramatically updated since then, and we are now among the industry’s leaders in incorporating innovative features into our floorplans, offering a variety of fresh looks, and making our RVs feel like home – qualities that our customers demand, and that we’re delivering.

Calendar 2003 proved to be a near-record year for recreational vehicle sales in the United States with 320,800 units sold, the second-highest shipment level in nearly a quarter century according to the Recreation Vehicle Industry Association (RVIA). Retail sales in excess of $12 billion in 2003 were by far the highest in the industry’s history – more than a billion dollars over the previous record, set in 2002. These milestones were accomplished despite the fact that, as a result of the start of the war in Iraq, sales slowed at the outset of the traditional spring selling season. Shortly thereafter, sales rebounded.

Strong industry sales continued into the first half of 2004, with double-digit improvements in shipments in most months over the prior year – impressive despite the soft market last spring. RVIA’s current projection shows shipments of 347,800 units expected for 2004, a rise of 7.7 percent over 2003.

"RETAIL SALES IN EXCESS OF $12 BILLION IN 2003 WERE BY FAR THE HIGHEST IN THE INDUSTRY’S HISTORY – MORE THAN A BILLION DOLLARS OVER THE PREVIOUS RECORD ... "

CLEAR PRODUCT SUCCESS

Fleetwood’s RV sales increased 20 percent in the fiscal year, with a total of $1.78 billion compared with $1.48 billion in the prior year. Motor home sales grew 20 percent to $1.10 billion, and sales of travel trailers increased 29 percent to $570 million. Only our folding trailer division realized a sales decline, dropping 15 percent to $104 million, predominantly as a result of sluggish market demand for this product type.

Fleetwood’s continued commitment to investment in its products through product development, ongoing quality improvement, and plant modernization contributed to this sales success. David Warren joined the Company as vice president–engineering for the RV Group. In this new role, David is responsible for product development. As a specialist in “design for manufacture,” he is charged with ensuring that new designs can be built cost effectively and efficiently in Fleetwood’s manufacturing facilities. Luc van Herle, an 18-year Fleetwood associate, was promoted to director of product planning for both motor homes and travel trailers. Luc’s group is the primary conduit for customer feedback and market segmentation.