Jayco expansion might expand hope to industry

02/16/2010

Slowly but surely, jobs keep coming back to area RV factories. Jayco has announced plans to expand their factory in Middlebury, which could create 75 new jobs over the next two years.

The Middlebury Town Council voted to approve the tax abatement for Jayco's expansion at their meeting Monday night.

It's more or less a formality so the company can get started on the $1.25 million project. While it's only 75 jobs, the reason for the expansion might give hope to others from the RV industry.

Like many other area RV companies, Jayco's orders are finally rebounding. “Our backlogs are to the point that we need to pick up production and to do that we need to add to our facilities here,” said Derald Bontrager, President and COO of Jayco. Jayco, which relied on sales of small trailers to weather the recession, has some interesting news.

“We're seeing the total market rebound; but more specifically the ‘Class A’ market, which would be the larger priced items,” Bontrager said.

Those are motor homes that Bontrager says usually sell in the range of $150,000; and that’s exactly what wasn't selling during the recession.

Jayco’s plan is to expand the existing building housing their Class-A line by 30,000 square feet, to give them room to extend the line and make more large motor homes. Construction has already started on the expansion, and it looks like the tax abatement will be approved.

“I don't think I see any issues related to the council. I think they're very much in favor of it.

Jayco's been a wonderfully corporate citizen. They've been here a long time and anything the town can do to support growth and employment in the town, we're going to support them,” said Middlebury town manager Mark Salee.

Jayco expects to hire 50 people this year and 25 in 2011.

But people shouldn’t take in their application just yet, hiring will start later.

“That'll probably happen late summer, early fall.

We anticipate the plant to be up and running, ready for production; probably in August or September,” Bontrager said.

For now, Jayco and the town are just relieved to see progress.

“It's nice to make these kinds of announcements rather than what we've been faced with the last few years in downsizing.

So to be in ‘growth mode’ again is a nice change, not just for us but for the whole community,” Bontrager said. Bontrager says Jayco has about 1,300 employees right now and is the largest taxpayer in Middlebury.

They've been planning this expansion for about 2 months now.

Bontrager says that when they eventually get down to the hiring, they may also call back some of the employees they laid off in the last year to year and half.

Meantime, Jayco’s tax abatement from the town of Middlebury would last for 10 years on the building expansion, and for 3 years on the new equipment.