Cavco Grows Manufacturing, Marketing Reach
Until recently, Cavco Industries Inc.’s marketing reach was largely confined to the Western half of the United States, with most of its park model sales occurring within a few hundred miles of its factory in Phoenix.
According to a press release, it wasn’t until 2006 that Cavco opened a factory in Texas, which gave it access to the Texas market.
But with its recent acquisitions of Fleetwood Homes and Palm Harbor Homes, Cavco said it now has more production facilities than any other company in the park model business.
“It gives us a strategic advantage,” said Joseph Stegmayer, Cavco’s president and CEO, “because having multiple facilities lowers the freight costs for campground operators who purchase Cavco park models.”
Cavco’s Rocky Mount, Va., factory was the first to broaden its product lines to include park models, which it did last year. This year, however, Cavco is also producing park models in Woodburn, Ore., Napa, Idaho, Austin, Texas, and Plant City, Fla.
Combine the multiple factory locations with Cavco’s increasing innovations
in park model designs, which now include off-grid solar-power park models and custom designed units for Kampgrounds of America (KOA) and other companies, and it’s easy to see how Cavco has managed to achieve at least modest sales growth at a time in which most companies continue to struggle with the recession.
“I think we have to be somewhat cautious given the economy overall,” Stegmayer said. “But there are a lot of positives to our park model cabins. There’s the lower price points, the affordability aspect. We’re also willing to try anything. We’ve done a lot of prototyping of various units, not only in the campground arena, but in the dealer arena, and that helps us a lot. It helps us bolster our reputation for being very flexible, very creative.”
This has helped Cavco increase its business with KOA, which holds its annual convention in Las Vegas next week. It also enables the company to participate in upcoming tradeshows elsewhere in the country, including the Recreation Vehicle Industry Association’s (RVIA) National RV Trade Show, which takes place Nov. 29 to Dec. 1 in Louisville, Ky., and the Outdoor Hospital Convention and Tradeshow, which the National Association of RV Parks and Campgrounds (ARVC) is hosting in Savannah, Ga., from Nov. 29 to Dec. 2. Cavco will also showcase its park models at the Tampa RV Show, which is slated for Jan. 10.
And while Cavco has derived much of its park model business from campgrounds the past couple of years, the company is also seeing renewed signs of interest from consumers who want to purchase a park model and have it set up in a campground for use as a weekend retreat or vacation cottage.
“It’s a much lower investment than investing in a second home or condo or even a large RV,” Stegmayer said.
For more information on Cavco’s park model products, visit www.cavcoparkhomes.com.