Sixteen more of our friends and neighbors are out of a job. A Northern Nevada fixture, Mountain Family RV announced Monday it's closing its doors.
Mountain Family RV opened in 1988, and if you've ever driven between Reno and Carson city, you've likely driven past it. The owner, Jon Whipple says shutting down and laying off 16 people, was the hardest thing he's ever done.
A small business owner, hoping to sell some body work to the RV company, was greeted Wednesday by a locked fence, and a short apology note, while hundreds of RV's sat collecting dust in the parking lot.
"We were trying to stir up some business and we see a sign that they're closed," said Forrest Bietz, who owns ColorAll Technologies.
Owner Jon Whipple says a 40 percent drop in sales helped kill his business, but so did RV manufacturers that shut down, leaving obsolete inventory in his lot. He also says the national credit crunch has made it much harder for buyers to qualify for loans.
A few miles away at the family-owned Sierra RV, we spoke with sales manager Dave O'Brien. He says while it's sad to see colleagues in the RV industry fail, it could mean a higher sales share for him in the future. In 2008, he says he saw only a small decrease, about eight less RV's were sold than in 2007, that's out of an average of 300 sales a year.
"It's all about disposable income. People choose to spend it in different places. Whether you ride quads or boats or skydive or golf. When you get down to it, the average golfer spends more a month on golfing than you can buy an RV for," said O'Brien.
Owner Cathie McDonald says she stays afloat by running a lean business. But says knows that she can't predict the economic future.
"Right now, we have 16 employees. Some have been with me 5 or 6 years and I feel like they're family and I am responsible for them. I want Sierra RV to do well so they do well," said MacDonald.
Mountain RV's owner says he's sad to say goodbye to his business and his loyal customers. Whipple says he has lots of work to do in order to clear out his stock. In the meantime, the closure is trickling down.
"It's obviously very disappointing because we see a lot of businesses cutting back and not creating more business for us little guys. So there's a chain reaction happening," said Bietz.
Mountain RV's employees are the hardest hit. The officer manager is a single mother with three children who is now out of a job.
Then take a look at the bigger picture. Since Tuesday, the City of Sparks has laid off 34 people, Scheels laid off between 50 and 60, and now 16 more at Mountain RV. Added up, that's more than 100 local people out of work.
According to the R-V Industry Association, nationwide RV shipments are down nearly a quarter since 2007.
In the past year, 45 RV dealerships across the country have been forced to shut down.