ETI and Northern Lite No Longer Sister Companies

[Selkirk]

It looks like KV Capital has recently sold off Northern Lite and Off Grid Trailers, while retaining ownership of ETI and Campion (for now, at least).

https://sgbonline.com/triwest-capita...grid-trailers/

I found this interesting. Though both ETI and NL have been operated independently since being acquired by KV, I thought there would be enough benefit in terms of costs savings to maintain common ownership. IE: Improved supply chain purchasing power, shared engineering resources/manufacturing skillsets, etc.

I can only assume KV has concluded that NL's growth as a business has plateaued while they figure there is still more potential for ETI.

[Donna D.]

I remember reading that building truck campers is a more expensive business to own. It's due to the truck beds constantly changing. Shape, inside height, etc. That causes the camper molds needing to be remade/rebuilt.

I think we've all seen pickups carrying truck campers that don't fit and the hodge podge things folks have done to make it 'work.' A quality manufacturer won't sell something that merely... works.

[escape artist]

Hi: All... I spotted this unit at a rally in Nova Scotia in 2019. About the same size as a 5.0TA but requires a one ton diesel dually and at todays prices expensive to keep moving. Alf
escape artist N.S. of Lake Erie

[WillyB]

I would liked to have been a fly on the wall at KV during that decision. Interesting.

[Eggscape]

This could be why the Fiberglass trailer planed to be built by Northern Lite is not on their web page anymore.

KV should have lots of funds now to build Escapes down south in a new facility…just like they moved Campion boats south for the cheap labour.

[HABBERDABBER]

Not a lot of mystery here. A recession, in the near future, is likely. When, please don't ask me. Business is cyclical, and unpredictable. Somebody, somewhere, decided it is time to move on.
And so it goes.

[UncleTim]

How long before Escape goes up for sale?

Everything has a price.

[bborzell]

Saw a Northern Lights cab over camper on a RAM 2500 today. In the mirror, it looked like it was 15’ tall. I would rather drive an Army Deuce and a half.

[diannelgraham]

Originally Posted by UncleTim

How long before Escape goes up for sale?

Everything has a price.

I worked for a Fortune 500 company that bought and sold companies on a regular basis. If Escapes backlog dips and the margins fall below what is expected chances are they will be on the chopping block.

[oldwave]

Given the massive price increases in Fiberglas trailers, I see them becoming unaffordable for many of the younger generation who are 10 years out from retirement. We are lucky to have decent resources between the two of us, but many people will not have the same resources that are 10 to 15 years younger. I expect KV looking at those demographics with a lot more information than I have. The initial niche that the original Escape founders was unique in the value proposition, a nicer product than the competitors for just a little more money. And the explosive growth did reflect that. Given the costs now I can’t but speculate the demand will diminish not because of quality but the economic resources of the intended audience. At the moment it’s great for Escape and all the other small trailers. Oliver and Bigfoot is on the high end though because they were always more expensive than Escapes, the price increase has been less drastic. Truck campers demand is unknown at this stage, ergo Nlite being shedded.
I don’t see as many on the road around here, but the target market is more over landing and backcountry I suspect which is widely popular for the well heeled. I wonder if the slow walk of the 23 has anything to do with their market research and how well it will do in the slightly higher market segment. Recessions always follow booms. The last one was brutal to the RV market Bigfoot was in the class C market and nearly went under as did Oliver stopped production for a while in that one.

[Mark James]

Originally Posted by Selkirk

It looks like KV Capital has recently sold off Northern Lite and Off Grid Trailers, while retaining ownership of ETI and Campion (for now, at least).

https://sgbonline.com/triwest-capita...grid-trailers/

I found this interesting. Though both ETI and NL have been operated independently since being acquired by KV, I thought there would be enough benefit in terms of costs savings to maintain common ownership. IE: Improved supply chain purchasing power, shared engineering resources/manufacturing skillsets, etc.

I can only assume KV has concluded that NL's growth as a business has plateaued while they figure there is still more potential for ETI.

Suspect at some point ETI’s production will shift to the US or Mexico through either a sale or a physical move. Regardless it is still a great trailer which I hope will be around for many years to come. Nothing stays the same but I hope that they maintain at least some production in Chilliwack.

[diannelgraham]

Originally Posted by Mark James

Suspect at some point ETI’s production will shift to the US or Mexico through either a sale or a physical move. Regardless it is still a great trailer which I hope will be around for many years to come. Nothing stays the same but I hope that they maintain at least some production in Chilliwack.

I think I read someplace that 80 percent of Escapes sales are from the US so moving production to a less expensive US state makes sense. The majority of the high end expensive components are imported from the the US currently adding to the build cost because of the exchange rate. Even though Mexico is part of NAFTA moving production there would most likely turn some potential buyers off. Being born and raised in Vancouver Canada before moving to the US in 1983 I'm hoping production stays in Chilliwack. Escape is such a home grown small company it would be so sad.

[scubarx]

Originally Posted by diannelgraham

I think I read someplace that 80 percent of Escapes sales are from the US...The majority of the high end expensive components are imported from the the US currently adding to the build cost because of the exchange rate. Even though Mexico is part of NAFTA moving production there would most likely turn some potential buyers off...I'm hoping production stays in Chilliwack. Escape is such a home grown small company it would be so sad.

It would much more sad to see Escape go under like so many others (Parkliner, Lil' Snoozy, etc) and take the buyers that have already put down deposits and are still waiting on their delivery with them.


I would not want them to move to Mexico for production. If you want a Mexican built trailer, buy a Casita.

[scubarx]

Originally Posted by oldwave

...Recessions always follow booms. The last one was brutal to the RV market Bigfoot was in the class C market and nearly went under as did Oliver stopped production for a while in that one.

Oliver did not almost go under during the last recession. They are not just a trailer manufacturer. They also make hundreds of other fiberglass products, the most notable of which is the Safe-Step walk in tub. They shut down the trailer line in 2010 simply because, with the depressed economy, nobody was selling very many trailers especially at the higher end, cost wise. However, nobody at Oliver lost their job as there were no layoffs. They just transitioned into other areas of the business.

[Perry Butler]

Originally Posted by scubarx

I would not want them to move to Mexico for production. If you want a Mexican built trailer, buy a Casita.

When did Casita move their production to Mexico?

Perry

[diannelgraham]

Originally Posted by Perry Butler

When did Casita move their production to Mexico?

Perry

I thought I missed something about Casita moving from Rice TX

[Donna D.]

Casita is still in Rice, TX. Please don't start rumors.... those live forever!

[Viajante]

Originally Posted by diannelgraham

I thought I missed something about Casita moving from Rice TX

Scubarx might have been making an ethnic comment, not a geographic one.

[MrLynn]

Originally Posted by Mark James

Suspect at some point ETI’s production will shift to the US or Mexico through either a sale or a physical move. Regardless it is still a great trailer which I hope will be around for many years to come. Nothing stays the same but I hope that they maintain at least some production in Chilliwack.

My impression from the discussion of the topic on the last Escape video report, Karl was talking about adding a production facility in Texas, not moving the whole company.

I'd like to see them add a factory here on the East. How about New Hampshire? No State income or sales taxes!

[uthorns]

Originally Posted by MrLynn

My impression from the discussion of the topic on the last Escape video report, Karl was talking about adding a production facility in Texas, not moving the whole company.

I'd like to see them add a factory here on the East. How about New Hampshire? No State income or sales taxes!

How on earth does the state get revenue?