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Towable campers once again carry profits for Winnebago

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A Grand Design trailer from the company’s website.

The third quarter was another record-breaker for Winnebago Industries. Revenues for the Forest City-based recreational vehicle maker reached $562 million, an increase of 18% compared to third quarter last year.

President and CEO Michael Happe says even with rising input costs, the company continues to be successful with its motor home and towable RV lines.

“Despite increasing headwinds on the material cost side, our team drove strong top and bottom line results in Q3, with impressive growth relative to last year,” Happe says. “Our emerging towables business segment once again led the way in terms of market and financial performance, yet we also continue to see positive signs of our motorized business gaining traction on improved internal and external progress.”

Happe says both the Winnebago-branded and Grand Design-branded towable products continue to outpace the market and gain share. “Towable revenues increased 33-percent year over year, again showing strong organic growth from both branded businesses,” Happe says. “Backlog for towables for the quarter increased 15-percent year over year, which supports our positive outlook and expectations for future growth in our towables segment. We continue to see growth in the overall towable RV market, and are pleased that Winnebago Industries continues to take both retail and wholesale market share with both of our brands.”

Happe says the company is always forward-thinking in its watch of the nation’s economic conditions despite having another quarter of record revenues. “Though we are always on high alert for developments on the economic front, such as rising interest rates, rising fuel prices, and monitoring consumer sentiment,” he says, “it is undoubtedly an interesting time in American and global business as there is increasing volatility in these macroeconomic factors, not all of which is triggered by normal supply-and-demand elements.” Happe says the improved RV portfolio and strategic investments continues to benefit the company. That includes the purchase of the iconic recreational boating manufacturer Chris-Craft earlier this month, which will provide a new revenue platform within the outdoor lifestyle market.

(By Bob Fisher, KRIB, Mason City)

 

Unemployment rate drops to 2.7% in May

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The state unemployment rate went down in May. “Iowa’s seasonably adjusted unemployment rate fell to 2.7% in May,” according to Iowa Workforce Development spokesman Cory Kelly. The rate was 2.8% in April.

Kelly says the unemployment rate has not been this low since 2001. The construction industry was one that added more jobs in May — which boosted the yearly total for the industry.”Construction hiring is again on the upswing with over 4,000 jobs added (this year). Trade industries fueled much of the growth this month. Wholesale trade rebounded from two consecutive months of losses to add 1,100 jobs,” Kelly says. The retail trades added jobs in May — the first time this has happened in 2018.

“Those job gains for retail are welcome news as this sector has steadily trended down since the recent high established in 2016,” Kelly says. “The overall outlook for retail however is for jobs to be trimmed as this sector deals with shifting consumer preferences.”

The Workforce Development report shows loses last month came in accommodations and food services (-800), nondurable goods manufacturing (-400), and finance and insurance (-400). Kelly says the low unemployment rate continues to make it tough for businesses to find skilled labor, but it can be helpful for those still looking for a job.

“This is good news for individuals who may have fallen out of the job market and have not seen a place for them in the recent past. This is an opportunity for them to reengage,” Kelly says. The unemployment rate in May was one-half percent lower than one year ago. The 2.7% state rate is still well below the 3.8% national rate.

 

John Deere celebrates 100 years of building tractors in Waterloo

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John Deere is celebrating a century of tractor production in the northeast Iowa city where it all began in 1918.

The company is hosting a two-day community celebration in downtown Waterloo today and tomorrow that features everything from vintage tractors and engines, to kids games, and live music. Kelly Henderson is John Deere’s project manager and event co-organizer.

“This is really a celebration to thank our community, our customers, our fans, and all of our employees for the past 100 years that we’ve had here in the Cedar Valley,” Henderson said. Three venues and about four blocks of city streets are being used for the century celebration. More than 111 vintage tractors and engines will be on display.

“We have collectors who are bringing in tractors from all over, as well as our archive tractors that have come out of storage for this show,” Henderson said. “I’m told that there are a lot of collections that have never been seen together before, taking place here in Waterloo.” The two-day celebration will include a display so large that, according to Henderson, specific details have been kept secret from corporate executives. That display is located inside the exhibit hall at the Waterloo Convention Center.

“We have set up our entire 100 years of John Deere history through eight eras, breaking it out,” Henderson said. “These will be large cylinders suspended from the ceiling that walks you through not only John Deere’s history, but what was happening in the community, and the world at the time.” The museum will have a blacksmith and other demonstrations, along with some children’s activities and a photo booth. Henderson said, while this is a celebration of 100 years of tractors, it’s also a recognition of the company’s partnership with the Cedar Valley.

“We have over 5,000 employees and thousands of retirees in the area. We all live, work, volunteer, and contribute to the communities,” Henderson said. The century celebration runs from 3 p.m. to 8 p.m. today (Friday) and 10 a.m. to 8 p.m. on Saturday, concluding with a free concert by Joe Diffie at 6 p.m. Diffie is best known for his 1993 song “John Deere Green,” which peaked at #5 on the country music charts. The celebration marks John Deere’s acquisition of the Waterloo Gasoline Engine Company in 1918, a purchase that thrust the then 80-year-old farm implement maker into the tractor manufacturing business.

(By Elwin Huffman, KOEL, Waterloo)

 

Expansion announced for Blue Bunny Ice Cream parlor in Le Mars

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Wednesday’s kickoff to the Ice Cream Days celebration in Le Mars included an announcement by officials with Wells Enterprises about expansion plans for the town’s Blue Bunny Ice Cream parlor.

Wells Vice President of Retail Sales Adam Baumgartner says the parlor already attracts over 230,000 visitors a year. He expects the multi-million dollar renovation project will draw even more tourists to the town nicknamed “The Ice Cream Capital of the World.”

In addition to redesigning the parlor, Baumgartner says Wells has purchased a building next door to make room for an interactive “farm to spoon” display.

“We’ll be able to highlight how we get our milk, where it comes from, the processes it goes through to get into our facilities, how it gets processed in there, and how it gets turned into ice cream,” Baumgartner said. The added space will also feature rooftop seating.

Outdoor rooftop seating — so, a first-of-its-kind in downtown Le Mars. We are super excited about that,” Baumgartner said. The exact cost of the renovation project was not revealed at Wednesday’s announcement. The parlor will be closed in October and much of November, as well as between March 1st and mid-June of 2019. The project should be ready for next year’s Ice Cream Days, when the town of Le Mars will also celebrate its sesquicentennial.

(By Dennis Morrice, KLEM, Le Mars)

 

University of Iowa Community Credit Union to change name to comply with new law

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The state’s largest credit union will change its name by April of next year.

The University of Iowa Community Credit Union announced on its website that it will change its name. The move comes  after a bill was passed by the state legislature last session and signed into law that bans credit unions from using the name of a state university.

Banks complained that the credit union was getting benefits from using the name — even though it is not connected with the University of Iowa. The Board of Regents also raised concern about the perceived connection with the school.

The credit union website says it started in 1938 as the State University of Iowa Hospital Employees Credit Union. It expanded in 1966 and became the University of Iowa Credit Union. The word community was added to its name in 1988. The credit union says it will ask its members to help find a new name. The law requires the change by April 2019.

The credit union says 75% of its members are now not affiliated with the University of Iowa.

 

Casey’s sees impact of winter weather and changes in hours in 4th quarter

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Higher gas prices, poor weather and changes in store hours had an impact on fourth quarter sales for the Ankeny-based Casey’s convenience store chain.

The company reported diluted earnings per share of $8.34, which includes the one-time impact of $4.53 per share related to the adoption of the federal tax cuts for the year ended April 30, 2018. That compares to $4.48 for the same period last year.

Chief Financial Officer, Bill Walljasper, talked about the issues in a conference call for investors, saying the weather hit the sales of all items in the store. “Depending on the category you are looking at — it would range from a one to three percent impact,” Walljasper says. Sales of the prepared foods like pizza were down overall 1.3%, while other sales of other merchandise in the stores was down four-tenths of a percent in the fourth quarter.

Walljasper says April was the worst month and he says it was really noticeable in some areas as store traffic fell off. “Packaged beverages and beer were probably two of the items that would be the most dramatically impacted,” Walljasper says. “In contrast to that, obviously May started off with some very favorable weather and so we are seeing now double-digit increases in packaged beverages and high single digits in beer as well.” He says they saw the number of customers increase by 400 to 500 in stores in May as the weather improved.

Walljasper says a snowy February also saw drop compared to last year when the weather was unseasonably warm. He says they had more than one million dollars more in snow removal costs this winter. Another impact to the bottom line came in the decision to cut back pizza delivery and a cut in the number of stores which stayed open 24-hours.

“Roughly 400 of those were made in Q-four and with respect to pizza delivery — we made changes in about 100 to 110 locations,” according to Walljasper. “Not necessarily pulling back completely in pizza delivery — but maybe moving stores that used to be seven days a week down to four days a week. Walljasper says the changes were based on what was best for each store.

“It was really and hour-by-hour profitability analysis and so each store will be a little bit different,” he explains,”some stores we pulled completely back from a 24-hours. Basically that would be that midnight to five A.M. period. Some we just carved back three hours. It really depended on a store-by-store basis.”

He says the changes in store hours and delivery will overall end up saving more than one million dollars in expenses. Walljasper says rising gas prices led them to their lowest margin on gasoline for a quarter since 2014 — but he says the number of gallons sold was more than the report on miles driven — indicating they are getting more business from competitors.

Walljasper says they have plans to increase the fuel margin through “product optimization.” That includes adding biodiesel fuel to some stores. He says they will making roughly 350 changes to stores to add either premium gas or diesel, which he says have higher profit margins. Walljasper says they are working on a “Value Creation Plan” and hired a chief marketing officer to increase the promotion of instore items that he believes will help improve sales.

The company raised the price of some food items, including pizza slices, in May and he says that did not hurt sales. Walljasper says they plan to increase the price of donuts in July after finding they were underpriced in the market.

(Photo from Casey’s website)

 

‘Registered Apprenticeship Playbook’ created for Iowa businesses, schools

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Charles Vander Velden

A student who’ll be a senior at Pella High School this fall is already on the payroll at Vermeer Manufacturing.

Charles Vander Velden is the first student to enter a new apprenticeship program for welders that’s a partnership of the school, Vermeer and Des Moines Area Community College. Vander Velden started his apprenticeship in welding today.

“I saw this as a great opportunity for my future,” Vander Velden said.

Vander Velden’s school in Pella has developed a “Registered Apprenticeship Playbook” that businesses, students and schools may use.

“The playbook can easily be replicated by schools throughout the state…so it’s been a great learning experience for us,” said Pella High School principal Eric Nelson.

A dozen more students have expressed interest in starting Pella’s welding apprenticeship program this fall. That’s about seven percent of the entire class of incoming seniors.

“They’re going to earn money while they learn,” Nelson said. “The second thing is they’re going to have a career that they can be passionate about.”

The students in Pella’s “Career Academy” will be able to complete their apprenticeship within a year after graduating from high school. Des Moines Area Community College president Rob Denson indicated those students also will be able to get a two-year degree from DMACC as they complete their work-based program.

“This is just a start, this particular registered apprenticeship wtih Vermeer, Pella Schools and DMACC,” Denson said. “I mean, we are talking to other companies already and I know that other community colleges are talking to their companies…because we really do want to take the best practices from everyone and make this a national model.”

There are more than 700 registered apprenticeship programs underway in Iowa today, with more than 7,700 active apprentices.

New programs hope to train small businesses in the use of social media

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Many small business owners in Iowa are trying to navigate the world of social media in hopes of boosting their bottom lines.

Dina Bechman, who sells artwork through her business Five Monkeys in Des Moines, admits it can be a bit overwhelming.

“Social media can be a large animal to conquer,” Bechman says. Last week, Bechman took part in a Facebook Community Boost – as officials with the social media giant hosted a training session in Des Moines.

“Was some of it repetitive for me? Of course, because I’m pretty well involved with social media,” Bechman said. “But, were there some ‘a-has’ of things I wasn’t doing? Or ‘that’s how you do that?’ Absolutely. Having Facebook come to town and help train people and teach people how to have a social media presence, and some of the tools available once you have one, was pretty amazing.” Like most small business owners, Bechman has a minimal marketing budget. But, she’s spending a few dollars on social media in hopes of drawing more traffic to her store and website.

“A typical month is usually right around $50,” Bechman said. Is it working? “Absolutely,” Bechman said. Last week, Facebook announced a partnership with Des Moines Area Community College (DMACC) to develop a new Digital Marketing Certificate program.

In addition, at the U.S. Mayors Conference in Boston, Facebook COO Sheryl Sandberg announced a pledge to train one-million people and small business owners across the U.S. by 2020.

 

 

Winnebago buys recreational boat company Chris-Craft

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Chris Craft photo of the Corsair.

Winnebago Industries is announcing plans to expanding its recreational products to boats.

The Forest City-based motor home manufacturer announced today that they have acquired Chris-Craft, a recreational boat builder, from Stellican Ltd., which has owned the brand since 2001. Winnebago president and CEO Michael Happe says Chris-Craft is as iconic, premium brand that dates back to 1874 that shares many similarities with the Winnebago brand.

Happe says Chris-Craft’s strong brand, high-quality product line, and premium position in the marine market make it an attractive addition to the Winnebago portfolio. Terms of the transaction were not disclosed, but Winnebago says they expect to maintain Chris-Craft’s Sarasota Florida headquarters and to have Chris-Craft’s president Stephen Heese to continue in that position.

(By Bob Fisher, KRIB, Mason City)

 

Fire Marshal expects to see more people apply for fireworks licenses this year

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Fireworks will go on sale again in Iowa communities later this week and the state fire marshal’s office expects the number of licensed sellers will increase by as much as 20 percent this year.

State Fire Marshal Dan Wood says many stands were not inspected last year because of the narrow window between passage of the law that now allows fireworks in Iowa and the 4th of July holiday. With as many as 800 licenses expected to be issued this year, Wood’s agency still may not be able to inspect them all.

“With the amount that there is and with the amount of staff we have to put at it, we’ll do our best, but I can’t guarantee that every place will get inspected,” Wood says. “I wish they could. Wood says his office is working hard to approve the plans for all licensees before the permanent stands begin selling on June 1st. Wood says the plans, though, are just a piece of paper.

“It’s, you know, what they plan on doing. Sometimes, not always, sometimes when they go to set up, it doesn’t get done the way the plans say they get done and that’s why we do inspections,” Wood says. “And we do inspections because we want them to be safe, too.” Temporary stands for selling fireworks may open for business on June 13th. Wood advises fireworks buyers to check their local ordinances about when and where to set off the fireworks around the 4th of July holiday.

(By Iowa Public Radio’s Joyce Russell)