The recreational vehicle industry in Indiana is watching what kind of impact the coronavirus may have on the market. One of the biggest unknown factors is reliability on parts.
Our partners at The Times of Northwest Indiana talked with Wayne Kaylor, chief executive officer of Way Interglobal Network in Elkhart, a supplier of building materials, products, electronics and appliances to the RV industry.
The company has facilities in China. Kaylor said there have been some disruptions due to COVID-19, and the industry should know in the next several weeks whether the coronavirus shock will leave lingering issues.
The publication says many of the factories in China that temporarily closed in the wake of the virus outbreak are starting production again. But even then, there are still concerns about transportation and whether finished products will make it to their destination.
“If the factories open up next week, there’s still going to be some disruption,” said Michael Hicks, an economist at Ball State University. “Even a short supply disruption, couple with stock market declines, would hit manufacturing-dependent states such as Indiana particularly hard.”
With the issuance of its quarterly earnings report last week, Elkhart-based Thor Industries said the company said it has not experienced any production shutdowns at any of its facilities in the U.S. or Europe as a result of the coronavirus.
“The last week or two have seen a sharp increase in the concern and market reaction related to the coronavirus and the effect it may have on individuals and communities impacted by the virus, supply chains – particularly for materials sourced from China or other areas that are facing increased infection rates, and on the domestic and global economies,” said Bob Martin, chief executive officer for Thor Industries.
As the top manufacturing state in the country, many sectors in Indiana business could feel the pressure. Click here to read more.