Patrick Industries Revenue Jumps 41%, Boosted by RV Craze

Elkhart, IN – Sales rose 41% in the fourth quarter to $772.6M for wood components giant Patrick Industries, Inc. (NASDAQ: PATK), a major manufacturer and distributor of component and building products for the recreational vehicle, marine, manufactured housing, and industrial markets. Despite COVID-19-related operating disruptions in the first half of 2020, net sales rose 6% to $2.48B of for the full year ended December 31.

Sales of cabinetry, paneling, moulding, and other fixtures for RVs represent 58% of revenue, increased 52% in the fourth quarter, outpacing the market overall, which grew 35%.  Many Americans took to the road safely during the COVID-19 pandemic, boosting RV sales, and Patrick Industries’ as well.

Patrick’s Adorn division in Elkhart is among several that produces hardwood doors and laminates for the RV and manufactured housing markets. Adorn’s 210,000 sq. ft. facility with state-of-the-art woodworking equipment and a fully automated finishing line specializes in handling high volume orders of solid hardwood products but offers opportunities to produce specialty components to complement the high volume products.

The other business of Adorn is manufacturing interior flat laminated panels and wrapped mouldings. Established in 1959, it has experience in the lamination of vinyl and paper overlays to gypsum, MDF, particle board, plywood, pine, and luan. Its expertise includes saw cutting and laminating of substrates, both one-sided and two-sided, in various lengths, thicknesses, and widths, to meet customer requirements. 

“Momentum and tailwinds supporting both retail and wholesale shipments in the recreational vehicle and boating markets remained strong through the fourth quarter as outdoor recreation has seen significant growth in popularity during the COVID-19 pandemic, reinforcing our view of the attractiveness and resilience of our leisure lifestyle markets,” says Andy Nemeth, President and Chief Executive Officer. “The size, scale and flexibility of our operating and financial platform allowed us to execute strategically and tactically during the quarter, and leverage our fixed cost structure to drive increased profitability during this period of strong demand. We continued to accelerate capital investments in our infrastructure, including automation and capacity expansion, which will allow us to flex our operations in this dynamic environment.”

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