May 4, 2021 | Bill Esler
Elkhart, IN – Lippert Components’ 440,000-sq.-ft. furniture plant churns out high-quality, comfortable, and durable RV and pontoon furniture, with automated efficiency and expertise to rival the best and biggest furniture makers, delivering 2,900 pieces of furniture per shift.
Inside LCI Industries 800,000-sq.-ft Plant 77 in Yoder, IN (photo below), the wood shop’s six CR Onsrud CNCs are devoted to the manufacture of marine furniture. These machines size and shape panels of plywood and other materials into parts used to produce hundreds of furniture kits for pontoon boats and other vessels.
This is just one of Lippert Components, Inc. (NYSE: LCII) 70+ factories in North America and Europe that delivered the goods to rake in record first quarter sales of $1 billion, up 52%. Net income increased 163% to $74.1 million, in a banner year for the RV sector, and for Lippert.
Formally known as LCI Industries and based in Elkhart, IN, Lippert supplies engineered components for the leading RV (recreational vehicles) and transportation original equipment manufacturers (OEMs) in the recreation and transportation product markets, and the related aftermarkets of those industries.
“The wave of customers continuing to stream into the RV lifestyle is fueling one of the largest replacement cycles the industry has ever seen,” says Jason Lippert, LCI Industries’ CEO. “This will undoubtedly serve as an additional tailwind to our already successful and fast-growing aftermarket business, which has nearly tripled in size over the last three years. Given the millions of RVs entering the parts replacement cycle, we remain confident that this will continue to propel our aftermarket business over the next several years.”
Lippert produces 4,000 laminated panels every day in its 550,000-sq.-ft manufacturing facility. Systems for multiple sizes, corner specifications, colors, and finishes are available. A 110-inch hot melt laminator handles panels up to 30 feet in length. Pressed membrane laminated countertop capabilities handle sizes up to 50 x 96” and 2,000 entry doors and 3,500 baggage doors are produced daily in the plant.
The increase in year-over-year net sales for the first quarter of 2021 was primarily driven by record RV retail demand and strong aftermarket sales growth. The increase was also relative to the start of the pandemic in the first quarter of 2020, which had a negative impact on sales in that quarter.
Lippert tracks its success by the dollars’ worth of components it sells to OEMs per RV. In the towable category – travel trailers and “fifth-wheel” RVs, Lippert says its average product content per travel trailer and fifth-wheel RV for the year ended March 31, 2021 increased $122 to $3,476
April 2021 consolidated net sales were approximately $365 million, up 52% from April 2020, as RV production increased significantly to meet elevated RV retail demand, and prior year comparative net sales were negatively impacted by COVID-19 shut-downs.
Lippert used its cash flow from operations to buy materials and parts inventory as insurance against supply chain disruptions. Lippert’s products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; and other accessories. www.lci1.com.
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