Jayco Announces Western Expansion Plans

December 13, 2004

Jayco, Inc. announced today it will expand its manufacturing operations into the Western United States. The privately owned company will manufacture travel trailers and fifth wheels in a 154,000 square-foot-facility in Twin Falls, Idaho. Company officials said production is scheduled to begin in early 2005 and that as many as 80 jobs will be created by the end of the first year of operation.

Jayco’s Board of Directors approved plans for the expansion program in August of 2004, with several locations in three western states under “active consideration.”

“We chose Twin Falls after extensive discussion with state and local officials,” said Derald L. Bontrager, president and chief operating officer. “We are most impressed with the people and Idaho’s business friendly environment. The labor climate, interstate transportation availability and access to appropriate suppliers were all attractive factors in our decision-making process. Jayco is a family-owned and family oriented company. We think it is important to locate our facilities in an area that is a good place for our employees to raise their families,” he said.

Bontrager said the company will initially build its popular line of Jay Flight travel trailers and fifth wheels in the Twin Falls facility.

“Our Jay Flight brand is the best-selling towable RV line in North America,” said Bontrager. “Jayco’s market share growth, along with a record order backlog, has placed pressure on our ability to provide RVs to customers in a timely manner. Our facilities in Indiana are operating at near capacity and new order intake is outpacing our manufacturing capacity. The new Twin Falls operating facility will allow us to increase production to meet market demand. In addition, freight costs will be significantly lowered; this will provide us the opportunity to improve our already growing market share in the western United States and Canada.”

Idaho Governor Dirk Kempthorne said “Jayco is a leader in the RV market. The company’s decision to choose Idaho is a feather in our cap and reinforces the message that we deliver on our promise to maintain a progressive business climate.”

Bontrager noted that the western market for RVs is growing faster than the rest of North America. “California, Oregon and Washington are all ranked in the industry’s top 12 states,” said Bontrager. “ Alberta, British Columbia, Saskatchewan and Manitoba represent a large percentage of Jayco’s Canadian sales. As a result, we are approaching this expansion program as part of a long-term overall strategy of moving manufacturing facilities closer to the marketplace.”

Jayco, Inc. is one of the nation’s largest builders of recreational vehicles. The company makes and markets folding camping trailers, travel trailers, fifth wheel trailers and motorhomes under the Eagle, Designer, Jay Series, Jay Feather, Jay Flight, Talon, Escapade, Greyhawk, Granite Ridge and Seneca brand names.

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