Winnebago Industries, Inc. (WGO), Thor Industries, Inc. (THO): Made in America: RVs

Looking ahead, Thor Industries, Inc. (NYSE:THO) should also benefit from the improved industry sales environment in 2013 and beyond. In addition, its shareholder-friendly management team has continued to look for complementary segments to add to Thor Industries, Inc. (NYSE:THO)’s core recreational vehicle business. With a strong current sales backlog, the company should post solid increases in income this year as it adds acquired brands to its overall manufacturing base.

Investors looking for an investment in the recreational vehicle space might also want to consider leading suppliers to the industry, like Patrick Industries, Inc. (NASDAQ:PATK). Founded in 1959 as a distributor of paneling to motor coach manufacturers, Patrick Industries now manufactures a range of products that includes hardwood doors, cabinets, and wall panels through a network of 12 U.S. plants. The company has successfully used the acquisition channel to diversify its product offerings, including purchases of lighting and hardwood door manufacturers in 2012.

In FY2012, Patrick Industries reported strong financial results, with increases in revenues and operating income of 42.1% and 100.7%, respectively, versus the prior year. The company’s sales growth benefited from four acquisitions in 2012, as well as a 20% organic increase in its legacy business. In addition, Patrick Industries’ operating margin increased due to an improved price environment for its product portfolio. Looking ahead, the company should be able to ride the industry’s sales momentum and continue to pick up market share in the fragmented RV supplier industry.

Despite high prices for its products, the RV industry is well positioned for future sales growth with large expected increases in its retirement-age, core customer base. The industry is also trying to reduce its cyclical nature by offering lower-priced products that would appeal to younger seasonal users. While these companies aren’t for the buy-and-hold crowd, the industry’s current upswing could lead to gains for investors willing to take the volatility.

The article Made in America: RVs originally appeared on Fool.com and is written by Robert Hanley.

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