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Because recreational vehicles are like miniature houses, RV maker Forest River Manufacturing is looking for plumbers, electricians, carpenters and people with similar skills, "Not so much those who have experience with auto plants," economic development leader Ron Kitchens says.
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UPDATE: White Pigeon leaders are thrilled
WHITE PIGEON, MI – Recreational vehicle maker Forest River Manufacturing LLC will open its first location in Michigan in order to find suitable workers, an economic development leader says.
Although the travel trailers, pop-up campers and other products made by Forest River are mobile, and although Michigan is peppered with people who have automobile industry experience, Ron Kitchens said, "An RV is actually a miniature house."
The chief executive officer of Southwest Michigan First said Elkhart, Ind.-based Forest River Manufacturing is looking for plumbers, electricians, carpenters and people with similar skills, "Not so much those who have experience with auto plants," he said.
"They just simply didn't have the labor ability in Northern Indiana," Kitchens said, when asked why River Forest plans to expand into Michigan. "They believed that moving north into Michigan, they could find the skilled labor."
Plans for Forest River to spend more than $7 million over the next three years to establish its first Michigan location surfaced Tuesday as the company received federal and state grants and a local incentive to help defray the cost of such things as new sewer and water infrastructure, and roads.
The project will involve erecting three 100,000-square-foot buildings in what is now green space in the Village of White Pigeon, as well as the creation of 396 jobs over the next five years.
Attempts to contact a spokesman for Forest River were not successful Tuesday.
Kitchens, whose economic development organization has worked with the company for the past year to bring the project to southern Michigan, said, "They really wanted to be along the border. They looked as far north as Three Rivers and Cassopolis, and they had some pretty distinct ideas of how far north of the border they needed to be to find the labor force."
He said Elkhart, which has been mentioned by President Barack Obama as the American town that may have seen the greatest proportional loss of jobs during the 2008-2010 economic recession, has rebounded well. The recreational vehicle industry has seen a resurgence, he said.
Forest River will erect three all-metal buildings at 500 W. Chicago Road in the Village of White Pigeon. No job titles or anticipated pay levels were announced. But Kitchens said work to install the first of the three prefabricated buildings is to begin this spring and hiring is expected by October.
The company does not have a specific place on its website to apply for job opportunities but is expected to work with Michigan Works as it looks to fill positions.
Kitchens said Forest River will initiate some new product lines in White Pigeon but company managers have not said what lines they will be.
The expansion is being done to accommodate new work, Kitchen said, so jobs in St. Joseph County will not mean a job transfer or job losses in Indiana or any other locations where the company has operations.
Kitchen said the company will find the workers it needs here. And he had confidence that the expansion would continue here, saying, "This won't be the last project we announce with them."
Forest River Inc. describes itself as one of America's leading manufacturers of recreational vehicles, pontoon boats, cargo trailers and buses. It was founded in 1996 by Peter Liegl and has manufacturing facilities throughout the Midwest and West Coast.
Those locations produce motorized Class A, B and C vehicles, travel trailers, fifth wheels, pop-up tent campers, park model trailers, destination trailers, cargo trailers, commercial vehicles, buses, pontoons, restroom trailers and mobile offices.
Forest River was a closely held company that had about 5,500 employees and annual sales of about $1.3 billion when it was acquired in 2005 by Berkshire Hathaway, the holding company of billionaire investor Warren Buffet.
Forest River now operates as a wholly owned subsidiary of Berkshire Hathaway, with founder Liegle continuing as its top executive.
The expansion project will receive a $350,000 Michigan Business Development Program performance-based grant and the Village of White Pigeon is expected to support to the project with a property tax abatement.
The Michigan Strategic Fund has also awarded the Village of White Pigeon $1.6 million in Community Development Block Grant funds for the project. That is to be used to help with the cost of building infrastructure, including sewer and water services, and road construction and utilities.
Some of the awarded funds are to be used toward on-the-job training for 264 employees at the new facilities.
Business writer Al Jones may be contacted at ajones5@mlive.com. Follow me on Twitter at ajones5_al