Reaction to Coachmen sale mixed

Nov 22, 2008 (Goshen News - McClatchy-Tribune Information Services via COMTEX) -- COA | Quote | Chart | News | PowerRating -- MIDDLEBURY, Ind. -- Shari Nhahn of Sturgis, Mich. received a surprising call from her husband during his first break at work Friday morning.

He told her that Coachmen Industries Inc., his Middlebury-based employer, had announced a proposal for the company to be purchased by competitor Forest River.

"He thinks it will have a positive effect," Nhahn said, pointing out that they have been lucky so far. "For us, it's actually been pretty smooth because he missed all the layoffs, thankfully."

Nhahn's husband left a job in construction three years ago to work for Coachmen because he wanted to get away from seasonal-only employment. With demand for work in the county increasing at the time, there was also another reason.

"It was a job," said Nhahn, who works at CVS.

Residents of the small town have mixed views on the merger, but most, like Nhahn, feel it will deliver a beneficial effect to the struggling company and its workers.

One such resident found out about the deal while trading stocks online. Derek Ward, relaxing with a friend at Cafe Crossing, discussed his concerns.

"I know that Warren Buffett came into town about a month ago to try and buy the place, but they turned him down," he said.

Buffett is a billionaire who owns Berkshire-Hathaway, an investing company. That company owns Forest River.

One man sees danger

Ward is one of few who sees danger in the proposal.

"In the long run, it's going to be bad. In the short term, good," he said.

Ward has been following investment mogul Warren Buffett's actions and portfolio for some time and isn't entirely thrilled by what he has seen.

At one point Ward purchased stock in a mobile home company, which was then bought by Buffett. Shortly after, he said, Buffett also purchased the finance company that worked with the company, as well as the lots being sold for the homes.

His fear is that, if allowed to continue operating in the same fashion, Buffett will become a "juggernaut," owning too many aspects of too many industries. He also worries what his future actions relating to Coachmen will be.

"He could keep the best and close out the worst, getting rid of who knows what," Ward said.

Another concern Ward notes is the potential for a Wal-Mart-like situation, where the owner company becomes so big that it harms employees, paying them less and providing fewer benefits.

"We have to wait until everything settles," Ward said. "It's going to be hard times."

The beauty shop talk

Kathy Pfister hadn't heard about the merger, but has been hearing plenty from RV plant workers and others about personal issues caused by or exacerbated by failing industries. Then again, she said, you can learn a lot cutting hair.

In between appointments at her barbershop, which she has been operating in downtown Middlebury for 17 years, she talked about the economy as a whole, its problems and how people's participation in it has changed.

"Some people aren't sympathetic for people (who have been laid off) who haven't saved (money)," Pfister said. "There are other people who have lost major jobs that still get by."

People in Middlebury are very down to earth and pragmatic, she said. For example, most of her acquaintances in town are strongly, even vehemently against bailing out the automotive industry.

Pfister contrasted the executives showing up to Congressional hearings in their private jets with Jimmy Carter, who still sent his daughter to public school while in the White House.

Still, she is glad to have avoided much of the business problems that corporate organizations are now facing.

"I'm lucky I'm in a service business and people still get their hair cut," Pfister said.

An optimist

Middlebury Town Manager Mark Salee is optimistic about Coachmen's new future.

"Announcing the purchase of a company that's going to remain in Middlebury is a good thing," Salee said, later adding that "we have a lot of tradition and heritage that comes along with Middlebury and the RV industry."

Salee has been town manager only two-and-a-half months, but he is pleased with how the town is doing so far. Despite the constant churning of the RV industry, he said he hasn't heard any specific complaints yet.

"What I hear mostly is just general concerns with the economy," he said.

Coachmen Industries was founded in Middlebury in April 1964 by brothers Tom, Keith and Claude Corson. Tom chose the name because he had seen a motel named "Coachman" and felt that the plural would fit his idea of the company as a collaboration of people with different talents. They sold their first travel trailer in July of the same year, exceeding $1 million in yearly sales by 1966.

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