(BRK.A), (BRK.B)
RV manufacturer Forest River, a subsidiary of Berkshire Hathaway, has purchased a 100-acre-plus industrial site in the town of LaGrange, Indiana. The move brings much needed activity to a facility that has been sitting empty for the past eight years, and much needed jobs to the community of roughly 2,700 people.
The site is the location of the former Dutch Housing plant and a special public hearing will be held on Jan. 16, 2017, at the Town Hall to designate the former Dutch Housing plant an economic revitalization zone.
It is expected LaGrange officials will approve Forest River’s request for a proposed 10-year $1.7 million tax abatement on the property and equipment at that time.
The move by Forest River to locate a facility in LaGrange will be a boost for area employment, with as many as 250 jobs expected the first year, and as many as 450 by the end of 2018.
Forest River has not announced exactly what it will be building at the new facility, but part of its production line from its Topeka plant is expected to be relocated to the facility.
The RV business has been brisk in 2016, and according to the Recreational Vehicle Industry Association, 2017 should be the eighth consecutive year of growth with shipments predicted to reach 404,800 units.
The RVIA cites “continued gains in jobs, incomes and household wealth combined with relatively low levels of inflation, unemployment and interest rates,” as the reason for optimism.
© 2016 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.