As the number of baby boomers touring North America in recreation vehicles grows, so too do the sales figures at Elkhart, Ind.-based Performance Plastics LLC.
With about 75 percent of sales coming from its supply business to the RV industry, fun-seeking retirees gobbling up motor homes have helped Performance Plastics grow by 50 percent or more each of its first five years in business.
Founded in 2000, the rotational molder is poised for its first major expansion, adding 40,000 square feet of leased manufacturing space for its operations. Right now, about 56 employees work out of Performance Plastics' 60,000-square-foot plant in Elkhart. The company is likely to add about 20 new employees during the next couple years, said President and owner Gary Wright in a March 24 telephone interview.
Performance Plastics rotomolds primarily polyethylene to make water and holding tanks for RVs. Each tank takes between 50 minutes and an hour to make. Performance Plastics does make smaller, more aesthetic parts as well, Wright said.
The company has four rotomolding machines and will add a fifth when the company moves into the new building next door. Wright said he will invest about $500,000 in new equipment.
Performance Plastics' 2005 sales were about $5.5 million. Wright expects about $7 million in sales this year.
``Will growth continue at this particular pace? My crystal ball is a little fuzzy sometimes,'' he said. ``That big growth is probably going to be capped somewhat. I expect more realistic growth over the next five to 10 years.''
According to the Reston, Va.-based Recreation Vehicle Industry Association, about $14 billion in RVs and equipment are sold each year. RV shipments hit a 27-year high in 2005, at 384,400.