1996 It's been tough for the industry, factory report to the AGM

The last 12 months has been one of the most significant periods in the company’s history.  Fleetwood has exported caravans to Holland and Denmark; there has been a diversification of the factory’s resources into the manufacture and distribution of box trailer units; and there has been a change of managing director.  In addition, the continuing slump in the caravan tourer market has resulted in a decrease in the number of caravans that Fleetwood produce and, sadly, the introduction of a three-day working week at the factory for the first two months of 1996.

In the late 70s and early 80s, Fleetwood exported into Scandinavia and Continental Europe with some successes.  Unfortunately the buoyancy of these markets is not now mirrored in the UK and like most manufacturers, Fleetwood is constantly looking for new opportunities abroad to supplement and maintain the health of its manufacturing base.  Holland is proving to be the most practical and promising of these opportunities.  Currently, we have six Dutch dealers handling Fleetwood products, and although the Netherlands’ taste in colours and levels of equipment requirement are different from our own, the Dutch clearly like the UK style of caravan and are becoming more enthusiastic about owning one.

Cautious optimism

Fleetwood remains cautiously optimistic in the area of export, but we must always remember that our core business is manufacturing tourers for the home market through a healthy and expanding dealer network.  However attractive other areas may be regarded, we must beware of channelling all our energies and resources at the expense of the continuing development of the UK touring caravan.  We do so at our peril, and both dealer and buyers alike will not really forgive our neglect in these areas.

Last year, a separate division of the company was formed to develop the design, manufacture and distribution of commercial trailers.  This has taken up a considerable amount of our time, and the result is a launch of four standard box trailers, a vending unit and an exhibition/display vehicle.  There is a separate dealership network now firmly in place and the first of these trailers are now being delivered around the country.  Clearly there is also a strong market for vending and exhibition trailers built to a customer’s particular specifications.  We have been quietly encouraged by the number of enquiries we have received in this area, and already three of these specialist trailers have been built and delivered to very satisfied customers.

In August of last year Ken Green retired from his post as managing director of Fleetwood, a position which he had held for 12 years.  During that time, between 1989 and 1993, he presided over one of the most successful periods of Fleetwood’s history.  He introduced the Crystal and Garland brand of caravans and was firm in his commitment to change the public perception of the company away from the name of Colchester to the strong name of Fleetwood which it holds today.

Part of that development was the formation of your own club and his period of office has seen the development of the club to the position which it hold today.  His successor is Roger Williamson whose recent background in corporate finance with United Dominions Trust gave him special responsibilities for the caravan industry.  A number of you have already met Roger at Earls Court abd at the NEC and we know that you would want to wish him every success for the difficult job ahead.

Challenging times

Clearly, part of that job will be to steer Fleetwood safely through one of the most challenging periods in its history.  Put simply, fewer people are buying touring caravans and the market is shrinking to a degree that is causing concern to all manufacturers.  In 1990, the number of new caravans produced was 38,000.  This year it is doubtful whether that figure will exceed 19,000.  As a leisure pursuit, caravanning is not as popular as it was five years ago and the image of caravanning to the uncommitted remains uninspiring.

The health of the industry depends on all these issues being addressed as quickly as possible.  The fact that we recognise them is at least an important start and already representative groups from the manufacturers are working on the way ahead.  We know, however, that the well-being of Fleetwood will be mirrored in the success and continuing prosperity of the club and we shall be playing a very important part in the decisions to be taken at the highest level to ensure that this well-being  is protected and fostered.

We wish you all well for the coming year; we send our congratulations tp Terry and Christine for a hard-working and successful year in office and our best wishes to your new chairman and his committee for the next 12 months.