Winnebago Industries has announced plans to shift Winnebago branded Class A diesel motor home manufacturing from its Junction City, Oregon plant to its manufacturing campus in Forest City. The transition consolidates and centralizes product development, supply chain, and assembly operations for the company’s diesel motor home business to a single location. Chad Reese with Winnebago Industries explained what is currently operating at the Junction City location.
Now with the move comes the change in operations for the company in a more centralized manufacturing and delivery system.
The company is expected to begin the transition immediately. According to Reese, this will be measured move designed to be as efficient as possible.
Related expenses are expected to negatively impact both the third and fourth quarter fiscal earnings per share by an estimated two cents per share. However, in 2020, it is expected to generate an incremental income benefit of nearly $4 million leading into 2021. In terms of employment, the Junction City campus currently employs 250 workers. That will be trimmed to 30 positions who will work in an aftermarket and RV parts support facility.
For Forest City, the Winnebago plant is expected to add 175 positions to the assembly side by the end of 2020. Will there be a possible increase in the job projection?
Reese said that the company is very proud to move the diesel motor home manufacturing back to Forest City.