RV builder closes local plant

Recreational vehicle manufacturer West Coast Leisure Homes is closing its Dawson Avenue plant in September because the high Canadian dollar has granted its American competiton a price advantage. The closure will cost some 40 workers, although the company has been shedding workers for months.

The high Canadian dollar has forced another local manufacturing company to close its doors.

West Coast Leisure Homes — which produces Okanagan RVs and campers — is shutting down production at its Dawson Avenue plant Sept. 12.

This closure will cost about 40 workers their jobs. In fact, the company has been shedding jobs for months as orders have dried up in the face of a changing economic environment.

Company president Chris Epp blamed the closure on the high value of the Canadian dollar.

Epps said the rise of the dollar has made it difficult to remain competitive against American competitors.

“When the dollar foes to 85 cents to parity, we have a 20 per cent price disadvantage,” he said.

The rise of the Canadian dollar has coincided with a general slump in the RV industry across North America.

“All manufacturers were showing reduced sales for at least a year,” said Epps, adding RV builders on both sides of the border have been forced to close their doors.

“And of course, the high fuel price has changed the way people think of RVing,” he said.

A small crew of workers will remain at the plant to look after warranties and retailers, said Epps, who held open the possibility that the plant may re-open in the future.

“Yes, there is a potential we could re-open the plant at some point,” he said.

That would depend on the state of the economy and the value of the Canadian dollar, said Epps.

He stressed that this closure is not a bankruptcy. “This is a plant closure,” he said.

It is certainly the most recent in a series of closures that have hit the local manufacturing sector.

Companies that add value to forest products slated for export abroad have been hit particularly hard.

Last week, furniture maker Canwood Furniture closed its doors for good. Hyak Specialty Wood Products will wind down its construction stake plant at the end of July.

Weyerhaeuser Canada, TSW Laminating and Oldcastle Glass have also shut down their local production facilities, citing unsustainable business models. The service sector has also seen job losses.

According to one unconfirmed estimate, the region has lost some 700 jobs in recent months.