Heartland Recreational Vehicles, a subsidiary of THOR Industries Inc., has announced the closure of its Sturgis, Michigan manufacturing plant, resulting in the layoff of 121 employees effective June 20.
The decision, attributed to “business necessity,” comes less than two years after the facility’s opening in late 2023.
The 144,000-square-foot plant, located at 1500 Haines Blvd., was designed to produce up to 5,000 RVs annually and was part of a $35.9 million investment supported by state and local incentives, including a $700,000 grant from the Michigan Economic Development Corp.
The closure is part of a broader restructuring within THOR Industries, which includes layoffs at other facilities in Indiana and Michigan. In total, approximately 500 workers across four manufacturing campuses, including those in Elkhart, Middlebury, and Howe, have been affected, according to WNDU.
This move aligns with THOR Industries’ strategic organizational restructuring announced in March, aiming to improve operational efficiency by integrating Heartland RV under its Jayco division.
The company stated that this integration would create “a more seamless operational framework” to enhance competitiveness and customer service.
Despite these layoffs, the RV industry is experiencing an uptick in shipments.
According to the RV Industry Association (RVIA), total RV shipments in March 2025 reached 37,348 units, marking a 15.8% increase compared to March 2024.
Year-to-date shipments are up 13.9%, totaling 97,848 units. Towable RVs, which include travel trailers and fifth wheels, saw a 17.1% increase, while motorhomes experienced a 4.4% rise.
The RVIA projects that wholesale RV shipments for 2025 will range between 333,400 and 366,800 units, with a median forecast of 350,100 units. This projection suggests a modest increase from the 333,700 units shipped in 2024.
Towable RVs are expected to account for the majority of this growth, with an anticipated 4.8% increase, while motorhome shipments are projected to rise by 5.5%.
The contrast between the industry’s overall growth and the closure of the Sturgis plant highlights the complexities of the RV market.
While demand for RVs is rising, manufacturers like THOR Industries are reevaluating their operations to adapt to changing market dynamics and improve profitability.
The consolidation of Heartland RV under the Jayco division is a strategic move aimed at streamlining operations and enhancing brand offerings.
As the RV industry continues to evolve, companies are likely to focus on operational efficiency and strategic alignment to remain competitive.
The integration of brands and consolidation of manufacturing operations may become more common as manufacturers seek to navigate market fluctuations and consumer preferences.