200 jobs coming back to troubled RV Co.

MIDDLEBURY, IND. (WANE) - The RV industry appears to be preparing for a better day. After months of uncertainty and poor sales, Middlebury’s Jayco RV is bringing back more than 200 jobs.

In November of 2008, the company laid off 200 workers and suffered a tough 2009.

"How would nightmare sound to you," said Sid Johnson, Spokesperson for Jayco RV.

That's how Johnson describes the year. Sales of Jayco's R-V's fell more than 35% this year.

"As a result of the downtown, dealer inventories are very low right now. Also, our retail sales activity has begun to pick up," Johnson said.

Analysts predict that'll continue to climb in 2010.

"Some are projecting a 25-30% increase in sales next year," Johnson said.

And Jayco is getting ready. Its plants currently produce 75 RV's a day; starting next week, that'll be up to 130 units a day.

An RV isn’t cheap to say the least. Some can set you back upwards of $100,000. So with demand coming back – or bring projected to come back – does that mean the economy is coming back?

"Things drop off, and then all you have to do is level off and you're text book out of a recession,” said David Hefty of Cornerstone Wealth Management.

David Hefty of Cornerstone Wealth Management says the economy is leveling off. But: it's not growing. He adds there are still an awful lot of people unemployed and battling foreclosure.

But, RV sales are the first indicator of an economy's health, and any growth in that industry is a good sign.

"We know that the demand is going to be significantly lower than what it was just a couple of years ago, but to what range? That's the question." Hefty said.

While a rejuvenated RV industry offers signs of improvement, it doesn't mean the economy is back to full strength just yet.

"We are in a financial crisis; this financial crisis will be around for the next ten to fifteen years if not longer. What will happen though is we will have the economy, it will expand during that time, it will go flat during that time, it will contract during that time, but what won't leave us is a financial crisis,” Hefty said.

Economists expect Indiana's unemployment rate to remain at 9 percent or higher throughout next year.