Winnebago receives more than $500,000 in Iowa incentives as it brings back jobs it previously shipped to the West Coast
Kevin HardyWinnebago Industries will receive more than half a million dollars in state and local economic development incentives as it moves a major motorhome production line from the West Coast back to Iowa.
Winnebago asked the Iowa Economic Development Authority for $361,000 in state tax refunds and credits. The authority's board unanimously approved the request Friday morning with no discussion.
Forest City is expected to offer a $155,000 tax abatement.
Earlier this month, Winnebago announced it would hire about 175 workers in Forest City as it returned the production of its large diesel coaches from Oregon back to Iowa.
The move means the company will soon manufacture all of its motorhome models in Forest City. The northern Iowa community has been the brand's traditional headquarters, though most executives now work out of offices in the Twin Cities.
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Winnebago officials said bringing its Class A diesel motorhomes back to Iowa will consolidate and centralize product development, the supply chain and assembly work at one location.
The company in 2015 purchased a motorhome plant in Junction City, Oregon, and in 2016 moved its diesel lines from Forest City to the Junction City campus.
Executives had previously said the westward move would save on shipping costs by allowing easy access to the lucrative West Coast market. But the company never realized its efficiency and profitability goals from the move.
In its agreement with state officials, Winnebago pledged it would hire 148 new workers, though only 23 will earn the minimum $21.79 per hour needed to qualify for state jobs incentives. The RV maker plans to spend $5.3 million on building remodeling and new equipment.
The publicly traded company's earnings topped $2 billion in fiscal year 2018 — nearly 10 times larger than 2009's earnings of about $211 million.
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