RV PRO

May '20

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40 • RV PRO • May 2020 rv-pro.com Patrick Industries has been on a growth track since its begin- ning more than 60 years ago, but the rate of growth has soared in the past five years, causing the RV industry supplier to be ranked No. 41 on Fortune magazine's Top 100 fastest-growing companies in 2016. During that time, Elkhart, Ind.-based Patrick has become one of the largest suppliers and distributors of just about every kind of component needed to assemble an RV. Part of the company's growth has been organic, but a good portion has been due to a number of investments and acquisitions. Patrick's investments in other companies has paid off, as its average content per RV has more than doubled since third quarter 2014 and grown by 9 percent since third quarter 2018. As of third quarter 2019, Patrick's content per unit was reported at $3,132, according to the company annual report. RV industry revenues represented 54 percent of Patrick's fourth quarter 2019 sales, a decrease of 4 percent from the previous year. Net sales for the fourth quarter of 2019 increased $18.3 million, to $549.5 million. Patrick Industries' leaders are notoriously media shy and declined to speak with RV PRO for this story, but as it is a pub- licly traded company, there are a wealth of sources of public infor- mation documenting the company's successful rise. Although based in Elkhart, Ind., Patrick has coast-to-coast operations throughout the U.S. in 23 states and in Canada, China and the Netherlands. Major manufactured products produced by the company and its subsidiaries include appliances, cabinet doors, (granite, quartz and solid-surface) countertops, decorative vinyl, drywall, fabri- cated aluminum products, slide-out trim and fascia, hardwood furniture, fiberglass bath fixtures, interior passage doors, and plumbing products. In addition, Patrick provides transportation and logistics services. "As we enter fiscal 2020 and beyond, we believe we are well-po- sitioned to drive our business and strategic plan and execute off of our operational and financial platform," Andy Nemeth, president and CEO, said during Patrick's report on its fourth quarter and full year 2019 financial results. "In addition, consistent with past practices, we intend to put our strong cash flows and financing platform to work and continue to invest in our overall business model and brands through acquisitions, share repurchases, strategic capital expenditures, and geographic and product line expansions to support our organizational strategic agenda." Those sorts of acquisitions have played an important part of Patrick Industries over the years, with such notable purchases as American Hardwoods, Better Way Products, Décor Mfg., LaSalle Bristol, Maple City Woodworking, Medallion Plastics, Praxis Group, Precision Painting Group and Topline Counters. At the end of 2019, Patrick had an employee base of more than 7,500 team members working for 57 companies, not including Patrick Distributing or Patrick Design Studio. Acquisitions Have Supercharged Patrick Industries Elkhart-based Patrick Industries has super-charged its growth in the past five years through a series of acquisitions that have made it a top supplier to RV manufacturers.

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