ELKHART, Ind. - IndustryWeek, a monthly trade magazine, has named RV component maker Patrick Industries as its top U.S. manufacturer in its annual list of the top 50 U.S. manufacturing companies. IndustryWeek chose Patrick Industries based on its aggressive acquisition strategy and extreme sales growth.
Patrick Industries, Inc. was founded in 1959 and, after a torrid pace of acquisitions over the past three years, has become a major manufacturer of building products and materials for the recreational vehicle and manufactured housing industries, as well the kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets.
Patrick operates over 60 manufacturing and distribution facilities located nationwide in 16 states. Net sales for 2016 increased 33 percent or $301 million, to $1.2 billion.
Around a decade ago, during the height of the recession, the company struggled as both the manufactured housing and RV markets cratered to their lowest shipment numbers in decades. While the market recovered, the company grew through acquisitions -- 27 from 2010 through 2016, according to Micro Cap Club, at an aggregate purchase price of $330 million -- granting autonomy to acquired management teams.
During that wave of acquisitions, Patrick Industries also implemented a share repurchase program, buying back almost 2 million shares, which peaked at $83.75 in February after bottoming out under $6 just five years ago. They also completed a three-for-two stock split in 2015 that somehow did not visibly affect the share price.
Like so many corners of manufacturing, the RV industry has yet to reach its pre-recession levels. But Patrick Industries planned and implemented, acquired and expanded, all under the watch of a CEO, Cleveland, who at 49 is younger than the company he runs. It might not be a U.S. 50 metronome just yet, but the company is also certainly not a supernova, burning out after a spectacular show.
Patrick’s major manufactured products include decorative vinyl and paper laminated panels, solid surface, granite and quartz countertops, fabricated aluminum products, wrapped vinyl, paper and hardwood profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass bath fixtures, fiberglass and plastic component products including front and rear caps and marine helms, softwoods lumber, interior passage doors, RV painting, simulated wood and stone products, and slotwall panels and components.
In addition, Patrick Industries is an independent wholesale distributor supplying pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics and audio systems components, wiring, electrical and plumbing products, cement siding, raw and processed lumber, fiber-reinforced polyester products, interior passage doors, roofing products, laminate and ceramic flooring, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other miscellaneous products.