Drew should Diversify away from Manufactured Homes Components

Stock analyst seekingalpha.com says the two sources of revenue for component supplier Drew Industries are manufactured homes (MH) and recreational vehicles (RV), and suggests the company move away from the MH industry because it does not offer future growth. Noting half of the RV revenue derives from sales of chassis and chassis parts, the RV industry has been in an upswing the previous two years, but the commentary says the industry’s future beyond five years may be limited—it does not see the RV trend being popular with the younger generation. The production of components for buses, modular homes and other types of trailers will continue to grow for Drew. MHProNews has learned Drew’s purchase of Midstates Tool and Die Engineering will increase diversification of revenue source, as Midstates has a Military Classified Document Clearance to produce machines for U. S. military facilities.

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