During a third quarter call with investors, Lippert Components Inc. (LCI) CEO Jason Lippert said there is a possibility for its new company brand, Furrion, to double in the next few years.
Lippert said the aftermarket business harnessed through Furrion has led Lippert’s aftermarket segment to be one of the company’s fastest growing areas. The company plans further investments to accelerate Lippert’s diversification strategy.
“Beyond North America, we plan to utilize Furrion in broadening our offerings in the international markets by leveraging our existing global customer relationships,” Lippert said. “This will enable our company to unlock further market share, especially in the European and Australian caravan industries.”
Lippert said Lippert teams already had longstanding ties with Furrion management and research and development teams, enabling a smooth and fast transition. Furrion was acquired by LCI in early August.
“Since the acquisition closed, we have already kicked off a few exciting projects, which we will be able to discuss in further detail in the coming quarters,” Jason Lippert said. “We are incredibly excited to welcome Furrion to Lippert family, and I look forward to them helping us turbocharge innovation to further transform the industries we serve.”
In response to a question, Jason Lippert said the largest difference in working with Furrion now is having “total control over the entity.”
“Prior, we were strictly sales and distribution, so we did all the warehousing, logistics and sales work,” Lippert said. “We had a little input on product, but not much. And today, we have 100% control over product, which is the big piece of it.”
Lippert said controlling innovation and research and development funding enables management opportunities to design based on customer feedback.
“We feel we can double that business in the next few years, strictly because competition is in a good spot for us,” Lippert said. “The competition is relatively weak in that space. There is a lot of opportunity. There is not a lot of innovation in that space. And Furrion is the clear innovator in that space. And there is a lot more they can do with appliances and electronics.”
