Inside Indiana Business: THOR Expresses Concerns Over Proposed Patrick-LCI Merger
The following is an excerpt of an article from Inside Indiana Business with Gerry Dick.
Elkhart-based THOR Industries Inc. is raising concerns about the proposed merger of two of the RV industry’s largest suppliers, warning that further consolidation could increase component costs, reduce competition and add to affordability problems already weighing on RV sales.
Patrick Industries and LCI Industries, both also based in Elkhart, announced their proposed merger in June. THOR, one of North America’s largest RV manufacturers and a major customer of both companies, identified the combination as a potential business risk in its 2026 annual report.
The concern comes as THOR continues to absorb higher costs from its largest suppliers. The company said suppliers have passed along rising input costs tied to tariffs and broader inflation. Combined North American RV gross profit margin fell to 8.3% in fiscal Q4 2026 from 12.5% a year earlier.
“We have so far made a deliberate choice not to pass the full burden of these rising costs on to our independent dealer partners and retail customers,” THOR said in its Q4 2026 investor Q&A. “The cost of that choice is visible in our results. We are absorbing a meaningful portion of these material cost increases at the expense of near-term margin because we believe that it is the right choice while we work to make our margins more resilient.”
LCI supplies doors, towable frames, slideout mechanisms, axles, upholstered furniture and other products. THOR accounted for 15% of LCI’s consolidated sales in 2025. Patrick also counts THOR among its largest customers. Sales to THOR and Forest River RV together accounted for 28% of Patrick’s consolidated sales in 2025.
Click here for the full report from Inside Indiana Business with Gerry Dick.
