Rogue Truck gains economic development aid
From our weekly issue dated February 17, 2010
Curry Davis works on one of the first bottom dump units produced by Rogue Truck Body. (Photo by Michelle Binker, Illinois Valley News)
An economic development grant from the county and “the power of compounding“ has a Kerby-based firm moving forward with plans to roll out a new product line and hire more area workers this year.
Josephine County commissioners Dwight Ellis and Dave Toler voted to grant Rogue Truck Body“s request for some $20,000 in economic development funds during the county board“s Tuesday, Feb. 9 administrative meeting. Commissioner Sandy Cassanelli voted against the request.
Rogue Truck Body, owned by Keith & Lana Hill, has been in operation in Illinois Valley for almost 20 years.
The board heard a presentation from Rogue“s general manager, William Moore, following up on an initial pitch that he made in a Jan. 11 letter to Toler.
Moore wrote that during 2006 Rogue had revenues of more than $7 million with a full-time equivalent (FTE) workforce of between 40 and 50 employees. Since then, said Moore, the company“s annual sales have dropped significantly, and its workforce has shrunk to fewer than ten people.
During the Feb. 9 meeting, Toler expressed his support for the request. He stated that Rogue Truck Body (RTB) is at a “really critical juncture right now with their business.“
Rogue is hoping to reverse its fortunes, and could have some opportunity to accomplish that goal.
Moore wrote that the company“s main competitor, Washington-state based Reliance Trailer, has entered into bankruptcy. That company produced bottom-dump trailers, a market that Rogue decided to enter during 2009, Moore said.
Armed with a letter of intent from a California firm to purchase 30 units, Moore approached the county with the grant request.
The units, Moore told I.V. News, are “really big on highways right now. Some of our customers are seeing some federal (American Recovery & Reinvestment) Act money; they“re getting jobs out of it.
“They told us, “We“d love to buy this product from you, but you don“t make it“.“
Throughout the past few months, Moore said, the company has engineered and performed hundreds of hours of AutoCAD design. It also has built the jigs, fixtures and tools needed to mass produce those units, he wrote.
The first units are in production, Moore wrote, but the company is low on cash for material and labor.
Manufacturing the bottom-dumps would require the firm to hire workers for fabrication, production, paint and preparation, assembly, maintenance and clerical functions. Moore projected that the company“s total labor needs could reach as many as 28 FTE employees.
Moore told I.V. News that word of the grant has strengthened Rogue“s ability to gain other assistance through Illinois Valley Community Development Organization Loan Board, and he“s working on an extended line of credit through Home Valley Bank.
Rogue also has secured promise of a $35,000 ARC loan through the Small Business Administration.
“I“ve just been very impressed with the response,“ Moore told I.V. News, “What I“ve seen is the power of compounding. Everybody suddenly wants to play. I feel comfortable with the players who are involved that we can not just survive, but get back in our growth mode.“
News that Rogue will be producing this new product has other firms looking to add to their fleet. “It“s created a new product for us in which there is interest,“ Moore said.
“Other guys,“ he added, “are saying “We hear you“re building bottom-dumps, let us know when they“re ready“.“
Moore wrote that the company projects to sell the bottom-dump trailers for approximately $50,000 per set. He said that RTB revenues could reach $2 million by the end of 2010.
As many as 15 employees could begin working this year, Moore said, including welders, machinists and assemblers. RTB also is working with Rogue Community College to hire welders fresh from that school“s training program.
“The light“s shining on Rogue right now,“ said Moore. “We have to run as hard as we can to make sure that we can leverage every opportunity that we have.“
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