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N.D. boom benefits RV, vehicle dealers

Candace Chase | Hagadone News Network | UPDATED 12 years, 11 months AGO
by Candace Chase
| December 17, 2011 9:24 PM

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<p>Salesman Brad Dykes unlocks the door of a Wildwood Travel Trailer at Gardner RV & Trailer Center in Kalispell on Friday afternoon.</p>

As Flathead Valley workers rush to North Dakota’s thriving oil-based job market, they help the local economy, sometimes before they send back their first paychecks.

Recreational vehicle dealers such as Todd Gardner of Gardner RV & Trailer Center have profited by selling them units for housing once they arrive in lodging-short towns such as Williston.

“It started a couple of years ago. A lot of our friends and customers have gone over there,” Gardner said. “It’s been a steady part of our business.”

Some recent classified ads in the Williston Herald confirm the sky-high housing costs. A three-bedroom, one-bath house located 33 miles north of the oil fields was advertised for $2,400 a month while another three-bedroom a little closer fetched $3,500.

Even at these prices, just a few houses and apartments were advertised.

A recreational-vehicle lot with full hookups was listed for $1,000 a month, providing an option for workers waiting for better winter housing to open.

According to Gardner, workers buy a wide variety of RVs to cope with the housing shortage.

“Depending on the customer’s financial situation, some buy something as cheap as they can, just to get over there,” Gardner said. “Other guys buy real nice fifth wheels or travel trailers.”

He said the upper-end models have better insulation, but all recreational vehicles require skirting on the bottom to keep in the heat in northern climates. Water lines must be kept warm.

“It is an RV and it’s winter,” he said. “It’s cold over there and it’s not going to be a house. You’re not going to have two-by-six walls.”

Because of all the economic activity and the many RVs, Gardner took a trip to North Dakota to check out the possibility of opening a store there. He found a demand for a range of services.

“We’ll probably do some mobile service, a lot of parts sales as well as new units,” he said. “We’re looking at the opportunity right now.”

On his visit to North Dakota, he said he spoke with many of the existing RV businesses. Gardner said it was very encouraging.

“We realize its a boom and booms do end but it looks good and we’re positive about it,” he said. “We’re being cautious.”

Mark Weed of Mark Weed Auto Sales has experienced a different impact on his Evergreen used-car business. He said he has had an unprecedented run of people wanting to sell him their cars.

“A lot of them are previous customers who are going to North Dakota and need some cash,” he said. “A lot of times I’ll buy back my trade or an older vehicle so they can get a little cash to hit the road.”

Weed also has sold some cars over the Internet to people in North Dakota where the oil boom has pushed prices higher than what previously owned vehicles command in the Flathead Valley.

“I’ve had people hop on a train and I met them in Whitefish and sold them a vehicle. Our prices are 10 to 15 percent lower.”

Weed, who has handled RVs on his lot, said he has gotten inquiries about RVs for living quarters in the oil patch. He has heard about people sleeping in their pickup trucks because there’s no housing when they first arrive.

“A studio apartment is like $1,500 a month,” he said. “It’s just crazy — supply and demand.”

He said the RVs seem like a good solution but some people he knew got to North Dakota and could find no RV parks with vacancies.

Gardner agreed that has been a problem. On his visit, he observed development of RV parks in response to the soaring demand.

“Our customers found places to put them,” he said.

Weed said he has also heard that development continues to add housing options in North Dakota. Like Gardner, he personally knows many people who have had to leave the Flathead to find employment.

“It’s almost sad,” he said. “My buyers are middle class. My rigs are $10,000 and under. That’s a part of the valley that is really going away.”

According to Weed, his business has done well this year not because of more buyers but because the competition has gone down. He said some who went out of business were his friends who had been in car sales for 15 to 20 years.

“Actually, I’m having a pretty good year,” he said. “I’m up quite a bit year over the last couple.”

Weed called North Dakota a bright spot. He looks at the positive side of people leaving here to get jobs there.

“I’m sure a lot of people are going to get their credit healed and send money back to the Flathead,” he said.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com .

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