THOR Industries is warning that the planned merger of two of the RV industry’s largest parts suppliers could make RVs more expensive to build.
In its newly filed 2026 annual report, THOR specifically names the proposed combination of Patrick Industries and LCI Industries, the parent company of Lippert, as a risk that could further concentrate the RV supply chain.
The concern comes down to competition. If manufacturers have fewer major suppliers to choose from, those suppliers could gain more leverage over pricing.
THOR warns of higher wholesale RV costs
THOR told investors that continued consolidation among major component suppliers could reduce the number of available sources, make alternative parts harder to find, and strengthen suppliers’ bargaining position.
Patrick and Lippert are singled out in the filing as “two of the largest component suppliers to the North American RV industry.” THOR says their proposed merger could lead to increased component costs, higher wholesale RV prices, or limited production.
THOR expanded on that concern in a September 22 investor Q&A, saying a more concentrated supplier base creates risks for manufacturers and RV buyers, including “reduced choice” and “amplified pricing power.”
The company then connected supplier concentration directly to RV affordability.
“A supply base with fewer participants and greater pricing power puts direct pressure on the retail price points our customers can reach,” THOR said.
THOR buys a lot of parts from Lippert
THOR has a large financial relationship with the companies involved.
According to LCI Industries’ 2025 annual report, THOR accounted for 15% of LCI’s total sales last year. Berkshire Hathaway subsidiaries, including Forest River and Clayton Homes, accounted for another 18%.
Patrick also relies heavily on the industry’s largest RV manufacturers. Its 2025 annual report shows that sales to THOR and Forest River combined represented 28% of Patrick’s total revenue.
Between them, Patrick and Lippert supply a long list of parts used throughout modern RVs, including structural, interior, exterior and mechanical components.
Patrick and Lippert say the merger could lower costs
The two suppliers have very different views of the deal.
In their June merger announcement, Patrick and Lippert said combining their operations should create more efficient production and lower costs while helping RV manufacturers address affordability.
They expect more than $150 million in annual cost savings within three years of closing. The companies say those savings would come primarily from purchasing, administrative efficiencies, engineering practices, and supply chain improvements.
Lippert interim CEO Johnny Sirpilla said the combined business could offer a broader and more affordable range of products, while the companies said their expanded capabilities could help manufacturers offer more competitively priced products to consumers.
That creates a clear disagreement over the merger’s likely effect.
Patrick and Lippert expect a larger operation to cut costs and improve affordability. THOR is warning that putting more of the RV component market under one company could reduce competition and give suppliers greater pricing power.
THOR is building alternatives
THOR says it is already trying to reduce its exposure to a concentrated supplier market.
Its latest investor Q&A says the company is combining purchasing across its North American RV businesses to gain more negotiating leverage and encourage additional suppliers to enter categories where manufacturers currently have few choices.
Airxcel, the component supplier owned by THOR, is also part of that strategy. THOR said Airxcel’s share of components used in RVs is growing and that it is considering additional product categories where the company could provide another source of supply.
The affordability issue is already showing up in THOR’s financial results. The company said its largest suppliers have passed along higher costs tied to tariffs and inflation, while THOR has chosen to absorb part of those increases rather than pass the full amount to dealers and buyers.
The merger is still under review
Patrick and Lippert announced the all-stock deal June 30. Patrick shareholders would own about 52% of the combined company, with LCI shareholders owning about 48%, according to the companies’ merger announcement.
Federal antitrust review is still underway. A September SEC filing from Patrick shows that Patrick and LCI voluntarily withdrew their federal premerger notifications on September 4 and refiled them on September 9, which started a new waiting period under federal antitrust law.
Shareholder and regulatory approvals are still required. LCI’s latest filing says the companies still expect the transaction to close in the first half of 2027.
For RV buyers, the disagreement is fairly simple. Patrick and Lippert say combining the companies will create efficiencies that can help lower costs. THOR, one of their biggest customers, is warning that having fewer major suppliers could push prices the other way.
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