EarthCruiser, a Bend-based company that created high-end custom adventure vehicles, announced Wednesday it would be closing its doors for good after 16 years in business.

Company founder Lance Gillies, who moved the company from Australia to Oregon in 2013, said in a statement that the company’s final day of business was April 25.

“Although this decision marks the end of an era, we are proud of our legacy and impact on the world of travel, automotive innovation, and overlanding,” Gillies said.

It was one of many companies that capitalized on a pandemic-induced craze for new adventure vehicles, something to replace the Winnebago-style recreational vehicles popular in previous decades.

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Living and recreating in built-out vans had been popular for years, but picked up tremendous steam during the COVID-19 pandemic. What had been a niche lifestyle for outdoor enthusiasts soon became marketed to the masses on social media as an adventurous yet comfortable lifestyle, something entire families could participate in.

Seeking an escape from quarantine life, many people bought or converted vans into outdoor homes, complete with insulation, water tanks and other amenities, and many companies of all sizes cropped up to meet that demand.

EarthCruiser, in particular, stood out for its large, off-grid vehicles designed for spending weeks in remote corners of the world. Each cruiser was custom-built for the buyer, and some models cost as much as $600,000, according to the company’s website.

But since fears surrounding the pandemic have died down, and more people returning to work in-person, demand for these specialty vans are on the decline.

EarthCruiser representatives said in a written statement that decreased demand, combined with supply shortages and high interest rates, made it difficult for the company to survive.

“Demand soared for EarthCruiser products throughout the pandemic, but scaling a business of such complexity is neither easy nor particularly fast, especially in Central Oregon, where operating costs are high and skilled labor is hard to come by,” the company told OPB.

The company also had multiple reductions in staff before closing its doors. EarthCruiser had more than 50 employees at its peak, but only had around 14 by Wednesday’s announcement.

Steven O’Brien lives in Bend and worked at EarthCruiser for two years. He said despite the high quality of the company’s product, it became increasingly difficult to stay profitable. Supply chain issues often meant it would take up to two years for a vehicle to be completed.

“There were some struggles and some big hurdles that (the company) had to overcome,” O’Brien said. “One thing goes wrong and it’s this big chain reaction.”

He eventually left the company when he felt it would not be able to overcome some of its biggest struggles. He said it was not an easy decision, because he loved working there, and the family atmosphere its leaders had cultivated.

“I probably cried for like an hour after I quit,” O’Brien said. “Seeing it be gone is pretty tough, and imagining what those guys are going through right now — I don’t want them to be in a tough spot at all.”

Remaining companies look at adapting

Many van outfitters are now adjusting their models in order to compete in a crowded marketplace. Those looking to buy vans have many options, and used vans are especially cheap.

Andre Landau was one of those who started his van conversion business during the pandemic. He established his company, The Van Life Collective, in 2020 in Hood River after constructing and selling some vans in his spare time.

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“It was a wave that was really the perfect timing with what I was trying to do in my life,” Landau said.

Other companies cropped up as well. Landau said there are three van outfitters within a two-block radius of his Hood River shop. There are dozens more throughout Oregon, a popular destination for outdoor enthusiasts.

And demand for Landau’s work has slowed down too. The Van Life Collective is now mulling where it goes next, whether it’s truck campers, traditional RVs or something else entirely.

Adding to the challenges is the number of vans available on the market. Not only has demand gone down for new custom vans — many owners are now trying to sell ones they purchased during the pandemic, flooding the market with a cheaper product, Landau said.

“They have realized that they don’t really need the van as much as they thought they did or they’re back to traveling the old-fashioned way,” he said. “Lots of people are just ready to move on.”

News Source : https://www.opb.org/article/2024/04/27/earthcruiser-closes-business/