RV Industry Shows Modest Gains for 2011
Will 2012 Be a Breakout Year?
The less then robust economy has really hampered the RV industry’s ability to make a strong comeback. 2011 shipments from RV factories to dealers were up only about 2% to 3% from last year’s shipped units. A bright spot for the industry was in 2010 when the RV industry showed a 44% gain compared to 2009.
What does 2012 future look like for the RV industry, dealers and consumers? Let’s start with consumers first. We all know 2012 is an election year and typically during an election year the economy is somewhat stagnate. Most economists are not predicting any major breakout in job growth so unemployment will probably remain in the 8% to 9% range.
The good news is the stock market is making a comeback and many retirees have taken the necessary steps to protect their investments. Most have put off purchasing an RV for a number of years and are now starting to consider buying an RV. Younger buyers are able to secure financing for less expensive RV models with the ease of credit regulations. All in all we at JR Consumer resources are predicting modest gains for 2012 but, certainly not a breakout year as the industry is hoping for.
RV dealers that have survived the last four years are in a stronger position and will be able to capitalize on a growing market share as the economy continues to improve. RV dealer inventories are improving with dealers being able to secure better financing. One trend in the industry is for towable units. Most RV dealers have shuffled their inventories to promote travel trailers, fifth wheels and pop-up tent trailers while scaling back their inventories for expensive Class A motorhomes.
Another popular trend within the industry is for smaller motorhomes. Both Class C and B motorhomes are seeing an increase in sales along with conversion vans. Compared to Class A motorhomes these models are less expensive and provide a certain level of luxury without the big price tag.
Many RV dealers that we have spoken with while research the industry for our New 2012 RV Comparison Guide have indicated to us that with improved financing options for consumers and more availability with larger inventories they are confident sales will continue to climb as the economy slowly improves.
Employment within the RV industry is also on the rebound, factories that closed during the recession are now re-opening. Other RV companies are re-hiring employees that were laid off during the peak of the recession and increasing their workforce to meet demand. It is estimated that around 325,000 to 400,000 people are employed within the industry an increase of 45% since 2008.
Bottom line is this – 2012 will show modest gains for the RV industry. Consumer confidence is still a little shaky but improved financing options for consumers and larger inventories will attract RV buyers as the industry continues to build and produce innovative products that are more fuel efficient with GREEN technologies and stylish designs.
Senior Editor and President
Randall Eaton
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