Recreational Vehicle Industry Sees Bright Future for 2010
Despite record declines in RV shipment levels for 2009 many RV dealers are optimistic about the future. Inventories are low and RV dealers are placing orders with RV manufacturers to boost depleted inventories to gear up for the spring rush that is expected to hit this year.
Despite record declines in RV shipment levels for 2009 many RV dealers are optimistic about the future. Inventories are low and RV dealers are placing orders with RV manufacturers to boost depleted inventories to gear up for the spring rush that is expected to hit this year.
Well know author and RV expert Randall Eaton, remembers what his dad told him many years ago, “You need to be diversified and put money away for a rainy day”. This is good advice and many RV companies probably wish they were more diversified with cash reserves in the bank. In 2009 the industry witness a number of well-known RV manufacturers go under and just recently Country Coach has closed its doors and a popular travel trailer manufacturer in Canada, Glendale has announced it is filing for Bankruptcy protection.
No doubt 2009 was one of the worst years ever to hit the RV industry in a decade. But with any bad news – eventually comes good news. As the 47th Annual National RV Trade Show opens this week at the Kentucky Exposition Center in Louisville, Kentucky, manufacturers, suppliers and RV dealers will notice a much smaller event compared to years past. But, Optimism is starting to creep back into the industry with many believing the improvement in wholesale shipment levels and more favorable lending guidelines will attract new RV buyers.
Many economists are predicting an increase in overall retail sales to rise 20% to 30% in 2010. Yes, the Great Recession has ended, thank God. Yet, the casualties are still being counted and the damage is staggering. Here are some changes caused by the economic downturn in 2009:
No doubt 2009 was one of the worst years ever to hit the RV industry in a decade. But with any bad news – eventually comes good news. As the 47th Annual National RV Trade Show opens this week at the Kentucky Exposition Center in Louisville, Kentucky, manufacturers, suppliers and RV dealers will notice a much smaller event compared to years past. But, Optimism is starting to creep back into the industry with many believing the improvement in wholesale shipment levels and more favorable lending guidelines will attract new RV buyers.
Many economists are predicting an increase in overall retail sales to rise 20% to 30% in 2010. Yes, the Great Recession has ended, thank God. Yet, the casualties are still being counted and the damage is staggering. Here are some changes caused by the economic downturn in 2009:
- From 2006 through 2008, towable and motorhome manufacturing shed a total of 6,000 jobs, according to the most recent data available from the U.S. Bureau of Labor Statistics.
- Among the manufacturers going into bankruptcy court were Fleetwood Enterprises Inc. (towable division only), Monaco Coach Corp, Country Coach Inc. and Glendale.
- Companies that are no longer in business include Pilgrim RV, Weekend Warrior, Sun Valley and AmeriCamp.
- Amid the manufacturers with new owners are Coachmen (bought by Forest River), Fleetwood RV (bought by a private equity firm), Monaco Coach (bought by Navistar International Corp. and renamed Monaco RV) and Travel Supreme (bought by Jayco Inc. and renamed Entegra).
- Wholesale shipments have plunged by 60% compared to 2008.
History shows us each time the RV industry suffers economically it comes back stronger than before. What will the industry look like in 2010 and 2012? According to Mr. Eaton he believes the industry will mainly focus on three things:
- Light weight RVs
- Green technologies
- More aerodynamic designs to increase fuel economy
Author & Senior Editor
Randall Eaton
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