RVs on the Road back to Success
Wed Jan 6, 2010
Author: Marilyn Odendahl
Source: etruth.com
Wholesale shipments of motorhomes have finally outpaced the prior year, putting an especially hard-hit segment of the recreational vehicle industry into positive territory for the first time since October 2007.
The number of motorized units sent from manufacturers to dealers' lots rose 50 percent in November compared to November 2008 totals, according to data released by the Recreation Vehicle Industry Association on Tuesday. Year-to-date, 2009 motorhome shipments trail the previous year by 58.1 percent.
In addition, the figures show that shipments are "slightly greater" than retail sales, said Mac Bryan, vice president of administration at the RVIA. That is good news, he said, since the upswing indicates that not only is financing easing both for wholesale and retail but also that dealers are feeling confident sales will improve and they will need to have more units in stock to meet demand.
Motorhome shipments are climbing partly because the totals recorded during the winter of 2008-09 were so bad, it would be difficult to do worse. Still, coupled with the turn in towable units that came in August, industry leaders are becoming more comfortable.
"Each month that we're positive, there is less likelihood of a double dip," Bryan said, referring to the potential for shipments to decline again. "Is it still possible? Of course. ... It certainly appears the economy is recovering in a consistently slow but steady path."
Towables continued to post strong numbers, with November shipments trumping November 2008 totals by 140.4 percent. However, year-to-date, the entire industry has shipped 151,700 RVs, down 34.4 percent from the 231,400 sent through November a year ago.
Richard Curtin of the University of Michigan Consumer Survey Research Center expects RV shipments to reach 159,500 by the end of 2009, which will be the lowest yearly total since 1982.
Motorhome dealer Hank Schrock, owner of Total Value RV of Indiana in Elkhart, said 2009 sales at his business have been stronger than 2008 and he is "kind of optimistic" and "looking forward" to 2010. Yet he is concerned that if consumer demand overwhelms manufacturers' ability to build units, buyers will possibly leave the RV market and purchase another discretionary item like a pleasure boat.
Bryan and Schrock contend the motorhomes will take several years before the units reach the shipment levels they previously enjoyed. Currently, nine towables are being sent to dealers for every one motorhome, Bryan said, noting at one time, shipments were evenly split between the two segments.
As the national rebound begins, RVs seem to have assumed their traditional role of leading the country out of the recession. For economists who said the industry would lag during the recovery because consumers would not have the money to buy a motorhome or a travel trailer, Bryan counters they did not understand the primary demand.
Consumers may be buying less expensive models, Bryan said, but they still want their RVs.
