Outlook for RV Market Improving, Says RVIA
The sluggish recreational vehicle market may see an improvement in sales, as wholesale shipments increase and the economy continues to strengthen, according to the Recreational Vehicle Industry Association (RVIA).
The sluggish recreational vehicle market may see an improvement in sales, as wholesale shipments increase and the economy continues to strengthen, according to the Recreational Vehicle Industry Association (RVIA).
At the RVIA Board of Director’s meeting in September, RVIA Vice President of Administration Mac Bryan provided a cautious, yet upbeat, view of the RV market’s improvement.
He cited the RVIA’s Fall 2009 issue of RV Roadsigns, in which Dr. Richard Curtin forecasted that wholesale shipments of RVs will reach 146,200 units by the end of this year, and that shipments are expected to increase 27 percent to 185,800 units in 2010. This forecast, along with other factors, including a strengthening stock market, attractive interest rates, low inflation rates, and improved business and buying conditions, will help the RV market recover from its sales slump, Bryan said.
Another crucial component working in the industry’s favor is the continued popularity of the RV ownership and travel among consumers, according to Bryan.
“The appeal of the RV lifestyle will help overcome economic barriers,” he said. “The basic demand for RVs is rooted in the appreciation that consumers have for the freedom, flexibility and comfort that RVs provide as they enjoy the nation’s great outdoors.”
In addition, August is usually an off month for the recreational vehicle (RV) industry as rentals and sales decline after summer vacations. However, RV companies are seeing stronger than usual sales, which generally indicate that the following year will gain momentum.
The Pedata RV Center in Tucson, Ariz. has seen interest from consumers in August, which leads them to believe 2010 is going to be a good year for the RV industry. Camping World RV in Ft. Meyers, Fla. saw a 15 percent increase in sales, while Nolars RV Center Inc. in Denver was up 22 percent from last August.
“It’s about family, lifestyle and adventure,” said Gerard Pedata, general manager of Pedata RV Center in Tucson, Ariz. “RVing is a way of life, a time for bonding and a time for seeing our country. How could that ever disappear?”
Despite the optimism from dealers, Bryan cautioned that the recovery in RV sales will likely be slower than in the past as consumer demand remains sluggish due to weak consumer confidence, continued job losses, smaller income gains and declines in household wealth as well as the need for consumers to restore savings.
“It is simply going to take longer for consumers to reestablish their economic footing as we emerge from this recession,” said Bryan. “However, given the positive signs we are now beginning to see in the RV market and the strong commitment of consumers to the RV lifestyle, the prospects for the RV industry are becoming more favorable.”
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