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Old 12-03-2013, 02:54 PM   #1
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RV Industry recovery

Saw this article on Yahoo earlier, which included a quote from Forest River:

http://news.yahoo.com/rv-industry-sh...--finance.html

LOUISVILLE, Ky. (AP) — RV manufacturers expect to pass another milestone in their steady recovery from the recession that landed the industry in a deep ditch.

Led by sales growth for towable RVs and pricier stand-alone motor homes, recreational vehicle makers expect to ship more than 300,000 units to dealers' lots this year for the first time since the economic downturn battered the industry in 2008 and 2009.

Those grim days are now in the rear view mirror. Employment across the industry has rebounded, and consumers who once picked small, no-frills travel trailers — dubbed "recession trailers" — are now trading up or buying larger, pricier RVs.

"We're back to a more normal market where people are stepping up and buying nicer equipped travel trailers," said RV dealer Debbie Brunoforte, who has logged her best post-recession sales year at her lots in Phoenix and Mesa, Ariz.

Shipments from RV manufacturers to dealers — a key measure of consumer demand — are expected to reach 316,300 units in 2013, up nearly 11 percent from last year's total of 285,749, the Recreation Vehicle Industry Association said Tuesday on the first day of the industry's trade show in Louisville. More gains are projected for next year.

"These are good times, you guys, really good times," RVIA President Richard Coon said at the trade show's kickoff event Tuesday. "Business is good."

Through October, 2013 shipments were up nearly 13 percent from the same period last year, the group said.

Indiana is the manufacturing pacesetter, accounting for 83 percent of RV production in 2012. Oregon, California, Iowa and Michigan were next, each with a sliver of output.

Next year's overall shipments are expected to rise another 6 percent, to 335,500 units, putting production in the neighborhood of 2007's total of 353,400.

It's a big turnaround from 2009, when shipments sank to 165,700 units amid weak demand and dried up credit that left dealers' lots filled with the hulking vehicles. Some manufacturers closed their doors, and those that survived cut their workforces.

Now, easier credit is helping fuel the comeback as dealers obtain financing to fill lots and consumers get loans to drive away with RVs bound for campgrounds or tailgates.

"It's back at a point where it's not too easy, it's not too tight, it's about just right," said Doug Gaeddert, a general manager with Indiana-based RV maker Forest River Inc.

Business conditions are so good the biggest worry seems to be a repeat of the partial government shutdown in October if Congress can't reach a budget accord early next year.

"That impacted this business," Coon said. "Traffic at dealerships slowed way down. Let's hope they're smart enough not to do that again."
Pent up demand and favorable demographics also are aiding sales, as the industry's core Baby Boomer base heads toward retirement. The industry says its focus on the 30-to-49 age group has paid dividends, with younger families entering the market for towable RVs attached to pickups or hitched to other vehicles.

Stand-alone motor homes, which took the biggest hit from the recession, are also showing signs of a comeback. Through October, motor home shipments for the year were up 36 percent from the same 10-month period last year, the RVIA said. Shipments for towables were up 10 percent compared to a year ago.

Motor homes are expected to reach 12 percent of all shipments in 2013 and 2014, up from 10 percent in 2012.

Towables cost between $8,000 and $95,000, with an average price of about $29,000, according to RVIA. Stand-alone motor homes range from $45,000 to $1.5 million for top-of-the-line, bus-like vehicles. The average price is about $131,000 for the amenity-filled moving homes.


At this week's trade show, RV makers showed off new models to dealers lookingto place orders for next year. The trend is toward smaller, lighter-weight RVs that can be towed by more vehicles. Those models also result in slightly better gas mileage, with some smaller motor homes approaching 20 miles per gallon.

The industry is much leaner now with 70 manufacturers — nearly a third less than before the recession.

"Those of us that survived certainly are reaping the rewards now," said Derald Bontrager, president and CEO of RV maker Jayco Inc., based in Middlebury, Ind.

Jayco has seen broad sales gains in its product lineup, including for its motor homes, he said. With the upswing in shipments, Jayco has hired more workers. Its workforce is about 2,000, compared to 1,100 during the depths of the downturn but short of the 2,500 before the recession.

Industrywide employment — including manufacturers, suppliers, dealers and service departments — is estimated at 496,000, according to RVIA. Employment peaked at about 550,000 in 2007, then plunged to about 280,000 in 2009.
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Old 12-03-2013, 03:09 PM   #2
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Prices will be on the rise now.
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Old 12-03-2013, 03:40 PM   #3
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Prices will be on the rise now.
Isn't good times and competition supposed to be good for consumers,hahahaha
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Old 12-03-2013, 03:50 PM   #4
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Prices will be on the rise now.
WHEW...glad we took a chance & picked up the "Retirement Casa" a couple of months ago instead of waiting another year...looks like we dodged the price increas bullet (and YES, our unit was deeply discounted - almost 38% off MSRP
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Old 08-23-2014, 09:28 AM   #5
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Just read another article on how much better Winnebago was doing. The article had lot's of stats in it, but the thing that struck me the most (and I don't guess I thought about it)....was that they said about the retiring baby boomers fueling the RV upswing (quoted below)

It would be easy to dismiss this as the latest boomlet in an industry famous for its cycles, were it not for a demographic tidal wave—the so-called silver tsunami—that has already begun: The retirement of America’s 76 million baby boomers. The largest group of U.S. retirees in history has entered its prime RV-buying years, and Winnebago thinks it has precisely the right mix of nostalgia, adventure, and cushy comfort they’re yearning for.

Here is a link to the entire article:

Winnebago rolls again - Fortune
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Old 08-25-2014, 06:23 AM   #6
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Thanks for sharing the article.

I am not surprised at all by this. The economy is so hot right now. People have so much money to spend and want to get this whole recession behind them.
I am still waiting to take delivery of a pop up that is sold out within 500 miles of Boston. You visit dealers and there is just nothing on the lots anymore. They are selling these RV's like crazy. All the dealers can do is offer you a factory order. I had to buy my unit totally unseen. Short of jumping on a plane to find the pop up someplace, I was just not able to look at a single unit.

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Old 09-01-2014, 07:10 AM   #7
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I honestly don't think it's that people have a lot of money, I think it's that people can get financing.
My friend's company (Century Financial) literally started the housing crash, and he saw it and got out long before it hit the fan.
I hope the RV market isn't flooded with repos in a year or so. It seems like it may go the same way looking at the numbers...
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Old 09-01-2014, 07:18 AM   #8
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I honestly don't think it's that people have a lot of money, I think it's that people can get financing.
I wholeheartedly agree Baron.
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Old 09-01-2014, 10:47 AM   #9
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Vinmaker, the RV lots out here in the Northwest are
loaded with some of last years models and many of this
years as well.... Just about every month there are large
sales at Malls and Fairgrounds with easy financing....The
dealer near us has a sign outside the front door which
states they will get you into the trailer you want no
problems guaranted financing...
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Old 09-01-2014, 11:09 AM   #10
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Originally Posted by chuckw5kav View Post
Vinmaker, the RV lots out here in the Northwest are
loaded with some of last years models and many of this
years as well.... Just about every month there are large
sales at Malls and Fairgrounds with easy financing....The
dealer near us has a sign outside the front door which
states they will get you into the trailer you want no
problems guaranted financing...

You are definitely in a totally different market then. Maybe it is the drivers causing the problem. Maybe your closer to the factories than I am here on the east coast. If you look at auto sales, RV sales, and boat sales; the numbers are thru the roof. There are many models of cars out there are is such short supply that people cannot even find them. There are waiting lists to even order them. The RV lots around here are not all that full either because people are buying them so fast the dealers just cannot keep them on the lots.

It could be financing but I think people are just flush with money now. They are looking for an outlet to spend it on and have decided to start buying toys again.

All I know is being in the position of a buyer at the moment is not good. It is a total sellers market with dealers basically naming the price. I could not find the pop up I was considering withing 500 miles of me. I had to buy the thing based on a brochure picture.

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Old 09-01-2014, 08:11 PM   #11
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Well Vinmaker I'm about 2200 miles and a
couple of mountain ranges from Indiana even
thought we do have one company that makes
trailer's both in Indiana and Oregon and one
more in Oregon that make million dollar
coaches made out of bus's.....

I see it as more financing, as one person said
on the GS site " I'll finance my fun and if I
lose my job oh well the bank can have it back"
Ugh
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Old 09-01-2014, 08:34 PM   #12
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It's good that the market is booming, at least for some. So is the oil industry that I'm in. But, I've been doing this a good long time now, and when it booms like this, and pay checks are down right rediculous, it scares me. The bigger they are, the harder they fall. When it all crashes again, and IT WILL, it'll be way worse than last time. I've been fortunate, but at the same time, I live a humble lifestyle, as I've seen what can happen to those same people with healthy paychecks when it crashes; Toys for sale cheap, cashing in 401k to survive, etc etc. Happened in the 80's, 90's and during the Horizon incident. These young guys in business now haven't got to experience making $150k plus one day, and going to the house kicking rocks the next.
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