RV Industry Grinds To A Halt

[nvs4602]

The boom is over. High gas prices and rising itrest rates to blame.

2 plant closures and over 300 layoffs coming in September.


https://www.zerohedge.com/economics/...-industry?s=01

[TitanMike]

Originally Posted by nvs4602

The boom is over. High gas prices and rising itrest rates to blame.

2 plant closures and over 300 layoffs coming in September.


https://www.zerohedge.com/economics/...-industry?s=01

Two comments I picked up from the article. One was that "dealers aren't buying what we're producing" and sales and "fluctuations in interest rates, gas prices, inflation, and consumer sentiment"

Could it be that the "crap" the industry has been producing over the last couple of years be actually catching up with the manufacturers?

[Ballistic]

Along with the above points, there is also the fact of many people are required to return to the office. Those that have returned are taking on multiple responsibilities/positions due to the economic downturn, so there isn't any more time travel while working from an RV.

If any RV manufacturer is aware enough to gain a "take-away" from this situation it would be to differentiate themselves by increasing outgoing quality and/or warranty claims.

[SacRV]

Personally I’m happy to see the slow down and downsizing. We’d love to buy a second trailer, a smaller one for shorter trips. Fortunately, we have the luxury to wait a year or more for the bottom to fall out.

[Reverse_snowbird]

One thing missing from those reports is the class of rv manufactured in those plants. Are people not buying large vs small trailers or class A or B's? Also, lack of parts makes manufacturing difficult. Dealers may not be ordering because of the lack of and cost of shipping.
They also don't mention lack of affordable campgrounds.

Too many variables and this may be a more 'return to normal' situation. That doesn't make a good headline though.

[Ken-m]

Originally Posted by Reverse_snowbird

One thing missing from those reports is the class of rv manufactured in those plants. Are people not buying large vs small trailers or class A or B's? Also, lack of parts makes manufacturing difficult. Dealers may not be ordering because of the lack of and cost of shipping.
They also don't mention lack of affordable campgrounds.

Too many variables and this may be a more 'return to normal' situation. That doesn't make a good headline though.

They did say Keystone , so that tells me for that plant it's the lower tier . When I hear Keystone I think , worse than average .

[TheWolfPaq82]

Just got back from a trip to Branson MO. and all the RV dealers I passed are NOT hurting on Inventory now. Haven't seem as many RV's on the lots these past few years.

[fipntdot]

Gas prices and interest at the beginning of summer had to hurt. Now that gas might be going down, not much more summer left. We were looking last year and there was hardly anything on the lot. Bought early this year. Lucky to buy the truck three years ago. Hardly anything on the dealer lots to pull with in our area.

[Backcountryboondocker]

Of the two Keystone plants closing, one of them is/was for their Laredo 5th wheel trailers, of which the Laredo line was apparently already ceased production earlier this year. The other plant probably was also associated with the same trailer.

While rv sales are probably slowing, becoming stagnant, and there might be consolidation/closures, this particular closure is probably more of consolidating models. No different than auto manufacturers stopping production of certain vehicle models.

[Reverse_snowbird]

Originally Posted by fipntdot

Lucky to buy the truck three years ago. Hardly anything on the dealer lots to pull with in our area.

Now that's something to consider. If you can't buy a truck to pull a trailer, that would shut down sales. Trucks are almost impossible to find around Houston.

[RedRoverComeOver]

Probably can merge. https://www.forestriverforums.com/fo...ff-254285.html

The graphic from the article was for shipments since they started cranking them out last year due to the lock down of 2020.



..."Came back from the NC coast and again noticed the sea of RVs on the lots still sitting there like back in April. Wasn't a camping trip and enjoying home comforts.

The current economic disaster will get worse as inflation continues to rise leaving people to ride out the recession through next year. Don't think people will be willing to borrow with increasing interest rates either.

Guess those of you complaining about crowded sites may get your wish after all."

[herbike]

It is inflation at it's best!
Those of us that have lived long enough to have experienced the inflation of the 70's and 80's, we know what it is like. Buckle down and ride it out.

There was a time then that you couldn't get a price on a John Deere tractor until it arrived at the dealer, if that wasn't fun.

This time we are seeing high insurance costs here in Washington state, thanks to our insurance commissioner. He decided it was a covid emergency so he changed the way they calculate your premiums. That's only worsened by the great fuel prices which our dictator plans to raise by the end of the year.

I'm getting off subject, sorry. Just got our ins bill

[MevetS]

Walking a fine line while the emperor has no clothes, but no one cares to see. I'll just have to buy a pair of rose colored glasses, so that what I see appears normal.

[HelG]

Meanwhile I am sad for people being layed off, I feel this downturn may help us in the long run. RV manufacturers may be able to reconsider their quality assurance practices. Most likely not right away, as they will respond not by upping their quality but by looking for even cheaper products.

But that's so typical for shortsighted industries. Unnatural upswings will cause natural downswings. Selling more is not always good.

[00buck]

I've noticed exceedingly full lots and dealers using offsite lots for storage. Boom is always followed by bust. With the insane prices on trailers and motorhomes, high interest rates, crowded campgrounds and the increase in site rental costs, it's no surprise that the luster has begun to fade. I expect there will be some good deals to be had by the people with cash to buy something used.

[nvs4602]

Originally Posted by 00buck

I've noticed exceedingly full lots and dealers using offsite lots for storage. Boom is always followed by bust. With the insane prices on trailers and motorhomes, high interest rates, crowded campgrounds and the increase in site rental costs, it's no surprise that the luster has begun to fade. I expect there will be some good deals to be had by the people with cash to buy something used.

Sad thing is so many people will be upside down on their loans, that they won't be able to sell without a huge loss. They won't be able to afford to keep or sell it.

[00buck]

Originally Posted by nvs4602

Sad thing is so many people will be upside down on their loans, that they won't be able to sell without a huge loss. They won't be able to afford to keep or sell it.

Good point. I think it will extend to vehicles as well. When the market returns to normal, the people who paid crazy prices for used vehicles will have to hold on to them until the wheels fall off. The same this happens during housing booms. The people who bought my last house paid $25K more than the asking price. A year and a half later, the bottom fell out.

[NMWildcat]

Originally Posted by nvs4602

Sad thing is so many people will be upside down on their loans, that they won't be able to sell without a huge loss. They won't be able to afford to keep or sell it.

Sad? Predictable. Folks who ignore history will repeat it.
I have a couple of friends who bought RVs at the heigth of the market. They were warned by many sources, but chose to do so anyway. I don't feel sorry for them.

[Jrb06]

Just come back from Amish Family RV and did tours of Cedar Creek and Riverstone plants. Both said one of the biggest problems is getting transport drivers and dealers not buying inventory. The delivery lots and factory lots were full and most of them are ordered units with names on them. Delivery to Canada is a problem also due to the mandates from COVID a lot of the transport drivers will not or cannot go into Canada.

[Ken-m]

So the manufacturer is having problems getting transport drivers to deliver, but in next sentence you state the dealers aren't buying ?


I just got back from a trip in Michigan , every dealer I passed had a unbelievable amount of inventory. I swear 1 had 50 acres of rigs .