Airstream to start layoffs

[nvs4602]

I know this is Forest River forum but... as a sign of a down turn in the RV market. Airstream is reportedly laying off back to 7 years of seniority at their Jackson Center, Ohio location.

That's sad because it's shows how bad things are getting. That they are laying off even more people then just were hired for the RV boom.

 

[FlagstaffBen]

Surprised?


New RV shipments and sales are down year over year, 2022-2023, by over 36%. Go 2023 to 2021 and its closer to 50%. For 2024 they are projecting sales numbers which are comparable to 24 years ago.

 

[BehindBars]

If RV sales are down, maybe people are finally fed up with the poor build quality, and are voting no with their wallets. . . ah, that’s probably just wishful thinking on my part.

Sometimes when sales drop, it’s blamed on low demand. Maybe, however, it’s because manufacturers are not offering the products people want.

 

[kenandterry]

Not sure if this a COVID related issue……but I’m glad I bought my 2018 Sunseeker when I did. I’m not going to mention how good the build quality has been…….but it’s completely at the other end of the “poor build quality” spectrum.

 

[D W]

I honestly don't think it has anything to do with "quality". If that were the case, these lay-offs would have happened years ago. I believe it's more of a "correction" that happening in all businesses nationwide. Lay-offs are happening in all venues. Trident Seafoods here in Alaska recently announced massive lay-offs and an intended liquidation of a sizable portion of its assets. Other industries have also had lay-offs or imposed hiring freezes. Revenue is starting to dry up. To the contrary, McDonald's, Burger King, Taco Bell, Wendy's and KFC are still hiring at $22-$25/ hr. Sign of the times, I guess.

 

[Reverse_snowbird]

That's sad because it's shows how bad things are getting. That they are laying off even more people then just were hired for the RV boom.

The rv industry always has been a 'feast or famine' market.

 

[clawsonm]

I know this is Forest River forum but... as a sign of a down turn in the RV market. Airstream is reportedly laying off back to 7 years of seniority at their Jackson Center, Ohio location.

That's sad because it's shows how bad things are getting. That they are laying off even more people then just were hired for the RV boom.

No surprise for what they are charging for these things.
Obscene profiting everywhere

 

[clawsonm]

Buffet. BH

 

[clawsonm]

if rv sales are down, maybe people are finally fed up with the poor build quality, and are voting no with their wallets. . . Ah, that’s probably just wishful thinking on my part.

Sometimes when sales drop, it’s blamed on low demand. Maybe, however, it’s because manufacturers are not offering the products people want.

 

[clawsonm]

Look at the cost of a tow vehicle now. Even a couple years old. Ridiculous!

 

[bikendan]

Buffet. BH

Neither Warren Buffet or Berkshire Hathaway have anything to do with Airstream. Thor Industries owns Airstream.

 

[MGD1961]

Overall. The unemployment rate is still lower than it has ever been. That said people panicked with covid and suddenly had some money and spent it. A bunch on RVs. Now the money is gone and they really didn’t want a camper anyway. The used market is getting flooded so new orders are down.

There is now and always has been a cyclical flow in the rv industry just like every other industry. This is a market correction as someone else mentioned.

This too shall pass

 

[D W]

Going back to 1992:

"It's the economy stupid"

 

[TitanMike]

Just read that FR is laying off too.

Locally a few RV Dealers are now vacant lots with "permanently closed" notes when listed online.

The RV industry enjoyed a boom with the Covid "work remotely" fad. For the next few years there will be enough used RV's to satisfy the market, assuming the "Covid Built" ones are still in one piece

Another factor is the current interest rates. Unless one has money falling out of their pockets the cost of borrowing can be as high as many credit card rates.

Those that are profiting from "Inflation" will be slow to reduce the cost of borrowing and for manufacturers of essentials (RV's ain't), when their costs go down do you think they'll be quick to lower their prices?

 

[Oaklevel]

No surprise have been expecting this the COVID created boom is over and too may new and used units on the market................ The RV dealer lots are full.

The normal ups and downs of the RV industry. Been like that for the 40 years I have been involved with RVs.

 

[Nick Danger]

The "cost of living" has increased by about 40% in the last 2 years by my calculations (nothing scientific but I do have limited experience in this field). That has a direct effect on "discretionary spending" which RVs and leisure spending falls into.

I have noticed the "slow down" in all industries I'm associated with. Demand has dropped because of inflation. I also assume that the environmental concerns are certainly a factor in obtaining resources. There will be an "adjustment" period until manufacturers and consumers figure this out. Not everyone is responsible for the current situation but all will experience the results.

 

[MGD1961]

The "cost of living" has increased by about 40% in the last 2 years by my calculations (nothing scientific but I do have limited experience in this field). That has a direct effect on "discretionary spending" which RVs and leisure spending falls into.

I have noticed the "slow down" in all industries I'm associated with. Demand has dropped because of inflation. I also assume that the environmental concerns are certainly a factor in obtaining resources. There will be an "adjustment" period until manufacturers and consumers figure this out. Not everyone is responsible for the current situation but all will experience the results.

Don’t know where you got your info but the cost of living overall is up 19% since January 2020.

I do believe this is a scientific study.

 

[Nick Danger]

From your graph I see -

From 2021 to 2023 it spiked up over 40%. Just like I said.
It did start lower in 2020 and has come down a bit recently.

Didn't realize Milton Friedman was working this site. Love your work!

 

[GolfingDave]

Don’t know where you got your info but the cost of living overall is up 19% since January 2020.

Your chart conveniently says "overall".
Here is one that has where people have to spend their money.
Look where food and housing are. My bet that is where most people spend the most money overall on a daily basis.

 

[MGD1961]

From your graph I see -

From 2021 to 2023 it spiked up over 40%. Just like I said.
It did start lower in 2020 and has come down a bit recently.

Didn't realize Milton Friedman was working this site. Love your work!

Never said it was my work and it’s not my graph. I pulled it off Google just like anyone can. You did however say it was your work. Your statement was over the past 2 years the cost of living has gone up. It has not. It has come down over the past 2 years.

Guess I’m just a glass half full kinda guy. I’m doing better now than I ever have and would dare say everyone I know is. So ok. The RV industry is in a downturn. They knew it would happen and are reacting to it as you would expect.

I don’t build rvs I build Yachts. We are doing great and never have felt a bump in the road since 2008 because the truly wealthy will always be. I’m not wealthy and will likely never be but they are the founder of the feast. If they are steady I am steady. The vast majority of RVers are middle class.

Once the middle class realized they can fly and stay in hotels again they don’t want that RV any longer. Thus……a downturn.