RV industry growth prospects "excellent" - and it will change ...
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RV industry growth prospects
"excellent" - and it will change ...

More diverse, more age-friendly, more upscale and more energy efficient

Washington, D.C.— The recreation vehicle (RV) industry will see renewed shipments growth in 2008, and the industry’s long-term prospects look bright, according to Dr. Richard Curtin, Director of Surveys at the University of Michigan.

“Throughout the recent economic turmoil, RV shipments have remained robust, showing none of the volatility of an earlier era,” said Curtin, who announced his RV market forecast at an event sponsored by Recreation Vehicle Industry Association (RVIA).

The $14.5 billion RV industry’s shipments will increase 3.5 percent in 2008 to 367,100 units. The growth in 2008 will be led by travel trailers, which are projected to increase by 5.4 percent and Type A motorhomes, which are projected to increase by 4.4 percent. Approximately 80 percent of the RV market is comprised of travel trailers and other towable units.

Curtin said that shipments for the remainder of 2007 will continue to be strong, though lower than the record growth levels the industry has seen in recent years. The RV industry shipped 390,500 units in 2006, a 30-year record. The 2007 total will be the industry’s fourth highest in the last 30 years.

The industry’s long-term growth prospects are excellent, according to Curtin, who projects that RV ownership will rise from 7.9 million households in 2005 to 8.5 million in 2010.

“The leading edge of the baby boom generation has just entered their prime retirement ages, and the number that retires will accelerate over the next decade,” said Curtin. “Moreover, the RV industry has been successful in attracting younger buyers.”

The ongoing change in age distribution means that more consumers will enter the age range in which the highest RV ownership rates are recorded, according to Curtin.

Curtin predicts the expected growth in RV ownership will be accompanied by a change within the RV industry toward more varied features suitable for more diverse uses, toward more age-friendly features, toward more upscale destination campgrounds, and toward more energy-efficient units.

RVIA is the national association representing more than 550 manufacturers and component suppliers producing approximately 98 percent of all RVs made in the United States.

RoTi's summary:

More diverse, more age-friendly, more upscale, more energy efficient - and more RVs

What do you think?

   

Readers' comments:
Latest first

Mark D. :   The RV market will continue to take a big hit in 2009 and 2010. The money to purchase these vehicles came from Home Equity loans and second mortgages. With stocks down, housing down and unemployment going to 8-9%, many companies will go bankrupt. Just hearing of problems at Winnebago, Monaco, CC, will make potential buyers look elsewhere, putting more pressure on them. Why buy a new RV for 250-500K, when there are 1,000's for sale with low mileage. The companies do not need to make any more for a year or two, way too much supply. If housing is down 25-40% in price, RV prices will fall atleast 50-70%. Best time in history to buy, no price is too low.

Jim Twamley Professor of RVing :   Dr. Jim Twamley, Professor of RVing. I find it predictable that Dr Curtin would have such a rosy pronouncement about the future of the RV industry at a function paid for by RVIA. Also, his state of Michigan is in a recession right now because of poor performance in the automotive sector. The reality is that the Recreational Vehicle Industry is in deep trouble now and will continue to suffer in the coming US wide recession this year (2008). National RV just declared bankruptcy, Country Coach laid off around 400 workers and all publicly traded RV manufacturers that I'm aware of lost value in 2007. People don't purchase many RVs in a recession unless they need to live in them because they lost their houses in foreclosure (which is a real possibility this year). Will the RV industry grow in 2008? I think not bit I've been wrong before. Keeping it real- Jim Twamley, Professor of RVing

gypsywannabe :   Anyone have anything to say about a 34' Titanium 5th wheel or about using a semi truck to haul it? Good or bad I'd like some feedback

Tom :   No stress here , not allowed. People come here to relax. And yes they are staying longer. Thats why I stated no one stays just a few hours. This has not happened once in 4 years. Matter of fact I too am a rv owner and I don't seem to have the problems you do. I plan a trip and go regardless of the cost of fuel or campgrounds. I do not sweat the stuff I cant change. Remember No Stress. Safe travels.

jackie 9 toes :   It's true everything is going up, but i think some campgrounds should charge by what the camper uses. The elderly camper don't use thplayground, swimming pool, basketball court or many other services. They need a place to park, relax, & enjoy.

Jade :   I don't mind paying certain percentages upwards -- know costs get higher for the RV parks people. When we do find one that hasn't gone up more than 30% in the last two years, we're almost surprised. That's a trend we see (full timing for nearly 4 years); and it tends to make us try for state or county parks more frequently. Jade J.

Tom :   I for one can tell you it is expensive to run a park. There is insurance that gos up each year,cable goes up each year,property taxes up each year,cost of main. up each year,cost of advertising up each year,cost for electricity up each year,and water rates went up 200% this year. On top of that business lic, health dept fees,sign fees,state fees to pump propane ect... need I go on . But yet we are expected by some to provide a site for $10 . Go to Sears and tell them you want a stove for what it cost 10 years ago. Good Luck. Better yet go to the gas station and fill er up with gas at the price you paid even 5 years ago. Not going to happen. So if you think you are punishing the campground owner by camping at Walmart or another fine asphalt parking lot with nothing to offer but an unsafe noise ridden atmosphere . Hats off to you. I will be greeting the fine folks that choose to camp in a clean,quiet area with complimentary coffee in the morning and Happy Hour at 4:00. As most of the people that visit us are friendly outgoing people that enjoy camping as opposed to parking lot hopping to save a buck. Just my 2 cents.

JERRY :   I agree with you 100% - I think Florida is way overpriced! We go to Texas where things are cheaper and the people seem friendlier -- weather about the same -- we do come back to Florida on our trip back home and also because a motorhome/travel trailer club we belong to has an annual winter get together there--

Val Lacey :   It's changing sooooooo much. We have a resort where the average stay is 3 or 4 nights and we now definitely see more younger people and families and they want more amenities and most of them wouldn't even come if we didn't have high speed internet. We used to charge for internet but people complained so much we remade the system and provide it free. We had a big library that no one used that's now a coffee shop and it's very popular. Our exercise room has been extended and its heavily used. We put our prices up 15% this year but so far not one person has complained. One other thing. I don't hear so many people complaining about the price of fuel even though its gone up. We don't provide entertainment but we're building a new clubhouse and we'll have an auditorium next year. We started out as an RV park only but now we also have primitive tent sites, rental cabins & trailers. Our experience is that many more young people want to RV and they want good facilities and are prepared to pay.

jeepjockey :   I RV in a Chevy Van and my wife and I have more fun than we did in our 30 foot Allegro, so I sold it.I've been Rving for about 20 years. All any RV does is get you from A to B. Depends on how spoiled you are as to how much luxury you want to get A or B.

Jim :   Things sure are changing. Last winter in Florida we saw the campground we had stayed in 5/6 months each year for the past five years sold. The lots went from $360 per month to $60,000 per lot, w/ a $100 a month maintance fee.Out of 155 spaces there was appx. 146 rv's that left. The majority of the remaining one's were older couples in park models who could not afford to or were physically incapable of relocating. We learned of several other campgrounds in the area did the same and one new one was being constructed that only allowed class A motorhomes in. Many Rv parks have raised their rates to close to what a motel room costs. What happens when all of us old timers are forced out and then the cost of maintaining a Class A becomes too much, fuel costs become too much and owning your lot cuts into the family budget ? Oh well times are changing

camperking :   Yes Rving is changing. I being one of the younger Rv'ers at only 36 see the industry as a whole changing. I think that more campgrounds and resort areas are going to be marketing to the younger crowd.

Valleyman :   I live in the Rio Grande Valley of Texas and more and more Winter Texans are leaving and not coming back. They say too expensive and this is the cheapest place in the country to live. Most of the parks are old and badly in need of a facelift. Large companies are buying up the individually owned lots and renting them seasonally. The weekenders and monthly renters are going away. This is a winter haven from the cold weather and activities are cheap i.e. golf greenfees at my course are $1700.00 a year and that is with cart included. I think that the travel will slow down in the future.

Homer :   Many prospective new owners of RV's, will out of necessity, need to finance these purchases. The cost of doing this along with high maintenance cost of RVing, higher campground fee's, much higher fuel cost and extrememly high depreciation, does not add up to growth for the financially savvy.

Ken P :   JFI asks why RVs costing thousands of dollars should be accommodated for $10 a night but I don't see the logic. I don't understand why it should cost more for a campground than a motel and some campgrounds DO charge more than a motel. Why? The campground doesn't have the same construction or even maintenance costs as a motel. It's the RV that is providing the accommodation and the campsites in most campgrounds are just a patches of relatively undeveloped land. Or don't we understand the true overheads? Maybe we underestimate how much a campground costs to run.

Richard A :   I think that the potential for growth in the industry is muted unless the manufacturers get very busy and develop much more fuel efficient RV's. Three to four hundred dollar tankfils, with the prospect of even more cost looming large, are no way to develop the industry. Especially true when the cost of upkeep is factored in.

Randy King :   We need more class b and class c motor homes with diesel engines; the rv industry must improve the infrastructure of their industry; dealers do not know how to repair the many models they handle from different manufactures; the dealers that are large (Lazy Days in Florida) just try and get an appointment; or stand in line to pick-up a part; this industry will not grow until they fix these problems.

JFI :   Yes, RV Parks need to change to meet the needs of the 20th century traveler, however that has to make sites more expensive. With all the regulations, cost of land and materials, Why do we think that RV's that sell of thousands of dollars should still be accommodated for $10 a night? Let's face the facts folks.

Slyckstar :   Fuel and energy efficiency is the are the areas that will see major improvements. Both diesels and gasoline engines will become more fuel efficient along with lighter and stronger materials being used in construction.

Buckeye :   I am not convinced the RV market will grow. If you factor in all the cost of operation, plus depreciation you have a loser. Then add, repair,debt service, and higher campground fees you lose again. Insurance rates are going up due to the so-called efficiencies being built in. I have been doing the RV thing a long time, I love it, but some of the newbies are going to find it a tough road to run. Hopefully not to late.

Lennich :   RV change? - don't bank on it. They will continue to do what they want. Cater to the big rig market in motorhomes. Entry level is slowly but surely going down the drain. Plus there is NO quality check on the products. Just get them out get the money. Sad

Nambin :   More people are buying rvs and rvs are getting better. I think rv parks need to improve and service facilities need to keep up with the improvements in the rvs. Rv parks are generally not good enough. Some are excellent but too expensive and most are not really suitable for modern big rigs.

John K :   I think there will be many changes and improvements with RVing in the next few years. The baby boomers will make bigger demands from manufacturers and service and facilities providers. More people will retire early and buy RVs with their savings either to go full-time or to use for long periods. I think technology will make it all more fuel efficient and more reliable. I think there is a big need for better RV parks able to take luxury motorcoaches and I think the big companies will move in and buy up lots of the RV parks and make big improvements.

 
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