Shakeups in RV Industry, But Still Holding Out Hope

A couple of news stories have surfaced recently regarding the direction of the economy, and that of the RV industry. As reported in RVs in the News, the most recent fallout from these days of tight finances was the bankruptcy and shutdown of National RV Holdings. Scores of readers have commented on National RV's woes.

Yesterday the trade journal, RV Business reported the findings of their interview with National's CEO, Dave Humphreys. Plain and simple, although the company had orders for 200 new motorhomes, they simply couldn't raise enough cash to build them. Humphreys admitted that the company's placement as only #7 on the list of motorhome builders, and a lawsuit against his firm for problematic sidewalls added to the difficulties.

Today the same journal, RV Business, indicates that while the entire industry serves as a bellweather for the economy, not all insiders are taking the situation as a sign that the industry is "down for the count." In an interview with the chief operating officer of RV builder, Thor Industries, Dicky Riegel, the COO pointed to what he feels to be a positive influence on the future of RV manufacturing. "Even as consumer sentiment and fuel prices damp RV sales, a wave of aging Baby Boomers may ride to the rescue. The industry is benefiting from the 11,000 people who turn 50 years old each day, the peak buying age for RV owners, the Thor chief operating officer, Dicky Riegel, said.

"The industry is definitely not immune to macroeconomic factors, but we still have the demographic wind at our back," said Riegel.

We look at it this way: While difficulties in the economy may make it tough to float loans for new RVs, there are millions of folks who already own RVs. We know the lifestyle, and recognize just how much a "breath of fresh air," just getting away from the daily grind can be. Heading out in your rig can take plenty of pounds of your shoulders. We may have to 'pull in the horns' on some of our expenditures, but we don't see the RVer being put on the endangered species list anytime soon.

Trade Group Signals Add to Industry Question Marks

While economy pundits like Blomberg are pointing to the RV industry sales dive as a bellweather for an economic recession (see "RV Manufacturers Hit the Skids") at least one industry gorilla doesn't share the view. The trade group, Recreational Vehicle Industry Association (RVIA), says 'au contraire.' RVIA mouthpiece, Gary LaBella, takes a very positive view of the future of RV marketing. Pointing to its own statistics, the group holds that RV ownership is growing faster than the population with nearly one in 12 U.S. vehicle owning households now owning an RV – an estimated 8 million vehicles. Statistics and studies conducted by the RVIA also suggest the growth rates in the RV marketplace are likely to continue in the long term – with the number of RV owning households rising to 8.5 percent by 2010.

Summing it up, LaBella says, “Demand for RVs will continue to grow during the next decade, due to favorable population trends and purchase intentions."

Train wreck or bullet train? Apparently the future will decide the fate of RV makers.