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RV manufacturing to slow down during second half of 2022

It looks as if the Great RV Manufacturing Slowdown of 2022 is about to begin.

Kathryn Thompson, CEO of Thompson Research Group, said her firm’s analysis of the current and future RV sales market shows its time for RV manufacturers to apply the brakes to new-unit production.

Officials at Thor Industries, the largest producer of RVs in the world, supported Thompson’s analysis while discussing Thor’s third-quarter earnings.

Thor Industries’ leaders said they agreed with Thompson that RV dealer lot stocking levels are most directly affected by rising interest costs, while consumer demand is driven by inflation factors like fuel costs, groceries, and utility bills.

Thompson said the net result of all those factors is that Thor would have to slow their RV manufacturing by about 25% for the rest of 2022 in order to not blow past its full-year wholesale RV shipment estimates.

“Management indicated the company has not reduced production to that level yet but had already pulled back on towable production in April to adjust volumes downward,” Thompson said. “We expect a gradual decline downward through the summer as the industry gauges retail demand, with potential for significant deceleration above the 25% declines near the end of the year.”

It’s worth noting that Thor recently announced that it has achieved the number one spot among RV manufacturers in the building of Class B motorhomes as that category’s growth continues to surge among new RV purchasers. In 2021 Class B RVs represented about 22% of all motorhome registrations in North America. By April 2022, that had grown to 30.5%.

To illustrate even further, in 2020 Class B motorhomes were 16% of the market, up from 11% of the market in 2019.

Related:

RV economists say supply chain woes are finally starting to ease

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Ty o
12 days ago

Yeah because it has nothing to do with the fact they are made of paper staples and cardboard. The craftsmanship is outrageous nowadays they are all junk. These companies should be ashamed of the final product they put out.

BigAl
12 days ago
Reply to  Ty o

Right on bro!!!

Julie Gaspàr
15 days ago

With the Feds giant hike on interest it’s going to really slow down

Candelario Medina
18 days ago

I built my own camping trailer. It may not have all the bells and whistles but it also doesn’t have an outstanding loan either. As gas prices continue to rise and they will, folks who are paying storage fees on a RV that they are using only two or three times a year will decide to get rid of their rigs. Those of us with money and patience will be finding great deals to pick from.

Suh Mi
19 days ago

We need someone like Ralph Nader to launch a class action lawsuit against the manufacturers of rv’s and give them a rude awakening. A lot if dealers need to be woken up also. The current situation is a pitiful effort by both.

MattD
18 days ago
Reply to  Suh Mi

Look up Forest River 5th Wheels class action (20 years of unsafe wiring), and a Class Action against Dometic absorption refrigerators (25 years of exploding refrigerators). The class actions are out there and I’ll bet more are coming!

Ajax
19 days ago

The quality [or lack there of] of RV manufacturing is an issue that won’t disappear anytime soon.

As long as the market keeps supporting these inferior products they will continue to be made. placing assembly line construction and manufacturing technology into the build process would increase the prices of these units significantly.

I believe consumers would be willing to pay considerably higher prices if units matched the quality of [for example] automobiles.

Bull Halsey
19 days ago

This is so true. I’ve been looking into full-time RV living in the next 5-8 years (retirement) . And I see so many YouTube videos of very poor QA. Bad welds, wiring, stripped out lug nuts. And the prices are just outrageous. I’m just glad so many with the expertise are willing to share their knowledge. I’m still learning.

The Lazy Q
19 days ago

I just don’t see why people continue to pay for an rv unless they are not doing their due diligence in research prior. If they did, they would see very low quality, and the prices are way beyond what they are worth. If I didn’t already own I would definitely put off buying until prices go below 2019 cost and quality shoots a lot higher than what we are getting today. Research people research and wait it out.

Bob Gash
19 days ago
Reply to  The Lazy Q

Excellent post – spot on!

Joe Farinha
19 days ago
Reply to  The Lazy Q

I’ve been wating for 24 years.. I Just kept my1998. It’s quality wasn’t great!, but It’s mostly fixed now!

Jack Washburn
18 days ago
Reply to  The Lazy Q

One issue is that prices won’t come down… they can’t. Only thing OEM’s could do is offer manufacturer rebates, but as far as prices OEM’s sell to dealers… they can’t come back down because of existing inventory… just crazy people still buy these things… I will never understand it.

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