The future of the RV industry: Bracing for what’s to come

The RV industry is always changing, but lately, it feels like some big shifts are on the horizon. Josh the RV Nerd from Bish’s RV is here to give his monthly industry update, and this time, it’s all about navigating some potentially rough waters. The industry might be entering an uncomfortable phase, and the big players aren’t exactly shouting it from the rooftops.

Among other topics, Josh covers topics that will help those looking to buy an RV, whether it be new or used.

Heartland production shuts down: The real story?

In a significant move, Heartland RV, including its Cruiser RV and DRV Mobile Suites divisions, has halted production. To understand why, it’s important to know that Heartland is now a subsidiary of JAYCO, both of which are owned by Thor Industries. Some people are going to hear that Heartland RV is gone for good, but that’s not quite the case. Heartland RV is not disappearing entirely, but its products will now be manufactured in JAYCO plants. More on that here.

As Josh puts it, “If it doesn’t make dollars, it doesn’t make sense, and then decisions have to get made.”

The unfortunate side effect of this change is that hundreds of employees at the Heartland facilities have lost their jobs. This is a tough blow to the local community and something that Josh doesn’t take lightly.

In the short term, Heartland’s existing lineup of RV models will likely be produced in JAYCO facilities. This isn’t new. Brands like Starcraft and Highland Ridge have had their products built in JAYCO plants before.

However, Josh believes that in the long term, the RV industry will see increased “homogenization” of products. This means that Heartland brands could become more similar to JAYCO products to streamline production. It’s also possible that some Heartland brands or models could be discontinued, similar to what happened when Crossroads became a subsidiary of Keystone.

Looming uncertainty: Navigating the “X Factors”

The situation with Heartland and JAYCO sets the tone for the overall feeling in the RV industry right now. There are a lot of uncertainties on the horizon, making it difficult to predict what’s going to happen.

One of the biggest issues is the ongoing back-and-forth about tariffs. Are they happening or not? Are they only for certain countries? This uncertainty is causing unease, and when you can’t predict the future, the best thing you can do is prepare for the worst.

Josh believes that the industry will continue to see more streamlining and homogenization. In other words, some brands might disappear altogether, or they might become nearly identical to other brands. This would allow manufacturers to build multiple brands in a single factory.

In the short term, this could mean job losses and fewer choices for consumers. However, in the long term, it could lead to new and innovative floorplans as designers have more time to experiment.

Pricing pressures: Brace for a surge

While manufacturers might be absorbing some costs right now, Josh is hearing that RV prices are likely to increase on 2026 models. He originally estimated a 4-6% increase, but now he’s expecting it to be closer to 10%. This isn’t exactly good news, but it’s important to be aware of what’s coming.

This situation is similar to the price surges that happened during the pandemic. During that time, consumers generally had the money and the desire to spend it. However, Josh isn’t sure if that’s the case now. RV pricing may very well surge significantly, but it remains to be seen if consumers will be willing to pay those higher prices.

What about those “COVID buyers”?

A common belief was that people who bought RVs during the pandemic would quickly lose interest and leave the lifestyle. However, the data shows that this hasn’t happened. Those “COVID buyers” are still camping more often than people who bought RVs in previous years. They also seem enthusiastic about upgrading their RVs.

So, what’s really going on? Josh believes that many of these buyers are still camping, but they might feel “stuck.” They bought their RVs when prices were at their peak, and now they’re facing higher interest rates and loan balances. While they might want to upgrade, the financial situation might not make it feasible. They may be using their RVs simply because they feel obligated, given the investment they’ve made.

New vs. used: A shifting RV industry landscape

Reports of RV shipments being up 14% might sound positive, but it’s important to consider the context. Shipments are up compared to last year, which was a down year. Dealers were overstocked and selling off older inventory.

This year, dealers stocked up for what they hoped would be a strong show season. Additionally, Canadian dealers bought extra inventory to avoid potential tariff-related price increases. The real effects of the current climate haven’t been reflected in the statistics yet and the industry might see some significant changes in the coming months.

What about the used RV market? Right now, it’s fairly stable. However, Josh believes that used RV prices and trade values are likely to increase soon. The used RV market is closely tied to the new RV market. When new prices go up, used prices tend to follow. During the pandemic, some people were able to trade in their used RVs for more than they originally paid because new RV prices had surged.

Currently, trade values are low, but purchase values are reasonable. In the next couple of months, it’s likely that purchase values will increase. Trade values will probably increase, too, as dealers need to acquire used inventory. This could be good news for those who already own an RV and are looking to trade up. However, it could be bad news for first-time buyers.

Manufacturing news: Grand Design and Brinkley

Grand Design is expanding its Lineage motorized division with the Lineage VT Series Adventure Van. Some eagle-eyed viewers even spotted prototypes in the background of Josh’s videos.

This new van is different from their other motorized offerings and is designed for off-road use.

Brinkley RV is upgrading its warranty to include a 3-year seals and gaskets guarantee. This extends two years beyond the base warranty and covers a major area of concern for RV buyers. They’re not changing the construction of their RVs, and they’ve always used the same sealing system. The new warranty is retroactive to existing owners, so if you own a Brinkley RV, you might be in luck.

This is similar to Grand Design’s 5-year frame warranty and is an example of the RV industry moving toward better warranty coverage.

The road ahead

The RV industry is facing some challenges, but there are also reasons to be optimistic. By staying informed and working together, the industry can navigate these changes and continue to provide amazing experiences for RVers everywhere.

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