Saturday, September 30, 2023


High gas prices hitting RV industry more than it wants to admit

Despite the positive spin that many RV industry manufacturers are putting on how high gas prices are theoretically not affecting RVers, stock price numbers don’t lie. Three major players in the market, Thor Industries, Winnebago, and Camping World, have seen their stock prices drop over the last several months.

There’s been more trumpeting by industry over the remarkable record 2021 sales figures than in a herd of elephants, true. But hang on, the projections are that sales this year will fall a steep 8.4%. That sobering figure is from the RV Industry Association’s market report, published in May.

Stock market talking head issues warning

RV industryLast week, a talking head from Jefferies Financial Group, Bret Jordan, told Yahoo Finance Live that things weren’t particularly rosy for the RV industry. “It’s a compounding effect of inflation, whether it’s gas, or milk, or heating, or rent. All of this is sort of draining the consumer’s liquidity,” Jordan pointed out. “And, obviously, when you’re at the pump and you’re putting $100 into your tank when it used to be $25 or $30, it really strikes home.”

Jefferies is a financial services company that works in direct investing and asset management. Bret Jordan suggested that investments in RV companies are “dead money.” That’s a stock market term for an investment that has shown little or no growth for a long term. It can also be a red-flag term for investors who might be thinking about buying shares. Why does Jordan see RV industry investments as dead money? He says indications are pointing to a potential recession next year that could create real problems for the RV industry for at least six months.

Jordan also told Yahoo Finance, “They [RV stocks] are trading at very low optical valuations in the sense that five plus times earnings on current year would seem to be extraordinarily cheap. But current year earnings are, in Winnebago’s case, four times with earned in 2019,” Jordan said. “So they are arguably over-earning. And until people can make a decision as to how big the downturn is and what the normalized earning rate is going to be, it seems a bit dead money.”

“Good news/bad news”

In a “good news/bad news” scenario, travel industry hawks AAA found in a recent survey that planned travel for the rest of the year is at a 40-year low. For RVers who are still planning trips, that could mean fewer crowds to cope with, and more access to camping. But if that record low projection for trips were reflected in RV purchases, woe be it for the Mom-and-Pop RV retailer.

The big boost to last year’s surge in RV sales was also mixed. COVID isolation spurred many on to wanting to get up, get out, and get away. Hence, a big push in RV sales. But much of those sales were in “entry level” RVs—not the big-buck makers that the RV industry would prefer to pedal.

Other stories by Russ and Tiña De Maris


Russ and Tiña De Maris
Russ and Tiña De Maris
Russ and Tiña went from childhood tent camping to RVing in the 1980s when the ground got too hard. They've been tutored in the ways of RVing (and RV repair) by a series of rigs, from truck campers, to a fifth-wheel, and several travel trailers. In addition to writing scores of articles on RVing topics, they've also taught college classes for folks new to RVing. They authored the book, RV Boondocking Basics.


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1 year ago

We just cancelled our annual July trip to California. It would cost us in excess of $450.00 just in gas. Last month we spent over $700.00 in gas to go to Yellowstone. We are on a fixed income and I just can’t justify the cost. I’m bummed.

Bob M
1 year ago

The cost of Petroleum is driving everything up. Just today they were saying the price of plastic spoons and cups for ice cream shops has went up drastically and in some instances difficult to get. You see it at the supermarket. Wonder how long for retires to complain about their stock investments being down cutting into their retirement income.

1 year ago

My wife and I have been out for a little over a week now. Last Monday through Thursday we were THE ONLY people at a decent campground off a busy 4 lane near a tourist attraction. Now, I know those are weekdays, but it is the summer travel season! I would expect campers to be coming and going…at least several a day.

We are now at the Amana Colonies. I would estimate the number of RV’s in the huge Amana RV park to be down 50% from what I have normally seen here on holiday weekends, and they even have a big multi-building antique show going! The number of people walking around Amana seemed down even more.

Just my personal observation in one area.

Jesse Crouse
1 year ago

Fewer trips and shorter distances with Diesel at these prices.

1 year ago
Reply to  Jesse Crouse


1 year ago

Reducing both the distance and amount of travel. I expect it to get much worse.
Government intervention is just a band-aid approach.

Ron Yanuszewski
1 year ago

Good, It has to slow down. We know that this industry is historically dirty. pedaling trash and screwing customers over and over. I do think it’s slowly changing but when I see a small camper advertised for $48K that I paid $22 for 16 months ago, Some are trying to hang on to their, well earned, reputation.

1 year ago


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