Wednesday, February 1, 2023


RV economists say supply chain woes are finally starting to ease

Last week, the RV Industry Association gathered a few outdoor industry economists in the manufacturing mecca of Elkhart, Indiana, for a panel discussion on supply chain issues.

These sorts of get-togethers are nothing new in America. During the pandemic, most industries held monthly hand-wringing sessions on Zoom and other internet platforms to go over the latest data and try their best to predict what would happen next.

Last week’s gathering in Elkhart was different only in that it was one of the first I’ve seen that offered a glimmer of hope to RVers who (pick one):

  • Have been waiting for several months for their new factory-ordered RV to arrive.
  • Have taken delivery of a new RV that had more parts missing than a discount Thanksgiving turkey.
  • Have waited impatiently to flush the toilet on their current RV because nobody has the required foot pedal to replace the one the kids broke.
  • Want manufacturers to take parts from the assembly line to fix recently delivered RVs with faulty bits and pieces.
  • Are ready to throw in the towel on their RVing lifestyle because they can’t keep their rig up and running with just spit and duct tape.

The list of woes goes on. But let’s get back to that glimmer of hope.

An RV economist’s perspective

Eric Post, the senior economist for an outfit called ITR Economics, walked panel watchers through a plethora of charts and graphs to explain the varied performance of RV supply chains in recent years.

Post said what we’ve witnessed in the RV industry is a classic example of demand far outstripping supply. No surprise there.

But Post went on to declare that there are signs that things are beginning to normalize and a “realignment between demand and supply” could occur as early as this year. More parts are available than RVers waiting to buy them. That’s encouraging.

“It’s Important because when we see supply chain normalization occur, it means that inflation is going to ease,” he told the group.

A flicker of light on the horizon

Economist Post said today’s market is a lot like it was around 2007 (right before the recession). Anyone who wants a job has one, and employers are raising wages regularly. Consumers are offsetting some inflation pressures by dipping into their savings accounts since consumer debt decreased from 33 percent to about 9 percent during the pandemic.

“It’s a totally different consumer that’s we’re facing right now,” Post said. “It doesn’t mean that inflation isn’t going to nick away or that interest isn’t going to nick away, but that people have the money to go out and spend and when they see something they want—like an RV—they’re going to go out and spend on it.”

Last fall, the RV Industry Association forecasted manufacturers would ship well over 600,000 rigs in 2022. They’ve since tempered those numbers. The last I hear it was down to about 590,000—still an impressive output when you consider they are constantly on the hunt for everything from air conditioners to door latches.

Why RVers should care

If Post and the other RV economic pundits are to be believed, the “normalizing” of the supply chain will bring an end to dealer inventory woes, which are already showing signs of going away. It might also mean your new RV will:

  • Arrive with all parts included.
  • Be built with a bit more quality as production lines are allowed to slow down a bit.
  • Temper rapidly increasing RV costs as more inventory arrives at dealerships.
  • Eventually put buyers back in the driver’s seat when it comes to the buyer/dealer dynamic.
  • In the big picture, overall manufacturing supply chain normalization could also slow inflation overall.

What do you think?



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8 months ago

We looked hard for our next RV and decided on a 2022 37K accolade. finding one to buy was a challenge but we did find one which was on order and we bought it sight unseen. We named our price and we also negotiated our trade in to a number we liked. Putting a deposit on a 2023 would have been easier but we were not going to accept a 20% price increase. The unit came in in perfect condition and our walk through found very little to fix ( of course our dealer was FANTASTIC). It took a lot of work and phone calls but we found exactly what we wanted at a price we pretty much named and in a location that was not too far from home. We were not fussy about the color outside or inside.

Diane M.
8 months ago

We just spent six months on a cross country trip driving state highways through lots of towns. We easily saw hundreds of RV dealers, lots all looked full to us. Granted, we didn’t look inside the units, maybe they are empty!

8 months ago

May be shipping 590,000 but pretty sure that is not the retail sales number. Been on the road over 30 days and every RV sales Lot we pass is stuffed full of RV’s. They are mostly white and appear to be 5th wheels and bumper pulls so maybe still a Class A shortage although they are a much smaller part of the sales mix.

Barbara Wyatt
8 months ago

Sure hope that things are getting better. We lived in a smallish town on Vancouver Island, B.C. Canada, and due to housing/rental costs we, along with a couple of hundred others (it seems like) sold everything and bought RVs to live-in. It has been difficult to find a place to put the RV but we all seem to be experiencing many quality-control issues. Love our RV but are very discouraged by the numerous things that need to be fixed.

Neal Davis
8 months ago

It’s not quite over yet, but the 2022 Newmar DP that we ordered in early March is in the last stages of production and looks likely to be ready/finished in early June, if not late this month. We anticipated a production process of 4-6 months (so said Newmar after our order was finalized). Pre-virus production took 3 months. We were happily surprised to learn how quickly our RV was coming together and wondered if the way we had spec’d it had helped move the production along much faster than expected/feared. Perhaps it did, but we were told that the most recent supply problems Newmar was having was getting toilets. Happily our DP only has one. 🙂

8 months ago

We would have to have numerous quarters of deflation to get prices of RV’s back in line.

I always chuckle when economists or our Fed says that inflation will be less. That doesn’t mean deflation…that means all of the enormous inflation we have seen “sticks” and keeps going up, but at a slower rate of increase.

Edward Wullschleger
8 months ago
Reply to  Spike

You sure got that right!!!

8 months ago

Dealer lots were pretty full with inventory when I drove from Tennessee to Florida in early February and again a month later. Parts shortages are real but I think shortages of rvs might be dealer hype in some cases.

8 months ago

Already seeing it in inventory levels. Prices will stop increasing and as inventory sits longer on lot or in someone’s yard we’ll see some deflation. Not a ton but will ease.

8 months ago
Reply to  Dave

Prices will never stop increasing. Companies and corporations are seeing all the profits missed from the pandemic. Why would they now decrease profits? They may have specials(sales), but I doubt it’ll be anything worthwhile. I agree with Jay’s comments, same is true in SoCal.

Cooper B.
7 months ago
Reply to  G13

I always felt that the basic driving force behind the purchases of really discretionary items was whether or not you can afford it and then, what you’re willing to pay for it. Not being a dealer, but common sense tells me that if I’ve priced the unit too high and it sits, then I’m bumping up against consumer resistance. So, I either lower the price to an acceptable price point or continue to floor plan it and maintain it on the lot.
Sooner or later, cars (gas or electric), boats, rvs, houses, etc. will price themselves out of the reach of the average consumer. Then what?
The vicious cycle of plant slow downs and layoffs begin, some homeowners will become stressed with mortgage indebtedness and possibly face foreclosure.
Dave’s comment has validity to it. If you kill the “Golden Goose”, in this case the American consumer, everyone will be impacted in someway.
Just my thoughts.

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