The RV industry has been slumping for more than a year, but you wouldn’t have gotten that impression by walking around the massive Dealer Open House event that recently took over a big chunk of Elkhart County.
During the three-day event that wrapped up Sept. 27, nearly every RV dealer, manufacturer and supplier felt that the worst of the downturn was in the industry’s rearview mirror and that declines should level off this year before showing signs of improvement in 2024.
That prediction is in line with the latest forecast from the RV Industry Association, which is predicting shipments of 287,200 to 307,000 this year and a rebound of roughly 20% to 363,700 to 375,500 units in 2024, officially ending the slump that got underway in June 2022.
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According to the latest figures from the RV Industry Association, shipments from factories to dealers were at 213,421 units through August, a 45% decline compared to the same period in 2022, but the year-over-year declines have been lessening each month as dealers have been working through inventory that built up on their lots coming out of the pandemic, when the industry set new records for production.
The RV industry runs in cycles
RVs were in abnormally high demand in 2020 and 2021 as consumers shifted to outdoor activities such as camping and boating as a way to more safely enjoy time with friends and family during the pandemic. In 2021, the industry shipped a record 600,240 units to dealers, a 19% jump over the previous record set in 2017.
But midway into 2022, business started to soften as the Fed started increasing interest rates to cool inflation, gas prices started going up and concerns grew about the possibility of a recession.
“The industry was facing economic headwinds,” said Monika Geraci, spokesperson for the RVIA. “But the biggest cause of the slowdown was the buildup of dealer inventory, which needed to thin out.”
Geraci pointed out that the decline in RV registrations hasn’t been nearly as drastic as the decline in shipments. Through July, RV registrations were down 17.8% compared to last year while shipments were down 47.7% during the same period, she explained.
Even with the issues with the economy, those who’ve been around the business for any period of time know the RV industry runs in cycles, said Darryl Searer, president of the RV/MH Hall of Fame in Elkhart, which served as the epicenter of the Dealer Open House.
While providing a tour of an area set aside for suppliers to RV manufacturers and dealers, Searer pointed out that booth space was in considerably higher demand for the 2023 event compared to last year when the RV market was just beginning to decline.
There were 162 suppliers offering a wide variety of products aimed at solving problems or improving the RV experience, Searer said, adding that one of the faster growing segments in the industry is the use of solar cells and lithium batteries to provide some level of comfort for those who want to go camping off the grid.
Though the show was largely designed by local heavyweights Thor Industries and Forest River as a way to showcase new models, innovations and floor plans to its dealers, the supplier showcase was added a few years ago to provide connections between suppliers, dealers and manufacturers.
Suppliers were thrilled to make those connections in just a few days.
“The people who come to this show are authorized to make decisions,” said Mike Beyersdoerfer, an RV market specialist for Design Engineering Inc., an Ohio-based company that aims to expand its presence in the RV industry by offering heat- and noise-reduction products that were developed for motorsports.
Other suppliers showed remote control awnings that are attached to campers, slide-outs and bunk beds, electrical controls and numerous other products aimed at manufacturers, dealers and, ultimately, consumers.
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“I think we’ve already bottomed out,” said Bobby Raatz, vice president of operations for WFCO Technologies in Elkhart. “The question is, how quick does it come back?”
Based on businesses with a presence at the show, most think the recovery is coming. Besides more suppliers, there were also double the number of smaller RV manufacturers showing off their new products near the RV/MH Hall of Fame and other places in the county.
In all, officials estimated that the event, which wrapped up Sept. 27, attracted 3,500 dealers from throughout North America in addition to manufacturers from here and elsewhere hoping to make new business connections. In the past, officials have estimated the future orders coming from the show in the billions of dollars.
Solar cells, lithium batteries and 'boondockers'
Most motorhomes and travel trailers are aimed at campgrounds, where there is usually water, electricity and waste disposal. Another category, however, is aimed at those who are seeking even more adventure by going off the beaten path.
“One of the bigger trends is the ability to go off-road, off-grid with bigger tires and solar power,” Geraci said. “There’s also more of a focus on providing outstanding value.”
Those types of enthusiasts ? called boondockers ?are more concerned with a trailer's ruggedness, fresh water capacity, security, ability to generate some power and carry kayaks, bikes, ATV and other items into the wilderness and they're typically younger than traditional RVers.
Just down the road from RV/MH Hall of Fame, Aliner was showing off its lineup of trailers that are aimed at those who want a camping trailer that can be garaged and is light enough so that it can be towed with most vehicles, said Brett Randall, CEO of the company.
"Our core customer is getting younger," said Randall, who pointed out 2024 models that use lithium batteries and solar panels to allow campers to venture into more remote areas for four to six days. The company is mostly known for its A-frame towable campers, but it recently reintroduced its version of the classic teardrop camper.
It all depends what you want to do in your outdoor adventures.
Located nearby, Encore RVs was displaying its products, which are aimed at the most hard-core enthusiast with trailers that are built for durability and the ability to be pulled just about anywhere.
Solar cells and lithium batteries could allow a camper to remain off grid for days, said Richard Schnippel, founder and partner in the company, which was just launched in 2021. And even with the downturn in the overall RV industry, Encore has been able to grow because of the niche it serves.
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That shows the flexibility of an industry that continues to adapt to whatever it's customers want, making the show an ideal time to generate business but also to exchange ideas with dealers and suppliers.
Though there was no current estimate on the economic impact of the three-day show, officials have likened the event to another Notre Dame home football game as hotels, restaurants, caterers, equipment rental companies and others were pushed to the limit serving visitors.
"It's a good week for everyone," said Terry Mark, director of communications for the Elkhart County Convention & Visitors Bureau.