Truth Staff
RESTON, Va. -- The June shipment numbers brought more bad news to the recreational vehicle industry.
Shipments of towables and motorhomes were off 17.1 percent through June, according to a report from the Recreation Vehicle Industry Association. Motorhomes led the drop year-to-date, falling 33.2 percent, while towables declined 14.1 percent.
"The numbers are about what we expected," said Kevin Broom, spokesman for RVIA.
Broom cited an industry forecast by Richard Curtin, director of the Reuters/University of Michigan Surveys of Consumers, that expects 2008 shipments to reach 304,000 units, about 14 percent under 2007 totals.
The reasons for the slump are beyond the control of RV manufacturers and dealers, Broom said. Tightening credit availability, declining home values and waning consumer confidence, rocked by higher fuel and food prices, are dampening customers' ability and desire to purchase discretionary items such as RVs.
"Those are the factors affecting RV sales period," Broom said. "It's primarily the larger economic issues that are affecting the industry."
The consumer-sentiment index made a slight increase in July, according to RV Business. However, Curtin noted, "the overall level of consumer confidence is dismal and still points toward declines in the pace of spending in late 2008 and early 2009."
For June 2008, towable shipments were 27.4 percent below June 2007 shipments, with truck campers suffering the largest decline of 42.9 percent. Motorhome shipments fell a substantial 54.4 percent from June 2007, with Class A units leading the freefall at 56.3 percent.
Although consumers are not buying, they still want to go RVing. Rentals of RVs are up 18 percent and of campground spaces have jumped 23 percent, Broom said, referring to industry information.
"It's certainly not the best," Broom said of the current shipment figures, "but the long term still looks pretty good for the RV industry."