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RV Dealers/Manufacturers Bullish on 2011

January 10, 2011 by · Leave a Comment 

It’s going to be a good year for recreational vehicle sales, say RV dealers and manufacturers and the RV trade organization.

“We had an excellent year in RV sales in 2010. We feel that 2011 is going to be the best year we have ever seen in the RV industry,” Gary Miller, owner of Wana RV in Shipshewana, Ind., told The Goshen (Ind.) News.

Miller’s expectations are for his growing RV sales business. As a whole, the industry is expecting an increase of 3.9%. That number is based on a consumer survey by Richard Curtain of the University of Michigan. Curtain has been an analyst from the Recreation Vehicle Industry Association (RVIA) for many years.

After three years of declines, the RV industry rebounded in 2010 with a 47.7% gain in shipments. As of November, the year’s total shipments reached 224,000 units.

This month, retail shows are beginning across the country and manufacturers and dealers are trying to gauge if Curtain’s prediction for another year of gains will come true.

“… If I can go by my two days of sales, we are up compared to last year,” said Joe Weider, operations manager for General RV Center in North Canton, Ohio. Weider’s sales staff was at the RV show in Cleveland, the biggest indoor sales event in the country. “My crystal ball says we should have a pretty good year.”

Weider said his sales center is the largest motorhome dealership in Ohio and also sells fifth-wheels and travel trailers. They have added some new manufacturers and products this year. But Weider said the sales year is too young to gauge if there will be any trends this year.

Phil Sarvari, executive vice president of Gulf Stream Coach Inc. in Nappanee, Ind., said the year’s sales will depend on consumers’s attitudes.

“As long as people feel good and they know they are going to have jobs, they will be willing to spend,” Sarvari said.

Americans have embraced RVs, he said, and want to continue camping and using that outdoor experience to bond with their family and friends. “It is a way of life. It is relaxing. They support each other, they tell stories and play games. You know, that is important,” Sarvari said.

At Jayco Inc. in Middlebury, the storage lots have many newly made units ready to be shipped.

“We’ve garnered a lot of momentum with the introduction of new products,” said Jim Jacobs, a vice president at Jayco.

Jacobs said the company has added new products and new price points to generate business. “That is what is going to carry our momentum. You have to be innovative to survive in this industry,” he said.

Motorhome sales dipped drastically when the recession began, and since it has ended the RV segment has continued to struggle. In 2010, Class A luxury motorcoaches averaged around 1,000 units shipped each month. The Class C motorhomes averaged even less.

But if manufacturers offer a quality product, Jacobs said there are buyers wanting them.

“In the Class A line, we have been extremely happy with the performance of the Entegra line,” Jacobs said. “Not only from the response from the dealer network, but the response from the consumer network. There are a lot of consumers out there still buying high-end diesel products. That customer is still there.”

To the east of Jayco’s Middlebury complex, Miller is getting ready for the upcoming RV show at the Century Center in South Bend. He plans to take 24 units and his son Justin will help with sales.

Miller has added units from Forest River Inc.’s Rockwood line made in Millersburg. He also has Dutchmen Manufacturing Inc. and CrossRoads RV products.

He expects a good show in South Bend as financing is more available for buyers this year.

“As far as retail financing RVs, it definitely has gotten better than it was a year ago,” Miller said. But financing has changed. He said two years ago buyers could make a purchase without a down payment. Now a 10% down payment is standard practice.

“It really is a good thing because people will pay that 10% so when they are ready to sell it or trade it in they are not upside down on the unit. They don’t feel like they are taking such a loss,” Miller said.

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