Are RV Sales Up Or Down?

Are RV sales up or down?

The recreational vehicle (RV) market has soared in recent years as people began to embrace the active outdoor lifestyle and a sense of control over their environment. However, with rising gas prices and the federal reserve raising interest rates to fight inflation, consumer demand for RVs has been slowing.

A recent survey of retail dealers by Truist found that 70% reported RV demand has slowed noticeably since April. This could have something to do with a combination of factors including supply chain issues, gas prices and spiking lending rates.

How Does the RV Industry React to These Issues?

The booming RV market has been driven by a combination of high demand and low inventories. As a result, wholesale pricing has skyrocketed and manufacturers are often raising their prices multiple times in order to compensate for lower productivity.

This has resulted in an unsustainable situation for both dealers and manufacturers. Despite record shipments and a huge increase in sales, the stock price of many of the RV makers has been hit hard as they struggle to adjust to the new economy.

Luckily, this is an industry that typically responds well to economic shifts. In fact, in 2022, the RV industry is expected to grow again.

According to a report by ITR Economics, the outlook for 2022 is very strong. The report predicts that total shipments will come in between 565,848 and 586,281 units. This is an increase of 33.8% from 2020’s total shipments.

The strong shipments of 2020 are an indication that the RV market will continue to see strong growth in 2021. This is primarily due to the increased demand from travelers looking for a safer and more responsible way to travel during the pandemic.

Another factor that helped boost the RV industry in 2020 was the rise of millennials and the zoomers’ zeal for off-the-grid living. The COVID-19 pandemic sparked an interest in a more responsible and safe travel alternative, and the industry responded by creating vehicles that provide more privacy while limiting social interaction.

These models are also very popular among first-time buyers. This is because the safety of these vehicles and the ability to stay on the road without worrying about where the next meal is coming from will help to encourage a more active lifestyle.

Will the RV Industry be able to maintain its momentum?

Although the RV industry has managed to navigate the snarls of the Covid-19 pandemic and the resulting supply chain challenges, the near-term uncertain economic environment has put brakes on the industry’s momentum. Manufacturers are struggling to meet consumer demand while attempting to manage inventory levels and the rise in interest rates.

In 2021, the industry produced a whopping 600,000 units, an increase of 19% from the previous year. Unfortunately, this also entailed a backlog of orders that manufacturers were unable to meet due to the supply chain snarls and shortages of parts and components.