President Barack Obama to Visit Heart of the RV Industry Will hold a town hall meeting in Elkhart, Indiana, Monday President Barack Obama will hold a town hall meeting in Elkhart, Indiana, Monday, February 9, where he'll discuss the American Recovery and Reinvestment Plan, the roughly $780 billion piece of legislation aimed at kick-starting the economy through job creation, infrastructure spending and tax cuts. Elkhart County's rapidly rising unemployment levels made the area ideal for Obama to talk about economic recovery, the White House said. The county's unemployment rate, now at 15.3 percent, was just 4.7 percent a year ago -- the largest increase in the nation. His trip to Elkhart will be his first outside the Washington, D.C., area since his swearing-in. After his Elkhart stop, Obama will head back to the capital, where he will address the nation during his first prime-time press conference The event will start at noon at Concord High School, 59117 Minuteman Way. Doors will open at 10 a.m. The event is free and open to the public, but space is limited and tickets are required. Tickets will available on a first-come, first-served basis at Concord High School's McCuen Gym entrance in Elkhart.

It's no surprise to anyone that the economy is in a crises and business is universally dismal. Not a day goes by that we do year about more companies announcing layoffs while others are simply closing their doors. Consumer confidence in the ecomony is at all time lows and people are just not buying anything. Even those people that would like buy are thwarted by the lack of available credit.

But the RV industry is being hit especially hard.

More than 40 RV dealerships have gone out of business and many RV manufacturers have gone by the wayside also, companies such as Teton Homes and National RV; Coachmen sold off it's RV Group, and as we write this Country Coach's future is in the hands of a Federal Judge in Oregon.

Manufacturing plants are closing across the country and companies are cutting back and laying off employees. Unemployment figures in communities heavy into RV manufacturing are soaring. In Elkhart County, Indiana, the unemployment rate is double the national average at 15.3%, and the city of Elkhart posted a 17% unemployment rate in December.

The bottom has dropped out of stock values for publicly owned RV companies. Fleetwood Enterprises, a company that only a few years ago, was the largest and most financially sound company in the RV industry saw it's shares drop from over $10 a share in late 2007 to as low as seven cents a share a few weeks ago; in the meantime, the company was delisted by the New York Stock Exchange (NYSE), in other words, kicked off.

Monaco Corp has suffered a similar drop (in early February hovering between fifty and sixty cents a share) and is in jeopardy of loosing it place on the NYSE this month.

We are especially troubled about what's happened to Country Coach. As a former writer and reviewer of RVs for Family Motorcoach, Trailer Life and Motorhome magazines, I have tested and written about more than 100 RVs. And in my opinion, the company that came as close to perfection as possible in quality, style and innovation was Country Coach -- a tribute to the quality of its management and personal.

Wells Fargo Bank is trying to seize Country Coach's assets and force the company into liquidation. In the meantime, the U.S. Government has given Wells Fargo billions of dollars in an effort to ease the credit problem and the government has also loaned more billions to General Motors and Chrysler to keep these companies afloat in these hard times, but there's nothing for strong little companies like Coach Coach and their 500 employees. It's a shame.

The 2008 wholesale RV shipment figures (a major economic indicator for the health of the RV industry) are in and it was no surprise that the numbers were bad.

For the year, RV shipments recorded totals of 237,000 units in 2008, off 32.9% from the previous year. 2008 started out well enough with shipments through June showing totals of 162,500 units. However, it was the second half of 2008 where the greatest losses occurred as shipments totaled just 74,500 units in the final six months of the year, off 52% from the same period one year earlier.

In the meantime, the RV industry is trying hard to keep a positive attitude as it looks toward the future -- but I wonder .

Those of us who have been in the industry for a long time and lived through the gas crisis of the late 1970's and early 1980's and other recessions, we have always seen the RV industry bounce back strongly and usually leads in breaking out of a recession. The industry always benefited from a pent up demand and RV sales soared once the recovery began.

And there are reasons to be hopeful.

According to RVIA, here are a few indicators for future growth:

• Population and demographic trends favor long-term RV market growth. Buyers aged 35-54 are the largest segment of RV owners, according to the 2005 University of Michigan study commissioned by RVIA. The demographic tidal wave of prime RV buyers remains strongly in the strongest RV ownership age groups. Every day, 11,000 Americans turn 50, according to U.S. Census figures.
• Boomers nearing retirement. RV sales will benefit as aging baby-boomers continue to enter the age range in which RV ownership is highest. According to Dr. Richard Curtin, director of surveys at the University of Michigan, by the end of the decade, the number of consumers aged 50 to 64 will total 57 million — 38 percent higher than in 2000. Today one-in-10 vehicle-owning households in that age group own at least one RV.
• RVs are also attractive to young buyers. The fastest growing group of RV owners is young people 18-34. Products such as sports-utility RVs, as well as the Go RVing campaign, have helped attract younger buyers.
• RV manufacturers are innovating to give consumers an array of product choices. Manufacturers are producing lightweight towables and smaller, fuel-efficient motorhomes. Green technologies such as solar panels and energy-efficient components are appearing on an increasing number of RVs.
• RV ownership has reached record levels. Approximately 8.2 million American households now own an RV — a 16 percent increase since 2001 and a 64 percent gain since 1980.
• Vast potential market. By 2010, RVs will be owned by 8.5 million households, outpacing overall U.S. household growth of six percent, the Michigan study forecasts.
• Purchase intentions are higher now compared to what the Michigan study found in 2001 and 1997.

What worries my about this time around is that there has been a dramatic decline in people's wealth as a result of the drop in real estate values, the devaluation of people's retirement accounts such as 401 Ks, and companies unable to meet their commitments on promised retirement benefits.

That means people are going to have to work longer and postpone retirement which could change the outlook for the RV industry.

I remain hopeful but cautious as we look to the future. The RV lifestyle is dependent upon people having disposable income and their willingness to invest that income in this leisure pastime.

Let's hope the recovery comes quickly .

The 2008 National RV Trade Show at Louisville, Kentucky opened on Tuesday December 2, with the traditional and very popular Outlook Breakfast attended by a standing room crowd of over 1000 hosted by incoming RVIA Chairman Jim Sheldon of Monaco Coach. This years show theme, "We've Got Heart!" was accentuated by the appearance of the 50s and 60s rock and roll icons, The Drifters, singing their classic hit "You Gotta Have Heart". RVIA President, Richard Coon, addressed the economic times and credit crunch by recommending that dealers turn to local community banks and credit unions for customer credit and shy away from the usual huge national credit sources that have ceased supporting the retail trade. He emphasized that the RV industry has always recovered from economic downturns and has always come back stronger that it was before. Go RVing leaders Don Walter and Tom Stinnett, along with RVIA Vice President and Chief Marketing Officer Gary LaBella and RVIA Public Relations Committee Chairman B.J. Thompson, laid out an enthusiastic Go RVing advertising campaign for 2009. The team emphasized that today's RV industry crisis was due to outside influences beyond the industry's control and not because of any lack of popularity of the RV lifestyle.

The show was filled with new and innovative designs, units, and products from manufacturers and suppliers alike. Many manufacturers were showing new, smaller, ultra light-weight towable products designed to be used behind the modern smaller cars and trucks. Green, environmentally friendly, fuel efficient motorized units were in abundance as were hybrid motorhomes, fuel cells and solar panels. While dealer personnel attendance was off over 38 per cent, the number of dealers represented was off only about half that amount at 20 percent. International visitors to the show showed a dramatic increase from past events. Many manufacturers including Thor, Jayco, and Carriage expressed positive interest from the dealers in the new products being presented.

“We had unexpected business,” said Andy Wesdorp, national product manager of Carriage, Inc. “Dealers showed up that we hadn’t prospected. We’re optimistic about 2009.”

“We’re encouraged and pleased by the show,” said Sid Johnson, Director of Marketing at Jayco, Inc. “The dealers we’ve talked with are approaching the economic downturn with the idea of being ready to take advantage of emerging opportunities.”

A total of 8,427 RV dealers, warehouse distributors, accessory store owners, campground operators and exhibitors attended this year’s event — down 38.5% from 2007. Representatives from 1,387 dealerships attended — a decline of 20% from 2007.

“We were pleasantly surprised with the traffic in our display,” said Dicky Riegel, chief operating officer of Thor Industries, Inc. “Dealers responded to our new product development and lightweight designs.”

While supplier booth traffic was slower than normal, many suppliers expressed pleasure in the fact that more OEM personnel than in the past were visiting supplier booths and talking about the many unique new materials and products that were being shown. Thetford introduced a line of environmentally friendly RV care products including cleaners and holding tank related products.

Freightliner introduced a FRED front engine hybrid chassis with a 27,000 pound GVWR that is being used by both Fleetwood and Winnebago to produce highly efficient type A motorhomes. The "ecoFRED" chassis as it is identified, uses a 600 HP Cummins diesel engine coupled with a HEV Electric motor powered by 340 volt batteries charged when the diesel is in operation. The system decides when the electric or diesel engine is appropriate as switches seamlessly back and forth between them. Winnebago also introduced the Via, a smaller Type A coach based on the popular Dodge/Mercedes-Benz Sprinter chassis.

“For many of us, today’s situation is nothing new,” said RVIA President Richard Coon, a 30-year veteran of the RV industry. “We’re a resilient industry that has a history of coming back stronger than ever, even after worse downturns than this one — the oil embargoes and high interest rates in the 70s, for example.”

Next year’s show — the 47th Annual National RV Trade Show — will take place December 1-3 at the Kentucky Exposition Center in Louisville.

About the Author: Al Hesselbart is Historian, Archivist, Writer, Librarian at the RV/MH Hall of Fame in Elkhart, Indiana

Those of us who love the great outdoors and use recreation vehicles (RVs) to pursue a wide variety of related interests are arguably among the most environmentally conscience groups in our society. Whether it's wandering in the shadows of Monument Valley's majestic eroding red wonders, wading hip-high into a pristine Rocky Mountain stream in pursuit of an elusive rainbow trout, winding our way through a Vermont country road amid a mosaic of fall colors or watching migrating humpbacks from an oceanside cliff in Oregon, RV people have experienced nature more personally than most Americans and are more emotionally appreciative of everything it offers.

Most of us have adopted the U.S. Department of the Interior's motto, "Take Only Pictures, Leave Only Footprints," as our personal creed and commitment. Yet there persists a dichotomy of perception of just how "Green" we are.

On one hand on any given summer day you can see a steady migration of RVers en route or returning from lakes and seashores and National Park Service campgrounds are overflowing with RVers from across the country and around the world. On the other hand, you see that they got there in motorhomes with bus-sized diesel engines or trailers towed by large pickup trucks, Suburbans and all sorts of other SUVs.

During the oil shortages of the late 1970s and early 1980s, the RV industry struggled for survival amidst accusations of being "gas-guzzlers," so it doesn't take an enormous stretch of imagination to foresee the industry attacked again during this current crisis.

It's time for the RV industry to starting thinking "green."

With the dire reality of global warming looming over us and awareness of the problems created by our dependence on foreign oil, the RV industry could be an easy target for those looking for a scapegoat.

And if you have been watching recent hearings about a bailout for the auto industry and how Congress has been browbeating that industry for poor business practices and ignoring the changing market to more fuel efficient cars and trucks, you must know that change is being demanded.

It is also apparent that the Obama administration is going to demand higher Corporate Average Fuel Economy Standards (CAFE) which will undoubtedly limit towing capacities and in turn redefine the towable market. In ten years, the U.S. RV market could look more like the European RV market where smaller, lightweight RVs are the norm brought about by comparatively extraordinarily expensive petrol prices over a long period of time.

There are encouraging signs that the RV industry starting to think "green."

The Recreation Vehicle Industry Association (RVIA) recently touted a survey that seems to prove that RV vacations are more environmentally friendly than fly/drive/hotel vacations.

Richard Coon, president of RVIA said, "RV vacations are not only fun, affordable and comfortable for families, this study shows that they're also more green than vacations including flying."

PKF Consulting, a consulting firm with expertise in travel and tourism, found that families of four taking RV vacations generate less CO2 than families traveling on a plane, renting a car and staying in a hotel.

PKF analyzed the CO2 emissions (in tons) of vacations varying in length from three, seven, 10 and 14 days to destinations such as Orlando, Fla.; New Orleans, La.; and Napa, Calif. The RV vacations analyzed included car/folding camping trailer; SUV/travel trailer; Type C motorhome; and Type A motorhome (diesel).

Using the carbon calculator methodology developed by Conservation International, an organization that promotes biodiversity conservation, PKF found that RV vacations, in all cases, had a softer environmental impact than the typical airline/rental car/hotel vacations.

For example, if the family of four was taking a 10-day trip from Minneapolis, Minn., to Branson, Mo., the study showed that a fly/drive/hotel vacation creates 1.81 more tons of carbon emissions than a vacation using a car/folding camping trailer; 1.35 more tons than an SUV/travel trailer trip; 0.92 more tons than a Class C motorhome trip; and 1.26 more tons than a vacation by Class A motorhome (diesel).

There are other signs that the RV industry starting to think "green."

At the 45th Annual National RV Trade Show in Louisville this month, several companies introduced specific environmentally focused products.

Winnebago Industries, Inc., unveiled a full-size Class A hybrid concept RV under the Winnebago Adventurer nameplate.

The Adventurer hybrid concept vehicle features a Freightliner ecoFRED chassis with Eaton hybrid power system components. This is a full hybrid system in that it utilizes two independent power sources (a diesel engine and an electric motor) that work in conjunction to optimally power the vehicle. The Adventurer Hybrid also is the first hybrid motor home to feature an Auxiliary Power Generation (APG) unit that senses hybrid battery power levels and automatically engages the coach's engine to charge the batteries. Because this hybrid system also supplies power to the 120-volt coach system, and on-board generator is not required.

Winnebago's Chairman, CEO and President Bob Olson said, "Winnebago is on the cutting edge of RV hybrid technology with this concept vehicle that explores the viability of advanced hybrid systems in motorhome applications."

Thetford Corporation, a supplier of sanitation and refrigeration products for RVs, showed a variety of environmentally-friendly products at the Louisville show.

These include a new line of Design for the Environment-certified (DfE) “green” RV Care products;

• Eco-Smart, a DfE-certified “green” holding tank deodorant;
• SmartTotes, an improved line of portable waste-water holding tanks;
• Sani-Con, a unique waste-water holding-tank evacuation system, and
• Aqua-Kem, a non-formaldehyde Storage Tank Deodorant for RV holding tanks.

Mary Burrows, Thetford’s manager of chemical development, led the company’s effort to create the DfE-certified environmentally-friendly products which perform at the same level as conventional equivalents.

“Our customers are becoming more environmentally conscious and as a result, we have seen an increased demand for ‘green’ options,” Burrows said.

Thetford recently was granted Design for the Environment status as part of a partnership with the U.S. Environmental Protection Agency (EPA) to create more environmentally-friendly products. Thetford has five products in its RV Care line that have received DfE certification including: Hard Water Spot Remover; RV Wash & Wax; Mildew Stain Remover; Ultra Foam Black Streak & Bug Remover, and Ultra Foam Awning Cleaner.

Protonex Technology Corporation , previewed its new 250 watt fuel cell hybrid power system during the trade show. The Protonex M250-B system will be the first 250 watt fuel cell-based power system to be introduced into the consumer RV market.

The system is designed to provide clean and quiet power for RV enthusiasts without the noise, odour, vibration, and carbon footprint associated with conventional generators.

The M250-B power system leverages breakthrough advances in fuel cell and hybrid power technology developed by Protonex. The proprietary technology blends the advantages of a fuel cell power generator with conventional hybrid batteries, eliminating the many disadvantages associated with gasoline or diesel generators. To power the system, the M250-B will run on safe, clean, biodegradable methanol fuel. The system is configured to seamlessly integrate with existing power components typically found in an RV, including deep cycle batteries, inverters, generators, chargers, solar panels, and alternators.

These examples show that we are making inroads, but there is much more to do.

We can all help just by using a little common sense.

We ran onto story about from an orgainization called the Auto Alliance and what they suggest drivers can do to help address emissions and climate change. It applies to RVs as well.

The Auto Alliance has recently launched a new EcoDriving initiative, a comprehensive, nationwide effort to save consumers money at the gas pump, reduce fuel use and cut carbon dioxide (CO2) emissions. By following a set of subtle and easy-to-use best practices for driving and vehicle maintenance, a typical EcoDriver™ can improve mileage by about 15 percent.

EcoDriving improves mileage in every single vehicle, regardless of vehicle size and age, so it offers an unmatched reach in addressing energy and climate issues by potentially affecting the nation's entire fleet of 245 million automobiles. The program's benefits are potentially huge:

• If just half of all drivers nationwide practiced moderate levels of EcoDriving, annual CO2 emissions could be reduced by about 100 million tons, or the equivalent of heating and powering 8.5 million households.
• If all Americans practiced EcoDriving, it would be equal to 450 billion miles traveled on our roadways without generating any CO2 emissions. That's 1,500 CO2-free miles for every man, woman, and child in the United States each year.

Sample EcoDriving practices include:

• Not tailgating, knowing the proper way to accelerate and brake, using synchronized traffic lights to a driver's advantage, driving at the optimum highway speed, understanding when to use air conditioning and much more.

Sample maintenance practices include:

• Knowing which motor oil to use, understanding the importance of proper tire pressure and what affects tire pressure, understanding aerodynamics and much more.

It's time for us all, whether part of the industry or participants in the RV lifestyle, to start doing our parts to help escape our dependence on foriegn oil and lower greenhouse emissions by thinking green -- Think "RV" Green.

It's a motorhome when you want to go camping or traveling and a family van or cargo van the rest of the time. It's called Escape Pod and this innovative modular, multi-use motorhome is the brain child of California inventor Tom Allen.

A few years ago when RV News interviewed Fleetwood RV founder John Crean, creator of many industry innovations including the Bounder motorhome, he said that most of the innovations in the RV industry then were being created by smaller, entreprenural manufacturers, not necessarily large companies like Fleetwood. He noted specifically the example of the slideout, the creation of Mahlon Miller at Newmar Corporation.

That inspired RV News to keep an eye out for new ideas coming from small companies and we believe that Escape Pod RV fits Crean's description.

The new patented modular RV is designed to fit into all Mercedes/Dodge Sprinter van(s) series here in the U.S. and into the Fiat Ducato and Nissan Interstar van(s) series sold throughout Europe and the Southern hemisphere.

The patented RV is unique, because no longer do you have to purchase a traditional Class B or C motorhome use it for 2 or 3 months, and then store it and pay storage fees.

Allen told RV News, "With our patented product you simply winch the self contained unit from its specialty designed trailer into the associated van, utilize the existing vehicle tie down system to secure the unit, and go RV-ing. When finished, the operator winches the unit from the van back on to the trailer provided (a 10 minute operation), and then stores the unit in their garage - thus no storage fees and the owner/operator of the van keeps the van as a multi-use vehicle.

Unit shown with equipment upgrades including: all stainless steel cooking components, Cheerywood interior, and granite counter tops.

Currently, there are total of six (6) different floor plan/cabin layouts available, and installed pricing with completely self contained unit, vent system, grey water tank installed and associated Class II trailer starts at a MSRP of: $35,410.00 to $49,340.00 depending on floor plan size and cabin fixturing selected.

Allen said, "We also will build out a traditional van conversion interior,built to the specific customer specifications. Our van conversion cost is the same price range as our modular RV.

Started by business partners Allen, inventor and master fabricator, and Alex W. Wallace, attorney specializing in patent law, Escape Pod International is a coach building company with production facility located in Aptos California- near Santa Cruz California, and with a second production facility operating in Porto Alegre, Brazil to serve the: South American, European, and southern hemisphere markets.

Dealer enquires are welcome, we are very interested in establishing a U.S. national dealer network.

For additional information visit www.escapepodrv.com.

As we look at the current economic crisis as it relates to the RV industry, it may be difficult to find any good news; however, there are promising signs.

Anyone who has been in the industry for 25 years or more has seen their share of ups and downs. The late 1970s and early 1980s nearly brought the industry to its knees with oil embargo and fuel shortages. The recession of early 1990s was another period that tested the industry's intestinal fortitude. However, the current ecomonic condition may be the industry's biggest test to date.

The President and Treasurer Secretary have painted a pretty dismal picture in their pleas to Congress to pass the $700 billion recovery package, suggesting that without it, there might be a total ecomonic collapse, not only in the U.S., but worldwide. As we publish this, the President has just signed the recovery package bill.

And the question remains whether or not we are in a "recession" or not. The standard definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters. However, if you a one of those 750,000 people who have lost jobs this year, the question is not argueable -- this is a recession.

The facts that consumer confidence is in the pits and fuel prices have gone through the ceiling has already taken a heavy toll. RV shipments from manufacturers to dealers through August is already down 22.7% from this point last year and the lowest eight month start since 1997. The hardest hit segment is motorhomes down nearly 40% from last year at this time.

We've seen more bankruptcies of RV manufacturers in 2008 than in any period since the late 1970s and early 1980s, including National RV, Alfa Leisure, Travel Supreme, Western RV and rumors have it that Teton Homes is also out of business.

Add to that the current economic picture and the resulting credit crunch, it doesn't take a modern day Nostradamus to predict that more manufacturers, dealers and suppliers might also fall by the wayside before this is over.

Update Since we published this article, RV Stocks have continued to plummet in a volatile market. To see the current status of public RV stock prices, click the link below. See Current RV Stock Prices

In late September financial services and investment firm Robert W. Baird & Co. downgraded three RV manufacturers, saying falling oil prices and early investment in cyclicals has boosted valuations, but fundamentals remain "dreadful."

The brokerage cut Monaco to "neutral" from "outperform," while Thor Industries Inc and Winnebago Industries Inc (WGO) were downgraded to "underperform" from "neutral."

One-Year Comparison of RV Companies' Stock Prices Company (As of 10/10/2008) Oct 2008 Oct 2007 % Change COACHMEN IND INC (NYSE: COA) $2.07 $6.50 -68.2% FLEETWOOD ENTERPRISE (NYSE: FLE) $0.62 $10.00 -93.8% MONACO COACH CP (NYSE: MNC) $1.28 $14.89 -91.4% SKYLINE CP (NYSE: SKY) $19.85 $36.28 -45.3% THOR INDS INC (NYSE: THO) $20.66 $52.31 -60.5% WINNEBAGO IND INC (NYSE: WGO) $9.68 $32.42 -70.1% COAST DISTRIBUT SYS (AMEX: CRV) $2.70 $6.76 -60.1% DREW INDUSTRIES INC (NYSE: DW) $13.09 $44.17 -70.4% SPARTAN MOTORS INC (NasdaqGS: SPAR) $2.67 $18.45 -85.5%

We've seen stock values of public companies plunge downward like an Olympic ski slope. Fleetwood (FLE) and Monaco(MNC) have been hit the hardest. The value of a share of Fleetwood stock that sold for $10 in October 2007 is only worth $.62 now -- a drop and nearly 94%. Monaco hasn't faired much better, down 91% in one year.

It's ironic to suggest that the big winners this year are Skyline Corp (SKY) down 45% and Thor Industries (THO) only down 60.5%.

Privately held companies cannot be doing any better.

High fuel prices, tight credit and falling home values continue to have a negative impact on consumer spending power.

So what are the promising signs in this rather dismal picture?

David Skogebo, general manager of World Wide RV in Mesa, Arizona, told RV News, "We are getting buyers, but unless they have a credit score of 750 or better, banks are not approving credit."

This is in spite of the credit worthiness of RV consumers -- Loans to RV buyers remains at the top of all credit seekers. The delinquency rate on RV loans was 0.95% from 1999-2007 vs. 2.0% for other consumer loans, according to the American Bankers Association Quarterly Delinquency Bulletin.

Don Lee, general manager of Camper Outlet in Tualatin, Oregon, confirms Skogebo's findings. He told RV News, "Our sales are suffering because of the scarcity of credit."

Lee also says there has been a dramatic shift over the past year in what the RV buyer is looking for. He said, "Today, buyers are looking at lighter weight, more fuel efficient RVs."

So that hopeful sign we promised is that people still want to experience the RV lifestyle and when this economic crisis eases there will be a lot of pent up demand. That means that those manufacturers and dealers that survive should benefit from a surge in RV sales.

And there are other hopeful signs.

Despite high fuel prices and a sluggish economy, RV rentals have grown 18% in 2008, according to a survey of RV rental companies conducted by the Recreation Vehicle Rental Association.

Dr. Richard Curtin, Director of Consumer Surveys at the University of Michigan and RVIA consultant in his 2009 forecast said, "Tight credit is causing RV buyers to delay purchases and RV dealers to keep inventories low. RV shipments are anticipated to begin improving in mid-2009 after a slow start to the year, as pent-up demand builds and economic conditions improve. The initial improvement is projected to be concentrated in conventional and fifth wheel travel trailers. Shipments are expected to continue to be lower in 2009 due to high credit standards, increasing food and fuel prices, falling employment, and continued declines in household wealth and home prices. Dr. Curtin predicts 2009 shipments will total 254,700, about 5% lower than the projected total for 2008."

He also believes the RV marketplace continues to look favorable in the long-term. Dr. Curtin projects the number of RV owning households will rise to 8.5 million by 2010.

In its October 2008 RV Business Indicators, RVIA said, "Population and demographic trends favor long-term RV market growth. Buyers aged 35-54 are the largest segment of RV owners, according to the 2005 University of Michigan study commissioned by RVIA. The demographic tidal wave of prime RV buyers remains strongly in the strongest RV ownership age groups. Every day, 11,000 Americans turn 50, according to U.S. Census figures.

"RV sales will benefit as aging baby-boomers continue to enter the age range in which RV ownership is highest. According to Dr. Curtin, by the end of the decade, the number of consumers aged 50 to 64 will total 57 million — 38% higher than in 2000. Today one-in-10 vehicle-owning households in that age group own at least one RV."

The challenge for RV companies over next few months is to survive. That means not taking unnecessary business risks and to the extent possible remain loyal to employees and service former customers -- and oh yes, treating new customers and prospective buyers like kings.

When this turns around, and it always does, the rewards should be significant.