The RV industry’s shipments are projected to total approximately 169,500 units in 2010 — a 24 percent increase from the 136,500 predicted for 2009 — according to a new forecast by RV industry analyst Dr. Richard Curtin, released at Recreation Vehicle Industry Association’s (RVIA) Annual Membership Meeting on June 9.

Seasonally adjusted shipments reached their low point in the first quarter of 2009, and gains are expected over the next two years as the negative financial factors that caused the steep drop in RV sales will slowly give way to improved conditions in the market.

Dr. Richard Curtin, director of consumer surveys at the University of Michigan, who produces the closely-watched monthly Index of Consumer Sentiment, briefed RVIA members on his analysis of the industry’s future at RVIA’s annual Committee Week, held June 8-11 in Washington, DC.

“The persistent appeal of the RV lifestyle as well as the good economic value provided by this form of recreation will energize future growth in the RV market, once again driving the RV market to higher levels,” said Curtin.

In addition, RVIA President Richard Coon addressed key issues critical to the industry’s long-term profitability, including the need to continue RVIA’s work to secure sufficient RV wholesale and retail financing, vehicle fuel economy, and the growing “green” movement.

Dr. Curtin said there is considerable uncertainty about the future course of the economy as well as future RV sales. This uncertainty means that RV shipments in 2010 could as much as 15 percent more or less than his forecast.

“This is the longest and deepest U.S. recession of the past half century,” said Dr. Curtin. “However, while fluctuations in sales are expected, there has been no change in the strong preferences expressed by consumers for the RV lifestyle.”

Consumer confidence has surged in recent months because of optimism about the Obama administration’s economic stimulus efforts and financial reforms, which RVIA worked hard to be sure included the RV industry. While these programs will aid consumers, Curtin says the pace of gains in RV sales will be more gradual than in the initial phase of past recoveries because of lingering effects from the credit crisis, slow economic growth, and higher levels of unemployment. In addition, the priorities of many consumers have shifted toward debt repayment, and restoration of savings and retirement accounts.

Dr. Curtin emphasized that economic adversity has caused consumers to postpone the purchase of an RV but not to forsake their commitment to the RV lifestyle.

“The RV industry is in the business of helping families form lasting bonds and having a great time getting outdoors,” said RVIA’s Coon. “Those are core American values that will endure and create a lasting demand for RVs.”

Leveling jacks and slideouts lead the Coach-Net Top Ten RV Fixes for 2008 list, which tallies the items that generated the most phone calls in 2008 for Coach-Net assistance regarding coach- and towable-related components.

Coach-Net, a leading provider of emergency roadside assistance for RVers, provides a 24/7 on-call staff of RV Master Certified Technicians to help RVers, either with over-the-phone instruction or by arranging assistance from authorized mobile mechanics and RV service centers.

“We are releasing this list to give RV owners a heads-up about the kind of things that RVers have found most troublesome or annoying, so they can pay extra attention to these areas,” said Patrick Cipres, RV technical service manager for Coach-Net. “These all involve components that RVers should make sure are in good working order before they hit the road, and which they should know how to handle and how to troubleshoot if necessary.”

“Of course they can count on our expert help if needed, but we hope that it won’t be,” said Cipres.

Either leveling jacks or slideouts usually lead the top ten list, said Cipres. “Leveling jack concerns range from basic operation and power requirements to troubleshooting failures,” said Cipres. “The most common call on leveling jacks is retraction failure. Two options that we offer are a walk-through on how to manually retract or dispatching a mobile mechanic who will help get the jacks fully retracted. We will then locate a service center to have the concern diagnosed and repaired.”

Retraction failure is also the main problem people run into with slideouts, said Cipres. Coach-Net also fields a number of basic operational questions, including power requirements, for the slideouts.

Electrical 110v concerns, including shore power connections, appliance power requirements, and basic troubleshooting with such things as GFI testing and resetting procedures, were No. 3 on the list.

Here is the complete list of Coach-Net Top Ten RV Fixes for coaches and towables in 2008:

1. Leveling jacks
2. Slide room
3. Electrical, 110v
4. Batteries
5. Electrical 12v
6. Plumbing — fresh water
7. Water heater
8. Exterior accessories
9. Generator
10. Furnace

Common issues with the rest of these components include knowing what appliances require 12v power; how to fill the fresh water tank and city water connection requirements; purging and filling the hot water heater; starting the generator; basic operation and power requirements for the furnace; re-attaching awnings undone by high winds while driving.

Coach-Net has also assembled a list of top chassis concerns, led by various engine problems including odd noises, maintenance needs, low power concerns, fluid leaks, turbo charger issues, and a vast range of minor and major failures. The top ten list for chassis.

1. Engine/exhaust
2. Brake systems
3. Chassis electrical
4. Wheels-tires
5. Transmission
6. Cooling system
7. Fuel system
8. Suspension
9. Gauges
10. Axle

Calls about the rest of these components most often involve operational failures, operational and maintenance questions, fluid leaks, and basic performance requirements and concerns.

“RVing is a lot of fun, but there are also a lot of operational systems involved,” said Cipres. “These lists offer priorities to focus on in terms of maintenance and education to ensure trouble-free operation. At Coach-Net, we want to do everything we can to provide our members with the best RV experience possible.”

The RV/MH Hall of Fame today announced the election of the Hall of Fame class of 2009. The class will be officially inducted on Aug. 3 in Elkhart.

Those to be honored as selected by the RV/MH Heritage Foundation Board of Directors are:

• RV dealer Richard A. “Dick” Baidas (deceased), General RV Center, Wixom, Mich. -- He was a long-term industry promoter and board member of the Michigan MH and RV Association. He has been a principal in the founding of 10 different RV and MH manufacturers. He built his RV dealership into the largest in the country at one time.
• RV association executive Susan Bray, Good Sam Club, Ventura, Calif. -- She is a 30-year leader of the RV industry’s largest consumer organization. She has served for 25 years on the Board of the American Recreation Coalition, and on the Advisory Board for the U.S. Department of Transportation’s Scenic Byways program. For 25 years she has been a valued collaborator with the RVIA Legal Affairs Staff. She was a key promoter of the “Take Pride in America” program to increase volunteer service on public lands that has been adopted by the Department of the Interior.
• Mobile home associatione executive Tim Dewitt, Michigan MHA, Okemos, Mich. -- As a 30-year executive director of Michigan MHA, he is recognized by his peers and his members as a dynamic spokesperson for the MH and RV industries and a leader in developing positive promotions for both.
• Mobile home manufacturer Kevin Clayton, Clayton Homes, Maryville, Tenn. -- He has been named MHI Industry Person of the Year three times. He is the leader of what has been identified as the most dynamic team in the housing industry. He was the leader of the sale of his company to Berkshire Hathaway giving an enormous credibility boost to the industry.
• RV supplier Hal Fowler, DTI RV Appliance Parts, Middlebury, Ind. -- He built what is now the largest distribution center in the country for supplying repair parts to RV dealers and repair facilities. He has served as a board member of WDA – the Warehouse Distributors Association and as an active member of RV Dealers Association. He is recognized for his maintenance of a huge inventory of parts for obsolete RV appliances and other parts.
• RV aftermarket supplier David Garvin, Camping World, Bowling Green, Ky. -- He built the world’s largest RV supply and service business, and owned and operated a large RV park. He revolutionized the marketing of RV aftermarket products and services with customer satisfaction as the guide.
• Financier Donald F. Glisson Sr., with Triad Financial Services, Jacksonville Fla. -- He has brought over 250 commercial banks into serving the MH industry, and was selected as MHI Lender of the Year. He built a small local finance institution into a highly respected national leader.
• Mobile home retailer Jake Hannon (deceased), AAA Mobile Homes, Tucson, Ariz. -- He grew his business to become Arizona’s No. 1 housing retailer, and established an early customer service program. He developed a popular market research program for housing retailers, and developed 11 sales centers with annual sales of $52 million. He was twice elected MHI national retailer of the year.
• Mobile home community developer Kristian Jensen, Jr. Jensen’s Inc., Old Saybrook, Conn. -- He is a respected member of the MHI board and chairman of MHI Communities Council, Northeast MHA, New England MHA and all state associations where he has communities (NH,CT,NJ,MD,NC,SC, and GA), He was the National Community Operator of the Year 2000, Has received recognition for the best land-lease community in the nation in both the, over 150 sites, and under 150 sites classes.
• RV manufacturer Peter Leigl, Forest River, Elkhart -- He is a long time industry executive developing several companies. He built his company into the nation’s largest towable RV manufacturer. Most recognized for building his company into one of the industry’s largest and selling it to Warren Buffett, bringing Berkshire Hathaway into the RV industry.
• The RV/MH Hall of Fame was founded in 1972 and has inducted over 300 pioneers and key leaders of the industry through its 37 years. Honorees are selected for their exemplary contributions to the growth and development of the greater industry and not primarily for their personal success.

Gary and Valerie Berman (right), who spoke to Outlook 2009 attendees on the potential appeal of RV travel and camping to the Latino market, are market research experts based in Coral Gables, Florida. They have compiled the following facts and tips for RV industry members to help in outreach to the rapidly growing Hispanic market.

Get to Know Your Hispanic Consumer

• 45.5 million — the estimated Hispanic population of the United States as of July 1, 2007. Hispanics are the nation’s largest ethnic minority group, constituting 15 percent of the U.S. population, according to the U.S. Census Bureau.
• Hispanics comprised nearly half of the nation’s population growth from 2006 to 2007.
• By 2050, the Hispanic population in America is projected to reach 132.8 million.
• Hispanics are a diverse group. 70% are of Mexican origin, 9% are Puerto Rican, 4.1% are Cuban, 2.7% are Salvadoran, and 2.6% are Dominican.
• Know the particulars of the Hispanic population in your local trade area:
• National origin/ethnic breakdown
• Language use
• Socioeconomic status
• Length of residency
• In 2006, there were 9.9 million Hispanic family households — 62 percent included children younger than 18, and two-thirds were headed by a married couple.
• The median age of the Hispanic population in 2007 was 27.6 years. This compares with 36.6 years for the population as a whole.
• By 2010, Hispanics will have purchasing power of more than $1 trillion.

• Family — People of Hispanic origin have a fierce sense of family unity and loyalty. Elder family members stay in the family, which blurs the line between America’s traditional view of nuclear and extended families. Expect larger groups of shoppers and campers than you may be used to.
• Group Orientation — Leisure for Hispanics is a group activity and for connection with others. This could make the idea of RV caravans appealing.
• Language — 34 million U.S. residents (12% of the population) speak Spanish at home. Roll out the welcome mat — literally. Buy a “Bienvenidos” doormat, invest in Spanish language signage and literature, and consider language skills in your hiring and training decisions.
• Enjoyment of Life Now — The moment matters. Hispanic customers tend to be spontaneous and need patient support through the pre-purchase process. They also want to create family memories for the future. In your marketing, emphasize that as RV owners, their families can enjoy frequent getaways more affordably than any other type of travel.
• Relationships and Humor — Food, music and laughter are important. Support Hispanic customers in the pre-purchase process by working to establish relationships and provide information. Offer a cup of coffee as a greeting. Play multicultural music in your place of business.

During RVIA’s Outlook 2009 breakfast kicking off the 46th annual National RV Trade Show, diversity experts Gary and Valerie Berman gave advice on how the RV industry can embrace, engage, and profit from the Hispanic market in the future.

According to the Bermans, America’s estimated Hispanic population exceeds 44 million people — 15 percent of the nation’s population. Hispanics had purchasing power of $863.1 billion in 2007, a number projected to grow to $1 trillion by 2010. The Bermans urged RV manufacturers and dealers to reach out to Hispanics in an effort to tap into this large and growing market.

“It’s been widely reported that the Hispanic population is growing three times faster than the general population,” said Gary Berman. “What isn’t as widely understood is how the pace of change is affecting the political, social and economic nature of the U.S. The Hispanic market is not only growing, it’s growing everywhere.”

The Bermans offered tips on how the industry can relate better to Hispanic consumers and culture. They also highlighted key cultural hot buttons that characterize the Hispanic market. These include a preference for group leisure activities, which could indicate a desire for RV caravaning; a fierce sense of extended family unity and loyalty, which could lead to an interest in larger RVs; and a desire to enjoy the moment, suggesting that RVs could become part of the American dream for Hispanics.

“Hispanics are always looking for ways to reinforce strongly held cultural values, yet still be part of the American mainstream,” said Valerie Berman. “This means that if invited and welcomed, Hispanics will visit your showrooms and embrace the RV experience to strengthen bonds among their family and friends.”

The Bermans’ appearance in Louisville is part of RVIA’s work to expand outreach to diverse markets and media. RVIA research shows that Hispanics and African-Americans in particular share key values with other RV buyers, and many have strong interest in purchasing someday.

“When targeting the Hispanic market, we need a ‘back-to-basics’ approach that uses a ‘think nationally but act locally’ execution,” said Gary Berman. “Understanding local market composition, travel patterns, and usage occasions for Hispanics can help shape your business building strategy.”