February 2010
Volume 35 - Number 7


Contents



Features
January 21, 2010 353
Prepared by Recreation Vehicle Industry Association
2010 RV Business Indicators


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RV Shipments and Sales Data

  • 2009 shipments. RV shipments in November, 2009 were more than double the total shipped in the same month the previous year. On a seasonally-adjusted annual rate, November shipments reached 225,000 units, topping 200,000 units for the fourth consecutive month. Shipments reached their lowest point in the first quarter of 2009, but have improved steadily since then. Lower shipments in 2009 were caused by the longest and deepest U.S. recession since the 1930s, the tightest credit conditions in several decades, job losses, falling household wealth, slower growth in real incomes, and historically low consumer confidence. Shipments are projected to total 159,500 in 2009.
  • 2010 projection. RV shipments are projected to total 203,500 units in 2010, a 27.6% increase from the projected 2009 total, according to RV industry analyst and director of consumer surveys at the University of Michigan Dr. Richard Curtin. Gains are expected as negative financial factors give way to improved market conditions.
  • The RV industry is seeing signs of improvement, and the recovery is expected to strengthen slowly as credit availability, job security and consumer confidence improve:
    • Primary demand for RVs remains robust, as indicated by improving dealer sales due to price discounting and strong RV show attendance. Dealer inventories have been reduced by retail sales, although low consumer confidence and America’s struggling economy caused consumers to delay major purchase decisions. A delay in purchasing means future sales potential and renewed growth in shipments.
    • Despite the economic downturn, 15 new RV manufacturers began business operations in the past year. In response to shrinking dealer inventories and gradually improving sales, manufacturers and suppliers begun rehiring laid off workers and returning to five-day production weeks.
    • The credit worthiness of RV consumers 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. Current limitations on RV credit are expected to gradually diminish over time since RV owners are, on average, excellent credit risks.
    • Federal economic credit and stimulus packages, which include provisions to stimulate RV lending and friendly tax treatment for new RV purchases, may help promote sales and aid in the RV industry’s economic recovery. One provision in the stimulus bill provides a deduction for sales or excise taxes on the first $49,500 of a new motorhome purchase. Inclusion of RV consumer loans and RV dealer floor plan loans in the Term Asset-Backed Securities Loan Facility (TALF) could ease credit and stimulate RV lending. The Small Business Administration’s decision to guarantee loans made to RV dealers could further help the RV industry.
  • Shipments history. Shipments in 2008 totaled 237,000 units, down 32.9% from 2007. After five consecutive years of record growth, RV shipments dropped 9.5 percent in 2007 as consumers postponed discretionary purchases due to the U.S. economic slowdown. Shipments totaled 353,400 — the fourth highest in the past quarter century. 390,500 RVs were shipped in 2006, the best annual total in the past 25 years. Total RV shipments in 2006 were 1.6 percent higher than 2005 — the fifth consecutive year shipments grew. RV wholesale shipments totaled 384,400 units in 2005. In 2004 RV shipments topped 370,100. For a historical chart showing RV shipments by year, go to: RVIA Historical Glance.

RV Travel Trends

  • RV ownership and travel is a great value. The 2008 PKF Vacation Cost comparison study showed that a family of four can save 27-to-61% on vacation costs by traveling in an RV, after factoring in ownership costs and fuel. Even with higher fuel prices, more than 80% of RV owners say their RV vacations cost less than other forms of vacation.
  • Shorter trips close to home. Research shows that RVers spend more time enjoying campgrounds and less on the road to save fuel. With more than 16,000 campgrounds nationwide, RVers also save by staying closer to home.
  • Fuel cost analysis. Analysis of potential fuel cost increases shows that fuel prices would need to more than triple over current levels to make RVing more expensive for a family of four than other forms of travel. “While fuel costs are a component of the overall vacation cost, fluctuations in fuel prices aren't significant enough to affect a family's decision of whether or not to take RV trips over other types of vacations," said Kannan Sankaran, PKF's lead researcher for the study.
  • RV parks and campgrounds across the country report that reservations in 2009 were 8% better than they were in 2008. RV rentals were up 12% in 2009, according to a survey by the Recreation Vehicle Rental Association.

Other Factors Behind RV Industry Growth

  • IRS tax deduction. For most RV buyers, interest on their loan is deductible as second home mortgage interest.
  • 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.
  • Lifestyle trends continue to spur demand for RVs. RV owners overwhelmingly said in recent surveys that their RV makes it easier to take more frequent weekend getaways or mini-vacations that accommodate busy family schedules.
  • Go RVing ads build demand. More than two million consumers visited GoRVing.com in 2009 as the industry continued its aggressive outreach. The ads have been updated with a new theme line, “Go Affordably. Go RVing.” Details: GoRVing.com.

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 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 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.
  • In 2010 the RV industry celebrates its 100th anniversary. A century ago, the popularization of the automobile, improving roads, and America’s passion for exploration gave rise to mass-produced, manufactured recreation vehicles, and the RV industry was born. Through war and peace, booms and busts, fuel lines, fads and the cyber revolution, the RV lifestyle has endured.

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September 25, 2009 246
New Report Examines Camping Trends

As budget-minded Americans return in droves to the outdoors this summer, The Outdoor Foundation, in partnership with The Coleman Company, Inc., released the Special Report on Camping -- a new research report detailing important information and trends on car, backyard and RV campers in the U.S. Among other findings, the report reveals a sizable 7.4 percent increase in car and backyard camping in 2008.

"In today's economy, people are returning to simpler lifestyles -- the 'less is more' ethic," said Christine Fanning, executive director of The Outdoor Foundation. "Reservations for campsites and sales for camping gear are up. Camping provides fun, affordable opportunities for families to enjoy time together."

The Special Report on Camping uses the latest participation data collected annually by The Outdoor Foundation to present detailed information on participation by gender, age, ethnicity, income, education and geographic region -- critical information needed by businesses, communities and non-profits working to connect Americans with the outdoors.

Among the key findings of the study are:

  • 33.7 million Americans ages 6 and older participated in car and backyard camping in 2008 - an increase of 7.4%.
  • 16.5 million Americans participated in RV camping in 2008; up from 16.2 million in 2007.
  • Camping participants made more than 597 million outings in 2008, averaging 14 camping days per participant.
  • More than 84% of camping participants participate in multiple outdoor activities.

"These findings are very encouraging from our industry's standpoint," said RVIA President Richard Coon. "More people camping means more potential RVers."

Camping plays an important role in helping Americans rediscover the outdoors. As the Special Report on Camping reveals, camping is an important gateway to increased participation in outdoor activities and a healthy active lifestyle. Research shows that a large majority of camping participants take part in multiple outdoor activities -- over 84 percent of campers.

The Special Report on Camping is based on extended analysis of unreleased data collected for the Outdoor Recreation Participation Report, produced annually by The Outdoor Foundation. The report uses the responses of over 40,000 Americans ages six and older captured in an on-line survey covering 114 different activities. The survey is the largest of its type examining participation in sports and outdoor activities.

To download the full report, visit: http://www.outdoorfoundation.org/research.camping.html.

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September 02, 2009 229
1910-2010: The RV Industry Celebrates 100 Years of Exploration and Innovation

A century ago, the popularization of the automobile, improving roads, and America's passion for exploration gave rise to mass-produced, manufactured recreation vehicles, and the RV industry was born. In 2010, Recreation Vehicle Industry Association (RVIA) and the RV industry will mark this centennial with an array of special activities celebrating the 100-year journey of a uniquely American product.

In 1910, there was no TV, no air conditioning and no phone, but there were RVs. Through war and peace, booms and busts, fuel lines, fads and the cyber revolution, the RV lifestyle has endured and is still going strong, even in today's challenging economic times.

"Think about how far we've come in the past 100 years in terms in technology, yet the reasons to RV remain the same," says RVIA President Richard Coon. "RVing has been able to thrive and grow because people still enjoy the freedom that it provides."

The industry will celebrate its centennial in 2010 with a series of events that showcase today's innovations and new products while emphasizing America's century-long love affair with RVs.

"Recognizing and celebrating the 100th anniversary of the RV industry is a unique opportunity to tell our story to the media and public," says Coon.

The roots of RVing are as old as pioneers and covered wagons. But 1910 is the year that America's leading RV historians — David Woodworth, Al Hesselbart and Roger White — cite as the beginning of what has become the modern RV industry.

"The first motorized campers were built in 1910," says Woodworth, a preeminent collector of early RVs and RV camping memorabilia. "Before then, people camped in private rail cars that were pulled to sidings along train routes. The year 1910 brought a new freedom to people who didn't want to be limited by the rail system. RVs allowed them to go where they wanted, when they wanted."

Hesselbart, archivist for the RV/MH Heritage Museum in Elkhart, Ind., also pinpoints 1910 as the birth of the RV industry. "Camping has been around for centuries, but 1910 is when the first auto-related camping vehicles were built for commercial sale."

Known as "auto campers" or "camping trailers" a century ago, these vehicles were a forerunner of today's modern RVs.

"There were one-offs [individual units] built prior to 1910," says White, an associate curator for the Smithsonian Institution. "But 1910 is a good benchmark for the industry."

"The 1910 RVs offered minimal comforts compared to today's homes-on-wheels," says Woodworth. "But they did provide the freedom to travel anywhere, to be able to get a good night's sleep and enjoy home cooking. One notable exception to today's RV was the bathroom. In 1910, it was usually either yonder tree or yonder bush."

Hesselbart points out that one brand of auto camper in those days was equipped with a bathroom onboard. "Pierce-Arrow's 'Touring Landau' had a potted toilet," he says.

A version of today's Type B van camper, the Pierce-Arrow "Touring Landau," was unveiled at Madison Square Garden in 1910.

In addition to Pierce-Arrow, there were several other companies or auto-body builders producing motorized RVs. These companies and innovative products were featured in a Popular Mechanics issue in 1911, but Woodworth says the motorhomes highlighted in the article were actually built in 1910.

Camping trailers made by Los Angeles Trailer Works and Auto-Kamp Trailers also rolled off the assembly line beginning in 1910. Hesselbart says the earliest RV on display at the RV/MH museum is a 1913 trailer, ancestor of the contemporary travel trailer.

Photos of 1910 RV models appear in White's book on the history of RVing and exist in both Woodworth's and Hesselbart's libraries.

To mark the centennial, RVIA is creating a special 100th anniversary logo and commemorative decal that everyone in the industry will be invited to use in their own promotions and marketing. RVIA is planning an industry party on June 7 during the 2010 Committee Week in South Bend, Indiana, to which media and political guests would be invited.

RVIA will soon announce details of an RV caravan led by Woodworth with one of his early RVs, as well as a menu of celebration and promotion ideas for dealers, campgrounds, clubs and shows to use on their own.

"Celebrating our centennial will create excitement and pride throughout our made-in-America industry and provide an opportunity for manufacturers, dealers, suppliers and campground owners to unite under one banner," says Coon. "For 100 years, we've been helping Americans explore their scenic treasures and heritage more comfortably, affordably and enjoyably. That's something to celebrate."

Source RVIA
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August 28, 2009 227
This Labor Day weekend, incorporate some new kid-friendly activities into your RV vacation
Camping Fun for Kids Before School Starts


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Labor Day weekend is the perfect time to spend camping in your RV with family and get your last taste of summer before the kids are back in school. Camping is one of the most enjoyable activities for kids during the summer months. This Labor Day weekend, incorporate some new kid-friendly activities into your RV vacation for a trip your kids will never forget.

Scavenger hunt
There is so much for kids to see, explore and learn about during a camping trip. Create a scavenger hunt for camping fun and to strengthen your kids' knowledge of the natural environment. Kids will enjoy scrambling around the campground to gather, photograph and spot these elements in nature.

Switch up s'mores
The classic s'more assembled with marshmallows, chocolate and graham crackers has proven to be the ultimate campfire treat for many years. Allow your kids to make s'mores using alternative ingredients for a tasty twist on an old favorite. Supply different types of cookies to replace the graham cracker and another filling to replace the milk chocolate. Good milk chocolate alternatives are white chocolate, cookies 'n cream chocolate, peanut butter cups and mint chocolate.

Photo fun
Give your kids a disposable camera and encourage them to take photos of their camping trip. Send them searching for things like animal tracks, birds, butterflies, bird nests or whatever else may be in the area you're camping in. When the trip is over, have the photos developed and have them create a scrapbook of memories.

Crafts with nature
Have your kids collect as many items of nature they can find. Supply your kids with art supplies like glue, construction paper, crayons, paint, markers, glitter or whatever else you have on hand to make unique crafts with the objects they collect.

The Michigan Association of Recreation Vehicles and Campgrounds (MARVAC) is a statewide, non-profit organization dedicated to encouraging growth in the recreation vehicle and private campground industries while contributing to the quality of Michigan tourism. For more information, visit MARVAC's Web site, www.marvac.org

Source Michigan Association of Recreation Vehicles and Campgrounds (MARVAC)
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August 14, 2009 218
Joins Five MH Inductees at Gala Ceremony
Five RV Industry Legends Inducted into RV/MH Hall of Fame

The 2009 Class of inductees for the RV/MH Hall of Fame was inducted at a gala dinner and program attended by over 400 industry leaders at the Hall of Fame new headquarters in Elkhart, Indiana, on Monday August 4. The reception and dinner was pointed out by some veteran attendees as the only remaining industry affair where key leaders of both the recreational vehicle and the manufactured housing industry are together nationally. Those inducted for 2009 are:

RV Industry Inductees

Richard A. Susan Bray Hal Fowler David Garvin Peter J. Liegl
Richard A. "Dick" Baidas Susan Bray Hal Fowler David Garvin Peter J. Liegl

Richard A. "Dick" Baidas (deceased), General RV Center, Wixom, MI, RV Retail
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.

Susan Bray, Good Sam Club, Ventura CA, Association Executive
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.

Hal Fowler, DTI RV Appliance Parts, Middlebury, IN, RV Supplier
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 RVDA. He is recognized for his maintenance of a huge inventory of parts for obsolete RV appliances and other parts.

David Garvin, Camping World, Bowling Green, KY, RV Aftermarket Supplies
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.

Peter J. Liegl, Forest River, Elkhart, IN, RV Manufacturer
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.

MH Industry Inductees

Kevin Clayton Timothy J DeWitt Donald Glisson Jake Hannon Kristian Jensen Jr.
Kevin Clayton Timothy J DeWitt Donald Glisson Jake Hannon Kristian Jensen Jr.

Kevin Clayton, Clayton Homes, Maryville, TN, MH Manufacturer
He has been named MHI Industry Person of the Year 3 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.

Timothy J. DeWitt. Michigan MHA, Okemos MI, MH Association Executive
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.

Donald F. Glisson Sr. Triad Financial Services, Jacksonville FL, Finance
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.

Jake Hannon(deceased), AAA Mobile Homes, Tucson, AZ, MH Retailer
He grew his business to become Arizona's #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.

Kristian Jensen, Jr. Jensen's Inc., Old Saybrook, CT, MH Communities
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.

The RV/MH Hall of Fame Award, formerly the Carl A Ehry Award, was presented to Joe Kelly, Executive Vice President of the Iowa Manufactured Housing Association for his untiring support to the Hall of Fame and his leadership efforts in gaining the support of 32 state housing associations for the foundation.

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 or industry tenure.

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