The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Thu Jul 7, 2016
The exponential growth of the state of Colorado also has had a significant impact on the RV industry.
Tim Biles with Pikes Peak Traveland in Colorado Springs also serves as the Colorado state delegate to the national RVDA. Biles says the population growth has served as a catalyst for several RV dealerships popping up and others still to come.
“As far as business goes, we are definitely feeling the growth expansion for Colorado,” Biles says. “I’ve heard through a mortgage officer at a bank that Denver had increased by an astronomical number. Colorado Springs has grown. We have a four-week backlog for service, the parts (department) has its phone ringing off the hook. We’re now trying to cram in deliveries wherever we can fit them.”
The newest census bureau report says that 682,454 people call Denver home, which is about 18,000 more people than were living in the city a year ago. In other words, about 50 more new people had moved to the city every day over the last year, on average.
Along with the population growth explosion comes another explosion in the housing market and a spike in business development. Biles says he has seen lots of plans to build more dealerships around the I-25 corridor.
“I’m seeing Camping World in Fountain, there’s already a dealership just south of Camping World and another in Longmont,” Biles says. “That whole corridor on I-25 in the Fountain area is going to see a lot more RV dealers. It’s a completely undeveloped area for the interstate location. Those are the things that have already been happening and is now coming into fruition.”
When one business starts up, two more similar to it are likely to pop up right next to it. It’s the nature of business and competition, Biles says.
“Some of it is to tie up the lines,” Biles says. “A company or a dealership might build a small lot in another location. If you want to keep that line tied up for the entire state, you would have to build a location to support that down here.”
As far as the business side of it goes, Biles says it wasn’t always an endless loop of customers this year. While his 2015 business was phenomenal, the beginning of 2016 started off sluggish, but started to come on strong in June. The strange cycle of business in the state, which started off slow, but has come on strong means the future is a little unknown, but it doesn’t appear it will drop off anytime soon.
However, the upcoming election may cloud some of the judgments of many looking to buy an RV, Biles says, because of the uncertainty involved.
“As a nation, we’re so politically divided,” he says. “You’ve got the two strongest candidates, that no matter what sides of the tracks you side on, there’s some pretty big concerns about either one of them. Depending on the direction it goes, it’s hard to say what it means for the future of the country and those who want to spend money and go RVing. Winter is slow to begin with, but how this is going to affect the buying six months from now is hard to say.”
As the state of Colorado continues to expand and bring new people in every day, it’s going to give RV businesses and dealerships the chance to expand and grow their businesses even more.