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 .
Fri Sep 7, 2018
Author: RV News Staff
REV Group reported its third-quarter results, showing consolidated net sales were $597.7 million, representing growth of 0.4 percent compared to the same period last year. The company’s third quarter 2018 net income was $18.3 million, representing net income growth of 20.4 percent compared to the third quarter 2017.
Adjusted net income for the third quarter 2018 was $24.7 million, an increase of 12.8 percent, compared to $21.9 million in the third quarter 2017. REV ended the quarter with total backlog of $1.2 billion, up 0.4 percent sequentially, representing growth in line with historical seasonality of its businesses, and up 34.1 percent versus third quarter 2017.
“The availability of commercial chassis was a bigger headwind in the third quarter than previously anticipated, and we now don’t anticipate a return to normalcy until the end of the calendar year. In addition, during the quarter we experienced a significant lengthening of other material lead times creating additional production inefficiencies. Together these issues delayed product shipments beyond the quarter within all three of our segments and we expect this to continue through the fourth quarter,” said CEO Tim Sullivan said. “In addition, certain business units including our Class A RV, specialty products, and parts business have underperformed our targets and we are taking specific actions to address these areas. We believe the material and chassis availability issues can be resolved by calendar year end.”
Recreation segment net sales were $197.3 million in the third quarter 2018, an increase of $19.4 million, or 10.9 percent, from $177.9 million in the third quarter 2017. The increase in net sales was due to net sales attributable to our recent acquisition of Lance and increases in net sales across our brand line-up except for Class A motorhomes, which declined compared to the prior year period due to a strategic reduction in the number of models produced and the timing of new model year introductions this fiscal year.
Excluding the impact of net sales from Lance, recreation segment net sales decreased by $15.2 million compared to the prior year period, as a result of the reduction in Class A unit volume. Sales for all other Recreation segment product categories were up in the third quarter 2018 by double-digit percentages versus the same period in the prior year. Recreation segment backlog at the end of the third quarter 2018 was $249.5 million, which was up 72.3 percent from $144.8 million at the end of fiscal year 2017, and up 4.2 percent from the end of the second quarter 2018.
“We expect the Lance acquisition to help accelerate the pace of profitability improvement in the segment over the course of the next several quarters,” said Sullivan.
REV Group recently launched REV Sustainability, a program designed to be transparent to customers and the public about the company’s commitment to environmental stewardship and social responsibility.
The company’s commitment extends across its 30 brands and will include an annual and formal sustainability report.
“From emission-reducing innovations to solar-powered facilities, there are broad sustainability efforts underway across REV Group,” said Sullivan. “REV Sustainability will organize our efforts, allowing us to have a more meaningful impact for our customers, employees, investors and in our communities.
“REV Sustainability will ensure that REV is held accountable to formalized benchmarks, at every level – environmental, social and economic – and across every one of our brands.”
To learn more about REV Sustainability, go to revgroup.com/rev-sustainability.