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The Recreation Vehicle Industry Association reports that the RV market remained remarkably strong in the final quarter of 1998 as December shipments once again exceeded all expectations and climbed 14.5% ahead of this same month, one year ago. December's total of 19,000 units represented the strongest final month since 1978 and allowed the year of 1998 to top 292,400 units, up 15% over 1997. Success was evenly split between towables and motorhomes, as both posted solid gains of 14.9% and 15.5% respectively. Seasonally adjusted, shipments in December represented an annualized rate of more than 300,000 units, signaling continued growth into 1999. The Index of Consumer Sentiment see-sawed again in December, slipping to 100.5 in the latest survey, according to the University of Michigan's Survey Research Center. Despite these recent vibrations in the Index it remains at near all-time high levels. Speaking at RVIA's annual Outlook Forum in Louisville in December, noted economist Todd Buchholz told attendees that the national economy would continue to grow in the coming year, citing several fundamental factors that should ensure the country's future economic health. "Strong consumer confidence, continued low interest rates, and a national budget surplus are three factors present in our economy and each should help support an unprecedented eighth year of economic expansion in the coming year," said Buchholz. Towable RVs Deliveries to retailers of all towable RVs raced ahead in December to 14,100 units, up an impressive 13.7% over this same month, one year ago. Totals for all of 1998 were up nearly 15% compared to the prior year with unit shipments at 229,200 units, the best in twenty years. Conventional travel trailers had an outstanding year, growing 25.1% to more than 98,600 units, by far the best year since 1978. Fifth-wheel travel trailers moved up just 7% over the prior year but that was enough to set an all-time record high of 56,500 units. Folding camping trailers finished at 63,300 units, up 9.9% over the prior year and establishing their best total since 1973. Truck campers gained 4.9% with unit totals of 10,800 units. Motorhomes Shipments of all motorhomes were reported at 4,900 units in December, up 16.7% over December 1997, and the best final month for motorhomes since 1984. 1998's total of 63,500 units for all motorhomes was 15.5% higher than 1997 and marked the best total for motorhomes since 1988. Conversion Vehicles Deliveries to retailers of all conversion vehicles improved in the final month of 1998, rising 13.6% ahead of December's total, one year earlier. Earlier declines, however, prevented annual totals from reaching the prior-year levels as seen in van conversion shipments which finished the year 104,600 units, off 14.5% from 1997. Pickup truck conversions totaled 33,100 units for the year, off more than 32% while sport utility vehicle conversions finished at 10,900 units, off 14.8% from the prior year. RVIA For a more detailed look at the 1998 shipment figures we invite you to study the Shipments feature on page 26. Now let's get down to some serious business -- grading ourselves. These year-end figures are a report card for dealers. I suggest you look at the percentage increases in the various segments of the industry and compare that to your sales figures from 1997 to 1998. If you surpassed the industry averages in any one category, give yourself a B. If your sales growth surpassed the industry average of 15% overall, give yourself an A+. For those who fell short of the industry averages, you'll have to score yourself a D. And if you match the industry growth, even though you had a 15% growth, that's only average. Give yourself a C. The purpose of this exercise is another way to analyze your business. Even if you had a 10% increase in sales from 1997 to 1998 and were pleased, you in fact may be falling behind because the shipment figures suggest that the industry grew 15% -- you may not be getting your fair share. So the question really is this. Those scoring A's and B's are doing a lot of things right. Those that had to give yourself D's, may need to look at how you are doing business. Perhaps, your sales team needs more training. Maybe there's a better way to manage your business. Dealers that plan to be around to enjoy the prosperity that the future promises need to prepare for that success today. RV News encourages every dealer that is not participating in the industry's education opportunities to take a serious look at attending seminars and programs such as those offered by RVDA and RVIA. A lot of people in the various organizations are devoting time and money to help dealers become more professional in the businesses. But if history can be the judge, the dealers that are more successful are those that are already taking advantage of these opportunities. And maybe those that need these opportunities the most are missing the chance to become part of that elite group of successful dealers. We've come a long way and the RV lifestyle continues to appeal to large numbers of people who are looking for freedom and adventure. Our message to our dealer readers is simple - prepare to be part of this great and changing time. Click Here For
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