RV production in Elkhart, Ind., is down 20.3% from a year ago, according to RV Industry Association (RVIA) data, and is fanning fears that a U.S. recession may be brewing.
Fox Business reported that Elkhart is responsible for about 70% of RV production in the United States, and some economists use the shipments as a gauge for how the U.S. consumer is holding up.
“The last five or six years it’s boomed to two years ago the most RVs ever built,” said Gary Davis, a “retired” industry veteran of almost 50 years, who spoke to FOX Business from his office in Elkhart. “We couldn’t get enough product out. Dealers couldn’t get enough inventory then.”
Jim Schmucker, acting sales manager at Tiara RV in Elkhart, says that’s what to blame for the recent slump.
“A year and a half … two years ago most of the dealers were having trouble getting product and they expanded their inventory by 20% or 30%,” said Schmucker. “I think most of them have pulled that back and I think the factories overproduced a little bit so that created a bubble, which is what we’re working our way through right now.”
He’s not alone in his thinking.
“The sales are down just a little bit, but we have had record years three years in a row,” said Scot Moody, a sales manager at Total Value RV in Elkhart. “It’s not been a significant dropoff, it’s just not what it’s been for the previous three or four years.” For the full story click here.