The Board of the Recreation Vehicle Industry Association (RVIA) raised its certification seal fees by $1 this week so the association can rebuild its financial reserves, according to Dave Humphreys, president of the group that represents RV builders and their suppliers.
The increase means RVIA certification seals will soon cost motorhome makers $67 each and travel-trailer and fifth-wheel manufacturers $56 each. Seals for folding and truck campers will cost $45 each.
In his speech at the RVIA annual membership meeting today (Sept. 16) Humphreys did not reveal when the seal fee increase would take effect. His speech covered the decisions the RVIA board made during its meeting Monday (Sept. 15).
Because RV manufacturers now are producing at a rate of a little more than 300,000 units a year, the fee increase is expected to raise a little more than an additional $300,000 a year for the Reston, Va. association.
The board also will ask supplier members to agree to pay higher annual dues to support the association, Humphreys said.
For RVIA’s fiscal year 2003, which will end on Sept. 30, the association’s revenue should total around $11.35 million and its expenses about $11 million. The $350,000 increase in RVIA “membership equity” in fiscal 2003 will raise the association’s total membership equity to about $4.99 million as of Sept. 30, according to Carl Pfalzgraf, vice president of sales at Atwood Mobile Products and RVIA treasurer.
During fiscal 2004, Pfalzgraf anticipates RVIA revenue to total $12.2 million and its expenses $11.9 million.
The RVIA, which is almost 30 years old, had to use its membership equity only once to pay operating costs, and that was during the industry recession of 2001, Humphreys said.
The fee for seals was raised to “absorb normal cost increases,” so the RVIA could add new programs and replenish the funds withdrawn from membership equity during 2001, and because the RVIA’s investment portfolio may not grow as rapidly as in the past because of an uncertain stock market, Humphreys said.
Pfalzgraf said the RVIA has no long- or short-term debt because its office building in suburban Washington, D.C., recently was paid off.