Several key indicators for the recreational vehicle industry are looking up ahead of the upcoming RV Open House event in Elkhart, Ind., according to a Wells Fargo Commercial Distribution Finance (CDF) analysis of data provided by the Recreational Vehicle Industry Association (RVIA) and Statistical Surveys Inc. (SSI).
CDF reported in a news release that according to its team’s observations, the RV industry is experiencing balanced progress and discipline as manufacturers maintain strong growth in shipments and dealers continue to sell through units. RVIA notes that shipments are up 10.8% over last year and SSI reports that retail registrations have experienced double digit growth. Additionally median dealer revenue is up 24%, according to a CDF dealer analysis.
“Despite a somewhat sluggish economy, interest rate concerns, and a U.S. presidential election year, consumer spending was robust in 2016’s second quarter,” said Tim Hyland, president of Wells Fargo CDF’s RV Group. “Our data shows that dealer inventory turnover is at a strong annual rate of over 2X, and aging is maintaining below 10% – a very positive level.”
CDF said that these numbers are consistent with previous years and are indicative of a healthy market. RVIA is also predicting the industry to grow by 8.3% in shipments for the full year, up from just under 6 percent earlier in 2016.
“In 2017, the economy is expected to grow approximately 2%,” adds Hyland. “Without any unforeseen disruptions, the RV industry should feel good about growth prospects.”