The market for RVs virtually left the highway in 2009 when shipments dropped to below $5 billion from a high of nearly $15 billion in 2006.* But in a steady turn, the industry has enjoyed substantial momentum in the 3 years since 2009. The Recreational Vehicle Industry Association (RVIA) is projecting shipments to reach $11.7 billion in 2013.
In the first five months of 2013, RVIA reported a 13.3 percent increase in domestic shipments compared to the same period in 2012. Drilling down, RV manufacturers shipped more than 26,000 units in February gaining a 6 percent increase over the same month of 2012—and it had the best February total since 2008. In May 2013, according to a survey of manufacturers, 32,539 units were shipped. A 12 percent increase from the same month of 2012.
There were two primary drivers for the uptick 1) increased consumer confidence in the economy and 2) desire (for families) to escape the everyday stress and routine with a comfortable and affordable get-away. RV retail owners agree; camping is a family affair. The camaraderie that goes with traveling together creates a strong pull that keeps customers coming back. Of course, the spring and summer months always bring tailwinds and so far, dealers’ optimism is high on improved retail traffic and sales.
Luxury RV market surge bodes well for fine wood finishes
Finishers must know, there’s nothing that brings “home” to the RV experience more effectively than the warmth of fine wood cabinetry and furniture. Wood remains a popular choice every OEM supports, though customer demand for color match and exotic finishes are likely to increase. And, in a roving RV, there are few finishes more luxurious and maintenance free than protective polyurethane coatings.
What’s trending in RV interior design sounds more like specs for your dream home. Five-star kitchens, massive stainless steel appliances, HDTV, fireplaces, designer ceilings and ultraplush leather seating are growing expectations.
Industry analysts suggest, and the Wall Street Journal reports, “…it’s the luxury end of the RV world that is (actually) driving the recovery.” There’s a definite spillover to the more moderately priced tow-along trailers as well. For example, Airstream sales rose 15 percent in 2012 compared with 2011. Newly formed Grand Design RV, which launched in January, promises a different kind of business model for their dealers and customers, creating more product line exclusivity, sparing consumers from the marketplace confusion of look-alike clones with different names from dealer to dealer.
Two trends secure continued growth in luxury RVs
1. Glamour Camping
Add “glamping” to your vocabulary. Emerging from across the Atlantic over the last decade or so, glamping is a fusion of glamour and camping. So far the trend has not directly impacted homes on wheels but it doesn’t take much of a leap to see the potential spill over. There is increasing demand from vacationers who want “experiential travel.” And they are willing to pay handsomely for the best of camping without the “uncomfortable” drawbacks. The growing list of amenities found at glamping destinations far exceed anything recreational campers have experienced.
2. Boomer Boom
Baby boomers, people currently aged 49 to 67, account for more than three out of every five new car purchases (62 percent; up from 39 percent in 2001). And the increase is much faster than the percentage population increase in this age group.** Another study found that boomers will spend money increasingly on travel experiences (and less on stuff). More and more, healthy, outgoing boomers will happily trade in their bricks and mortar and the uncomfortable, stress-inducing airline travel for rolling adventures they can control in style, comfort and luxury.
INSIGHT:
The RV represents a stable, growing, recreational sport that is moving swiftly from the mundane to the sublime. RVs comprise virtually every product a home residence would need. Finishers should ready themselves for the on-ramp.
* Figures provide are an aggregate of all motor homes, slide-in campers, fifth wheel and pop up trailers shipped
** Detroit Free Press