With spring sales off to a slow start and dealer/manufacturer inventories higher than normal, many consider June to be a critical juncture for the 2005 selling season.
However there are several issues facing the RV industry that can affect its success not only in the short term but also for the next decade. We asked more than a dozen industry executives what they thought were the most important issues or opportunities. While some of the responses were predictable, many shed light on an array of situations that could alter the industry and market.
Fuel prices
The top question on the minds of many concerns the effect gas prices will have on RV sales. While it?s a concern, after years of fluctuating prices, consumers seem more tolerant of the higher costs.
Although higher fuel prices are the primary reason deliveries of Class A and Class C units are down nearly 11 percent this year, travel trailers and fifth wheels remain popular.
One hidden area where fuel impacts all RV dealerships is the charges they incur for freight, especially material trucked in. In fact, fuel costs are closing in on healthcare as the toughest cost control lines for distributors.
While consumers may be taking a wait--and--see attitude toward purchasing new motorhomes, gas prices also directly impact campgrounds. ?We have done extensive research that shows a direct impact between higher fuel prices and loss of camping nights,? said Jim Rogers, president of Kampgrounds of America. ?Our two--year trend line shows as prices goes up, people adjust their plans and we feel the crunch 30 to 60 days later.?
In 2004, rising gas prices hit the market in May which meant campgrounds were impacted during their peak season. Up to 60 percent of campground sales occur between Memorial Day and Labor Day. ?This year, the reality of higher gas prices hit earlier and we are confident people will rebound to make up for trips they postponed last summer,? said Rogers. ?We?re predicting double--digit improvement in 2005.?
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