Recreational Vehicle sector optimistic

Optimism remains high in the recreational vehicle (RV) industry, according to survey results released today by GE Capital’s Commercial Distribution Finance (CDF) business, although challenges remain.

Two thirds of respondents expect sales to grow next year, with 41% predicting a rise of 5% to 10%, and an additional quarter (26%) saying RV sales will be up between 10% and 15%.

“The RV industry has reason to feel optimistic once again, with strong shipment and retail registration numbers and a relatively strong economy as we close out the year,” said Tim Hyland, president of CDF’s RV group. “Our inventory financing portfolio is also showing healthy aging and turnover metrics, so overall, a solid year once again for the RV industry which should carry over into 2015.”

Travel trailers (50%) will remain the most popular type of RV for the third year in a row, according to survey respondents, followed by motorhomes (25%) and fifth-wheel trailers (20%).

However, the survey results suggest respondents have mixed views about how next year will progress. They were most optimistic about consumer demand (30%), availability of wholesale financing (15%) and product availability (15%). Conversely, the biggest areas of concern were product availability (22%) and consumer demand (20%).

“While there is optimism around consumer demand, the survey shows dealers and manufacturers are mindful of the impact it has both ways,” said Hyland. “The RV industry’s performance is closely tied to consumer confidence and there are a lot of reasons to feel good about next year. However the industry will keep its eye on the economy and remain nimble to fluctuations.”