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Elkhart Truth: RV Industry Anticipating Slight Recovery

The following is a report from The Elkhart Truth.

The recreational vehicle industry saw a modest increase in shipments last month, according to a report by an industry group on Monday, leaving experts optimistic about the industry’s direction this year.

Total RV shipments ended January with 22,674 units, an 11.1% increase compared to the 20,405 units shipped in January 2023, according to the RV Industry’s Association’s monthly survey of manufacturers.

The RV industry anticipates a modest recovery in 2024, bolstered further perhaps by declining interest rates and other factors.

“We continue to be optimistic about the direction the industry is heading this year, and this latest shipment report aligns with the moderate increases we expect in 2024,” said RV Industry Association President and CEO Craig Kirby. “RVing remains one of the most affordable ways to travel and we are encouraged by the excitement consumers have for the RVing lifestyle, evident by strong campground bookings for the upcoming spring travel season and solar eclipse.”

Rich Schnippel, a partner and founder of Elkhart-based Encore RV, said that despite a fire that caused significant damage to the company’s previous building and that forced the company to relocate, the company has maintained steady shipments. It has moved to a new building but still has a significant backlog of orders.

“When it comes to talking to dealers, we’ve noticed that there has been a lot of activity at shows lately,” he said. “Shipments have also increased slightly compared to last year. However, the retail aspect of it still appears to be slow. It seems to be regional – a few areas of the country are doing well, but overall, it’s slow.”

Schnippel said he believes the RV industry is cyclical in nature. While a predicted downturn was coming, most people thought it would be due to COVID-19. However, with social distancing measures in place, people wanted to enjoy themselves, and he said camping became a natural choice, leading to a big boom in Elkhart.

However, Schnippel said he believes sales and production will start to normalize soon.

“With an election year underway, retail buying is always iffy, and the current recession is also a factor. So, when things get back to normal and interest rates come down, it will help the industry immensely,” Schnippel said.

Encore RV, founded in 2021, offers affordable and durable trailers with an all-aluminum frame, no wood and the ability to camp off-grid for several days at prices ranging from $20,000 to $50,000.

Read the full report from The Elkhart Truth here.

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