The following is a report from The Spokesman-Review.
As interest rates and inflation dug into Americans’ pocketbooks, their budget for recreation activity took a hit – hurting Inland Northwest RV and boat dealers.
But a slew of Spokane, Washington, conventions this month aims to revive dipping sales.
This weekend, it’s the National RV Show at the Spokane Convention Center. Next weekend, it’s the Inland Northwest RV Show at the Spokane County Fair & Expo Center. And the weekend following is the Spokane Boat Show, also at the fairgrounds.
From Thursday through Jan. 21, the Inland Northwest RV Show will host seven local dealers and welcome some 12,000 visitors, according to Chris Cody, show director for the event.
“Vendors look forward to the event and are competitive to move inventory off their lots this time of year,” he said. “Just this weekend they will sell over 100 units.”
According to Chris Hickerson, general manager and partner at RVs Northwest, the conventions this month in Spokane and elsewhere in the Inland Northwest will lend valuable insight into the year ahead.
“I think by the end of January, we’ll get a good perspective of what the market is going to look like for at least Q1 through Q2,” Hickerson said. “But shows that have already started in the last week have not been favorable. They’ve been tough.”
The downturn in sales of recreational and leisure vehicles, like RVs and boats, follows a surge during COVID.
In 2021, 600,240 RVs were purchased, a record and an increase of 39.5% over 2020, according to RV Industry Association (RVIA) data.
But sales have been falling since. In 2022, 493,268 vehicles were purchased. This is far below pre-pandemic numbers.
According to Hickerson, sales are down 40% from before COVID, an unprecedented figure during his 22 years in the industry.
“When sales surged, the manufacturers couldn’t keep up with the number of units that the consumer wanted,” he said.
But as restrictions lifted and manufacturers ramped up production, supply began outstripping demand.
“Even 10 months ago, the market was different. There’s a lot of supply available, but market conditions like high interest rates have caused consumers to be skeptical of buying,” he said. “And we’re not selling beds or cars here; people have to have those. We sell something that is expendable cash – we’re selling lifestyles.”
Other recreational industries have followed a similar trajectory.
In 2020, boat sales reached levels not seen since before the Great Recession. According to data from the National Marine Manufacturers Association, sales of powerboats, sailboats and personal watercraft peaked in 2020 at 318,654 units, totaling $50.3 billion.
But in 2022, new powerboat sales decreased 13% year-over-year. Compared with 2019, 2022 sales were 6% lower. Preowned boat data shows 2022 sales down 13% year-over-year, but up 3% from 2019.
Read the full report from The Spokesman-Review here.