The following is a report from the South Bend Tribune.
The RV industry continues to show signs of coming back to life after enduring a downturn caused largely by an oversupply of inventory on dealer lots.
For the third consecutive month, RV shipments were up compared to the corresponding month a year prior. In its most recent report, the RV Industry Association reported that January shipments increased to 22,674, an 11.1% increase compared to January 2023.
“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 are expecting in 2024,” Craig Kirby, president and CEO of the trade group, said in a release.
“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,” he added.
Towable RVs led the comeback, ending the month up 21.1% compared to January 2023, while more expensive motorhomes were down 25.5% compared to January 2023.
RV shipments started slipping in June 2022 and the downward spiral continued through October 2023 as a result of inventory that built up on dealer lots following the surge in demand during the pandemic. At the same time, higher interest rates and economic uncertainties also softened demand.
But through most of the shipment downturn, registrations for new RVs outpaced production, meaning that excess inventory was the largest cause of the problem, according to RV industry officials.
“There were about 380,000 RV registrations last year, but there were only 313,000 produced,” Monika Geraci, a spokesperson for the RV Industry Association, pointed out, citing sales data compiled by the firm Statistical Surveys.
“We’re forecasting that we should see some moderate gains in 2024,” Geraci said. “Momentum will continue to build, and the most significant increases will be seen in the second half of the year.”
In its most recent quarterly forecast issued last week, ITR Economics predicted that 2024 shipments will range from 334,700 to 350,100 units, an increase ranging from 8.8% to 18.8% increase compared to 2023.
Read the full report from the South Bend Tribune here.