Product and Service
Companies included in recreational vehicles sector in sports& recreational vehicles industry primarily design and manufacture or sell recreational vehicles for leisure travel and outdoor recreation activities primarily including motorized motorhome and towable trailers.
Demand for Product and Service
As indicated by the typical company data, the demand for RV of major manufacturers and retailers has grown very fast in the past three years probably as a result of increased income of consumers and increasing availability of credit.
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
The demand for RV has been growing fast in the past several years. Lower price and smaller towable trailers seems to contribute most of growth. Motorized trailers present similar trend as towable trailers.
However, Growth of demand for relatively cheaper towable trailers may be slowing down as indicated by slowing down same store revenue growth of dealers. While the sales in the whole industry have kept increasing it seems that the growth drivers have turned to undeveloped regions, which caused more costs.
The growth in manufacturers’ shipment has been supported by the retailers’ data in the past several years. However, as sales slowed down the demand for inventories of dealers may be not as fast as it is before.
Causes behind the trend
Generally, the demand for recreational vehicles has been related to consumers’ income and other macro-economy factors.
Sales growth has also benefited from credit availability across the whole industry.
Demographic factor and fuel price have also influenced performance of RV sales.
Companies may find that demand will continue to be strong but the growth in demand may slow down.