Rebounding RV Sales May Bode Well for U.S. Economy
Strong motor-home industry has historically been good news for economic health.
NOVI, Mich., Feb. 15, 2010— -- Recreational-vehicle dealers had cause to smile at this weekend's annual Detroit Camper and RV Show. The four-day event was packed morning to night, every day.
And the families who came to see everything from small pop-up camp vehicles to 40-foot luxury coaches with bathrooms, refrigerators and built-in barbecues were in a buying mood.
"Things have been great," Chad Neff, general manager of American RV in Grand Rapids, Mich., said. "The traffic has been good and people are buying."
American RV sells a full range of recreational vehicles from small economic campers that get 23 mpg on a diesel engine to the super powered fifth-wheel Montana, which has an interior floor plan that seems almost as large as a studio apartment. Neff, like many other RV dealers at the show, attributed increased industry sales to the improvement in the availability of credit.
"I think there's a lot of pent-up demand," he said. "People right now, they're willing to get out, and the banks are lending more money, and those things are helping us out."
The increased interest is a dramatic change from last year's show, which occurred amid the backdrop of a weakened U.S. economy and uncertainty about the future. RV enthusiasts weren't buying because of job insecurity and the prospects of losing their homes, leaving little appetite for mobile ones. Several RV manufacturers filed for bankruptcy early last year and even industry giant Winnebago had a rough go at it.
The RV industry has long been thought of as a good indicator of the overall economy's performance because RV's are a major discretionary purchase that often require financing. After a sales slump, which coincided with the worsening economy, and an overall lack of enthusiasm at RV shows last year, 2010 has started with a boom for the industry.
Attendance at this year's Novi, Mich., show was up about 15 percent from last year, according to show director Bill Sheffer, who is with the Michigan Association of Recreation Vehicles and Campgrounds.
