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RV Manufacturers Sees Pent-Up Demand in United States

Class A MotorHomeAfter facing one of the worst downturns in RV industry many dealers are starting to see a pent-up demand for its products. With lack of financing and an uncertain economic future buyers put off their purchase of an RV. But, with the stock market on the rise, low interest rates, buyers are becoming more confident. By all accounts - July is turning out to be the best month for RV sales this year.

According to Pacific Coachworks a Riverside, Calif.-based manufacturer, is returning to full production. The company, which builds the Tango and Tango Twist brands of travel trailers and fifth-wheels that can be towed, laid-off most of its 150 employees in December.


Executives plan to rehire 85 workers immediately. Tom Powell, founder and CEO, said he’s confident the travel trailer market will see a rebound in the fourth quarter, but “we’re still going to remain staffed as though it doesn’t,” he said. He expects to have his full staff back by spring to work at the company’s 66,000-square-foot factory, he said.

RV expert Randy Eaton and best-selling author is also seeing the same trend. “Based on our research and delivery stats for July we are seeing the same trend here. Many RV dealers we have spoken to are very pleased with consumer traffic and feel sales will continue to rise as the economy slowly recovers” according to Mr. Eaton.

Country Coach, a motorhome manufacturer is also seeing the same trend with their dealers. The company in the process of hiring back many of their employees they laid-off a number of months ago.

“There are a lot of people who are optimistic about 2010,” said Jeff Kurowski, director of industrial relations for the Recreation Vehicle Dealers Association (RVDA). But they’re not unrealistic, he said. Industry forecasts indicate that the next year will see an increase in shipments but won’t exceed the volume of shipments in 2005 or 2006. Financing remains a challenge both for dealers seeking loans to buy new models to sell and for customers who have to put more money down.

RV dealers are saying they’re running low on inventory and would like to order more if they can get loans. With low inventories and pent-up demand, large RV discounts may be a thing of the past. Currently, RV dealers have been offering huge discounts to attract buyers but with an increase in traffic many are starting to return back to normal discounts.

If you’re serious about purchasing an RV, now is the time. The window for large discounts will closed soon and with limited inventories many buyers are starting to place custom orders.

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