The good: Americans continue to RV.
As most of my readers know, I’m a full time RVer who loves RVing. I encourage families to enjoy the RV lifestyle and all it entails. Despite the awful economy people will continue to enjoy the pleasures of RVing in 2009 and for years to come.
The bad: Manufacturers and dealers continue to fail.
We're not anywhere near the so called “bottom” when RV sales will rebound. Sid Johnson, the marketing director of Jayco recently said, "Most of the experts who have followed the RV industry closely believe we are at or near the bottom now and the market should begin to rebound by the middle of next year." Johnson blames hard-to-get financing as the culprit.
In a CNBC interview, Avondale RV analyst Kathryn Thompson said any rebound in RV sales in the near future is unlikely, noting that "prospects for a recovery in 2009 remain dim."
RV manufacturer CEO Mike Mitchell said his company could not see enough "light at the end of the tunnel to feel confident that market conditions would improve sufficiently to justify continued losses that would be incurred waiting for the market to return."
He is the CEO of the Chanute, Kansas based NuWa Industries makers of the 5th wheel brands Hitchhiker LS, Hitchhiker Discovery and Hitchhiker Champagne. Today they threw in the towel saying they plan to make, “a graceful exit from the RV industry” by maintaining a skeleton staff at the factory to do warranty work and support dealers with parts until 2010.
I know I’m repeating myself, but for those who may have missed my previous articles, please make sure you have any RV warranty work done before your dealer or manufacturer goes out of business. The sooner you take care of it the better!
Even high end coach maker Marathon booted 150 workers just before Thanksgiving - nice!
According to CNBC Standard & Poors is giving Monaco Coach the boot tomorrow removing them from the S&P SmallCap 600 trading board because they are now worth less than $25 million and the requirement to remain a public traded company with S&P is $200 million.
According the Fresno Bee newspaper, RV king Dan Gamel closed all but one of his dealerships last week and fired 150 employees.
And from Riverside, California we learn that Fleetwood Enterprises, Inc. has been officially notified by the New York Stock Exchange they have failed to keep an average market capitalization of not less than $25 million over a consecutive 30 day trading period. I suppose this means their grandiose financial reorganization plans aren’t working out. Unless they can raise the money soon they are off the NYSE.
The ugly: RIVA goes begging for bailout money.
Richard Coon, president of the RV Industry Association (RVIA) has hired additional federal lobbyists to ensure the RV industry is in line for possible bailout money. Does that sit well with you?
RVIA released the November numbers and they are UGLY! Representing the largest year-over-year decline for 2008 November shipments totaled 6,000 units compared with 21,500 just one year ago. That is a whopping 72.1% decline. No industry can stay and play with these kinds of numbers! These facts continue to bear out my thesis that the RV industry as we know it is history.
Prospects for the RV industry in 2009:
We will continue to see an exodus of both RV manufacturers and dealerships from the playing field. They will attempt to stay afloat by laying off more workers, cutting work weeks and production. They will attempt to restructure their financial obligations by renegotiating their debt through repayment extensions and financial paper manipulation. In 2009 upper management from many of these companies will find themselves in the same position as the employees they’ve recently fired.
A few manufacturers who are better financed will manage to hang on through the year but will find themselves staring into the same deep pit that swallowed the others this time next year. I expect only a handful of RV manufacturers to be standing at the end of 2010.
With the disappearance of dealerships where will you get your RV repair work done? Not to worry, many enterprising RV industry workers and technicians who were laid off will start their own mobile RV businesses to service current RV owners.
The RV “elite” are telling us they have seen this kind of downturn before and they will weather the storm just like they’ve done before. They are putting lipstick on the mule because in reality they are scared to death. They have never experienced anything near this magnitude of economic depression and are hoping and praying customers will start buying RVs again before they loose their livelihood. If you’re working in the RV industrial complex and aren't actively seeking other employment right now, you better get into high gear because the pink slip is on the way.
And for my detractors (trolls), I am not reliant on the RV industry for my income and am therefore free to express my ideas and opinions and report the news as it emerges. If you don’t like what I have to say, then I invite you to stop reading my column. Also, if you don’t have the courage to tell us who you are in the comments section, then I invite you not to participate. Happy New Year - Jim Twamley, Professor of RVing
As most of my readers know, I’m a full time RVer who loves RVing. I encourage families to enjoy the RV lifestyle and all it entails. Despite the awful economy people will continue to enjoy the pleasures of RVing in 2009 and for years to come.
The bad: Manufacturers and dealers continue to fail.
We're not anywhere near the so called “bottom” when RV sales will rebound. Sid Johnson, the marketing director of Jayco recently said, "Most of the experts who have followed the RV industry closely believe we are at or near the bottom now and the market should begin to rebound by the middle of next year." Johnson blames hard-to-get financing as the culprit.
In a CNBC interview, Avondale RV analyst Kathryn Thompson said any rebound in RV sales in the near future is unlikely, noting that "prospects for a recovery in 2009 remain dim."
RV manufacturer CEO Mike Mitchell said his company could not see enough "light at the end of the tunnel to feel confident that market conditions would improve sufficiently to justify continued losses that would be incurred waiting for the market to return."
He is the CEO of the Chanute, Kansas based NuWa Industries makers of the 5th wheel brands Hitchhiker LS, Hitchhiker Discovery and Hitchhiker Champagne. Today they threw in the towel saying they plan to make, “a graceful exit from the RV industry” by maintaining a skeleton staff at the factory to do warranty work and support dealers with parts until 2010.
I know I’m repeating myself, but for those who may have missed my previous articles, please make sure you have any RV warranty work done before your dealer or manufacturer goes out of business. The sooner you take care of it the better!Even high end coach maker Marathon booted 150 workers just before Thanksgiving - nice!
According to CNBC Standard & Poors is giving Monaco Coach the boot tomorrow removing them from the S&P SmallCap 600 trading board because they are now worth less than $25 million and the requirement to remain a public traded company with S&P is $200 million.
According the Fresno Bee newspaper, RV king Dan Gamel closed all but one of his dealerships last week and fired 150 employees.And from Riverside, California we learn that Fleetwood Enterprises, Inc. has been officially notified by the New York Stock Exchange they have failed to keep an average market capitalization of not less than $25 million over a consecutive 30 day trading period. I suppose this means their grandiose financial reorganization plans aren’t working out. Unless they can raise the money soon they are off the NYSE.
The ugly: RIVA goes begging for bailout money.
Richard Coon, president of the RV Industry Association (RVIA) has hired additional federal lobbyists to ensure the RV industry is in line for possible bailout money. Does that sit well with you?
RVIA released the November numbers and they are UGLY! Representing the largest year-over-year decline for 2008 November shipments totaled 6,000 units compared with 21,500 just one year ago. That is a whopping 72.1% decline. No industry can stay and play with these kinds of numbers! These facts continue to bear out my thesis that the RV industry as we know it is history.
Prospects for the RV industry in 2009:
We will continue to see an exodus of both RV manufacturers and dealerships from the playing field. They will attempt to stay afloat by laying off more workers, cutting work weeks and production. They will attempt to restructure their financial obligations by renegotiating their debt through repayment extensions and financial paper manipulation. In 2009 upper management from many of these companies will find themselves in the same position as the employees they’ve recently fired.A few manufacturers who are better financed will manage to hang on through the year but will find themselves staring into the same deep pit that swallowed the others this time next year. I expect only a handful of RV manufacturers to be standing at the end of 2010.
With the disappearance of dealerships where will you get your RV repair work done? Not to worry, many enterprising RV industry workers and technicians who were laid off will start their own mobile RV businesses to service current RV owners.
The RV “elite” are telling us they have seen this kind of downturn before and they will weather the storm just like they’ve done before. They are putting lipstick on the mule because in reality they are scared to death. They have never experienced anything near this magnitude of economic depression and are hoping and praying customers will start buying RVs again before they loose their livelihood. If you’re working in the RV industrial complex and aren't actively seeking other employment right now, you better get into high gear because the pink slip is on the way.And for my detractors (trolls), I am not reliant on the RV industry for my income and am therefore free to express my ideas and opinions and report the news as it emerges. If you don’t like what I have to say, then I invite you to stop reading my column. Also, if you don’t have the courage to tell us who you are in the comments section, then I invite you not to participate. Happy New Year - Jim Twamley, Professor of RVing























































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