Continued high unemployment, cash strapped cities and states, trillions of dollars of Federal debt and global economic chaos all spell trouble for a struggling RV industry. Yes, I know the Recreation Vehicle Industry Association (RVIA) is reporting increased RV sales, but these are wholesale deliveries to RV dealers. Newly manufactured RVs will collect on lots all over the nation until one by one dealerships go broke.
You know the story because you've seen it played out before. Stressed out consumers don't buy RVs, boats and other toys that are considered discretionary spending. Both U.S. and Canadian citizens are over their heads in debt and credit markets are still tight. Lending has loosened up somewhat recently, but as soon as economic forces begin to overwhelm our economies the credit door will slam shut again.
The Canadian housing bubble is near it's zenith and ready to pop. The second massive wave of foreclosures is gaining momentum in the United States. The U.S. stock and bond markets are out of control casinos. We've shipped our good paying jobs overseas and more people are on unemployment and welfare than ever before. Charitable feeding programs and food pantries are stretched to the limit. The Federal government keeps printing money to throw at the problem with little or no positive results. The banksters get richer on the backs of the U.S. taxpayer. We have an ecological disaster of epic proportions in the Gulf of Mexico and the North Korean chihuahua bit the leg of his neighbor. There is rioting in the streets of Europe and Asia (more than usual) and here we are whistling past the graveyard hoping for an economic recovery.
This will not end well. RV manufacturers are hanging by a thread already and any stiff wind is sure to break the backs of most. You will be able to count on one hand the number of RV manufacturers left standing after the next leg down. When will it happen? I can't say for sure, but it will happen -- probably sooner than later.
If you're in the market to purchase a new RV (and actually have the money to do so) hang on to your cash and you'll be able to buy at a fraction of the original cost. I personally prefer a well cared for used RV over a new one because all the bugs are worked out and they are cheaper. So, hang on to your hats my friends, the economic roller-coaster ride has just begun.
Saying what others are afraid to even think about - Jim Twamley, Professor of RVing