ELKHART — The RV industry is looking toward continued growth this year as memories of the Great Recession begin to fade.
It was only seven years ago that the industry was in dire straits. A few short years after hitting their peak of 390,000 units in 2006, RV sales had plunged 65 percent by 2009. With gas prices circling $4 a gallon, many RVers left their motor homes in the driveway rather than shoulder the cost of a vehicle that might get — at best — 10 miles per gallon.
"The RV industry follows the cycles in the economy. When times are good, RV sales are good, but when the economy goes bad, RV sales are terrible," said University of Michigan economist and industry analyst Richard Curtin in 2009. "It will take time for the industry to fully recover."
Fast-forward seven years, and things have reversed. The average for gas is $1.78, the economy is on stronger ground and consumer spending is swinging upward.
“Last year marked the longest period of sustained growth in the past 50 years,” said the Recreation Vehicle Industry Association’s new president, Frank Hugelmeyer. “The industry has recovered from the recession, and we’re looking forward to sustained growth into the future.”
New projections by Curtin just released by RVIA show that industry shipments will reach 381,100 units in 2016, a 2 percent increase above 2015. If the upward trend holds true, the end of 2016 would mark the seventh straight year — since the end of the recession — that RV shipments have risen.
“The favorable RV outlook is based on continued gains in jobs and wages, as well as low inflation and interest rates,” said Curtin. “Although interest rates, inflation and gas prices will move up in the future, there is no reason to expect a sudden increase during the year ahead.”