RV Dealers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 2,700 recreational vehicle dealerships in the US sell new and used RVs, replacement parts, accessories, and services. Dealers may provide rental services for RVs and also earn fees for facilitating financing and insurance purchases through third party providers.

Seasonal Sales

Summer is the peak season for RV travel and demand drops quickly in the late fall/winter.

Vulnerability to Economic Conditions

The RV industry as a whole is vulnerable to downturns in the economy.

Industry size & Structure

The average recreational vehicle dealer operates out of a single location, employs 21-22 workers, and generates $12 million in annual revenue.

    • The RV dealer industry consists of 2,700 establishments that employ about 46,600 workers and generate over $26 billion annually.
    • The industry is relatively fragmented, as the top 50 companies account for about 47% of industry revenue.
    • Camping World (Freedom Roads) is the largest RV dealer in the US with over 160 locations. Most companies are small and serve a limited geographical market.
                              Industry Forecast
                              RV Dealers Industry Growth
                              Source: Vertical IQ and Inforum

                              Coronavirus Update

                              Apr 29, 2022 - High Fuel Prices Impact RV Travel
                              • High gas prices will impact travel for 75% of RV owners in 2022, according to Outdoor Miles. Recreational vehicles are notoriously fuel inefficient, with few motorhomes getting better than 15 miles per gallon on an average trip. If fuel prices were to reach $5.00 per gallon – not unlikely in states like California – traveling by RV would cost upwards of $1.00 per mile for some. A recent survey of more than 700 RVers found high gas and diesel prices would impact travel plans, with 37% of RV owners saying they will take fewer trips; 27% saying they’ll travel as planned but cut back elsewhere; 24% reporting no impact at all; and 9% saying they will still travel, but do less of it or stay local.
                              • Pandemic-induced demand for RVs has resulted in a record high shipment projection for 2022, according to the RV Industry Association (RVIA). Nationally, RV shipments ended 2021 with between 567,000 and 587,000 units shipped, a 34% increase over 2020’s year-end total. Before the pandemic caused disruptions, more than 11% of US households owned an RV, according to statistics from Condor Ferries. About 1 million Americans live in RVs full time, and RV ownership grew from 7.9 million households in 2005 to more than 9 million currently. The question for the industry is how much demand will subside as the pandemic wanes. “I think it was definitely a COVID anomaly,” said Rockey Strider, owner of Beyond RV of Oklahoma City. “I think we will see it start to level out in the next two to three years, and then it will just go back to normal.”
                              • RV dealers have "been able to optimize retail pricing in a way they have not been able to do in a long, long time," according to Michael Happe, chief executive of RV manufacturer Winnebago. Higher costs for raw materials, labor, and transportation are driving up RV prices, which have been increased incrementally throughout the year instead of the traditional once-a-year adjustment.
                              • Some dealers are struggling to keep up with sales and service demand as RV ownership skyrockets. In late March 2022, General RV was looking to fill 300 positions nationwide. The company was offering signing bonuses of up to $1,000 and $500 referral bonuses. Strong sales are allowing dealers to expand, but finding salespeople and service technicians can be a challenge.
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