Whether you work in the RV industry or are just an avid RV enthusiast, no one could ignore the last few years’ increased interest in RVing. The Covid-19 pandemic and subsequent need for safer, more socially distanced experiences meant travelers were flocking to campgrounds and national parks in rented or newly purchased RVs. However, now that things are more “back to normal,” what’s the state of the RV industry? Where is it going in the next few years?
We know that RV sales have decreased in general (at least compared to 2021–2022). Likewise, many travelers have resumed international travel and traveling with their favorite airlines and hotels. But is that going to stay the same? If you’re an RV service pro, can you expect business to level off or decrease further? If you’re a camping enthusiast, can you expect more room to spread out at your favorite RV parks?
Here’s what you need to know about the state of the RV industry in summer 2023.
Experts expect RV shipments to increase once again
RV shipments have declined thus far in 2023, according to the RV Industry Association’s most recent quarterly industry forecast. That said, shipment numbers are expected to rebound in 2024. The association expects RV shipment numbers to top out right around 300,000 units by the end of 2023. Then, those numbers should climb to the mid-300,000s by the end of 2024.
In comparison, in 2020, new RV shipments totaled more than 430,000 units; in 2021, new RV shipments totaled more than a whopping record 600,000 units; and in 2022, new RV shipments totaled more than 490,000 units (still the third-best year on record, according to the RVIA).
This year’s RV shipment decline (and next year’s forecast of more shipments) is all tied to the economy
The RV Industry Association credits the economy for the current state of the RV industry. The association noted that “current economic conditions” have led to fewer households making large, discretionary purchases such as buying a new RV. However, expect consumer confidence to rise later in 2023, while inflation eases and interest rates steady. All of this will (hopefully, as predicted) drive more RV sales in the latter part of the year and into 2024.
Interest in RVing remains high
The RV Industry Association quarterly forecast also mentioned that interest in RVing remains high. Campgrounds are continuing to book up. About a third of travelers are interested in purchasing their own RV. That said, with all the affordable RV rental options that are becoming available, if you’re an RV enthusiast, you might not get to enjoy a less-crowded campground just yet.
Decreased RV demand may mean a better deal
If you’re one of the few RV enthusiasts planning to buy a new RV in the near future, you may be in luck. According to one dealership, as sales slow in 2023, the current state of the RV industry is inspiring some dealerships to offer new RVs at lower costs. This is in order to move inventory and prepare for the incoming, new, 2024 models that are set to take the showroom floor in late summer.
Unfortunately, while this extra inventory may be of benefit to RV shoppers, it’s not a good thing for dealerships. Small operations may struggle with excess inventory.
RV manufacturers may give you a better deal, too
The same dealership did mention that it’s not just dealerships that may be offering better deals this season in an effort to move product. As manufacturers notice the need for more affordable options that can remain appealing given the current economic situation, they’re making changes, too.
More affordable, simplified, streamlined RVs are coming on the market at a lower price point. It’s all in hopes that shoppers will be swayed to make a 2023 purchase.
Supply chain problems remain an issue
Many industries experienced supply chain issues over the pandemic and the RV industry was no exception.
During a normal year, RV production halts and factory closures would have meant a few headaches. With the increased demand for production that occurred over 2021 and 2022, it was an all-out disaster. As demand for RVs went up, so did pricing. Dealerships sold out of in-demand models. As manufacturers rushed to keep up, quality, in some instances, suffered.
And if you wanted a brand-new or custom RV? You’d better have been prepared to wait for it. The waiting didn’t even end there, though. Similarly, RV service centers likewise suffered from long wait times over the last few years. One industry expert recently noted a severe lack of RV technicians within the industry.
Unfortunately, as we look at the current state of the RV industry, the supply chain hasn’t quite bounced back just yet. Since 2022 was still a very strong year for sales, we can only hope that the sales decline in 2023 allows the supply chain to catch up.
The used RV market isn’t immune to changes
The used RV market and private RV sales are not immune to the challenges that come with the current state of the RV industry. Demand for used RVs went up over the last few years as well, and so did the prices.
In late 2021, the average cost of a motorhome had gone up by about $30,000 or more. The average cost of a towable had risen by around $10,000 (via RVTravel.com). However, as of late 2022, prices had begun to decline.
Better prices are, of course, better for buyers. Additionally, though, the continued demand and need for more economically-friendly RV purchases also make the current market attractive to those looking to sell their RVs.
The state of the RV industry in 2023 is more than just new sales
RV purchases may be down overall. Even next year’s predicted higher numbers are nothing compared to 2021’s record-setting 600,000 units sold.
Still, remember that the RV industry as a whole can’t be judged on new RV sales alone. As CEO of Kampgrounds of America Toby O’Rourke pointed out at an industry event earlier this summer, after that initial purchase, the industry enjoys myriad ways to retain those customers and continue boosting the industry long-term.
How an Online Directory like My RV Resource Can Help
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