It’s quite an achievement for both the RV industry & the city of Louisville that this was the 47th year of this prestigious event, however some in the industry suspected early in 2009 that Louisville may not even go ahead! There is no doubt in anyone’s mind that the US RV industry has been in turmoil for the past 18 months, listening to a seminar during the show confirmed this by stating that during this period the industry had lost 22 manufacturers! This sounds like a phenomenal amount, but it gives you some insight as to the size of the industry in America and perhaps dare I say it how bloated it had become. The manufacturers that have survived the ‘winter’ seem to be upbeat during the show and although the show had halved in size the manufacturers that were there had a representative display of their models.
Speaking with US dealers during the show there was definitely a feeling of optimism, many that are still in business have taken advantage from their territory where others have gone out of business. The key word from both dealers & manufacturers was ‘streamlining’, models offered by manufacturers have been greatly reduced and dealers buying stock are being far more discerning with their choice of models. I think this will bode well for the industry in general with better models on offer and quality improving – if a technician on a production line is only building one style model rather than ten their rhythm is unaltered are far less mistakes made.
During the recovery period in the States there has become two clear leaders in the industry with many experts calling it a ‘two horse’ race in 2010 – both Thor (Four Winds) & Forest River are well known in the US & UK however it is more their financial backing & ability to make profit that is making them favourite. Thor are the largest group of RV manufacturers in the RV industry with Four Winds & Keystone being some of their flagship brands, they are financially secure and have just posted a $27 million profit in the last quarter of 2009. Another incredible statistic of Thor’s is that in 41 years of business they have posted a profit every year! For both dealer & customer a like these are facts that are very important in 2010 – people need to know that the product they are investing large sums of money into will be supported. Forest River for those who don’t know was recently purchased by Berkshire Hathaway – the company owned by Mr Warren Buffett aka ‘the Sage of Omaha’. Warren Buffett was listed in 2008 by Forbes as the richest man in the world with net worth of $62 billion, since then he has given large sums of his fortune to charity however his investments are those of legends and it says a lot that he chose Forest River – it also makes them gold plated!
Monaco Coach LLC & Fleetwood like Phoenix from the flames both displayed a good range of models which to the naked eye had not changed dramatically however the structure & production of both these companies will take time. All the stalwarts of the industry were exhibiting including Winnebago, Gulfstream, Newmar & Tiffin and all had cut their cloth accordingly during the downturn to assure they will be in business for many years to come.
Ross Edwards
Managing Director
Travelworld RV
|
News Item - '47th Louisville RVIA Trade Show Report'