RV Industry Downturn

[klinner28]

Surprised no one has posted this:

Keystone RV announced this week that it is closing two factories, 41 and 705, in Goshen, eliminating 334 jobs from production to plant management, from quality control to receiving.

“The high fuel prices, and the dealers don’t want to buy, buy the units that that we’re producing. So, I guess a lot of them is just sitting. And so, with the fuel prices the way that they are, we no longer have orders.”

The inventory at dealerships I follow have become insane. Can't imagine too many moving with the inflated prices along with high interest rates. This is the prediction most of us believed would eventually occur... I'm sure this isn't isolated and is occurring across the board.

[jetlag]

And then I listen to an episode of the "wingman" yesterday on the radio, where he says Keystone was shutting down/ no warranty servicing etc. Makes you wonder how he came up with that.

[Jerry713]

The still outrageous fuel prices have a big impact for sure.

I think it's going to be a lot more than just RV manufactures. The home market where I'm at in central Texas has been red hot for many years and now is on it's way down. Custom home builders are usually the first to go and they are dropping like flies around here. When interest rates go up 2 points that knocks out a huge chunk of potential qualified buyers.

[THE MEEKER]

I am friends with a local RV co-owner. For the last two years (Covid), they could not keep up with demand. Now they can’t move anything. I was at his dealership a couple of weeks ago for a cup of coffee and we got into a conversation with the Flagstaff/Forest River Rep who was visiting. The Rep told us that Flagstaff was discontinuing their popular A-Frame Pop-Up campers plus shutting down all production facilities until September.

[klinner28]

I go back to the outrageous prices...

The new Eagle TT I bought in 2017 for $30k after discounts is nearly $60k ($78k list) after discounts.

Add to that a new tow vehicle was $67k and now at $85k.

Who is affording that?

[Topperace]

Yep, about the same in all industries now and gonna get worse...

[adsfhjq]

Pretty much all the manufacturers ramped up production during the pandemic and now that that is largely subsided I'm not surprised at all that there's a ton of inventory and manufacturers now have to cut back. And high gas prices Saw this coming a mile away.

[Grumpy]

Originally Posted by klinner28

Surprised no one has posted this:

It was partially earlier.

https://www.jaycoowners.com/forums/f...own-96891.html

[DonC757]

Hopefully, the cost of a campsite (and hotel rooms) will come down. I think they will.

[NYCANCamper]

Yeah, two national dealerships across the highway from each other are fully stocked. Maybe overstocked since there are trailers and motor homes parked all the way to the edge of their land. There's no room left.

It seems prices remain high but with interest rates rising, high gas prices (and maybe a pending recession?), I wonder if some buyers are canceling their orders.

[muckinfuss]

Originally Posted by DonC757

Hopefully, the cost of a campsite (and hotel rooms) will come down. I think they will.

Supply and demand. We have a seasonal site we grabbed a couple of years back right next door to a state park that has about 50% of their sites full hook up. Not only have site prices gone up each of the past three years, getting a reservation is harder than hitting Keno. It's crazy nuts there with how packed it is. Sites, in addition to an RV have two trucks, a boat, an army of kids... All rules of etiquette seem to have evaporated there as well. I think you may find that until people who bought in during the virus decide to peel off and go back to whatever they were doing before they bought into camping.....it's not going to change one bit.

[Onyrlef]

Originally Posted by muckinfuss

Supply and demand. We have a seasonal site we grabbed a couple of years back right next door to a state park that has about 50% of their sites full hook up. Not only have site prices gone up each of the past three years, getting a reservation is harder than hitting Keno. It's crazy nuts there with how packed it is. Sites, in addition to an RV have two trucks, a boat, an army of kids... All rules of etiquette seem to have evaporated there as well. I think you may find that until people who bought in during the virus decide to peel off and go back to whatever they were doing before they bought into camping.....it's not going to change one bit.

Noticed this trending at a LA. State Park a few weeks back. LA. State Parks offer seniors a 50% reduction in campsite fees, this includes water, sewer and elect. w/ discount $15.00 a day. The homeless have zeroed in on this and are setting up semi permanent residencies by tag teaming site reservations. Person 1 reserves for two wks., Person 2 for the subsequent two weeks, then back to person 1. Some of these unfortunate people were entire families living in tents in 100° temps. and some were sleeping in cars. Some of those I talked with had been on the same spot for better than 6 weeks.

[Yooper906]

Originally Posted by Onyrlef

Noticed this trending at a LA. State Park a few weeks back. LA. State Parks offer seniors a 50% reduction in campsite fees, this includes water, sewer and elect. w/ discount $15.00 a day. The homeless have zeroed in on this and are setting up semi permanent residencies by tag teaming site reservations. Person 1 reserves for two wks., Person 2 for the subsequent two weeks, then back to person 1. Some of these unfortunate people were entire families living in tents in 100° temps. and some were sleeping in cars. Some of those I talked with had been on the same spot for better than 6 weeks.

I wish I had an answer or suggestions for these problems, but I'm at a loss without going political.

[Onyrlef]

Originally Posted by Yooper906

I wish I had an answer or suggestions for these problems, but I'm at a loss without going political.

X2

[kirkelli]

Since i started Dry Camping last summer, every RV Park i once had troubles getting RSVP's that i pass-bye are bone dry empty . Some of them have even sent me emails offering huge discounts for booking reservations. One of the parks in Bishop that was impossible to get into was half empty two weekends ago. This current economy is defiantly impacting RV travels. I'm crossing my fingers we'll be out of this mess soon,.

[fr8erfxr]

Originally Posted by klinner28

I go back to the outrageous prices...

The new Eagle TT I bought in 2017 for $30k after discounts is nearly $60k ($78k list) after discounts.

Add to that a new tow vehicle was $67k and now at $85k.

Who is affording that?

Same here! All the people buying RV's for the first time in the past 2 years paying these prices. I would never pay $60k for the TT I bought in 2018 for 32k!

[Onyrlef]

Originally Posted by kirkelli

Since i started Dry Camping last summer, every RV Park i once had troubles getting RSVP's that i pass-bye are bone dry empty . Some of them have even sent me emails offering huge discounts for booking reservations. One of the parks in Bishop that was impossible to get into was half empty two weekends ago. This current economy is defiantly impacting RV travels. I'm crossing my fingers we'll be out of this mess soon,.

The IMF prediction is a looming global recession, doubt there's some deus ex machina going to bail us (America) out of this overnight being as how it's not an economic downturn exclusive to America.

[klinner28]

I've noticed here in the NE - basically NY, DE, PA area, the reservations are roughly the same as pre-covid, just by observation via booking through websites.

It's hard to get weekend spots at KOAs and nicer campsites, but there could be 1-2 sites avail if checking at the right time. There hasn't been not much difference despite the surge in RV purchases.

[Jopopsy]

Originally Posted by klinner28

I've noticed here in the NE - basically NY, DE, PA area, the reservations are roughly the same as pre-covid, just by observation via booking through websites.

It's hard to get weekend spots at KOAs and nicer campsites, but there could be 1-2 sites avail if checking at the right time. There hasn't been not much difference despite the surge in RV purchases.

I've noticed the same.

[kirkelli]

Originally Posted by Jopopsy

I've noticed the same.

You guys must have the cheapest gas in the county...