The Americans are expected to have gala vacation period on the occasion of the Labor Day holiday. The manufacture and sale of motor homes and trailers mounted, as the vacationers are expected to ride their recreational vehicles. As many as 6 million Americans and their families are anticipated to join this bandwagon.
The manufacturers and the dealers are seeing this as a good sign for the economy. The shipment graph that went down to 166,000 units during recession soars to 300,000 units for the first time since 2007. Manufacturers like, Thor Industries and Forest River controls 68 per cent of the market. Doug Gaeddert commented that the increase in the sale is the result of their promoting recreational vehicle as lifestyle. Another reason is that the classes of people that buy these RVs are not much affected by unemployment, fuel prices or interest rates.
The profit of the growth in the market is shared by both the big as a well as the small manufacturing companies. Winnebago, a small rival company of Thor previously controlled only 3 per cent of the market have currently risen to 31 per cent. In a recent interview, the company spokesperson announced that the third quarter earnings of the Iowa based company doubled approximately to $7.7 million. Whereas Thor, the leading manufacturer made multiple acquisitions over the last few months and has a lion’s share in the market of about 37 per cent. Thor currently own 90 brands in the market.
Many companies have already increased their production anticipating a sudden hike in the rise of sale during The Labor Day vacation. Einnebago increased its production by 48 per cent this year. In contrast to the last year, the motor home shipment skyrocketed to 55 per cent. While of Forest River, the sale soared up to 26 per cent. The General Manager of the company announced that it has done nearly $1 billon business for the last three months. The people seemed to have remained devout holidaymakers even during recession.
Craig Kennison of Robert W. Baird explained that the recession has devasted the automotive industry, but those who survived were in much better position. With the baby boomers rising consumer confidence and favorable economic condition the market experts are anticipating a rise in sale of motors homes and RVs. Pew Research Center analyzed that about 10000 baby boomers will become 65 each day through to 2029. There a craze among this class to possess these vehicles since they provide the convenience of home.