What if RV manufacturers stopped producing RV's for two years?

[Neal]

Would we even notice if RV manufacturers stopped producing inventory? The pre-owned market is saturated, the deals are amazing, people are practically giving them away it seems. Interesting video I watched the other night:

 

[Underboss]

I see this as a problem for lower end coaches and trailers. If you follow the big newmar dealers, they are selling most units before they even get to the lot.
Families cannot afford anything right now, they are trying to put food on the table, keep their vehicle gassed and running to get to their jobs. A trailer or lower priced coach is out of reach. The market was due to turn around this past spring, but we all know why it did not. Its a domino effect, prices up, interest rates up, its a scary time for many families. An RV is the last thing on their minds.

 

[Texas Clodhopper]

Either I've missed Brett Davis, or he has been quiet. I would like to hear his rebuttal to this particular video.

 

[Underboss]

Either I've missed Brett Davis, or he has been quiet. I would like to hear his rebuttal to this particular video.

Brett has been quiet lately and I can no longer find his videos on the NIRVC website. Brett is extremely intelligent and knows the market and the economy.
His business plan was genius. He did not limit himself to sales and service. The storage was a brilliant idea.

 

[Holdmybeer]

So when the all the plants shutdown what happens to all the employees, the management, the suppliers? Who's paying the mortgage on the property, the liens, the floorplan? All I heard the guy say was he has a plan.
Meantime, the invisible hand of the market will determine who stays in business and who shuts down.
During the pandemic I took a bike into our local bike mart in Richardson, Tx. I've never seen anything like it, the store was nearly out of new inventory, sold out of used bikes and they must have had literally 4-500 bikes stacked against the walls, in the overhead and out on the floor. I commented on it to one of the staff and he said "yeah, this is great, but we're concerned about what happens next. Meaning what happens when the market is saturated, the boom ends and people go back to normal. Richarson Bike Mart has subsequently reduced the footprint of their flagship store in Richardson, Tx. by half while many of the local mom and pop bike shops have folded. What goes up, must come down.

 

[Boat Bum]

He certainly thinks he has all the answers.

 

[MemoriesByTheMile]

I agree with the RVF comments above:
- The upmarket side seems to be selling better than the low to mid market.
- Don’t believe he understands the impact of shutting down the entire manufacturing for month/quarters/years without experiencing an unfathomable loss of worker knowledge and a majority of companies going out of business.
- Brett built a business that was focused on a segment that is somewhat insulated from the rapid economic fluctuations that occur in the low to mid price point markets. Though his videos can be long, his reasoning and thoughts are contemplated and well considered. I respect his opinions much more than the video at the top of this thread.

 

[Kevin D Pem]

I find it hard to focus on one market that is dependent on an entire economy. The influences altering the economy as a whole will determine the outcome without the intervention of one market.

One thing is certain. Forced quotas only delay the pain that all parties endure, and the fall is greater because of it.

 

[Underboss]

Its not just the rv industry . There are many good restaurants closing in my area. They just cannot compete with the rising food prices and folks choosing to eat home or eat cheaper. I had a conversation the other day with the manager of a great local place and he told me he does not know how long he can go with the bleeding. They are losing an average of 10k a month. He thought the recent news might help turn that around but it did not last. His food, energy and delivery costs are through the roof mainly due to fuel prices. And now you add into the mix; screw worm disease, this cyclosporiasis, rising utilities many more will close.
Its not just the rv industry, as once these businesses close, the property owners will no longer have income to cover the property costs. Its a downward spiral in all US industries.
When these businesses close, their vendors suffer. Local electricians, HVAC companies, refrigeration, food and beverage suppliers, local contractors all take a hit.

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[Jim]

Its not just the rv industry . There are many good restaurants closing in my area. They just cannot compete with the rising food prices and folks choosing to eat home or eat cheaper. I had a conversation the other day with the manager of a great local place and he told me he does not know how long he can go with the bleeding. They are losing an average of 10k a month. He thought the recent news might help turn that around but it did not last. His food, energy and delivery costs are through the roof mainly due to fuel prices. And now you add into the mix; screw worm disease, this cyclosporiasis, rising utilities many more will close.
Its not just the rv industry, as once these businesses close, the property owners will no longer have income to cover the property costs. Its a downward spiral in all US industries.
When these businesses close, their vendors suffer. Local electricians, HVAC companies, refrigeration, food and beverage suppliers, local contractors all take a hit.

​

It is indeed a set of dominos.

 

[Kevin D Pem]

It's a little

Its not just the rv industry . There are many good restaurants closing in my area. They just cannot compete with the rising food prices and folks choosing to eat home or eat cheaper. I had a conversation the other day with the manager of a great local place and he told me he does not know how long he can go with the bleeding. They are losing an average of 10k a month. He thought the recent news might help turn that around but it did not last. His food, energy and delivery costs are through the roof mainly due to fuel prices. And now you add into the mix; screw worm disease, this cyclosporiasis, rising utilities many more will close.
Its not just the rv industry, as once these businesses close, the property owners will no longer have income to cover the property costs. Its a downward spiral in all US industries.
When these businesses close, their vendors suffer. Local electricians, HVAC companies, refrigeration, food and beverage suppliers, local contractors all take a hit.

​

Ironic that many trailers from the past were born to travel for a job in the 30's

Now the corporations that came out of that village industry are threatened by the same conditions.