Australian RV boom over

After two years of record growth, the Australian RV manufacturing industry has experienced a setback with 1066 fewer RVs produced in 2012 compared to the previous year.

Figures from peak industry body RVM Australia, show total production of 20,708 recreation vehicles for 2012 – a 4.9 per cent drop compared to the record 21,774 achieved in 2011 and 2.9 per cent, or 619 less than the 21,327 RVs built in 2010.

However, demand for traditional caravans remained strong, with that segment comprising more than half, or 11,306, of overall production – or 927 more than in 2011.

Pop-top production dropped to 5032 (or 24.3 per cent overall) while camper trailers were also down, to 2857 or 13.8 per cent.

All up, towable RVs were down by 4.1 per cent, to 19,810 in total.

Hardest hit were motorised RVs, including motorhomes and campervans, which accounted for just five per cent – or 989 – of overall production. This was a 35 per cent drop, or 533 less than 2011.

The figures come after West Australia’s Fleetwood Corp, builder of Windsor and Coromal caravans, reported another dismal half-year result.

In a report listed on the ASX, Fleetwood said it had “scaled back” caravan production in 2012 as a result of “continued weak trading conditions”.

Fleetwood’s recreational vehicles division, which also includes Camec accessories and Flexiglass fibreglass canopies, recorded first-half revenue for the 2012-2013 financial year of $53.8 million (down 21 per cent).

Profit before interest and tax was $100,000 (down by 98 per cent), although the company incurred a $5.4 million cost from moving Windsor caravan production from Melbourne to its main West Australian factory.

According to
Fleetwood Corp's website, Coromal is the second largest caravan manufacturer in Australia and Windsor the fourth largest. In 2009 the company was forced to cut its RV production by half following the effects of the Global Financial Crisis.

Despite the drop in annual RV production, RVM Australia CEO David Duncan remained upbeat about the industry’s continuing strength. He pointed out it was the third year in a row over 20,000 units and still well above figures recorded during the GFC-affected period of 2007-2009.

“This is the third massive year in a row – 29 per cent above the level reached in 2009 – and early signs for 2013 suggest we can expect another boom year in 2013,” he said.