Australian RV production down in 2012

The RV production boom that saw the number of RVs manufactured in Australia rise by 25 percent over the past two years, appears to have come to an end.

According to latest figures supplied by the Recreational Vehicle Manufacturers Association of Australia (RVMAA), Australian RV production year-to-date is down 5.3 per cent compared to the same period in 2011. A total of 15,587 RVs were produced to the end of September, compared to 16,457 in 2011.

As in previous years, towable RVs make up the majority of 2012 production so far, at 14,857 or 95 per cent overall. Of these, traditional caravans continued to dominate, with 8313 (53%) of overall production, followed by 3940 pop-tops (25%), 2533 camper and tent trailers (16%), 53 slide-ons and 18 fifth-wheelers.

Non-towable, or motorised units account for just 730 of year-to-date production, or less than five per cent.

“The caravans have certainly held up in terms of production (but) the motorhomes are not travelling as well,” says RVMAA CEO, David Duncan.

“They were at one stage down by around 40 per cent, but as at end of September this year they were only 27 per cent down, so they’ve picked up a bit.”

Based on current trends, the RVMAA predicts an end-of-year total of around 20,200, which would amount to an eight per cent drop compared to the 2011 figure of 22,083.

The motorised market, which includes A,B and C-Class motorhomes, is set to take the biggest hit, with a projection of 973 – down 33 per cent, from 2011's total of 1455.

Duncan points to continuing economic uncertainty combined with the generally higher cost of motorised RVs as factors “denting the confidence” of buyers.

Another reason for the slowdown could be “that the record levels of the previous two years were not sustainable, we’ve had a correction”.

He points to the fact that 2012 production is still likely to be higher than most years, including those of the GFC period prior to 2010. The RV industry body has been compiling statistics since 2004, when RV production totalled 16,900.

“It’s not gloom and doom by any means,” says Duncan.” I talk to manufacturers a lot and... they’re not jumping from the roof-tops or anything like that. They all seem to be reasonably busy, I have to say.”

He says the RV sector remains a “strong market” particularly in conventional caravans, as buyers continue to be “motivated by the value offered by RV holidays”.

The RV industry also remains one of few shining lights within Australia’s struggling manufacturing industry.

“There are not many manufacturing sectors these days you can say that are going gangbusters,” he says.