'We have to compete' urges Aussie manufacturing legend

Jayco founder Gerry Ryan remains optimistic about the future of Australian RV manufacturing, and plans to set up a new association to protect local manufacturers from the increasing threat of cut-price imports.

The well-known businessman and philanthropist has sat on the board of the Caravan Industry Association of Australia, which runs the RVMAP compliance program, and been an outspoken advocate for the local industry for decades.

But in a recent GoRV TV podcast, Ryan claims the industry is not doing enough to promote a level playing field.

"They've done nothing to address the issues with compliance," he said.

"The national body is not listening to what their members want... We're getting a bad reputation, it's so easy to get into business.

"Go to China, bring out a few caravans, put a sign on the front fence and you're in business."

The Jayco boss expects a drop in annual retail sales this year, from 40,000 to about 25,000, as local manufacturers' share of the market reduces to around 45 per cent.

Jayco remains on top with a market share of around 30 per cent, but he says a key to survival is to join forces and work together.

"I work with the fellow manufacturers because I want to see them survive," he says.

Ryan says he has met with rival manufacturers and plans to make an announcement about the formation of a new manufacturers' association, before the end of the year.

"I had a meeting 12 months ago and rallied the manufacturers together and said 'Hey I'm not the competition, the competition is China'.

"It's healthier for everyone if we have the same playing field and the same compliance we have to meet," he insists.

Ryan admits "there are some great imported products," but it's important to "make sure they have a service network and you can get spare parts... It's one thing to produce it, another thing to service the product".

He says Jayco is able to compete with the cheaper Chinese caravans due to the scale of its business, investment in automation, and its strong dealer network.

"We can probably build a caravan in 30 per cent less time than our competitors because of our volume," he explains.

"We've just spent $2million on new equipment that will save (the cost of) around six people.

"China gives a 13 per cent rebate for any export, so we have a disadvantage. The cost of doing business in Australia is certainly higher than in China.

"At the end of the day it's a free market. I like a level playing field. We just have to compete."

Jayco currently offers around 150 different models, but the mix is constantly changing and Ryan says the key is to always listen to what the customer wants.

He says the best Jayco built in the manufacturer's 50 year history, is "the next one".

"It's not all about price... Customers want to spend and you look what they're doing with 48V off-grid, they know what they want. We just have make sure we're up to producing the products they want to buy."

As far as trends go, he expects the recent surge in motorhome sales to continue.

"It will continue to grow; maybe around 20 per cent of the market will be motorhomes," he predicts.

"I think Australian manufacturing isn't dead. We just have to think differently and act differently to what we did 12 months ago," the high-achieving septuagenarian concludes.

Ryan has also had a lot of success investing in Australian sport and other ventures over the years, but sees a major difference between winning in sport and succeeding in business.

"In sports there's a siren or finish line. In business there's not, it's 24/7. If you decide this week you're going to back off in design or marketing, your competition is coming right behind you and they will pass you."

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