CHICAGO, IL — Four years after the height of the economic downturn, participants in the recreational vehicle (RV) industry in the U.S. and Canada believe they’re heading in the right direction, according to survey results released today by GE Capital’s Commercial Distribution Finance (CDF) business.
Forty-three percent of survey respondents said they expect sales to increase by 5%-10% in 2013, and 27% were most optimistic about consumer demand going into next year. However, consumer demand was also the biggest business concern, said 29% of respondents. Consistent financing solutions were the second-greatest business concern, followed closely by product affordability and availability.
"These survey results are consistent with what we are seeing in the market and hearing from our customers," said Tim Hyland, commercial leader of CDF’s RV group. "Consumer demand drives the industry, so it’s naturally an area of optimism as well as concern. However, economic indicators, such as an uptick in housing starts, give us reason to believe that 2013 will be a good year for RV sales."
When asked what trend will have the largest impact on the RV industry, 50% said the popularity of "base" or low-cost models. An overwhelming 70% of survey respondents said travel trailers would be in highest demand, with fifth wheel trailers a distant second at 15%.
"This tells me that the RV industry should continue to attract new consumers and that existing ones will keep trading in older models," said Hyland. "Because these types of models are more affordable, they’re always popular both for new entrants and RV veterans."
The RV industry survey of 150 respondents was conducted Nov. 26-28 by CDF during the annual Recreational Vehicle Industry Association show.
CDF provides inventory financing that allows RV dealers to stock and market inventory. Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-dealer business model. CDF has been supporting the RV industry for more than 30 years. Please visit www.gecdf.com/RV to learn more.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided nearly $32 billion in financing for more than 30,000 manufacturers, dealers and distributors across North America in 2011. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. Customers have access to exclusive online tools and analytics to manage their accounts and inventory. For more information, visit http://www.gecdf.com/ or follow company news via Twitter (@GEInventoryFin).
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.