Saying Good-bye to 2016
We recently read an article that claimed that one out of every three people surveyed thought that 2016 was NOT a good year. The presidential election was unusual, a lot of treasured celebrities left the planet and let’s not talk about some of the planetary bad news. Can you see a photograph of a polar bear without feeling sad these days?
But we digress.
We are here to talk about what 2016 looked like from an RV perspective… and from that point of view, it was a very good year indeed.
According to a spokesman for the Recreational Vehicle Industry Association (RVIA), 2016 has “surpassed our expectations”, despite the fact that expectations were rather high when the year started. Much of the news about the RV industry comes out of Elkhart, Indiana, the virtual center of the RV industry. In 2009, Elkhart County had a 19.6 unemployment rate… high by any standards. Nowadays, the rate is hovering around 3 percent, quite a turnaround!
2016 was actually the best year the RV industry has had in the last forty years.
What explains this phenomenon?
Every day at Sky River, we talk to baby boomers who are retiring or getting close… and many of them are dreaming of getting on the road. The freedom of a day and a road ahead, with no particular place to go, is calling a lot of 52-70 year olds who have been working all their lives and are ready for a change. About 11,000 baby boomers are projected to turn 65 years old each day over the next 15 years… and a lot of them are going to be buying an RV to enjoy adventures and make memories with their new free time.
In a time when the country seems divided, emotions are running high and there is a lot of pain and confusion. Buying an RV is a positive move that gives a family an opportunity to spend quality time together, get away from the hustle and drone of daily life and get outside where Nature provides the best solace for troubled souls. The healing powers of traveling and exploring together are legendary and needed now more than ever. An RV provides a way to get away easily… even a weekend away from normal life brings welcome relief.
Also, 2016 saw a flood of first-time RV buyers. And many of those buyers are younger people who have both disposable income and a passion for staying connected while still traveling. RV manufacturers have met their expectations with increasing amounts of technology built in to their vehicles, everything from phone charging stations to Bluetooth enabled entertainment centers.
While baby boomers remain a key market for RVs, younger buyers have been driving sales lately, CJS’s Moore said. They’ve been active in the lower end of the market, typically purchasing travel trailers in the $15,000 to $30,000 range, he said.
Millennials are being seen as the next great RV market, preferring in general to spend money on experiences and adventure… exactly what an RV brings to the table.
Despite the fact that it was an election year, there is a generally positive outlook among people that the economy is improving, helped along by low gas prices and cheap credit. That gives buyers more confidence that they can buy and enjoy an RV without sacrificing their current living standard.
What about the future?
The RVIA predicts that the future is bright for the RV industry. The RV industry has come back strong as the US economy has also 
improved in the last few years. Right now, more than 9 million households own an RV, and that number is up over 60 percent from 1980. RV shipments are set to increase 4.4 percent next year, according to RVIA (87 percent will be towable units, and the remaining 13 percent will be motorhomes).
“We are optimistic about continued growth into next year due to favorable economic conditions.” RVIA President Frank Hugelmeyer said in a statement. “Inflation and interest rates are near historic lows; a more vibrant economy has created jobs and reduced unemployment to near its lowest levels in decades; wages are finally showing signs of improvement; and household wealth has begun to accumulate toward record highs. These are all working in the RV market’s favor.”
The RV manufacturing group ranks as the 14th group with the best growth record in 2016 out of 197 industry groups tracked by Investors Business Daily. All signs point to an even better 2017.
Sky River… Adventure Starts Here!
At Sky River, we are here to help both first time and repeat buyers figure out just what kind of RV is best for them, and which one will give them the most adventure and memories for their money. We have the largest selection of RVs in Central California and are looking forward to a great 2017!
Give us a call or come by today… and have a Happy New Year!
