Reuters: RV Industry Rolls Through U.S. Shortages, Inflation

The recreational vehicle industry has done what many U.S. businesses did in the face of this year’s epic shortages and surging inflation: Churned out more products and made more money than ever before.

Winnebago Industries Inc reported record fiscal 2020 revenues in October - up over 50% from the previous year. On Friday it is expected to post its second straight quarter of sales over $1 billion and a 33% increase in earnings per share, according to analysts’ estimates compiled by Refinitiv.

Thor Industries Inc, the largest producer, last week reported record results for its fiscal first quarter while noting its backlog as of the end of October was over $18 billion - a 100% increase over a year ago.

Michael Happe, chief executive of the Forest City, Iowa-based Winnebago, said in an interview that his company’s retailers have “been able to optimize retail pricing in a way they have not been able to do in a long, long time.”

The RV industry is a prime example of how many U.S. producers have been able to thrive despite COVID-related shortages - and the related price increases in raw materials, from steel and plastic to electronics and foam. The surge in RV sales began early in the pandemic, as worried Americans looked for ways to travel without the risks of staying in motels or riding in airplanes.

All types of outdoor-oriented industries have boomed during the pandemic. Sales of swimming pools, boats and all-terrain vehicles all surged after initial lockdowns.

Labor shortages also are bedeviling the industry, which has struggled to fill jobs in production hubs like northern Indiana, where Thor is based.

Despite all these barriers, the industry is producing and shipping more than ever. Wholesale shipments of RVs in North America are expected to hit a record 602,200 units this year - a 40% increase over 2020 and 19% higher than the last record high set in 2017, according to an analysis prepared for the RV Industry Association. The analysis, by ITR Economics, is projecting a smaller increase of 2% in 2022, to 613,700 units.

Find the rest of the Reuters article here.