RV industry — and a healthy Minnesota presence — sets up for a smoother 2024 trip

Like a lightweight trailer in the backcountry, the recreational vehicle industry had, at times, an uncommonly bumpy trip in 2023.

Yet, judging from the volume of RV shows (three alone in Minnesota coming up) with new models and features; an attentive, active fan base; and the prospect of a better economy later this year, some RV business insiders predict a smoother ride this year.

Shipments and sales are down …

As of the end of October, manufacturers shipped nearly 41% fewer RVs (about 266,500) compared to 2022, according to the RV Industry Association (RVIA) data. U.S. sales, too, dropped last year. Through October, there were 342,381 registrations, which is 16.4% fewer than those recorded over the same period in 2022.

In Minnesota, Metro RV Dealers Association officer Mike Pearo said overall sales were down about 22%. He said inflation and increased interest rates were among the factors. Pearo, vice president of Hilltop Camper & RV, said COVID-related supply chain problems continued to affect the books, too. Whereas sales outpaced production during the pandemic, the order flipped in the past few years. The arrival of long-backlogged orders, too, contributed to excess inventory on lots like Hilltop's.

… but the outlook is positive

• Production: "We are getting back to even level — meaning normalcy," said RVIA spokesperson Monika Geraci. The group is forecasting about a 12%-16% increase in RVs built in 2024, as many as 350,000 units.

• Used market: Pearo said the used market has been "consistently strong" for several years. Hilltop's used sales were down about 6%.

• Other gauges: Geraci said the public remains interested in buying RVs — or, at least, considering a purchase — judging from the RVIA's regular surveys. Current owners, too, remain committed. "What we also know about the millions of people who bought over the past few years is that they are continuing to use them," she said.

Class B gets high marks

Hilltop also has experienced the rise of the Class B camper van, and sales were steady in 2023 in one of the industry's fastest-growing segments. In 2014 there were only 3,000 Class B van motorhomes; by 2022, there were 17,000. Of course, they aren't cheap. A tricked-out model of Jayco's Swift model, with a pop-top for extra room, is on sale for $140,000. Some models sleep four, with a living area, two-burner cooktop, LED interior lighting, a toilet and more.

Winnebago Industries, the Eden Prairie-based outdoors giant, will unveil updated models of its EKKO Sprinter and Revel among its other new products at a show this month in Tampa, Fla. It remains optimistic for an uptick despite a significant drop in profits last year.

What about electric RVs?

Winnebago has led and innovated on electric RVs. An all-electric prototype eRV2, like the redesigned Revel, promises off-grid power for up to seven days.

Pearo said an all-electric motorhome could arrive "sooner than later." He also said he has seen some towables that generate their own power as they move, which reduces a significant barrier: battery range. "I can see that [idea] getting some legs."

Expect more features and styles

The transformation of his inventory in the last five years has been profound, Pearo said. The traditional travel trailers and park models still reside, but so, too, setups that are lighter and easier to tow; that rely partly on solar power; and that, like his inTech Flyer Pursue models, put a premium on getting into the boondocks with your gear. Layouts with interior-expanding slide-outs have become ubiquitous. Perhaps some of the new styles are evolutions since the pandemic when, for example, some RVs became remote, mobile offices. "There were very creative and inventive ways that people started using them," he added.

Motorhome vs. towable

Go RVing, the industry's marketing campaign, studied the preferences of motorhome vs. towable users. Some takeaways:

• Motorhome owners were likelier to rent an RV before buying; towable owners were more apt to tent camp before buying.

• Motorhome owners are steeped in the social media community and the brand culture. Towable owners leaned heavily on dealership visits and were more concerned with features and layout than brand.

• New motorhome buyers emphasized privacy; towable buyers, on features like slide-outs and new layouts.

Upcoming shows

• St. Paul RV Supershow, Jan. 18-21, RiverCentre in St. Paul

• The Ultimate RV Show, Feb. 1-4, Minneapolis Convention Center

• Twin Cities RV Super Show, Feb. 8-11, U.S. Bank Stadium