If you think your industry has been decimated, consider the RV – Motor home industry. The following companies have gone out of business over the last couple of years: Alfa Leisure, Ameri-Camp, Bigfoot, Chinook, Dolphin, Extreme RV, King of the Road, National RV, Pilgrim International, Sun Valley Inc., Sunline Coach, Teton Homes, Timberland Rv, Trail Wagons, TravelSupreme, Weekend Warrior and Western RV Inc. (Source: http://www.everything-about-rving.com/what-rv-manufacturers-are-out-of-business.html)
Consider the most recent industrial production results from the Federal Reserve. The first chart is a continuous line by month and the second chart is the same data broken down by year. When you look at the continuous line you may wonder if a bottom has been reached and a corner turned. However, the destruction to the industry has been dramatic.
With the potential for looming gas price increases and toll increases, the operating cost will most likely increase into the near future. Since it is very difficult to obtain financing and operating costs will increase, consumer demand will remain low. Low demand will extend the prior graphs at similar levels and the industry will remain devastated. On the cynical side, there is a bright spot to the industry. People that can no longer afford a home can purchase an RV. If there isn’t an RV available for them, then they can rent one of the new mass self storage sheds.
© 2009 Jim Lindell