As I headed west on Interstate 80 through Indiana recently, I couldn’t help but notice the number of towable and motorized recreational vehicles (RVs) parked in and around Elkhart, IN. After all, it is widely regarded as the RV Capital of the World, so lots of RVs are to be expected—or is it?
According to Michael Hicks, an economics professor at Ball State University and director of Indiana University’s Center for Business and Economic Research, “The RV industry is an economic bellwether. When consumer sentiment falters or the economy starts to teeter, RV sales follow suit. There are similar stories on the retail sales side: Businesses are seeing softer but improving demand; consumers are showing some hesitancy but still are spending some; and industry members are exhibiting cautious, but growing, optimism.”
The recent drop in interest rates should be the catalyst the RV industry has sought to boost sales. Like many industries whipped into a frenzy of activity during the pandemic, RV sales are starting to improve after a sluggish 2023. According to the RV Industry Association, RV shipments saw a nearly 40% increase from 2020 to 2021. Post-pandemic, there was a nearly 92% decrease in RV shipments from 2021 to 2023.
Results for the RV Industry Association’s (RVIA) August 2024 survey of manufacturers found that total RV shipments ended the month with 29,105 units, an increase of 3.7% compared to the 28,071 units shipped in August 2023.
“RV manufacturers and suppliers continue to build RVs and components with new technology and features to appeal to today’s RV buyers,” said RV Industry Association President & CEO Craig Kirby. “With RVs available at nearly every price point, RVing remains one of the most affordable ways for people and families to travel and make lifelong memories.”
“People don’t make these large, luxury purchases unless they’re feeling better about the economy,” said Hicks, who follows the RV industry closely. “It’s so sensitive to interest rate changes, which often precede a downturn.”
Towable RVs, led by conventional travel trailers, ended the month up 9.6% from last August with 26,245 shipments. Motorhomes finished the month down (30.8%) compared to last year’s with 2,860 units. RVs are up 8.6% compared to last year, with 231,817 units shipped through August.
The Elkhart, IN freight market
Today, Indiana overwhelmingly continues to lead the country in RV production, manufacturing nearly 84% of all RVs in the United States and Canada. Texas remains the top destination for RV shipments, receiving 9.13% of total RV wholesale shipments, followed by California (7.42%), Florida (7.3%), Ohio (3.96%), and Michigan (3.68%).
Reflecting the soft freight market over the past year, outbound dry van freight volumes are 12% lower than last year; inbound volumes are also down, 7% lower than in 2023. There are signs, however, that inbound shipment volumes are increasing following a surge in recent weeks, increasing 17% in the last month.
