RV SALES CONTINUE STRONG IN 1996

RESTON, Va. -- Recreation vehicle (RV) sales maintained the strength the market has enjoyed in recent years during 1996. The industry approximately matched the heady sales of 1995, signaling its continuing momentum. RV sales in 1994 were the best since 1978, and the two years since have been nearly as good.

Sales growth shifted in 1996 to the high end of the market after two years of strong sales at the low end of the market. Type A motorhomes and fifth-wheel travel trailers posted sales increases of about 7 percent. Sales of Type B van campers were also up, while other categories were down compared to 1995. Expected overall sales of 471,000 units reached within about 1 percent of 1995's level.

"The RV industry is on a roll," said RVIA President David J. Humphreys. "We have had more than 20 percent growth in two of the last five years." In the other years during that five-year span, the industry held on to or added to its gains. "Consumer confidence has been at historically high levels, bouyed by low interest rates and expectations of low inflation rates," said Humphreys.

Attendance at the industry's just-concluded National RV Show in Louisville, Ky. Reached a new high, with the most exhibit space ever sold and dealer attendance up by 7 percent over 1995. The outlook for next year among attendees was upbeat. Dealers and manufacturers alike predicted steady sales for 1997.

This year's trend toward the higher end of the market is not surprising, after several years of strength at the low end, because the first of the baby boom generation is entering its fifties.

In order to attract younger boomer buyers and to expand the current ownership trends, the industry has formed the Go R Ving Coalition and launched a national advertising and promotional campaign.

The current average age of RV owners is 48 years, according to research by the University of Michigan. Ownership rates of motorhomes, conversion vehicles, travel trailers and fifth-wheel trailers reach their highest level among those aged to 55 to 64. This group is posed for rapid growth as the boomers enter prime RV-buying age.

The current growth in popularity of the higher-end models reflects the strong owner demographics the University of Michigan found. The typical RV owner has an estimated income slightly above the national average. A Louis Harris poll of RV owners and those most likely to buy RVs found that 42 percent of prospective buyers are college graduates and most RV owners and potential buyers live in metropolitan areas.

The strength of the 196 RV market boosted all parts of the industry, as suppliers reported strong sales. They also benefited from the trend toward more standard features on new RVs, said Thomas Faludy, President of Carefree of Colorado and chairman of the Go RVing Coalition. He added that he expects more of the same in 1997, thanks in part to the Coalition's planned national television and print media advertising campaign. "We look forward to the excitement generated by the industry advertising campaign," he said.

There are nine million RVs on the road and an estimated 25 million Americans travel in them. Recreation Vehicle Industry Association is the national association representing nearly 500 manufacturer and component parts suppliers, who together produce 95 percent of all RVs manufactured in the United States.