Rising gas prices and inflation are hitting the RV market. The RV industry is a pretty reliable indicator of where the US economy is going.

It is no surprise that a record number of folks are now enjoying the RV lifestyle. This was fueled by Covid 19, low interest rates, and a strong economy. In fact, the RV industry is still, up to March of 2022, putting out a record number of Travel Trailers/RV’s. Personally, I think most of the numbers right now are being driven by a restocking of dealer lots. Given what is happening with the economy it is my guess that RV shipment numbers may start to decline.

Let’s look at a few of the things that are currently taking place that affect the industry, and of course RV owners.

Gasoline and Diesel Prices are now at an all time record. The National Average for unleaded today is 4.61/Gallon, while Diesel is 5.52/Gallon. Let’s compare and contrast that with a year ago today:

Regular Gasoline was 3.04/Gallon and Diesel was 3.18/Gallon. That is a 51% increase on Regular Gasoline and a 74% increase on Diesel Fuel. The numbers of course get even worse if you look back to 2020.

So what is the impact of all of this. Well a survey done by The Dyrt (Camping App) of its members showed that 60% of those surveyed would change there camping plans.

Even the RVIA projected in March that folks would probably spend 30% more in fuel this year…guess again; it’s much, much higher than that. When fuel goes up, everything goes up because we are a nation that is supplied by trucks running down the highways. When Diesel fuel is 74% more expensive, that increase is spread out across the cargo on that truck. Is it really surprising that 60% of The Dyrts members are altering their camping plans?

But the knife will cut deeper than that because inflation is at the highest level in over 40 years. Therefore, its not just gas campers need to worry about, it’s everything else. This means buying food for your family, making home repairs, energy costs, vehicle repairs; it is all going up. This will drive folks to decide where to spend their money, and my guess is that it probably won’t be on camping. Most campers will probably curtail their camping to places closer to home, or not at all.

RV Loan interest rates are also climbing. What was a 5% loan a few years ago is now closer 6.5% (of course depending on the term).

The recreational vehicle industry provides over $114 billion to the US economy. It also contributes billions of dollars in taxes and employs over 600,000 people. Keep in mind, we are not just talking about the RV Manufacturers; the suppliers of parts, appliances, plumbing and wiring, tires, campgrounds, restaurants, tourism, and banks are affected as well. Think of the ripple effect. Many experts are now predicting a recession.

Isn’t this just a little reminiscent of 2008? Remember what happened during that recession? The RV industry was hit hard and big corporations gobbled up lots of long standing RV companies. In my opinion this was a devastating turn in the RV world. Whenever competition is reduced, unfortunately so is quality. We see that all too often today in the trailers being produced.

Keep in mind, these are just my opinions, I am not a fortune teller on what will happen. However, the indicators are not good, regardless of the number of shipments that are resupplying the dealers lots. Of course the effects of these price increases reach beyond our RV industry. I’m sure other industries, like the marine industry (boating sales), will be drastically affected as well. They are already reporting a drop in sales and slip rentals.

As for us, we have not changed our plans for this year. We will be heading on our yearly trip to Wisconsin which will be over 2000 miles round trip. I know that the fuel will be at least 74% more at this point than it was a year ago. I don’t know what price diesel would need to reach before I would cancel that trip but it’s getting closer each day.