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grows as boomers hit the highways
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RV
industry grows as boomers hit the highways By Susan Kelly,
Reuters
Sun Jun 6, 2004
Provided
by:
ELKHART,
Ind., June 6 (Reuters) - The recreational
vehicle capital of the world is in the
midst of a hiring boom.
In the sprawling manufacturing plants
south of Interstate 80-90 in Elkhart
County, the scene resembles a bustling
construction site, the sound of drills
buzzing in the air, as plumbers, electricians
and carpenters work at outfitting
the giant rigs with all the comforts
of home.
Despite record-high prices at the
gas pump, the Recreational Vehicle
Industry Association expects sales
of RVs to reach their highest level
in 25 years, fueled by middle-aged
Americans' increasing affinity for
the big fuel-thirsty rigs.
"It's
a challenge for us to get good employees
right now," said Jim Mac, marketing
director for RV maker Monaco Coach
Corp., which operates four plants
in the Elkhart area.
Although Wall Street has worried that
high fuel costs could curb consumers'
enthusiasm for RVs, the industry so
far shows no sign of slowing. The
improving economy and Americans' desire
to spend more time with their families
are helping to set the pace.
The jobless rate for Elkhart County,
where one in four workers is employed
in the RV industry, is an enviable
4 percent, a full point below the
average for the state as a whole.
"This
is the baby-boom generation that has
fueled remarkable increases in demand
the past several years and will continue
to do so in the next decade," said
Richard Curtin, director of consumer
surveys at the University of Michigan.
As more families with children join
the traditional RV market of active
retirees, the age of the average buyer
has fallen to 49 from 51 three years
ago. More and more enthusiasts have
college educations and white-collar
jobs, mirroring changes in the U.S.
population overall.
"There
is substantial demand for the RV lifestyle,"
Curtin said. "People find it a very
satisfying and fulfilling way to travel
and participate in outdoor recreation."
GAS-PRICE WORRIES
Nowadays, higher-end vehicles come
with such conveniences as entertainment
systems, washer/dryers and walls that
slide out to expand rooms. But smaller
and more affordable towable models,
pulled by a sport utility vehicle
or pickup, are also selling well.
RV shipments began to accelerate at
the start of this year, as the economy
improved, and jumped nearly 22 percent
in April from a year earlier, when
the Iraq war slowed orders. With demand
strong, manufacturers have been able
to pass increases in raw material
costs on to customers.
Still, worries about the potential
impact of high gas prices on sales
have weighed on shares of RV makers
like Winnebago Industries Inc., Fleetwood
Enterprises Inc. and Coachmen Industries
Inc. in recent weeks. Motor homes
get about seven to 10 miles to the
gallon.
The Arab oil embargo and fuel shortages
of the early 1970s dealt a blow to
the industry, but high fuel costs
alone failed to make a lasting dent
in RV sales in the past.
"This
time could be different," BB&T Capital
Markets analyst Kathryn Thompson cautioned.
"There was such a dramatic increase
in fuel prices that it may delay consumers
from buying the product."
For now, some RV owners plan to scale
back their summer travel itineraries
to offset the higher fuel costs.
Retired computer industry professionals
Alan and Barbara Lidstone, who own
a 33-foot Winnebago Chieftain, lopped
a leg off a planned trip to New England
from their home in Venice, Florida.
"We
were going to go out to Kentucky and
Hot Springs and decided not to because
it would have added 1,000 miles to
the trip," said Alan Lidstone, who
with his wife has written a guidebook
on RV travel.
More double-income families whose
leisure time is limited are using
RVs for long weekend trips, according
to Coachmen Chief Executive Claire
Skinner.
"It
is literally a home on wheels," she
said from Coachmen's headquarters
in Elkhart County. "And in your home
you get to do your own thing at your
own time."