Wells Fargo Commercial Distribution Finance shares latest industry insights ahead of RV Open House
CHICAGO – September 16, 2016 – Several key indicators for the recreational vehicle industry are looking up ahead of the upcoming RV Open House event in Elkhart, Indiana according to a Wells Fargo Commercial Distribution Finance (CDF) analysis of data provided by the Recreational Vehicle Industry Association (RVIA) and Statistical Surveys Inc. (SSI).
According to the CDF team’s observations, the RV industry is experiencing balanced progress and discipline as manufacturers maintain strong growth in shipments and dealers continue to sell through units. RVIA notes that shipments are up 10.8 percent over last year and SSI reports that retail registrations have experienced double digit growth. Additionally median dealer revenue is up 24 percent according to a CDF dealer analysis.
“Despite a somewhat sluggish economy, interest rate concerns, and a U.S. presidential election year, consumer spending was robust in 2016’s second quarter,” said Tim Hyland, president of Wells Fargo CDF’s RV Group. “Our data shows that dealer inventory turnover is at a strong annual rate of over 2X, and aging is maintaining below 10 percent – a very positive level.”
According to CDF, these numbers are consistent with previous years and are indicative of a healthy market. RVIA is also predicting the industry to grow by 8.3 percent in shipments for the full year, up from just under 6 percent earlier in 2016.
“In 2017, the economy is expected to grow approximately 2 percent,” adds Hyland. “Without any unforeseen disruptions, the RV industry should feel good about growth prospects.”
About Wells Fargo Commercial Distribution Finance
Commercial Distribution Finance (CDF) provided $47 billion in financing for more than 40,000 dealers and more than 2,000 distributors and manufacturers globally in 2015. CDF provides inventory financing solutions, service and intelligence through in-depth industry expertise and commitment. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management, and related financial products. On March 1, 2016, Wells Fargo acquired the North American business of CDF from GE Capital. The sale will be completed as a phased approach with the remainder of the business closing globally in 2016. For more information, visit wellsfargo.com/cdf or follow company news via Twitter @WellsFargoCDF.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.8 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,800 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 269,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.