CHICAGO – February 15, 2017 – Optimism in the recreational vehicle (RV) industry is on the rise in early 2017, according to a new survey of industry dealers and manufacturers released by Wells Fargo Commercial Distribution Finance (CDF). Eighty-seven percent of survey respondents expect sales to rise by at least five percent next year, with 42 percent anticipating growth above 10 percent in 2017. This is a marked increase from the 31 percent of respondents who predicted double-digit growth in last year’s CDF survey.
“We knew last year that the RV industry was in a strong position, and these results solidify that momentum will continue well into 2017,” said Tim Hyland, president of Wells Fargo CDF’s RV group. “The increased optimism of our RV industry customers is reflective of their continued innovation and growth. It’s our pleasure to provide them with solutions to keep their businesses thriving.”
For the fifth year in a row, travel trailers were expected to see the most growth with 49 percent of the vote – up five percent from last year. This was followed by motorhomes at 28 percent, fifth-wheel trailers with 22 percent, and folding camp trailers at four percent.
When dealers and manufacturers were asked about the factors that will impact business the most this year, consumer demand proved to be the most divisive topic. While 56 percent of respondents noted this was the business factor they were most optimistic about, 40 percent said it was their chief concern. Overall, survey respondents are also still concerned about product affordability with 36 percent of the vote, up from 34 percent last year.
“In a consumer led economy it is understandable that consumer demand and product affordability would be chief concerns,” said Hyland. “The industry is keeping a watchful eye on both the desire and ability of consumers to participate in the RV lifestyle as the economy continues to expand.”
For more than 30 years, Wells Fargo CDF has supported the RV industry with flexible inventory financing products, enabling RV dealers to stock, market, and sell a wide variety of products from RV manufacturers.
Sample and methodology
The RV industry survey was conducted in December during the annual Recreational Vehicle Industry Association tradeshow in Louisville, KY. Dealers and manufacturers were polled on a number of questions focusing on current sentiment and growth projects for 2017.
About Wells Fargo Commercial Distribution Finance
Wells Fargo Commercial Distribution Finance (CDF) provided $46 billion in financing for more than 33,000 dealers and more than 1,400 distributors and manufacturers globally in 2016. Wells Fargo 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. On March 1, 2016, Wells Fargo acquired the North American business of CDF from GE Capital. The sale of the global business was completed as part of a phased approach on October 1, 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.