Another goes down...Vanguard Caravans

Just like woolworths and coles
swamping the market and then take over the country and then put their prices up..

just like cleanaway does as it goes in cheap.
Wins the tender and puts others out of business and then triples the price of its services

Over 50 is right - there are over 100 Witi.

The past few years have seen quite a few manufacturers go down, and as many if not more start up. Considering some of the brands that have gone, quality is the loser.

The simple problem is that the RV market has been growing 10% annually for the last 15 yrs - much of it founded on huge wealth coming from the mining boom, huge share market dividends (particularly banks), the booming property market, and exceptionally rewarding superannuation arrangements (if you were well-paid).

The mining boom is well and truly over, the share market is down, along with dividends, the property market has definitely peaked and is looking at an extended period of very little growth - and even superannuation entitlements are being crimped.

The 10% annual growth of the RV market was unsustainable for the long term. A long term growth average would be around 2-3% at best.

The basic facts are that the 15 year biggest boom the nation has seen, since the gold boom of 1892-1914, is well and truly over - and only the best managed and best financed businesses are going to survive over the next 15 years.

The impact of Chinese-built RV products is a lot more solid hit to the Australian caravan/camping industry, than many will admit.
I was in a Chinese RV importers yard a fortnight ago, and the business was a madhouse of action - in assembly, sales and general movement of customers.

There will be a period in the next 12-18 mths where we will see a lot more local manufacturers fold, or just shut up shop, due to reduced sales.
The problem is compounded by caravans and campers having a pretty long life as compared to, say, cars.

You can still find a lot of good 1980's models 'vans on the market and in regular use, whereas you won't find too many 1980's cars on the road, or in regular use.

For this reason alone, the relatively smallish caravan/camper market is saturated with the current level of production, and the number of manufacturers.
Until caravan/camper production levels, and the number of manufacturers, is re-aligned with what the market can support, we will continue to see caravan manufacturers regularly fold up.

Cheers, Ron.

Not just the caravan market, look at the number of camper trailers.
Can't believe they are all profitable.

I think we will see more of this in terms of the EO sphere of interest, Travel, Caravans and Camper Trailers.

The cost of manufacturing in Australia versus alternatives imported from offshore is a major factor making it difficult for local firms to compete on price – quality might be a different issue, but in an age of squeezed household budgets, price over quality has become a key determinant when buying many things…

Another factor is retirement incomes. The people purchasing a van for the lap in retirement are being squeezed by the low interest rate environment that Australia and the rest of the world finds itself in. For sure many hail lower interest rates, especially those with a mortgage, but what about those dependent on generating an income from their life time savings?

Less disposable income will potentially equate to fewer funds available for travelling – the tentacles of the flow on effect reaches far and wide, from general stores in small rural towns to caravan manufacturers’!

Generally, I consider myself a fairly optimistic person, but I believe the economic outlook for Australia over the next 2-3 years is looking nothing like “Australia being the lucky country”…

Phew…I might go and grab a Bex and take a lie down now that I have re-read this!

Good weekend to all,

Baz – The Landy