The very latest manufacturing employment numbers are out for Elkhart Indiana, and they are up yet again. Let’s get to this quick RV economic update.
As of March, the number of people employed is up to 78,100, making RVs or RV components primarily. As a frame of reference, 10 years ago March manufacturing jobs in Elkhart totaled only 49,800. So, the number is up 28,300 people since 2012, or an increase of just under 57%. Numbers are up about 1,000 since February 2022 which were also up about the same since January.
The next highest year was March 2018, directly after the record year of 2017, when 72,200 people were employed in manufacturing. Yet 2019, 2020, and 2021 were all lower than 2018. Generally, what this says is that RVs are being built at a record pace, and based on chip shortages, most are travel trailers and 5th wheels since motorized RVs are experiencing similar supply restrictions as passenger vehicles.
I can concur based on my recent travels. Driving for several days recently, and passing many RV dealerships along the way, I noticed that every RV dealer we passed was just bursting with RVs on the lot. This is the opposite of last year when there was almost no stock available on dealer lots. It is obvious that the RV industry was able to overcome various shortages and pound out huge quantities of units and is still doing so.
The issues with this are two-fold. First, there seems to be an inverse correlation between build quality and employment levels. If you think about it, for the industry to add workers at the recent clip seen, it means hiring new workers, which lowers average line tenure. This means a higher proportion of tradespeople are learning on your new RV. Not a problem during slower production periods where more experienced workers can help train new people, but the demand and pace of current production are unprecedented, meaning experienced workers are trying to make as much money as possible since they are paid primarily on a piece-work basis.
Second, there is a huge risk that the public won’t show up to buy RVs this year. I personally think there are too many RVs being shipped just now. I can easily be proven wrong, but with dealer lots already full and more RVs being produced, there better be a continued strong demand from the buying public even in the face of much higher prices for RVs and for everything else. I think we’ll know by late May if 2021 is repeated or if we will see a pullback. Right now, if I am a dealer, I’d be sweating it a bit with my lot jammed with new RVs.
Ok, that’ll do it for a quick RV economic news update. We have all this data and much more in the Resources area of the site.
All the best in your camping endeavors!
As always, thanks to our fans who support our efforts by starting their shopping from our Amazon Storefront and by their generous financial support by using the THANKS feature located under each YouTube video ($ within the Heart icon). Your support is greatly appreciated!