We wish all of our friends and colleagues a safe and happy Labor Day weekend. The RVBusiness and Woodall’s Campground Magazine daily newsfeeds will resume on Tuesday, Sept. 3.
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WASHINGTON, D.C. – Pump prices are still falling, but at a slower pace than recently, dipping just two cents to $3.36 since last week. A slight uptick in gas demand may reflect the last hurrah for summer travelers. A storm system forming in the Atlantic may pose a threat to falling gas prices as well. Meanwhile, the national average for L2 commercial electricity did not budge.
“Since today, 8/29, is my birthday, my wish is that this potential tropical storm fizzles quickly,” said Andrew Gross, AAA spokesperson. “And the arrival of September means cheaper winter-blend gasoline is almost here, which always helps take pressure off pump prices.”
With an estimated 1.2 million AAA members living in households with one or more electric vehicles, AAA lists the kilowatt-per-hour cost for Level 2 (L2) commercial charging by state.
Today’s national average for a kilowatt of electricity at an L2 commercial charging station is 34 cents.
According to new data from the Energy Information Administration (EIA), gas demand rose last week from 9.19 million b/d to 9.30. Meanwhile, total domestic gasoline stocks fell from 220.2 to 218.4 million barrels, and gasoline production decreased last week, averaging 9.6 million daily. Unspectacular gasoline demand and falling oil costs may cause pump prices to slide further.
Today’s national average for a gallon of gas is $3.36, 14 cents less than a month ago and 46 cents less than a year ago.
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell by $1.01 to settle at $74.52 a barrel. The EIA reports that crude oil inventories decreased by 0.8 million barrels from the previous week. At 425.2 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
Quick Gas and Electricity Stats
Gas
The nation’s top 10 most expensive gasoline markets are Hawaii ($4.65), California ($4.62), Washington ($4.16), Nevada ($3.96), Oregon ($3.79), Alaska ($3.73), Illinois ($3.70), Washington, D.C. ($3.60), Idaho ($3.59), and Utah ($3.59)
The nation’s top 10 least expensive gasoline markets are Mississippi ($2.88), Oklahoma ($2.94), Texas ($2.94), Tennessee ($2.95), Louisiana ($2.96), Alabama ($2.96), Arkansas ($3.00), South Carolina ($3.01), Missouri ($3.04), and Kansas ($3.05).
Electric
The nation’s top 10 least expensive states for L2 commercial charging per kilowatt hour are Kansas (22 cents), Missouri (24 cents), Delaware (25 cents), Texas (28 cents), Nebraska (29 cents), Utah (29 cents), Wisconsin (29 cents,) Michigan (30 cents), Vermont (30 cents) and North Dakota (30 cents).
The nation’s top 10 most expensive states for L2 commercial charging per kilowatt hour are Hawaii (56 cents), West Virginia (45 cents), South Dakota (43 cents), Arkansas (42 cents), Idaho (42 cents), South Carolina (42 cents), Montana (41 cents), Kentucky (41 cents), New Hampshire (41 cents) and Alaska (40 cents).
Drivers can find current gas and electric charging prices along their route using the AAA TripTik Travel planner.
The post AAA: Pace of Gas Price Decline Slows as Labor Day Arrives first appeared on RVBusiness - Breaking RV Industry News.
EDITOR’S NOTE: The following is an excerpt of a report by Michael Smith for Truck Camper Adventure. Click here to read the full report.
The Elevation Off Grid (EOG) Rig took first place at the just completed 2024 Overland Expo Mountain West in Loveland, Colorado. The “top rig” award was given by Truck Camper Adventure, a web magazine for off-road, off-grid truck camper enthusiasts. Functionality and good looks were the prime factors considered in choosing the winner.
As a truck camper rig, the EOG Rig has it all. It all starts with EOG Ford F-550 Black Edition with 41-inch super singles and a LiquidSpring Suspension, outfitted with a Bowen Customs truck bed with loads of storage. Topping it all off is a luxurious Host Mammoth 11.6 triple-slide truck camper—the largest slide-in truck camper in today’s market—equipped with an “off-grid extreme” package consisting of a 1,200 amp hour off-grid battery system, 800 watts of solar, and a 3,000 watt inverter. Both the truck and the custom truck bed are painted a matching “Nardo Grey,” a custom color not offered by Ford.
Elevation Off-Grid (EOG) builds the best, most capable pickup truck on the planet. As a matter of fact, EOG is the only Ford F-550 and Ram 5500 pickup manufacturer in the world. EOG’s Class 5 trucks not only offer a GVWR of 19,500 pounds with a nearly 10,000 pound payload, but also a silky-smooth ride comparable to the Ford F-150 and the Ram Power Wagon using the highly-regarded LiquidSpring Suspension. EOG normally builds an 8-foot OEM-style truck bed for it’s Class 5 trucks, but in this case the customer wanted a Bowen Customs bed for extra storage.
Click here to read the full report.
The RVBusiness Featured Video is sponsored by Curt, a Lippert Brand.
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EDITOR’S NOTE: The following is an edited excerpt of a report by The Daily Upside. Click here to read the article in full at www.thedailyupside.com.
Gross domestic product. Inflation. Treasury bill rates. Consumer spending. Household accounts. Money supply. The CBOE Volatility Index. The Big Mac Index. Vibes.
There are so many ways to measure the economy.
But, in these final weeks of summer, it would be wrong not to embrace the warm weather, the chlorophyll-flush vegetation, and the sunsets after 5 p.m. in order to look to that all-important indicator: RVs.
…
“RVs do extraordinarily well in predicting business cycles because they’re such a big, volatile consumption piece for most American consumers,” economist Michael Hicks of Ball State University told American Public Media’s Marketplace earlier this year.
With new towable trailers costing anywhere from $20,000 to $100,000 and motorhomes $50,000 to well into the hundreds of thousands, RVs are big purchases, meaning sales are sensitive to economic headwinds and consumers’ perceptions of the economy — a so-called vibecession would do sales no favors.
They’re also overwhelmingly debt-backed. Jon Ferrando, the CEO of Fort Lauderdale-based Blue Compass RV, which owns 103 RV dealerships in 33 states, told Reuters last year that 80% of customers finance their purchases. That makes the industry especially sensitive to interest rates.
RVs also simply represent a lot of people. There are 11.2 million RV-owning US households as of 2021, a 62% increase in the past 20 years, according to the National RV Dealers Association. More than a fifth of the market, according to the Association, is now made up of 18- to 34-year-olds.
Meanwhile, there remains a large, outdoorsy consumer base to be won over: 92 million American households identified as campers in 2022, according to a survey by Kampgrounds of America, up from 79 million in 2019.
…
For the biggest publicly traded firms in the RV space, the boom-and-bust cycle of the last four years has been, well, boom and bust.
After making $2.4 billion in annual revenue in 2020, Minnesota-based RV manufacturer Winnebago made $3.6 billion in 2021 and $5 billion in 2022 before falling back to $3.5 billion last year. The company’s share price is down about 21% this year.
THOR Industries, the Indiana-based RV manufacturer, has also flagged “challenging market conditions” in North America this year. In June, Thor cut its fiscal 2024 revenue outlook to $9.8 billion to $10.1 billion, down from an estimate of $10.0 billion to $10.5 billion. Third-quarter sales amounted to $2.8 billion, down slightly from $2.9 billion during the same period in 2023.
Click here to read the article in full at www.thedailyupside.com.
The post Report Dives into ‘Ups and Downs of Camper Economics’ first appeared on RVBusiness - Breaking RV Industry News.
FORT LAUDERDALE, Fla. – Haig Partners LLC released its Q2 2024 Haig Report, the longest-published quarterly report in auto retail tracking industry trends and their impact on dealership values. The auto retail marketplace is evolving from record profits, blue sky values, and dealership sales. Due to several factors, dealership profits declined 32% in the first half of 2024 compared to the same period in 2023. The reduction in profits affects dealership values and the number of dealerships being sold, with smaller declines in both categories. Details are provided below.
Auto dealership profits declined 32% in the first half of 2024 compared to the same period in 2023. The reduction in profits affects dealership values and the number of dealerships being sold, with smaller declines in both categories.Post this
The Haig Report®, first released in 2014, celebrates 10 years of consistently reporting reliable, routine quarterly updates on dealership profits, trends within auto retail, and their impacts on dealership values. The Haig Report® has gained a significant following since its first publication, but its goal remains the same: to help dealership buyers and sellers make better, more informed decisions.
Auto dealership buy-sell activity cools in Q2 after a record-setting Q1.
In Q2, an estimated 84 rooftops traded hands, a 48% decline from the first quarter. While a steep drop, it is important to note that Q1 2024 was the busiest quarter on record for dealership buy-sells. Transaction volume for the first six months of the year is only down 14.5% from the same period in 2023. The market remains busy, with a sustained appetite for strong franchises in attractive markets. We predict this year will rank as the fourth busiest year for U.S. dealership buy-sells in automotive history.
Dealership profits declined 32% in the first 6 months of 2024.
In Q2 2024, we estimate that the average dealership owned by public retailers made $1.0M in pre-tax income, a 35% decline from Q2 2023. Over the last twelve months (“LTM”), the average publicly owned dealership made $4.5M in pre-tax income, a 27% decrease from 2023 and a 33% drop from 2022, the peak year when the average dealership owned by the publics made an estimated $6.7M in pre-tax income. If we take the first six months and annualize them (meaning we double them), dealerships made $4.0M in pre-tax income, a decline of 25.5%. Looking ahead, we believe that average store profits will continue to decline for the remainder of 2024, but at a slower pace.
Blue sky values continue to decline but remain elevated.
According to our analysis, the estimated average blue sky value of a publicly owned dealership was $21.8M in Q2 2024. This value represents an 11% reduction from the blue sky value observed at the end of 2023, which we now perceive as the peak of the market. We would have expected a bigger decline by now, but earnings for most brands remain well above pre-pandemic levels.
Sellers have enjoyed exceptional times recently. More than five large dealership groups traded hands for more than a billion dollars over the past few years. And record high values were paid for many franchises. Haig Partners was proud to play a key role in many of these precedent-setting transactions. For our clients, 2023 kicked off with the sale of Lake Norman CDJR, which set the record for the highest value ever paid for a Stellantis franchise. In June 2023, the sale of Al Hendrickson Toyota to Morgan Automotive Group set the record for the highest amount paid for a single dealership, regardless of franchise, at the time of the sale. We believe the price paid remains the highest ever for a Toyota franchise. Earlier in 2024, we set more records. The sale of South Motors Honda and Vista Motors BMW in January claimed the title for most ever paid for those franchises. In June 2024, we advised on the sale of Hollywood Kia, which claimed the record for the most ever paid for a Kia franchise. Other franchises also attracted record-setting prices. The purchase of Ussery Motors (Mercedes-Benz of Coral Gables) is believed to be the most blue sky ever paid for a single dealership, reportedly at over $300M.
The market is now shifting. We are still selling many dealerships for strong prices, particularly brands like Toyota, Honda and German luxury. However, many dealership groups are now engaging us to assist them in divesting dealerships that no longer make sense for them. These divestitures include sales of stores that produce little income or are losing money, as well as dealerships located in outlying areas from the owners’ core markets. Larger dealers tell us they do best with higher volume stores in bigger markets where they have more people and infrastructure. These divestitures are providing an opportunity for smaller dealers to grow through acquisitions.
Key takeaways from the Q2 2024 Haig Report® include:
Alan Haig, President of Haig Partners, shared, “We are leaving a period in auto retail where conditions were almost too good to be true. Profits at dealerships more than tripled from 2019 to 2022 thanks to high gross profits on new vehicles and low expenses. Today, gross profits on new vehicles are declining and expenses have risen. The good news? Average profits are still about double what they were before the pandemic.
“In terms of the buy-sell environment, the last three-and-a-half years have been boom times. We have seen well over 2,000 dealerships trade hands, about double the normal rate of buy-sells. The large public company acquisitions get a lot of headlines, but by far the biggest part of the market are family-owned groups that are handing over some of their savings to other family-owned groups that have chosen to exit the industry at record-high prices.
“Just like profits at auto retail, however, we are beginning to see a slight slowdown in buy-sells. At the current rate of buy-sells, 2024 will be the fourth most active year in buy-sells with around 500 stores sold, which is still 49% higher than the average number of stores that sold from 2016-2019. The types of transactions, and the values of dealerships, are also evolving from the boom times.
“We have had the good fortune to have been involved in setting record high prices for franchises such as BMW, CDJR, Honda, Kia and Toyota over the past two years. And we are still seeing strong prices for these brands, but they are coming to market in smaller numbers, perhaps as prices decline a bit. Where our practice has dramatically expanded is on the divestiture side. We have been engaged to sell over 30 dealerships owned by several groups, public and private. These are stores that are no longer a good fit for their owners. They may be losing money, weak brands, or no longer fit geographically. Dealerships that remain nicely profitable are selling for a little less today than they were at the end of 2023, a reflection of their reduced profitability.
“We know that many dealers who wanted to grow were sitting on the sidelines over the past few years as they waited for prices to fall. Now is the time to get up!”
Q2 2024 Haig Report® Highlights
Volkswagen (+30.8%), JLR (+20.8%) and Lincoln (+18.9%) experienced the greatest lift in sales, while Stellantis (-20.5%), Acura (-16.3%) and Infiniti (-14.6%) saw sales decrease the most. There is some noise in Q2 due to the CDK outage.
Our practice remains very busy. We are excited to be advising owners of strong-performing franchises like Honda and Toyota. The values for those dealerships have changed very little since the peak in 2023. And we are pleased to assist large dealer groups that are divesting dealerships to focus on their core assets. The rest of 2024 should bring a robust market for dealers with budgets big and small looking to grow.
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EDITOR’S NOTE: RV industry veterans and RVers Tony and Peggy Barthel created the Stressless Camping podcast to “make the great American RV adventure a StressLess Camping experience.” The program includes RV tips, tricks, hacks and deals for making RVing more fun, less stressful and even safer. Every week there are interviews with people in the RV industry who feature products, services or ideas to make RV life better.
What’s up with RV quality in 2024? What kind of things are RV companies doing today to make a difference in how RVs are built? We speak with two RV decision makers about what they are doing right now to make a difference. We also visit a competing RV company and look into their efforts.
The post Podcast Explores RV Quality with Rockwood/Flagstaff Execs first appeared on RVBusiness - Breaking RV Industry News.
BEND, Ore. – Beaver Coach Sales, locally owned and operated RV dealership, proudly welcomed a group of children from the Bend Boys and Girls Club as part of their #WorkforceWednesday program. This unique initiative is designed to introduce young minds to potential career paths, offering them hands-on experiences in various industries.
During the visit, the children were given an exclusive tour of Beaver Coach Sales’ state-of-the-art facility, where they explored each department and learned about the diverse range of careers in the RV industry. From the meticulous work of the service department to the creative efforts of the marketing team, the children gained valuable insights into the skills and dedication required to succeed in each role.
A highlight of the day was a special banner-making activity led by the Beaver Coach Sales marketing department. The children were encouraged to unleash their creativity as they created their own banners. Each child proudly took home their handmade souvenir as a memento of their visit, symbolizing the lasting impact of their experience.
“We were thrilled to host the Boys and Girls Club of Bend for #WorkforceWednesday,” said Ryan Kelly, Sales Manager at Beaver Coach Sales. “It’s important for us to give back to the community and inspire the next generation. By offering these kids a glimpse into our world, we hope to spark an interest in the many exciting career opportunities available in the RV industry.”
Beaver Coach Sales has long been committed to supporting local initiatives and fostering community connections. This event is just one example of the company’s dedication to making a positive impact in the lives of young people in Central Oregon.
For more information about Beaver Coach Sales and their community initiatives, please visit www.beavercoachsales.com or contact 844-279-7557.
About Beaver Coach Sales
Beaver Coach Sales is a premier RV dealership based in Redmond, Oregon, offering a wide range of new and pre-owned RVs, as well as expert service and parts support. With a focus on customer satisfaction and a passion for the RV lifestyle, Beaver Coach Sales is dedicated to providing the highest quality products and services to RV enthusiasts.
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BREVARD, N.C. – SylvanSport, the Brevard, N.C.-based innovator and manufacturer of adventure travel trailers, pop-up campers, rooftop tents and outdoor gear, announces an expanded list of events to engage with the brand.
SylvanSport invites consumers and dealers to set appointments or visit their booth at each upcoming event to preview the latest innovations or explore partnership opportunities, according to a release.
“Our designs and innovations grow from listening to our customers and partners. Additionally, we believe that experiencing SylvanSport in person showcases the nuances, quality, and details that differentiate SylvanSport from the industry,” said founder Tom Dempsey. “We have so much happening at SylvanSport right now. Providing venues for our customers to connect with SylvanSport in person is the best way to highlight the quality and versatility of our products while also curating the best experience possible.”
Over the upcoming months, SylvanSport will attend several high-quality consumer and dealer events. Interested parties can connect with the brand at the following events:
SylvanSport will display an array of products and trailers for people to test out and experience. Consumers can expect to see the all-new GO All-Terrain (GOAT), the newly launched and affordably priced Micro Adventure Series, and the revolutionary VAST travel trailer.
For more information on SylvanSport, visit www.sylvansport.com or direct media and testing inquiries to Mindy Smith at [email protected].
About SylvanSport
Headquartered in the heart of Blue Ridge Mountains of North Carolina, SylvanSport is the leader in innovative, lightweight tow behind campers and outdoor gear. Since 2004, SylvanSport’s mission has been to make camping more comfortable for everyone to enjoy. SylvanSport’s products range from personal camping gear including backpacks, sleep systems, and camping kitchens to rooftop tents, gear trailers, haulers, pop-up campers, and travel trailers including the award-winning GO camper and VAST travel trailer. Visit sylvansport.com to learn more.
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GOSHEN, Ind. – Bringing together 628 registered RVs and approximately 1,400 attendees for five unforgettable days, the 10th annual Grand Design National Owners Rally concludes today, Aug. 30 at the Elkhart County 4- H Fairgrounds in Goshen, Ind.
“Our owners are the heart and soul of Grand Design, and the National Owners Rally is our way of celebrating them,” Don Clark, president, CEO, and co-founder of Grand Design RV, stated in an earlier release. “We created Grand Design to break the mold in the RV industry, focusing on quality, service, innovation, and, most importantly, our relationship with our owners. This event is a tribute to that commitment, and we couldn’t be more excited to share this special time with our Grand Design family, just down the road from our campus
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MILLERSBURG, Ind. – Friends and colleagues of Forest River Inc.’s John Stringer, sales manager of the company’s Rockwood and Flagstaff towable RV lines, gathered for a surprise retirement luncheon Thursday (Aug. 29) at the division’s Millersburg facilities to give him a warm send-off for his last day of work today (Aug. 30).
Stringer, a 15-year Forest River employee, clearly enjoyed his celebratory luncheon which caps a 50-year career within the North American RV arena that also included Gulf Stream Coach Inc. in Nappanee, Ind., Morgan Building Spas and RVs in Texas, Stout’s RV Sales in Greenwood, Ind., Longview RV Superstores in Connecticut and Vermont’s Camporama where he worked during his school days dating back to 1974.
Everyone else also seemed to appreciate Thursday’s luncheon that consisted of a brief presentation and an ample round of barbecue chicken at the Rockwood/Flagstaff campus – part of which was once occupied by legendary RV builder Carriage Inc.
“Yeah. John’s one of the most dedicated, hardworking individuals we know,” stated Karl Miller, who recently succeeded long-time Forest River Divisional GM Don Gunden in overseeing the Rockwood/Flagstaff division. “There was never a time where he wouldn’t do whatever it took to get the job complete and there’s never a time he wouldn’t do anything for any dealer or employee if there was something that needed to be done for their families or at work. He was just always the most team-oriented, dedicated, loyal employee that I’ve ever worked with.”
Though he’s retiring on the brink of the Elkhart RV Open House, Stringer wants people to know that he plans to visit various manufacturer displays Sept. 23-26 at Forest River’s Dealer Expo on the west side of town as well as around the RV/MH Hall of Fame to touch bases with friends and acquaintances.
“I’m the luckiest man in the world to work with some of the greatest people, dealers and manufacturers,” he told RVBusiness. “I mean, the RV industry is so full of good people. That’s what makes it fun on both sides of the table.”
What comes next for Stringer and his wife, Barbara, who was on hand for the luncheon? “You know what? I am going to enjoy my family and enjoy visiting dealers and traveling and practice what I’ve been preaching to all these customers about going out and seeing this beautiful country,” said Stringer. “I’m going to be doing what we told them to do, and I’m looking forward to it.”
Stringer’s thoughts regarding the current state of the RV market? “We’ve always been a cyclical industry. It’s going up and down. But the reality is, everybody in the United States, everybody in the world and in North America wants to own an RV at some point in their life. And that’s what makes this business great. Sometimes the timing just has to be right. But it’s an industry that will always grow and flourish.
“And in my opinion, our per capita ownership within the United States is going to grow. We’re going to see more and more RV households because we’re in a situation where people increasingly value their free time, work from home and have time to travel. So that’s why the RV business is going to flourish that much more.”
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