A solid majority of people believe the current trade war will have a major negative impact on the RV industry in general and their business in particular.
In an impromptu poll this week, 55.6% of the respondents think the flurry of tariff activity will create a major negative impact and increase retail RV prices by at least 20%. Another 14.8% said it would raise retail prices between 10% and 19%, and the same percentage said it was simply too soon to tell.
Likewise, 59.3% said the trade war will increase its cost of doing business by at least 20%. Just over 11% said their business costs would rise between 10% and 19%, and the same percentage said their costs would decrease by at least 20%.
Albeit a small sample size, it’s interesting to note how the comments offered by some of the 27 respondents run the gamut:
• “So far our sales are down significantly.”
• “We have a horrible president. We could not get a worse one.”
• “Sales will be off 25% to 30% in the short term due to panic and fear in stock market. Unfortunately, our population has been dumbed down for decades and today there are too many who do not understand tariffs, economics and finances, let alone American history. No reason to fear tariffs, they are not the end game. Tariffs are just leverage to get other countries to allow the U.S. to sell more U.S. products on a level playing field. The U.S. economy will be better than ever by 3rd to 4th quarter this year.”
• “It will be great for companies that already manufacture American.”
• “Worth it long term. Trade war is a pretty extreme term to use, too. LOL”
• “We build custom RVs. Products have gone up in cost post-Covid. Even if it’s a 25% tariff. The cost of manufacturing with over a 600% added for profit. The company having these parts made can easily adjust for the tariff. It’s what I have done with our other businesses products we produce.”
• “The problem with the tariffs is that they are not reciprocal like the administration claims and they continually change, which will really impact the market with instability. Add to the fact the market value has decreased significantly, which reduces the net worth of our prime customers who may then want to hold off on discretionary purchases until things stabilize. So, we could have a combo of problems: a bear market erasing net worths, significantly impacting consumer confidence; increase in costs for key components, increasing inflation further; and an economic recession. A base combo short term. I am pulling for huge success long term with these moves, but have my concerns given the dynamics at play.”
• “I would call 10%-19% a major impact when considering the compounded inflationary impacts over the past few years. I’m for a level playing field on tariffs. This feels excessive.”
• “Bad for the industry and USA, but potentially good for my small business with competition coming primarily from outside the U.S.”
• “Useless and unnecessary.”
• “Short term pain/long term gain. Don’t panic.”
• “Trade wars are stupid for everyone.”
• “We’ve already seen material costs rise 40%+ in the last couple months. The costs will be passed along so we’re covered as an OEM, but the instability is frustrating. If it the pain is short term and our country is better off long term, then it’s all good. TBD what actually happens, as politicians screw up everything they touch.”
• “Historically, no one wins in a trade war except those in position to manipulate timing and price for temporary gain.”
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