Mid 2023 Recreational Vehicle Industry M&A Report
This article is a summary of recent M&A activity in the recreational vehicle industry in 2023.
The recreational vehicle industry is coming off two of the most profitable and demanding years in a row. The effects of the COVID-19 pandemic and economic shutdown greatly benefited all aspects of the industry, from manufacturers, dealers, repairs, and campgrounds. The companies that were ready capitalized greatly and added a new generation of customers to its base. But now what? 2023 is proving to be a very different year for all involved.
Recent Mergers and Acquisitions
Despite the recent slowdown in the RV industry as a whole, mergers, and acquisitions are still going strong. Marcus Lemonis, Chairman and CEO of Camping World, recently said, “Our goal is to achieve 50% growth in our store count over the next five years”. Camping World is currently the largest retailer of RVs and has 197 store locations. Many other conglomerates are looking to expand via acquisitions and new store openings.
By Craig Hudman, Managing Director at Jackim Woods & Co.
Jackim Woods & Co. is a leading mergers and acquisition advisor focused on providing senior-level attention and flawless execution to clients in the recreational vehicle industry.
Craig is an experienced mergers & acquisitions professional, a former owner of a leading RV dealer, and a dealership management and operations expert. He brings over 30 years of RV-related experience.
To arrange a free, confidential initial consultation, please contact Craig Hudman at (208)521-1521 or chudman@jackimwoods.com.
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Mid 2023 Recreational Vehicle Industry Report
The recreational vehicle industry is coming off two of the most profitable and demanding years in a row. The effects of the COVID-19 pandemic and economic shutdown greatly benefited all aspects of the industry, from manufacturers, dealers, repairs, and campgrounds. The companies that were ready capitalized greatly and added a new generation of customers to their base. But now what? 2023 is proving to be a very different year for all involved.
The RV Industry as a whole is seeing the effects of record sales in the past two years. Sales have plummeted in part to the rising costs of RV and interest rate hikes. RV shipments in 2023 are at their lowest point since 2007-2008. Many dealers are still struggling to move new 2022 model year units while manufacturers slowly roll out 2024 model years. Projections put shipments in 2023 around 300,000 and 2024 in the mid 300’s. This added on top of interest rates that have nearly doubled over the last twelve months, and a poor national economic outlook has put most would-be buyers on hold. Interest rates are not expected to decrease until the latter part of 2024.
The RV Industry as a whole had an overall economic impact of $140 billion in 2022. More Americans are discovering the joys of camping. The average use of an RV is around 20 days per year. Manufacturers, Dealers and Campgrounds are staying busy with the huge influx of new buyers coming to the RV market as a result of the COVID-19 pandemic. These new customers are keeping both campgrounds and dealerships busy, not to mention the added strain on manufacturers and suppliers.
Thor, Forest River, and Winnebago account for 90% of all RV’s manufactured in the U.S. and Canada. These three “big” manufacturers continue to dominate and account for all brands commonly sold on most dealers’ lots. Towables account for close to 90% of the market, and the other 10% is motorized. Thor leads the way in towables and motorized market share, and Forest River is number two. The largest segment growth comes in the motorized class B with growth of around 8% per year. Winnebago currently claims 39% of this market. Texas continues to be the number one destination for wholesale RV shipments at nearly 10%, followed by California (6.4%), Florida (6.1%), Ohio (3.6%), and Michigan (3.5%). The median age for RV buyers has dropped to 33 years old. The amount financed on an RV has risen to around $45,000.
By Craig Hudman, Managing Director at Jackim Woods & Co., a leading mergers and acquisition advisor focused on providing senior-level attention and flawless execution to clients in the recreational vehicle industry.
Craig is an experienced mergers & acquisitions professional, a former owner of a leading RV dealer, and a dealership management and operations expert. He brings over 30 years of RV-related experience.
To arrange a free, confidential initial consultation, please contact Craig Hudman at (208)521-1521 or chudman@jackimwoods.com.
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You Don’t Know What You Don’t Know: Selling an RV Dealer
If you’ve ever heard the saying, “You don’t know, what you don’t know,” and never understood it, I was there also. I sold my family business about 18 months ago to a much larger company. At the time, I thought that knew a lot about the RV industry, after all, I was a third-generation owner. I figured if my grandfather and father had been successful for over 50 years, what they’d taught me ought to be enough. That idea, that concept embedded into the depths of my thought, couldn’t have been more wrong. I soon would learn “what I didn’t know.”
The first six months were really a blur. Our projections and goals were constantly changing based on more growth than I ever could’ve imagined. All of the new tools and information I now had at my disposal were amazing. Any question I had could be answered, and hunches could now be backed up with quantifiable data. I’ll admit it was a bit of an overload at first, but now it has become normal.
To people that have been brought into the light after having been in the dark, the world seems amazing, and this is how I felt. Along with this amazing feeling also comes a bit of shame. I now can say, “I didn’t know what I now know.” Shame comes from knowing that in 50 years of business, we never truly grew. Not when I came home from college with all my “fancy” degrees and learning. Not from an evolving economy. We only focused on small, consistent growth that was very risk-averse and preservation-minded. Debt was always considered bad. Sure, we made a great living, but now I know what could’ve been.
So to all those out there who “don’t know what you don’t know,” I suggest you learn before it cost you as much as it cost me. Sure, it cost me in the valuation of my company, but most of all, it cost me years of personal and professional growth. Now I am always searching for ways to improve, so if I am ever in the same position, my “don’t know” won’t last very long.
If you own an RV dealer, supplier, or OEM and would like to explore your growth options or exit options, I would welcome an opportunity to speak with you. Feel free to contact me for a confidential, no-cost, no-obligation consultation at chudman@jackimwoods.com or 208-521-1521. I look forward to speaking with you.
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