Industry revenue is improving as the population ages
Melbourne, Australia (PRWEB) July 07, 2012
The Recreational Vehicle Manufacturing industry in Australia produces a range of products that enable Australians to travel to remote locations comfortably and economically using the nation's road networks. To use the industry's products to their full potential, major markets need time to travel and the funds to do so. As a result the industry's most lucrative market segments are baby boomers and seniors. According to IBISWorld industry analyst Aries Nuguid, “in the five years through 2012-13, the proportion of Australians over the age of 50 has increased and the industry has entered a growth phase”. Industry revenue has increased an annualised 4.1% to reach $1.09 billion. Over the same period, the number of registered recreational vehicle numbers grew at an estimated 3.8%. In the current year, the industry is forecast to grow 1.0%.
The importance of well-off older markets to industry performance was apparent during the global financial crisis. Although Australia never technically entered recession, stock markets performed poorly. Retirees and those on the cusp of retirement saw their superannuation accounts decline in value. Demand for industry products fell as consumers put off purchases of big ticket items.
However, the industry has returned to strength as demand for industry products returned to trend. In the five years through 2017-18, demographics are on the side of the industry, with retiring baby boomers expected to boost the numbers of grey nomads. Industry revenue is forecast to grow over the next five years. The coming years are projected to be increasingly lucrative for the industry. Nuguid adds, “cost of inputs, such as iron and steel, should fall as demand for industry products increases”.
The Recreational Vehicle Manufacturing industry has a medium level of market share concentration. The two largest companies are Jayco Corporation and Fleetwood Corporation. The industry's market share concentration has declined since 2007-08, with the strongest fall in 2008-09. This indicates that major players were more affected by the drop in demand during the global financial crisis than smaller, niche operators.
For more information, visit IBISWorld’s Recreational Vehicle Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture recreational vehicles, including towable and motorised recreational vehicles. Towable recreational vehicles include caravans. Motorised recreational vehicles include motorhomes and campervans.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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