Major RV companies are stuck with multibillion-dollar backlogs as demand remains high
- RV companies have been slammed with demand since the start of the COVID-19 pandemic.
- RV shipments were up in January and February compared to the same time last year.
If you're looking to buy a RV as soon as possible, you might have to be patient. RV makers have been slammed with consumer demand since the start of the COVID-19 pandemic and some of the most popular companies are now struggling to keep up.
Two years ago, as COVID-19 (temporarily) crumbled the travel industry, one form of leisure travel began taking off: RVing. In 2020, RV and rental companies suddenly began seeing historic interest and demand. And by 2021, RV makers had built more units than any year prior.
We're now two years into the pandemic, but demand for tiny homes on wheels has shown no signs of slowing down. This year's RV shipments in January and February increased compared to the same time in 2021, and the RV Industry Association is now expecting public interest to continue growing.
This may sound like good news to RV companies. But in reality, rising material costs, supply chain disruptions, and difficulties hiring workers have stifled RV production. These manufacturing difficulties, compounded with the whirlwind consumer demand, means you might not get your shiny new summer RV as soon as you'd like.
Winnebago Industries, which has seen "record" orders during COVID-19 thanks to younger buyers, reported $1.2 billion in revenue in the second quarter of 2022, a nearly 29% increase compared to the same time in 2021.
But as its sales have grown, its inventory has continued to shrink: The RV and boat maker now has a $4.37 billion backlog. And Mike Happe, the president and CEO of Winnebago Industries, predicts its ongoing supply chain issues will continue through this year.
Winnebago isn't the only popular RV maker facing the same looming backlog. Thor Industries — which oversees 17 brands like Jayco and Airstream — reported $3.88 billion in sales in its 2022 second-quarter earnings report, a roughly 42% growth compared to the same time in 2021. But like Winnebago, this popularity comes at a price: The RV giant now has a $17.73 billion backlog, an over 60% increase compared to the year prior.
As of June 2021, Thor has been "pretty much sold out" for this year as its dealers have "virtually no inventory," Bob Martin, Thor's president and CEO, told CNBC's Jim Cramer. And late last year, Martin reported that the process of restocking Thor's dealers could extend in 2023.
"Our backlog is frankly larger than we would prefer. It's a great signal of the interest and demand for our products," Todd Woelfer, the COO of Thor Industries, told Insider in March, noting that the company has made "some minor incremental progress."