CANADA — The Canadian Recreational Vehicle Association is pleased to report that the total combined RV Wholesale Shipments into Canada for the 9 months ending Sept. 30 are up by 28.50 percent over the same period in 2016 led by continued significant increases in Travel Trailers (+26.6 percent), Fifth Wheels (+26.9 percent), Motorhomes, combined all classes (+45.5 percent) and Folding Campers (+43.4 percent).
CRVA’s Wholesale Shipment Report figures remain comparative with RVDA of Canada’s recent report on retail activity for the same period for Travel Trailers (+26.6 percent Wholesale versus +11.21 percent Retail), Fifth Wheels (+26.9 percent Wholesale versus +7.02 percent Retail) and for Motorhomes, all classes (+45.5 percent Wholesale versus +40.32 percent Retail) but the high variances indicate that Inventory levels are increasing in Canadian RV dealerships.
After two consecutive interest rate hikes of 25 basis points earlier this year, the Bank of Canada held its key the rate at 1 percent on Oct. 25. Further increases had been a concern to a high percentage of Canadians. While the Canadian dollar had strengthened to 80.13 cents at the end of September, Bank of Canada’s announcement regarding the interest rate contributed to the dollar weakening to 77.90 cents (1.2836) at the end of October.
According to the Business Development Bank of Canada, in a survey conducted recently found consumers are generally optimistic about their current finances and see the present moment as a good time to make a major purchase, which bodes well for our Industry.
Furthermore, another study conducted in September by the BDC suggests that nearly 40 percent of all small business owners in Canada are planning to exit or sell their business in the next five years. This could also translate into a very strong market for the Canadian RV industry that would see several thousands of potential RV purchasers foreseeably coming to our market in the near future.