RV exports and imports in Australia have remained at record levels despite the complexities that businesses have experienced in operations over the first half of the year, data from the Caravan Industry Association of Australia’s July Business Conditions Report suggest.
According to the report, Australian RV production continues to remain at an all-time high, despite disruptions in the global supply chain. A total of 12,532 units have been produced to date, which is 3.9% higher than the previous year.
On a rolling annual basis, production remains 20% higher than the previous year, with 24,403 units produced, a 4,135 unit increase. Order books continue to remain solid for manufacturers, with the lead time beyond six months for the majority of businesses.
The report also showed that RV imports remain 17% higher than the previous year, with 9,829 units coming into the country in the first six months of the year, a 1,463 unit increase.
Total imports at the financial year-end were 20,380 units, a 32% increase from the same period in 2021. The increase is an additional 4,983 caravan trailer units for the 12 months compared to the previous.
RV operations experienced complex circumstances over the first six months of the year, with 46% of businesses having the same conditions while 39% of businesses declined compared to the previous year.
“The cost of running a small to medium family business has risen markedly, the compliance levels red tape is also adding to the workload of business owners,…we also need to remove the obstacles put in front of us when trying to hire and fire,” said a retailer respondent in the report.
The report insights are reflected in the fact that although total sales/revenue was at the same level as 2021, profitability has significantly slowed or seen a marked decline.
These conditions aren’t surprising when the cost of doing business has increased on the back of labor shortages, supply chain disruption, and inflationary pressures, which have led to rising costs of materials, overhead expenses, wages, and overtime worked.
“I think there is an issue around the general press commentary that business has recovered and is making profits. I doubt many…manufacturers are profitable at present as they are filling orders at last year’s prices with current year costs and still losing production to covid, staff and parts shortages,” said a manufacturer respondent in the report.
Although business pressures remain, 50% of operators indicated increased capital expenditure from the previous period, which suggests strong business confidence in expanding and developing their product and service offerings.
The increase also indicates that business loans and financing options have remained accessible. Orders and bookings received in the first half of the year remain strong and is reflective of the ongoing consumer demand for caravan and camping.
Although those businesses that experienced a decline in orders or bookings in the first half of the year increased by 3ppt from the previous survey.