An Olympic swimmer does not simply dive off his starting block. He takes time to stretch his arms, set his feet and look ahead at the exact place where he will fly into the pool. Just as an athlete prepares for a race, Patrick Industries is preparing plans before diving into the next financial quarter.
The RV supplier provided its most detailed public account of the company’s Advanced Products Evolution Group (APEG) while reporting first-quarter financial results.
Jeff Rodino, Patrick’s president of RV, said APEG is focusing on OEM collaborations. APEG is evaluating the best solutions two or three model years out in the RV, marine and powersports markets.
Rodino said, “We believe we are well-timed with this strategic initiative as OEMs generally focus inward on product design and evolution during periods of softer retail demand.”
Rodino cited two examples of work APEG produced that was recognized with innovation awards at the Discover Boating Miami International Boat Show.
The first went to Taco Marine for its open water internal and collapsible carbon fiber outrigger poles. Rodino said the poles’ design and increased functionality results in more natural movement of bait in the water. Rodino said Patrick believes RV and boating experiences can be enhanced with carbon-fiber products.
SeaDek won an award for its SeaDek marine flooring, which can embed colored lighting into flooring and padding.
Patrick Industries CEO Andy Nemeth said the RV market has bottomed and he expects Patrick’s content in new RVs to increase as manufacturers ramp up wholesale RV shipments.
According to Nemeth, OEMs are concentrating on product innovation and development, a focus that Patrick supports.
He said, “We are actively and aggressively pursuing a lot of different innovations out there in the product space today.”
Patrick said dealer inventory grew in the first quarter of 2024. The supplier’s estimates show that dealers’ inventory over the past 12 months increased two to three weeks. Patrick estimates dealers have 20 to 22 weeks of inventory, still below the historical average of 26-30 weeks.
Rodino said higher interest rates will prevent dealers from bringing on inventory, especially in the latter half of the year.
Commodity prices have flattened recently, Rodino said. Because of the commodity price changes, he said Patrick expects 2025 model year RV pricing to flatten as well.
As the market continues to change, Patrick remains set on company plans and objectives.
