Baird’s December Recreation Sector Update found current and future RV industry conditions improving from a month earlier.
Current conditions spiked from a 64 figure in November to a 70 in December, Baird reported. The record-low on Baird’s index was a 29 in the spring while August saw a record-high 91.
The three- to five-year outlook also improved, moving to a 67 from a 65 in November.
“Sentiment remains positive in both the three- to five-year outlook and current conditions as consumer pursue outdoor activities,” Baird stated.
Baird reported overall outdoor recreation sentiment remained “extremely favorable.”
There “continues to be very high level of consumer demand,” Baird stated. “Participants within recreation are increasing production and capacity with limited channel inventory while managing constrained supply chains.”
RV dealer inventories remain near record lows, Baird states, even with retail shipments up about 30 percent in the past three months.
“Executing on significant backlogs and managing organic growth are key priorities for participants heading into 2021,” Baird stated.
In addition, Baird said many outdoor recreation participants continue to pursue M&A opportunities, “given the favorable environment and strong financial performance.”
