As 2024 becomes 2025, this is a great time for reflection and review.
In the past year, the RV industry almost returned to “normal,” at least regarding repair event cycle times (RECT). Average 2024 cycle times have been the fastest since 2020 and are only about a week longer compared with 2018-19. In some areas, dealers improved RECT times to below pre-pandemic levels.
Let’s take a deep dive into the numbers to determine where improvement has occurred and where dealers are experiencing their greatest challenges.
Average RECT Days
The two main bottlenecks, warranty coverage and out-of-stock parts, followed similar trends. Both have improved year-over-year since 2022. However, the average cycle time for warranty coverage—work orders with at least one part or job covered by warranty—has not progressed at the same pace.
Warranty coverage cycle times fell to a 49-day average in 2024 compared with 57 days in 2022. However, the 49-day average was still 12 days slower than in 2018-19.
The out-of-stock parts bottleneck—work orders with at least one out-of-stock part—dropped to a 61-day average this year after jumping to an 88-day average in 2022. The 2024 average was two days shorter than 2020’s but 10 days longer than the 2018-19 average.
Bottleneck RECT Days
To determine exactly what drives these trends, we must dissect each bottleneck into its three primary components.
Warranty coverage bottleneck components are:
Start Days: The number of days from the start date to the last labor start date.
Job Days: The number of days from the first labor start date to the last labor end date.
Delivery Days: The number of days from the last labor end date to the completion date.
Out-of-stock parts bottleneck components:
ID Days: The number of days from the start date to the last PO issue date.
Lead Time Days: The number of days from the first PO issue date to the last
receive date.
Repair Wait Days: The number of days from the last receive date to the last labor end date.
Out-of-stock parts components have seen significant year-over-year reductions from a peak in 2022. This year, ID Days is down to a 27-day average, nine days fewer than 2022’s average and just six days longer than the 2018-2019 average. Lead Time Days fell to a 26-day average in 2024, 14 days faster compared with 2022’s average and just four days slower than the 2018-19 average. Repair Wait Days declined to a 16-day average, nine days quicker than the 2022 average and only one day slower than the 2018-19 average.
Bottleneck Components
Warranty bottleneck components had fewer improvements than out-of-stock parts components, with one exception. The average Start Days plummeted to just 12 days in 2024, significantly faster than the 2018-19 average. However, Job Days and Delivery Days have not improved much over the past few years.
Delivery Days decreased slightly this year but remains about four days slower than the 2018-19 average. Job Days peaked last year with a 22-day average, falling by only one day to a 21-day average in 2024, which is 10 days longer than the 2018-19 average.
Warranty Coverage Compaonents
Work orders with warranty coverage and out-of-stock parts created the largest impact on RECT. This “double whammy” affects almost 20% of all work orders reviewed and more than doubles the average RECT times.
Warranty and Out of Stock
Nowhere does having both bottlenecks make a greater difference than with the Job Days warranty component. As mentioned earlier, Job Days had a 21-day average in 2024 for all work orders (with in-stock parts or out-of-stock parts). However, when we look at work orders with an out-of-stock part, this average jumped to 40 days. By comparison, work orders with parts in stock averaged eight days this year.
If you want to improve your RECT, this component is where I recommend looking first.
Out of Stock Items
Another alarming trend is the increasing percentage of work orders with out-of-stock parts.
From 2018-2022, these work orders accounted for 22% to 23%
of the total work orders reviewed. Over the past two years, this percentage has been steadily rising. In 2023, 27% of the work orders reviewed needed parts ordered. In 2024, that percentage increased to 30%.
Unfortunately, I see this trend continuing to grow as vendors have greatly improved their shipping times and more dealers are looking to reduce storage costs. Retail store managers are stocking fewer quantities of parts, knowing they can acquire parts from their distributors within one or two days. However, the work orders reviewed show that even a one- or two-day wait for parts significantly affects RECT.
I expect RECT to continue to improve in 2025. To help you focus on the areas that need the most attention, review your RECT reports provided by your DMS.
Based on overall trends, I believe an emphasis on work orders with both bottlenecks and, specifically, Job Days will have the greatest impact on dealers’ cycle times.
Remember, you cannot manage what you do not measure. Your data is like gold; mine it often.
Don Miller is a senior data consultant at Constellation Dealer Group. With more than 30 years of experience in the industry, Miller provides training, consulting and analytical services to dealerships.
