Seasons roll in waves throughout the year. The calendar year often begins with snow blanketing every surface. Spring sprinkles showers over meadows of budding beauties. Summer’s rays beat down as plants reach for the sky. The fall brings a harvest each season has contributed to.
Some years flourish in specific seasons, some are dry and barren. Farmers adjust their methods to obtain their best crops.
Business comes in seasons, too. Patrick Industries reported its full-year and fourth-quarter financial results for 2023 after slow seasons. However, the company is embracing a positive outlook toward 2024 and outlining goals.
Patrick President and CEO Andy Nemeth said the company will continue to expand its RV industry presence through 2024.
One step Patrick took was promoting Jeff Rodino to be Patrick’s president of RV. Rodino will take on new responsibilities in the new role in addition to his pre-existing presidential responsibilities.
Rodino said this year’s consumer shows have yielded mixed results. The next six weeks of consumer shows will reveal how strong the retail market will be in 2024, he said.
“We believe the RV market bottomed in 2023 and our analysis suggests inventories are lean in the field,” Rodino said. “We are optimistic about the potential trajectory of the RV market with the peak selling season just around the corner in the spring.”
Patrick’s content per unit decreased by 9% in 2023 compared with 2022. Content per unit dropped to $4,800. Patrick said the decline resulted from the company passing pricing through various levels.
“Throughout my career in the RV industry, I have witnessed a number of cycles,” Rodino said. “From my perspective, consumer demand for smaller, more affordable units tends to lead the broader industry’s recovery.”
Patrick is planting seeds in the soil of 2024 to cultivate an ecosystem. The company will also plot customer service enhancement seeds.
“We believe synergies and harmonies that we can develop with our customers in alignment with our customer-focused philosophy,” Rodino said, “can truly drive positive, innovative experiences for our end users of our products.”
Patrick is planting seeds with its OEM partners as well. Rodino said RV OEMs demonstrated operating discipline in 2023 to maintain lean inventories in addition to preparing for growth. Part of Patrick’s goal is to support OEMs in their innovations.
RV prices have decreased from 2023 models to 2024 models, Rodino said. He said the change could be attributed to decontenting but expects consumers still desire fully contented RVs.
“The prices will remain pretty stable or even maybe go up a little bit with some additional contenting in 2025,” Rodino said, “where I believe the brands are trying to differentiate themselves in the market with a higher-end product and something that is more valuable to that retail customer.”
With seeds planted and a new season on the horizon, Patrick will soon harvest its crop.
