CANADA — In the RV industry, the Canadian Recreational Vehicle Association (CRVA) Quarter 2 report showed positive signs of recovery with a 24 percent increase in wholesale shipments and Statistical Surveys Inc. (SSI) data pointed to a 7.7 percent increase in retail sales across Canada.
However, the Wells Fargo CDF RV Team reports that based on its discussions with our dealer and vendor clients, the high product demand and current production capacities may strain product availability.
The report also finds that Canadian inflation is still low and recent Bank of Canada target rate increases are aimed at removing emergency accommodations implemented during oil industry crunch. With these rate increases, highly leveraged households may feel burdened with further increases in the target rate.
The Wells Fargo Commercial Distribution Finance and RVDA of Canada Economic Outlook Webinar with Tim Quinlan on Sept. 6 also took a poll during the webinar, which found that:
- The majority of the participants feel positive about the Canadian economy and the 2018 RV season.
- There are plans to order the same or more inventory as last year in anticipation of the 2018 season.
- Product availability is expected to be the most significant challenge for next year.
Source: Wells Fargo CDF RV Team press release