Berkshire Hathaway’s recreational vehicle maker Forest River is benefiting from industry-wide record sales for recreational vehicles.
After slumping during the Great Recession, sales are now hitting new highs as Millennials have embraced RVs as a popular vacation alternative to hotel and motel lodging.
According to the Recreational Vehicle Industry Association’s September survey of manufacturers, RV wholesale shipments finished at 43,598 units, an increase of 29.4% over the 33,704 units shipped last September. September 2017 shipments are the best September on comparable record.
RV wholesale shipments have climbed to 378,006 units through nine months of 2017, up 16.6% over the 324,286 units shipped during the same period last year.
All towable RVs, led by conventional travel trailers, totaled 38,543 units for the month, an increase of 31.8% compared to the 29,233 units shipped in September 2016. Year-to-date totals for towable RVs are up 17% to 330,673 units.
September motorhome shipments are up 13.1% to 5,055 units over last year; paced by solid gains in Type C motorhomes. Year-to-date motorhome shipments have reached 47,333 units on 13.8% growth over the 41,599 units shipped during the same time last year.
Forest River is working hard at increasing its capacity, with facility expansions at its plants in the Indiana cities of LaGrange and Butler.
The company will spend $2.9 million to build a 100,000-square-foot facility in Butler, and will employ 150 workers when it is completed.
© 2017 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.