Where is my RV?

 

It’s difficult to find an area of our lives that COVID-19 hasn’t affected. The pandemic is also the reason RV prices are going up. To start, manufacturers are facing significant increases for input materials (think aluminum and stainless steel). Naturally, when production costs go up, it trickles down to you. Overall, manufacturing’s rising costs are impacting big-ticket items like cars, trucks and RVs

Beyond directly affecting production, the price of transporting everything has also increased.

So how much more can you expect to pay? It depends on your preferred brand and what product you want to buy, and since manufacturers set the retail price in most cases, you can expect to see the increased cost on many RVs no matter which retailer you go to.  If you’re in the market for a new RV you’ll also be up against a stock shortage. Again, COVID-19 is the culprit causing those “out of stock” messages you may have spotted when you’ve browsed.

Supply chain issues started in China — a country that’s home to many parts manufacturers — more than a year ago. Then, as the pandemic spread, it impacted America’s Midwest and Southern States. Mexico, another major parts supplier, has also been affected. Social distancing protocols reduced efficiency and production output in factories and warehouses around the world.

Production is starting to ramp up again, but there’s another bottleneck in the supply chain to getting RVs from the manufacturers to your home: shipping containers. As exports begin to pick up, products are filling shipping containers faster than they can be transported, causing backlogs that then contribute to increased cost and longer wait times.

 

What you may find surprising is the RV stock shortage is linked to the global computer chip shortage as well. Various reasons contributed to the global chip shortage, but the U.S.-China trade war started it and the pandemic escalated it. Plus, we use computer chips in so many areas of our lives — from smart phones and smart cars to smart appliances — that demand for them is great. That shortage is now starting to ripple though the RV supply chain, and it’s pushing back production on many items.

The final piece of the stock shortage puzzle is demand. COVID-19 has resulted in shipping issues, which were further heightened by the Suez Canal blockage in March. Manufacturers are not exempt from those delays.

RV supply chains were not designed to quickly recover. In fact, the supply chain is close to a year by the time a manufacturer places an order with a supplier, receives the parts and makes a product. That means RVs will continue to be out of stock, back orders will be lengthy, and you may not experience better pricing until as late as spring 2023.

 

 

 

Overcoming Price Increases and Shortages of 2021

 

If you’re thinking of buying an RV in the near future, now might be a good time to make your purchase. Triangle RVs Sales Team can help you navigate some of the challenges.

Realistic expectations will go a long way when shopping in 2021 and beyond. Are you really set on your dream RV If so, be aware that you may have to wait. An item’s in-stock status can shift depending on the manufacturer’s ability to make and ship their appliances.