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    July 2004 Volume 29 - Number 12    

RV Industry News     


    

Rising Home Prices and Influx of Younger Buyers Spark Record Demand for Recreational Park Trailers

Key manufacturers in Indiana, Georgia, Texas, Florida and North Carolina see record demand for the movable cottages, which appeal to working families and retirees as affordable vacation retreats 
  

There was a time when the only people who knew anything about recreational park trailers were retirees who would set them up as seasonal vacation homes in their favorite campgrounds or RV parks. 

But as rising real estate prices have pushed condominium and vacation home prices beyond the reach of most consumers, working professionals and young families have increasingly discovered they can buy a recreational park trailer or “park model” for about $33,000 or more and lease a site for it in a campground or RV resort for about $1,500 to $5,000 per year, depending on the location. 

“It’s the most affordable vacation home option in America today,” said William Garpow, executive director of the Newnan, Ga.-based Recreational Park Trailer Industry Association, who used to say park trailers were “the best kept secret in the RV industry.” 

But in many parts of the country, the cat’s out of the bag. Dealers are swamped with orders for new units, and manufacturers from northern Indiana to Texas, Florida and North Carolina are seeing some of the highest backlogs in the 25-year-history of the park trailer industry. 

“We’re building more units this year than we ever have, and yet we’re still running behind,” said Curt Yoder, vice president of Kropf Industries, Inc. in Goshen, Ind., adding that his 2004 sales are running about 25 percent ahead of last year’s figures, which had been the best in the company’s history. 

Consider the experience of other park trailer manufacturers: 

  • Breckenridge Division of Damon Corp., a Thor Company: 2003 was the busiest year in the history of Nappanee, Ind.- based Breckenridge, the industry’s largest park trailer producer. But so far this year, sales are up about 5 percent ahead of last year’s record-breaking figures, a significant achievement considering that Breckenridge accounts for nearly a third of the nation’s park model production, said Breckenridge President Tim Howard. 
  • Circle J Enterprises: Rocketing demand for park model cabins is prompting this Cordele, Ga.- based company to move into a large facility this year, with plans to triple its cabin production capacity, according to company officials.
  • DNA Enterprises, Inc.: This Goshen, Ind.-based company, which markets park trailers using the Canterbury brand name, has seen its 2004 sales increase by “30 to 40 percent” ahead of last year’s figures, according to company President Kevin Wells. The company’s best year was 2000, but DNA surpassed its 2000 record during the first six months of this year and is now facing a growing backlog of orders for new units. “We’re out almost 13 to 14 weeks, and we’re running the plant at full capacity,” Wells said, adding, “We physically can’t build any more.”
  • Dutch Park Homes, Inc.: Sales by this Goshen, Ind.-based company are running more than 20 percent ahead of last year’s record breaking figures, according to Stu Holaway, the company’s vice president of sales and marketing. 
  • Forest River, Inc.: Jim Foltz, general manager of Forest River, Inc.’s park model division in Elkhart, Ind., said demand for his company’s products are at record levels. 
  • Heritage Park Models, Inc.: This Elkhart, Ind.-based company has seen a 40 percent increase in sales this year, said Jim Hite, the company’s general manager. 
  • Lee Enterprises Manufacturing Co., Inc.: This Elkhart, Ind.- based company, which is celebrating its 20th anniversary this year, is seeing the strongest demand ever for its products. “This is absolutely our best year ever,” said company co-owner Micki Lee. “We’re up at least 30 percent from any past year.”
  • Log Cabin Homes, Inc.: This Rocky Mount, N.C. company, which manufactures log cabinstyle park models, has had to quadruple its workforce in recent months to accommodate record demand for its portable log cabins, according to company President Tom Vesce.
  •  Park Cabins, Inc.: This Cairo, Ga.-based park model cabin manufacturer has experienced a 30 percent increase in sales this year compared to last year, said company President Mike Fannon. He added that the company plans to build a larger facility later this year to provide additional manufacturing space. 
  • Trophy Homes, Inc.: This Elkhart, Inc.-based company is experiencing the strongest backlog in its 33-year history, said sales representative Roger Byce.
  • Woodland Park, Inc.: Sales by this Middlebury, Ind.-based company are up 52 percent compared to last year’s figures. “There’s more and more doors opening up for us, and there’s new opportunities,” said Jeff Schmuhl, Woodland Park’s national sales manager. 

Dealers and manufacturers say the growing demand for recreational park trailers is being fueled not only by rising real estate costs for land and site built homes, but the increasing attractiveness of the units themselves. 

Unlike mobile homes, which are a form of low-cost, permanent housing, park models are movable resort cottages that are designed exclusively for part-time recreational use. Typically upscale in appearance, they often include bay windows and lofts as well as walnut, oak or maple cabinetry. And they can be left on a permanent campsite for an entire season. 

The attractiveness of the units, combined with their relative affordability compared to site-built homes, has lured growing numbers of younger buyers into the park model market, strengthening sales as well as the business base of the park model industry. 

While park models have traditionally been a product of choice for retirees, younger buyers are increasingly entering the market. In fact, 45 percent of the nation’s park model buyers had full-time jobs in 2003, according to statistics compiled by the Recreational Park Trailer Industry Association. “Our surveys increasingly tell us that recreational park trailers are no longer the exclusive domain of retirees,” Garpow said. 

Sales are also increasing as more and more of the nation’s campgrounds purchase park models for use as rental units. Other campgrounds find that they can stabilize their revenue streams by leasing some of their campsites to park model owners who need a place to park their unit for an entire season or year round. Some campgrounds, in fact, are becoming park model dealers themselves, complementing the manufacturers typical distribution channels, which include park model and RV dealerships. 

To interview park model owners, campground owners or to receive general information about the park model industry, please contact William Garpow, executive director of the Recreational Park Trailer Industry Association, at (770) 251-2672 or visit the association’s website at www.rptia.com.

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