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.
Continued
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