Fairmont Homes - Competitors

Fairmont Homes Competition

Now Viewing Fairmont Homes's competition in: Recreational Vehicle Manufacture

Recent Developments

Shipment Decline Continues - RV shipments continue to decline, indicating a potential recession: RV shipments declined prior to the past three recessions. Towable RV shipments fell 4.2 percent the first two months of 2008; motor home shipments fell 22.7 percent. March, April, May, and June are the largest RV shipment months; analysts track those four months closely to gauge both the industry and general economy.

Long-Term Shipments Expected to Rise - Analysts believe that RV shipments will grow long-term, despite 2007 total shipments declining for the first time in five years. While RV shipments are expected to decline in 2008 due to the economic slowdown, total shipments are predicted to be the eighth-highest in the past 25 years. Analysts project that by 2010, 8.5 million households will own an RV, up 6 percent from 2007.

Pilgrim Increases Production - Demand for Pilgrim RVs continues to increase, despite fuel price increases and concerns about the economy. Unlike many other RV manufacturers, Pilgrim's production rose 55 percent in early 2008 and its employment has increased 16 percent. The company's new line of lightweight travel trailers has been well-received by dealers and the public, accounting for the production increase.

Competitive Landscape

Demand is driven by consumer income and demographics, as RV buyers are mainly older. The profitability of individual companies depends on the ability to design desirable products. Large companies have economies of scale in production and distribution. Small companies can compete successfully by concentrating in a special product line or by building components. The industry is fairly capital-intensive: average annual revenue per worker is close to $200,000.

Full Industry Overview For Recreational Vehicle Manufacture

Recreational Vehicle Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US travel trailers, camper, and motor home manufacturing is forecast to grow at an annual compounded rate of 3.8 percent between 2007 and 2012.

Motor Home, Trailer, and Camper Production Growth Levels

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.