Time to Roam Magazine Issue 5 - October/November 2013 | Page 8

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upfront news

Caravan builder collapses as industry
adjusts to Gen Y demands

8

www.timetoroam.com.au

Caravan Nation – Key facts
• Australia’s caravan and RV manufacturing industry has enjoyed a record run,
producing more than 60,000 units over the past three years
• Traditional caravans account for almost 55 per cent of the market, pop-tops
24 per cent, camper trailers 14 per cent and motorhomes represent around
five per cent
• Over nine million people participated in caravanning and camping experiences in
Australia in 2012, representing 13 per cent of the total domestic tourism market.
Source: CCIA SA

Photo: Ruth Morris

Australian caravan buyers are
increasingly looking for more compact
luxury vans, according to dealers and
industry analysts.
The shift away from much bigger vans
is already having repercussions across
the industry, with a second Victoria-based
manufacturer collapsing in recent months.
Workers at the Campbellfield plant of
Aussie Wide Caravans were made redundant
in September. It follows the collapse of
nearby Creative Caravans as reported in
Issue Four of Time to Roam.
Receivers appointed to oversee the latest
insolvency, Grant Thornton, say the industry
is becoming more competitive while at the
same time younger buyers are choosing
smaller, less expensive caravans.
Stuart Livingstone, Chief Executive Officer
of the SA Caravan and Camping Industries
Association says the latest industry analysis
shows Gen Y buyers, the kids of baby
boomers, are now following in the footsteps
of their parents and entering the market in a
big way.
“This age group is projected to increase
by more than half a million people by
2021, driving a decade of major growth in
caravanning and camping experiences in
Australia,” Mr Livingstone said.
“Research indicates that affordability is
a key issue in this cohort with increasing
numbers seeking value for money holidays
through camping, caravanning and caravan
park cabin stays.”
The shift in buyer sentiment is already
being felt at caravan dealerships. Stewart
Cameron of Hinterland Caravans says the
trend is now for vans below the 20 foot mark.
Following the collapse of Creative and
Aussie Wide Caravans, Mr Cameron
predicts further industry consolidation as
manufacturers come to terms with tight
margins.
“There are 105 caravan manufacturers
within a five kilometre radius of

Stewart Cameron, Director
– Hinterland Caravans

Campbellfield and a lot of them are
reasonably small family-run businesses.”
“I believe we will see more of them
amalgamate in the years ahead and combine
forces and this will be good for the industry.
It’s a view backed by industry analyst firm
IBISWorld which is predicting moderate
industry growth at the rate of 2.3 per cent
over the next five years, generating $2.65
billion.
“Capital intensity is at a low level in the
Trailer and Caravan Dealers industry in
Australia, due to the high level of labour

SA Caravan and Camping Industries
Association CEO Stuart Livingstone

intensity. For every dollar invested in
capital, $9.14 is spent on labour. In other
words, investment requirements for plants,
machinery and equipment are low in the
industry.
“Higher consumer sentiment and
disposable incomes will benefit the industry
over the next five years,” it says.
“The ageing population will also result in
greater customer numbers as more people
enter the main consumer demographic
(those aged over 50).”