Eastern Oregon faces RV shortage
Published 7:00 am Tuesday, June 22, 2021
- A 2021 Northwood Grande Ronde sits on a mostly empty lot at Thunder RV Tuesday, June 15, 2021. As of June 15, the company only had four RVs on the lot. {span} {/span}
LA GRANDE — In an average year, the Thunder RV parking lot boasts 30 to 45 RVs, ranging from truck campers to fifth wheels to travel trailers.
As of Thursday, June 15, there were four recreational vehicles sitting in the mostly empty lot at Thunder RV — the only RV dealership in La Grande. This shortage has lasted a full year now, with no end in sight.
“The shortage started last summer right after COVID-19 shut everything down,” Thunder RV salesman Mike Weinkauf said. “I think it’s because people are getting cabin fever and wanting to go out more.”
Thompson RV, based in Pendleton, also has seen a large increase in demand over the last year. According to Thompson RV manager Corrin Thompson, part of this is because Thompson RV is the biggest outdoors recreational vehicle dealer in the world.
“We’re totally sold out for the year,” Thompson said. “We’re actually preselling RVs up to 16 months in advance now. Someone might come in today and want to order an RV, and they won’t get it until the end of 2022.”
The increase in recreational vehicle demand is not just local. According to the RV Industry Association, RV sales in the U.S. have significantly increased during the pandemic, with total 2021 recreational vehicles shipments projected to reach over 576,000, 18% higher than the 2017 record.
However, not all dealerships are seeing the same sales trends.
“According to the national trend, we should be seeing a huge increase in sales, but we’ve actually seen about 50% less sales this year than normal years,” Thunder RV owner Caleb Samson said. “The demand is just far bigger than the supply, and we can’t replace them at the same rate as we’re selling them.”
According to Samson, the company ordered 80 recreational vehicles several weeks ago, but does not know when they will arrive.
Northwood Manufacturing, which produces most of Thunder RV’s supply, is based in La Grande and works with 66 dealerships in Oregon and surrounding states, nearly all of which also face a shortage.
“We would love to increase the number of RVs that we’re making, but there’s several mitigating factors,” said Lance Rinker, director of purchasing and marketing for Northwood Manufacturing and Outdoors RV.
According to Rinker, the two biggest factors of the shortage are labor shortages and increased material costs. Both Northwood and Outdoors employ about 215 employees, 68% of the 315 employee capacity. This number has not risen in recent years.
Northwood and Outdoors each manufacture roughly 230 recreational vehicles every month, a number that has not risen with the increased demand. Rinker estimates manufacturing prices have risen nearly 20% since the onset of the pandemic, partially due to higher fuel prices and lumber shortages.
Retail prices have risen with increased manufacturing costs. Weinkauf said Thunder RV prices have risen 10% in the last year. Prices range from $25,000 for a basic truck camper to nearly $100,000 for high-end fifth wheel.
With no end in sight, Weinkauf said he is optimistic that business will continue to stay busy.
“Well, they’re building them as fast as they can, and we’re selling them just as quickly,” he said. “It’s gonna take some time to catch up.”