THOR Industries has lowered its Recreational Vehicles (RV) inventories due to high demand in North America.
So far, dealer inventory levels continue to decline materially relative to current sales levels based on strong retail demand for RVs.
Why is this happening? According to THOR Industries, it is because of the following: the perceived safety of RV travel during the Covid-19 pandemic, a strong desire to socially distance oneself, and the reduction in commercial air travel and cruise ships, as well as the underlying desire of many to return. to nature and relax with family and friends.
As of July 31, 2021, the inventory levels of its North American distributors were well below optimal storage levels, which has led to an increase in orders and the backlog of orders from distributors.
THOR’s RV North America order book as of July 31, 2021 increased $ 9.084 million, or 215.5%, to $ 13.299 million, compared to $ 4.215 million as of July 31, 2020, with the order book of Tiffin Group included in the July 31, 2021 totals that represent 767 million, or 8.4%, of the increase of 9,084 million.
To highlight: THOR industries is the largest manufacturer of recreational vehicles in North America and one of the largest manufacturers of recreational vehicles in Europe.
The company manufactures a wide variety of vehicles in the United States and Europe, and sells those vehicles, as well as related parts and accessories, primarily to independent, non-franchise dealers in the United States, Canada, and Europe.
Recreational vehicles
The company monitors industry conditions in the North American market for these vehicles using a number of resources, including its own performance monitoring and modeling.
Financial Indicators of THOR Industries
Also THOR Industries considers monthly wholesale shipping data as reported by the Recreation Vehicle Industry Association (RVIA), which is generally issued with a one-month delay and represents North American vehicle production and delivery of manufacturers to distributors.
Additionally, the company monitors monthly retail sales trends in North America as reported by Stat Surveys, whose data is generally released with a month and a half delay.
