RVing in Alberta – State of the Industry

Lacombe RV GM Pat Hodgins Speaks on the RV Business

Oct 20, 2009

Pat Hodgins, with years in the business and currently general manager of Lacombe RV, shares his observations on RVing in Alberta. His conclusion: RV sales is a fun job.

Pat Hodgins has been involved in the RV industry in one way or another for years. Pat is General Manager of Lacombe RV, one of the largest RV dealerships (with one of the newest showrooms) in central Alberta. The business specializes in truck campers and towables (fifth wheel and travel trailers).

How would you describe the current state of the RV sales industry in Alberta?

Here in Alberta, we're thriving despite the recession. Campgrounds are full; no matter what kind of weather we get in Alberta, people tough it out. At Lacombe RV, we're seeing more first-timers, people with young families that are going for the bunk models.

Because of the global recession, there has been a downsizing in the number of manufacturers in the last year, so that has definitely affected the industry... There's lots of product out there that doesn't have a home, that has to be sold with no warranty because the manufacturer has disappeared, so it has really increased the importance of the extended warranty programs that are available.

And perhaps that emphasizes the importance of those RV dealers who are still in business and are there to help customers?

There's a lot of choices for buyers, and so reputation and longevity and the service after the sale becomes even more important.

What differences do you see between RV sales in Canada and the US?

A big challenge for our industry is that we sell luxury items, and the banking industry has really tightened up on the credit that is available to consumers... The banks want a lot more money put down, they want more equity. It used to be that if you were in the oil patch you could sign up for just about anything you wanted. Now, they're more concerned about debt ratio.

Definitely I think we're insulated in this province (Alberta) with our wealth of resources, and there's still a lot of money around. I think people are choosing to spend time with their family [in an RV] and enjoy the time that they have. There are a lot of people in the oil field that have told me, “Yes, things are slow, but it's about time.” They haven't had a break for years and years and years.

What's the greatest challenge of being in the RV sales business these days?

There's starting to be a supply problem.... Manufacturers have downsized, they're not running full weeks in the States, so it takes longer to get people their units. Longer delivery times. And because so many of the Canadian suppliers have not survived, the volatile dollar is very challenging to the Canadian RV industry because so much hinges on when you buy the unit, what your exchange rate is, it could be ten, fifteen, twenty percent variance... When you buy your inventory (and when your neighbor bought his inventory) really affects your competitive position.

What would you say is the best thing about being in the RV business?

It's just a fun product to sell. People are going to go out and have fun, it increases their enjoyment of life.

AIC101

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