RVDA of Canada Report March 31, 2016

Canada National RV Retail New Unit Stats through March 31, 2016

RV unit sales continued to struggle in the first three months of this year, down almost 18 per cent across all segments. Total sales dropped from 5099 to 4185 in the first Quarter, with significant declines in all RV segments.

Though overall new vehicle sales remain robust, no other retail sector is per-forming well in Canada so far in 2016 and RV sales reflect these challenging conditions. Despite the continued availability of finance products and historical affordability in terms of current RV purchase prices, consumers are not making large-scale consumption decisions in the current climate.

RV Park Employment on the Upswing

Despite a challenging year for RV sales in Canada, employment in RV parks and recreational facilities increased strongly last year, with an average monthly employment level in excess of 15,000 for the first time ever. Much of this has to do with increased tourism traffic at both domestic and foreign levels in Canada last year.

GOVERNMENT RELATIONS:

The Recreation Vehicle Dealers’ Association of Canada (RVDA) and Canadian Campground and RV Council (CCRVC) hosted a joint advocacy push on Parliament Hill on April 13th and 14th 2016.

On April 13th members of both associations gathered for a reception at the Parliamentary Restaurant on the sixth floor of Centre Block that was attended by many Members of Parliament despite ongoing committee meetings and votes on the Hill. The reception gave RVDA and CCRVC representatives an opportunity to informally discuss issues related to the RV and camping industries in Canada, while enjoying some Ottawa hospitality.

On April 14th the group began its day at a breakfast hosted by Gudie Hutchings, Parliamentary Secretary for Small Business and Tourism. As a lifelong sup-porter of the RV and camping industry, Ms. Hutchings shared many personal stories as well as her insights on moving the industry forward on the agenda of the current government.

In total 40 meetings were held with officials in Ottawa on April 14th, as well as a number of meetings in the riding both prior to and following the Parliament Hill Days – cumulating in a total of 50 meetings overall. Representatives were able to secure a number of commitments from legislators that will help to encourage investments and regulatory changes to assist Canada’s RV industry over the years to come.

Issues that currently impact our industry:

1. Increased investment in tourism policies to support the RV industry is needed, as part of a comprehensive Canadian Tourism Framework:
   • RVing and camping are large components of tourism, both internally (Canadian) and externally (from outside Canada). There is a crucial need for this to be recognized by Destination Canada as a viable growth area for tourism in Canada.
     

     Recommendation:

   • Destination Canada advertising and messaging should include particular reference to RV and Camping opportunities to those target markets where RV rentals are being offered in Canada. Promotion should gear towards highlighting a new way to discover Canada. The RVing industry contributes billions to the Canadian economy, and advertising in targeted markets in crucial if we want Canadians to travel within Canada instead of going to the United-States. With the generous 2016 Budget contribution of $50 million over two years to Destination Canada, for marketing initiatives in the United States and China, there is a significant opportunity to expand on RV-based marketing initiatives.
2. Shortage of Skilled Trade Workers in RV Industry in Canada
   • There is currently a huge shortage of skilled trade workers employed in the RV industry
   • Canada-wide, there are currently not enough new college apprentice program graduates to replace those who will leave the work-force.
     

     Recommendation:

   • In order to promote job creation in Canada, the federal government must play a lead role to support RV service technician apprentice programs across the country.
   • The government can offer additional incentives to apprentices if they go for training outside their province since currently; there are limited schools that offer RV technician training.
3. Critical infrastructure in our national parks and tourism investment to support the RV industry is needed
   • RVing and camping are large components of tourism, both internally (Canadian) and externally (from outside Canada). The Government of Canada should provide targeted and dedicated investment in camping/RV infra-structure in Canada’s National Parks. Investing in camping/RV infrastructure will play a critical role in the overall contributions of the tourism industry to future economic development and prosperity. The critical need for investment in RV infrastructure in our national parks must be included in the expansion of Canada’s national parks, as out-lined by Budget 2016.
   • There are over 3,000 independently owned and operated campgrounds across Canada, each offering a unique experience for Canadians and inter-national visitors. As camp-ground services continue to rise in demand, critical infra-structure needs -such as sizing requirements to accommodate larger RVs and access to appropriate electrical outlets and waste disposal facilities -remain unfunded.
     

     Recommendation:

   • Budget 2016 proposes the expansion of our national parks, along with marine conservation areas, by providing up to $142.3 million over five years, starting in 2016–17. This is an opportunity for the government to commit dedicated funding towards required RV infrastructure in our national park system, which is critical requirement for the industry to thrive.
   • As campground services continue to rise in demand, critical infrastructure needs, such as sizing requirements to accommodate larger RVs and access to appropriate electrical outlets and waste disposal facilities, remain unfunded. The funding could come from the Consolidated Revenue Fund and/or proposed funding from Budget 2016.
   • Implementation of this recommendation would benefit both RV retailers, as engines of the economy, productivity, employment and economic growth, as well as chain of tourism services and products and general retailers across Canada.

2016 SKILLS CANADA NATIONAL COMPETITION (SCNC):

The 2016 Skills Canada National Competition will be held in Moncton at the Moncton Coliseum from June 5 – 8, 2016. The RVDA of Canada will once again be participating in this event in order to showcase the RV Service Technician Trade as well as other career opportunities available at an RV Dealership.  Our participation will include:

• A total of 600 square feet of booth space has been acquired.
• The in-booth hands-on activity will feature the making of a key holder that will require the use of several power tools, as well as numerous skill sets including: assembly, measuring, cutting, gluing and nailing. Audiences of all ages will be able to participate.
• Appliances will be supplied by NTP Stag Coast Canada.
• The committee has plans to send out press releases in hopes to attract more media attention prior to this event.

Thank you to CRVA and NTP Stag Coast Canada who have committed to sponsorship.