The RV Industry Is Overbuilding Again, and a Major Dealer Says Owners Could Pay the Price

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The RV industry is once again producing more units than consumers are buying, and one major dealership executive says the effects could reach beyond crowded dealer lots.

Ben Hirsch, chief operating officer of Campers Inn RV, has warned that RV production is not adjusting quickly enough to declining retail demand. During a recent interview on the RV Miles Podcast, Hirsch explained how excess inventory and uneven factory schedules could affect both the value and quality of RVs.

Current market figures support his concerns.

New RV registrations fell nearly 22% in March and almost 17% in April compared with the same months last year, according to reporting from Reuters.

Factory shipments have also declined, but not always as quickly as retail demand. Manufacturers shipped 138,160 RVs through May, down 14.4% from the same period in 2025, according to the RV Industry Association’s latest shipment report.

May shipments alone fell 18.7%. The towable market recorded a 21.3% decline, including a 38.1% drop in fifth-wheel shipments. Motorhome shipments increased 2.2%.

The gap between production and actual consumer purchases has left dealers trying to clear unsold RVs during what would normally be the industry’s strongest selling season.

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Why New RV Discounts Can Hurt Current Owners

In an earlier commentary about the industry’s inventory problem, Hirsch said retail sales fell approximately 20% during the first quarter while factories reduced production by only about 12%.

“The RV industry is overbuilt again, and this time we can’t blame COVID,” he wrote.

Those extra units eventually arrive at dealerships. When too many RVs remain unsold, dealers may turn to larger discounts, manufacturer incentives and clearance pricing to move aging inventory.

That can create opportunities for shoppers, but it can also place pressure on the value of RVs people already own.

“If new RV prices are declining, then the trade values can also be hit.”

Dealers must consider the price of comparable new models when valuing a used RV. A one- or two-year-old trailer becomes harder to sell when a similar brand-new unit is available at a steep discount.

A dealer may respond by reducing its trade-in offer. Private sellers may also need to lower their asking prices to compete.

The effect will vary by brand, floor plan, condition, age and local demand. It does not mean every RV is rapidly losing value.

Still, heavily discounted new inventory can make an already difficult financial situation worse for owners who purchased when prices were higher.

Many pandemic-era buyers financed their RVs over 15 or 20 years. Some may now owe considerably more than their RV would bring through a trade or private sale.

“That’s going to impact the trade value or my resale value on the private market.”

Someone shopping without a trade may benefit from today’s discounts. An owner trying to replace a recently purchased RV may find that the lower sale price on the new unit is offset by a much weaker trade offer.

Factory Slowdowns May Make Quality Less Consistent

Hirsch says the inventory imbalance may also affect how RVs are built.

Most RVs remain largely hand-assembled. Production workers install plumbing, wiring, cabinets, appliances, roofing materials and other components as each unit moves through the factory.

The process depends heavily on repetition and experienced employees who know the models moving through their stations.

When demand weakens, manufacturers may reduce the number of days their factories operate. Some plants may shut down for weeks, change production rates or move workers among different floor plans.

“Any manufacturing line isn’t meant to be a light switch.”

Reuters reported that Alliance RV reduced most of its production lines from five days per week to four after spring sales weakened. Other manufacturers were running limited schedules or consolidating production.

Hirsch said a factory may go from operating five days per week to four, three or two. Workers can lose the rhythm that comes from completing the same processes repeatedly, especially when different floor plans are placed on the line.

Longer shutdowns can also lead to employee turnover. Some workers may find other jobs rather than waiting for production to resume, leaving manufacturers to train replacements when schedules pick back up.

Hirsch did not say that every RV produced during a slowdown will have defects. His argument is that irregular schedules and frequent changes make consistent workmanship more difficult in an industry that still relies heavily on manual labor.

“That lack of consistency on the production line directly impacts quality for the customer.”

RV quality was already a major concern before the latest sales slowdown. Hirsch said he believes some materials and components have improved since 2018 and 2019, but customer expectations have also risen as other industries have improved their products and service.

Manufacturers therefore face pressure from both directions. Buyers want better workmanship, but the larger portion of the current market is seeking lower prices.

Producing a better RV generally requires better materials, more inspections or additional labor. Those changes can raise the price at a time when affordability is one of the main factors limiting sales.

Why the Industry Keeps Overbuilding

The RV industry dealt with a much larger inventory problem after the pandemic-era boom.

Manufacturers shipped more than 600,000 RVs in 2021 as consumers turned to road travel and outdoor recreation. Demand later dropped, leaving dealers with excess inventory that took years to clear.

Hirsch argues that the current imbalance exposes a broader problem with how RV production is planned.

Manufacturers often build from purchase orders submitted by dealers months earlier. Dealers must predict which models and floor plans customers will buy during the next selling season.

Those predictions can be too optimistic.

A dealer may place orders based on expected spring demand, only for consumer confidence, interest rates, fuel prices or other economic conditions to change before the units arrive.

The factory has already scheduled employees, ordered components and passed its own forecasts to suppliers. A moderate decline in actual retail sales can then create a much larger inventory problem across the supply chain.

This amplification is commonly known as the bullwhip effect.

Dealers may initially order too many RVs, followed by abrupt cancellations or reduced orders once inventory accumulates. Manufacturers respond with production cuts and shutdowns. Suppliers then face their own sudden changes in demand.

The result is a repeated cycle of shortages, overproduction and clearance sales.

Hirsch Wants Production Tied More Closely to Retail Sales

Hirsch believes dealers, manufacturers and suppliers need to share real sales data more quickly.

Campers Inn RV provides its retail figures to its manufacturer partners. Hirsch says wider use of current sales numbers would allow factories to adjust before large amounts of unwanted inventory reach dealer lots.

For example, a dealer may have 1,000 units on order but later determine that its current sales rate supports only 800. The dealer and manufacturer could postpone the remaining 200 rather than allowing all of them to arrive on the original schedule.

That would not require shutting production off entirely. The manufacturer could spread the orders over a longer period, helping the factory maintain a steadier schedule while giving the dealership time to sell its existing inventory.

“The customer wins when the channel is steady.”

More stable production would not necessarily mean higher RV prices. Hirsch’s goal is to reduce the swings that take the market from limited inventory and rapidly rising prices to overcrowded lots and aggressive liquidation sales.

Consumers could then shop at more predictable prices instead of waiting for the next fire sale. Owners could face less volatility in trade and resale values, while factories could maintain more consistent schedules for their employees.

What This Means for RV Buyers and Owners

The current market may offer strong buying opportunities for people who have cash, favorable financing or no recent RV to trade.

Shoppers should still look beyond the advertised discount. A deeply reduced price may reflect an aging model year, excess regional inventory or a floor plan that has been difficult for the dealer to sell.

Buyers should compare the final price with financing costs, warranty coverage, expected depreciation and the dealership’s ability to provide service after the sale.

Current owners may have a harder decision.

Trading an RV while values are under pressure can lock in a large loss, particularly for someone who still owes more than the unit is worth. Keeping the RV longer may provide time to reduce the loan balance, although future market values cannot be predicted.

Hirsch is not arguing that consumers should stay out of the RV market. His warning is that the industry’s repeated swings between shortages and overproduction can follow an owner long after the original sale.

Today’s discounts may help new buyers. They can also show how quickly the value of an existing RV changes when factory production and consumer demand fall out of balance.

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