by Joe Jeffrey
Future looking bright for caravan industry
Trade body for the caravan, motorhome, caravan holiday home and park home industries in the UK, the National Caravan Council (NCC), is reporting high levels of activity and investment in the caravan industry.
This is clearly demonstrated by the approaching merger of park operators Parkdean and Park Resorts which will result in the largest park operator in the UK, with 73 parks and 1.8m customers, estimated to be valued in the region of £92 million.
Domestic tour operator Hoseasons has reported its fifth record summer in a row, with its lodges and parks products up ten per cent during the summer holidays, compared to the same period last year. Recently, Bourne Leisure, owners of Haven, reported pre-tax profits rising from £82.3 million to £101.9 million for the year to 31 December 2014.
Examples of the buoyancy of the sector are not limited to park operations. The latest NCC member production statistics show that caravan holiday home manufacturers’ invoiced sales in the last 12 months to the end of August 2015 had risen 17 percent to 17,970. New registrations for motorhomes are running at an even healthier +25 per cent up to 10,461. The market for campervan conversions is particularly buoyant with demand often outstripping supply. Just shy of 20,000 touring caravans were despatched to dealers in the same period, an increase of five per cent over the previous year.
This upsurge is fuelling investment in manufacturing facilities. One example is motorhome manufacturer Auto-Trail increasing its Europarc factory on the outskirts of Grimsby by, potentially, 5,000 m² and moving towards a car assembly model. Hull, centre of touring caravan and holiday home manufacturing in the UK, has seen a number of local businesses increase production, expand factories and hire additional staff. Some companies have also expanded their export operations, with Swift Group, for example, seeing a 34 per cent increase in international sales over the last two years.
NCC Director General John Lally said: “While it is fantastic to see interest from venture capitalists to grow the industry, investment in production methods and in product development, this remains a highly competitive market place. Competition for the leisure pound has never been stronger – with countries around the globe wooing holidaymakers.
“Nevertheless, the MAT at the half-year-point showed production across all caravan types up 12.5 per cent (43,761 units -v- 49,176 units). The caravan market – from small manufacturers to huge park groups – has emerged from the recession invigorated, with a terrific product offering and a bright future, as demonstrated at our Motorhome & Caravan Show 2015.”
