While some recreational-vehicle dealers here are reporting slower sales this year, others arent, and those in the industry say the Spokane-area market isnt as deeply in the doldrums as it is in other parts of the country.


On the national level, the culprit isnt so much the price of fuel, but rather one of lagging economic confidence, which is especially low where home values have declined steeply, says the Fairfax, Va.-based National RV Dealers Association, an industry trade group.


There are exceptions to the rule, too: Freedom RV Inc., a Spokane Valley dealership, is having a record year, with sales up 44 percent, says Mike Mohondro, sales manager.


Were in our sixth year in business, and weve had an increase in sales every year, Mohondro says.


Meanwhile, at RnR RV Center, of Liberty Lake, sales are off about 20 percent from last years pace, says Ray Bunney, who owns the dealership with his wife Jo. He adds that RnR had record revenue of $35 million in RVs sales, parts, and service in 2007.


Bunney says this years sales are more in line with those of 2004 and 2005, and says, Those were good years for us.


Nationwide, the RV industry is seeing its second straight year of decline.


For the first half of this year, the number of towable RVs that manufacturers shipped to U.S. dealers was down 18 percent compared with the year-earlier period, says Phil Ingrassia, spokesman for the National RV Dealers Association.


Ingrassia suspects that total sales volume is off by a greater margin, because the drop-off in RV shipments is steepest among the more expensive motor homes, which start at about $60,000 new, while towable RVs start at under $10,000.


Factory shipments of motor homes fell 32 percent in the first half of this year, compared with the year-earlier, period he says. Among motor homes, the biggest decline in shipments was in the high-end type A motor homes that are built on bus frames and cost upwards of $100,000. Shipments of such models were down 45 percent during the first half of the year.


The association estimates that manufacturers will ship 304,400 RVs nationwide this yearthe lowest number since 2001. Manufacturers shipped 353,400 RVs in 2007, down 9.5 percent from 2006, when they shipped 390,500 units and the volume of new RVs sold in the U.S. peaked at $14.7 billion, the association says.


Ingrassia says the tightening availability of credit is the biggest factor for the decline, followed by a general decline in consumer confidence. In regions where home values have dropped significantly, many homeowners are experiencing a corresponding drop in wealth, he says.


The regions hit hardest by the housing bust are traditionally large RV markets. Southern California is big, he says. The Spokane area, on the other hand, didnt go through such a steep run-up in housing prices and probably wont see a big bust.


That could be helping the RV market here remain stable, Ingrassia says.


Also, he adds, The Spokane market is very outdoorsy. People there are predisposed to outdoor vacations.


Gas and diesel prices are only a minor factor in the sales declines, he says.


RVers can adjust to higher fuel prices by driving fewer miles, he says. Theres still substantial savings in RV vacations compared with other forms of travel.


Some RV users may be renting instead of buying, Ingrassia says, noting that RV rentals are expected to jump 18 percent this year, compared with 2007.


Earlier this year, RnR bought a competitor, Blue Crick RVs, in Airway Heights.


Blue Crick, located on seven acres of land at 13918 W. Sunset Highway, specializes in new and used towable RVs. Its new inventory includes models manufactured by Big Sky, Hornet, Keystone, and Dutchmen.


RnR has an inventory of about 250 new and used RVs on 15 acres of land at 23203 E. Knox, in Liberty Lake, where it operates under the RnR name. The dealership has three sales and service buildings with a total of 63,000 square feet of floor space, plus a recently completed 1,800-square-foot hamburger restaurant. RnRs new models are made by several manufacturers, including Winnebego, Fleetwood, Holiday Rambler, and Keystone.


Bunney says employment has remained stable at both Blue Crick and RnR. RnR has about 85 employees, and Blue Crick has 19 employees.


He says the RV season here got off to a slow start because of the weathernot because of historically high gas prices.


Here in the Northwest, the majority of RV users are not going to quit living because gas goes up to 4 bucks, he says. Because of the late arrival of spring weather, however, there were about 45 days everybody still had their RVs in storage when we would normally see lots of traffic.


At Freedom RV, the largest increase in sales this year has been in used RVs, which bring in two-thirds of the dealerships total revenues, Mohondro says.


Despite that increase, the dealership, located on about 3 acres at 7807 E. Sprague, has seen a slowdown in the sales of high-end motor homes priced in the $100,000 to $300,000 range, he says.


Freedom RV, which has a 16,000-square-foot building with a showroom and a shop with eight service bays, is even planning to expand its display area onto another three acres within a year, he says.


He says the Inland Northwest customer base has been somewhat insulated from more dramatic economic swings in other parts of the country.


People here are taking shorter trips, but campgrounds are filling up every weekend, he says. In California and Arizona, thats not the case.


Freedom RV has an average inventory of 150 RVs. It carries new RVs made by Monaco, Fleetwood, Lance Camper, and Forest River.


Towable RVs account for 70 percent of the units sold, and of those, 10 percent are fifth-wheel trailers, which connect to a towing mount in the bed of a pickup, Mohondro says.


Rich Morey, general manager of R&L RV Sales, of Hayden, Idaho, says sales volume there is down about 12 percent, although the total number of units sold is down only about 5 percent.


Were operating at a profit, Morey says. Its not on par with the last couple of years, but its OK.


Lower-end models are selling better than higher-end models, he says.


Banks are all pulling in their reins, Morey says. Someone with good credit can still get financing, but it may be on shorter terms.


Interest in used RVs is as strong as ever, he says.


Weve always been able to sell all the used RVs we can get our hands on, Morey says.


R&Ls new RVs include models made by KZ and Forest River.


Morey, who has been in the RV business since 1972, has seen several down cycles, starting with the 1973 oil crisis, he says, adding, But in 1976, we were rocking and rolling.


Following another downturn in 1979 and 1980, sales started taking off again in 1982, he says. Since then, sales have been steady and increasing, except for a little bump in about 1992.


RV sales are a good barometer of economic confidence, Morey says.


Sales cycles in the RV industry lead the country in and out of economic cycles, he says. People buy RVs with their emotions. If people think the economy is not so good, the first thing they do is give up toys. When theyre feeling good the first thing they do is go out and buy toys.


He says hes expecting sales to pick up again as more people shift to RV vacations rather than air travel.


Contact Mike McLean at (509) 344-1266 or via e-mail at mikem@spokanejournal.com.