The Caravan Industry in Australia faced increasing challenges throughout the first half of 2022 with mounting complexities posed by increased costs of business, rising energy prices, supply chain and rising workforce costs. Labour shortages and rising workforce costs have been recognised as major factors being felt by the industry (76% of the industry). While rising energy costs remain as one of the largest cost of business in the industry with 90% of the sector feeling the pinch.
The release of Caravan Industry Association of Australia’s bi-annual Business Conditions Report (July 2022) shows the industry is buoyed by strong orders and bookings and these factors need to remain robust to combat the rapidly rising costs and weakening profit margins.
Caravan Industry Association of Australia CEO, Stuart Lamont says while he’s pleased to see the industries contribution to both the domestic tourism market and manufacturing industry remains strong, the rising costs of business is a concern.
“Every segment of our industry is hurting in some way; many face no other alternative than to pass some of the additional costs onto the consume,” Stuart says.
However, there is some positive news on its way for the industry, as revenue is expected to hold steady with potential for growth over the next six months as employment levels and capital expenditure stabilise. This will be offset though by the expected increases in average wage costs, material prices and overheads and a further weakening in the economy aligning with broader finance, industry, and consumer sentiment on the impact of future interest rate rises and economic uncertainty.
“The next six months is going to prove challenging as our industry navigates multiple economic factors. Our steady consumer demand means the industry will remain in good shape, but at what cost?” said Stuart.
