Wednesday, August 30, 2006
WHAT IS FEMA GOING TO DO WITH ALL THE USED TRAILERS?
RV Business
Wednesday, August 30, 2006
The fate of the approximately 35,000 recreational vehicles and 70,000 Emergency Living Units (ELUs) manufacturers built as temporary housing for victims of the 2005 hurricanes remains unknown once the residents leave them for permanent dwellings.
The Elkhart Truth reported that rumors have surfaced indicating the Federal Emergency Management Agency (FEMA) will stockpile the units for the next natural disaster or burn the units. However, the industry believes the bulk of those units may roll back onto the market.
At Dandy RV Sales in Birmingham, Ala., owner Jim "Dandy" Cooley said he is concerned about the FEMA units being sold but, he noted, "I don't think it's going to be as bad as people think."
Pointing out that retail giants Wal-Mart and Neiman Marcus exist in the same marketplace, he said the availability and low price of the used hurricane units will not entice all RV buyers.
Similar worries surfaced after four hurricanes whipped Florida in 2004.
"It was much ado about nothing," said Lance Wilson, executive director of the Florida RV Trade Association (FRVTA), noting the market absorbed the units that were resold.
Wilson does fear that uninformed consumers who buy the FEMA units could sour on the RV lifestyle.
For the 2005 hurricane relief effort, some RV manufacturers built their typical travel trailers while others produced trailers according to FEMA specifications.
The Truth reported that the FEMA units, dubbed ELUs, have no exterior graphics, one window on each side and a door. These units have no holding tanks but come with plumbing that is configured to hook into water and sewer lines.
Since the FEMA units lack some of the amenities of a traditional travel trailer, Cooley shares Wilson's fear. He anticipates that up to 50% of the people who buy one of these used units will leave the RV market.
The potential for retail sale was why Heartland RV in Elkhart, Ind., chose to build standard trailers instead of ELUs. Like many RV manufacturers, Heartland sold units to its dealer network which, in turn, sold to FEMA.
With the outside emblazoned with colorful designs and the inside featuring matching fabrics, Scott Tuttle, vice president of marketing at Heartland, said the trailers could easily be sold as retail if FEMA did not pick up the entire order.
"There will be a glut of travel trailers down South in a year and a half," Tuttle said.
Tuttle and Sid Johnson, marketing director of Jayco Inc. in Middlebury, said if the federal government does sell the units and the market becomes saturated, RV manufacturers in Elkhart County could be forced to slow production.
Wednesday, August 30, 2006
The fate of the approximately 35,000 recreational vehicles and 70,000 Emergency Living Units (ELUs) manufacturers built as temporary housing for victims of the 2005 hurricanes remains unknown once the residents leave them for permanent dwellings.
The Elkhart Truth reported that rumors have surfaced indicating the Federal Emergency Management Agency (FEMA) will stockpile the units for the next natural disaster or burn the units. However, the industry believes the bulk of those units may roll back onto the market.
At Dandy RV Sales in Birmingham, Ala., owner Jim "Dandy" Cooley said he is concerned about the FEMA units being sold but, he noted, "I don't think it's going to be as bad as people think."
Pointing out that retail giants Wal-Mart and Neiman Marcus exist in the same marketplace, he said the availability and low price of the used hurricane units will not entice all RV buyers.
Similar worries surfaced after four hurricanes whipped Florida in 2004.
"It was much ado about nothing," said Lance Wilson, executive director of the Florida RV Trade Association (FRVTA), noting the market absorbed the units that were resold.
Wilson does fear that uninformed consumers who buy the FEMA units could sour on the RV lifestyle.
For the 2005 hurricane relief effort, some RV manufacturers built their typical travel trailers while others produced trailers according to FEMA specifications.
The Truth reported that the FEMA units, dubbed ELUs, have no exterior graphics, one window on each side and a door. These units have no holding tanks but come with plumbing that is configured to hook into water and sewer lines.
Since the FEMA units lack some of the amenities of a traditional travel trailer, Cooley shares Wilson's fear. He anticipates that up to 50% of the people who buy one of these used units will leave the RV market.
The potential for retail sale was why Heartland RV in Elkhart, Ind., chose to build standard trailers instead of ELUs. Like many RV manufacturers, Heartland sold units to its dealer network which, in turn, sold to FEMA.
With the outside emblazoned with colorful designs and the inside featuring matching fabrics, Scott Tuttle, vice president of marketing at Heartland, said the trailers could easily be sold as retail if FEMA did not pick up the entire order.
"There will be a glut of travel trailers down South in a year and a half," Tuttle said.
Tuttle and Sid Johnson, marketing director of Jayco Inc. in Middlebury, said if the federal government does sell the units and the market becomes saturated, RV manufacturers in Elkhart County could be forced to slow production.
