The Latest RV and Manufactured Housing News from Northpoint Canada
By Chris Cook and Chantal Robin
Both the RV and Manufactured Housing divisions of Northpoint – Canada remain strong, with sales and support teams actively engaged in industry initiatives and in facilitating business growth for our OEM and dealer customers.
RV INDUSTRY UPDATE
On the RV front, we were all thrilled to see the governmental removal of the 25% surtax on motorhomes, a welcome change enthusiastically embraced by OEMs, dealers, and associated businesses throughout this sector. The Bank of Canada also cut policy interest rates by 25bps to 2.5% on September 17, creating even greater momentum to incentivize and stimulate retail activity and sales.
A few other key performance indicators worth noting … year-to-date RV wholesale shipments into Canada decreased 15%, as dealers continue to aggressively focus on clearing aged product. In addition, RV rental activity reveals an upward spike, based on direct feedback from Northpoint clients.
Members of the Northpoint Canadian Sales Team is attending and fully engaged to support major industry events including the Toronto Fall RV Show (was held October 17- 19); Salon du VR de Québec Oct 30 to Nov 2; and the RVDA Convention November 10-14 in Las Vegas. We were also pleased to recently attend the RV Open House September 22-25 in Elkhart, Indiana and to participate in many events including Forest River’s inaugural Canadian Night festivities. We thoroughly enjoyed the opportunity to mix, mingle, and meet many dealers and manufacturer representatives.
MANUFACTURED HOUSING INDUSTRY UPDATE
A bright spot on the MH horizon: continued interest rate reductions are hoped to spur consumer sales activity and business growth.
In addition, Northpoint Canada is very encouraged to learn through multiple news sources that the Canadian government is investing billions in housing through a new agency called Build Canada Homes, which has an initial capitalization of $13 billion to accelerate the construction of affordable housing. This funding will be used for financing, providing public land, and supporting builders to use innovative construction methods like factory-built homes.
The Canada Mortgage and Housing Corporation (CMHC) projects that Canada needs to build 3.5 million additional housing units by 2030 to restore affordability nationwide. This figure is above and beyond what is already expected to be built, reflecting the significant scale of the housing supply gap, especially in larger metro-markets such as Ontario, British Columbia, Quebec and Alberta.
While no official breakdown exists, manufactured housing is expected to play a significant role in meeting Canada’s housing goals. Based on current market size and growth rates, manufactured homes could reasonably account for 10–15% of the 3.5 million homes needed … translating to 350,000 to 525,000 units by 2030. No doubt, this initiative would prove a MAJOR boon for the industry overall.
A mixed report: while year ‘round communities have experienced softened retail sales, seasonal resorts report good activity. And on the downside, infrastructure lead time/permit delays continue to negatively impact a faster resurgence.
Your team at Northpoint Canada appreciates the opportunity to support the RV and Manufactured Housing industries, and especially to partner with and serve each of our highly valued OEM and dealer customers. Please let us know how our team can assist in meeting your goals and providing customized solutions to help facilitate your business growth.
