HARRISBURG RV industry continues joy ride

Low interest rates and an aging population are sending sales upward.
HARRISBURG (AP) -- Gas prices may be sky high and the economy lousy, but recreational-vehicle dealers are doing just fine, thank you.
Expecting one of their best years ever, dealers and manufacturers spread out nearly 1,150 RVs -- the term covers everything from pop-up tent campers to bus-sized motor homes -- at the industry's largest consumer show in the nation this week.
It also was the first show featuring 2004 models, some of which feature central air, satellite cable television, plasma-display TV sets and combination washer-dryers.
Gary Switzer and his wife, Sharon, have given the industry plenty of business over the years.
They have traded up to better motor homes four times since buying their first one six or seven years ago, to escape hotels that were jacking up prices on car-show enthusiasts like themselves.
"It's a usable investment," said Gary Switzer, who with his wife parked their 40-foot motor home at the show at the state Farm Show Complex in Harrisburg this week as they returned from a street rod show in Pigeon Forge, Tenn., to their home in Elbridge, N.Y. "It's not like walking out of a hotel room with just a receipt in your hand."
Looking ahead
The industry is thriving on favorable interest rates, an aging America and a volatile securities market that has encouraged people to invest their money elsewhere.
And the industry's prime buying market is swelling with baby boomers. Based on U.S. census figures, there are 84 million Americans between age 45 and 74 compared to 1990, when there were just under 64.5 million.
"Our demographics look real good for the next 10 years," said Mike Carpenter, a salesman for Media Camping Center, which has three RV lots in eastern Pennsylvania.
Based on industry figures through the end of July, manufacturer shipments to retailers were up 2.8 percent over last year, when 311,000 models were shipped, the industry's second-best year ever.
If that trend holds out through the end of the year, then the industry will just miss its best year, when it shipped 322,000 RVs in 1999.
Although some sales are upgrades and exchanges, dealers say that the second-hand market is strong since RVs retain their value better than automobiles. Also, so long as it includes a kitchen and bathroom, an RV can be financed over 20 years like a home and the interest is tax-deductible.
And the buying isn't expected to end soon. The University of Michigan's Institute for Social Research is projecting that manufacturers will ship 314,000 models to retailers next year.
Baby boomers "have lots of home equity and so the amount of money they could devote to an RV purchase is substantial," said Richard Curtin, who directs the institute. "The appeal of traveling in the country, visiting parks, family camping, have a great appeal among American households and it hasn't diminished."
What's available
At the RV show, visitors can see everything from $4,000 pop-up tent trailers to 40,000-pound motor homes that go for $470,000.
The strong sales are fueling explosive growth in the high-end models. They're getting longer -- 45 feet is the longest now, dealers say -- and cushier.
On some of the largest models, TV sets swing out from storage compartments beneath the cabin for viewing by people on lawn chairs outside. Sidewalls can be extended for more space inside. Outdoor awnings fold out or retract by remote control. Water tanks store enough water for four or five days.
Airstream makes a 35-foot motor home with a yacht-like patio on the roof complete with a propane grill and padded seating.