Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered remarks at the Recreation Vehicle Industry Association’s (RVIA) unveiling of its “RVs Move America Economic Impact Study”. The Deputy Secretary’s remarks come one-week after President Obama visited Elkhart, Indiana, the “RV Capital of the World.” During his remarks, Deputy Secretary Andrews underscored the resurgence of the RV industry, which generates almost $50 billion in economic output annually and employs nearly 300,000 Americans. The Department of Commerce’s recently released 2016 Top Markets report for recreational transportation found that the RV industry exported more than $1.2 billion in RVs in 2015, and forecasted markets where RV demand will grow by 2018. Deputy Secretary Andrews highlighted this along with the benefits of the Trans-Pacific Partnership (TPP) as a way to further strengthen the RV industry.
Remarks as Prepared for Delivery Thank you for that warm welcome, Frank. It is my pleasure to join you this morning.
As Frank mentioned, I used to work for Ford Motor Company. And as you all well know, Ford manufactures chassis for motorhomes and builds travel trailers as well as truck campers. I know from my time at Ford how vehicle manufacturing works, from the OEMs who assemble the vehicle parts to the lenders that finance the sales. So when it comes to RVIA’s new report, I see that there’s never been such a comprehensive a breakdown of the RV industry’s impact on the American economy. I congratulate all of you involved in this effort.
The numbers speak for themselves. Every day, nearly 300,000 Americans wake up and head to work in the RV industry. Every year, they earn over $15.8 billion in wages and benefits. And nationwide, the design, assembly, sale and maintenance of recreational vehicles generate almost $50 billion in economic output annually. These are not just impressive numbers. They are approaching record-highs.
That success was front and center last week when President Obama visited Elkhart, Indiana - the “RV Capital of the World.” The President highlighted how towns like Elkhart – and industries like yours - have come a long way since early 2009, when we were losing 800,000 jobs every month. I worked at Ford throughout that period. I know how tough it was. Unemployment surged to more than 19 percent. Sales plummeted and RV exports sunk to a low of 166,000 units.
Today, we are in a very different – and much stronger – place. The RV industry came roaring back. This year, it’s on track to ship nearly 400,000 units. In 2015, it exported more than $1.2 billion in RVs. So it should be no surprise to you that even before the release of this report, the RV industry’s potential for growth was already on the Department of Commerce’s radar.
For the first time, our Bureau of Economic Analysis is working with the Department of Interior to study outdoor recreation’s impact on our economy as a whole. This two-year pilot project will measure what Americans’ love for the great outdoors means for our economy – and for industries like yours.
And just two weeks ago, our International Trade Administration issued a new “Top Markets Report” on the recreational transportation sector – which includes RVs as well as boats, yachts, motorcycles, and other products.
Globalization has been hard on labor intensive industries. What ITA found is that this industry enjoys a positive trade balance. As consumers worldwide gain disposable income, demand for these products will continue to grow. In fact, ITA projects that exports could total $7 billion in 2018 – supporting 180,000 manufacturing jobs right here in the United States. I want to thank the authors of the Top Markets Report – John Vanderwolf and Charlie Rast.
As business leaders, I know you are looking for ways to build on your recent gains. So if there is any message I hope to leave with you today, it’s that increasing exports must be part of your strategy going forward. Today, 96 percent of the world’s consumers live beyond our borders. Significant future growth of the RV industry lies in your ability to reach them. That is why the Department of Commerce is working to help you compete around the world.
I know that RVIA has yet to decide whether to endorse the Trans-Pacific Partnership – the trade agreement recently reached by the United States with some of the world’s fastest growing economies. So I want to take a moment to tell you why TPP is essential to this industry’s future. American-made RVs are known as the best and most affordable models in the world. That gives you an upper hand over foreign manufacturers.
But we can further strengthen that hand by eliminating the trade barriers and tariffs designed to put you at a competitive disadvantage. That’s why on day one, this trade deal will drop tariffs on American-made RVs in nine of TPP’s eleven markets to zero. Meanwhile, Malaysia and Vietnam will phase out the tariffs they place on your products. Our Top Markets report shows that TPP nations like Canada, Australia, Mexico, and New Zealand are among the markets with the highest demand for the RVs that you build.
In today’s global economy, businesses must be able to reach consumers wherever they live. The Trans-Pacific Partnership is a major opportunity to advance that goal. But if we are going to see TPP become law, we need you to make the case for TPP to your customers, communities, and colleagues. We need you to share how TPP can help increase your sales and ultimately create more jobs here at home.
Just over 100 years ago, Pierce-Arrow’s Touring Landau, the first RV, rolled off an assembly line and debuted in New York City. Back then, the typical RV customer was wealthy. Yet with the rise of the American middle class and our national park system, your industry saw an opportunity to innovate and grow.
Today, RVs are sold to a broad cross section of Americans. But once again, the RV industry faces a changing economy. The economy is changing. There are millions of potential new customers out there. They live not only in America, but also around the world. Now is the time to build off the gains you’ve made here at home by expanding your reach overseas.
The Department of Commerce is your partner in that effort. We already have 185 foreign commercial service staff ready to serve you in all eleven TPP partner countries. This is in addition to the Commercial Service staff we have at over 80 embassies and consulates around the world. We want to see you compete – and succeed – in new markets abroad. The RV industry is one of America’s greatest economic success stories, and together, we can write the next chapter of success. Thank you.
Source: U.S. Department of Commerce
