Audiocast features Recreational Vehicle Dealers Association chairman
MISSISSAUGA, ON, July 31, 2012 /CNW Telbec/ - GE Capital, Commercial
Distribution Finance (CDF) has released its outlook for the Canadian
recreational vehicle (RV), motorsports and marine industries. In
general, each is performing well, with volume growth and relatively
healthy inventory turns, in spite of some regional variations.
CDF provides inventory financing, also known as floorplan financing,
that allows dealers to stock, market and sell a wide variety of
products from manufacturers, including those in the RV, motorsports and
marine industries. It's an important element of a successful
manufacturer-dealer business model.
As a result of its longstanding position as the leading financing
provider to Canadian manufacturers and distributors and their dealers,
CDF periodically provides market intelligence that may help companies
throughout the supply chains to manage their businesses.
The outlook for the Canadian RV industry is positive in light of solid
overall unit sales, respectable inventory turns and the continuing
strength of the national economy.
"There has been a positive increase in orders by Canadian RV dealers,"
said Howard Shiebler, president and CEO of CDF in Canada. "Another
encouraging and related health barometer for the industry is that the
national level of dealer inventory aged over one year is just 16%."
CDF has released an audiocast, titled "Performance of the RV Industry in
Canada," that features a discussion between CDF's Shiebler and Garth
Bromley, chairman of the Recreational Vehicle Dealers Association
(RVDA) of Canada. They discuss their optimistic outlook for the RV
industry and factors impacting the market, including the health of the
Canadian economy, regulatory issues and RV imports. To listen, visit
CDF's Facebook page here: https://www.facebook.com/GECDF.
In the motorsports industry, dealers have stocked conservatively and
aging overall is healthy at 12%. However, British Columbia, Alberta and
the Maritimes are still holding extra inventory from snow-related
products that didn't sell over the winter.
"Across the country, motorsports dealers have been very thoughtful in
their ordering patterns, probably due to concerns about consumer debt
levels and the overall economic environment," Shiebler said.
"Nevertheless, household debt levels are reasonable and our view of the
motorsports industry remains positive."
Wholesale shipments through the end of May increased by double digits
compared to the same period in 2011, driven largely by the West.
Reflecting these higher order levels, the overall inventory of aluminum
and fiberglass units has reached three-year highs. And, while
inventory-aging levels are starting to increase across the country,
they're still within an acceptable range.
"We know that dealers practice a delicate balancing act when it comes to
stocking levels," Shiebler said. "We work with manufacturers and their
dealer customers to help them make the most of Canada's short selling
season to ensure that they have enough credit capacity to have the
right product mix on hand. And of course we'll continue to share
performance benchmarks and strategies on budget management to help
dealers across the country be as productive as possible."
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided nearly $32 billion
in financing for more than 30,000 manufacturers, dealers and
distributors across the U.S. and Canada in 2011. Programs include
inventory and accounts receivable financing, asset-based lending,
private label financing, collateral management and related financial
products. Customers have access to exclusive online tools and analytics
to manage their accounts and inventory. For more information, visit http://www.gecdf.com/or follow company news via Twitter (@GEInventoryFin).
GE Capital offers consumers and businesses around the globe an array of
financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health and home, transportation and finance. Building,
powering, moving and curing the world. Not just imagining. Doing. GE
works. For more information, visit the company's website at www.ge.com.
SOURCE: GE Capital Canada
For further information:
GE Capital, Americas