1995 Market place still tough, factory chief reports to the AGM
The last twelve months have seen a continuation of the period of uncertainty which has affected the industry over the past three years. Customers have exercised great care and consideration in making their choice and, with some evidence of over-production in certain areas, there has been a good deal of that choice to be had around the country.
Despite political optimism, there remains much caution and some pessimism about the economic situation. Recent surveys show, that a large percentage of people believe, that their earnings will not improve over the next year and a substantial number fear for their overall job prospects. Translate these two factors into the effect that they have in buying intentions, you will readily understand the rash of special offers and heavy discounts in the shops and showrooms to encourage us to part with our money.
Heavy stocks of second hand and new caravans on dealer premises bear testament to a marked reluctance of customers to change their caravan or indeed enter into a first time purchase; the traditional middle ground of caravan purchasers have seen a poor return from their savings and investments following a period of low interest rates and first timers and first time changers are too uncertain about their own future to enter into a further financial commitment. Add to all of this. There has hardly been the weather to encourage people to think ahead and the recent improvement has been preceded by six months of cold winds and unremitting dampness.
You will appreciate, therefore, that this has been a difficult year for the industry. Overall volume of production is well down from 1993 and all manufacturers and dealers have been compelled to accept a marked reduction in their profits. Whilst undeniably Fleetwood has been affected by these factors, we still managed to perform well against the competition.
Whereas sales from dealer premises have been patchy, autumn and spring promotions have produced good results. The Caravan Show at Earls Court again suffered from the proximity of Christmas but we were very pleased with the sales there and the regional shows at Manchester and Birmingham produced a very high performance. Clearly the next few months are going to be critical but we are watching the situation carefully and, as a company, we are better equipped to take important decisions quicker and more efficiently than our competitors, to ensure the continuing health of Fleetwood as we go forwards into the new 1996 model year.
Richard Allen – Commercial Manager
