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Outdoor recreation businesses experiencing increased demand
The global pandemic may have wreaked havoc on the international and domestic travel industry, but the outdoor recreation market is seeing demand through the roof. That includes businesses that sell both big- and smaller-ticket items, including many segments of the recreational vehicle market, as well as watercraft and camping supplies. And if you’re a business leader in the outdoor recreation sector, no doubt this market shift points to opportunities (or the need) to remodel, expand or build new to serve customers better and capture new prospects.
The decision to take on a commercial construction project may depend on which sectors of the outdoor recreation economy are growing fastest and are projected to grow in the near term and over the long term. Here’s what analysts see in the outdoor recreation market and how that may affect your business growth potential.
Moving activities outside propels recreation market
Throughout the COVID-19 crisis, health experts consistently recommended physical distancing as a pandemic-mitigation tactic, pushing the public to embrace outdoor recreation instead of once-popular indoor activities. This has directly affected recreational vehicle sales in the U.S., including motorhomes, travel trailers, fifth-wheel trailers, folding camp trailers and truck campers.
One report monitoring the recreational vehicle market in North America predicts it will grow by $9.9 billion by 2023. The RV sector, which analysts valued at $31 billion in 2020, is projected to grow to $48 billion by 2026. Experts say the expected increase is due in part to the uptick in demand for road trips as relief from quarantine and other activity limits.
They also say the millennial market will drive growth in rental services, while post-lockdown sales to first-time buyers are expected to rise.
Likewise, the number of recreational parks and campgrounds in the U.S. should continue to grow, with nearly 15,000 public and privately owned campgrounds in the nation.
Some research is mixed, and analysts urge market vendors to focus on the fastest-growing segments for growth opportunities while holding the line on sectors that are growing more slowly.
Initially, a double-digit decline in RV shipments in the fall of 2019 was expected to signal a possible recession because RVs are considered a luxury item. That trend, however, reversed course, and the market is rebounding on the increased interest in pandemic-safe recreational opportunities such as camping.
Recreational vehicles offer an alternative that can provide private bathroom facilities, a kitchen, space for socializing safely, and sleeping accommodations — all with the peace of mind that comes from avoiding crowds. Particularly luxurious units may also offer lightning-fast Wi-Fi, satellite TV and other tech advances, which may appeal to the newly minted remote workforce.
One industry study showed that over half of the travelers expecting to take an RV trip as of mid-2020 attributed their interest in it to pandemic concerns.
And 20% of survey respondents say they are more interested in RV travel in the wake of the pandemic than camping by tent, cruising, or staying in a hotel or rental.
Other outdoor recreation also sees increased interest
Other sectors of the recreation industry are seeing similar spikes in interest, including outdoor recreation retail stores that sell bikes, boats, and other watercraft and camping gear.
Retailers saw sales increase upwards of 70% for several sectors in 2020, and a boost in sales is expected this summer as well, as the vaccination effort continues and countries around the world fight to control the spread of COVID-19.
As the pandemic stretches on and CDC guidelines continue to encourage lower-risk activities, the domestic outdoor recreation market is likely to continue to enjoy robust growth in the coming years. No matter which part of the outdoor recreation retail market your business serves, now is the time to reimagine your business and capture this emerging, growing target market.
With the design-build model of construction, commercial design and construction experts work as one team, so you can be sure the vision for your outdoor recreation retail and/or service business is executed as you intend. This construction model can also help you stay on budget and on schedule by identifying cost-saving measures and lead times for required materials and equipment — a key consideration in a time when the pandemic has impacted supply chains.
Building for the future of the recreational market
If your business is riding the wave of demand for recreational vehicles, boats, bicycles and camping supplies, it may be time to expand or remodel to serve customers better.
Whether you want to build new or renovate and remodel, the design-build construction model is your secret to success. Contact us to learn how we can position you for continued, robust demand in the recreational market.
