Caravan manufacturers fear job losses amid influx of ‘unregulated’ imports
Local caravan manufacturers fear significant job losses amid an influx of cheaper and “unregulated” imports entering the market as a consequence of US tariffs.
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An influx of cheaper imports and overseas dumping could wreak havoc on Victoria’s caravan industry, with local manufacturers bracing for “casualties” akin to the nation’s car industry.
It comes amid fears US tariffs whacked on countries like China — a dominant player in caravan manufacturing — could create an overflow of imports “that don’t meet the same regulations” in the Australian market, putting local manufacturing jobs at risk.
About 93 per cent of Australia’s caravans and RVs are built in Victoria, with manufacturers employing nearly 10,000 people statewide.
Caravan Industry Victoria chief executive Daniel Sahlberg said manufacturers were “fearful” of job losses amid a predicted overseas onslaught.
“Our guys are scared of what could happen to them and their jobs,” he said.
“The fear now is with tariffs put on by the US, would countries like China look here to dump (caravans) here.
“We have concerns already on some products that the gas and electrical installations in particular are not being regulated here.
“Anything that comes from overseas doesn’t need to be certified, with the reason being that the regulations here are tied to caravans manufactured in Australia.”
Victoria’s caravan sector contributed about $3.5bn to the state’s economy last year.
There are 211,000 registered caravans in Victoria, with postcodes which cover areas like Ballarat, Bendigo, Cranbourne and Geelong having the most.
Jayco chief executive Gerry Ryan — whose company turns 50 this year and manufactures about 9000 units a year — predicted the industry would face “casualties” in coming years.
“It’s going to be tough,” he said.
“What the biggest issue is, some of these products are not compliant ... I don't mind competing on a level playing but not when we have to comply and other manufacturers don’t.”
Likewise JB Group chief executive Chris Polites — whose father Geoff was the boss of Ford Australia — said local manufacturers faced greater challenges around compliance and regulatory costs.
“We believe we build a better van and stand behind our quality … sometimes we feel like we’re let down and we don’t get a lot of help protecting or celebrating that,” he said.
“I came out of automotive manufacturing — that’s gone, we lost that. There are lots of former suppliers now working in caravans because there are none left.
“We could have the same knock on that we saw with cars and we all should be aware of that and do something to protect it.”
Mr Polites said his business model had shifted as a result, moving towards offering more “premium” caravans and RVs.
“Our business strategy has changed since we’ve had to deal with imports,” he said.
“We no longer play in those entry levels, lower margins and more accessible categories. We push our offerings as more premium and capable because we don’t think the imports compete with us in that area.”
Adding to the industry’s challenges was a dip in sales after a boom during the pandemic, according to Mr Sahlberg.
“Our intel of the industry tells us that sales are down closer to 30 or 40 per cent,” he said.
“Victoria gets hit the hardest, sales are down everywhere but Victoria feels it the most as 93 per cent of caravans are made here.”
Last year caravan makers Highline and Tango Caravans collapsed, with both owing millions to creditors.
In Tango’s case more than 30 customers lost tens of thousands of dollars in paid deposits after the company entered liquidation.
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