T he floor to MIKE LANCIOTTI

of control panels have grown in size so they are clear and concise. We are finding that consumers are willing to pay for electronics that are comfortable for them.

Aboutcamp BtoB: Now more than ever, RV manufacturers are using lightweight materials in their units to better manage weight and labour costs. Can you provide some examples of how the REV Recreation Group has been making similar efforts?

Mike Lanciotti: We now utilize a lot of one-piece synthetic materials as well as lighter aluminum whereas we used steel before. Generally speaking, for all of our brands, we do a lot of weight analysis where we determine the weight of each unit before it leaves the plant.

By this, I mean we pull all four wheels of the unit and weigh it on a scale to get the exact weight from the four corners, ensuring it has proper balance before delivery. We always make sure that they are under the regulated weight since we know the units will be weighed at some point again once it takes delivery.

An example of some of REV Recreation Group’s lightweight units includes Lance’s ultra-light and eco-friendly travel trailer, which has earned the RVDA’s DSI Quality Circle Award, as well as the 650 truck camper. It’s only a little more than 2,000 pounds so it isn’t very heavy and can easily fit a variety of truck beds.

Aboutcamp BtoB: How do you manage weight and what materials are used for REV Recreation Group’s larger models in divisions like Amer- ican Coach, Fleetwood RV and Renegade RV?

Mike Lanciotti: What a lot of people don’t realize is there is a lot of weight under the floor and in the basement of these larger units. A lot of steel is used. For example, if 16-gauge steel can be used and still achieve optimal strength to weight savings rather than using heavier 18- or 20-gauge steel, we make the spec change. Determining where the stress is on the product is also very important. We do this with AutoCad and SolidWorks. These systems indicate where there’s not much stress/weight on the unit and in turn, they help us determine where to use lighter gauge steel to reduce weight.

We take weight out of basements all the time and even look at components like storage compartment doors. We don’t want them so heavy that you can’t close them and we don’t want them too light so they won’t latch or even fly open on the highway. There’s always a fine line when determining weight.

Aboutcamp BtoB: The RV industry experienced supply chain issues during the pandemic and production was limited. Are the REV Recreation Group and your dealers currently right-sizing to previous levels of inventory and what is your forecast on this for 2023?

Mike Lanciotti: We are still not anywhere near pre-COVID-19 levels. I think a good backlog for motorized products is six or seven months. Right now, we have a backlog of about one year. Will our dealer inventory backlog get back to pre-COVID-19 levels? I would have to say it could, but it might take an increase in distribution and better channels to get back to those levels.

Aboutcamp BtoB: What channels would you consider for that to happen and can you provide some further details on the current status of the supply chain?

Mike Lanciotti: The REV Recreation Group is fortunate with its motorized product to have registration like a car. We know where each unit was sold and know what Business Trade Area (BTA) has the most volume, who sells the most product, and where the product is present (and not present). We then see how we compare with everybody else. Just as an example, when we analyze these BTAs we think, if Midwest class Bs are not in a certain region and a competitor is doing well, we consider more channel management.

Right now, we are in a position where we can move where the population moves. Florida, Texas, California and the whole southeast all have large RV distribution. There are pockets in the U.S. where your brands need to be and with the moving population, you need to have a presence there as well.

However, during COVID-19, our dealers had very low inventory and we felt we were smart enough to keep it low so that the demand would be high. However, the supply chain was the governor of our ability to operate at capacity versus the way other manufacturers were able to.

The towable market did well during the pandemic because it could. Trailers don’t require an engine with a chip and the supply chain wasn’t holding up production as much. But this also meant we could only run production at a certain level, which happened to be a little less than the market wanted so the dealer inventory was depleted. Most of our dealers during that time were on allocation. So, we worked hard to make sure our costs weren’t too high, stayed competitive, and the higher cost of materials didn’t result in overall price increases for the consumer.

Currently, since the towable industry has slowed down significantly, our suppliers can redirect common parts to us. Our motorized brands are where their action is so we are getting more of their attention than we did in the past. To provide an update, when it comes to pure units, approximately 80 percent of all the units in the U.S. are towables and about 20 percent are motorized. When that 80 percent starts to fall off, our motorized division becomes more important to the suppliers. That’s where we are today.

Aboutcamp BtoB: Engine suppliers also experienced challenges with microchip production through COVID-19. How has this impacted REV Recreation Group’s motorized brands and what solutions have you devised to offset these challenges?

Mike Lanciotti: Microchips were an issue everywhere. Now, Mercedes-Benz, Freightliner and some other companies are on track and getting us what we need. They are great suppliers to us and continue to make their product safer and better every year.

Aboutcamp BtoB: Current inflation, rising fuel prices and interest rates are challenging for everyone right now. How is REV Recreation Group man- aging this economic climate?

Mike Lanciotti: We were at the Florida RV Supershow in Tampa this past January and we had some wonderful dealer partners that represented our product and each of our manufacturers brought an entourage of units for support. It was very well attended, and we sold a lot of units. It’s interesting, most people weren’t talking about interest rates or fuel prices. It seemed to be the last thing on their mind. People were happy that they saw some units that they could buy at the moment and not wait a year.

Aboutcamp BtoB: Are you providing any new incentives for your dealer base to carry products given the current economy?

Mike Lanciotti: We are not offering anything that is unique to the REV Recreation Group. There are always programs for volume rebates near the end of the year. Sometimes, we trade future orders for current orders, but we truly have a partnership with our dealers and try to help them move products from the previous model year to free up their working capital. That’s not unique to us.

Aboutcamp BtoB: We are witnessing new phenomena. Some motorhome manufacturers are buying their suppliers. In Europe, a large group has also bought some dealerships, creating a proprietary distribution network. What is your opinion on this?

Mike Lanciotti: This is not something REV Recreation Group would be interested in doing. Some of our competitors have bought suppliers and we were hoping they don’t try to control their output or where they send their products.

I am happy to say the ownership change of the supplier did not alter the way the supplier managed their customers. Even though some suppliers we do business with are owned by our competitors, they treat us like everyone else. I know our peers in the industry hold their suppliers accountable to a certain profitability and I am sure they are comfortable getting that profit from one of their competitors just as much as anyone else.

Aboutcamp BtoB: Looking ahead, what can dealers and suppliers expect from REV Recreation Group through 2023 and beyond?

Mike Lanciotti: They can expect a lot from us. Strategy changes all the time and we get different challenges to certain degrees of difficulty every year. I think we are moving into a time now where there may be a reduction of floorplans, models, and choices so we can lower the cost of production a little and get the prices down to levels that are even more appealing to buyers, but all the while providing a nice variety of options.

I can see working on platforming a little more, so the construction of units are the same but what you build upon them are different, and cutting down on the supply chain by reducing SKUs. It will just make it easier to manufacture and the result is a higher-quality product. I can’t help but think that will be an industry trend into next year.