b'of the Iowa farmer, added Gage. Now its thehipper winter visitors and theyre putting innew amenities like larger swimming pools andpickleball courts, just to mention a few.One of most noteworthy twists in the parkmodel arena right now, said Boor and Gage,has to do with the hospitality side of thebusiness, through which resorts and camp-grounds often purchase multiple units for con-sumers interested in short-term rentals versusretail customers buying one at a time for theirown long-term use at a park or on private land.You know, this is about our 20th year at theARVC Conference, Gage observed, and justCavco Industries Inc. has been focused on keeping up based on what you have here as far as manu-with demand for short-term rental units as economic facturers are concerned, there are more andfactors and a continued effort to meet customer expec- more players (park model RV builders) in it.tations has helped boost the companys bottom line. And I think as we educate the marketplace,not only in the campgrounds but in the hospi-BY SHERMAN GOLDENBERG tality end of things, there will be enough busi-ness for the few that are truly committed toCavcos Boor, Gage Have Positive Outlooks for 2020doing it right.Having said that, snowbird communities ofBased on Publics Demand for Short-Term Rentals up to 2,000 spaces, some handling their ownpark model RV sales, are a significant factor intodays marketas are an array of other fa-New Cavco Industries Inc. President and Cavcos park model sales and marketing, at president, CFO and treasurer. I mean, I dont cilities catering to winter visitors on either aCEO Bill Boorisnt a newcomer to the RV park the Knoxville Convention Center and offering know what else you could want except low nightly or weekly basis. and campground sector, having served several Woodalls Campground Management (WCM) unemployment, high consumer confidenceyears on Cavcos board of directors and having readers a pretty upbeat outlook for Cavco and and a growing economy, but even more impor-previously played a strategic role with a former its primary market sectorsmanufactured tant are the demographics around people thatCavco parent firm called Centex Homes.housing (MH) and park model RVs. buy manufactured housing.That, at least in part, is a natural outgrowth The same goes for the park model RV sideof the companys latest second quarter financial of the business, where U.S. retail sales werereport released Oct. 29, in which Cavco posted up about 4.6% at press time, according to Sta-an 11.3% increase in quarterly revenue to $268.7 tistical Surveys Inc.s(SSI) National RV Salesmillionwhileincomefromoperationsgrew Manager Scott Stropkai. He said the actual15.5% to $22.4 million from 2018s second quarter.growth percentage is likely higher than thatThose results included the August acquisi- because up to 50% of new park models are Cavco is noticing more park owners buyingtion of Destiny Homesin Moultrie, Ga. never registered. multiple rental units. Boor, for his part, said the companys fiscal Theyre (park model RV sales numbers) not2020secondquarterreportcontinuesto as strong as they were 10, 12 years ago, said But where were talking about it is indemonstratetheunderlyingstrengthof Gage. But I think gradually, were gaining campgrounds, RV parks in recreational areasBill Boor and Tim Gage Cavcos business in both product segments, somewhatespecially in the snowbird areas up in the mountains, near the ocean and in thekeeping in mind that fully 95% of the com- like Florida, Arizona and Southern California, national parkseven in places like Wiscon-Still, hes not that well known among the panys revenues are derived from housing. where some of the larger REITs (real estate in- sin and Minnesota, where people want to getrank-and-file campground operators, a record Yes, the big picture in manufactured hous- vestment trusts) are building new parks. And away from the city and have their place up innumber of whom attended the National Asso- ing, due to a combination of economic factors as long as they continue that, we could see the the mountains, said Gage.ciation of RV Parks and Campgrounds(ARVC) and demographics, is looking really good, numbers from the past gradually rising. Devel- And here again, this emerging shift towardOutdoorHospitalityConferenceandExpo said Boor, who succeeded Daniel Urness, opers are also updating older parks. They have upscale glamping parks, an amorphous term(OHCE) in early November in Knoxville, Tenn. who had served as the companys president to accommodate the winter visitor of today. thats been around for 20 years but still lacksBut there he was, working Cavcos exhibit and acting CEO since November 2018, before Theyre not the same types of winter visi- definitional clarity in some circles, is playing awithTimGage,nationalvicepresidentof resuming his former role as executive vice tor that we had in the 80s, which were more central roleone that should serve the parkmodel RV sector well over the long haul, in theopinions of Boor and Gage.Ask people today what the word glamp-ing means, and some people have never evenheard of it, noted Gage. But I think, as the in-dustry grows, as the media promotes glampingand weekend rentals, the term will grow. Noteverybody wants to go out and put the moneyout there and purchase an RV. They want tojust get away for the weekend, load up the kidsand go get a cabin or a cottage on the water orin the mountains and have fun, enjoy a camp-fire and the outdoors, then pack it back up andnot have to worry about all the equipment be-fore going back home. Its (glamping) been hap-pening for a long time, but its gotten so muchmore popular over the last five to six years.Meanwhile, cabinsincluding parkmodel RVs as opposed to tents, yurts or evenRVsseem to play a central role in thisemergent glamping trend, noted Boor, quot-ing Kampgrounds of America Inc.s recentglamping study.Yeah, I was actually surprised by that,Boor told WCM. But thats how people outthere are defining it. And Im trying to form myown understanding of it. I dont know when youstop calling it camping and when you startcalling it glamping, but to me it doesnt matter.We want to be supporting the hospitality indus-try for various purposes for our products. Youknow, I think well have everything from rela-tively inexpensive cabins up to units that Ithink people would pay park owners quite a biton a nightly basis in order to stay in.WCM16 -January 2020Woodalls Campground Management'