THE biggest challenge facing the caravan industry is trying to entice young blood into the labour force, according to one caravan manufacturer.

Roadstar managing director Tony Bellamy has warned that the industry has an "ageing workforce" whose skills needed to be transferred to younger workers.

Mr Bellamy: warning

Speaking on ABC's Inside Business programme, he said: "I'm sure that most manufacturers like us would want to increase production, but of course to increase production you need more labour so that's why the lead times for most manufacturers have gone out."

Mr Bellamy, whose Melbourne-based company employs 150 staff, claimed that interest hikes benefited the caravan industry.

He explained: "Retirees get more interest on the funds invested, and it encourages them to spend more or to buy a caravan or to buy a more expensive caravan."

And he maintained that soaring fuel prices did not "significantly" affect caravan sales, if at all. Caravanners compensated by taking shorter trips or spending longer at their destinations, he said.

Mr Bellamy believed manufacturers would have to consolidate, adding: "I think there will be vertical integration in the future. I think it's an obvious step for the industry to take. The industry's going to grow enormously, retirees are going to double in the next 10 years, so there's going to be significant opportunities."

And on the question of Roadstar becoming a takeover target, he told the programme: "I think all businesses are for sale. It all depends on the price at the end of the day."