THE once lowly caravan could turn into a financial bonanza for
investors, it has been claimed.
Financial expert Nick Griffin (pictured) is urging speculators to think outside the
box and turn their attention to the caravan market to snare some healthy
returns.
Mr Griffin, who is chief investment officer and founding partner of
Melbourne-based independent global
investment managers Munro Partners, points to the "strong
structural growth" in the caravan market, which is booming thanks to
people's desire for the outdoors and to be more active and healthy.
Last year was one of the most successful for Australia's $1.8 billion
recreational vehicle manufacturing industry, with one RV rolling off the
production line every five minutes.
Writing for the online InvestorDaily, he said investors were now
looking more closely at outdoor equipment, and in particular caravans.
Yes, caravans!
"Caravans have traditionally been seen as an old-fashioned holiday option
for the budget-conscious," he explained.
"They reached peak popularity in the 1950s and 1960s, but have experienced
a renaissance in recent years thanks to 'grey nomads'.
"However, their popularity is now growing even further on the back of a
younger demographic."
Mr Griffin said that during the past five years, the average age of a
caravan buyer had fallen from 55 to 48, and the caravan industry had moved
to cater for them by producing smaller and cheaper towable units which
made camping more of a 'glamping’ experience'.
"The outcome of this is the strong structural growth in the caravan
market, which has been happening for the past five years and which shows
no sign of waning," he said.
As a sector, the caravan market was currently 140 percent up on its
previous peak.
"To put this in perspective, no other consumer durable in the market today
has beaten its previous peak," Mr Griffin added.
