GIANT caravan manufacturer Jayco has increased production as Australia's economy continues to recover.

But the Victorian-based company, which builds nearly 50 percent of the nation's recreational vehicles, denies it is short of staff to cope with the growing demand.

Marketing director Andrew Ryan told Caravanning News: "We are not struggling for staff, we are currently at the levels that we want to be at."

Several caravanners contacted Caravanning News to say they were interested to hear that Jayco took part in the Centrelink Keep Australia Working jobs expo in Dandenong.

One wondered whether there were staffing problems at the company.

But Mr Ryan said: "As we are a large employer in Dandenong we felt that it was important to attend. We have been increasing production from January ... things have been going well for us."

The caravan building industry suffered a serious blow last year as orders for new caravans plummeted in the wake of superannuation woes and the global financial crisis, with at least two well known respected manufacturers and a major importer going belly-up.

Fleetwood Corporation, builders of the popular Coromal and Windsor range of caravans, cut caravan production by half in the face of falling orders.

But following the tough 2009, there is welcome news that order books are beginning to swell as the economy hauls itself from the doldrums.

Some people are now having to wait months for delivery of their new caravans while others have decided they cannot wait and are scouring sales yards for good second hand models.

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