The national level of inventory over one year old has decreased to about 12.5 percent from last year’s already healthy rate of 15.5 percent.
“We know that weather conditions can have an extraordinary impact on dealers so we’re working with those who’ve been impacted by the severe flooding in southern Alberta,” Shiebler said. “We want to do our part to foster a strong Canadian motorsports industry.”
The RV industry’s nine percent increase in wholesale volume shows that dealers are effectively selling through any product they had remaining in inventory from 2012. It also reflects continued strong consumer demand.
So far this year, these growth figures are being driven by the Western provinces, while Ontario and Quebec remain slower markets.
“The country’s inventory aging past the one-year mark has stayed flat year-over-year but we view it as an acceptable level,” noted Shiebler. “Of course, we actively monitor the Canadian market and work collaboratively with our customers to mitigate situations where the levels become a concern.”
About this analysis
Inventory aging represents the number of days it takes for a dealer to sell a product that it’s holding as inventory. Limiting older inventory ensures that dealers have capacity to take advantage of new product launches and promotions. It’s important for dealers to have an adequate mix of products on hand for retail buyers so some level of aging is expected; however, excessive aging will tend to increase the cost of carrying inventory which, in turn, may mean lower profit margins for dealers.
CDF provides inventory financing, also known as floorplan financing, which allows dealers to stock, market and sell a wide variety of products from manufacturers, including those in the marine, motorsports and RV industries. It’s an important element of a successful manufacturer-dealer business model; manufacturers benefit from enhanced product flow and increased sales opportunities, while dealers obtain improved credit availability and terms.