No matter what word we choose to describe it, I think most can agree that economic conditions have recently been trending down. Technically, ModVans is a Class B RV manufacturer and historically the RV industry gets hit hard when the economy slows. “Cash is king,” we are told. ModVans operates near cash flow breakeven and we have the option to hunker down and survive, but we think this is the wrong approach.
Unless you believe the country is headed into the next depression, even if the current conditions result in an official recession, historically, it is unlikely to last more than a year and “the best time to buy stocks is when the NBER announces the start of a recession.”
When it comes to growth in a down economy, ModVans’ small size can be an advantage. Above is a graph of all RVIA certified Class B RVs delivered from 2012 to 2021 (we estimate that actual Class B RV units are about double these figures because camper vans built by custom shops are typically not RVIA certified). As you can see, Class B RVs are experiencing explosive growth with 13k units delivered in 2021. To put this in perspective for ModVans: Even if the market experienced an overall decline like we saw in 2019, ModVans still has plenty of room to continue its rapid growth.
Class B RVs vs. Other RVs
For the last several years, Class B RVs have been the fastest growing RV market segment. For example, while overall RV units delivered grew by 39% in 2021, Class B RV deliveries grew by 85%. We believe that this is in large part because "the ‘typical RVer’ has also changed over the past two years, with the median age of a first-time RV buyer dropping to 33 years old in 2021 – down from 41 in 2020." The strong trend towards younger buyers is great for ModVans because younger buyers prioritize adventure, economy and flexibility of use. Compared with the typical truck + towable RV (90% of the RV market), ModVans vehicles save considerable fuel. Not having to own a separate vehicle for camping is another way our customers save money. Available long term RV financing helps take some of the sting out of higher interest rates.
ModVans Leads with the Best Designs and Technology
ModVans is crushing the competition in every area except production capacity. We offer 6 adventure ready vehicles models in 3 different sizes. We have the best designs with the biggest of everything and the most technology. Our competitors, large and small, worry about us. They come to our show exhibits, ask their questions, and leave with heads shaking, wondering how we did it and how they can catch up.
Now is the Perfect Time to Invest!
We want to build a factory capable of building 100 vehicles/month. Assuming the economy recovers within the next year, we need to start building now. If you you’ve been through recessions before, you know that it is impossible to predict when stocks will recover, but what you can be almost sure of is that the economy will recover and the US will be bigger and better than before.
ModVans is looking ahead to record production plus new and exciting R&D projects. Every economy has its ups and downs. With a solid, revenue generating business and some incredible R&D success, ModVans is positioned perfectly to double-down while others are shrinking, so join us as we prepare to enter warp speed when the economy comes roaring back!
In times past, only corporations, banks, and the wealthy could invest in startups like ModVans. Under the direction of Presidents Obama and Trump, the SEC created a new regulation, Regulation Crowdfunding, that allows everyone to invest in their favorite startups. Over 3,700 Family, friends, and fans just like you have invested in ModVans to help us increase production and make big progress on huge and exciting R&D projects.
Join us on our exciting ride and invest in ModVans today at https://wefunder.com/modvans!
That's all for now. Thanks for reading and for being a ModVans fan!