While each business’s circumstances are different, experts say a number of overarching factors are piling pressure on Australia’s caravan industry.<\/p>\n
Let’s take a closer look.<\/p>\n
Multiple companies collapse<\/p>\n
A number caravan companies have collapsed in recent years.<\/p>\n
Gold Coast’s Infinity Motorhomes went into liquidation in 2023, along with Victoria’s Highline Caravans in May last year.<\/p>\n
Melbourne-based Tango Caravans also went under in August 2024, owing more than $3.4 million, with liquidators reporting the company had no money to pay back its sizeable debts to customers, suppliers or the tax office.<\/p>\n
Meanwhile Gold Coast companies Boss Adventure and Hitch & Go collapsed in July this year after a dispute between shareholders sparked a court-ordered wind-up.<\/p>\n
Liquidators said they received claims totalling more than $3.5 million for Boss Adventure, which sold Chinese-made caravans.<\/p>\n
However, the business has continued to operate after its assets were purchased from the liquidator by JVA Corp.<\/p>\n
Finally, on Monday morning, Sunshine Coast-based Zone Manufacturing fell into voluntary administration, with the majority of its 250 workers made redundant<\/a>.<\/p>\n This latest closure comes as CreditorWatch data shows business closures in the motor vehicle and motor vehicle part manufacturing sector \u2014 which includes caravan manufacturing \u2014 peaked in October last year.<\/p>\n It has levelled off since then and now sits a little below the national average for all businesses.<\/p>\n ‘Increasingly significant’ costs<\/p>\n The Caravan Industry Association of Australia’s Luke Chippindale said “increasingly significant” manufacturing costs in Australia were a major factor behind the closures.<\/p>\n “We certainly haven’t been immune to the challenges we’ve seen, whether that be in the construction industry, trucking or agriculture,” he said.<\/p>\n “Certainly post-COVID, we’re still seeing supply chain challenges.”<\/p>\n Luke Chippindale says manufacturing costs are significant in Australia. (Supplied: Luke Chippindale)<\/p>\n He said caravans built in Australia were “extremely high quality” and largely bespoke, meaning the manufacturing price tag was “massive”.<\/p>\n Australia is also a high labour-cost country, according to Mr Chippindale, with the departure of vehicle manufacturing from local shores only making matters worse.<\/p>\n “It automatically makes it even more expensive because you don’t have the collaborative aspect,” he said.<\/p>\n ‘Large supply’ of caravans after pandemic<\/p>\n The caravan market increased “significantly” during the COVID pandemic’s border closures, with manufacturers scrambling to replenish stock as they struggled to source parts.<\/p>\n However, the industry has since returned to full scale with “large supply” at local dealerships, according to Campervan and Motorhome Club of Australia chief executive Richard Barwick.<\/p>\n “That larger supply and people not being able to sell those vehicles has put a bit of pressure on business,” he said.<\/p>\n Richard Barwick says the caravan market boomed during the pandemic. (Supplied: Richard Barwick)<\/p>\n Mr Barwick said Australia’s caravan manufacturing industry would need to consolidate if it wanted to continue offering high-quality products.<\/p>\n “Currently, in my opinion, there are too many [caravan companies],” he said.<\/p>\n A ‘glossy home on wheels’<\/p>\n The market for caravans broadened in the wake of the pandemic, with the family market now “neck-and-neck” with grey nomads, according to the caravan industry’s peak body.<\/p>\n<\/p>\n
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