Aboutcamp BtoB − Could you explain the differences between the Caravan Industry Association of Australia and the state caravan bodies? How are relationships and synergies between the state and national levels managed?
Stuart Lamont − The Caravan Industry Association of Australia operates all activities at a national level, whereas each of our state caravan and camping associations deals with issues at a regional level. We are a federated structure from an association perspective, so we only have 10 members, each of which is a state association. We tackle industry problems together. But if there is an issue that needs to be handled at a national level, such as gas compliance, for example, those standards are developed at a national level, but rolled out, funded and regulated at a state level. We manage the construction of those standards, whereas the implementation is done at a local level. When it comes to our shows, they are run by the relevant state caravan association, and we, as the national body, have a national database of consumers that we then put national marketing to promote those shows. We also undertake national research on behalf of the industry. We provide that to the state associations, and they distribute it to individual businesses. We have a framework from a compliance perspective, our RVMAP, which deals with national Australian design rules and Australian standards. And then we work closely with our state caravaning associations, which allow us to go in and inspect products at industry-run shows. It’s a highly collaborative way of working, and I believe we are best-in-class when it comes to a federated structure.

Aboutcamp BtoB − What were the key figures of the Australian caravaning industry 10 years ago, and what are they today? Could you explain how these changes reflect the evolution of consumer preferences or of the industry itself?
Stuart Lamont − If you go back to the period just before COVID, we had around 30,000 units entering the market at any given time. During COVID, demand exploded like everywhere else in the world, and we had a glorious period of about 60,000 units being pushed into the marketplace for about the last four years. If we look at where we are now, there’s been a small softening. But this year, we’re still projected to do well over 50,000. So, you’re nearly 50 per cent above where we were in pre-COVID times, and that’s unusual around the world. I think part of the reason for that is Australians love the great outdoors. They love to travel, but what they’ve done is they’ve substituted their international travel with the ability to stay at home. And there’s no better way to travel Australia than in an RV or camper product. At the same time, COVID also changed the dynamics of supply. Because we were in lockdown for so long, the Chinese market was able to continue to produce, and so they were able to supply the market when the local market was unable to do so. Some of that growth that was experienced from seven or eight years ago has been taken up by the Chinese product, some best-in-class, some not so good. This is not that different from the local market. There are exceptional manufacturers, and there are some individuals who aren’t as good for the industry as they could be, and we’re obviously trying to clean those up.

Aboutcamp BtoB − Our last interview with you was in 2022, and we’re going to touch on some of the same topics to see what has changed three years later. Firstly, you spoke about the crucial role of Future Leaders in the industry and their ideas about diversity, sustainability, technology, and regional tourism. How is that campaign progressing?
Stuart Lamont − What we are very keen to do is continue to promote the next decision makers in the industry. Our desire for future leaders to be integrated into what we do and hopefully what the state associations do in terms of committees, working groups, activities at conferences and hopefully on their boards, is a major focus for us. They challenge us in decision-making processes. They have a different way of solving problems or thinking about problems. That youthful enthusiasm encourages and inspires our board to be better and to always challenge existing ideas. Younger generations may not have had the same biases or barriers or so forth in terms of attacking industry problems. We have built on the shoulders of great people, but if you do the same thing over and over again in a changing environment, you get the same result, and the market has moved so quickly. We’re a consumer-led industry, a disposable product in terms of value, with high emotional attachment. Some of those new consumers think differently than some of us older folks who have been in the industry for a while. You have to have diversity of thought, and that’s what the future leaders do.

Aboutcamp BtoB − You also talked about how essential consumer shows are for the industry. How do you see shows needing to reinvent themselves over the next decade to remain attractive, particularly to new, digital generations?
Stuart Lamont − In a digital age, it’s very useful to be able to research, but if you’re going to spend many tens or hundreds of thousands of dollars or euros on a product, you still want to touch and feel it. A show will always be a great way to validate a buying decision. It also gives a great opportunity to showcase new technology and gives opportunities for people who are new to the market to begin the research process. And, as we’ve found at Caravan Salon Düsseldorf this year, the strength of numbers coming through the gate is as strong as ever, which indicates that there’s incredible demand for our industry product. The challenge is how you extract money out of their pocket in a changing environment. We must think differently and use consumer shows as a way of interacting with our consumers differently.

Aboutcamp BtoB − We spoke about raw material costs in our last interview in 2022, which were rising sharply, eroding the margins for manufacturers. Has that situation stabilised, and what strategies do you see to make the supply chain more resilient?
Stuart Lamont − I think all markets and industries are under pressure. In a rapidly globalised environment, there will always be the attraction to go to a lower cost model when things get tighter. There’s pressure through the supply chain in relation to rising costs, so that has to be passed on to someone. At the end of the day, the consumer wants a good quality product that they can rely on, and with so many subcomponents in a caravan or RV, there is a danger of chasing the ‘here and now’ as opposed to looking at the lifetime value of the product. Putting an extra $20 on parts or a subcomponent to get a better quality now will actually save you in the long run in relation to a buyback, a warranty claim, or a recall. I think there needs to be a change of thinking, which is a more long-term view. Our consumers are driven by value. I’m not going to say the price of an RV is irrelevant, but if you produce a good quality product with the features that they want at a comparative price, people will pay it.

Aboutcamp BtoB − Do you have a similar stock problem in Australia as to what we are currently experiencing in Europe?
Stuart Lamont − Following COVID, we probably had a longer rainbow period than other parts of the world. And part of that was because we were filling demand for a longer period than the rest of the world. And then, because our dealers didn’t have stock, there was also a longer period of restocking. The retailers will always tell you they’re overstocked. The manufacturers will always say that they’ve still got room and capacity for more. Certainly, the lead times have come back considerably, so the dynamics in relation to how you deal with a consumer as opposed to a dealer stock scenario, those mechanics are changing.

Aboutcamp BtoB − Have recent geopolitical events, such as tariff introductions by the Trump Administration in the United States, affected Australia in our sector?
Stuart Lamont − Of course, if Trump imposes another tariff on a sub-component, that has to be passed on somewhere – a lot of suppliers are constantly rearranging their pricing schedules based on what the current understanding of Trump’s tariffs is. I would also say that broader geopolitical factors around the world, such as in Gaza and Ukraine, are actually a bonus for us from a domestic perspective, because it means Australians are less inclined to travel overseas. Australia is seen as a safe haven, and RVs are the best way to explore it.

Aboutcamp BtoB − In the last interview, you stressed the importance of speaking with one voice to address regulatory changes. What are the most urgent priorities on that front today, and how are they managed between your organisation and the state?
Stuart Lamont − We have a very good scenario whereby if there is to be a regulatory change that occurs at a national level, we consult widely with our state caravaning associations. They then go more broadly out to the industry. What we’re doing is a very succinct and strong industry position when it comes to regulatory change. Our message to government and our message to industry is consistent up and down the line, and that’s the advantage of the structure that we have – there is really strong collaboration and consultation through all processes. When it comes to representing a change at a national level for a regulatory or legislative scenario, we don’t have four or five different submissions going in, just slightly asking a different thing. It goes with strength, with one voice.

Aboutcamp BtoB − In Europe, consolidation is affecting every part of our sector: RV manufacturers, mobile home producers, component suppliers, campsites, and dealerships. What is the situation in Australia?
Stuart Lamont − In the campgrounds and campsites, we’ve had a high level of consolidation. We would actually like to see consolidation in other sectors. There are probably far too many manufacturers, and there are not enough repairers and arguably not enough dealers. There are close to 300 manufacturers; you don’t want to say it, but if there were more like 100, the volumes would be better, there would be better outcomes for consumers, and better profitability through the chain. It’s something that needs to happen organically, and we don’t want businesses failing and consumers having bad experiences. I would say what we need is rationalisation as opposed to consolidation, however that happens, so long as the consumer doesn’t get hurt in the process.

Aboutcamp BtoB − If you can imagine the Australian caravan sector in 2035, what do you think would be the three fundamental pillars?
Stuart Lamont − I think that Australian businesses design and build the most rugged and toughest products in the marketplace. And the reason I say that is that Australian consumers use the product like no other RV user does in the rest of the world. What we have to do to continue to be relevant in 2035 is to continue with really good R&D, continue to test that design mentality, and make sure that we adopt technology. The second point is that we must not lose sight of who the customer is. The customer could be through the supply chain – from a manufacturer to a supplier, a dealer to a manufacturer – but ultimately, the customer is in control of the transaction. We need to be more mature when it comes to our thinking – don’t treat this as a transaction, treat this as a relationship. Lastly, we have an obligation to the safety of the people who use our product. We want them to get home safely at the end of their RV trip. We want them to be talking about the magnificent memories that they’ve created. Sometimes the chase for the dollar today – by cutting corners or having low-cost, low-quality products – is not in the best interests of the consumers who use our products.