Several factors contribute to these challenges. The COVID-19 pandemic initially led to a surge in demand for caravans as domestic travel became more popular. Manufacturers ramped up production to meet this demand. However, as international travel resumed and economic conditions shifted, the market experienced an oversupply, leading to decreased demand and financial strain on manufacturers.

Additionally, rising manufacturing costs in Australia, including labour and materials, have put pressure on profit margins. Supply chain disruptions have further exacerbated these issues, making it difficult for companies to maintain operations.

For consumers, these developments highlight the importance of conducting thorough research before purchasing a caravan. Ensuring that manufacturers are financially stable and have a track record of delivering quality products can help mitigate risks associated with such significant investments.