Fears of leisure industry recession hit caravan parts suppliers
Businesses supplying caravan parts or mobile homes ae the latest to face credit insurance price hikes or having cover withdrawn as fears mount that the leisure industry could be the next sector to be hit by the recession, the Telegraph reported.
Ian Hollyhomes, credit insurance director at Coface, is quoted as saying: "We have started to withdraw cover. We are looking for minimum premium increases of 20% and significantly higher than that in specific areas. We are continuing to review our exposure. Obviously in the current environment, our individual discretionary spend is going to become tighter and tighter. "
Martin Holland, managing director of the credit and surety division at broker Heath Lambert, told the paper premiums are rising by between 15% to 30% for businesses that supply major parts such as windows and doors, fixtures and fittings, and even curtains to caravan and mobile homes.
"The number of new-builds is reducing rapidly because people are not spending vast amounts of money." He added that the number of new mobile homes built in 2007 stood at 23,000 but there are fears that this could fall in the next 12 months to 15,000.
