Motorcycle and Bicycle Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 400 manufacturers in the US produce motorcycles, bicycles, and scooters, as well as related parts, components, accessories, and apparel. Various models of cycles, which include on-road and off-road cycles, offer different types of rides. Firms may specialize in a particular type of bike. Channels of distribution include wholesalers, distributors, dealers, and retailers. Firms may also sell products directly to riders through websites.
Competition from Foreign Manufacturers
Foreign manufacturers dominate the global and domestic motorcycle and bicycle market, due to lower material and labor costs.
Competition from Used Cycles
Demand for new motorcycles typically drops when the supply of used cycles rises or when the price of used cycles decreases.
Industry size & Structure
The average US motorcycle or bicycle manufacturer operates out of a single location, employs less than 10 workers, and generates about $4.7 million annually.
- The motorcycle and bicycle manufacturing industry consists of about 400 firms that employ over 9,000 workers and generate about $5.9 billion annually.
- The industry is highly concentrated; the top four companies account for almost 85% of industry revenue.
- Large motorcycle manufacturers include Harley Davidson, Indian (Polaris), Honda, and Kawasaki. The largest bicycle manufacturers started as US companies but were eventually acquired by foreign firms, such as Giant (Taiwan), United Wheels (Hong Kong), and Pon Holdings (The Netherlands). Most US firms are low-volume producers that specialize in niche products for hard-core bikers. Large domestic firms include Trek and BCA.
- The median age of a motorcyclist is 50 years old, according to the Motorcycle Industry Council. Over 80% of riders are male. The median household income of motorcyclists is $62,500.
Industry Forecast
Motorcycle and Bicycle Manufacturers Industry Growth
Recent Developments
Nov 13, 2024 - Manufacturing Activity Contracts, Producer Prices Up
- US manufacturing activity contracted in October 2024, marking the lowest Manufacturing PMI registered in 2024, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. Producer prices for motorcycle, bicycle, and parts manufacturers rose 3.1% in September 2024, compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Employment by firms in the other transportation equipment manufacturing industry, which includes motorcycle, bicycle, and parts manufacturing, grew 7% in September 2024 compared to the previous year. Average wages for nonsupervisory employees in the industry increased 7.5% in September 2024 compared to a year ago, reaching $34.28 per hour.
- Motorcycles are on a list of American products that the European Union may target for tariffs if US president-elect Donald Trump moves forward with trade taxes on European imports, according to The Telegraph. The report said the European Commission’s “Trump taskforce” has developed the list of products, which come from states identified as being vulnerable to losing their Republican representatives in the 2026 midterm elections. The commission hopes the congressmen will pressure Trump to abandon the tariffs. Trump has said he would impose a 10-20% tariff on all foreign imports with a tariff up to 60% on Chinese imports. In 2023, the US was the largest market for EU exports of goods, and the US is the EU’s second-largest trading partner for imports.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Sales of new motorcycles and scooters declined 5.6% in Q1 2024 compared to Q1 2023, while ATV sales fell nearly 5%, according to the latest Motorcycle Industry Council (MIC) data in DealerNews. Motorcycles and scooters represented 76.4% of total new-unit sales in Q1 while ATVs had a 23.6% share. On a positive note, new on-highway motorcycle sales were up 2.1% in Q1 year over year. The report tracks new-motorcycle retail sales data from 14 leading manufacturers and distributors in the US.
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