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
Jul 15, 2024 - Increases in Inflation, Employment
- Producer inflation for motorcycle, bicycle, and parts manufacturers increased for the first five months of 2024 year over year, according to producer price data from the US Bureau of Labor Statistics (BLS). Producer prices were unchanged in May 2024 from April 2024. Employment and average wages for nonsupervisory employees in the other transportation equipment manufacturing industry, which includes motorcycle, bicycle, and parts manufacturing, grew during the first five months of 2024 year over year.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- 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.
- US manufacturing activity contracted in June 2024 for the third consecutive month after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 48.5% in June, down 0.2 percentage points from the 48.7% recorded in May. A reading above 50% indicates manufacturing expansion. Prior to the uptick in March, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. June’s New Orders Index was in the contraction zone at 49.3%. The June Production Index was 48.5%, a decrease from May’s 50.2%. Eight manufacturing industries tracked by the ISM reported growth in June: Printing & Related Support Activities; Petroleum & Coal Products; Primary Metals; Furniture & Related Products; Paper Products; Chemical Products; Miscellaneous Manufacturing; and Nonmetallic Mineral Products. The industries reporting contraction in June were Textile Mills; Machinery; Fabricated Metal Products; Wood Products; Transportation Equipment; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Computer & Electronic Products.
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