Motorcycle Dealers
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 6,000 motorcycle dealers in the US sell new and used motorcycles plus other powersport vehicles. In addition to motorcycles, products sold include motor scooters, motorbikes, mopeds, all-terrain vehicles (ATVs), and personal watercraft. Companies typically sell replacement parts or accessories and offer repair services. Some companies offer maintenance programs.
Dependence on Motorcycle Manufacturers
Dealers rely on a limited number of manufacturers to develop compelling new products that customers will buy.
High Capital Requirement
The ability to secure floor plan financing is critical to funding inventory purchases.
Industry size & Structure
A typical motorcycle dealer operates out of a single location, employs less than 20 workers, and generates $4-5 million annually.
- The motorcycle dealer industry consists of about 6,000 companies, employs 71,000 workers, and generates over $28 billion annually.
- The industry is fragmented - the top 50 companies account for just 17% of sales.
- The largest dealers operate "superstores", which stock a wide range of products and serve an extended geographical market. The largest Harley-Davidson dealers can generate more than $50 million annually.
Industry Forecast
Motorcycle Dealers Industry Growth
Recent Developments
Jan 13, 2025 - Producer Inflation Up, Employment Down
- Producer prices for motorcycles grew 3.1% in November 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Employment by motorcycle, boat, and other vehicle dealers declined 7.8% in October 2024 year over year while wages at other motor vehicle dealers rose 1.7% during the same period, per the BLS. Average hourly wages for nonsupervisory employees in the industry in October reached $26.88. In December 2024, economic activity in the services sector expanded for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including the Retail Trade; Transportation & Warehousing; and Wholesale Trade industries.
- Motorcycle dealers will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wages, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage change will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Motorcycles are on a list of American products that the UK may target for retaliatory tariffs if US president-elect Donald Trump moves forward with trade taxes on UK goods, according to Politico. According to the report, UK officials are looking at how to repurpose former European Union measures against the US for immediate deployment in the case of a trade war. American products on the list for retaliatory tariffs used in previous trade wars include Harley Davidson motorcycles, Levi’s jeans, and Jack Daniel’s bourbon. Trump has said he would impose a 10-20% tariff on all foreign imports with a tariff up to 60% on Chinese imports.
- California regulators announced in December 2024 that they would not move forward with a proposed rule that would have mandated that at least 10% of new motorcycles sold by 2028 and 50% by 2035 be electric, according to Politico Pro. The California Air Resources Board announced in December 2024 that it would not proceed with a hearing to consider changes to the state’s motorcycle emission regulations and sales-percentage requirements. According to the board’s statement, “The proposed amendments to on-road motorcycles (ONMC) emission standards and test procedures and adoption of new provisions relating to ONMCs have been withdrawn.” Trade association The Motorcycle Industry Council (MIC) said the sales requirement would have been impossible for most manufacturers to meet based on current sales trends. The Motorcycle Riders Foundation (MRF) said the group was pleased with the board’s decision not to move forward with the plan. According to MRF president Kirk Willard, “It’s nice to see policymakers admit a mistake and withdraw a plan that was flawed from the outset.”
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