Powersports Equipment Manufacturers NAICS 336999

Dec 28, 2025 - Slower Growth Forecast

• The US powersports equipment manufacturers industry is projected to grow at a CAGR of 2.27% between 2025 and 2029, slower than the overall economy's anticipated growth, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. The forecast noted that a tighter immigration policy could limit the expansion of the labor supply and job growth for durable goods manufacturing industries. However, labor productivity could still improve due to new technologies such as AI and 3-D printing as well as adjustments forced by the pandemic.
• Consumer sentiment in December 2025 reflected a cautious economic outlook that influences demand for powersports equipment manufacturers. The University of Michigan Index rose 3.7% month over month to 52.9 but remained 30% below December 2024, and 63% of consumers still expect unemployment to increase. Inflation expectations eased to 4.2% for the next year and 3.2% long term, yet overall confidence stayed muted. The Conference Board Consumer Confidence Index declined to 89.1, with current condition assessments weakening and expectations holding near recession linked levels. As consumers shift spending toward essential, lower cost categories, manufacturers face softer demand for discretionary powersports products, slower sales of premium models, and heightened price sensitivity. Value oriented equipment, entry level models, and aftermarket parts are likely to remain more resilient, while companies emphasizing cost efficiency, flexible production, and targeted innovation will be better positioned in a cautious spending environment.

• The personal watercraft (PWC) market is reshaping the powersports industry by attracting new entrants through affordability, versatility, and evolving consumer preferences, according to a new report in Boating Industry. With entry-level models from Yamaha and Sea-Doo starting under $9,000, PWCs are outpacing aluminum and pontoon boats in first-time buyer adoption. Innovations in touring, fishing, and group connectivity, such as touchscreen displays and customizable accessories, are expanding use cases and boosting engagement. Sea-Doo’s focus on fishing PWCs and Yamaha’s investment in youth-oriented models reflect a broader shift toward multi-purpose watercraft. As sustainability gains traction, brands are exploring alternative power sources, signaling long-term transformation. For powersports dealers and manufacturers, these trends present growth opportunities in sales, service, and customer education.
• Transportation equipment manufacturing, which includes powersports equipment manufacturers, is one of the 11 manufacturing industries reporting contraction in September’s Manufacturing ISM Report on Business. Transportation equipment manufacturers reported growth in order backlogs, increases in raw materials prices and inventories, and faster supplier deliveries, while reporting a decline in new orders, a decrease in production, and lower employment. Other manufacturing industries reporting contraction during the period were Wood Products; Apparel, Leather & Allied Products; Plastics & Rubber Products; Paper Products; Furniture & Related Products; Chemical Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Machinery; and Computer & Electronic Products.. Five industries reporting growth were Petroleum & Coal Products; Primary Metals; Textile Mills; Fabricated Metal Products; and Miscellaneous Manufacturing. Overall, economic activity in the manufacturing sector contracted for the seventh consecutive month in September, with the Manufacturing PMI registering 49.1%.