Powersports Equipment 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 powersports vehicle manufacturers in the US produce all-terrain vehicles (ATVs), snowmobiles, personal watercraft (PWC), golf carts, and motorized go-carts, as well as related parts, components, and accessories. Firms may offer different models of multi- or single-passenger vehicles that serve recreational or utility purposes. Distributors and dealers are the primary channels of distribution.
Competition from Foreign Brands
Domestic companies compete with large foreign companies, which may be diversified and benefit from greater financial and manufacturing resources.
Competition from Used Equipment
OEMs compete with used powersports equipment, which generally provides excellent value and an entry point for customers who are new to the market.
Industry size & Structure
The average powersports equipment manufacturer operates out of a single location, employs about 39 workers, and generates about $22-23 million annually.
- The powersports manufacturing industry consists of about 400 firms that employ about 15,500 workers and generate over $9.1 billion annually.
- The industry is highly concentrated; the top 4 companies account for over 65% of industry revenue.
- Large firms include Polaris, Honda, Textron (Arctic Cat, E-Z-Go), Platinum Equity (Club Car), and OTK Kart.
- The largest market for all-terrain vehicles (ATV) and recreational use vehicles (RUV) is the US.
- In the US, there are 1.2 million registered snowmobiles, according to the International Snowmobile Manufacturers Association (ISMA).
Industry Forecast
Powersports Equipment Manufacturers Industry Growth
Recent Developments
Nov 14, 2024 - Manufacturing Activity Decreases
- 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. Employment in the other transportation equipment manufacturers industry, which includes powersports equipment manufacturing, grew 7% in September 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees in the industry increased 7.5% in September 2024 year over year, reaching $34.28 per hour.
- Polaris reports sales fell 23% in Q3 2024 compared to Q3 2023, reaching $1.7 billion, according to PowerSports Business. North American sales, which accounted for 85% of the company’s sales, decreased 26% in Q3 2024 year over year. Beginning in July 2024, the company said it would lower its production and shipments to protect its dealer network, which impacted the Q3 sales. As Polaris faces a challenging environment with lower consumer demand, it is seeking operational efficiencies and focused on managing dealer inventories. According to CEO Mike Speetzen, “A healthy dealer network is one of the critical components to our long-term success, which is why we have anchored our current production and shipment plans to our goal of lowering dealer inventory by 15 to 20 percent by the end of the year, and I am encouraged by the progress being made.”
- 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 6.1% through Q3 2024 compared to a year ago, while ATV sales fell nearly 3.7%, according to the latest Motorcycle Industry Council (MIC) data in DealerNews. Motorcycles and scooters represented 77% of total new-unit sales through Q3 while ATVs had a 23% share. New on-highway motorcycle sales had the smallest decline in sales, down 1.4% through Q3 year over year. The report tracks new-motorcycle retail sales data from 14 leading manufacturers and distributors in the US.
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