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 1.3 million registered snowmobiles, according to the International Snowmobile Manufacturers Association (ISMA).
Industry Forecast
Powersports Equipment Manufacturers Industry Growth
Recent Developments
Jul 15, 2024 - Employment, Labor Costs Up
- According to the US Bureau of Labor Statistics (BLS), employment in the other transportation equipment manufacturers industry, which includes powersports manufacturing, grew during the first five months of 2024 year over year. Month over month, employment ticked up 2.4% in May 2024 from April 2024. Average wages for nonsupervisory employees in the industry increased year to date through June 2024, reaching $34.32 per hour. Sales for the US powersports equipment manufacturers industry are forecast to grow at a 2.4% CAGR from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
- 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.
- 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.
- 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.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.