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
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Jan 21, 2025 - Employment Up, Manufacturing Activity Down
                            • Employment in the other transportation equipment manufacturers industry, which includes powersports equipment manufacturing, grew 7.1% in October 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees in the industry increased 8.5% in October 2024 year over year, reaching $35.25 per hour. US manufacturing activity contracted in December 2024, marking the ninth consecutive month of contraction for the Manufacturing PMI, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.3% in December, up from the 48.4% recorded in November. A reading above 50% indicates manufacturing expansion. Seven industries reported contraction in December including Textile Mills; Fabricated Metal Products; Printing & Related Support Activities; Machinery; Chemical Products; Transportation Equipment; and Nonmetallic Mineral Products. Seven industries reported growth in December including Primary Metals; Electrical Equipment, Appliances & Components; and Wood Products.
                            • In 2024, there were 112,650 snowmobiles sold worldwide, with 51,987 sold in the US and 38,599 sold in Canada, according to the annual Snowmobile Fact Book from the International Snowmobile Manufacturers Association. About 1.2 million snowmobiles are registered in the US and over 555,000 snowmobiles are registered in Canada. The average snowmobiler is 54 years old and spends $2,500 each year on snowmobile-related recreation. About 50% of snowmobilers trailer their snowmobiles to ride while 50% of users snowmobile from their primary residence or have a vacation home where they keep and use their snowmobiles. According to the report, the economic impact of snowmobiling in the US is $26 billion annually, which includes spending on equipment, clothing, accessories, and vacations.
                            • 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 declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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