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 385 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 38 workers, and generates about $23-24 million annually.

    • The powersports manufacturing industry consists of about 385 firms that employ about 14,700 workers and generate over $9 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
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            May 10, 2024 - Sales Decrease in Q1
                            • 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 April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
                            • US manufacturing activity contracted in April 2024 after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.2% in April, down 1.1 percentage points from the 50.3% recorded in March. A reading above 50% indicates manufacturing expansion. Prior to March’s expansion, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. April’s New Orders Index was in the contraction zone at 49.1%. The April Production Index was 51.3%, a decrease from March’s 54.6%. Nine manufacturing industries tracked by the ISM reported growth in April: Nonmetallic Mineral Products; Printing & Related Support Activities; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Transportation Equipment; Chemical Products; and Plastics & Rubber Products. The industries reporting contraction in April were Miscellaneous Manufacturing; Machinery; Furniture & Related Products; Wood Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Paper Products.
                            • A new report shows the global powersports market grew 4% in 2023, according to MotorcyclesData.com. The UTV and side-by-side market experienced a moderate recovery in sales in 2023, following two years of decline. The industry reached a record in 2020 following nine consecutive years of growth, partly due to sales being boosted during the COVID-19 pandemic of this type of vehicle. Sales in 2023 should hit the third highest level of sales in history. Polaris is the market leader in the industry, followed by Honda and Can-Am.
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