Industry operators will focus on targeting new customer groups, such as women and millennial.
New York, NY (PRWEB) April 17, 2014
The Motorcycle, Bikes and Parts Manufacturing industry has struggled in the five years to 2014. Because the bulk of industry revenue is derived from motorcycle sales, the industry relies primarily on demand from baby-boomer males, a demographic that is reaching retirement age. “As a result of lifestyle changes, this consumer group's demand for motorcycles has diminished, precipitating weak sales over the past five years,” according to IBISWorld Industry Analyst Darryle Ulama. Additionally, industry manufacturers have struggled to diversify their customer base and face mounting competition from imports. Consequently, in the five years to 2014, industry revenue is expected to decrease at an annualized 1.5% to $699.3 million.
Like much of Canada's manufacturing sector, trade activity is high in this industry. In 2014, exports are expected to account for 82.6% of industry revenue, an increase from 75.0% in 2009. The growth of exports can be attributed to weak domestic demand and the recent depreciation of the Canadian dollar, enabling exports to become more cost-competitive on the global market. “Industry manufacturers are increasingly looking abroad to sell their products,” says Ulama. Mounting imports, which have risen over the past five years, are fuelling this trend. By 2014, imports, primarily from the United States, Belgium, Japan and China, are expected to grow at an annualized 5.2% over the five-year period and satisfy 94.0% of domestic demand.
Industry manufacturers will likely invest heavily in targeting new customer groups, such as women and millennial, over the next five years. However, the global motorcycle industry will remain highly competitive, with rising East Asian competitors joining established European and US manufacturers among the ranks of dominant international operators. Import competition will continue to limit domestic performance and aging baby-boomer males are expected to continue demanding less from the industry.
For more information, visit IBISWorld’s Motorcycle, Bike & Parts Manufacturing in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
This industry manufactures motorcycles, mopeds, scooters, bicycles or tricycles. It also includes businesses that manufacture equipment and parts for these vehicles.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.