The industry faces ample competition at home and abroad
New York, NY (PRWEB) November 26, 2014
Happy days have returned for the ATV, Golf Cart and Snowmobile Manufacturing industry. Rebounding from a low in 2009, the industry is expected to experience a revenue increase in the five years to 2014. Offering largely expensive, discretionary recreational products, demand for industry products is highly volatile. According to IBISWorld Industry Analyst Sarah Kahn, "consumers with low disposable incomes have a wealth of alternative lower-priced recreational and leisurely activities to replace those that necessitate snowmobiles and all-terrain vehicles (ATVs). Additionally, the industry is also subject to changes in downstream US markets. As the US and Canadian downstream markets recovered, and consumers and businesses completed their postponed purchases, industry revenue rebounded. In 2014, however, revenue is expected to increase at a slower rate."
The industry offers a diverse range of seasonal and year-round products, including ATVs, golf carts, snowmobiles and personal watercrafts (PWCs). Competing on the basis of performance, innovation, technology, styling, brand loyalty and price, the industry faces ample competition at home and abroad. Manufacturers are thus quick to respond to changing consumer preferences. For example, over the past five years, demand from ATVs has fallen and shifted to side-by-side vehicle (SSV). Meanwhile, golf carts, once almost exclusively used on golf courses, are increasingly used on campgrounds, RV parks and gated communities. The industry is expected to continue offering new products to an increasingly diverse consumer market.
Over the five years to 2019, the industry is expected to continue growing, albeit at a slower average annual rate. Manufacturers are expected to provide diverse models that target different markets.
"Due to volatile steel prices and hesitant consumer spending on recreational activities, the industry is expected to offer lower-priced products, democratizing, to a certain extent, the leisurely activities," says Kahn. This may also target consumers that are not enthusiasts of the sport. Nonetheless, manufacturers are expected to continue developing more- powerful engines and higher-quality, higher-priced products as well, adding accessories to their transportation products so consumers can personalize and customize them to their taste.
For more information, visit IBISWorld’s ATV, Golf Cart and Snowmobile Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The ATV, Golf Cart and Snowmobile Manufacturing industry consists of businesses that manufacture all-terrain vehicles (ATVs), snowmobiles, golf carts, personal watercraft or other transport equipment. It also includes businesses that manufacture equipment and parts for the transport equipment listed here.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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