The Powersports industry–featuring ATVs, motorcycles and watercraft–appears to be leading the way on the road to economic recovery. According to Motorcycle & Powersports News magazine, this increased demand for powersports is helping values bounce back from historic lows.
According to Scott Yarbrough, senior analyst for motorcycle and powersports at Black Book: “After the first month of the COVID-19, shutdowns put a freeze on powersports values during the beginning of the spring selling season, and the second month saw dramatic declines.
This month values are up across the board, some by the largest amounts we have ever seen in a monthly update. A combination of surprisingly strong demand, coupled with drops in availability of units, has led to this resurgence in values,”
Source: Black Book
The largest increase is the utility vehicle segment, which is up 10.5% compared to May. ATVs are up 4.6% and Snowmobiles are showing a decline of (-2%).
Increased demand is being driven by a desire by consumers to find a social distancing activity while having fun with family and friends.
According to the National Marine Manufacturers Association (NMMA), new boat sales rebounded sharply in May, up 59% compared to April, and up 9% from pre-pandemic levels on a seasonally adjusted basis. Total sales in May were the highest they’ve been in a decade with increases across all segments.
Highlights from the latest New Powerboat Registrations report and Monthly Shipment Report:
PWC sales reached record monthly highs for the second consecutive month in June, up 41% from a year ago, on a seasonally adjusted basis and have fully recovered from pandemic-related losses in March and April.
Saltwater fishing boat sales were up 9% in May on a seasonally adjusted basis, compared to a year ago.
Jet boat sales were up 31% in May on a seasonally adjusted basis, compared to a year ago.
Outboard engine sales in June were up an average 28% from pre-pandemic levels on a seasonally adjusted, monthly basis.
PSR Analysis: Consumers seem to have decided that powersports provide a safe and affordable way to socially distance in today’s new health environment.
Shutdowns of manufacturing facilities due to supply issues and Covid-19 concerns have stopped powersports equipment shipments. Industry manufacturers will need to increase production to meet consumer demand or consumers will look to other ways to safely social distance. PSR
Michael Aistrup Is Senior Analyst at Power Systems Research
