Polaris Industries, the $5.4 billion maker of snowmobiles, off-road vehicles and motorcycles, says it has agreed to acquire Boat Holdings, a boat manufacturer owned by the Vogel family, management and Balmoral Funds, in an all-cash transaction valued at approximately $805 million.
Yosyf Sheremeta, PhD, Director of Product Management and Customer Experience, takes a look at what’s in store for the industry segments we follow for the rest of 2021 and beyond.
Welcome to the PSR PowerTALK podcast produced by Power Systems Research.
00:06 Joe Delmont
From Power Systems Research I’m Joe Delmont, editor of PSR PowerTALK.
Today we’ll talk with Yosyf Sheremeta about the economic outlook for North America.
Data from the National Marine Manufacturers Association shows August was another strong month for new powerboat retail sales, which were up 8% year to date on a seasonally adjusted basis compared to a year ago.
New power boat retail sales did slowed in August following increases in the early summer months. Total sales were down 13 percent compared to July, while sales are still strong with increases across all major categories, year to date. Sales of saltwater fishing boats, tow boats, cruisers and yachts each had double-digit growth ranging from 11 percent to 15 percent, compared to 2019. PSR
EDITOR’S NOTE. Power Systems Research tracks the global trends powersports recreational equipment, especially the electrification of these units. This is one of a series of reports on these trends.
Harley-Davidson’s LiveWire strategy includes these key take-aways:
POLARIS FIRST QUARTER 2021 EARNINGS RESULTS. Polaris released first quarter 2021 results with reported sales of $1,951 million, up 39% from reported sales of $1,405 million for the first quarter of 2020. The company reported first quarter 2021 net income of $134 million compared with a net loss of $5 million for the 2020 first quarter.
Gross profit increased 64% to $481 million for the first quarter of 2021 from $293 million in the first quarter of 2020. Reported gross profit margin was 24.6% of sales for the first quarter of 2021.
Polaris Product Segment Highlights:
POWERSPORTS MARKET ANALYSIS. The powersports market observed a slowdown during the first two quarters of 2020 driven by the spread of the COVID-19. Shortages of labor and materials in the first quarter led to many industry challenges. Governments began lifting the lockdown restrictions to stabilize the economic activities in the third quarter of 2020. During this period, the powersports industry witnessed steady growth owing to the rising inclination of individuals toward participating in outdoor recreational activities while complying with social distancing norms.
Powersports market size exceeded $34 billion in 2020 and is expected to grow at around 6% CAGR between 2021 and 2027. The global power sports unit sales are anticipated to reach over 3 million units by 2027. PSR
Michael Aistrup is Senior Analyst covering Recreational Products for Power Systems Research
Read the complete report in April PowerTALK™ News
EDITOR’S NOTE. Power Systems Research tracks the global trend of electrification of industrial equipment. This is one of a series of reports on these trends.
Polaris INDUSTRIES, Minneapolis, is planning to debut a new electric Ranger utility side-by-side in December 2021. The Ranger will be the first electric vehicle Polaris has developed through their partnership with Zero Motorcycles.
The electric Ranger is the first product in Polaris’s long-term plan to accelerate its leadership in powersports electrification. Production will take place in Polaris’s Huntsville, AL facility.
Bombardier Recreational Products Inc. (BRP), which owns popular brands such as Can-Am, Rotax, Sea-Doo and Ski-Doo, plans to offer electric models in each of its product lines by the end of 2026. The company is investing $300 million in product development and production facilities.
SUMMARY. The North American economy remained stable in 2019 and pure economic conditions as well as fundamentals in the region were favorable. Most industries performed very well, and the short-term outlook remains stable to flat for most market segments. However, we see many new developments that could suggest a shift in the trend.
Consumer confidence declined slightly in December, following a moderate increase in November. The Conference Board’s Consumer Confidence Index stood at 126.5 in December, 1.4 points higher than in September 2019.
Per Lynn Franco, Senior Director of Economic Indicators at The Conference Board: “While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects. While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”
Yosyf Sheremeta, PhD, Dir. of Prod. Mgt. & Customer Experience, analyzes the North American economic outlook with special emphasis on the Administration’s efforts to control emissions.
Welcome to the PSR PowerTALK podcast, produced by Power Systems Research.
00:06 Jim Downey:
Good morning and welcome to this podcast by Power Systems Research. Today we’ll be discussing the North American market outlook for.2021. I’m Jim Downey, Vice President of Global Data Products here at Power Systems Research. I’m joined by my colleague, Yosyf Sheremeta, who is the Director of Product Management and Customer Experience.
This report is excerpted from the Q3 2019 Update Bulletin prepared for clients of Power Systems Research, Oct. 1, 2019.
SUMMARY. If you were to look at the latest global macro-economic fundamentals, you would see a strong and healthy economy and a rosy picture. On the other hand, if you follow the latest updates on key industries and their players worldwide, optimism is not that strong.
While much of the North American economy slowed to a crawl after COVID-19 shutdowns in 2020, the powersports industry posted significant growth. Many people, weary of staying at home, found a cure for cabin fever while riding an off-road vehicle or experiencing socially distant spaces on trails. By all indications, the sales increase in powersports equipment has been one of the few bright spots in an otherwise grim COVID-19 economy.
According to Jeremy Jansen, senior vice president of Wells Fargo Commercial Banking’s distribution financing business, “What started out as a slight uptick has just taken off to record sales levels,” he said. “Dirt bikes, ATVs, side by sides, personal transport vehicles — everything in the book is retailing well above prior year.” After plummeting briefly in mid-March amid the initial shutdown, powersports sales skyrocketed in the ensuing months.
Today Joe Delmont presents the 2021 forecast for Motorcycle production in North America. This forecast has been developed by Carol Turner, Senior Analyst of Global Operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
Welcome to the PSR PowerTALK podcast produced by Power Systems Research.
00:06
From Power Systems Research I’m Joe Delmont, editor of PSR PowerTALK. Today we’ll discuss a datapoint covering 2021 North American production of on-road motorcycles.
Monthly news and analysis from PSR’s experts
World Headquarters
St. Paul, MN USA
Detroit Regional Sales
Ann Arbor, MI USA
Campinas, Brazil
