Equipment and Industry Segments Examined
DATAPOINT presents information on a specific Equipment Application and Industry
Segment each month prepared by Carol Turner, Power Systems Research Senior Analyst,
Global Operations. Industry trends and equipment specifications are provided.
Data comes from PSR proprietary databases, OE Link™ and
EnginLink™
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DataPoint 2021 UTV Production
Today, PSR PowerTALK Editor Joe Delmont presents the Power Systems Research 2021 North American Utility Vehicle production outlook. We estimate that North American wheel loader production this year will reach 440,100 units; about even with 2020 levels.
This forecast has been developed by Carol Turner, Senior Analyst – Global Operations, at Power Systems Research.
Transcript
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 data point covering 2021 utility vehicle 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.
00: 34
Utility vehicles, sometimes called UTVs or side-by-side machines, can accommodate up to six passengers and are primarily designed for off-road use, although they can be used for industrial activities and as personnel carriers on campuses.
00: 54
UTVs are gaining in popularity because of their flexibility and power. And are replacing ATV’s in many cases because ATV’s generally are limited to two persons seated, one behind the other and aren’t as flexible as UTVs.
01:12
In 2021, we estimate that North American UTV production will reach 440,100 units, down about 400 units, or 9%, from the 440,500 units produced last year.
01:30
About 40% of US production is exported worldwide, up to 85% of Mexico’s UTV production is for North American markets and Canada exports about 90% of its small 1700-unit production.
01:48
In 2019, North American production was 424,800 units. Production climbed almost 16,000 units, or about 4% in 2020, to that 440,500-unit level we discussed. Despite negative COVID related factors, the pandemic actually fed the demand for utility vehicles from recreational and industrial uses to military applications.
02:19
This is known as the pandemic paradox, because sales surged during lockdowns. The popularity of outdoor activities has increased, in part because of the pandemic. And people are enjoying off-road riding in the comfort and safety that is provided by UTVs.
02:39
The growth also comes from stabilization of the overall economy. Demand for products in the golf industry, federal government incentives, and the desire for new equipment with greener technology, especially within the sport and utility sectors.
02:56
Expect UTV production in North America to increase up to 5% by 2025. The leading UTV manufacturers in North America are Polaris — which has 32% of total North American production with its plants in the US and Mexico, in second position is Deere — with combined plant totals of 11.5, third is Kawasaki with 11%, just edging out Honda by only about 125 units which also has 11%.
There are nearly two dozen other manufacturers of UTVs in North America — including Arctic Cat, Clubcar, Kawasaki, Textron, Toro, and Yamaha.
03:36
This data is pulled from two of the major Power Systems Research databases, OE Link — the database of OEM production and forecast data, and EnginLink — which provides engine production forecasts and specification data.
Look for data point reports every month in the PSR PowerTrack news report and on this podcast.
Contact us for more information on other off-road products, such as mixers and agricultural equipment.
04:22
Or Google “Power Systems Research” to sign up today.
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Datapoint: 2021 Grader
Today, PSR PowerTALK Editor Joe Delmont presents the Power Systems Research 2021 North American Grader production outlook. We estimate that North American grader production this year will reach 2325 units; up about 8% from 2020 levels. This forecast has been developed by Carol Turner, senior analyst-global operations, at Power Systems Research.
Transcript
Welcome to the PSR PowerTALK podcast, produced by Power Systems Research.
From Power Systems Research I’m Joe Delmont, editor of PSR PowerTALK. Today, we’ll discuss a data point covering grader production in North America for 2021.
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.
Motor graders are used worldwide to build and maintain roads, highways, airports and other construction projects.
00:44
In 2021, we estimate that North American grader production will reach 2525 units, up about 185 units, or 8%, from the 2340 units produced last year. About 30% of this production is exported worldwide.
In 2019, North American production was 2815 units; but production dropped sharply in 2020, plunging about 17% to only 2340 units.
01:24
The decline was driven by Tier 4 pre-buying incentives and the lull in activities that used graders that are predominantly road related.
01:34
Motor graders have a long lifespan and, as a result, demand for new machinery is not always necessary; even though construction related activities focusing on road construction are ongoing.
This product segment generally is not directly affected by COVID; however, with less roadway traffic, road construction can be expedited.
02:00
Expect grader production in North America to increase up to 10% by 2025. The leading grader manufacturers in North America are Deere — which has 59% of the total North American production, followed by Caterpillar — with 37%, and Wheeler — with two percent.
This data is pulled from two of the major Power Systems Research databases — OE Link, the database of OEM production and forecast data, and EnginLink, which provides engine production forecast and specification data.
Look for DataPoint reports every month in the PSR PowerTALK news report and on this podcast.
Contact us for more information on other off-road products, such as mixers and agricultural equipment.
02:59
Or Google “Power Systems Research” to sign up today.
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DATAPOINT: NA Harvesters, 2021 Production, 550 Units
550 units is the estimate by Power Systems Research of the number of Harvesters to be produced in North America in 2021. This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: Dominating the NA market for Harvester production is Deere with 50.5% of total units produced. In second position with combined plant total of 20% is Oxbo “International; third is Flory with 13%.
Trends: In 2020, production of Harvesters in NA decreased 17%. Production is expected to increase 19% in 2021 over 2020. The Ag industry has fluctuated over the years and demand for new products has declined. Due to falling commodity prices in recent years, farmers/cultivators can’t afford new equipment and have spent years of refurbishing existing units.
Uncertainties of COVID-related factors led farmers to avoid spending nominal profits on new machinery. Over the past several years, the dramatic fall in net farm income in 2015 and 2016 seems to be leveling out at a lower level. However, America’s farmers are enduring the impact of a continuation of the current trade war with China.
On the flip side, the harvester production increase is attributed to the desire for new machines to increase productivity and to end up with a profitable yield. Expect production to fluctuate over the next 3-5 years with a slight gain of 5% by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
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DATAPOINT: NA Skid Steer Loaders, 2021 Production Forecast: 95,100 Units
95,100 units is the estimate by Power Systems Research of the number of Skid Steer Loaders to be produced in North America (Canada and the U.S.) in 2021.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With 36% of total units produced, Bobcat leads in production of Skid Steer Loaders in North America. In second and third positions are Case New Holland and Deere with 21% and 15%, respectively.
Exports: Collectively, up to 25% worldwide
Trends: In 2020, production of skid steer loaders in North America decreased 18% to 87,400 units from 106,500 units in 2019. Production is expected to recover about 9% in 2021 to 95,100 units. The decline in 2020 was caused mostly by COVID-19-related factors plus the new equipment saturation in the market and a slight drop in construction related activities.
The gain in 2021 is attributed to the need for new construction equipment and the overall stabilization of the economy, especially regarding the construction industry. As the construction industry continues to recover, construction will continue to be a key driver in overall industry growth.
Some softness in sales comes from the American agriculture industry that is sluggish as it continues to battle low commodity prices. The Agriculture Segment accounts for 29% of all Skid Steer usage in the market today. Expect production of Skid Steer Loaders in NA to increase up to 7% over the next 3-5 years. PSR
Carol Turner is Senior Analyst-Global Operations, at Power Systems Research
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DATAPOINT: NA Scooters, 2021 Production, 431,900
431,900 units is the estimate by Power Systems Research of the number of Scooters to be produced in North America (Mexico and the U.S.) in 2021.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: Dominating the NA market for Scooter production is Mexico-based Italika with 89% of total units produced. In second position is Honda-Mexico with 11%; third is US-based Go-Ped with 178 units.
Trends: 2020 production of Scooters in NA increased 10.5% over 2019 production despite Covid-19 uncertainties. It is expected that production will gain an additional 4% from 2020 to 2021.
Honda reported record low production in 2020, when it posted the sharpest decline in its 72-year history, declining by more than 5 million sales globally or 24.4%. Italika rallied after a bleak start to boost total production for the segment. Italika was founded in 2005 as a new emerging motorcycles manufacturer headquartered in Toluca, Mexico.
Increased demand for efficient and eco-friendly vehicles–along with the threat of rising gas prices–will boost the electric scooter market. Not only are scooters convenient and offer independence, but they also make for faster commutes as opposed to using other modes of transportation; electric models are also extremely popular. Expect production of scooters to increase 15% by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, for Power Systems Research
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DATAPOINT: 2021 US ATV Production, 301,000 Units
301,000 units is the estimate by Power Systems Research of the number of ATVs to be produced in Mexico and the U.S. in 2021.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With 28% of total units produced, Polaris Industries leads in production four-wheeled ATVs in North America. In second and third positions are Honda and Yamaha Motor with 22% and 19%, respectively.
Exports: Up to45% of Mexico’s ATV production is exported worldwide. That compares to about 30% of the US production that is exported.
Trends: Production of ATVs decreased 18% in 2020 from the 337,700 units produced in 2019. Even though production is expected to increase in 2021 by about 9% over the 2020 production of 275,700 units, it will still trail 2019 production by more than 36,000 units.
The decrease in 2020 was caused by COVID-19, excess inventories, uncertain economic conditions and the growing popularity of side x side units (UTVs). Manufacturers have discontinued less popular models and continue to shift production to UTVs.
The outlook for ATV sales is positive. According to investor relations representatives at Polaris, Yamaha and Arctic Cat, consumer discretionary spending is on the increase and gasoline prices are favorable.
Production is expected to increase by as much as 10% by 2025, driven by positive economic factors, pent-up demand caused by COVID, and the introduction of innovative products and technologies, including a shift to electric vehicles. PSR
Carol Turner is Senior Analyst, Global Operations at Power Systems Research
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DATAPOINT: Global Snowmobiles, 2021 Production, 107,250 Units
107,250 units is the estimate by Power Systems Research of the number of Snowmobiles to be produced in Canada, Finland, Italy, Japan, and the U.S. in 2021.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With 52% of total units produced, Bombardier Recreational Products (BRP) leads in production of Snowmobiles. In second position is Polaris Industries with 19%. Arctic Cat is third with 17%.
Trends: Production of snowmobiles decreased nearly 19% in 2020 from 2019. Despite the COVID-19 shutdowns at Arctic Cat/Textron and Polaris, production was back on track for the winter ’21 season.
Despite the COVID-19-related production problems, 2021 will see the best year-to-year growth in 25 years, according to the International Snowmobile Manufacturers Association (ISMA). Expect snowmobile production to gain 16% in 2021 over that of 2020.
The demand for snowmobiles is skyrocketing. Recreationalists are choosing snowmobiling as a new hobby since many other activities have been shut down by COVID-19 restrictions.
The decline in 2020 was attributed to the lack of snowfall in many key riding areas worldwide, especially during the months from January – March. Despite weather related issues, manufacturers introduced an array of new models that will entice buyers.
Even though consumers struggle with economic difficulties and fuel prices are unstable, it appears that when it snows, powersports enthusiasts still want to play. Expect production of snowmobiles to increase an additional 10% by 2025. PSR
Carol Turner, Senior Analyst, Global Operations
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DataPoint: U.S. Trenchers, 2020 Production Estimate, 5,768 Units
The 5,768 units is the estimate by Power Systems Research of the number of Trenchers to be produced in the U.S. in 2020.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With combined plant totals of 49.5% Charles Machine Works leads in production of trenchers in the United States. In second position is Vermeer with 13%; third, is Ground Hog with 11%.
Exports: Collectively, up to 30% worldwide, with buyers in South Africa and Russia making up the two largest segments.
Trends: In 2019, production of Trenchers in the United States increased nearly 3%. Production is expected to remain flat in 2020 with a slight decrease of 2%. Trenchers, typically wheeled or chain, are utilized in a variety of applications and these machines are quite diversified for various markets having a wide range of clients. Rental companies are hanging on to their trenchers longer, due to increased replacement costs. Also affecting production is the impact of Tier 4 engines that significantly increase trencher unit costs.
One more driver: trenchers go head to head with compact excavators. Many users prefer excavators because they are considered a more versatile machine. As market factors fluctuate, expect trencher production to gain up to 5% by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
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DATAPOINT: US Combines, 2020 NA Production Forecast–6,300 units
The 6,300 units is the estimate by Power Systems Research of the number Combines to be produced in the U.S. in 2020.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: John Deere leads in the production of Combines in the U.S. with 59% of the total units manufactured. In second position is Case with 29%. Third, is Class with 6%.
Exports: Collectively, up to 30% worldwide.
Trends: In 2019, production of combines in North America decreased 7%. Production in 2020 is forecasted to remain flat with a nominal drop of 1%. Despite COVID-19, combine manufacturers expect to see an increase in sales due to the introduction of new equipment.
A few years ago, farmers were reluctant to buy or trade in pricey equipment because of low commodity prices. For instance, in 2017, production and purchases of new combines rebounded as portrayed in production figures. The gain can be attributed to an increase in commodity prices such as corn and soybeans that peaked in 2013/2014.
According to industry reports such as AEM, export sales to Canada decreased 19% in 2019. Expect production to remain flat with a possible gain of 5% by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
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DATAPOINT: 2020 NA Off-Highway Truck Production Forecast Is 1,200 Units
The 1,200 units is the estimate by Power Systems Research of the number of Off-Highway Trucks to be produced in North America (Canada and the U.S.) in 2020.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: Caterpillar leads in the production of Off-Highway Trucks in North
America with 53% of the total units manufactured. In second position is Deere with 29.5%. Third, is Komatsu America with 15.5%.
Exports: Collectively, up to 20% worldwide.
Trends: Production of Off-Highway Trucks in North America decreased 1% in 2019 compared to 2018. Production is expected to drop another 15% in 2020. The decline in manufacturing is caused by the weakening of mining related activities, especially within the copper and gold segments along with overseas mining related issues. At the same time, Covid-19 factors contributed to the decrease.
Expect production to increase 5% by 2025 as the need for new equipment for mining operations increases. It is speculated that there will be growth in the excavation of iron ore, nickel and bauxite followed by gold and copper. PSR
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
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