PSR PowerTALK Podcast

Today Joe Delmont presents the 2021 forecast for global Outboard motor production in North Ameria, Japan, Brazil, China and Thailand. 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.

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 global production of outboard motors. We’ll be looking at motors production in Brazil, China, Japan, Thailand and the United States.

This forecast has been developed by Carol Turner, a senior analyst of global operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.

00:38

Only 12% of global production of outboards is produced in the US. It’s done primarily by Mercury Marine and Bombardier Recreational Products.

Japan is the leading producer of outboards. Building more than 71% of the units. And Yamaha Marine produces 43.5% of the units built in Japan.

Thailand is expected to produce about 9% of total global production of outboards.

China is 4th at about 7.5%.

01:13

Yamaha builds more outboard motors than anyone. It has 48.5% of the market and is expected to build almost 251,000 units in Japan this year and another 28,600 units in Thailand. In second position is Tohatsu with 15%, and 3rd is Mercury Marine with combined plant totals also of about 15%.

01:35

Outboard motors are generally defined as detachable boating engines mounted on the stern of a boat on outboard motor brackets and are typically either 2 stroke or 4 stroke engines.

The first outboard was produced by Ole Evinrude in 1909.

Outboard motors can be very powerful units with output ranging as high as 425 horsepower.

02:03

In 2021, we estimate that global outboard motor production will reach about 618,800 units. That’s up about 43,000 units, or seven and a half percent, from the 575,800 units produced last year.

In 2019, though, global production was 680,400 units; so, production this year will still be down about 9% from 2 years ago.

02:38

Despite COVID related factors, boat sales soared when stay-at-home consumers began looking for recreation.

However, manufacturing dropped mostly due to BRP canceling production of Evinrude Motors in May of 2020.

Yamaha reported unit sales of 279,000 in 2020; a 10% cut from the 310,000 it did in 2019.

Mercury Marine discontinued a variety of unpopular Marine and Mercury models, especially its two stroke models.

Outboard motor production peaked in 2018 and that was mostly attributed to the demand for new models, along with the soaring economy.

Outboard motors tend to last decades before owners purchased a new model.

In recent years, new motors are more powerful, but lighter in weight and more fuel efficient, and this certainly attracts consumers.

03:41

Boating is an extremely popular recreational activity worldwide; and enthusiasts want a motor that is powerful but also versatile. The growth in recreational boating over the past several years has been driven in large part by advances in outboard motor power.

Expect production of outboard engines to gain up to 15% by 2025.

04:06

This data is pulled from two of the major Power Systems Research databases: OE Link — which is the database of OEM production and forecast data, and EnginLink — which provides engine production, forecasts, 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 and on-highway vehicles.

04:36

To read a transcript of this podcast, visit the website at powersys.com and click on the podcast archive.

Thank you for joining the PSR PowerTALK podcast. This podcast will be available on demand. Search for “PSR PowerTALK” in your podcast app or Google “Power Systems Research” to sign up today.

Power Systems Research forecasts that the number of personal watercraft produced in North America in 2021 will reach 104,200 units; an increase over 2020 levels of about 24%.

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 will discuss a data point covering personal watercraft production in North America this year.  

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.  

Personal watercraft, sometimes called PWC’s or jet skis, can accommodate up to four persons and are primarily designed for marine recreation, although they also are used for water patrols and industrial activities. 

00:50 

Jet skis hit rough times in recent years. Production of PWC’s in North America dropped 8700 units, or almost 10%, in 2020. 

In 2019, North American production was 93,000 units. The next year production dropped to 84,250 units. Production was reduced in 2020 because of plant shutdowns and parts shortages caused by the pandemic. 

While COVID caused plant closures, it also drove demand as consumers look for ways to spend their extra time and cash. 

01:35 

Things are looking much brighter this year than in 2020. Production this year is expected to surge 24% to about 104,000 units. This is based on high demand for recreational products like these watercraft.  

01:53 

The National Marine Manufacturer’s Association tells us that the boating industry is booming, and that demand is at a record high as Americans are spending more time on the water this summer. 

The popularity of outdoor activities has increased in part because of the pandemic, where people are enjoying off-road riding in the dirt — on motorcycles and four wheelers, and on the water — in boats and personal watercraft.  

Expect PWC production in North America to ride this wave and to increase up to 10% by 2025. 

02:35 

The leading personal watercraft manufacturers in North America are Yamaha, which has almost 50% of total North American production. In second position is BRP with 43 1/2%, and 3rd is Kawasaki with a distant 7%.  

In announcing financial results recently, BRP said that its Sea-Doo sales for 2020 increased by 7% over the previous year. This, in spite of its Mexico plant having been shut down for two full months as a result of the COVID pandemic.  

The company also noted that approximately half of all its Sea-Doos sold in 2020 were purchased by first time buyers. They’re typically younger, with a higher ratio of women, the company said.  

Look for an electric personal watercraft from BRP in the next few years. The company recently announced plans to invest $300 million over the next five years to offer options to consumers; with electric models in each of its power sports and marine product lines by the end of calendar year 2026. 

03:53 

This data is pulled from two of the major Power Systems Research databases.  OE Link is 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 PowerTALK News report and on this podcast. Remember, to read a transcript of this podcast visit the PSR website at powersys.com and click on the podcast archive. 

Contact us for more information on other marine products such as outboard motors and pleasure craft. 

04:31 

Thank you for joining the PSR PowerTALK podcast. This podcast will be available on demand. Search for “PSR PowerTALK” in your podcast app or Google “Power Systems Research” to sign up today.