Industry Analysis & Industry Trends
The past five years have been a smooth ride for all-terrain vehicle (ATV), golf cart and snowmobile manufacturers. Due to many of the industry's products being discretionary in nature, demand tends to rise and fall with fluctuations in disposable income. Although the industry is expected to grow, its high growth rate over the five-year period can be attributed to revenue starting at a low recessionary base. The industry's future is tied to the continued recovery of the US economy and its effect on disposable income and consumer sentiment. Overall, the industry's revenue growth will be aided by higher disposable income, renewed interest in recreational activity and greater investment in recreational equipment... purchase to read more
Industry Report - Industry Investment Chapter
The ATV, Golf Cart and Snowmobile Manufacturing industry is highly capital intensive. For every $1.00 spent on labor, the average industry firm will invest about $0.50 in capital equipment. On the other hand, average industry wages have increased, albeit marginally, during the past five years due to improvements in the manufacturing process and the need for qualified personnel to operate machines and test products.
Although new capital technologies have been introduced, labor is still required to manufacture goods, operate machinery and design new products. As the industry continues to advance technologically, capital costs will increase as more specialized machinery and equipment will be required... purchase to read more