Industry Analysis & Industry Trends
Fluctuations in consumer disposable income directly influence the financial performance of the ATV, Golf Cart and Snowmobile Manufacturing industry. With the economic recovery accelerating in recent years, unemployment continued its downward trend, approaching its prerecessionary levels. As more consumers find work and earn a steady paycheck, many are purchasing ATVs, snowmobiles, personal watercrafts and other recreational vehicles. Over the next five years, downstream demand is expected to increase as the economy continues to recover and consumers increase spending. The industry's ultimate success depends on how well manufacturers keep up with consumer preferences.
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Industry Report - Industry Investment Chapter
The ATV, Golf Cart and Snowmobile Manufacturing industry is moderately capital intensive. For every $1.00 spent on labor, the average industry operator will invests about $0.17 in capital equipment. Conversely, average industry wages have increased at an annualized rate of 4.2% over the past five years due to increases in production capacity and the need for qualified personnel to operate machines and test products.
Although new capital technologies were introduced in recent years, skilled laborers are still required to manufacture goods, operate machinery and design new products. As the industry continues to advance technologically, capital costs are anticipated to increase as more specialized machinery and equipment will be required... purchase to read more