Personal Watercraft Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
Industry revenue dropped during the recession and is still low; over the next five years continued disposable income growth will bring revenue back to its prerecession level. For these reasons, industry research firm IBISWorld has added a report on the Personal Watercraft Manufacturing industry to its growing industry report collection.
Los Angeles, CA (PRWEB) May 10, 2013
Trends in consumer preferences and discretionary incomes directly influence the financial performance of the Personal Watercraft Manufacturing industry. “The $380.3-million industry is strongest when customers have high disposable incomes and confidence in the economy,” says IBISWorld industry analyst Dale Schmidt. As such, the industry struggled during the recession as demand for all of its products plummeted. Cash-poor consumers deferred leisure and recreational spending, stifling sales of all industry products. Despite steady improvement since the end of the recession and expected growth of 4.4% in 2013, industry revenue is anticipated to fall at an average rate of 3.5% per year over the five years to 2013.
Domestic operators must compete with significant import penetration. Namely, Kawasaki, manufacturers of the Jet Ski brand — popular enough to have become synonymous with personal watercraft in general — does not manufacture in the United States at all. According to Schmidt, “Imports are expected to grow an average of 0.9% annually in the 10 years to 2018, buoyed by the slowly appreciating dollar, which makes foreign goods easier for US consumers to purchase.” Conversely, exports do not play a significant role in the industry, and account for less than 2.0% of total revenue. Oil price spikes also play a major role in demand for industry goods. When the price of oil rises, the operating cost of personal watercraft rises, which constricts demand for new watercraft. Rising oil prices have driven the bulk of innovation in the industry though, as operators have released increasingly fuel-efficient personal watercraft in an effort to minimize the effect of fuel costs.
Concentration in the Personal Watercraft Manufacturing industry is high. In 2013, the two largest operators account for an estimated 73.4% of industry revenue. Market share has increased over the past five years because a number of companies exited the industry during the recession. Additionally, larger companies are looking to expand their footprint in favorable areas, where they can add value and turn once-struggling operations into profitable ventures. Smaller personal watercraft manufacturers operate locally and provide services to a small segment of the population.
Industry revenue will experience moderate growth over the five years to 2018, driven mainly by the steady increase in per capita disposable income. However, recovering disposable income will come at the cost of lower consumer leisure time as consumers return to work, reducing available time for personal watercraft use. As a result, industry revenue will not surpass the 2008 high until 2018.
For more information, visit IBISWorld´s Personal Watercraft Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures personal recreational watercraft that riders can ride or stand on.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/5/prweb10723586.htm