Issue link: https://read.dmtmag.com/i/711372
www.PowersportsBusiness.com PWC showed the best strength relative to plan, but even this performance was somewhat disappointing, Johnson added. About 47 per- cent of dealers said their PWC business was on plan, but 33 percent said it was below and only 20 percent said it was better than plan. Over the next 12 months, 57 percent of dealers expect to see an increase in side-by- side sales, and 44 percent predict ATV sales to decline. "Despite a weak-ish quarter, with sales disappointing relative to plan, dealers are still slightly more optimistic about sales over the next 12 months," said Johnson. Overall, business outlook remains optimis- tic, with 38 percent of dealers foreseeing sales growth, compared to 24 percent who believe sales will decline. The following are a selection of anonymous comments left by dealers about their quarterly performance: "Our local economy is down due to the price of natural gas." "I see a brighter future ahead, as the econ- omy continues to grow." "Biggest problem in our area is loss of good paying jobs. Energy — coal and natural gas — has decreased employment levels by over 60 percent." "Lower-priced vehicles seem to be the way to go." "Our business has dropped considerably compared to Q2 last year. Cool weather and local economic uncertainty coupled with elec- tion year uncertainty seems to have snapped wallets shut." "Floor traffic has been like a rollercoaster ride." "I feel the market has become somewhat saturated, as well as stagnant. Advertising is at such a high cost, and the competiveness of activities makes for such a broad spectrum and is difficult to focus on." "Overall business is not bad, just need some adjustments from OEMs to the market." PSB DEALER SURVEY CONTINUED FROM PAGE 6 28% 4% 6% 2% 16% 11% 44% 8% 19% 20% 47% 42% 24% 49% 61% 64% 27% 39% 2% 28% 9% 10% 6% 6% 2% 11% 5% 4% 4% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% U.S. political environment High/rising gasoline prices Financing costs/ availability Housing market Economic and/ or political issues outside of the U.S. Employment outlook Significantly less concerned Somewhat less concerned About the same Somewhat more concerned Significantly more concerned TO WHAT EXTENT HAVE YOUR CONCERNS ABOUT THE FOLLOWING EXTERNAL RISK FACTORS CHANGED OVER THE PAST FEW MONTHS? WHERE APPLICABLE, PLEASE PROVIDE YOUR YEAR-OVER-YEAR SALES GROWTH (NEW PRODUCTS ONLY, MEASURED IN UNITS) FOR Q2 (APRIL-JUNE) OF 2016. Source: Powersports Business/BMO Capital Markets Q2 2016 dealer survey 6% 7% 2% 15% 5% 3% 7% 1% 7% 5% 12% 9% 5% 4% 13% 5% 12% 9% 17% 9% 10% 7% 18% 8% 21% 9% 17% 36% 31% 30% 38% 49% 31% 31% 12% 19% 11% 12% 8% 12% 7% 4% 9% 7% 17% 15% 9% 3% 4% 6% 8% 14% 14% 5% 3% 5% 16% 6% 7% 9% 11% 8% 20% 10% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Side-by-Sides ATVs Heavyweight Motorcycles Sport bikes Off-road bikes Scooters PWC Snowmobiles -30% or worse -20% -10% -5% Flat +5% +10% +20% +30% or better WINNING DEALERS The following dealerships that completed the Q2 Powersports Business/BMO Capital Markets Dealer Survey each were selected at random to win a $100 Visa gift card. Bangor Motorsports, Bangor, ME St. Paul Harley-Davidson, St. Paul, MN Webb Powersports, Ellensburg, WA Golden Spike Polaris, Tremonton, UT Wilkins Harley-Davidson, Barre, VT All dealers who complete the survey receive analy- sis of the survey results from BMO analyst Gerrick Johnson. The Q2 survey analysis is 12 pages. All dealers who complete the survey are eligible to win one of the five $100 gift cards. Want to participate in the Q3 survey? Send an email to dmcmahon@powersportsbusiness.com