Issue link: https://read.dmtmag.com/i/752766
PSB FOCUS 12 • November 28, 2016 • Powersports Business www.PowersportsBusiness.com This issue: Made in the USA Next issue: Auction/Pre-owned INSIDE FOCUS Barnett Clutches & Cables have been made in California for more than 65 years. The name may be British Customs, but the parts are made in the USA. See Page 15 See Page 13 Justin Provost, Spectro's blender, puts oil into a viscometer, a machine used to test the viscosity of oils. Production line foreman Juan Pena sets up the printer that prints quality assurance codes on Spectro's bottles. Spectro blends, packages and ships all of its oil from its factory in Brookfield, Connecticut. IN CONNECTICUT Twenty employees in Brookfield, Conn., bring Spectro oils to market See Page 14 BLENDED w w w . p o w e r s p o r t s b u s i n e s s . c o m NEWS: Dealership salesman retires . . . . . . . . . . . . . PAGE 6 ATV/UTV: New XP1K4 video in production . . . . . . . . PAGE 20 PWC: Yamaha sees record sales . . . . . . . . . . . . PAGE 26 AFTERMARKET: Twin Air extends partnership . . . . . . . . . . . PAGE 28 Yamaha Motor Finance Corp., USA, (YMFUS) announced it has launched an all-new credit card program that was available through all Yamaha dealers starting Nov. 1. This important Yamaha-exclusive consumer financing tool is replacing an outgoing program that had been managed by various banks over the last 20 years. "Yamaha will maintain the key fea- tures our dealers and customers value, while providing the program directly through our captive finance com- pany," said Kim Ruiz, vice-president of Yamaha Motor Corp., USA (YMUS) and president and CEO of YMFUS. "The new credit card moves Yamaha closer to our dealers and customers, INSPIRING SUCCESS THROUGH MARKET INTELLIGENCE Light it up Koso North America launches V-twin line, including reverse LCD instruments to gain consumer interest. SEE PAGE 28 HOTNEWS All-American Barnett Clutches & Cables has been made in the U.S. for 68 years. SEE PAGE 13 Mini Monsters Monster Moto has begun assembling mini bikes and go-karts out of its Louisiana facility. SEE PAGE 23 Powersports DEALER Seminars participation grows In mid-October, the fourth annual American International Motorcycle Expo (AIMExpo) bid farewell to its founding host city of Orlando, Flor- ida, capping off a memorable tenure inside the Orange County Convention Center (OCCC) that included a record number of consumer attendees. North America's premier powersports trade show welcomed a combined 18,399 total attendees over the course of the four-day affair, highlighted by 12,029 consumer enthu- siasts who filled the aisles and booths of the 451 exhibiting companies and numerous show features over the weekend. With global and North American debuts from OEM participants Honda, KTM, Suzuki and Yamaha, combined with introductions from a wide array of gear and aftermarket companies, there was plenty to see and do at AIMExpo 2016, both indoors and out. In addition to the lat- est motorcycles, a wide variety of powersports machines including Sea-Doo and Yamaha water- craft, Ski-Doo snowmobiles and Yamaha boats greeted indoor visitors, while the latest two-, three- and four-wheeled vehicles from BMW, BRP, Can-Am, KYMCO, Suzuki and Yamaha were up for demo rides at AIMExpo Outdoors! Given the numerous offerings, consumer atten- dance grew 7.4 percent from the previous year. AIMExpo 2016 experienced the effects of Mother Nature just prior to the start of the event when Hurricane Matthew traveled up the south- eastern coast, leaving destruction in its wake. While Central Florida was fortunate enough to avoid direct impact from the historic storm, many registered exhibitors, dealers, media and interna- tional visitors were adversely affected by Matthew and were unable to attend. Even with the weather-related challenges, 2,459 dealer attendees were on hand over the four days of AIMExpo 2016, representing 1,116 dealerships from 49 states and Puerto Rico. In addition to visits conducted during trade-only days, a large number of dealers visited the show over the weekend, including approximately 400 retailers picking up dealer/buyer cre- dentials during the event's consumer days. Attendance by dealers taking advantage of the complementary Powersports DEALER Semi- nars @ AIMExpo filled 1,087 seats, earning See AIMExpo, Page 7 Majority of those surveyed were below plan BY KATE SWANSON ASSISTANT EDITOR The third quarter of 2016 found dealers working harder than before to maintain last year's num- bers. According to a Powersports Business/BMO Capital Markets Q3 dealer survey, the majority of dealers were below plan. Of the 125 dealers surveyed from 41 U.S. states and five Canadian provinces, 52 percent marked below plan, and 34 percent said they were on plan. Only 14 per- cent of those dealers surveyed found themselves above plan in Q3. Overall, 42 percent of dealers thought that business conditions in the industry were aver- age, while 24 percent felt it was poor. The 2016 election climate, decreased customer interest and weather were among the top three external fac- tors that dealers said contributed to their dealer- ship's below-plan performance. "From the start, our oil and gas industry took a plunge last year, which has kind of started the year off at a decrease, which has continued into Q3," said Kip Niles, owner of Arlington Motors- ports in Arlington, Texas. "It has since stabilized, but the numbers still aren't coming back. As we approach this election, we're guessing that's what's causing that." Niles explained that although the weather ini- tially posed a challenge to business, it seems that the political climate has influenced customers' want to buy. In fact, 76 percent of the dealers sur- veyed said that they were most concerned about the U.S. political environment, up 3 percent from last quarter. Also, and additional 30 percent were worried about economic or political issues out- side of the U.S. Evan Bell, owner of Irv Seaver Motorcycles in Orange, California, also believes politics has had a hand in consumer demand: "Mostly I think the political environment has got our customers holding off on doing anything. We're just not getting as many people walking through the door that are interested in buying motorcycles at this point," he added. Despite the concerns that Q3 has placed on dealers' minds, many dealers are looking PSB: FOCUS Made in the USA SEE PAGE 12 Q3 gives dealerships a tough time See Hot News, Page 3 November 28, 2016 • Volume 19, Number 15 • $3.99 More than 2,400 dealers attend AIMExpo See Q3 Survey, Page 4 Yamaha Motor Finance launches new credit card program HOW WOULD YOU CHARACTERIZE YOUR CALENDAR Q3 (JULY-SEPT.) BUSINESS PERFORMANCE RELATIVE TO PLAN? Significantly better 3% Somewhat better 12% About the same 46% Somewhat worse 32% Significantly worse 7% Above plan 14% On plan 34% Below plan 52% IN GENERAL, TO WHAT EXTENT HAS YOUR BUSINESS OUTLOOK CHANGED COMPARED TO 6 MONTHS AGO? Source: Powersports Business/BMO Captial Markets Q3 2016 dealer survey Q3 2016 POWERSPORTS BUSINESS/BMO CAPITAL MARKETS DEALER SURVEY