In three short weeks, 2021 has proven to be as unpredictable as 2020. However, opportunities still abound. While vaccine doses are making their way across the country, COVID-19 cases are hitting all-time highs. Congress passed a last-minute stimulus package that some believed fell far short of the need, while others welcomed the opportunity to apply for new loans. So what’s in store for the powersports industry? Likely much of the same, plus some new things to address.
Let’s start with the new stimulus package. In 2020, the powersports industry saw record sales of dual and off road units and notable revenue generation covering the past two years of declines. While anecdotal, many dealers attribute the spring stimulus coupled with stay-at-home orders with the spike in sales. The same scenario could play out with the latest stimulus package, and any others that might follow in the first quarter.
However, there are some headwinds which could put a damper on sales. Data from the Bureau of Labor statistics saw 140,000 jobs lost in December, reflecting the first time job growth has shown a reversal since April. The lingering economic effects of the pandemic have also widened the wealth gap. Americans facing wage challenges and potential housing evictions have depleted any savings they may have accumulated earlier in the year, making a bike purchase out of the question, while families in more secure financial positions may be looking for that off road purchase to fill the time.