Categories
Business Growth

Looking Forward to Success in 2021

I’ve never been one to dwell on the past but this year demands some reflection as we prepare for success in the upcoming year. While we as a country have endured some tremendous challenges, there also have been many notable events that have given me hope for the future.

As I write this, the first doses of the COVID-19 vaccine are making their way across the country to our well-deserving front line healthcare workers. The presidential election is now behind us and we can move forward – hopefully with a stimulus package to ease the burden shouldered by individuals and small business owners. The Federal Reserve has indicated that interest rates will remain at or near zero at least into 2023. And while we have all been forced to pivot in our ways of doing business, business has continued for the most part. These positive data points tell me that there is much to look forward to as we approach 2021.

Many aspects of the powersports industry experienced a tremendous year in terms of sales, revenue, and overall success metrics. Although fourth quarter data will not be available until the end of January, early indications reflect another strong quarter. According to CDK Lightspeed DMS, new and used unit revenue growth in October clocked in at 33.2 percent. Service has also seen an uptick as riders pull those older bikes out of the garage for a trip down the road. According to Jeremy Jansen, Head of Motorsports at Wells Fargo Commercial Distribution Finance, “North American powersports retail has seen unprecedented activity…resulting in the collective industry entering 2021 with a strong tailwind.”

Categories
Compliance Powersports Market

Don’t Skip Steps

While the country is still in the grips of the pandemic, sales of powersports vehicles, led by ATVs and other recreational units, have been going gangbusters. In May, the average major unit sales were up 60.7 percent and overall revenue increased 51.2 percent.

Going into the third quarter, inventory constraints could put a significant damper on sales gains. Polaris and other companies were forced to close manufacturing facilities due to COVID-19 outbreaks. Analysts from BMO Capital Markets report that inventory shortages across all brands could impact sales for the remainder of the year. However, with more consumers entering the market, and more units being financed, the overall forecast for sales remains cautiously optimistic.

With many powersports dealers surpassing sales records throughout the summer, one could surmise it is Christmas in July, except for one small data point. Identity fraud has reared its ugly head. While fraud has always been an area of focus in the powersports world, a couple of unique pandemic situations have exacerbated the situation.