As we move into the dog days of summer, my thoughts drift to a sandy beach or a mountain trail complete with a jet ski or 4×4 utility vehicle. However, I don’t think this is going to be the year of the big getaway. Our powersports and marine industry have a lot of challenges on their hands this summer. Ongoing price concerns and lingering inflation coupled with a heightened political climate have created challenges that cause a negative overhang for both consumers and dealerships.
According to composite data from 1,700 dealers who use the Lightspeed DMS, the average dealer was down 8.4 percent in combined revenue in May 2024 as compared to 2023. This decline is especially concerning, considering we are well into the typically busy recreation season. Data from the Conference Board reflected consumer confidence continues to weaken with persistent concerns about inflation, prompting buyers to hold off on purchasing homes and autos.
But there are some bright spots on the horizon. The Committee for Economic Development, which oversees the Conference Board, shared their predictions for 2024, indicating that consumer sentiment has changed since the pandemic. Buyers are increasingly upset by uncertainty, prompting them to seek out experiences and spend on things they really enjoy. This is especially true for younger generations.