|
By: Jason Giacchino
Email: offthepegs @ atvsource.com
April 2009 - Off The Pegs
The Realities of
Economic Downturns
If you think about it, the ATV business (like
most other mechanical industries) has been hit
not once but twice with crushing blows this past
year. Last year at this time the big talk was
oil prices with gasoline hovering near the $4
per gallon mark at the pumps. Perhaps not
affected quite as drastically as our
automotive-industry cousins on that one, we’re
certainly feeling the pinch in this, the second
round of economic disaster. Already being touted
as the most dismal financial crisis since the
Great Depression itself, there is little doubt
in anyone’s mind that things have a long way to
go to recover to the type of sales ATV dealers
have been enjoying up until recently.
It’s rather unfortunate that the economy had to
go and tank on us just as things were shaping up
in the sport ATV segment. After decades of
hoping and wishing for full OEM involvement in
the ATV racing scene, things finally started
happening at the early part of the new century.
Since then the growth of this concept, as has
always been the case with the ATV biz, has been
nothing shy of phenomenal. With seven legitimate
450cc entries to choose from this year and more
factory support than even thought imaginable
just a few seasons back, we can only hope that
the economic downturn doesn’t put the kybosh on
this recent expansion.
According to many of the dealers I’ve been in
contact with, the trend has most greatly
affected sales of new units. More and more
enthusiasts are choosing to extract additional
mileage from their current quads rather than
upgrade to brand new. Demand for used machines
has also been on the rise, which is especially
tough considering the lack of trade-ins on new
models. Many dealers report this year as being
the first real slump encountered since the ATC
went the way of the dodo and the term “ATV”
became synonymous with four wheels.
This is especially disappointing when merely a
decade or so ago ATV sales were credited as the
factor keeping many motorcycle dealerships
afloat when demand for two-wheelers started to
fizzle out. It just goes to show how for as many
ways as we’ve been advancing in recent years,
we’re still moving backward in others.
The lion’s share of the media of late has turned
to focus on the struggling domestic automotive
industry (thanks in no small part to bailout
money being fronted by us lowly taxpayers). Much
like the auto industry, it’s not just the
domestic ATV manufacturers who are struggling
either as the global economy is heavily
influenced by trade with the US. While you may
not hear much about the ATV manufacturers on the
nightly news, it goes without saying that they
are currently experiencing many of the fears and
setbacks that the highly publicized auto
industry is facing.
Like you presumably, I’m for doing all we can to
ensure that the market place stays fertile.
Economic stimulus packages rarely delve to
include benefits that cater toward power sports
or recreational industries. Rather, each of us
has the obligation of delegating some of our
funds on this, our sport, our hobby, and our
love. And to conclude the ripple effect of how
supporting our sport comes back around to
benefit us all, keep in mind that since January
of 2006, Polaris Industries has granted over
$700,000 to state, local, and national ATV clubs
through their TRAILS program (Trail development,
Responsible riding, Access, Initiatives,
Lobbying, and Safety). In addition they’ve used
their influence (and budget) to assist 78
nonprofit ATV organizations in 42 states in
trail development, reconstruction, improvement,
and governmental lobbying.
In 2008 Yamaha issued close to $800,000 in
grants through their own OHV Initiative program.
Calling theirs GRANT (Guaranteeing Responsible
Access to our Nation’s Trails), Yamaha accepts
applications from clubs, associations, and even
government agencies each quarter. Like Polaris,
it then allocates funds to such worthy causes as
trail development and restoration, maintenance
and minimal environmental impact planning, trail
labeling/ signage, map production, and rider
safety and education.
The bottom line is that our sport’s contributors
do much more than simply design and build the
machines we enjoy. Without their assistance, it
is troubling to even imagine how many land areas
would be closed to OHV use throughout the
nation.
|
