Industry Analysis & Industry Trends
The Motorcycle, Bikes and Parts Manufacturing industry has struggled in the five years to 2016. Because the bulk of industry revenue is derived from motorcycle sales, the industry relies primarily on demand from baby-boomer males, a demographic that is reaching retirement age. As a result of lifestyle changes, this consumer group's demand for motorcycles has diminished, precipitating weak sales over the past five years. Industry manufacturers will likely invest heavily in targeting new customer groups, such as women and millennials, over the next five years. However, the global motorcycle industry will remain highly competitive, with rising East Asian competitors joining the ranks of dominant international operators... purchase to read more
Industry Report - Industry Investment Chapter
The Motorcycle, Bike and Parts Manufacturing industry exhibits low to moderate levels of capital intensity. For every dollar spent on wages, the average industry company will invest $0.15 in capital. Depreciation has increased over the past five years. In response to rising import competition, industry operators have focused their capital investments on new technologies and achieving greater cost efficiencies.
Capital intensity varies according to the scale of the operation. Many of the smaller operators in this industry rely more heavily on labour, such as family-owned businesses, in which financial limitations can inhibit capital investment capacity... purchase to read more