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Motorcycle ManufacturingPublished by: First Research, Inc. Published: Sep. 29, 2008 - 10 Pages Table of Contents
AbstractUS motorcycle manufacturers include about 60 companies with combined annual revenue of about $6 billion. The industry is highly concentrated. Harley-Davidson dominates the US manufacturing sector. The remainder are foreign-based companies with final assembly operations in the US, parts and accessories manufacturers, or custom builders who make built-to-order products for motorcycle enthusiasts.COMPETITIVE LANDSCAPE Personal income and interest rates drive demand. Motorcycles are considered discretionary items in the US since few are used as a primary means of transportation. About one-fourth of motorcycle purchases are financed. The profitability of individual companies depends on volume and sales of high-margin accessories and add-ons. Small manufacturers compete by offering highly customized products. Annual sales per employee averages about $400,000. PRODUCTS, OPERATIONS & TECHNOLOGY Major products include touring and cruiser motorcycles designed for comfort and long distance rides (67 percent of industry revenue); off-road cycles designed for dirt and mountain terrain (25 percent); dual sport designed for both road and off-road usage (3 percent); and scooters (5 percent). Motorcycle engines are measured in cubic centimeters (cc) and range from 50cc to 2300cc. Heavyweight bikes have engines with 650cc or greater. Motorcycles are typically produced on assembly lines, similar to how the auto industry makes cars. Parts are received from outside sources (either third-party companies or other corporate-owned plants), usually on a just-in-time basis. Beginning with the basic steel or aluminum frame, the product proceeds from station to station ... Get Full Details About This Report >> |
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