Dave Vang, finance professor at the University of St. Thomas Opus College of Business, recently spoke with KSTP-TV about how younger generations, technology, and government regulations are changing interest in powersports, impacting the industry.
From the story:
Host: For many Minnesotans, if they’re not slicing through fresh powder on a sled or cruising the shoreline on a boat, they feel like they’re not living. But powersports industry leaders say trends are taking a turn, and the impacts are starting to be felt. Addressed to their valued dealers, Minnesota-based Arctic Cat outlined layoffs and a pause in snowmobile production at their Thief River Falls facility. About 65 employees are being cut, adding, “While tough, it’s happening because of current conditions in our industry.” ... Another Minnesota-based snowmobile maker, Polaris, just posted a more than 80% decrease in third-quarter earnings compared to last year.
Vang: There are short-term effects, and there are long-term effect factors going on.
Host: University of St. Thomas Finance Professor David Vang claims inflation and high interest rates, but that’s just part of the story.
Vang: One of them is demographics.
Host: Simply put, he says younger generations aren’t as interested, adding that government regulations, leading to fewer places to ride these machines, and technology are also playing a role.
Vang: The revolutions in being able to see the world through your phone outweigh the sense of freedom you have by riding a motorsport type of activity.
