Looking Forward 2010–2015

Here are some industry statistics to consider in moving forward and business planning:

The motorcycle and parts industry growth declined by an annual average of 8.6% between 2005 and 2010. It is expected to grow by an annual average of 2.5% between 2010 and 2015.

The average age of a Harley-Davidson rider has risen from 38 to 46 in the past decade. This is good news considering the fact that older Americans typically have higher disposable incomes.

High fuel prices are expected during the next decade, which means higher demand for motorcycles and scooters in search of fuel efficiency.

The motorcycle dealership and repair industry growth declined by an annual average of 5.3% between 2005 and 2010. It is expected to grow by an annual average of 4.2% between 2010 and 2015.

In 2010, motorcycle dealerships are expected to generate 5.4% of revenue from parts and repairs.

After four difficult years, demand for motorcycle dealers is expected to rebound in 2011. Key factors expected to influence industry growth over the next five years are disposable income levels (per capita disposable income is expected to increase by 0.6% in 2011 and 1.2% in 2012), credit availability, gasoline prices, and leisure time availability (riders are aging and retiring).

The motorcycle dealership and repair industry is in a mature life cycle stage and is expected to lose approximately 2.9% of current companies.

California (10.7%), Florida (6.2%) and Texas (6.1%) have the largest number of motorcycle dealerships and repair shops.

Internet advertising sales increased 11.3% in the first half of 2010.

SOURCES: IBISWord.com, Interactive Advertising Bureau and MarketWatch, Inc.