In the US, like in most countries, the revenue of motorcycle/ATV/snowmobile manufacturers is closely related with the riding season. As this chart demonstrates revenue of the 2 US manufacturers surge at different seasons. Harley-Davidson revenues shoot up in spring and summer. But because Polaris produces off-road vehicles and snowmobiles in addition to heavyweight motorcycles, the company posts its highest revenue during the winter. To better adjust to these sales fluctuations, both companies abandoned the old method that has consisted in shipping in advance vehicles to dealers to build up inventories. Instead, the new strategy is to be able on a short notice to increase production just before and during peak sales months.
Called flexible production, surge production, or lean manufacturing, the new method implies relying on having a more flexible workforce able on a short notice to match model production to customers’ demands and customization preferences. As the Victory and Indian brands become more popular, it can be expected that Polaris revenue growth during spring and summer is going to increase, helping the company to reduce the seasonality of its overall sales and revenue.