UTV Efficiencies In Landscaping

A recent article highlighted the efficiencies of UTVs in a landscaping environment. ??Valley Crest Landscape Company owns a fleet of seven UTVs from John Deere, Club Car and Kubota. ??While they expected savings from initial lower??capital??costs when switching from pick-ups to UTVs ($6 – 7,000 vs $20,000 for a pickup), they found significant savings in work efficiencies as well. ??These efficiencies are similar to what we have heard from other users and in other market segments. ??Some examples provided by the company’s VP of Operations include:

  • Access to tighter spaces to bring tools and accessories e.g. sprayers right to the location to avoid running hoses
  • Being able to travel more directly and quickly around a work site.
  • Faster time to get in and out of vehicles which adds up in a large operation
  • Versatility so the UTV is used for more tasks and more hours rather than a speciality vehicle that would only get occasional use

The company calculated the time savings of using two UTVs in place of one pickup truck at a large commercial site and found they were saving 25% in time from reduced walking and other efficiencies. ??This has allowed them to significantly lower cost projections and bids. ??Learn more: ??Lawnandlandscape.com

Yamaha Golf Car Sales Increase in the US

Financial reports for the??Yamaha Motor Co., Ltd. for the first nine months of fiscal year 2012 indicate an increase in golf car sales in the US market. While Yamaha overall reported decreases in revenue and income the US market represented an area of strength across a number of their segments including motorcycles, marine and power products. ??In the latter, stronger golf car sales offset a decrease in ATV sales. ??Learn more: Powersportsbusiness.com

What’s Cooking on the STOV

Highlighting some of the many applications for small, task-oriented vehicles:  Park Maintenance & Emergency Response – Barkcamp State Park in Ohio recently acquired a Polaris UTV for use in the park.  The vehicle will primarily be used for park maintenance, trail upkeep and emergency response.  The park features hiking, equestrian and snowmobile trails for public use.  Funds for the vehicle were provided by the organizers of the Barkcamp Race, a running race and challenge walk event.   Learn more:  Timesleader.

Comment:  This continues to be a strong market segment for UTVs and STOVs in general. Vehicle purchases are often funded by grants or donations from local organizations.  However, even if funded by the organizations themselves, STOVs also represent an opportunity for parks to cut costs by replacing pickup trucks with STOVs which are less costly to purchase, cheaper to maintain and have features and functionality that better suit the jobs to be done.

Arctic Cat Announces 4-Seat Wildcat

Arctic Cat Wildcat 4 1000

Arctic Cat will launch the four seat Wildcat 4 1000 early next year.

Arctic Cat will be launching a 4-seat Wildcat 4 1000 in February 2013. ??The new model will include a new clutching system from Team Industries and have a MSRP of $19,599. ??Other changes include a new sway bar paired with PODIUM FOX SHOX and a 29 inch longer frame to accomodate the additional passengers. ??Additional key features include a 951cc engine, EPS and three metallic paint options: ??Sunset Orange, Black and Arctic Green. ??Learn more: ??Arcticcat.com

Registration Data Shows Continued Polaris UTV Growth

Comments from??BMO Capital Markets analyst Gerrick Johnson and Polk registration data for UTVs indicate a strong September for the UTV market and Polaris outperforming the market. ??The data shows UTV registrations increased 19.1% for the industry and 21.6% for Polaris. ??(The story does not specify but it is assumed that comparisons are for the same time periods from the prior year.) Dealer interviews point to a strong showing for Polaris’s??Ranger XP 900 and the Ranger 800 mid-size UTVs. ??The analyst predicts 18% growth for the company’s ATV and UTV sales in the 4Q, which translates into growth of over 20% for the UTV segment based on recent sales patterns. ??Growth is being driven by replacement demand, new riders and share starting to being taken from Jeeps, pick-ups and SUVs. ??It is unclear from the article if the latter is specifically??referring??to the recreational end of the UTV market or from ??the market in general. ??If it is the general market, this is not a new trend, as municipalities, universities and the like have been replacing pickups with UTVs and other STOVs for a number of years. ??We believe this is one of the reasons why UTVs continued to have strong growth despite the recession. ??For both fiscal reasons and to meet ‘green’ or sustainability goals institutions have been replacing pick-ups with gas or electric powered UTVs and other STOVs. ??Learn more: ??Powersportsbusiness.com

Road Use Regulations Roundup – November, 2012

Some trends in this latest regulation roundup:

  • The few remaining states without LSV laws have enacted laws allowing the vehicles or are moving in that direction.
  • A majority of the local municipalities noted below are passing ordinances that allow both LSVs and golf cars to be used on public roads.
  • There appears to be less concerns being raised about safety issues of the vehicles in mixed traffic.
  • More municipalities are passing ordinances that allow UTVs and/or ATVs on public roads but in some areas there are some restrictions.
  • Municipalities across a number of states are passing ordinances with the highest activity in Florida, followed by Nebraska, whose state law just went into effect this year.

State Level Regulations

Nebraska – Nebraska’s state law allowing LSVs on streets with a posted speed limit of less than 35 mph went into effect at the beginning of 2012. The law requires drivers to carry liability insurance coverage, hold a valid operator’s license and register.

West Virginia – A State Senate bill was moving through the legislature again to allow LSVs on roads with speed limits of 35 mph or less.

Mississippi – State lawmakers are debating a law to allow LSVs on public roads.

New York – The State Senate passed two bills aimed at making it easier for drivers to register UTVs and for farmers to use ATVs on public roads for agricultural purposes.

Vermont & New Hampshire – The states passed legislation that allows properly registered ATVs in one state to use the authorized state ATV trails in the other state.  The legislation does not apply to UTVs.

Municipality Level Regulations

Tradition, FL – Residents are discussing allowing both LSVs and golf cars on public roads.  Some residents are concerned about the safety of mixing lower speed vehicles with regular traffic and that golf cars do not have the same safety features as LSVs.  Others see the vehicles a way to lessen traffic, reduce gas emissions and allow for older residents to get around independently. The lower costs of insuring golf cars is seen as more manageable for fixed income seniors.

DeFuniak Springs, FL – The city is considering allowing LSVs and golf cars on certain public roads.  One reason is to make the community more retirement friendly.

Holtville, CA – A new sub-committee was formed to work on an ordinance that would approve the use of electric vehicles and golf carts on city streets

Clearwater, FL – The city passed an ordinance to regulate LSVs/golf cars and other alternative transportation vehicles for higher. “The regulations would require business owners to register with the city, carry a minimum of $500,000 insurance, and show a mechanic’s certification that their vehicles are in safe condition. Aside from costs to meet those requirements, business owners also will be looking at paying a $75 application fee and $50 permit fee for each driver of the for hire vehicles.”

Vernon, British Columbia – The town council will consider an ordinance that allows LSVs on public roads.

Rockport, TX – The city passed an ordinance allowing golf cars and LSVs to be used on streets with speed limites of 35 mph or less.

Bristol. TN – The city Council rejected an ordinance that would have restricted LSVs to roads with speed limits of 25 mph or less compared to the current 35 mph or less.

Herington, KS – City officials passed an ordinance that allows golf cars and similar on-road utility vehicles to use public roads during daylight hours.

Enon, OH – Legislation is moving forward that would allow golf cars and UTVs, referred to as under-speed vehicles by the city, to use city streets with speed limites of 35 mph or less.

Crothersville, IN – A City Councilman introduced a bill that would allow ATVs and UTVs to operate on city streets.  The law is modeled on the city’s current ordinance that allows golf cars on city streets.

Waterloo, IA – The city council is considering an ordinance that will restrict the use of UTVs on city streets to essentially work and police related activities.
China Grove, SC – The city expanded their existing LSV ordinance to include UTVs as slow-moving vehicles.
Fremont, NE – The City Council is considering an ordinance that would allow UTVs to be used on city streets. There are some equipment and insurance requirements and the vehicles could only be used during the day.
Weeping Water, NE – The city passed an ordinance to allow UTVs on public roads. Some residents are pushing to include golf cars adn ATVs as well.

Honda Moves UTV Production To South Carolina

I’ve seen a number of stories in the past year from various industries about companies moving production back to the US.  Usually they are moving back from China but in this case Honda is moving their UTV production from Mexico to South Carolina.  The Timmonsville, SC location is expected to be ready for UTV production in the summer of 2013.  The Honda Big Red UTVs will be for the US and global export markets.  Currently the facility is dedicated to ATV production but the UTV market has outpaced and surpassed the ATV market in recent years.  The Mexico facility will produce two-wheeled products for the Mexican market.  Learn more:  Roadracingworld.com

Polaris Displays New Technology for Military Vehicles

Polaris Non-Pneumatic Tire

Polaris Non-Pneumatic Tire

Advanced Armor

Advanced armor from Polaris and M9 Defense

Polaris Industries displayed new survivability technology for military vehicles at the AUSA (Association of the US Army) 2012 Annual Meeting & Exposition last week.  On display was their new advanced armor technology and non-pneumatic tires.  The technologies are an extension of the companies strategic push into the military segment that they have executed in recent years.

The advanced armor was developed in partnership with M9 Defense and is

…lowest pounds per square foot of any armor available in today???s market. The steel-hybrid composite armor, in conjunction with a high-speed production process, allows the Polaris/M9 team to form this cutting-edge armor into capsules and other ballistic vehicle components at speeds comparable to that of sheet metal processing, greatly reducing the overall cost.

Shown on a lightweight, tactical vehicle, the product is potentially applicable to a wide-range of combat vehicles.

The non-pneumatic tires are based on technology from Resilient Technologies(tm), which had been previously acquired by Polaris.  “The NPT is composed of a central polymeric web surrounded by a rubber tread band which allows continuous operation, even if up to 30 percent of the web is damaged.”  Together the technologies are designed to increase the survivability and life of tactical vehicles.  Learn more:  Polaris Industries

Comment:  It will be interesting to see how fast the non-pneumatic technology is incorporated into non-military applications.  You could potentially see it being applied in specialized or extreme work or recreational riding applications.  I also think this is another example of how the quality of the company’s management team is driving their growth.  While vehicle related, the armor technology could potentially open a new product market for them, building on the relationships they are establishing in the military segment.  The tire technology is an example of how their foray into the military segment could produce differentiating technologies for their non-military vehicles.

DOD Plug-in Purchases May Hurt LSV Market

The Department of Defense has announced plans to purchase approximately 1,500 plug-in vehicles, mostly Chevy Volts over the next few years. ??This could potentially hurt the LSV market. ??The DOD has made it a priority to reduce petroleum consumption and one approach is to replace passenger vehicles used on bases and in other areas with alternative fuel vehicles. ??Starting in 2007 and 2008, primarily with the US Army, LSVs were tested and then purchased in large quantities. ??At the time, all the military branches were drawing up plans to purchase LSVs. ??In total, these purchases would number several thousand per year.

However, government data on Federal fleets indicates that these large volume purchases did not materialize as expected. ??While a number of factors could have impacted LSV sales including budgetary and performance issues, the advent of other electric vehicle alternatives such as the Volt may have played a role as well and might do so in the future. ??Although considerably more expensive than LSVs, the Volt does offer highway capability, more versatility and overall greater vehicle??performance. ??Until the comparative cost versus performance trade-offs can be evaluated over the next few years the long-term impact on the LSV market won’t be known but in the short-term there will likely be fewer LSV sales in this market sub-segment. ??Learn more: ??Insideevs.com

Polaris Posts Record 3Q Results

Polaris Industries continues to charge ahead with another quarter of record results. ??For the 3Q 2012 the company reported net income increased 39% to $94.3 million and sales grew 21% to $879.9 million. ??North American retail unit sales climbed more than 10% on strong contributions from side-by-sides and??motorcycles. ??Management reports??market share gains in their Ranger and RZR side-by-sides as their Off-road division grew sales 18% in the quarter and 22% for the first 9 months of the year compared to 2011. ??Full year sales are expected to be up 19% to 20% from 2011. ??Learn more: ??Dailyfinance.com