Looking Ahead

Apr 21, 2014
Initial reports from around the country seem to indicate that the outdoor business is going to be up, although only slightly, from last year. As we get ready to head into the NRA Annual Meetings & Exhibits in Indianapolis, Indiana next week, it's probably appropriate to give a Q1 look at how things have gone for various segments.

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Industry outlook for ammunition hasn't improved much, but ammo is coming available. OWDN photo.
With firearms, a quick summation is pretty simple: ammo still in extremely high demand and short-although slowly improving- supply, but hard-to-get calibers aren't showing much improvement. That's starting to impact some of the calibers that aren't so popular because their time on the manufacturing machines is being reallocated to try and meet demand. Yes, manufacturers are stepping up and buying additional machinery and expanding, but that takes something consumers don't want to hear about- time.

As far as the trickle-down impact that has on the secondary industries, components are still selling well, but ranges across the country are reporting some drops in traffic. They say much of that drop is attributable to the short supplies of ammo and still crowded shooting lanes in peak times.

The real concern there is that while some new shooters are joining shooting groups, many are turning away from shooting because of ammo shortfalls.

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Boating is seeing a second consecutive year of gains. They're not huge, but certainly beat the drops of the past few years.
If you're a reloader, we're not ignoring you or your continued complaints about the shortages of supplies. That's one segment where there's not much positive news. There are plenty of pieces of reloading gear available, but the quantities of powder, primer, cases and shot or bullets just aren't. Manufacturers are facing a business problem: it's tough to convince owners that it's sensible during a very high-demand time to sell components for lower margins that your own branded ammunition. Supplies are being allocated, but the high-demand calibers are, unfortunately, the same as the box-ready ones.

Boating, like RVing, is an industry that takes it on the chin when economic times get tough. A consensus of manufacturers and dealers I've spoken with as the winter show schedule wraps up is that things are getting better. More people are buying into the entry-level boats and the high-end market has remained fairly steady. The good news: there are more people trading up to larger or better equipped boats. The middle is where activity has been absolutely flat for the past three years - and represents a critical component of overall industry health.

And recognizing that not everyone is in the market for a $50,000+ fishing boat, manufacturers are putting out packages that can put an angler and/or his family on the water for less than $20,000. Margins are described as "pretty tight" on boats in this price range, but the industry knows from experience that getting people out on the water is essential to keep the sport viable.

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Trolling motor, video camera, live well, cooler, rod holders...on a kayak? You bet. They're as equipped as you'd like them today.
As far as the RV market, the largest RV show of the year reported good traffic and orders being written. There is still, however, the challenge of a glut of new models from last year sitting on dealer's lots. They're being offered out with incentive programs, so RV enthusiasts are reporting good buying opportunities.

As far as other trends we're seeing- or hearing about anecdotally - it looks as if there is still a growing interest in outdoor activities. Kayaking, birding, mountain biking and camping are leading the trends as consumers are finding new technical gear across virtually all price points, from the affordable-for-a-family general purpose kayaks and bikes to the "performance at any price" units that equip kayaks with enough gear to fish competitively against any other type of boat to uber-lightweight mountain bikes that are in the rarified atmosphere of the super-enthusiasts.

It looks like the outdoors can have a pretty good 2014- if and when we can finally evict the cold weather and get some semi-stable summertime weather.

As always, we'll keep you posted.


--Jim Shepherd