GE Capital's Commercial Distribution Finance (CDF) business recently released its assessment of volume and aging trends in the Canadian marine, recreational vehicle and motorsports industries through the end of the Canadian selling season. Among the key findings are that the age of inventory held by marine dealers held steady while the age of inventory held by RV and motorsports dealers decreased year-over-year through September.
The aging of marine products held by dealers remained steady through September; it has dropped only one percentage point since 2010. "The three-year aging trend is basically flat,' said Howard Shiebler, President and CEO of CDF in Canada. "Naturally, we work collaboratively with our customers to monitor situations where levels may become problematic.'
The regional trends provide more insight. The sell-through of aged inventory caused aging levels to drop in British Columbia, Alberta, Saskatchewan and Manitoba. The only province with aging levels above the national average is Quebec.
The country did experience a positive increase in marine orders financed by CDF â€” 19 percent in 2012, up from nine percent in 2011. The regional view shows that growth in the west far outpaced that in central and eastern Canada.
In the motorsports industry, dealers continued to stock products conservatively through September. Aging dropped to a healthy 11 percent.
"On a regional basis, aging levels dropped across all provinces. They range from a high of 15 percent in the Atlantic provinces to lows of seven percent in Saskatchewan and Manitoba for the second consecutive year,' said Shiebler.
When it comes to volume, there was a slight decrease in orders by Canadian motorsports dealers. This could be related to the fact that those in British Columbia, Alberta and the Maritimes went into the summer selling season holding extra snow-related inventory that didn't sell in 2011, Shiebler noted.
"The level of inventory aged more than one year held by RV dealers decreased from 20 percent in 2011 to a healthy 14 percent today,' said Shiebler. "As we enter into the seasonal down period, the levels of aged inventory look healthy and position dealers well for ordering new product in the new year.'
Regionally, inventory aged more than one year remains slightly more concentrated in Alberta and British Columbia as well as in the Atlantic provinces.
Shipments of RV products financed by CDF increased to 12 percent year-over-year through September. Growth is being driven by Saskatchewan and Manitoba.
As a result of its longstanding position as the leading financing provider to Canadian manufacturers and distributors and their dealers, CDF periodically provides market intelligence that may help companies throughout the supply chain manage their businesses.