It seems like everywhere you look, companies are feeling the economic pinch… so how is a Canadian Ski-Doo and Sea-Doo maker still managing to rake in billions?
Bombardier Recreational Products (BRP) reported over $3 billion in revenue last quarter, breaking its record set in the previous quarter of $2.7 billion. One analyst told the Financial Post BRP saw “probably the best [growth rate] in the consumer sector in Canada” in 2022.
- With the unemployment rate still low and credit widely available, the company says it doesn’t expect demand for its fun machines to let up.
How they did it: North Americans can’t get enough of their all-season vehicles, which will include whipping around on the new Sea-Doo Pontoon this summer. Europeans? Tougher to crack. BRP just launched a campaign to change negative perceptions around Sea-Doos.
BRP also developed a unique plan to overcome the supply chain snarls that its industry is still battling. By shipping products to dealers even if they were missing parts, BRP could keep up with demand and outsource parts installation (once available) to 3,000+ dealers.
- Supply chain issues continue to set back revenue goals for the world’s largest actual vehicle makers. Some dealerships across the country are still sitting empty.
Bottom line: Someone, somewhere, once said, “money can’t buy you happiness, but it can buy you a jet ski.” As Canadians shift their money towards experiences over things, it seems like it’s a good time to be a company that makes the things that provide experiences.—SB