Vehicle Technology & Mobility and Outdoor Recreation: 2H 2024 Insights & Perspectives (Baird)

Summary

• The conference had 48 participating companies, 230+ total attendees and 160+ scheduled 1x1 meetings.p.3
• Public participants in the vehicle technology and outdoor recreation conference had a median market cap of $2.5 billion.p.3
• Executives saw a ~90% chance of a September rate cut, but many believe multiple cuts are needed before retail activity meaningfully increases.p.4
• The light vehicle segment shows ~285M vehicles in operation and an average car age of ~12.5 years.p.6
• The broader Global Consumer, Technology & Services conference drew 270+ participating companies, 2,200+ total attendees and 5,400+ scheduled meetings.p.12
• Baird surveys 24 leading RV dealers and 83 leading marine retailers through monthly sentiment indices.p.14

Key insights

1. Interest rates continue to dominate executive conversations, with higher rates challenging consumer affordability and dealer willingness to hold inventory.p.4
2. De-stocking is complete or nearly complete after soft retail sales, with new vehicle inventory nearing pre-COVID levels.p.4
3. Consumer interest and participation remain strong, driving a focus on brand building and customer experience.p.5
4. Light vehicle non-discretionary categories and aftermarket services are clear outperformers.p.5
5. Executives are simplifying their businesses and divesting non-core segments to focus on the core.p.5
6. Boat retail demand is expected to remain under pressure through 2024, with production suppressed to work down inventory.p.6
7. Needs-based aftermarket multiples show durability driven by the essential nature of end applications.p.9