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MILWAUKEE – Snowmobiling has taken a spill from lackluster winters. U.S. sales of the motorized sleds are at their lowest point in 13 years, according to the International Snowmobile Manufacturers Association, based in Haslett, Mich.

Polaris Industries, one of the largest manufacturers, expects to finish 2006 with 40 percent fewer snowmobile sales than in 2005. “We are still in the business, but it’s become a smaller piece of what we do,” said Richard Edwards, spokesman for the Medina, Minn., company that also makes all-terrain vehicles and motorcycles.

Snowmobiling is a major part of winter tourism in states like Michigan, Minnesota and Wisconsin and supports hundreds of hotels, restaurants and taverns.

The lack of snow in recent winters has been a key reason for a steady decline in snowmobile sales. There have been other reasons, too, such as more people turning to all-terrain vehicles instead of sleds.

The number of ATVs sold in the United States has far surpassed snowmobiles in the last 10 years. It’s especially noticeable when you see ATVs, rather than snowmobiles, parked next to ice fishing shanties, said Ed Klim, executive director of the International Snowmobile Manufacturers Association.

There are some signs that snowmobile sales are on the mend this fall, perhaps because of early cold weather. But even ATV sales have slipped, partly because of a decline in consumer spending, according to a Robert W. Baird & Co. report on the power sports industry.

Some dealers have used promotions, such as free winches, to fuel sales. “No deal walks. If we make a dollar, we sell,” one dealer wrote in the Baird report.

Snowmobile dealers still have on hand older-model sleds that didn’t sell in 2005. Some dealers have launched aggressive sales promotions to clear out sleds that have been on the showroom floor for three years.

The typical U.S. snowmobiler is 42 years old, married, and has more than $70,000 in household income, according to the International Snowmobile Manufacturers Association.

“If someone is going to buy a snowmobile, and they don’t need to have this year’s latest and greatest, I think there are some absolutely great buys out there,” Christopher Twomey, chairman and CEO of Arctic Cat Inc. said this week in a conference call with industry analysts.

To boost sales, manufacturers have launched an advertising campaign, called gosnowmobiling.org, that’s similar to efforts promoting motor homes and camper trailers as family-oriented recreation.

It’s too early to measure the campaign’s success. But judging from sales in recent weeks, snowmobiling might be on the rebound.

Sales of Arctic Cat snowmobiles totaled $121.5 million in the company’s most recent fiscal quarter, up from $111.4 million a year earlier. The Thief River Falls, Minn., company expects a 5 percent to 9 percent revenue increase this year from snowmobiles.

“I think there’s a belief in the general population that we are finally going to have a real winter again,” Klim said. “That’s a good thing because, historically, people buy snowmobiles when we have lots of snow.”

Better sleds, including new ones that are quieter, more reliable and have push-button reverse, have drawn buyers back to the dealerships. In some cases, people want to trade in sleds that are decades old, said Eric Pedersen, president of Riders Power Sports Inc., a Big Bend, Wis., snowmobile dealership.

“We have guys who are still fixing their 1979-vintage Yamahas and some other dinosaurs,” Pedersen said.

New snowmobiles can range in price from about $4,000 to $12,000 for a machine with amenities such as hand warmers and electric power outlets.

“One of the best things is the gas mileage. Some of our fuel-injected models get 17 to 22 miles per gallon,” Pedersen said.

Demographics ought to work in the snowmobile industry’s favor, as baby boomers are still young enough to ride and have ample money to spend on recreation.

Some boomers have taken early retirements and moved north, further fueling snowmobile sales.

“Their kids are out of school and they’re buying toys for themselves,” Klim said.

Years ago there were 104 snowmobile manufacturers, making sleds at a frenzied pace in the late 1960s and early 1970s.

Some of the manufacturers, such as John Deere Inc. and Massey Ferguson Co., were better known for lawn tractors and farm equipment. Outboard Marine Co. and Mercury Marine Inc., both of Wisconsin, made snowmobiles but were better known for boat motors.

Snowmobiles were a novelty then. They were inexpensive, and there was plenty of open land to ride on. Winters in the Upper Midwest were blessed with tons of snow, an essential ingredient to whip up enthusiasm for the sport.

Safety regulations imposed on the industry in the 1970s drove a lot of manufacturers out of the snowmobile business.

Now, only four major snowmobile manufacturers remain: BRP Inc. of Canada; Yamaha Motor Corp. of Japan; and Arctic Cat Inc. and Polaris Industries, both of Minnesota.

While U.S. snowmobile sales have declined steadily for years, sales in Europe have increased. They’re especially strong in Finland, Norway, Sweden and Russia.

The reason: “They’ve had really cold winters with a lot of snow,” Klim said.



Estimated snowmobile sales:

2006: 91,670

1997: 170,325 (most recent high)

1993: 87,809

Source: International Snowmobile Manufacturers Association

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