EsBRP, formerly known as Bombardier Recreational Products, experienced a 35% expansion in sales in the first three weeks of May compared to a year earlier, Bloomberg reports, as a result of a burst of demand as the COVID-19 residential lockdowns in the U.S. are relaxed. Yet, the company expects revenues to drop in the quarter to July 31 due to a shortage of inventory.
As discussed in Panjiva’s research of May 27, industrial manufacturing firms are likely to face the challenge of a mismatch between rising demand and available supply as markets reopen at different rates. That’s been particularly prevalent in the automotive industry but will also affect adjacent sectors with similar manufacturing characteristics such as recreational vehicles and boats.
Panjiva data for imports linked to BRP to the U.S. by sea and from Mexico dropped by 36.6% year over year in April as industrial lockdowns came into place. That followed a 40.4% surge in Q1 as manufacturing wrapped up. Imports in Q1 were led by a 78.5% surge in shipments of vehicles which in turn declined by 39.3% in April compared to a year earlier. Imports of parts had only increased by 10.1% in Q1 and fell by 34.1% in April.
Source: Panjiva
The firm has also gone through a significant restructuring of its supply chain. Imports linked to the firm from China fell by 33.6% in 2019 compared to 2017 while shipments from Mexico climbed by 51.7% and those from Vietnam jumped 81.0% higher.
The growth in shipments from Mexico, which represented 79.8% of shipments of containerized freight shipped to the U.S. and linked to the firm in the 12 months to April 30, will also set it in good stead ahead of the implementation of the U.S.-Mexico-Canada Agreement from July 1.
Source: Panjiva
