Mr. Tiller: I think, generally speaking, the industry trends are favorable. The economy is, of course, very strong. People have lots of discretionary income. As baby boomers age, they seek to spend more of their time and their money outdoors. Those trends play very well in our markets. The two of our markets that are doing exceptionally well right now are the ATV market and the motorcycle market. The ATV market has grown really throughout the '90s at a double-digit pace and has been accelerating more recently. Last year, the industry grew at 19 percent per year. So we're seeing very strong growth there. Then the cruiser motorcycle market is also a very strong market, recently growing in the mid-teens - and this year, in fact, growing faster than 20 percent. Again, those are industry numbers. So we're seeing a very healthy market right now for recreational and utility products driven by a strong economy and also the demographics.
TWST: What's the competitive landscape? As you look at these markets, do
you define them in market share? You define 'competition' differently,
obviously, in each market. But are there aspects on each area of
competition that you focus on?
Mr. Tiller: I would say that all the markets are competitive. Obviously,
when you have an industry growing at 15 or 20 percent per year, you may
feel a little less heat from the competition. I think a rising tide has
lifted all boats. But all the markets are competitive. We try for a
number one or number two position. In essentially 95 percent of our
current sales, we have that. That does give us industry leadership,
although in our new product lines, of course, we're not there yet. But
we do want a number one or number two position.
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