January 2019 January 2019 | Página 20

INSIDE By Stephen Metzger Managing Director Small Vehicle Resource, LLC [email protected] www.smallvehicleresource.com THE GATED COMMUNITY Who, If Anyone, Is Breaking New Ground in Small Vehicle Product Development? M any of the well-known 19th century economists (e.g., Adam Smith, David Ricard, John Stuart Mill) worried about the possibility that there would be a de- cline in new investment opportunities. As new investment was mainspring of economic improvement (as it is today), a dearth of such opportunities would result in diminishing, or even negative growth in future periods. for the big picture, is unlikely to hold for each and every individual market. Such may be the case for small, task-oriented vehicles (STOVs). STOVs are comprised of a wide variety of small vehicles, in- cluding golf cars, personal transportation vehicles (PTVs), light duty utility vehicles, and off-road work and recreational vehicles. A broad summary of the markets for these vehicles would indicate: As history tells us, their worries were unfounded, because, aside from business cycles, the economies of developed nations continued to grow as new technologies and new prod- ucts came to the fore. Nonetheless, some of this thinking has trickled into the 21st century, and is even promot- ed by some of the more determined environmentalists, who see increased incomes and economic betterment as curse on Mother Earth. • An off-road segment maturing and well-past its growth period of the first decade of the 2000s; While historically clear and one would guess, with a certain amount of con- fidence for the future, that new tech- nologies have driven and will continue to drive the U.S., as well as the global economy to new heights, what holds 20 WWW.GOLFCAROPTIONS.COM • Virtually no growth, maybe slow negative growth for fleet golf cars; • Reasonable growth prospects (albeit not spectacular) for PTVs and light-duty utility vehicles. What, Me Worry? Hey, why should we in our beloved, easy-going gated communities worry about industry trends? After all, we have our 20th century vehicles, which some persist in calling “golf carts”. Perhaps we should be content with these antiquated, yet still useful carriages that get us from point A to point B (as long as points A and B are within the perimeter of our community), at speeds less than speedy, and where innovation and better performance seems to be restricted to the show-off deck-outs we see and enjoy at our annual golf cart parades.