What Arctic Cat’s pause on manufacturing means for Upper Michigan’s small business landscape

SHINGLETON, Mich. (WLUC) – A popular snowmobiling company has recently suspended manufacturing operations indefinitely.

The Arctic Cats company has placed a temporary freeze on its manufacturing operation as a way to save money.

Hiawathaland Snowmobile Club member Don Britton says the company could be doing this because the demand for a snowmobile is low.

He says no snow means seasonal riders are forced to find different activities in the winter. Britton says this decision has the potential to hurt U.P. economies.

“Communities like Munising, Hancock and Houghton,” Britton said. “They thrive on snowmobiling, especially when there is snow between Christmas and New Year’s, it gets really crowded.”

Munising Motor Sports owner Dave Bear says they’re well-stocked with Arctic Cat models right now, but the company pausing operations is something they saw coming.

“Any dealership could see what was happening in the industry,” Bear said. “This is not limited to just Artic Cat. This sport has taken a huge hit due to the lack of snow. Given the economy and the lack of snow, it’s been a tough, tough snow.”

Munising Motor Sports front store manager Ashley Eaton says this news is especially difficult now.

She says the high costs of snowmobiling make it an activity fewer people can afford to enjoy. However, she says she’s remaining hopeful.

“The way everything is priced, I’m not sure what Artic Cats’ future is going to be,” Eaton said. “But I’m sure they are going to figure out a way to overcome this. This has happened before in the past.”

Michael Maynard, director of corporate communications for Textron Inc., the company that owns Artic Cat, responded to concerns with a statement:

“In response to the ongoing business conditions facing the powersports industry, Arctic Cat will suspend manufacturing operations indefinitely at our facilities in Thief River Falls and St. Cloud, Minnesota, after planned production in the first half of 2025 is complete.

Textron Inc. also announced that it is exploring strategic alternatives regarding the future of the powersports business. These actions are difficult but necessary as we have continued to experience softness in consumer end-market demand, resulting in a need to reduce costs.

Arctic Cat remains open for business with respect to selling current inventory and providing aftermarket support and services to our existing installed customer base. Our sales organization, customer service teams, aftermarket distribution centers, and other functions are ready to assist our dealers and loyal customers. We are committed to providing the service and support to keep our thousands of loyal customers riding and enjoying Arctic Cat vehicles.

We will resume production as planned after the new year to produce units under existing customer commitments. However, once that build is completed, we will suspend operations indefinitely, and will release our manufacturing employees at the Thief River Falls and St. Cloud facilities. Employees who work through their specific completion date will be offered severance benefits.

We will monitor industry conditions throughout this suspension, and make further announcements about our operational plans when we have more information to share.

We thank our employees, dealers, customers and supporters for their loyalty, patience and understanding as we weather the difficult conditions facing our business and our industry,” said .

Bear says regardless of the temporary production pause, his store will be running strong.

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