The National Golf Foundation (NGF) published an article, “Consumer Confidence in the Rise: Time for Golf to Plan for Success”. The article starts by asking the question “is it time for the golf industry to lose the recessionary mindset”. Perhaps it is.
We still see courses shutting down and hear about so many under financial stress. Â General mood from the courses in our area is hesitant and cautious optimism, not yet confident matters will remain OK.
Indeed, after the strong rounds played YTD in 2012, 2013 with cooler rainier weather doesn’t feel as happy. Nationally rounds played were down 15% through April.  Cash is still tight, costs are rising, and competition is still tough.
The NGF article is looking at the long term economic and financial indictors and seeing positive growth for the next several years.
- Consumer confidence has show a slight upward improvement overt the past 5 years.
- Stock market has done very well. (Although recent days have caused concern)
- Home values are rising
- Home sales are rising
- Golf consumer equipment and supply sales are up
- NGF Indices are all rising
Superintendents are more optimistic they will be able to buy new equipment in the next 12 months. That is pure coincidental feelings, but has been a decent indicator. Superintendents tend to reflect the mood of their ownership/management team.
What does it mean to lose the recessionary mindset? NGF says the data may be suggesting it is time “to strategically invest in resources that will result in increased revenues”. “Become refocused on increasing sales instead of maintaining market share”. Perhaps it is time to move off a defensive posture and become more aggressive at attracting golfers.
There is some good news about golfers. Their numbers are growing again! See the chart. The NGF did a study in 2009 exploring the population and where golf would fit in through 2020. A small growth in golfer numbers was predicted each year. Good news is their predictions appear to be correct so far. More golfers, more opportunity for golf courses.
Of course the trick is attracting golfers to a course. In some areas there are still too many courses.  More closings are happening, and while sad for the ownership, it is the natural market processes in play. Given that in the next couple of years we will likely have the same number of active golfers as the height of the industry in the mid-90s and there will be fewer courses, does it not stand to reason opportunity is present for the survivors?
Another consideration will be participation rates. Yes there will be more golfers, but will they golf as much? The industry needs to work on boosting play rates among the golfers they serve.  No easy answers appear out there for this one.
So maybe it is time to start marketing to increase revenues. Maybe it is time to count on growth, slow as it looks to be, and how to capitalize on the opportunity.
