Sporting and Recreational Goods Wholesalers NAICS 423910

Jul 31, 2025 - Import Cargo Levels Uneven

• According to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates, import cargo at major US container ports is expected to rebound in July 2025 following a drop in the spring, but is forecast to fall again when a tariff delay by the Trump administration ends in August. Ben Hackett, founder of Hackett Associates, said the global supply chain works best in a predictable trade environment and not with erratic policies and geopolitical volatility. He noted, “A flurry of tariff-related announcements from the Trump administration has only served to further increase supply chain uncertainty.” Tracker data showed that US ports handled 1.95 million 20-foot equivalent units (TEU) in May 2025, down 6.4% year over year, and a projected 2.0 million TEU in June 2025, expected to be down 3.7% year over year.
• Consumers may adjust their sporting goods spending as consumer confidence levels, an indicator of discretionary expenditures, improved in July 2025, month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s levels, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan increased in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The US sporting and recreational goods wholesalers industry is projected to grow at a 3.77% CAGR from 2025 to 2029, slower than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. Retail spending could soften with the growth of spending on consumer services. Another factor that may limit consumer spending is higher tariffs on consumer goods. In 2025 and into the forecast period, real disposable income may be supported by continuing nominal wage growth, lower inflation rates, and higher employment levels. Lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if prices rise due to tariff implementation.
• According to a new survey from the National Association of Wholesale-Distributors (NAW), tariffs are driving cost increases and creating operational challenges across the wholesale distribution industry. The survey was done in collaboration with Modern Distribution Management (MDM) Research. About a third of distributors say they face price increases of 25% or higher. According to Eric Hoplin, NAW’s CEO, “Though these increases haven’t hit store shelves yet, it’s an indication of where prices are headed.” About 62% of distributors expect their cost of goods will rise by 10% or more in 2025, while 67% of respondents report a negative impact on their business. Nearly 40% of respondents said more than 20% of their inventory originates in China, and only 17% can shift to domestic or non-impacted suppliers. Operational actions being taken by distributors include slowing inventory replacement (48%), delaying new hiring (44%), cutting capital investments (37%), and reducing discretionary spending (60%).