Sporting and Athletic Goods Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,600 sporting and athletic goods manufacturers in the US design, engineer, and manufacture a wide range of sporting, athletic and fitness related goods and equipment. Products include sports equipment (excluding sports apparel and footwear) used to play team sports, like baseball, basketball, football, and hockey; individual sports, including golf, tennis, bowling, and swimming; fitness equipment; and products used in outdoor recreational activities, such as fishing, camping, hiking and rock climbing.

Industry size & Structure

The average sporting goods manufacturer employs 26 workers and generates $6-7 million in annual revenue.

    • The US sporting and athletic goods manufacturing industry consists of about 1,600 companies that employ 41,000 workers and generate $10.7 billion in annual revenue.
    • The industry is dominated by a small number of large manufacturers having several different products and brands, but is also characterized by a large number of very small manufacturers who market specialized products in niche markets.
    • The 50 largest manufacturers generate 70% of the industry's revenue, yet 51% of manufacturers have less than 5 employees.
    • In 2020, participation rates were 67% of the population for fitness sports, followed by 53% for outdoor sports, 43% for individual sports, 22% for team sports, 13.7% for water sports, 14% for racquet sports and 8.3% for winter sports, according to the Physical Activity Council.
    • Millions of Americans participate in team and individual sports including basketball (25 million) baseball (15.8 million), soccer (17 million), swimming (31 million), volleyball (14 million), softball (9.2 million), cheerleading (3-4 million), racquetball (3.5 million), lacrosse (2.1 million), rugby (1.4 million), fishing (42.5 million), and surfing (2-3 million).
                                  Industry Forecast
                                  Sporting and Athletic Goods Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  May 13, 2022 - Manufacturing Activity Slows In China
                                  • Firms reliant on supplies from China may suffer shortages as pandemic-related lockdowns cut manufacturing output. China’s manufacturing output decreased at the sharpest pace in 26 months in April amid escalating COVID-19 lockdowns. The Caixin/Markit purchasing managers’ index (PMI) decreased to 46.0 in April from 48.1 in March. A reading below 50 suggests output is contracting rather than expanding. The rate of decline in manufacturing production was the second steepest since the survey began in early 2004, beaten only by the reduction seen at the initial onset of the pandemic in February 2020.
                                  • Vietnamese factories making everything from shoes to smartphones are expected to continue production despite record COVID-19 infections, reversing a policy of sweeping lockdowns put in place in 2021. The number of COVID-19 infections being reported in Vietnam in mid-February was about double the peak at the same time in 2021, when factories were shut for months. Millions of factory workers have been fully vaccinated and the Omicron variant is proving less severe, government officials said.
                                  • A OnePoll survey of 2,000 people who regularly exercise found that two-thirds of Americans would rather exercise at home than go back to a gym. The survey also found that more Americans are finding it easier to maintain an at-home fitness routine now compared to last year (82% vs. 72% in 2020). Analysts say that the results indicate that spending on home exercise equipment may remain elevated for some time after the pandemic ends.
                                  • The pandemic-driven shift to online purchases of sporting and athletic goods and services by consumers was perhaps even bigger than at first thought, and is likely to become a permanent feature of the sector, according to a report from consulting firm McKinsey & Company and The World Federation Sporting Goods Industry. The online share of sporting and athletic goods sales jumped in 2020 to a level previously forecast for 2024. The report cites exercise equipment and media firm Peloton, which saw its online workouts more than quadruple during 2020 from 19 million in Q1 2020 to 77 million in Q4, as an example. Manufacturers that can take advantage of home fitness trends enabled in part by online training and participation may be best positioned to capitalize on what the report calls the "next normal for the industry, defined by factors including digital commerce, rising demand for sustainable products, and increasing participation in individual forms of sport and exercise."
                                  • Sales at sporting goods, hobby, musical instrument, and book stores increased 3.2% month over month on an adjusted basis in March but decreased 5.7% year over year during the period, according to the US Department of Commerce. The sales data measures dollars spent at US businesses, so the increase partly reflects inflation in the cost of everyday products from food to gasoline. Consumer prices are increasing at the fastest pace in years, a phenomenon largely attributed to the uneven reopening of the global economy.
                                  • The global sporting and athletic goods market is expected to grow at a compound annual growth rate of 7% from 2021 and reach $133.2 billion in 2023, according to Business Wire.
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