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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation 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.
International Sourcing And Sales Risks
An increasing percentage of finished sporting and athletic goods and raw materials are being sourced from foreign countries, particularly China and other developing countries in Asia.
Protecting Brands And Distribution Rights
The marketing success of many sports and athletic goods manufacturers often depends on maintaining strong brand names, trademarks, and proprietary technologies or product designs.
Industry size & Structure
The average sporting goods manufacturer employs 23 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 36,000 workers and generate $12.4 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 2022, participation rates were 67% of the population for fitness sports, followed by 55% for outdoor sports, 41% for individual sports, 23% for team sports, 16% for racquet sports, 14% for water sports, and 8% for winter sports, according to the Physical Activity Council.
- Millions of Americans participate in team and individual sports including basketball (27.1 million), baseball (15.5 million), soccer (12.6 million), football (7 million), court volleyball (6.3 million), ice hockey (2.3 million), softball (2.3 million), lacrosse (1.8 million), and rugby (1.2 million).
Industry Forecast
Sporting and Athletic Goods Manufacturers Industry Growth
Recent Developments
Mar 11, 2024 - Wages, Producer Prices Increase
- According to the Bureau of Labor Statistics (BLS), producer prices for sporting and athletic goods manufacturers increased throughout 2023, reaching a high point in Q4. Overall, producer prices have been growing since 2019, rising 12.4%. Employment for sporting and athletic goods manufacturers has been steadily rising in recent years, recovering after a pandemic dip and surpassing 2019’s level. Wages for employees at miscellaneous durable goods manufacturers, which includes sporting and athletic goods manufacturers, reached their highest level in Q4 2023 after remaining consistent for most of the year. Wages in December 2023 were 5.3% higher than in December 2022 and 22.3% higher than in 2019, per the BLS.
- US manufacturing activity contracted in February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
- Sporting and athletic goods manufacturers will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.