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 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

                                  Recent Developments

                                  Nov 10, 2022 - Inflation Slows, But Consumer Spending Does Too
                                  • Inflation, as measured by the US Bureau of Labor Statics' Consumer Price Index (CPI), increased 0.4% month over month in October, the smallest increase since July, and 7.7% year over year. The CPI measures what consumers pay for goods and services. Demand for sporting goods may decrease if consumers cut back on discretionary purchases. Consumer spending, the economy’s main engine, grew more slowly in the third quarter than in the second, after adjusting for inflation and seasonality. The year-over-year inflation increase was the smallest since January. June’s 9.1% year-over-year inflation rate was the highest in four decades. “A strong labor market and strong job growth supports strong demand, which allows inflationary pressures to stay elevated,” said Blerina Uruci, US economist at T. Rowe Price. “You’ve got more demand chasing goods and services, the supply of which is being impaired at the moment.”
                                  • There was “significant pushback” by companies during the comment period for a proposed Securities and Exchange Commission (SEC) rule that would require firms to report greenhouse-gas emissions arising from their supply chains and the use of their products, according to Satyam Khanna, a former climate-finance official at the SEC and current fellow at the Stanford Institute for Economic Policy Research. The Scope 3 emissions targeted by the proposal often cover the bulk of a business’s emissions. Many companies say that it is too costly and difficult to measure them. The SEC received more than 10,000 comment letters during the public consultation period.
                                  • The strengthening US dollar threatens to undermine a rebound in American manufacturing, according to many economists. The US dollar’s high value relative to the euro, the Japanese yen, the British pound, and other currencies makes foreign-made goods cheaper to import, while exports of US-made goods grow more expensive for foreign buyers. Experts say that the dollar’s strength is due to a resurgent US economy following Covid-19-related shutdowns in 2020 and the Federal Reserve’s efforts to reduce inflation.
                                  • Domestic sporting and athletic goods manufacturers that are negatively impacted by the increasing value of the dollar may get some relief as China struggles with several problems affecting a broad swath of businesses. Drought, heat, and coronavirus outbreaks have reduced output in many areas. Coronavirus outbreaks have caused lockdowns that stop production, while drought and heat have caused some regions to suspend industrial production to ensure residential power supply. China also faces increasing economic difficulties that are driven largely by increasing bad debt levels related mostly to the real estate sector.
                                  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.

                                  Request A Demo