State of the Industry
Golf Demand
Source: NGF golf participation study - 1990 is a calculated
average of 1989 and 1991
2011
2010
2009
2008
2007
2006
2005
2004
2003
14.4
14.8
15.3
16.6
17.3
17.5
18.0
18.3
18.9
18.7
11.3
11.3
12.2
12.3
12.0
11.5
11.6
11.2
12.4
9.1
12.0
11.8
6.7
19.4
17.4
6.4
19.7
19.7
6.9
19.3
8.4
8.3
8.4
8.2
8.3
8.4
8.3
8.2
7.4
30.0
2002
2001
2000
1999
1998
16.0
16.4
15.7
16.0
16.2
16.1
15.9
15.7
6.9
6.2
25.0
1997
1996
1995
1994
1993
1992
1991
1990
1989
15.3
15.0
1988
14.1
13.5
20.0
1987
1986
Participants (MM)
Long-term Participation Trend
35.0
Occasional
10.0
Core
5.0
0.0
Participant Gains v. Losses
Gained
Lost
5.2
4.9
4.6
Participants (MM)
3.5
4.2
Recessionary effect
3.7
3.9
3.7
3.5
2005
2006
Source: NGF golf participation study
2007
3.9
4.0
2008
3.7
3.6
3.5
2009
2010
2011
Rounds played – 2012 (up 5.7% nationally)
(% Change from previous year)
Mountain
+7.0%
Pacific
(+1.6%)
W. N Central
+7.6%
E. N. Central
+10.8%
New England
(+3.2%)
Mid Atlantic
(+10.1%)
So. Atlantic
(+2.4%)
+2.0% or higher
+1.9% to -1.9%
-2.0% or lower
So. Central
(+5.0%)
Source: Golf Datatech National Rounds Played Report in cooperation with PGA Performance Trak and the NGF.
Based on a sample of approximately 4,000 reporting facilities
Rounds played – 2012
(Public Facility Concentration 2012 U.S.)
West N Central
(+7.6%)
Highlighted area
contains almost half
(47%) of the nation’s
public golf facilities.
Source: Golf Datatech National Rounds Played Report and NGF golf facility database.
East N Central
(+10.8%)
Mid
Atlantic
(+10.1%)
Rounds volume
% Change (year-over-year)
6.7%
5.7%
2.1%
0.9%
-0.1%
0.0% 0.3%
-0.6%
-1.5%
-3.0%
-0.6%
-1.8%
-2.3%-2.5%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Golf Supply
Courses/Facilities
Course openings
18-hole equivalents
399
358
336
320 316 328
284
267
260 256 263 263
224
183
220
171
151
100 102
125 120
113
72
50 46
19
Source: NGF Facility Tracking
14
Course closures
18-hole equivalents
158
146
155
140
2012 Closures:
122
PUBLIC: 139.0 (90%)
107
106
Daily Fee: 130.5 (84%)
Municipal: 8.5 (6%)
94
68
32
2001
PRIVATE: 15.5 (10%)
63
REAL ESTATE: 34.5 (22%,
incl. both public and
private)
38
2002
2003
2004
Source: NGF Facility Tracking
2005
2006
2007
2008
2009
2010
2011
2012
Net change in supply
18-hole equivalents
252
Net Change = openings minus
closures (in 18-hole equivalents)
182
103
88
31
-27
-9
-34
-90
2001
2002
2003
Source: NGF Facility Tracking
2004
2005
2006
2007
2008
2009
-61
2010
-139
-141
2011
2012
Golf Supply v. Demand
Rounds & golf course supply
% Change in
rounds (from
previous year)
Rounds Per
18 hole equiv.
(-3.0%)
34,119
(-1.5%) (0.9%)
14,725
(0.3%) (-0.6%) (-1.8%) (-0.6%) (-2.3%) (-2.5%)
33,385 33,340 33,292 33,491 33,300
Decade
-12.1%
Course
Supply (18
hole equiv.)
(0.0%)
14,827
32,643 32,459
(5.7%)
33,364
31,869
14,988 15,007 14,968 14,958 14,984 14,979
14,905
31,310
14,791
14,672
Decade
+1.7%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: NGF/Golf Datatech
Range & Retail Supply
Continued contraction in range supply
2012
Small (1-20)
14%
Large (51+
tees)
31%
Medium
(21-50 tees)
55%
Stand-Alone Driving Ranges
1574
1513
1486
1295
1292
1048
1033
1001
2010
2011
2012
We have seen very little
change in the range size
proportions since 2000:
2000
2003
2006
2008
2009
Retail supply 5-year trend
2,000
10.0
9.4
8.8
1,800
8.4
8.2
8.5
1,600
8.0
Doors
1,437
1,400
9.0
Sq.
7.0 Ft. (mm)
1,281
1,143
1,200
1,067
1,078
6.0
1,000
5.0
800
4.0
600
3.0
400
2.0
200
1.0
0
0.0
2008
2009
2010
2011
2012
Retail – 2012 snapshot
1,078
Doors
8.5 mm
Sq. Ft.
41%
64%
National
Regional
14%
Independent
45%
16%
20%
Doors
Square Footage
Industry Spending
Domestic – club shipments
(Drivers, Fairways, Hybrids, Irons, Wedges, Putters)
140
130
Wholesale Units
Sales Index
120
113
117
107
110
100
100
110
104
116
116
113
114
104
Wholesale Dollars
103
102
93
94
95
102
102
95
90
80
84
87
70
60
Source: National Golf Foundation/Equipment Manufacturers
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Domestic – ball shipments
130
Wholesale Units
120
Wholesale Dollars
107
110
102
Sales Index
100
100
100
90
102
104
97
92
97
91
100
95
89
94
84
85
70
70
2010
2011
87
80
70
74
60
50
86
67
Source: National Golf Foundation/Equipment Manufacturers
2002
2003
2004
2005
2006
2007
2008
2009
2012
Facility maintenance budget index
(18-Hole Facilities)
Average Maintenance Budget1
130
<$750K
$750K+
120
107
110
103
100
107
105
106
102
90
110
100
100
97
107
108
99
97
95
96
89
95
92
80
70
Source: National Golf Foundation surveys with 1,200 superintendents per year; unadjusted for inflation
2003
2004
2005
(1) Excluding capital expenditures and water
2006
2007
2008
2009
2010
2011
2012
Turf maintenance equipment
Turf Maintenance Equipment
Purchase Intent Index
120
Purchase Intent Index
110
100
100
104
101
92
90
80
71
70
60
70
72
67
66
64
64
58
52
50
40
Source: National Golf Foundation surveys with 1,200 superintendents per year
YE'05 YE'06 YE'07 MY'08 YE'08 MY'09 YE'09 MY'10 YE'10 MY'11 YE'11 MY'12 YE'12
YE = Year End
MY = Mid Year
Consumer Confidence
Consumer Confidence Index
140
120
100
Indexed value
90 = normal
80
60
40
Index currently stands at 76.2
20
Through May 2013
Source: The Conference Board
Jan 13
Jan 12
Jan 11
Jan 10
Jan 09
Jan 08
Jan 07
0
Source: Gallup
100
May '13
120
Nov '12
April '12
Sep '11
Dec '10
May '10
March '09
May '08
Consumer spending
140
May -13
$92
80
60
40
20
0
Consumer Spending Improving
Real Personal Consumption Expenditure Index
[Index numbers, 2005=100]
Seasonally adjusted
Source: Bureau of Economic Analysis
Recessionary Impact on Net Worth
S&P 500 and Case-Shiller Home Value Indices
Case-Shiller Home Value Index
(year 2000 as 100)
S&P 500 Index
1477
1427
1310
1207
1131
1194
1220
994 965
204 204
1379
1268
178
1140
153
948
136
101
Source: S&P 500 / Case Shiller
113
121
182
148 152
148 147 142
137
Overall takeaways
Golf continues to slowly recover from the
effects of the Great Recession
Outlook for 2013 is modestly – and
cautiously– optimistic
Golf’s economic recovery remains
dependent on the recovery of the overall
economy and continued increases in
consumer confidence and spending
State of the Industry