Sporting Goods Manufacturing
Buy This Industry Report
Get more in-depth industry information with a First Research industry report containing business challenges, trends, executive insight, call prep questions, and so much more!
Industry Overview
The US sporting goods manufacturing industry includes about 1,300 companies with combined annual revenue of about $10 billion. Large companies include Callaway Golf Company; Easton-Bell Sports; the Spalding division of Russell Brands; ICON Health & Fitness; and Rawlings Sporting Goods (a subsidiary of Jarden Corporation). The industry is concentrated: the 50 largest companies account for about 60 percent of industry revenue.
Worldwide, sports equipment generates about $100 billion in annual sales. Major companies outside the US include Amer Sports (Finland), DECATHLON (France), and Mizuno (Japan).
The industry includes manufacturers of fitness equipment, which are also covered in a separate profile. The industry does not include companies primarily engaged in the manufacturing of athletic apparel and footwear.
Competitive Landscape
The primary demand drivers for sporting goods are consumer income and demographic trends. The profitability of individual companies is determined by efficient manufacturing and effective marketing. Large companies enjoy advantages in economies of scale and brand recognition, and often offer a wide range of products. Small companies can compete effectively by offering specialized or unique products that interest enthusiasts.
Sporting goods imports equal about 60 percent of domestic production. Manufacturers may have overseas production facilities to take advantage of lower cost wages. Sporting goods companies may also buy and import products from overseas contract manufacturers. China accounts for the majority of US sporting goods imports. Other significant sources of imported sporting goods include Canada, Mexico, Taiwan, and Thailand.
Products, Operations & Technology
Major products include sports equipment (excluding apparel and footwear) used to play baseball, basketball, bowling, football, golf, hockey, pool, tennis, and other sports; gym, exercise, and playground equipment; and fishing tackle. General sporting and athletic goods used to play racket and team sports account for about 30 percent of industry revenue; golf equipment accounts for about 30 percent of the market, and gym and exercise equipment for about 20 percent.
Products are used generally for recreation and fitness. Some products, primarily those for team sports, are sold to collegiate, amateur, and interscholastic organizations. Some companies also supply products to professional sports leagues.
A wide variety of manufacturing processes are used to produce various types of sporting goods including metal, plastic, and woodworking operations and tooling; assembly; packaging; supply chain coordination; and shipping. Although much sporting goods manufacture is automated, some processes, such as golf club assembly, can be fairly labor-intensive. Most manufacturing operations have fewer than 100 employees.
Raw materials include wood, steel, aluminum, plastics and resins, fiberglass, textiles, and packaging. Products are generally shipped directly to retailers and sporting goods distributors. Third-party warehouses and logistics providers are often used to bring products to market.
Products often are designed and manufactured using CAD and computer-aided manufacturing (CAM) software. R&D can be important in creating product innovation that can be used to market products as offering a competitive advantage. Companies typically spend about 1 to 3 percent of revenue on R&D. Supply chain management systems electronically link suppliers and customers with manufacturing and assembly facilities. Technology is also used to implement just-in-time strategies that reduce inventory needs while shortening product delivery times.
