Sporting Goods Manufacturing

Sporting Goods Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture sporting and athletic goods, including sports and fitness equipment. Major companies include Callaway Golf and Easton-Bell (both based in the US), as well as Amer Sports (Finland), DECATHLON (France), and Mizuno (Japan).

Sports equipment manufacturing worldwide generates about $100 billion in annual sales. China, the US, and Germany are the largest exporters of sporting goods. Because of lower labor and production costs, many companies outsource or have manufacturing facilities in developing countries such as China and India.

The US sporting goods manufacturing industry includes about 1,300 companies with combined annual revenue of about $10 billion and is expected to grow at a moderate rate over the next two years. Consumer spending is a key growth driver of the industry.

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. The industry is concentrated: the 50 largest companies account for about 70 percent of industry revenue.

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...