With the improved economics of the last three years , the demand for renovation and other overall capital needs is basically exploding . The cost of these services has increased due to an assortment of factors – raw materials , labor and most construction components are more expensive .” |
||||
— Stuart Lindsay , Principal , Edgehill Golf Advisors |
||||
BIGSTOCK , CHRIS LANG |
Fairfax County ’ s fiscal year 2022-2023 ended June 30 . Early numbers showed total revenue up 7 percent and rounds up 18 percent . “ Little snow and a dry spring helped ,” says Carmen , “ but I also credit our turf crews for keeping the courses in prime condition .”
Golfer survey response has given the county ’ s tracks a ringing endorsement . So much so that Fairfax has hired a director of agronomy to oversee the maintenance / turf conditioning across all seven sites . On the director ’ s to-do list are updated technology , irrigation systems and pumphouses .
Mike West , now general manager at Magnolia Green , spent most of COVID as GM at High Meadows in Roaring Gap , N . C . The pandemic affected “ virtually every aspect of the golf business ,” he avers .
Finding parts for tractors and other course care machines was tricky during the supply chain crisis .
|
The bad news was that some equipment companies were not ready for the surge in demand . The good was that he observed an improved relationship between clubs and vendors and a better understanding of the forces that drive their businesses .
Going forward West said he believes that availability of golf course products ( i . e .: fertilizer and chemicals ) are close to pre-COVID levels . “ Some equipment and club makers , etc . are still struggling a bit , but food and beverage has pretty much returned to normal ,” he says .
Back to the Future Are things getting better or at least normalizing ? There are signs that say “ yes .” Others indicate not yet . For example , requests for comment on golf supply chain issues to a number of industry heavyweights ( Club Car , Toro , John Deere , Golf Galaxy , Smith Turf & Irrigation , among others ) fell fallow . Silence was the response of the day with the exception of Julie Gulick , product manager for E-Z-GO brand marketing who answered with a polite “ we are unable to comment about our supply chain .”
From Adcock ’ s position at Revels he says “ the supply issues have definitely improved in the last six months ; 12-18 months ago the problems were at their peak . Now they are better .”
But are they back to normal ? “ I don ’ t see it yet and I don ’ t know that we know yet . Maybe by 2025 . However , I ’ ve been saying that for two years . I think the golf economy is going to slow down and that ’ s when we are going to catch up . It ’ s not the manufacturers ’ fault ; it ’ s the world we live in now .
“ But I love to hear that country clubs have waiting lists . As long as they do the golf economy is doing well ,” he says .
|
A LONGER VIEW “ With the improved economics of the last three years , the demand for renovation and other overall capital needs is basically exploding . The cost of these services has increased due to an assortment of factors – raw materials , labor and most construction components are more expensive . The availability of all three is also a problem . Wait times for everything from irrigation supplies to golf carts and fairway mowers are common conversations we have with golf course operators across the country .
“ Given those factors the real question becomes the impact on the cost of a round of golf . At what point does price become a tipping point that spills the positive gains in participation we ' ve seen over the past three years ? It ' s a very complicated issue . We ' re starting to see some declines in course utilization ; but is it a result of the basic economic conditions or a reflection of pricing specifically related to golf activity ?
“ The rising cost of both golf operations , golf courses and the need to address deferred capital needs are going to create upward pressure on pricing . For the last three years , the cumulative course closures since 2006 have reduced tee space availability and helped create strong demand for the remaining capacity . If course utilization in 2023 drops to any meaningful degree , my educated guess is that it will be more than a general economy question . Customer counts and transaction frequency / values will become much more important . If we have to raise prices , we better be prepared to market golf as an even more worthwhile use of discretionary time and money .”
– Stuart Lindsay , Principal , Edgehill Golf Advisors
|