Though imports are eating into domestic revenue, health concerns will boost growth
Los Angeles, CA (PRWEB) July 25, 2012
During the five years to 2012, revenue for the Protective Sports Equipment Manufacturing industry has declined as the industry battled falling consumer spending and competition from imported products. According to IBISWorld industry analyst Nima Samadi, the rising volume of protective sporting goods imported into America has reduced domestic manufacturers' business. Also, the recession decreased consumer demand for discretionary goods, such as sporting and athletic equipment, including protective sports equipment. Reduced demand caused a buildup of inventory at the retail level. Consequently, industry revenue is estimated to have declined at an annualized rate of 6.5% during the five years to 2012 to reach $738.3 million; these figures include a 0.9% revenue decline in 2012. Over this time, the average profit margin for industry operators has decreased due to the rising competition from imports.
Despite recession-related declines, demand for Protective Sports Equipment Manufacturing industry products has been boosted over the long-term by growing concern about sports related injuries, says Samadi. According to the US Consumer Product Safety Commission, 3.5 million children and teens get hurt annually playing organized or school sports. In response to the rise in the number of sports-related injuries, manufacturers having been working on developing or improving protective sports equipment to reduce the incidence of injuries. Some sports leagues have also started mandating that their athletes wear additional protective equipment, which has also increased demand for industry products. In particular, the rise in catastrophic brain injuries in high-impact sports, such as football, has driven demand for newer and safer football helmets. As economic recovery builds momentum, retail sales will improve. Additionally, as consumers become more health conscious, they will be more inclined to purchase athletic equipment including protective sports equipment. In light of these two trends, demand for the industry's products will increase and steadily grow revenue in the short term, despite the overall decline of the industry.
Market share concentration within the industry is moderate, and the top two firms include Easton-Bell Sports and Wilson Sporting Goods Company. The industry comprises a multitude of multiproduct sports equipment manufacturers that tend to specialize in a specific team sport or extreme sport. For example, Rawlings is primarily a manufacturer and distributor of baseballs and baseball equipment. Over the past five years, concentration within this industry has increased, as many firms were forced to exit the industry in light of the poor economic climate brought on by the recession. Small-scale or specialty manufacturers found it difficult to compete in light of falling overall demand for industry goods during the downturn, forcing them to exit the industry. Additionally, some of the industry's larger firms have increasingly acquired smaller firms and their product portfolios. Over the next five years, IBISWorld expects market share concentration within this industry to continue to grow as smaller firms are continually acquired by larger firms and others simply exit the industry. For more information, visit IBISWorld’s Protective Sports Equipment Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures protective sports equipment, such as helmets, pads, gloves and shin guards. Recreational and professional athletes purchase these goods.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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