Further recovery in the US economy and a growing number of golfers will support demand
Los Angeles, California (PRWEB) December 19, 2011
Over the five years to 2016, IBISWorld forecasts that the number of golf carts sold in the United States will increase at an average annual rate of 3.2% to about 76,685. Further recovery in the US economy and a growing number of golfers will support demand. IBISWorld has released a report on the future of gold cart manufacturers in the United States and can be purchased online from its website. Furthermore, industry growth will increasingly depend on demand from foreign economies, particularly from rapidly developing countries. The industry will continue to seek growth through the development of new products that attract customers with higher-quality inputs, increased performance (e.g. battery life) and improved technologies that create more energy-efficient and environmentally friendly carts. For this reason, industry research firm IBISWorld has added a report on the Golf Cart Manufacturing industry to its growing Lifestyle Products Manufacturing collection.
The Golf Cart Manufacturing industry has been on a bumpy ride. Golf cart demand depends on golf courses and country clubs; when golfers reduce visits, the effects reverberate up the supply chain to manufacturers. The bursting of the housing bubble, the financial crash of 2008 and the subsequent recession led to a sharp rise in unemployment, which adversely affected golf cart manufacturers. The industry was dealt a severe blow in 2009, when revenue sank 28.8%. After such a steep drop, revenue bounced back markedly over 2010, supported by export market demand for golf carts. Conditions have continued improving over 2011, with revenue growth of 12.4% to $588.1 million anticipated for the year, marking an annualized growth rate of 0.2% since 2006.
Golf carts (i.e. golf cars or self-propelled golf carts) are typically used on golf courses and country clubs. However, they are also used in other facilities, such as retirement villages or vacation resorts, is also strong. Because of its dependence on golf demand, golf cart purchases have been hurt over the past decade. Declining golf participation rates among Americans and the related weakness in the establishment of new golfing facilities across the United States negatively affected industry demand.
Electric golf carts are considered the first mass-produced electric vehicles for private consumer use. While gasoline-powered golf carts were eventually developed, the Golf Cart Manufacturing industry has increasingly shifted back to purely electric models over recent years. Rising fuel prices, noise pollution, emissions regulations and general customer demand for more energy-efficient and environmentally friendly vehicles have forced producers to develop new models. This trend will likely continue over the next five years, particularly as current electric battery-powered models still achieve less usage time and distance than gasoline engine carts.
Industry market share concentration in the Golf Cart Manufacturing industry has increased during the past five years, with the industry's largest firms, Textron and Ingersoll Rand, who have pumped money into their respective subsidiaries
According to IBISWorld analyst, Brian Bueno, over the five years to 2016, IBISWorld projects that the number of golf carts sold in the United States will increase at an average annual rate of 3.2% to about 76,685. “Further recovery in the US economy and a growing number of golfers will support demand,” says Bueno. “Though the participation rate is projected to remain stable at about 8.8% of the population.” Industry growth will increasingly depend on demand from foreign economies. From 2011 to 2016, IBISWorld projects industry revenue will grow at an annualized rate of 5.9% to $783.1 million.
For more information, including latest Industry trends, statistics, analysis and market share information, download the full report from IBISWorld on the Golf Cart Manufacturing industry
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