News story

Report: Sports Bucking Downward Economic Trend

Oct. 1, 2008 – Jack Sirard contributing writer

By Jack Sirard

Softball News Report

With the national economy stumbling along – some say on the verge of a recession – the nation’s sporting goods industry seems to be holding its own.

And with a few notable exceptions, the industry looks to continue that trend into the future.

A recent report by the Sporting Goods Manufacturers Association notes that sports, fitness and outdoor activities are recession resistant.

Tome Cove, president and chief executive officer of the SGMA, says that “the recession-resistant theory is based on the idea that these activities give comfort or relief or at least distraction from the concerns of daily life and people won’t give them up because of a recession.”

He points out that most of these activities including softball don’t really cost a lot of money. “Runners won’t stop running, parents won’t deny their daughters a new softball glove, people will keep going to the gym and campers will keep camping, although at a campground closer to home,” he says.

Certainly those playing senior softball aren’t about to give up their game or reduce their purchases of needed gloves, bats and balls.

As the nation’s population continues to age, the SGMA sees some changes in spending habits. “Between 2000 and 2020, the population aged 45 and older will have increased 42 percent while the number aged 5 to 19 will be only 8 percent larger. This should help the fitness industry, but mean slow growth at best for team sports,” the report said.

The report also noted that while there has been a slowdown in the number of new health clubs, the clubs are attracting more and more seniors. In 1987, only 5 percent of club membership were those aged 55 and up, but that jumped to 19 percent by 2005, the report said.

The SGMA reported that participation in slow-pitch softball is in long-term decline, losing casual and league players.

However, Terry Hennessy, chief executive officer of Senior Softball USA, noted that “the sport is growing among senior players on an annual basis. This year, we have seen an increase of about 7 percent in both the number of players and teams.”

Hennessy said that a particular bright spot has been in the women’s age 40 division. “This division is growing rapidly and will continue to do so for at least the next decade because of the influx of women who began playing fast pitch 20 years ago are now coming into our sport.”

The SGMA Report noted that there are two notable exceptions to the recession-resistant theory and that directly affects two of the largest categories in the sporting goods field – athletic footwear and sports apparel. These two tend to be more influenced by fashion trends than sports activity.

“The other is that the luxury, high-ticket side of our business might suffer as people decide that now just isn’t the time to spend $3,000 for a treadmill,” he says.

In its report, the SGMA notes that baseball/softball sales have continued to grow on an annual basis since 1998. In that year, the SGMA reported that the nation spent $350 million on a wholesale basis and that has continued to rise year over year to a record of $534 million in 2007. This year, the SGMA projects sales of $536 million on a wholesale basis.