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First Off
“The Show” Reflects Guarded Optimism
Aisles were packed and business was
brisk during the PGA Merchandise Show.
orrisome economic indicators
Wabound, including a fourth
quarter GDP shrinkage that puts the
United States’ economy on par with
Greece in terms of growth, government
dependency and dept. But you’d
never have known it from walking the
floor at the annual PGA Merchandise
Show in Orlando in mid-January.
“The Show,” as industry insiders
call it, filled the massive Orange
County Convention Center, and
golf professionals, club managers
and industry executives mingled for
three days in an atmosphere that was
surprisingly energetic and optimistic.
Booths were full from stem to stern,
and many of golf’s elite personalities
strolled the aisles. “This is one of the
busiest I’ve seen in awhile,” said Adam
Barr, CEO of Miura.
It was also one of the most positive
in several years. As Scott Hennessy,
president and CEO of True Temper,
said, “I think the right term is ‘cautious
optimism.’” But everyone in
attendance agreed that it existed.
“We’re certainly seeing it in our
bookings,” noted John Baker, managing
partner of Haversham and Baker
Golf Expeditions. “For the last several
years we’d seen a drop-off like everyone
else, but that’s turned around.”
Admittedly, companies like H&B
are somewhat insulated from economic
downturns because its clients reside
quotable quote
“WE NEED TO DO EVERYTHING WE CAN TO BUILD
INTEREST IN GOLF FOR THE NEXT GENERATION.
WE NEED TO KEEP THE GAME FRIENDLY AND FUN.”
ANNIKA SORENSTAM, 10-TIME LPGA MAJOR CHAMPION, DURING HER KEYNOTE ADDRESS AT THE 2013 PGA MERCHANDISE SHOW
on the high end of the income scale.
However, Baker has seen an increase in
business across the board.
Equipment manufacturers,
meanwhile, used the PGA Show as a
platform to showcase new products,
connect with partners, and provide
educational opportunities. “The ultimate
measuring stick of our success is
the response we’ve received from our
partners, which has been extremely
positive,” said Joe Gomes, director of
communications for Titleist.
Some of the optimism could be the
natural outgrowth of the revenue upticks
manufacturers realized last year—a
function of a mild winter and a thawing
economy—or the fact that companies
and individuals have been hoarding cash
and improving their balance sheets since
the Great Recession of 2008. But some
of it must also be attributed to expectations
for the year ahead.
“Look, don’t kid yourself, golf is a
long way from being healthy, especially
in the U.S.,” said David V. Smith, founder
and CEO of Golf International Projects,
a development and golf consulting
firm out of Los Angeles. “But there are
pockets within various markets where
things are turning around, and there’s
always the highest end, which is going
to continue to march along unfazed.”
Even so, Baker remained somewhat
bullish, particularly given that his
booth was filled with people anxious
to talk about high-end golf trips to
Ireland and Scotland. “It’s certainly a
good sign to see this many people,”
he said. “The crowds are back and
they aren’t walking with their
heads down anymore.”
That sort of anecdotal evidence
isn’t as telling as a quarterly earnings
statement, but the positive energy on
display in Orlando was a good sign,
at least at such an early stage of the
year. —Steve Eubanks