February 23, 2024
Tee Time’s On: Suppliers Say They’re Good on Golf Ball Stock
A tragic fire at the factory of a major ball producer last year triggered fears of a global shortage, but industry providers say their inventories are ample.
With winter nearing its wane, tee times are soon to accelerate throughout North America. But will there be enough balls to keep golfers on the greens?
The answer, at least from a supply perspective in the promotional products market, is “yes,” though there could be limited shortages in some SKUs in the broader golf ball supply ecosystem, according to promo executives.
In September 2023, a fire in Taiwan killed nine people and destroyed the factory of a company that reportedly produced about 20% of the world’s golf balls – a tragedy that triggered fears that a global ball shortage would strike in the months ahead.
The concerns were germane to promo, as the industry sells customized golf balls to buyers across a range of industries for everything from golf tournaments to client-gift packages. Such sales start to increase dramatically as March progresses into April – and beyond.
“Spring is typically one of the busiest seasons for golf ball sales in the promotional space,” Adam Andrus, marketing manager at Ball Pro (asi/38120), a supplier that specializes in golf and sports-related products, tells ASI Media. “Companies and charitable organizations hold golf tournaments or golf events. Many in the southern regions of the U.S. start late winter or early spring, while in the northern parts they’re beginning to prepare for their events.”
A tragic fire killed nine people and destroyed a factory that produces approximately 20% of the world's golf balls. What's that mean for golf ball product supply in the #promoproducts industry? Some answers:https://t.co/VvCXDyrcp8
— Chris Ruvo (@ChrisR_ASI) September 28, 2023
‘Amply Stocked’
On the doorstep of this annual demand surge, promo suppliers that sell golf balls say that, despite disruption experienced by some vendors due to the fire, their inventories are robust and they’re ready to meet distributors’ needs.
“We are well stocked,” says Britney Godsey, chief revenue officer at Gold Bond (asi/57653), a supplier that inventories and decorates golf balls at its facility in Hixson, TN. “We have taken proactive measures to ensure favorable stock availability. We believe we have positioned ourselves well to meet the demand of this coming season.”
The story is similar at other promo golf ball purveyors like Top 40 supplier NC Custom (asi/44900) and Ball Pro.
“We started planning when news of the factory fire in Taiwan broke,” Andrus says. “We stocked up on golf balls that we believed could be affected. We currently have plenty of stock to support our customers and are working closely with our vendors to keep Ball Pro stocked.”
$1.31 billion
Value of the global golf ball market in 2022. It’s anticipated to grow at a CAGR of 2.4% from 2023 to 2030.(Grand View Research)
“We are not having any issues with supply,” reports NC Custom President David Miller, a member of Counselor’s Power 50 list of promo’s most influential people. “We are amply stocked.”
While proactive sourcing and strong partnerships with vendors have been key to staying stoutly inventoried, promo suppliers give credit to ballmakers for nimbly adapting to the disruption caused by the blaze – a dexterity they say has kept production cranking.
“The supply chain challenges of the pandemic made manufacturers and vendors more fluid,” Andrus shares. “They have learned to move SKUs to different factories and have backup plans.”
Says Godsey: “After the fire, most manufacturers responded swiftly and diligently reallocated production to alternate facilities to continue meeting demand…. In Gold Bond’s experience, any shortages have been minimal.”
Accustomed to Volatility
As Godsey alludes to, while promo suppliers report being topped up on golf balls, there remain some supply issues to keep an eye on.
They pertain particularly to certain two-piece style golf balls, which were those most affected by the fire. Also, demand that exceeded forecasts has resulted, in instances, in manufacturer allocations and delays for getting in stock certain balls, such as the Titleist AVX.
“The AVX has faced delays of approximately two months due to exceeding demand,” Godsey shares. While Andrus didn’t want to disclose brand names, he says he knows of two “SKUs experiencing a shortage that will be challenging to get in 2024.”
“We’ve gotten accustomed to the volatility. We have learned to adapt.” Adam Andrus, Ball Pro (asi/38120)
Meanwhile, Godsey cautions that it’s possible that not all firms that sell golf balls are as deep in inventory as they’d like to be, so “as order volumes escalate over the next couple of months, fluctuations in stock levels may become more apparent if there are existing constraints today” for some.
Still, even with potential issues in play, the golf ball variety and depth of inventory available to promo distributors from industry suppliers should be sufficient to meet end-buyer demand this season, executives say.
“We’ve gotten accustomed to the volatility,” states Andrus. “With COVID came supply chain issues. Then there was a shortage of Surlyn – material used to make ball covers. And now, the tragic factory fire. We have learned to adapt.”