Page 66 - GBC spring 2015

It’s an inevitable question in the week that follows the annual trek to the PGA Merchandise Show in Orlando. “How was it?” a poor, desperate soul who didn’t escape the cold will ask, but it isn’t an inquiry about the weather in Florida. It’s a state-of the-union query, more to do with the mood of the golf industry in these uncertain times.
I am pleased to report that nobody said anything about, “last person out, turn out the lights” at the Orange County Convention Centre because the party’s over for the show. Apparently, we’ll be back next year. What happens between now and then could be a wild ride, and that makes speculation on what’s ahead in the immediate future so futile. Weather events of the past couple of years have taught this industry how operations’ fortunes and people’s lives can change in the blink of an eye.
While the mood of the in- dustry and conversation within a show booth can only deal with what we already know, the decline in participation for example, it’s the wild cards such as weather that makes specula- tion pointless, although so many are tempted to predict, mostly to be heard than to be correct.
The Parting Shot
Deal With The Wild Cards As They’re Played
If it helps, golf isn’t the only industry facing volatility. Storm clouds have also gathered over the oil business and it has nothing to do with weather. Things change quickly in any business and in the case of the oil industry, there is a big ripple effect on other industries. So, itbecomesyetanotherwildcardfor golf that few speculators really have a handle on.
On one hand, consumers will have more money, so maybe they will play a few more rounds, or take a driving vacation to a golf destination. Certainly, lower fuel costs lower expenses for our machinery and should, in theory, bring down the cost of food and beverage items due to lower delivery costs.
The flip side is a volatile stock market, concern about federal tax revenues and the economies of oil-producing provinces. In January, Suncor announced that it was laying off 1,000 employees and cutting its 2015 budget by $1-billion.
There has been talk of a Canadian recession at a time when the American economy is showing signs of surging ahead after its significant struggles of the past seven or eight years. A year ago, would you have thought we would be talking potential
Canadian recession combined with an American resurgence? With the economy and the weather, it isn’t a case of positive or negative outlook - the only thing certain about the coming year is uncertainty.
I chatted recently with Adam Hadwin, who earned a full exemption on the PGA Tour this year after winning twice in 2014 on the Web.com Tour. I asked him if he had given much thought to FedEx Cup standings or whether he might play in the Presidents Cup in October. His reply was a standard one for many golfers - just play well and those things take care of themselves.
Those are wise words for the industry as 2015 progresses. Concern yourself with the things you can control and deal with the wild cards as they’re played. It works on the course for Hadwin and off the course, where obsessing on the unknown wastes time that can be put to constructive use.
66Golf Business Canada
Ian Hutchinson
Ian is a journalist with 37 years of experience who now operates the Canadian golf industry website Golf News Now at www.golfnewsnow.ca.