HOW ARE SUPPLY CHAIN SHORTAGES IMPACTING THE GOLF CAR INDUSTRY?
The golf car industry is seasonal - we know this. Traditionally, golf car sales rise right before the summer months and during tax refund season. Everyone in the industry learns
how to navigate these fluctuations. However, the 2020/2021 period has turned the golf car industry on its head with new challenges.
Golf Car Popularity Is On The Rise
After multiple levels of lockdown over the past two years, people are getting outside more. Driving golf cars and LSVs is a preferred way to enjoy the outdoors and visit with neighbors while remaining at home and social distancing. Many families aren’t spending money on big summer vacations and are instead purchasing “toys” like golf cars, RVs, and boats. The dramatic increase in demand is creating
a shortage, especially in used golf cars, and driving up prices. It is a seller’s market in the golf car industry. This is great news, if you can get your hands on golf cars.
Manufacturing Shortages Persist
During 2019 and 2020, manufacturing plants around the world closed for extended periods of time in response to COVID-19 outbreaks. Additionally, many manufacturing plants immediately switched to producing PPE products to assist with hospitals in need. Unprecedented manufacturing delays occurred and we are still experiencing the impact today. Seat cushion foam, seat wood backing, and computer chips are just a few necessary parts that
are difficult to get in recent months. The big golf car companies, E-Z-GO, Club Car, and Yamaha have waitlists for new golf cars. Customers who want to add upgraded accessories will have to wait an additional 18-20 weeks in many cases.
Used Golf Cars Are Difficult To Find
Manufacturing delays associated with purchasing new golf cars are preventing golf courses from ordering new fleets. As a result, golf courses are not releasing their existing fleets into the used golf car market. Custom golf car builders rely on these used fleets to build their custom used golf cars. A shortage of used golf cars coupled with higher demand is driving up prices for custom golf car builds. Plus, many custom golf car parts have extended wait times due to production and shipping delays.
The Suez Canal - The Cherry On Top
Just as US manufacturers were getting back up and running, the Ever Given got stuck in the Suez Canal, grinding maritime shipping to a halt for six full days. The ripple effect of that catastrophic delay will be felt for the foreseeable future. It is reported that several hundreds of thousands of golf car parts were delayed as part of that mishap.
What Does This Mean For The Golf Car Industry?
Although it seems like overall sales should be skyrocketing, there will actually be modest growth. It was originally forecasted that the golf car industry would grow by at least 7% year over year until 2026. That estimate has been revised to 4% as a result of the supply chain issues. Low inventory, high demand, and limited access to golf car
parts has created a challenging time for the golf car industry.
If you are a golf car mechanic, you are one of the most valued
employees in the market right now. With the gap between supply and demand, a golf car mechanic who can maintain a fleet and extend its life for at least one more year is invaluable.
The challenges we are facing during the summer of 2021 are expected to have a ripple effect for years to come. The most sage advice is to simply be patient. Encourage your customers to be patient. Invest in golf car maintenance education and keep existing fleets running for as long as possible. Smart golf car mechanics will bring innovation, even when parts are difficult to find. Hang in there - we are all in this together.
