After a slump in 2009 and another slow year in 2010, it appears golf course business in the U.S. has scored a double bogey as of late.

While the numbers may vary by geographic location, overall total rounds played in 2010 were down compared to the year before – a drop of 2% for public courses and 3.2% for private courses, based on the most recent information published by Golf Datatech in November 2010.

While this obviously presents challenges for golf clubs nationwide, what exactly does it mean for tire dealers who supply those courses? For the most part it’s business as usual: expect steady sales in the near future as the economy continues to recover. And hope that the return of disposable income will bring golfers back to the greens.

“We’re projecting a slight increase in golf cart tire sales in 2011,” says Hank Chang, marketing manager for Kenda Tire USA. “The number of rounds of golf being played continues to decrease. Also, fewer courses are being built. It will depend on economic recovery and the unemployment rate. Golf is a recreational sport; people will play less rounds if they do not have the money to spend.”

Other manufacturers agree – while rounds played continued to sink last year, OE and replacement tire sales in this market were slightly better in 2010 than in 2009.

“Year-over-year comparisons were flat to slightly up in both channels on existing business,” says Brian Preheim, product manager for Carlisle Tire & Wheel Co. “I believe the golf market will come back slowly but steadily and this will be reflected in sales numbers.”

Rick Emmert, national sales manager for Duro Tire & Wheel, reports the company saw strong sales in 2010 in both channels, and says he anticipates more growth, particularly in the replacement market, over the next two to three years.

Staying on Target
One benefit for tire dealers who service the golf course segment – which includes cart tires, in addition to course maintenance equipment – is that forecasting sizes and demand is fairly easy.

“One or two SKUs usually cover the fleet golf car usage, but there is more variety of tread patterns, sizes and ply ratings in servicing the course maintenance equipment,” Carlisle’s Preheim says. “Polling the courses in the area about the type of equipment they use for course maintenance will help focus inventory decisions.”

Taking both OE and replacement channels into consideration, 18 SKUs cover about 70% of the market, according to Duro’s Emmert, who says the tiremaker’s most popular offerings in this segment are its HF273, HF293, DI5009 and HF244.

The primary size needed for golf cart fleets is 18×8.50-8, according to each of the manufacturers poll­ed. Other common sizes include 18×6.50-8, 205/50-10, 215/40-12, 23×10.50-12, 13×5.00-6 and 15×6.00-6.

Popular course maintenance equipment sizes include 26X12.00-12, 13X6.50-6, 22×11-10 and 24×12-12.

As far as technological advancements in golf course tires, the move to radial tires and availability of “no flat” tires are gaining momentum.

Chang says Kenda was the first in this segment to produce a “true radial” with the 205/50-R10 Pro Tour. The tire manufacturer has since added the 205/35-R12 Pro Tour and just recently added the 18×850-R8 K389 Hole-N-One radial tire.

“Kenda supplies approximately 90% of the OE golf car tire/wheel needs,” Chang says. “The number one tire of choice used by Club Car, EZ-Go and Yamaha is the Kenda 18×8.50-8 4pr Hole-N-One tire.”

Carlisle’s Preheim notes the company’s no-flat Reliance front caster tires have been popular on grounds maintenance equipment. “Improvements in no-flat technology and in reducing ground pressure are primary areas of focus,” he says. “Our Links tire used on fleet golf cars stands out for its long­evity and stability. Ultra Trac is valued for its low ground pressure with high load capacity.”

He adds that because golf courses are highly manicured, maintenance departments value tires that will “perform their function without a trace,” which is why application-specific golf course tires feature wide footprints to disperse the load with rounded shoulders and less aggressive tread patterns to protect the turf.

Price is Paramount
When it comes to a tire dealer’s success in this segment, “The same traits that are valued in any business work well here – the availability of high quality, brand name products delivered with efficient, friendly service,” Carlisle’s Preheim says.

“Of course, it’s also safe to assume that inventory availability and quick delivery would be paramount,” says Duro’s Emmert, adding, “The information we’ve gathered is that courses are better maintaining their current golf car fleets and maintenance equipment. This allows them to potentially extend a typical two-year lease period.”

While manufacturers stress a mix of price, availability and service, in the current state of the golf course market, price may very well be at the top of the list, based on insight from one golf course equipment manager.

“Most of the time I look for the cheapest tires,” says Bill Mitchell, of Stone Canyon golf course in Oro Valley, Ariz. “They wear out so quickly that there’s no warranty issue other than a noticeable defect and no real need for service. I shop by price.

“With these tires, it’s considered an off-road situation, so damage – usually from cactus, in our area – isn’t covered under warranty,” he continues. “So most of the time I don’t even worry about service or warranty because it’s usually a driver error – they ran over something they shouldn’t have.”

Mitchell explains that Stone Canyon’s fleet of 85 carts are on three-year leases, and that he usually replaces each cart’s tires two times – once after roughly 18 months of use and again before returning the carts at the end of the lease. He generally buys all the cart tires, as well as tires for 24 additional carts and mowers that make up the maintenance equipment, from S&S Tire in Phoenix.

“Tires are my biggest expense when I’m rotating a lease, because we have to return the carts with more than 50% of the tread left on the tires,” Mitchell says. “We do the first tire change on an as-needed basis, then the second change when we turn the carts in.”

Even in the current golfing downturn, having a large course like Stone Canyon as a client would be a boon for any tire dealer. To boost your business – and profits – in this segment, consider approaching local golf courses to get a better understanding of their needs. When the market picks up in the coming years, as manufacturers expect it will, your dealership will be well-positioned for success.