David Pattison: 'businesses are at the crossroads'
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“Growth in the golf courses sector in 2007 has been minimal (1.8 per-cent), in line with our predictions at the start of the year, where we foresaw that increased competition in the market would hamper growth. A third of companies actually saw their sales decline but it's important not to confuse sales with profit. Some smaller firms, with a turnover of £3m or less, lost out on sales but still enjoyed healthy margins by keeping their costs under control and carving out a specialist area in the market. These firms have managed to do very nicely by trading in niche products."
He states that if courses are setting a budget for 2008, they should aim for a growth target of at least 2.1% but expect to beat this with a combination of imagination, forward thinking and spotting the opportunities others have missed.
“With pressure on sales, some companies will need to cut costs in 2008, which often sadly translates into job losses. Our advice is to reduce costs as part of a planned long-term strategy, rather than doing so in panic mode. Don't be too hasty - 2007 was not a bad year overall, with margins averaging 1%," says Mr Pattison.
He adds that anyone who is already finding it a struggle is likely to experience even tougher times unless immediate measures are taken to reduce costs and improve margins. Any company with escalating debts will certainly find it difficult to stay competitive, and even in some cases to survive.
Tell us on the forum how your local course or golf club is facing up to the threat of a stringent economy. Are any new measures in place? Is it investing in new equipment, pushing up its fees, trying to attract more society visitors? Or is it cutting back on resources and course maintenance?
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