The Pellucid Perspective - May 2018 - 13

MARKET FOCUS

Detroit fortunes looking up; golf market to follow?
Detroit, MI Metro Core Business
Statistical Area (CBSA)

I

n this monthly section we profile one of the Top 25 US Golf
Markets based on a Pellucid composite score of the golfer
base, supply level and rounds demand. Within that Top 25
universe, we then rank them based on relative health using a
Pellucid weighted scoring system of 8 variables ranging from
Population Growth to Estimated Profitability-per-Available
Round. In this issue, we'll profile the 20th healthiest market,
the Detroit Metro Core Business Statistical Area (CBSA).
For those who follow the national economic news and the
challenges of many states/municipalities, you'll know that Detroit recently successfully emerged from nearly 2 decades of
government financial oversight and control. The magnitude of
that feat is likely not appreciated by any of the folks outside of
Detroit or the various people and organizations that have been
actively involved in that long journey back to solvency and independence. I had the opportunity to do a church work camp
at Cass Ministries in Detroit back in '16 and I was amazed and
humbled by the spirit of the long-time Detroit residents that I
met who were determined to stick with the city, no matter what.
Hopefully the renewed economics and sense of hope will also
translate to more favorable results for local golf operators.
By rounds demand (one of our 3 selection criteria for initial inclusion in the Top 25 list), the Detroit CBSA ranks 11th
among US markets with facility-reported annual demand of
just over 4.4M rounds. (That facility-reported tally counts both
local and tourist play). Looking at the golf consumer base,
we see that Detroit is home to a healthy local golfer base of
roughly 0.6M golfers (ranking 4th in the US, remember this is
only local, resident population, doesn't count any tourists that
are trickling back to the city). That golfer base is served by a
reasonable supply amount of 201 18-hole equivalents (EHE),
producing a healthy ratio of roughly 2.9K local resident golfers
per EHE, well above the national average.
The supply mix vs. the national distribution across Pellucid's five access/value/usage segments is fairly well-balanced
compared to the US average. The Private vs. Public access balance is 23%/77%, which is similar to the national average of
27%/73%. The balance of Value-added golf supply (Private &
Public-Premium) vs. Value golf (Public-Value, Price and Learning & Practice) is 47%/53%, which tilts slightly to Value golf
vs. the 50%/50% national distribution. Within Public-Regulation golf, the distribution between Premium/Value/Price is
32%/49%/19% vs. the national picture of 34%/42%/24%, which
shows that the Public-access regulation supply clusters in the
middle range at the expense of Price (19% Price local vs. 24%
nationally). Remember that in this particular analysis Pellucid
allows the definitions of Premium/Value/Price to "float" across
each of the markets driven by the local market price spectrum,
so the absolute price of golf isn't necessarily revealed by a bal-

www.PellucidCorp.com

Private

PublicPremium

PublicValue

PublicPrice

Golfer Base
- Est. # of Golfers (Ks)
- # of 18 Hole Equivalent Facilities
- Golfers per 18-Hole Equiv.

Learning
& Practice

Detroit, MI
CBSA

Supply Mix
- Private
- Pub-Prem
- Pub-Val
- Pub-Price
- Learn & Prac
Supply/Demand Balance
- '00-'13 Cume Supply Growth/Decline*
- '00-'13 Cume Rds Demand Growth/
Decline*
- '00-'13 Cume Mkt Supply Dilution
(-)/Absorption (+) Level* **
- Avg Ann Rds Velocity (Ks per 18-hole
vs. ks) (EHE)
Rounds & GF Revenue Health
- % Utilization Rate
- Avg. Ann. Rev. per Public
Regulation EHE ($Ks)
- Revenue per Available Round
(RevpAR)

Future
Facility

Tot US

Index
vs. US

574.2 22,900
201 14,672
2,857 1,561

183

23%
24%
36%
14%
3%

27%
23%
28%
16%
6%

85
103
129
90
50

4%
-12%

9%
-12%

43
100

-16%

-21%

75

24.2

26.7

91

47%
56%
$718 $1,155
$14
$19

84
62
74

* Inverse index, lower is better
** Period % Chng in Rds vs. Period % Chng in Supply

Above average level vs. US (Index >105)
Average level vs. US (Index 95-104)
Below average level vs. US (Index <95)

The Pellucid PersPecTive

13


http://www.PellucidcorP.com

Table of Contents for the Digital Edition of The Pellucid Perspective - May 2018

TOC
NGF 2017 industry report released: facts served “sunnyside up”
Baylands Golf Links a win-win-win proposition times two?
Club manufacturer service frustrates green grass customer
April golf weather impact: A sea of red but March utilization hits 60%
Detroit fortunes looking up; golf market to follow?
It is, after all, all about the money
The Pellucid Perspective - May 2018 - TOC
The Pellucid Perspective - May 2018 - NGF 2017 industry report released: facts served “sunnyside up”
The Pellucid Perspective - May 2018 - 3
The Pellucid Perspective - May 2018 - 4
The Pellucid Perspective - May 2018 - 5
The Pellucid Perspective - May 2018 - Baylands Golf Links a win-win-win proposition times two?
The Pellucid Perspective - May 2018 - 7
The Pellucid Perspective - May 2018 - Club manufacturer service frustrates green grass customer
The Pellucid Perspective - May 2018 - 9
The Pellucid Perspective - May 2018 - April golf weather impact: A sea of red but March utilization hits 60%
The Pellucid Perspective - May 2018 - 11
The Pellucid Perspective - May 2018 - 12
The Pellucid Perspective - May 2018 - Detroit fortunes looking up; golf market to follow?
The Pellucid Perspective - May 2018 - 14
The Pellucid Perspective - May 2018 - 15
The Pellucid Perspective - May 2018 - It is, after all, all about the money
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202101
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202012
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202011
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202010
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202009
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202008
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202007
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202006
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202005
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202004
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202003
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202002
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202001
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201912
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201911
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201910
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201909
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201908
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201907
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201906
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201905
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201904
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201903
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201902
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201901
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201812
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201811
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201810
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201809
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201808
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201807
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201806
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201805
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201804
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201803
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201802
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201801
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201712
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201711
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201710
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201709
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201708
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201707
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201706
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201705
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201704
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201703
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201702
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201701
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201612
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201611
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201610
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201609
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201608
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201607
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201606
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201605
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201604
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201603
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201602
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201601
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201512
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201511
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201510
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201509
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201508
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201507
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201506
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201505
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201504
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201503
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201502
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201501
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201412
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201411
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201410
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201409
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201408
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201407
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201406
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201405
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201404
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201403
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201402
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201401
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201312
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201311
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201310
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201309
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201308
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201307
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201306
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201305
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201304
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201303
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201302
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201301
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201212
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201211
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201210
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201209
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201208
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201207
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201206
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201205
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201204
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201203
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201202
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201201
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201112
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201111
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201110
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201109
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201108
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201107
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201106
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201105
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201104
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201103
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201102
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201101
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201012
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201011
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201010
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201008
https://www.nxtbookmedia.com