35 Taiwan Sporting Goods Manufacturers Association and individuals. Three years of disruption, uncertainty, and inability to forecast will take its toll. While cumulative single numbers are instructive, the best insights come from analysis of the key factors influencing our business. Inflation had an overriding impact on our industry as well as the national economy, with rising costs of inputs throughout the supply chain increasing prices passed on to consumers. Too, consumers faced dramatic price increases in basic staples like gas and groceries. If not abated, this dynamic will adversely influence our consumers’ inclination to purchase our products, which generally are discretionary. Inventory was another huge story in 2022 as the pendulum shifted from supply chain shortages in 2021 to advanced orders, full production, and smoother deliveries in 2022. Inventory levels grew across the industry, with 67% of our responding companies reporting higher inventories in 2022. Individual company profitability trends show a mixed bag. 55.2% of companies said they increased profitability last year – second best showing since 2015 – while 28.4% experienced decreased profitability. The “decreased profitability” figure is higher than pre-pandemic levels. Last year was a difficult year to categorize. Sports and fitness companies continued to meet strong demand for their products and collectively realized healthy annual growth. At the same time, many SFIA member companies reflected high concern around uncertainties in the marketplace that lasted much longer than anyone anticipated at the beginning of 2022.
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