Finding Market Growth Opportunities in Issues Facing Cities and Municipalities
In this article we look at the opportunities for golf car-type vehicles which may arise when cities and municipalities address problems of housing, congestion, and the environment.
Focus on office to residential conversions
The move to revitalize urban centers by converting office space to residential units is surging across the country, not only in major cities such as New York, Chicago, and Los Angeles, but also in smaller cities, such as Austin, Texas. The movement is sparked by the dearth of affordable housing, and quite possibly by the increase in homelessness, which tends to be concentrated in urban areas.
Stories about these conversions efforts often focus on issues of construction cost, reform of zoning regulations, and providing the necessary funding incentives, and do not put much emphasis on the impact on transit systems and delivery services.
Moreover, in parallel with changes in the urban landscape is the heated competition among major package delivery service providers, e.g., Amazon, USPS and Walmart in the market for same day delivery capabilities
Opportunities in urban changes?
With urban centers becoming even more densely populated as a result of these conversions, the burdens on personal movement from point A to point B, as well as short distance delivery services are clearly going to be impacted. The competition among package good delivery companies is likely to be event more intense. Is there an opportunity for golf car dealers and manufacturers arising out of this rapidly evolving urban environment?
The online newsletter, Smart Cities Dive, is an excellent resource for tracking the development of office conversions. This was the resource used for the following relative to Austin.
Austin, TX deals with housing shortages
The city of Austin is attempting to deal with a housing shortage through rezoning and changing housing regulations within its jurisdiction. The principal aspects of this are:
• Doing away with parking requirements;
• Allowing accessory dwellings on single family properties.
The result is a significant increase in population and housing density in the city. According to a Pew Research these reforms have resulted in the addition of over 120,000 units to the city’s housing stock. One of the results of this appears to be a rise in vacancy rates. According to Realtor.com the current vacancy rate is 13.8%, and according to Iron Rock Properties, the rate is 14.2%. This is in contrast to a vacancy rate in 2021 of 3.9%, according to Apartment List.
Do these changes point to opportunities for the golf car market? This is the main question addressed in this article.
Greater urban density implies opportunities for market growth
A quick look at Club Car’s directory of dealers in the Austin area indicates that the company has five authorized dealers within a roughly 50 mile radius of Austin. These dealerships are well positioned geographically to take advantage of emerging needs in the city. E-Z-GO for its part, has seven dealers in the area, while Yamaha has a number of dealers in the area, as well.
To reiterate, the increasing density of Austin, which is likely to grow, given the vacancy rates cited above, is very likely to have a measurable impact on the city’s transportation and short-distance logistical systems.
Here are the questions I would address to a sample of the dealers in the area:
• Have you actively investigated possible opportunities in the Austin metropolitan area?
• Specifically, have you seen an opportunity to put your golf cars into the short distance, e=mobility market in Austin?
• Have you looked into the possibility of collaborating with some of the big box retail centers for same day delivery services?
• Are there any design or accessory recommendations you would make to your authorizing manufacturer to better serve high density metropolitan markets, such as Austin?
• Are there any initiatives you would like to see from corporate manufacturers side that could aid you in opening up these markets?
Multifaceted approach needed
For most dealerships, and for most of the active manufacturers in the industry, developing a metropolitan market which non-golf related is new and unexplored territory. To effectively explore the possibilities a combination of players will be required, namely dealers, manufacturers, and a facilitator agency.
Dealers are the public face of the industry and being locally-based they will be the source of critical on-the-ground market intelligence Manufacturers will provide strategic focus and quite possible dedicated sales teams that can concentrate on market development;
What is meant by the third factor, a facilitator? A metropolitan market presents complexities that are foreign to both dealer and manufacturer. The essence of the complexity is the multiplicity of stakeholders that are involved. Among these stakeholders are city officials across quite possibly several difference departments of government, as well as elected officials. IN addition there could well be neighborhood associations and advocacy groups to deal with. It is also quite likely that it will be necessary to collaborate with other private sector companies both to secure the business and run it effectively. Some examples would fleet managements technology companies, companies providing ADAS expertise, and logistical arums of big box companies and warehouse providers.
Particularly with regard to the interface with city officials and advocacy groups, the presences of a broad-based trade group could be highly useful. It just so happens one is available.
Low Speed Vehicle Dealers Association provides a key link in the chain of market development and sales
The Low Speed Vehicle Dealers Association (LSVDA), launched at the 2025 PGA Show provides a key interface between the industry and the public. The LSVDA ideally suited to deal with local concerns of stakeholders and with various regulatory issues that are in plays. These latter issues must be addressed on all levels, local, county, state, and national, as they imagine and affect local area markets.
The LSVDA was created, in part, to deal with these issues and you can get more information on the full scope of goals, interests and activities at www.LSVDA.com.
Contact the Author: Steve Metzger at smetzger@smallvehicleresource.com. Or check out our website at www.smallvehicleresource.com, where you will find an extensive database of vehicle models and can make side-by-side comparisons of vehicles based on a full set of specifications.
