Falling under the category of Public Course, Municipal Golf Facilities are owned and operated by the tax-supported entity that owns them, typically a city or county. Municipal Golf Facilities are open to the public always and are known to be more affordable and accessible to beginners. However, despite having carved out their own niche, municipal golf facilities face a lot of challenges, the majority of which originate from their very business model. As golf facility management and golf course maintenance are technical and specialized disciplines, Municipal golf courses typically suffer from a lack of professional knowledge, redundant processes, and unnecessary costs.
As of January 1st, 2021, there were over 970 golf facilities in the state of Florida, with over 1,279 courses. Of these, 99 identify as Municipal Golf Facilities. 27% of these Municipal Golf are managed and or maintained through Facility Management. This is over double the US. Average of 15%, showing a significant reliance on the outsourced model for success. While 27% of Florida Municipal Facilities are outsourcing management, 73% are not, and the results of these choices are striking.
11% of golf facility closures in 2020 were Municipal Courses. Overall, Municipal courses face higher overhead fees than Private facilities and typically perform poorer than their counterparts.
Over 45% of Public facility operators rate their conditions as Very Poor, Poor, or Average. With Municipal Facilities more likely to fail and less equipped to succeed, it’s no wonder this sector is increasingly turning to Facility Management Companies.
While in the decision-making process, a variety of facts and fallacies will arise concerning what a management company is and what they do. Change is scary, so it’s natural that any sort of change can be off-putting, but there’s a difference between change and growth.
There’s the assumption that management companies aim to terminate and rehire the entirety of a facility’s staff upon the beginning of their contract, but this isn’t the case. Management Companies work on the behalf of the facility owner, and therefore carry out the owner’s decisions. While agronomics and maintenance are guided by the management company, the Municipal retains the same level of control it originally had. Your employees are hired by the Management Company, unloading the burden of benefits, payroll, workers compensation, and other HR-related expenses.
The Management Company additionally provides resources such as equipment and machine purchasing, facility enhancements, accounting, vendor networks, and more, depending on the company and the contract terms. Management companies invest in the facility while providing cost-saving resources. Every facility is unique, as are the circumstances of their maintenance and management. Because of this, there’s no cut and dry answer to if outsourcing is the solution you’re looking for. Ensuring the longevity and profitability of your municipal golf facility is always top of mind for a facility operator, but they aren’t always equipped to achieve it this on their own.
In short, the management company works for the municipal while removing the burden of certain costs Management Companies provide services and resources that were previously costly or unavailable while removing the burden of various expenses. Municipal Facilities see high costs in both staffing and benefits packages. Unloading this burden onto a management company can eliminate the expense.
Statistics show that Golf facility management companies can provide cost-saving resources while stimulating revenue and driving growth. Struggling or stagnated municipal facilities may be more equipped to adapt and flourish from an outsourced model than their current insourcing.
If you’re considering a golf maintenance provider, DTE Golf® has made a name for itself as a trustworthy partner and a reliable service provider. For quality, you can see and growth you can feel, reach out and get to know us today.