Industry Analysis & Industry Trends
The Boxing Gyms and Clubs industry has been stagnant over the five years through 2012-13. Boxing gyms and clubs have traditionally been tied to competitive sports, with many running competitive sparring tournaments. Over the past five years, revenue has struggled to remain afloat as boxing and other forms of martial arts have become less popular as competitive sports. IBISWorld expects this is largely due to the time commitment involved in organised participation and competitive boxing, which is creating a significant hurdle for participation by time-conscious consumers. The fear of injury has exacerbated this trend, with consumers fearing time off work or study to recover. As a result, industry revenue is expected to decrease at an annualised 1.0% over the five years through 2012-13... purchase to read more
Industry Report - Industry Investment Chapter
The Boxing Gyms and Clubs industry has a low level of capital intensity. This is largely due to the heavy focus on service provision, with boxing and martial arts instructors accounting for the majority of labour costs. Administration and general staff are expected to only account for a minor proportion of costs. This is typical of a service-based industry, especially as gym and club operators shift away from the sale of merchandise.
IBISWorld uses expected depreciation expenses and labour costs to calculate the labour-to-capital ratio, which is expected to be 1:0.5. This means that for every $1.00 paid as wages, only $0.05 is required as capital investment, suggesting a low emphasis on capital investment... purchase to read more