Industry Analysis & Industry Trends
The Gyms and Fitness Centres industry has grown strongly over the past five years while undergoing considerable structural change. The emergence of budget 24-hour gym chains has stimulated the majority of industry growth. Franchises like Anytime Fitness and Jetts Fitness have undergone exceptional growth over the past five years, attracting new customers with their affordability and accessibility. Rising health consciousness and high obesity levels have triggered further growth in gym memberships. However, many consumers are substituting their expensive full-service gym memberships for more affordable 24-hour gym memberships, which has slightly restricted growth. Industry revenue is expected to grow at a compound annual rate of 9.3% over the five years through 2016-17, to reach $2.1... purchase to read more
Industry Report - Industry Investment Chapter
The Gyms and Fitness Centres industry exhibits a moderate level of capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $6.80 is spent on wages. Fitness centres face particularly high equipment expenses in the form of weight lifting, resistance training and cardiovascular training equipment. For most businesses, investment in capital is also reserved for cheap and freely available communications equipment (i.e. computers, mobile phones and laptops with remote internet access). Some companies purchase the premises that the gym is situated in, heavily increasing depreciation expenses.
The industry has historically been dependent on labour for exercise instruction on a personal, class-based and broader level... purchase to read more