Industry Analysis & Industry Trends
Strength in numbers
The industry took a hit during the Great Recession when consumers tightened spending on industry memberships, instruction and merchandise. The industry is turning around, though, due to increasing disposable income and boxing interest due to the growing prominence of professional boxing. Publicity for the sport is driving new gyms and clubs to specialize in boxing and is helping such businesses increase profitability. Furthermore, several boxing gyms and clubs are aggressively seeking new franchisees to expand their market reach.... purchase to read more
Industry Report - Industry Investment Chapter
The Boxing Gyms and Clubs industry is expected to have a moderate level of capital intensity. Wage costs account for about 25.7% of industry revenue and capital costs (represented by depreciation expense) account for 4.5% of revenue. As a result, for every $1 that is spent on labor, $0.18 is spent on capital. Capital costs typically include the cost of boxing equipment (e.g. bags and rings), buildings, furnishings and computers. Nevertheless, labor costs are higher, because of administration, training, supervision and maintenance requirements.
Boxing gyms and clubs seek to minimize their labor costs by employing a part-time labor force and employing instructors and trainers on an as-needed basis. The... purchase to read more