Industry Analysis & Industry Trends
Even in the midst of the economic downturn, the industry has maintained steady growth, with membership rates growing consistently and profit remaining solid. Demand for gyms and health and fitness clubs will continue to rise over the next five years, as the general public becomes more health-conscious and the aging population places a greater emphasis on staying fit. In particular, growth in household incomes will positively affect businesses, leading operators to expand into larger facilities... purchase to read more
Industry Report - Starting a New Business Chapter
Overall, barriers to entry are relatively low. Prior to the onset of the global financial crisis, operators successfully obtained financing from a range of sources, including financial institutions, landlords, equipment manufacturers, private equity sources and the public capital markets. This financial support changed in late 2008, and tight credit markets will continue to limit further expansion by many operators over the short term.
Leasing operations provide a relatively lower cost basis for entry. Additionally, average wages in the industry tend to be low, as the staff is typically unskilled. Equipment costs are relatively low as well, and have long life spans. Many start-up gyms will use second-hand exercise equipment to cut down on costs... purchase to read more