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Gym,Health&FitnessClubsintheUS June 2011
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Working out: Business will stay strong as demand from health-conscious consumers grows
IBISWorld Industry Report 71394
Gym, Health & Fitness Clubs in the US
June2011
2 AboutthisIndustry
2 2 2 2 Industry Definition Main Activities Similar Industries Additional Resources 16 International Trade 17 Business Locations
TaylorHamilton
30 KeyStatistics
30 Industry Data 30 Annual Change 30 Key Ratios
19 CompetitiveLandscape
19 Market Share Concentration 19 Key Success Factors
31 Jargon&Glossary
3 IndustryataGlance 4 IndustryPerformance
4 4 5 7 Executive Summary Key External Drivers Current Performance Industry Outlook
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Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 42.8 million by 2011. This trend has resulted in soaring demand for fitness activities, and industry operators have capitalized on this growth by expanding establishments in size and number.
ExecutiveSummary | KeyExternalDrivers | CurrentPerformance IndustryOutlook | LifeCycleStage
Youth and baby boomers will aim to stay fit, supporting demand for gyms and health clubs
Still, the industry has not been completely recession proof. In 2008 and 2009, demand for gyms and health clubs weakened as consumers cut back on discretionary spending. However, compared with other industries, the Gym, Health and Fitness Clubs industry has remained remarkably resilient, as increased leisure time and boosts in health and morale from exercise have kept the industry highly competitive. Gyms and health clubs have broadened
their markets and are offering value to gym-goers in a bid to retain membership numbers throughout the
Upon arrival, I estimated about 15-20 personal scattered throughout the room on various body equipment. I noticed that I was the youngest person there; everyone else (by the looks) was ranging from late 20’s to early 50’s. The first significant aspect that I always realize is that there are more males than females, typically a 4:1 ratio. The diversity of race/ethnicity was noticeable but not really a concern towards the atmosphere of the gym. Before I started the observations I did run on the treadmill so that the gym visit wasn’t a total waste. Afterwards, my observation was done in the corner with the mats, while I stretched for twenty-five minutes.
The rise of the U.S. health club industry can be traced back to the 1980s and 1990s when the majority of health clubs emerged. By 2004, this $14 billion industry claimed 41 million members. Although the health club industry operated in a perfectly competitive market, several prominent key players gained large market share, including Bally Total Fitness and 24 hour Fitness. This perfect competition encouraged entry of smaller emerging firms into the industry. In 2004, the health club industry consisted of 26,000 clubs in the U.S. Of this growing market,
In the United States of America, being fit and active is an important value of the culture. Many employers give out free gym memberships or encourage their employees to take a longer lunch to go be active. According to Business Insurance, many companies in New York have been organizing midday dance parties to give their employees some time to get out from behind their desks and move. Feeling good about the way one looks can be an important part of exercise because it promotes higher self-esteem. There is no longer a need to wait until you get into shape to look good when companies like Lululemon are now producing exercise wear that is fashionable. An industry professional was quoted as saying “Our customers desire clothing that they can work out in and then head out into the world.” If clothing fits well enough, then people are going to want to wear it all the time. Although fashion trends are ever changing, Lululemon is always creating new products to keep up with them. According to The Bureau of Labor Statistics, the retail industry is considered a high growth industry. The retail trade sector is the nation’s largest employer. The growth rate of real output for the retail trade sector of the economy is 4.6% annually. From 2004 to 2014, the real output grew from 1.1 trillion dollars to 1.8 trillion dollars. This can be attributed to new apparel companies always entering the
projections for the baby boomer generation is that they are expected to remain actively fit
Fitness is in. The percentage of people belonging to health clubs and gyms has doubled over the past 20 years. More growth is expected, fueled by an aging Baby Boomer generation in search of eternal youth and the reality that regular exercise can prevent or control diseases that are driving health care costs relentlessly upward. The 24/7 fitness opportunity is the newest model of fitness centers today.
How will your economic situation, motivation, accessibility to fitness resources, and ability to participate change as you go to college or enter your career?
Psychographic profile for customers most likely to use the gym’ s services: (Min. 200 words required)
The health club industry has continued to see an increase in the amount of health clubs/fitness centers. Since 1992, the United States has seen the number of health clubs increased by almost 40 percent, from 12,635 to 17,531 facilities. It has also seen an increase in membership by almost 60 percent, from 20.8 million to 32.8 million. What this all means for Fun 4 Life Fitness Center, LLC is that the market is ever growing which translates to more competition. Most fitness centers offer a variety of services to address the needs and convenience of the customers. Some of these services includes personal trainers, facilities with state-of-the-art equipment, and programs that cater to mostly every demographic.
The one dimensional approach of generating leads through the clubs is rapidly developing into multi channel sources, via club and central sales/ marketing activities. The predominant focus areas are digital marketing on the internet to closed user groups, building the business to business (B2B) field sales force and the use of Membership Exchanges.
There are also some threats for Les Mills, as more gym arise the more competitors they have, the new cheaper gym may lead to the clients moving to the other gyms, so it is very important for Les Mills to provide some special deal for the younger age group and students, or create a different membership card for higher-class can enjoy and use more equipment like the SPA or the private room.
Issues containing weight control, fitness, and nutrition are a prime subject in today 's culture. Completive companies are existent and they have many different levels of health clubs and fitness centers; this contains everything thing from price, equipment, staff , activities and classes offered. In the present time, topics being subjected through the industry are; disease control and research, diet and fitness trends of 2005, performance running, life balance, eating and sleeping right, working out according to personality and foods to lower cholesterol. Many people from The States are on a constant search for what is new, healthy and trendy. Health and fitness clubs were put in our society to make people feel and look good, and now not only are they there for that but they are making a large profit as
In today’s busy world, it can be hard to find the time to even think about one’s fitness, let alone actually do anything to maintain it. The average person has school, work, family, pets, and many more distractions in their life to ensure their fitness is left on the backburner. However, when the thought of exercise does eventually enter their mind, the thought that often comes forefront is that of the gym. The concept of a gym is simple, populate a building with the necessary equipment for a variety of physical activities, attracting people who want to get that perfect body or even just get back in shape. However, many people who have never frequented a gym often come up with a plethora of reasons not to go.
“Mobridge, South Dakota, founded in 1906, is a city with a rich history and an economy driven by tourism and recreation.” (City of Mobridge, South Dakota 2016) Missouri River Pins and Pizza was built in 1998 to enrich the lives of the youth in Mobridge, South Dakota. It was a bowling alley until 2005, when it burned down. Many years ago, I remember celebrating not only my birthday, but many other of my friends’ birthdays there. They had the best pizza ever. When it burned down, it left and still leaves no place for the youth to gather. Mobridge no longer attracts many families and the youth are turning to crime as their only pastime it seems nowadays. The best solution to remedy these problems is to build an activity center attached to a fitness for all ages of Mobridge and surrounding communities to gather, keep obesity rate down and mostly keep the youth out of trouble.
In the past, it seems that people were more active than they are today. The types of jobs that people did were different, often being more physically demanding. Plus, fewer people owned cars and so they had to either walk or cycle everywhere. Exercise was something people did without necessarily having to think about it. They just got out on their bike or walked, whereas now exercise is viewed as somewhat of an inconvenience that you have to get dressed up for and take time out of your day to do. That is why so many people join a gym – because they think joining it will give them
The sports and fitness club industry is a booming business that produced over $21.8 billion last year, which is an increase from 20.3 billion the prior year, and is projected to continue its current trend according to gyminsight.com. All-Star Sports