Los Angeles, CA (PRWEB) July 25, 2012
The Shooting Ranges industry is characterized by long-term trends that have restricted revenue growth for much of the past decade. A slow, but steady, rise in the median age of the population, coupled with a move away from rural areas, has reduced the industry's available market. Still, the rise in consumers' free time during the recession buoyed the industry. “As unemployment climbed, time spent on leisure and sports also increased, leading to revenue gains of 2.3% and 2.9% in 2008 and 2009, respectively,” says IBISWorld industry analyst Nikoleta Panteva. As a result of these gains, industry revenue has grown at an annualized rate of 0.8% from 2007 to 2012. But as the economy chugs into recovery, free time becomes scarcer and demand for the services of shooting ranges wanes. IBISWorld expects industry revenue to decline by 0.9% in 2012, bringing the total to $559.8 million.
The industry's relatively strong performance over the past five years also translated to higher profit margins and expanding locations. Profit margins (measured as earnings before interest and tax) grew from 5.9% in 2007 to a high of 6.5% in 2009. Since then, however, they have dropped to 6.2% of revenue as free time has declined and competition from alternative sporting and entertainment activities has grown. A similar trend is evident in the number of industry locations, which have increased at an annualized rate of 0.4% to 3,156. The next five years look less promising for operators in the Shooting Ranges industry. The underlying factors driving down revenue will remain consistent. In addition, the falling availability of free time will decrease demand and revenue. IBISWorld projects industry revenue to decline over the five years to 2017. One bright spot lies in consumers' growing incomes, which will allow existing consumers to frequent shooting ranges more often and to spend more money per trip.
The Shooting Ranges industry is highly fragmented and has a low level of concentration. According to Panteva, the top four firms operating in this industry make up less than 10.0% of total industry revenue. The industry is mainly composed of small-size businesses that operate locally. Additionally, the industry has low barriers to entry that enable companies to easily enter the industry. On average, firms in the industry have less than 1.0% market share. The industry is expected to remain fragmented over the five years to 2017. For more information, visit IBISWorld’s Shooting Ranges in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides indoor and outdoor targets for firing weapons, which may include guns, rifles and other arms. Handgun ranges typically have their own indoor stations, while rifles can be shot at disks and a variety of other targets.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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