Rising competition and waning demand have also caused industry profitability to drop.
Los Angeles, CA (PRWEB) October 17, 2013
Over the five years to 2013, declining per capita disposable income, coupled with weakening consumer sentiment surrounding firearms, has caused demand for the Shooting Ranges industry to wane. Consequently, revenue has fallen in four out of the past five years, averaging at a 0.5% decline to an expected $535.8 million by the end of 2013. Disposable incomes have fallen by 0.2% per year, on average, causing consumers to cut back discretionary spending. Instead of visiting shooting ranges, they have largely opted for low-cost or free outdoor activities, such as running. Despite disposable incomes rising in 2013, IBISWorld anticipates external competition to continue defining industry trends and causing revenue to drop 1.4% over the year.
According to IBISWorld Industry Analyst Nikoleta Panteva, "Rising competition and waning demand have also negatively affected the industry." Operators have vied to remain relevant by cutting admission fees. Meanwhile, the price for ammunition (a key purchasing cost for this industry) has grown steadily over the past five years. Operators that have not been able to retain profit have been forced to exit the industry. The number of establishments has declined at an average annual rate of 0.8% to 2,202 ranges in 2013. Furthermore, the Shooting Ranges industry is highly fragmented and has a low level of concentration.
IBISWorld does not forecast a turnaround for the Shooting Ranges industry over the five years to 2018. "External competition will heighten as Americans return to work and their free time becomes scarcer," says Panteva. Moreover, potentially tighter gun control legislation may limit patrons' accessibility to firearms and ammunition, further constricting demand. However, industry associations and organizations are focusing on recruiting young patrons to shooting activities, which may help boost industry demand over the next five years.
For more information, visit IBISWorld’s Shooting Ranges in the US industry report page.
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IBISWorld industry Report Key Topics
The Shooting Ranges in the US industry provides indoor and outdoor targets for firing weapons, which may include handguns, shotguns, 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
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