The retiring baby-boomer generation will create strong opportunities for indoor sports facilities
New York, NY (PRWEB) July 21, 2014
The Indoor Sports Facilities Management industry escaped the recession relatively unscathed compared with other industries in the leisure sector. Over the five years to 2014, IBISWorld expects industry revenue to grow. According to IBISWorld Industry Analyst David Yang, “the industry contracted during the recession as wary consumers curtailed spending on higher priced recreation activities at ice rinks and swimming complexes, but demand for indoor sports facilities rebounded quickly as consumers increasingly perceived industry team sport services as a necessary health and social expense.” In particular, the industry benefited through adverse economic conditions from higher sports participation rates and growing public awareness of the link between physical activity and health.
Industry growth was partially dampened by increased competition for consumer leisure time from gyms and health and fitness clubs over the past five years. To combat increased competition, rising utility costs and constantly shifting consumer sport preferences, industry operators responded by developing larger state-of-the-art multisport facilities to spread high fixed building and maintenance costs over a larger and more diversified customer base to maintain profitability. Nevertheless, industry profit margins slightly contracted over the past five years. Immediately following the recession, industry operators had difficulty keeping fees high and attracting customers. As fees were cut, profit margins also declined. Profitability was further constrained by rising capital costs for facility expansion efforts.
“Further improvements in consumer disposable income, consumer confidence and health awareness are expected to benefit industry operators over the next five years,” says Yang. The retiring baby-boomer generation will create strong opportunities for indoor sports facilities that focus on this massive potential market segment. Rising concern over childhood obesity rates and inactivity levels will also present industry operators with opportunities in the youth market. Positive demographic trends, combined with strong income growth over the next five years, will drive revenue growth. In the five years to 2019, IBISWorld projects industry revenue to increase. Steady revenue growth will likely attract new market entrants, causing the number of establishments to rise by 2019.
For more information, visit IBISWorld’s Indoor Sports Facilities Management in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Indoor Sports Facilities Management industry maintain and operate recreational indoor sports facilities. This report includes for-profit and nonprofit facilities that generate revenue through membership or admission fees. It excludes fitness centers that primarily provide exercise equipment and other indoor recreation facilities such as college facilities, bowling alleys and dance halls.
Key External Drivers
Industry Life Cycle
Products & Markets
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Globalization & Trade
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