Kentley Insights...Kentley Insights is the leader in data-driven industry market research reports. This report includes extensive data sets on the Health Clubs industry, which will

Health Clubs2020 Market Research ReportPublished: December 2019

Report:

Report Contents3 Overview 12 Sales per Capita by State

• Methodology • Sales per Capita and State Rankings

• Industry Definition & Examples

13 Sales as a Percent of Income by State

4 Industry Snapshot - Revenue & Growth • Sales as a % of Income and State Rankings

5 Industry Snapshot - Costs & Profitability 14 Sales per Location by State

• Sales per Location and State Rankings

15 Pricing & Inflation

• Annual Inflation - Indexed to 2006

7 Industry Growth Details • 2011-2019 Historical Figures

• Industry Revenues • Forecasts for 2020 and the Next 5-Years

• Number of Companies • Monthly Inflation Figures for the Past 4 Years

• Number of Locations / Offices

• 2011-2019 Historical Figures 16 Consolidation Analysis

• Number of Companies by Business Size

• Number of Locations by Business Size

8 Growth Benchmarks • Locations per Company by Business Size

• Revenue per Company • 2012 versus 2019

• Revenues per Location

• Locations per Company 17 Employment by Business Size

• 2011-2019 Historical Figures • Number of Employees by Business Size

• Forecasts for 2020 and the Next 5-Years • Employees per Company by Business Size

• Employees per Location by Business Size

9 Breakdown of Product Lines • 2012 versus 2019

• Percentage of Revenue from Product Lines

• 2010 versus 2015 18 Service Subsector Analysis

• Number of Companies

10 Service Subsector Growth • Number of Locations

• Sales and 5-Year CAGR • 5-Year CAGR

11 Income vs. Revenue Growth Matrix

• Service Subsectors vs. Industry

© Kentley Insights 2020

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• Forecasts for 2020 and the Next 5-Years

Section One

REVENUE & GROWTH BENCHMARKS

Kentley Insights

Health Clubs - 2020 www.kentleyinsights.com 2

Report Contents (Continued)

19 Service Subsector Analysis 27 Industry Payroll

• Emloyment • Payroll per Employee

• Payroll per Employee • Payroll per Company

• 5-Year CAGR • Payroll per Location

• 2011-2019 Historical Figures


COST, CAPITAL & PROFIT BENCHMARKS

28 Payroll by Business Size

21 Profitability & Financial Ratio Analysis • Payroll per Company

• Percent of Companies that are Profitable • Payroll per Location

• Average Net Income as a Percent of Revenue • Payroll per Employee

• Financial Ratios - 10 ratios, such as Total Asset • 2012 versus 2019

Turnover, Assets to Liabilities, Return on

Net Worth, Solvency Ratio 29 Payroll per Employee by State

• Payroll per Employee

22 Operating Expenses • State Rankings

• Industry Operating Expenses

• Industry Revenue vs. Operating Expense Growth 30 Job Categorization Benchmarks

• Operating Expense as a Percent of Revenue • Management & Finance

• 2011-2019 Historical Figures • Sales & Marketing

• Forecasts for 2020 and the Next 5-Years • Technology, Engineering & Science

• Service, Support & Training

23 Operating Expenses by Company & Location • Operations

• Operating Expenses per Company • Percent of Industry's Employees

• Operating Expenses per Location

• Revenue vs. Expenses Growth per Location 31 Job Categorization Pay Ranges

• 2011-2019 Historical Figures • Management & Finance

• Forecasts for 2020 and the Next 5-Years • Sales, Service & Marketing

• Operations

24 Operating Expense Detail • Pay Bands

• Employee Expenses

• Property Expenses 32 Top 20 Jobs Breakdown

• Equipment Expenses • Percent of Total Employees

• IT Expenses • Rank Ordered

• Miscellaneous Expenses

• Other Operating Expenses 33 Top 20 Jobs Pay

• Pay Bands

25 Productivity & Industry Employment • Rank Ordered

• Revenue per Employee

• Total Industry Employees 34 Total Employment by State

• Employees per Company • Number of Employees and State Rankings

• 2011-2019 Historical Figures • State Rankings


35 Population to Every Employee by State

26 Employee Productivity by State • Number of Residents to Industry Employee

• Revenue per Employee and State Rankings • State Rankings


Section Two


Report Methodology

Industry Definition

Health Clubs

Industry Examples0


Kentley Insights is the leader in data-driven industry market research reports. This report includes extensive data sets on the Health Clubs industry, which will provide you with key insights and benchmarks to create a broad and in-depth diagnostic and understanding of any company in the industry.

For this report, the core data is sourced from comprehensive business surveys filled out by companies in the Health Clubs industry. Our analysts create the industry forecasts utilizing historical trends, industry dynamics, econometrics, and macroeconomic trends.

The Gyms and Fitness Centers industry includes companies primarily engaged in operating fitness and recreational sports facilities featuring exercise and other active physical fitness conditioning or recreational sports activities, such as swimming, skating, or racquet sports.

Aerobic dance centers : Athletic clubs, physical fitness facilities : Body building studios, physical fitness : Exercise centers : Fitness centers : Gymnasiums : Health club, physical fitness : Health spas (without lodging), physical fitness : Health studio, physical fitness : Ice skating rinks : Physical fitness centers : Physical fitness studio : Racquetball clubs : Rinks, ice or roller skating : Roller skating rinks : Skating rinks, ice or roller : Spas, fitness (without lodging) : Sports clubs, physical fitness facilities : Squash clubs : Strength development centers : Swimming pools : Tennis clubs : Wave pools : Weight training centers


Industry Snapshot - Revenue & Growth

Overall Industry Size

Overall Industry Growth

Overall Industry Growth Forecast

Revenue per Company

Product Line Concentration

Pricing & Inflation

Sales per Capita

Sales per Location


In 2019, the average revenue per company for the industry was approximately $1.2 million, which grew at a 3.8% annual rate over the past 3 years.

In the Health Clubs industry, the top 3 product lines make up 77% of revenue, which ranks in the bottom 40% of service industries.

For the Health Clubs industry, Massachusetts has the highest sales per capita at $182. This is 72% higher than the average $105 per capita across the U.S.

For the industry, New York has the highest sales per location at $1.9 million, which is 95% higher than the U.S. average of $1.0 million in sales per location.

From 2018 to 2019, price inflation for the industry was 1.6%. While over the past 5-Years, inflation has averaged 0.7% per year.

Below is the revenue and growth snapshot for the Health Clubs industry, covering industry size, growth, forecasts, revenue per Company, product line concentration, pricing, sales per capita, and sales per Location, and benchmark how many of these metrics compare to the industries within the service sector.

The overall 2019 revenues of the Health Clubs industry was $36.3 Billion. The industry is above average in industry size, ranking in the top 40% of service industries in terms of size.

Over the past 3 years, industry revenues have been growing at an annual rate of 5.5% per year. This growth rate is outpacing the 4.2% average for service industries and ranks it in the top 40% of all service industries.

Given the macroeconomic climate and industry dynamics, the forecasted industry revenue growth rate for the next 5 years is 3.9% per year for the Health Clubs industry.


Industry Snapshot - Costs, Capital & Profit

Operating Expenses

Operating Expense Breakdown

State Popluation per Industry Employee

Employee Productivity

Payroll per Employee

Payroll by State

Job Categorization

Profitability


In 2019, the operating expenses as a percent of revenue for the Health Clubs industry was 83.1%, and over the past 3-Years total operating expenses for the industry grew at 3.7% per year.

The breakdown of operating expenses for the industry is as follows: 42% for employee expenses, 11% for property expenses, 17.3% for equipment expenses, 1.3% for IT expenses, 10.8% for miscellaneous expenses, while 17.6% was spent on other operating expenses.

Massachusetts has the least amount of population per industry employee within the Health Clubs industry, with 235 people in the state per industry employee, which is 0.5% of the U.S. average.

For the Health Clubs industry, in 2019 the sales per employee grew 2.7% over 2018 to $49,327, which ranks the industry in the bottom 20% of service industries.

In 2019, payroll per employee equaled $13,632 for the industry, which ranks it in the top 20% of service industries. Payroll per employee has grew at an annual rate of 2.1% over the past 3-Years.

Below is an industry snapshot on operating expenses, employee productivity, payroll, job categorization, profitability, and relevant benchmarks.

Hawaii is the highest paying state in the Health Clubs industry, with a payroll per employee of $19,851, which is 47.8% higher than the U.S. average.

The jobs breakdown in the Health Clubs industry is as follows: 16.1% of the jobs are in management and finance, 71.1% of the jobs are in sales, service and marketing, while 12.9% of the jobs are in operations and technology.

65% of Companies in the Health Clubs industry are profitable, with an average net income of 10.6% of revenues, which ranks the industry in the top 60% of service industries.



Section One

Revenue & Growth Benchmarks


Industry Growth Details

Industry Revenue ($ Millions)

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Millions) 23,470 24,413 26,073 27,114 28,787 30,883 33,088 34,279 36,304 38,253 43,870

Annual Growth 4.0% 6.8% 4.0% 6.2% 7.3% 7.1% 3.6% 5.9% 5.4% 3.9%

8 9 10 11 12 13 14 15 16 17 18Compound Annual Growth Rate 5.5% 3-Year 6.0% 5-Year 20

Number of Companies

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

Companies 25,074 24,775 25,583 26,480 27,366 28,185 28,712 29,152 29,657 30,238 32,037

Annual Growth -1.2% 3.3% 3.5% 3.3% 3.0% 1.9% 1.5% 1.7% 2.0% 1.6%

55 56 57 58 59 60 61 62 63 64 65

Compound Annual Growth Rate 1.7% 3-Year 2.3% 5-Year

Number of Locations (i.e., separate facilities, offices, or retail locations)

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

Locations 29,506 29,511 30,393 31,715 32,712 33,977 34,806 35,400 36,118 36,903 39,281

Annual Growth 0.0% 3.0% 4.3% 3.1% 3.9% 2.4% 1.7% 2.0% 2.2% 1.7%

102 103 104 105 106 107 108 109 110 111 112Compound Annual Growth Rate 2.1% 3-Year 2.6% 5-Year


To get a macro level view of the Health Clubs industry, below are the historical details and industry growth forecasts for total industry revenues, number of Companies, and number of Locations.

-

20,000

40,000

60,000

-

10,000

20,000

30,000

40,000

-

20,000

40,000

60,000


Growth Benchmarks

Revenue per Company ($ Thousands)

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Thousands) 936 985 1,019 1,024 1,052 1,096 1,152 1,176 1,224 1,265 1,369

Annual Growth 5.3% 3.4% 0.5% 2.7% 4.2% 5.2% 2.0% 4.1% 3.3% 2.3%


Revenue per Location ($ Thousands)

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Thousands) 795 827 858 855 880 909 951 968 1,005 1,037 1,117 Annual Growth 4.0% 3.7% -0.3% 2.9% 3.3% 4.6% 1.9% 3.8% 3.1% 2.1%


Locations per Company

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

Loc. per Comp. 1.18 1.19 1.19 1.20 1.20 1.21 1.21 1.21 1.22 1.22 1.23 Annual Growth 1.2% -0.3% 0.8% -0.2% 0.8% 0.6% 0.2% 0.3% 0.2% 0.1%



Below are the normalized growth benchmarks for the Health Clubs industry, including revenue per company, revenue per location, and locations per company. These metrics are typically better to use to benchmark a company's performance, since they normalize for company and location growth.

-

500

1,000

1,500

-

500

1,000

1,500

1.14

1.16

1.18

1.20

1.22

1.24


Breakdown of Top Product Lines

Breakdown of Sales by Top Product Lines (%)Health Clubs

63.2%

19 63% #REF! 9

8.2%

20 8% #REF! 10

5.1%

21 5% #REF! 11

3.0%

22 3% #REF! 12

2.7%

23 3% #REF! 13

2.7%

24 3% #REF! 14

2.2%

25 2% #REF! 15

2.2%

26 2% #REF! 16

2.0%

27 2% #REF! 17

1.9%

28 2% #REF! 18


Child day care services

Child day care services

Amusement and recreational services

All other receipts

Athletic instruction

Meals and beverages, prepared and served or dispensed, for immediate

consumption

Contributions, gifts, and grants - Private

Resale of merchandise

Other personal services

Fitness and recreational sports center services

Below represents Health Clubs industry sales as a percentage of the top product lines, which is used to highlight potential growth opportunities, strengths, and weaknesses.

0% 10% 20% 30% 40% 50% 60% 70%


Services Sector Growth

Sales Size & Growth 5-Yr CAGR Sales of Sector ($ Billions)

2009 2014

Finance and insurance 5.3% ###### 4,650$ 52

Health care and social assistance 4.8% ###### 2,724$ 62

Prof., scientific & technical services 4.9% 66.70$ 1,842$ 541

Information 4.5% 58.95$ 1,557$ 51

Transportation and warehousing 3.9% 29.06$ 989$ 48

Accommodation and food services 5.2% 28.03$ 964$ 72

Admin., support & waste mgmt. services 7.0% 24.84$ 1,047$ 56

Utilities 1.3% 576$ 221

Real estate and rental and leasing 6.0% ###### 666$ 53

Other services (except public admin.) 4.5% ###### 560$ 81

Educational services 5.2% ###### 474$ 611

Arts, entertainment, and recreation 5.5% 30.89$ 291$ 71

8.29$ 11$

Number of Employees & Growth 5-Yr CAGR Number of Employees

77.00$ 3,779$

Finance and insurance 2.9% ###### ###### 52

Health care and social assistance 2.5% ###### ###### 62

Prof., scientific & technical services 2.2% 66.70$ ###### 541

Information 2.0% 58.95$ ###### 51

Transportation and warehousing 1.8% 29.06$ ###### 48

Accommodation and food services 2.4% 28.03$ ###### 72

Admin., support & waste mgmt. services 3.2% 24.84$ ###### 56

Utilities 0.8% ###### 221

Real estate and rental and leasing 2.9% ###### ###### 53

Other services (except public admin.) 2.2% ###### ###### 81

Educational services 2.5% ###### ###### 611

Arts, entertainment, and recreation 2.8% 30.89$ ###### 7135.43$ 40$


Below is the size and growth of all of the major service subsectors, which is typically utilized to understand how an industry is performing against the macro economy.

$4,650

$2,724

$1,842

$1,557

$989

$964

$1,047

$576

$666

$560

$474

$291

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000

6,740,984

20,679,868

9,350,101

3,580,599

4,693,011

14,082,458

11,943,612

658,990

2,240,070

5,775,178

3,899,140

2,406,274

- 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000


Income vs. Revenue Growth Matrix

category #N/A profit

52Finance and insurance 4% 20%

62Health care & social 5% 9%

541Prof., scientific & technical 5% 10%

51Information 4% 13%

48Transp. and warehousing 2% 7%

72Accom. and food 5% 9%

56Admin., support & waste 7% 7%

221 Utilities -2% 4%

53

611Education 4% 9%

71Arts, entert., and recreation 5% 11%

7E+05 Health Clubs 5% 9%


Similar to the famous BCG Matrix, though substituting net income margin for relative market share and taking it to the industry level, the Income vs. Revenue Growth Matrix is an insightful tool to create context for an industry and companies. Where is your industry on the matrix? And, more importantly, where does your company fall on the matrix?

Industries which can generate high net income margin and high revenue growth are known as the Star industries, which often attract higher levels of competition chasing the growth. While, those that generate low net income margin and low revenue growth are known as the Dogs. Often, Dog industries are very mature, and growth comes from consolidation and driving costs out of the business. Industries with high net income margin and low revenue growth are Cash Cows, which typically are more mature and have less overall investment, but have nice industry dynamics to protect the margins of the industry. While Question Mark industries are those that have high revenue growth, but low net income margin. Companies in Question Mark industries, which can drive competitive differentiation and a higher net income margin, can often realize significant profit growth.

Health care & social

Prof., scientific & technical

Information

Transp. and warehousing

Admin., support & waste

Accom. and foodEducation

Arts, entert., and recreation

Health Clubs

0%

2%

4%

6%

8%

10%

12%

14%

0% 1% 2% 3% 4% 5% 6% 7%

Net

Inco

me

Mar

gin

3 Year Revenue Growth

Cash Cows Stars

Question MarksDogs


Sales per Capita by State

105.4652459 Rank 1.33893 201742 Alabama 42 44 212,568$ 4874747 ###### ######15 Alaska 15 97 71,447$ 739795

21 Arizona 21 77 542,906$ 7016270

48 Arkansas 48 32 94,742$ 3004279

9 California 9 111 4,405,625$ 39536653

7 Colorado 7 115 642,894$ 5607154

4 Connecticut 4 140 502,736$ 3588184

33 Delaware 33 56 53,846$ 961939

24 Florida 24 72 1,502,954$ 20984400

30 Georgia 30 61 636,931$ 10429379

22 Hawaii 22 75 106,672$ 1427538

43 Idaho 43 43 73,178$ 1716943

6 Illinois 6 115 1,473,483$ 12802023

34 Indiana 34 53 353,250$ 6666818

39 Iowa 39 46 144,476$ 3145711

31 Kansas 31 60 175,224$ 2913123

38 Kentucky 38 46 204,965$ 4454189

46 Louisiana 46 39 183,818$ 4684333

32 Maine 32 56 75,299$ 1335907

5 Maryland 5 132 799,383$ 6052177

1 Massachusetts 1 182 1,246,681$ 6859819

20 Michigan 20 79 788,718$ 9962311

12 Minnesota 12 100 559,063$ 5576606

50 Mississippi 50 28 84,896$ 2984100

35 Missouri 35 52 318,035$ 6113532

19 Montana 19 80 84,271$ 1050493

23 Nebraska 23 72 137,527$ 1920076

14 Nevada 14 99 296,347$ 2998039

8 New Hampshire 8 111 149,705$ 1342795

3 New Jersey 3 146 1,314,088$ 9005644

37 New Mexico 37 48 101,234$ 2088070

2 New York 2 147 2,909,791$ 19849399

25 North Carolina 25 71 727,661$ 10273419

47 North Dakota 47 35 26,085$ 755393

27 Ohio 27 64 751,942$ 11658609

49 Oklahoma 49 31 120,019$ 3930864

13 Oregon 13 99 409,657$ 4142776

18 Pennsylvania 18 82 1,045,433$ 12805537

17 Rhode Island 17 85 90,547$ 1059639

41 South Carolina 41 44 223,225$ 5024369

45 South Dakota 45 40 34,633$ 869666

36 Tennessee 36 51 339,823$ 6715984

26 Texas 26 69 1,947,817$ 28304596

29 Utah 29 64 197,161$ 3101833

16 Vermont 16 90 55,935$ 623657

11 Virginia 11 104 884,097$ 8470020

10 Washington 10 107 795,754$ 7405743

40 West Virginia 40 45 81,051$ 1815857

28 Wisconsin 28 64 368,598$ 5795483

44 Wyoming 44 41 23,896$ 579315

Below is industry sales per capita by state, which is useful to understand the total market potential by state. The metric is enhanced when compared to the sales per Location in each state. When it states "no data", there wasn't a sufficient sample size of data for the state.

- 50 100 150 200


Sales as a Percent of Income by State

Rank 1.33893 2017Alabama 46 0.10% 204,407$ ########## 35,625

Alaska 16 0.20% 81,375$ 41,459,811 46,778

Arizona 20 0.18% 540,102$ 292,108,028 35,979

Arkansas 49 0.10% 116,606$ 122,546,185 34,723

California 13 0.20% 4,703,654$ ########## 44,980

Colorado 15 0.20% 599,690$ 300,006,049 45,135

Connecticut 7 0.23% 582,784$ 251,607,948 58,908

Delaware 8 0.23% 109,236$ 47,255,723 41,940

Florida 22 0.18% 1,767,301$ 983,294,332 40,344

Georgia 33 0.14% 641,816$ 451,280,709 36,869

Hawaii 30 0.15% 114,615$ 74,144,368 44,024

Idaho 36 0.14% 97,301$ 69,548,456 33,749

Illinois 6 0.24% 1,619,097$ 676,053,010 44,815

Indiana 34 0.14% 415,126$ 294,440,455 36,902

Iowa 35 0.14% 203,210$ 144,691,308 42,126

Kansas 27 0.17% 232,569$ 138,672,947 41,835

Kentucky 42 0.13% 224,257$ 175,463,990 35,041

Louisiana 37 0.14% 279,316$ 203,725,026 39,413

Maine 32 0.15% 88,419$ 60,211,912 39,481

Maryland 12 0.21% 751,332$ 360,250,668 51,971

Massachusetts 1 0.29% 1,306,214$ 451,994,165 54,687

Michigan 29 0.16% 725,453$ 450,847,081 37,497

Minnesota 3 0.27% 805,091$ 295,798,390 46,227

Mississippi 44 0.11% 124,148$ 108,459,722 33,073

Missouri 39 0.14% 362,522$ 266,920,797 39,049

Montana 19 0.19% 87,080$ 46,123,674 37,370

Nebraska 25 0.17% 164,502$ 96,762,103 43,143

Nevada 17 0.19% 260,318$ 133,789,414 37,361

New Hampshire 5 0.24% 185,282$ 77,309,425 47,058

New Jersey 4 0.25% 1,419,208$ 563,339,400 53,628

New Mexico 43 0.12% 98,467$ 81,483,543 35,079

New York 2 0.29% 3,495,306$ ########## 52,095

North Carolina 18 0.19% 840,500$ 444,872,063 37,049

North Dakota 31 0.15% 62,569$ 41,277,100 51,893

Ohio 24 0.17% 915,609$ 531,810,551 39,289

Oklahoma 47 0.10% 174,540$ 170,790,994 39,006

Oregon 14 0.20% 386,599$ 192,064,292 38,786

Pennsylvania 21 0.18% 1,203,714$ 667,117,752 43,616

Rhode Island 9 0.23% 125,459$ 54,574,642 44,990

South Carolina 40 0.13% 260,787$ 203,087,627 34,266

South Dakota 45 0.11% 46,667$ 41,987,994 43,659

Tennessee 41 0.13% 380,223$ 297,292,992 37,678

Texas 26 0.17% 2,233,507$ ########## 41,471

Utah 38 0.14% 177,429$ 130,409,737 34,601

Vermont 23 0.17% 55,295$ 31,877,737 42,994

Virginia 11 0.22% 992,244$ 459,448,879 47,082

Washington 10 0.23% 943,105$ 416,816,311 45,413

West Virginia 50 0.09% 63,290$ 68,864,250 34,477

Wisconsin 28 0.17% 465,051$ 277,316,642 40,537

Wyoming 48 0.10% 33,294$ 32,860,964 48,670

Sales as a percent of income helps highlight the consumption differences by state. When it states "no data", there wasn't a sufficient sample size of data for the state.

0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35%


Sales per Location by State

Rank $ 000s 1 1.392 1.0630344 Alabama 44 606 212,568$ 351$

13 Alaska 13 1,244 84,623$ 68$

10 Arizona 10 1,298 561,664$ 433$

47 Arkansas 47 554 121,261$ 219$

2 California 2 1,653 4,891,441$ 2,958$

17 Colorado 17 1,055 623,632$ 591$

12 Connecticut 12 1,273 606,051$ 476$

27 Delaware 27 869 113,597$ 131$

16 Florida 16 1,129 1,837,858$ 1,629$

26 Georgia 26 871 667,439$ 766$

3 Hawaii 3 1,602 119,191$ 74$

35 Idaho 35 727 101,186$ 139$

5 Illinois 5 1,389 1,683,737$ 1,212$

32 Indiana 32 769 431,699$ 561$

45 Iowa 45 597 211,323$ 354$

18 Kansas 18 1,034 241,854$ 234$

33 Kentucky 33 746 233,210$ 313$

39 Louisiana 39 668 290,467$ 435$

42 Maine 42 622 91,949$ 148$

9 Maryland 9 1,299 781,328$ 602$

7 Massachusetts 7 1,335 1,358,363$ 1,017$

22 Michigan 22 951 754,416$ 793$

4 Minnesota 4 1,464 837,233$ 572$

46 Mississippi 46 581 129,104$ 222$

37 Missouri 37 693 376,996$ 544$

43 Montana 43 613 90,556$ 148$

28 Nebraska 28 834 171,069$ 205$

8 Nevada 8 1,306 270,711$ 207$

23New Hampshire 23 934 192,679$ 206$

14 New Jersey 14 1,228 1,475,868$ 1,202$

38 New Mexico 38 674 102,398$ 152$

1 New York 1 1,885 3,634,851$ 1,928$

25 North Carolina 25 910 874,056$ 961$

34 North Dakota 34 729 65,067$ 89$

21 Ohio 21 954 952,163$ 998$

36 Oklahoma 36 697 181,508$ 260$

19 Oregon 19 987 402,033$ 407$

20 Pennsylvania 20 968 1,251,770$ 1,294$

24 Rhode Island 24 930 130,468$ 140$

40 South Carolina 40 648 271,198$ 419$

49 South Dakota 49 466 48,530$ 104$

29 Tennessee 29 817 395,403$ 484$

6 Texas 6 1,356 2,322,677$ 1,713$

31 Utah 31 771 184,513$ 239$

41 Vermont 41 636 57,503$ 90$

15 Virginia 15 1,200 1,031,857$ 860$

11 Washington 11 1,296 980,757$ 757$

48 West Virginia 48 507 65,816$ 130$

30 Wisconsin 30 772 483,617$ 626$

50 Wyoming 50 418 34,623$ 83$ 0


Sales per location highlights the competitive intensity of a state. Those states with really high sales per location, will most likely face increasing competition. While those with low sales per location will often be consolidated to drive cost and capital efficiencies. When it states "no data", there wasn't a sufficient sample size of data for the state.

- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000


Pricing & Inflation

Health Clubs Industry Inflation(Indexed at 100 in 2006)

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

Inflation 1.03 1.04 1.04 1.05 1.08 1.06 1.06 1.07 1.09 1.11 1.22

Annual Growth 1.0% -0.3% 1.7% 2.1% -1.3% -0.3% 1.3% 1.6% 2.1% 2.3%

126 127 128 129 130 132 134 133 135 136 137


Health Clubs Industry Inflation(Indexed at 100 in 2006)

2016 2017 2018 2019

Jan. 1.07 1.05 1.05 1.08 286 298 335 310 1

Feb. 1.06 1.05 1.06 1.10 287 299 336 311 2

Mar. 1.06 1.06 1.07 1.09 288 300 337 312 3

Apr. 1.06 1.06 1.06 1.09 289 301 338 313 4

May 1.06 1.06 1.05 1.10 290 302 339 314 5

Jun. 1.06 1.06 1.07 1.06 291 303 340 315 6

Jul. 1.06 1.05 1.08 1.06 292 304 341 316 7

Aug. 1.06 1.05 1.07 1.10 293 305 342 317 8

Sep. 1.07 1.07 1.08 1.11 294 306 343 318 9

Oct. 1.05 1.06 1.10 1.11 295 307 344 319 10

Nov. 1.06 1.07 1.10 - 296 308 345 320 11

Dec. 1.06 1.07 1.07 - 297 309 346 321 12


Understanding the pricing and inflation dynamics of an industry is critical to help inform the pricing decisions of a company. Below is the historical and forecasted inflation of the industry, and the seasonality of inflation over the past 4 years.

0.90

1.00

1.10

1.20

1.30

1.04 1.06 1.08 1.10 1.12

2016

2017

2018

2019


Consolidation Analysis

Health Clubs Industry

Business Size 2012 2019 5-Yr. Growth #DIV/0!

0-4 13,152 15,492 18% 224 188 2.1%

5-9 4,011 4,869 21% 225 189 0.7%

10-19 3,277 4,177 27% 226 190 0.6%

20-99 3,321 3,973 20% 227 192 0.5%

100-499 738 837 13% 228 193 0.1%

500+ 276 310 12% 229 195 0.0%

24775 29657.4 4.0%

Number of Locations

Business Size 2012 2019 5-Yr. Growth #####

0-4 13,169 14,843 13% 236 196 #DIV/0!

5-9 4,031 4,673 16% 237 197 #DIV/0!

10-19 3,322 4,038 22% 238 198 #DIV/0!

20-99 3,653 4,212 15% 239 200 #DIV/0!

100-499 1,406 1,561 11% 240 201 #DIV/0!

500+ 3,930 4,619 18% 241 203 #DIV/0!

29511 33945.4 #DIV/0!

Locations per Company

Business Size 2012 2019 5-Yr. Growth #REF!

0-4 1.0 1.0 -4% 230 204 0.5%

5-9 1.0 1.0 -5% 231 205 0.5%

10-19 1.0 1.0 -5% 232 206 0.5%

20-99 1.1 1.1 -4% 233 208 0.5%

100-499 1.9 1.9 -2% 234 209 0.9%

500+ 14.2 14.9 5% 235 211 7.0%

20.2643 20.7121 9.9%


Number of Companies

While industry level benchmarks are useful, digging into the growth and consolidation dynamics by the size of companies (e.g., 0-4 employees = small company, 500+ employees = large company) can provide deep context and insight into the competitive dynamics. Below you have the number of companies, locations and locations per company by business size and growth over the past 7 years.

18%

21%

27%

20%

13%

12%

0% 5% 10% 15% 20% 25% 30%

Firms - 7-Year Growth (%)

13%

16%

22%

15%

11%

18%

0% 5% 10% 15% 20% 25%

Locations - 7-Year Growth (%)

-4%

-5%

-5%

-4%

-2%

5%

-6% -4% -2% 0% 2% 4% 6%

Establishments per Firm - 7-Year Growth (%)

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Employment by Business Size

Health Clubs Industry

Number of Employees

Business Size 2012 2019 5-Yr. Growth0.966 1.08373

0-4 19,910 23,279 17% 230 204 3.1%

5-9 25,956 33,041 27% 231 205 4.4%

10-19 44,310 58,842 33% 232 206 7.9%

20-99 130,519 162,294 24% 233 208 21.8%

100-499 121,104 149,709 24% 234 209 20.1%

500+ 239,618 318,654 33% 235 211 42.7%

581417 745818 100.0%

Employees per Company

Business Size 2012 2019 5-Yr. Growth 1.038

0-4 1.5 1.5 -1% 236 196 #DIV/0!

5-9 6.5 6.8 5% 237 197 #DIV/0!

10-19 13.5 14.1 4% 238 198 #DIV/0!

20-99 39.3 40.8 4% 239 200 #DIV/0!

100-499 164$ 178.9 9% 240 201 #DIV/0!

500+ 868.2 1,028.1 18% 241 203 #DIV/0!

#DIV/0!

Employees per Location

Business Size 2012 2019 5-Yr. Growth0.943 1.132

0-4 1.5 1.6 4% 230 204 0.7%

5-9 6.4 7.1 10% 231 205 3.2%

10-19 13.3 14.6 9% 232 206 6.5%

20-99 35.7 38.5 8% 233 208 17.5%

100-499 86.1 95.9 11% 234 209 42.2%

500+ 61.0 69.0 13% 235 211 29.9%204.124 226.657 100.0%


Employment dynamics by size of Company highlights a deeper level of insight into what size companies are growing and shrinking. Below are metrics on employees , employees per company, and employees per Location segmented by business size with 6-year growth figures.

17%

27%

33%

24%

24%

33%

0% 5% 10% 15% 20% 25% 30% 35%

Employment - 7-Year Growth (%)

-1%

5%

4%

4%

9%

18%

-5% 0% 5% 10% 15% 20%

Employees per Company - 7-Year Growth (%)

4%

10%

9%

8%

11%

13%

0% 2% 4% 6% 8% 10% 12% 14%

Employees per Location - 7-Year Growth (%)

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Subsector Analysis (1/2)

5-Yr. Growth - # of Companies

Subsector

Finance and insurance 1.5% ###### ###### 52 441

Health care and social assistance 1.4% ###### ###### 62 442

Professional, scientific & technical svcs. 1.4% 66.70$ ###### 541 4431

Information 1.7% 58.95$ ###### 51 444

Transportation and warehousing 1.4% 29.06$ ###### 48 445

Accommodation and food services 1.8% 28.03$ ###### 72 4461

Admin., support & waste mgmt. services 1.7% 24.84$ ###### 56 4471

Utilities 0.4% ###### 221 448

Real estate and rental and leasing 2.2% ###### ###### 53 451

Other services (except public admin.) 1.3% ###### ###### 81 452

Educational services 1.9% ###### ###### 611 454

Arts, entertainment, and recreation 2.1% 30.89$ ###### 71 722

2.3% 713940 713940

5-Yr. Growth of Locations

Subsector




Information 1.9% 58.95$ ###### 51 444




Utilities 0.8% ###### 221 448





2.6% 713940 713940


Health Clubs

Below are 5-year growth figures for number of companies and locations for all of the major services subsectors with the Health Clubs industry metric at the bottom of the chart.

Health Clubs

1.5%

1.4%

1.4%

1.7%

1.4%

1.8%

1.7%

0.4%

2.2%

1.3%

1.9%

2.1%

2.3%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5%

5-Year CAGR (%) - Number of Companies

1.8%

1.9%

1.7%

1.9%

1.5%

1.9%

2.0%

0.8%

2.4%

1.4%

2.0%

2.4%

2.6%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

5-Year CAGR (%) - Number of Locations


Subsector Analysis (2/2)

5-Yr. Growth of Employees

Subsector




Information 2.0% 58.95$ ###### 51 444




Utilities 0.8% ###### 221 448





2.9% 713940 713940

5-Yr. Gwth. - Payroll per Empl.

Subsector




Information 2.4% 58.95$ ###### 51 444




Utilities 0.5% ###### 221 448





2.2% 713940 713940


Below are 5-year growth figures for number of employees and payroll per employee for all major services subsectors with the Health Clubs industry metric at the bottom of the chart.

Health Clubs

Health Clubs

2.9%

2.5%

2.2%

2.0%

1.8%

2.4%

3.2%

0.8%

2.9%

2.2%

2.5%

2.8%

2.9%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

5-Year CAGR (%) - Employee Growth

2.1%

2.1%

2.3%

2.4%

2.0%

2.1%

2.2%

0.5%

2.2%

1.8%

2.2%

2.2%

2.2%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

5-Year CAGR (%) - Payroll per Employee



Section Two

Costs, Capital & Profit Benchmarks


Profitability & Financial Ratio Analysis

Percent of Companies that are Profitable

Total 12148 ProfitableUnprofitable

Profitable 62838 65% 35%Unprofitable58650

Average Net Income as a Percent of Revenues

Total Receipts9.8E+07 Net Income7043124

-10.5% -87.325 Receipts Net Income5.2E+07 Deficit -5E+06

10.6% Receipts Deficit4.5E+07

Unprofitable Companies-11.3%

Profitable Companies13.5%

Financial RatiosTotal RevenuesTotal Assets######

Total Asset Turnover 0.83 92 Total AssetsNet Worth ######

Fixed Asset Turnover 0.58 93 Total Liabilities######

Fixed Assets to Total Assets Ratio 0.94 94 Total Sales ######

Total Assets to Total Liabiabilities 1.43 95 Fixed Assets######

Return on Sales 0.07 96 Net Income######

Return on Total Assets 0.05 97 After Tax Income######

Return on Net Worth 0.20 98

Total Liabilities to Net Worth 2.99 99

Fixed Assets to Net Worth 3.54 100

Solvency Ratio 0.15 101


Below are benchmarks for the percent of companies that are profitable, average net income as a percent of revenues, and financial ratios including total asset turnover, fixed asset turnover, fixed assets to total assets ratio, total assets to total liabilities ratio, return on sales, return on total assets, return on net worth, total liabilities to net worth ratio, fixed assets to net worth ratio, and solvency ratio.

Profitable Companies

Unprofitable Companies

Profitable65%

Not Profitable35%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

-10.5%

10.6%

-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%

0.0 1.0 2.0 3.0 4.0


Operating Expenses

Industry Operating Expenses

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Millions) 21,360 22,175 23,428 24,366 25,563 27,073 28,503 29,136 30,162 30,428 31,414

Annual Growth 3.8% 5.7% 4.0% 4.9% 5.9% 5.3% 2.2% 3.5% 0.9% 0.8%

243 244 245 246 247 248 249 250 251 252 253


Industry Revenue vs. Operating Expense Growth

revenue 4.0% 6.8% 4.0% 6.2% 7.3% 7.1% 3.6% 5.9% 5.4% 3.9% #REF!

costs 3.8% 5.7% 4.0% 4.9% 5.9% 5.3% 2.2% 3.5% 0.9% 0.8% #REF!2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

Operating Expense as a Percent of Revenues

2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

OPEX / Revenue 91% 89.9% 89.9% 88.8% 87.7% 86.1% 85.0% 83.1% 79.5% 71.6%


Below is total industry operating expense, industry revenue vs. industry opex growth, and opex as a percentage of revenue for the Health Clubs industry. The data sets include historicals and forecasts.

-

10,000

20,000

30,000

40,000

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%Revenue Growth

Expense Growth

0%

20%

40%

60%

80%

100%


Operating Expenses per Company & Location

Industry Operating Expenses per Company

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Thousands) 852 895 916 920 934 961 993 999 1,017 1,006 981

Annual Growth 5.1% 2.3% 0.5% 1.5% 2.8% 3.3% 0.7% 1.8% -1.1% -0.7%21 22 23 24 25 26 27 28 29 30


Industry Operating Expenses per Location

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Thousands) 724 751 771 768 781 797 819 823 835 825 800

Annual Growth 3.8% 2.6% -0.3% 1.7% 2.0% 2.8% 0.5% 1.5% -1.3% -0.9%21 22 23 24 25 26 27 28 29 30


Revenue Growth per Location vs. Operating Expense Growth per Location

revenue 4.0% 3.7% -0.3% 2.9% 3.3% 4.6% 1.9% 3.8% 3.1% 2.1%

costs 3.8% 2.6% -0.3% 1.7% 2.0% 2.8% 0.5% 1.5% -1.3% -0.9%2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst


Given the dynamics of company and location growth and consolidation in the industry, it is important to normalize operating expense growth by company and location, which are below. This serves as a better benchmark for operating expense comparisons.

650

700

750

800

850

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0% Revenue Growth

Expense Growth

700

800

900

1,000

1,100


Operating Expense Detail

Operating Expense Breakdown

42.0% 3

33.7% 4 33.7%

3.1% 6 3.1%

0.1% 7 0.1%

0.4% 8 0.4%

3.8% 9 3.8%

0.9% 10 0.9%

11.0% #REF!

6.4% 19 6.4%

1.1% 22 1.1%

2.3% 15 2.3%

0.4% 16 0.4%

0.8% 29 0.8%

17.3% 30

0.4% 11 0.4%

1.3% 18 1.3%

1.2% 21 1.2%

9.9% 24 9.9%

4.4% 12 4.4%

1.3%

0.4% 27 0.4%

0.6% 28 0.6%

0.4% 13 0.4%

10.8% #REF!

3.5% 23 3.5%

2.5% 30 2.5%

4.8% 25 4.8%

17.6% 26

17.6% 31 17.6%

32


Other Operating Expenses

Other Operating Expenses

Taxes and license fees

Professional and technical services

Advertising and promotional services

Miscellaneous Expenses

Expensed purchases of software

Communication services

Data processing & other computer services

IT Expenses

Other materials, parts, and supplies

Purchased electricity

Annual Payroll

Employee Expenses

Repairs and maintenance to buildings

Lease and rent for buildings, offices, stores

Property Expenses

Depreciation and amortization charges

Repairs, maint. to machinery and equip.

Lease and rent for machinery and equip.

Expensed equipment

Equipment Expenses

There isn't detailed operating expense data on the Health Clubs industry. This data is on the Amusement, Gambling, and Recreation industry, which the Health Clubs industry is part of. Below outlines the breakdown of operating expenses, broken down by employee, property, equipment, IT, and other categories. Operating expense detail is typically used in a gap analysis to highlight opportunities where a company has variances to the benchmark expense data.

Contract labor costs, incl. temporary help

Other fringe benefits

Defined contribution plans

Defined benefit pension plans

Health insurance

Water, sewer, refuse, other utility payments

Purchased fuels (except motor fuels)

0% 10% 20% 30% 40%


Employee Productivity & Industry Employment

Productivity - Revenue (output) per Employee

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

Rev. per Emp. ($) 41,199 41,989 43,385 42,553 44,277 45,958 47,307 48,022 49,327 51,315 56,842

Annual Growth 1.9% 3.3% -1.9% 4.1% 3.8% 2.9% 1.5% 2.7% 4.0% 2.9%

102 103 104 105 106 107 108 109 110 111Compound Annual Growth Rate 2.4% 3-Year 3.0% 5-Year 20

Total Industry Employees

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

# of Employees 569,673 581,417 600,962 637,182 650,158 671,982 699,419 713,821 735,981 745,467 771,783

Annual Growth 2.1% 3.4% 6.0% 2.0% 3.4% 4.1% 2.1% 3.1% 1.3% 1.0%

149 150 151 152 153 154 155 156 157 158 159


Employees per Company

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

Emp. Per Company 23 23 23 24 24 24 24 24 25 25 24

Annual Growth 3.3% 0.1% 2.4% -1.3% 0.4% 2.2% 0.5% 1.3% -0.7% -0.6%

158 159 160 161 162 163 164 165 166 167Compound Annual Growth Rate 1.3% 3-Year 0.6% 5-Year


Below are date sets on producitivity (revenue per employee), total industry employees, and employees per company. Each data set includes historicals and forecasts.

-

20,000

40,000

60,000

-

500,000

1,000,000

21

22

23

24

25


Productivity by State - Revenue (output) per Employee

Rank 1.15506 07 populationAlabama 23 35,208 6,037$ 4,627,851 35,625

Alaska 26 32,607 2,191$ 683,478 46,778

Arizona 13 42,299 12,835$ 6,338,755 35,979

Arkansas 19 37,115 2,553$ 2,834,797 34,723

California 3 48,957 89,990$ 36,553,215 44,980

Colorado 14 42,004 15,306$ 4,861,515 45,135

Connecticut 20 36,609 13,732$ 3,502,309 58,908

Delaware 48 17,512 3,075$ 588,292 41,940

Florida 2 50,108 29,994$ 18,251,243 40,344

Georgia 8 42,823 14,874$ 9,544,750 36,869

Hawaii 4 48,352 2,206$ 1,283,388 44,024

Idaho 44 23,517 3,112$ 1,499,402 33,749

Illinois 15 40,991 35,946$ 12,852,548 44,815

Indiana 36 28,660 12,326$ 6,345,289 36,902

Iowa 49 15,119 9,556$ 2,988,046 42,126

Kansas 35 28,934 6,056$ 2,775,997 41,835

Kentucky 28 32,019 6,401$ 4,241,474 35,041

Louisiana 31 30,238 6,079$ 4,293,204 39,413

Maine 38 27,565 2,732$ 1,317,207 39,481

Maryland 5 47,858 16,703$ 5,618,344 51,971

Massachusetts 9 42,781 29,141$ 6,449,755 54,687

Michigan 7 44,436 17,750$ 10,071,822 37,497

Minnesota 34 29,014 19,269$ 5,197,621 46,227

Mississippi 41 25,380 3,345$ 2,918,785 33,073

Missouri 40 26,223 12,128$ 5,878,415 39,049

Montana 37 28,645 2,942$ 957,861 37,370

Nebraska 43 24,419 5,632$ 1,774,571 43,143

Nevada 1 60,841 4,871$ 2,565,382 37,361

New Hampshire 30 30,546 4,901$ 1,315,828 47,058

New Jersey 16 38,382 34,237$ 8,685,920 53,628

New Mexico 18 37,551 2,696$ 1,969,915 35,079

New York 6 44,604 65,236$ 19,297,729 52,095

North Carolina 29 30,771 23,647$ 9,061,032 37,049

North Dakota 50 13,115 1,989$ 639,715 51,893

Ohio 32 30,126 24,960$ 11,466,917 39,289

Oklahoma 39 26,870 4,467$ 3,617,316 39,006

Oregon 11 42,623 9,611$ 3,747,455 38,786

Pennsylvania 25 32,693 31,978$ 12,432,792 43,616

Rhode Island 42 24,452 3,703$ 1,057,832 44,990

South Carolina 27 32,140 6,945$ 4,407,709 34,266

South Dakota 46 21,618 1,602$ 796,214 43,659

Tennessee 24 32,905 10,327$ 6,156,719 37,678

Texas 10 42,646 45,674$ 23,904,380 41,471

Utah 17 37,823 5,213$ 2,645,330 34,601

Vermont 33 29,546 1,893$ 621,254 42,994

Virginia 21 36,348 24,323$ 7,712,091 47,082

Washington 22 35,433 22,458$ 6,468,424 45,413

West Virginia 12 42,553 1,905$ 1,812,035 34,477

Wisconsin 47 20,349 18,114$ 5,601,640 40,537

Wyoming 45 23,403 1,021$ 522,830 48,670


Below is productivity (total revenue divided by total number of employees) by state. When it states "no data", there wasn't a sufficient sample size of data for the state.

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000


Industry Payroll

Payroll per Employee

7292059 7638415 7833406 8102924.195

8280847.97

8607896.915

8983559.652

9589013.806

10032908.43

10668631.62

11559050.462011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($) 12,800 13,138 13,035 12,717 12,737 12,810 12,844 13,433 13,632 14,311 14,977

Annual Growth 2.6% -0.8% -2.4% 0.2% 0.6% 0.3% 4.6% 1.5% 5.0% 1.9%181 182 183 184 185 186 50 59 69 111 187

Compound Annual Growth Rate 2.1% 3-Year 1.4% 5-Year 20

Payroll per Company

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Thousands) 291 308 306 306 303 305 313 329 338 353 361

Annual Growth 6.0% -0.7% -0.1% -1.1% 0.9% 2.4% 5.1% 2.8% 4.3% 1.3%112 113 114 115 116 117 118 119 120 121


Payroll per Location

2011 2012 2013 2014 2015 2016 2017 2018 2019 est 2020 fcst 5yr fcst

($ Thousands) 247 259 258 255 253 253 258 271 278 289 294

Annual Growth 4.7% -0.4% -0.9% -0.9% 0.1% 1.9% 4.9% 2.5% 4.1% 1.2%158

159 160 161 162 163 164 165 166 167Compound Annual Growth Rate 3.1% 3-Year 1.7% 5-Year


One of the consistently difficult strategic questions for every company is "are we paying our people the right amount?" In the next sections, we'll tackle this question from many different angles. The first benchmarks below cover payroll per employee, company, and location. In particular, payroll per employee is a strong metric to benchmark against, both in terms of the dollar figure but also the historical and forecasted growth.

11,000

12,000

13,000

14,000

15,000

16,000

-

100

200

300

400

220

240

260

280

300


Payroll by Business Size

Health Clubs Industry1.18536

Payroll per Company ($000s)

Business Size 2012 2019 5-Yr. Growth #DIV/0!

0-4 35 44 25% 5E+05 242 7E+05 212 0.0%

5-9 84 101 20% 3E+05 243 5E+05 213 0.0%

10-19 177 210 19% 6E+05 244 9E+05 214 0.0%

20-99 479 549 15% 2E+06 245 2E+06 216 0.1%

100-499 2,097 2,504 19% 2E+06 246 2E+06 217 0.3%

500+ 12,027 15,897 32% 3E+06 247 5E+06 219 2.1%

14898.7 19304.6 2.6%

Business Size 2012 2019 5-Yr. Growth #####

0-4 35 46 31% 236 196 #DIV/0!

5-9 83 105 26% 237 197 #DIV/0!

10-19 174 217 24% 238 198 #DIV/0!

20-99 435 518 19% 239 200 #DIV/0!

100-499 1,101 1,342 22% 240 201 #DIV/0!

500+ 845 1,067 26% 241 203 #DIV/0!

#DIV/0!

7-Yr.

Business Size 2012 2019 Growth #REF!

0-4 23,168 29,282 26% 230 204 #######

5-9 12,947 14,871 15% 231 205 6342.6%

10-19 13,072 14,893 14% 232 206 6404.0%

20-99 12,179 13,439 10% 233 208 5966.4%

100-499 12,781 13,991 9% 234 209 6261.2%

500+ 13,853 15,463 12% 235 211 6786.7%

87999.9 101938 #######

2019 Payroll per Employee


Payroll by business size metrics can create insights into how different size companies are fairing and how they pay for talent. Typically, the payroll per employee by business size (last chart) tells an interesting story about how different size companies compensate their talent.

Payroll per Establ. ($000s)

Payroll per Employee ($)

25%

20%

19%

15%

19%

32%

0% 5% 10% 15% 20% 25% 30% 35%

Payroll per Firm - 7-Year Growth (%)

31%

26%

24%

19%

22%

26%

0% 5% 10% 15% 20% 25% 30% 35%

Payroll per Establishment - 7-Year Growth (%)

29,282

14,871

14,893

13,439

13,991

15,463

- 5,000 10,000 15,000 20,000 25,000 30,000 35,000

2019 Payroll per Employee

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Payroll per Employee by State

Rank 1.07197 07 population35 Alabama 35 12,618 12,618$ 4,627,851 35,62524 Alaska 24 13,585 13,585$ 683,478 46,778

4 Arizona 4 17,954 17,954$ 6,338,755 35,97916 Arkansas 16 14,696 14,696$ 2,834,797 34,723

5 California 5 17,803 17,803$ 36,553,215 44,98011 Colorado 11 15,459 15,459$ 4,861,515 45,135

6 Connecticut 6 16,406 16,406$ 3,502,309 58,90825 Delaware 25 13,498 13,498$ 588,292 41,940

8 Florida 8 15,999 15,999$ 18,251,243 40,34422 Georgia 22 13,937 13,937$ 9,544,750 36,869

1 Hawaii 1 19,851 19,851$ 1,283,388 44,02444 Idaho 44 11,130 11,130$ 1,499,402 33,74913 Illinois 13 15,059 15,059$ 12,852,548 44,81541 Indiana 41 11,896 11,896$ 6,345,289 36,90250 Iowa 50 9,054 9,054$ 2,988,046 42,12627 Kansas 27 13,058 13,058$ 2,775,997 41,83530 Kentucky 30 12,856 12,856$ 4,241,474 35,04119 Louisiana 19 14,556 14,556$ 4,293,204 39,41334 Maine 34 12,661 12,661$ 1,317,207 39,48117 Maryland 17 14,676 14,676$ 5,618,344 51,97110 Massachusetts 10 15,693 15,693$ 6,449,755 54,68715 Michigan 15 14,758 14,758$ 10,071,822 37,49714 Minnesota 14 14,836 14,836$ 5,197,621 46,22733 Mississippi 33 12,727 12,727$ 2,918,785 33,07342 Missouri 42 11,805 11,805$ 5,878,415 39,04946 Montana 46 10,838 10,838$ 957,861 37,37049 Nebraska 49 9,995 9,995$ 1,774,571 43,143

3 Nevada 3 17,991 17,991$ 2,565,382 37,36136 New Hampshire 36 12,572 12,572$ 1,315,828 47,05812 New Jersey 12 15,392 15,392$ 8,685,920 53,62832 New Mexico 32 12,742 12,742$ 1,969,915 35,079

2 New York 2 18,657 18,657$ 19,297,729 52,09528 North Carolina 28 12,909 12,909$ 9,061,032 37,04947 North Dakota 47 10,730 10,730$ 639,715 51,89337 Ohio 37 12,555 12,555$ 11,466,917 39,28920 Oklahoma 20 14,484 14,484$ 3,617,316 39,00618 Oregon 18 14,662 14,662$ 3,747,455 38,78629 Pennsylvania 29 12,905 12,905$ 12,432,792 43,61631 Rhode Island 31 12,771 12,771$ 1,057,832 44,99040 South Carolina 40 12,207 12,207$ 4,407,709 34,26643 South Dakota 43 11,218 11,218$ 796,214 43,65926 Tennessee 26 13,140 13,140$ 6,156,719 37,678

7 Texas 7 16,285 16,285$ 23,904,380 41,47138 Utah 38 12,339 12,339$ 2,645,330 34,60121 Vermont 21 14,147 14,147$ 621,254 42,99423 Virginia 23 13,820 13,820$ 7,712,091 47,082

9 Washington 9 15,853 15,853$ 6,468,424 45,41345 West Virginia 45 10,839 10,839$ 1,812,035 34,47748 Wisconsin 48 10,418 10,418$ 5,601,640 40,53739 Wyoming 39 12,242 12,242$ 522,830 48,670


The competition for talent is local, with the supply and demand dynamics of each state driving compensation. When it states "no data", there wasn't a sufficient sample size of data for the state.

- 5,000 10,000 15,000 20,000 25,000


Job Categorization Benchmarks

Job Categories as a % of Total Employees

Management & Finance 16.1%

Management 2.8% 2.8% 164

Office and Administrative Support 12.5% 12.5% 166

Business and Financial Operations 0.8% 0.8% 165

Legal 0.0% 0.0% 167

Sales & Marketing 9.8%

Sales and Related 4.7% 4.7% 168

Marketing 5.1% 5.1% 169

Technology, Engineering & Science 0.6%

IT 0.1% 0.1% 170

Technical & Health 0.5% 0.5% 171

Engineers 0.0% 0.0% 172

Scientists 0.0% 0.0% 173

Service, Support & Training 61.3%

Service & Care 54.7% 54.7% 174

Food Preparation & Serving 4.4% 4.4% 175

Education & Training 1.6% 1.6% 176

Community & Social Service 0.2% 0.2% 177

Healthcare Support 0.6% 0.6% 178

Operations 12.3%

Transp. and Material Moving 0.3% 0.3% 179

Installation, Maint., and Repair 1.8% 1.8% 180

Production 0.1% 0.1% 181

Building and Grounds Maintenance 4.8% 4.8% 185

Construction and Extraction 0.1% 0.1% 183

Protective Service 5.3% 5.3% 184


Ensuring your company has the right people in the right roles, is just as important as having the right number of people and the proper compensation. Pay particular attention to management ratios, and the three higher-level categories of 1. management & finance, 2. sales, service & marketing, and 3. operations.

0% 10% 20% 30% 40% 50% 60%


Job Categorization Pay Ranges

Health Clubs1.0113

Industry Pay RangesBottom Bottom Top Top

Management & Finance 10% 25% Mean 75% 90%

Management $16.51 $23.07 $42.70 $50.96 $78.42 187

Office and Administrative Support $8.82 $9.90 $13.69 $15.60 $20.83 189

Business and Financial Operations $12.66 $17.39 $25.99 $32.13 $44.11 188

Legal # # # # # 190

Sales & Marketing 38

Sales and Related $8.86 $9.98 $16.28 $17.60 $29.26 191

Arts, Design, Entertainment, Media $9.82 $11.81 $21.05 $26.74 $36.44 192

Technology, Engineering & Science 42

Computers $13.88 $18.73 $28.59 $36.06 $46.56 193

Technical & Healthcare $11.14 $16.83 $28.10 $33.55 $46.65 194

Engineering & Architecture # # # # # 195

Life, Physical & Social Science # # # # # 196

Service, Support & Training 50

Personal Service & Care $9.18 $10.91 $18.55 $24.03 $31.87 197

Food Preparation & Serving $8.80 $9.63 $13.11 $14.47 $19.29 198

Education, Training & Library $9.27 $10.99 $17.91 $22.99 $30.39 199

Community & Social Service $9.46 $13.82 $21.72 $25.91 $37.64 200

Healthcare Support $9.69 $11.85 $22.18 $27.97 $43.76 201

Operations

Transportation and Material Moving $9.50 $10.95 $15.61 $18.07 $24.31 202.00

Installation, Maint., and Repair $9.84 $11.77 $17.78 $21.87 $28.89 203.00

Production $9.69 $11.13 $13.84 $15.58 $19.05 204.00

Building and Grounds Maintenance $9.27 $10.65 $13.47 $14.69 $19.48 205.00

Construction and Extraction $12.76 $14.89 $23.54 $29.75 $40.99 206.00

Protective Service $8.48 $9.31 $11.70 $12.28 $15.83 207.00


For those roles and people who are critical to the success of your business, it is important to understand how their compensation compares to the pay ranges of the industry. Below are the pay ranges of the high-level job categories. The bottom 10% represents the average that the 10% lowest paid receive in hourly pay, while the top 90% represents the average that the 10% highest paid receive in hourly pay. In those instances where the sample size was not statistically significant, the figures are left blank.


Top 20 Industry Jobs -Percent of Employment

Top Jobs - Percent of Total Employment

1 35.9% 24

2 9.3% 25

3 6.8% 26

4 6.0% 27

5 5.0% 28

6 4.9% 29

7 3.8% 30

8 2.8% 31

9 2.6% 32

10 2.3% 33

11 2.0% 34

12 1.5% 35

13 1.3% 36

14 1.2% 37

15 1.1% 38

16 1.1% 39

17 1.1% 40

18 0.9% 41

19 0.6% 42

20 0.6% 43


Miscellaneous Protective Service Workers

Counter and Rental Clerks and Parts Salespersons

Office Clerks, General

Fast Food and Counter Workers

Maintenance and Repair Workers, General

General and Operations Managers

Self-Enrichment Education Teachers

Miscellaneous Sales Representatives, Services

Customer Service Representatives

First-Line Supervisors of Personal Service Workers

Building Cleaning Workers

Athletes, Coaches, Umpires, and Related Workers

The below metrics go into the details of the industry's top jobs ranked by percent of total employment.

Cashiers

Cooks

Grounds Maintenance Workers

Waiters and Waitresses

Childcare Workers

Receptionists and Information Clerks

Miscellaneous Entertainment Attendants and Related Workers

Recreation and Fitness Workers

0% 10% 20% 30% 40%


Top 20 Jobs - Pay Bands

1.01

Top Detailed Jobs - Pay Bands Bottom Bottom Top Top

10% 25% Mean 75% 90%

1 $9.67 $12.17 $21.47 $27.62 $36.98 24

2 $8.80 $9.91 $11.69 $12.77 $15.09 25

3 $8.64 $9.46 $11.96 $13.62 $17.03 26

4 $8.34 $9.10 $11.04 $12.02 $14.79 27

5 $8.45 $9.26 $11.16 $12.00 $14.66 28

6 * * * * * 29

7 $9.20 $10.53 $12.83 $14.09 $18.05 30

8 $11.97 $14.71 $20.83 $25.48 $31.34 31

9 $8.83 $10.10 $13.13 $14.67 $19.16 32

10 $9.57 $11.33 $19.76 $23.39 $36.72 33

11 $16.23 $22.88 $41.51 $49.91 $76.39 34

12 $9.63 $11.48 $16.85 $20.50 $26.70 35

13 $8.48 $9.18 $10.87 $11.90 $14.11 36

14 $9.33 $10.86 $15.17 $18.15 $23.62 37

15 $8.44 $9.14 $11.60 $12.39 $16.67 38

16 $9.31 $11.47 $19.23 $25.39 $31.78 39

17 $8.77 $9.46 $12.38 $14.06 $18.16 40

18 $9.38 $10.83 $13.49 $15.21 $19.24 41

19 $9.93 $11.46 $14.29 $16.46 $19.63 42

20 $8.45 $9.18 $10.97 $12.12 $14.63 43 Waiters


Cashiers

Cooks

Grounds Maintenance Workers

Waiters and Waitresses

Self-Enrichment Education Teachers

Counter and Rental Clerks and Parts Salespersons

Office Clerks, General

Fast Food and Counter Workers

Maintenance and Repair Workers, General

General and Operations Managers

Miscellaneous Sales Representatives, Services

Customer Service Representatives

First-Line Supervisors of Personal Service Workers

Building Cleaning Workers

Athletes, Coaches, Umpires, and Related Workers

Miscellaneous Protective Service Workers

Childcare Workers

Below are the details of the wage bands for the industry's top jobs. The bottom 10% represents the average that the 10% lowest paid receive in hourly pay, while the top 90% represents the average that the 10% highest paid receive in hourly pay. In those instances where the sample size was not statistically significant, the figures are left blank.

Receptionists and Information Clerks

Miscellaneous Entertainment Attendants and Related Workers

Recreation and Fitness Workers


Total Employees by State

Rank Employees 1.15506

Alabama 30 6,037 6,037$ 4,627,851

Alaska 45 2,191 2,191$ 683,478

Arizona 20 12,835 12,835$ 6,338,755

Arkansas 43 2,553 2,553$ 2,834,797

California 1 89,990 89,990$ 36,553,215

Colorado 17 15,306 15,306$ 4,861,515

Connecticut 19 13,732 13,732$ 3,502,309

Delaware 39 3,075 3,075$ 588,292

Florida 7 29,994 29,994$ 18,251,243

Georgia 18 14,874 14,874$ 9,544,750

Hawaii 44 2,206 2,206$ 1,283,388

Idaho 38 3,112 3,112$ 1,499,402

Illinois 4 35,946 35,946$ 12,852,548

Indiana 21 12,326 12,326$ 6,345,289

Iowa 25 9,556 9,556$ 2,988,046

Kansas 29 6,056 6,056$ 2,775,997

Kentucky 27 6,401 6,401$ 4,241,474

Louisiana 28 6,079 6,079$ 4,293,204

Maine 41 2,732 2,732$ 1,317,207

Maryland 16 16,703 16,703$ 5,618,344

Massachusetts 8 29,141 29,141$ 6,449,755

Michigan 15 17,750 17,750$ 10,071,822

Minnesota 13 19,269 19,269$ 5,197,621

Mississippi 37 3,345 3,345$ 2,918,785

Missouri 22 12,128 12,128$ 5,878,415

Montana 40 2,942 2,942$ 957,861

Nebraska 31 5,632 5,632$ 1,774,571

Nevada 34 4,871 4,871$ 2,565,382

New Hampshire 33 4,901 4,901$ 1,315,828

New Jersey 5 34,237 34,237$ 8,685,920

New Mexico 42 2,696 2,696$ 1,969,915

New York 2 65,236 65,236$ 19,297,729

North Carolina 11 23,647 23,647$ 9,061,032

North Dakota 46 1,989 1,989$ 639,715

Ohio 9 24,960 24,960$ 11,466,917

Oklahoma 35 4,467 4,467$ 3,617,316

Oregon 24 9,611 9,611$ 3,747,455

Pennsylvania 6 31,978 31,978$ 12,432,792

Rhode Island 36 3,703 3,703$ 1,057,832

South Carolina 26 6,945 6,945$ 4,407,709

South Dakota 49 1,602 1,602$ 796,214

Tennessee 23 10,327 10,327$ 6,156,719

Texas 3 45,674 45,674$ 23,904,380

Utah 32 5,213 5,213$ 2,645,330

Vermont 48 1,893 1,893$ 621,254

Virginia 10 24,323 24,323$ 7,712,091

Washington 12 22,458 22,458$ 6,468,424

West Virginia 47 1,905 1,905$ 1,812,035

Wisconsin 14 18,114 18,114$ 5,601,640

Wyoming 50 1,021 1,021$ 522,830


It is always good to know how large the industry talent pool is in a state. When it states "no data", there wasn't a sufficient sample size of data for the state.

- 20,000 40,000 60,000 80,000 100,000


State Population to Every Industry Employee

Pop. Per 511 Rank Employee 0

46 Alabama 46 807 6,037$ 4874747

13 Alaska 13 338 2,191$ 739795

31 Arizona 31 547 12,835$ 7016270

50 Arkansas 50 1,177 2,553$ 3004279

24 California 24 439 89,990$ 39536653

19 Colorado 19 366 15,306$ 5607154

2 Connecticut 2 261 13,732$ 3588184

8 Delaware 8 313 3,075$ 961939

41 Florida 41 700 29,994$ 20984400

42 Georgia 42 701 14,874$ 10429379

38 Hawaii 38 647 2,206$ 1427538

32 Idaho 32 552 3,112$ 1716943

16 Illinois 16 356 35,946$ 12802023

29 Indiana 29 541 12,326$ 6666818

10 Iowa 10 329 9,556$ 3145711

26 Kansas 26 481 6,056$ 2913123

40 Kentucky 40 696 6,401$ 4454189

44 Louisiana 44 771 6,079$ 4684333

27 Maine 27 489 2,732$ 1335907

18 Maryland 18 362 16,703$ 6052177

1 Massachusetts 1 235 29,141$ 6859819

33 Michigan 33 561 17,750$ 9962311

6 Minnesota 6 289 19,269$ 5576606

48 Mississippi 48 892 3,345$ 2984100

28 Missouri 28 504 12,128$ 6113532

17 Montana 17 357 2,942$ 1050493

14 Nebraska 14 341 5,632$ 1920076

36 Nevada 36 616 4,871$ 2998039

4New Hampshire 4 274 4,901$ 1342795

3 New Jersey 3 263 34,237$ 9005644

45 New Mexico 45 775 2,696$ 2088070

7 New York 7 304 65,236$ 19849399

23 North Carolina 23 434 23,647$ 10273419

20 North Dakota 20 380 1,989$ 755393

25 Ohio 25 467 24,960$ 11658609

47 Oklahoma 47 880 4,467$ 3930864

22 Oregon 22 431 9,611$ 4142776

21 Pennsylvania 21 400 31,978$ 12805537

5 Rhode Island 5 286 3,703$ 1059639

43 South Carolina 43 723 6,945$ 5024369

30 South Dakota 30 543 1,602$ 869666

39 Tennessee 39 650 10,327$ 6715984

37 Texas 37 620 45,674$ 28304596

35 Utah 35 595 5,213$ 3101833

11 Vermont 11 329 1,893$ 623657

15 Virginia 15 348 24,323$ 8470020

12 Washington 12 330 22,458$ 7405743

49 West Virginia 49 953 1,905$ 1815857

9 Wisconsin 9 320 18,114$ 5795483

34 Wyoming 34 567 1,021$ 579315


Below is the data set of the state residents per each industry employee by state. When it states "no data", there wasn't a sufficient sample size of data for the state.

- 200 400 600 800 1,000 1,200 1,400

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Kentley Insights...Kentley Insights is the leader in data-driven industry market research reports. This report includes extensive data sets on the Health Clubs industry, which will