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Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

features

The Health 'Mega-Trend'

David Stalker, CEO of ukactive, explains how the nation’s declining health is attracting investors back into the fitness sector

Published in Health Club Management 2013 issue 11

The last 20 years haven’t quite lived up to expectations when it comes to investment into our sector.

Yet it seems this investment hiatus is coming to an end, with notable recent transactions including those of Fitness First, Pure Gym, The Gym Group and David Lloyd Leisure. With these transactions in mind, ukactive – along with the global financial advisory institution Rothschild – recently hosted a unique event that brought together members of the Vanguard Group with a number of private equity and venture capitalist organisations.

The event looked at why investors have recently been attracted back to our sector, and the potential the sector holds for growth. Oren Peleg, MD at Oaktree Capital Management, was just one of the experts who identified how a series of ‘mega-trends’ were creating unique opportunities for physical activity provision: the most notable mega-trend being the decline of the nation’s health and the activity sector’s opportunity to provide a solution for this issue.

An emerging role
As I said at this year’s Leisure Industry Week, if our sector is to grow, we must move away from a solely fitness solution towards delivering health outcomes.

Through a mix of technological advancement, changes in behaviour and modern lifestyles, we’ve witnessed a drastic decline of more than 35 per cent in physical activity levels.

Sedentary lifestyles go hand-in-hand with obesity, and we’re now at a point where there are more deaths globally from obesity than from malnutrition.

I’m not being flippant when I say this could bankrupt the NHS: it’s impossible to continue paying out huge sums due to the health problems linked with inactive lifestyles. Reports say the NHS will be bankrupt by 2050 if trends continue.

And this is where our sector comes in, and why investors are looking at us: we have the potential to be a leading vehicle in helping get the nation active and healthy, with physical activity proven to reduce the risk of developing over 20 chronic diseases, improve quality of life and even aid rehabilitation from injury.

Investors are also looking at our sector because of the changes that have been made to the health system, with an emphasis on local commissioning of local delivery for local needs. A new executive agency now exists – Public Health England – with a remit ranging from protecting and improving the nation’s health to building the public health system. It’s also the first time public health funding has ever been ring-fenced in the UK, giving clinicians much more responsibility for spending the £80m budget in England.

Proving our worth
Our local communities need our services, as do the NHS and local authority public health. We now have a route in. However, we can’t simply assume government and health will naturally come to our sector: we have to adapt and change towards a health delivery focus to be considered a worthy partner.

Regarding the public health agenda, we must start by establishing the true impact we’re making, and can make, on the nation’s health. We must provide evidence that competes with existing health service providers. The ukactive Research Institute at the Universities of Greenwich and Aberystwyth is a body to take on this challenge, and is leading the largest study of its kind into the impact of physical activity in prevention, management and treatment of chronic diseases.

We must also must look at the skills of our professionals, at our facilities, and at the outcomes we collect on a daily basis. The investment community is now paying attention due to national trends like obesity. We also know our sector will only grow if we actively capitalise on such trends and opportunities. If we do this, investors will continue to stand up, pay attention, and investment will flow.

FOR MORE INFORMATION

If you would like more information on ukactive’s public affairs and policy work, please contact Stephen Wilson, director of public affairs and policy: [email protected]

David Stalker, CEO of ukactive
David Stalker, CEO of ukactive
Investors are now looking at the fitness sector as a valuable potential solution to the nation’s health issues
Investors are now looking at the fitness sector as a valuable potential solution to the nation’s health issues
http://www.leisureopportunities.com/images/HCM2013_11UK.gif
David Stalker explains how investors are being attracted back to the fitness sector
People
Taking on BMF wasn’t without its risks: it might seem a simple model, but it’s actually a tough business to make any serious value out of
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HCM people

Ben Gotting & Dave Thomas

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Because of our strong focus on community and inclusivity our members really do range from unemployed, and even homeless, to CEOs and board members of major institutions and celebrities
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Jimmy had the brilliant idea to put the logos of all of the current cycling brands in and around NYC onto a piece of paper and we handed it to the investor at the end of our presentation. Then we handed a blank piece of paper and referenced that this was the current number of cool fitness concepts in the world and how we would like the investor to help us fill that page. A day later he wrote us a cheque
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Jak Phillips went to FIBO China and filed this report
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Lauren Heath-Jones rounds up the latest product launches in health and fitness
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US-based fitness franchise UFC Gym has opened its first European club. The 18,000sq ft (1,670sq ...
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Public Health England (PHE) and the Centre for Ageing Better (CAB) have set out their ...
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Thrive Global, the wellness and behaviour change tech firm founded by Arianna Huffington, has acquired ...
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Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Fusion Lifestyle incorporates Power Plate into ‘INTENCITY Studios’
Fusion Lifestyle, the highly experienced sports and leisure management brand is working with Power Plate to integrate vibration training into its high intensity fitness studios.
Featured supplier news
Featured supplier: The secrets to designing a stand-out fitness studio
The design and construction of a group fitness or exercise studio can have a big impact on the success of your gym.
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promotion
An ever-increasing number of Brits are engaging in sporting events, setting themselves goals and looking to increase their fitness levels....
Opinion: Dr Crionna Tobin on nutritional training for PTs and fitness experts
As an industry, we still underestimate the power of a truly varied fitness regime - and the growing appetite for it, especially among emerging customer segments.
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With over 600 clients worldwide in Spa, Golf, Health Club, Hotel and Kids Play Leisure, ...
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Merrithew™ enriches the lives of others with responsible exercise modalities and innovative, multidisciplinary fitness offerings ...
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Click on a catalogue to view it online
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Diary dates
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Diary dates
30-31 Oct 2019
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Diary dates
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JW Marriott Miami Turnberry Resort, Aventura,
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29 Nov 2019
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Diary dates
29-30 Jan 2020
Holiday Inn San Francisco-Golden Gateway, San Francisco, United States
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23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
10-27 Jun 2020
tbc, Pinggu, China
Diary dates
17-18 Jun 2020
ExCeL London, London, United Kingdom
Diary dates

features

The Health 'Mega-Trend'

David Stalker, CEO of ukactive, explains how the nation’s declining health is attracting investors back into the fitness sector

Published in Health Club Management 2013 issue 11

The last 20 years haven’t quite lived up to expectations when it comes to investment into our sector.

Yet it seems this investment hiatus is coming to an end, with notable recent transactions including those of Fitness First, Pure Gym, The Gym Group and David Lloyd Leisure. With these transactions in mind, ukactive – along with the global financial advisory institution Rothschild – recently hosted a unique event that brought together members of the Vanguard Group with a number of private equity and venture capitalist organisations.

The event looked at why investors have recently been attracted back to our sector, and the potential the sector holds for growth. Oren Peleg, MD at Oaktree Capital Management, was just one of the experts who identified how a series of ‘mega-trends’ were creating unique opportunities for physical activity provision: the most notable mega-trend being the decline of the nation’s health and the activity sector’s opportunity to provide a solution for this issue.

An emerging role
As I said at this year’s Leisure Industry Week, if our sector is to grow, we must move away from a solely fitness solution towards delivering health outcomes.

Through a mix of technological advancement, changes in behaviour and modern lifestyles, we’ve witnessed a drastic decline of more than 35 per cent in physical activity levels.

Sedentary lifestyles go hand-in-hand with obesity, and we’re now at a point where there are more deaths globally from obesity than from malnutrition.

I’m not being flippant when I say this could bankrupt the NHS: it’s impossible to continue paying out huge sums due to the health problems linked with inactive lifestyles. Reports say the NHS will be bankrupt by 2050 if trends continue.

And this is where our sector comes in, and why investors are looking at us: we have the potential to be a leading vehicle in helping get the nation active and healthy, with physical activity proven to reduce the risk of developing over 20 chronic diseases, improve quality of life and even aid rehabilitation from injury.

Investors are also looking at our sector because of the changes that have been made to the health system, with an emphasis on local commissioning of local delivery for local needs. A new executive agency now exists – Public Health England – with a remit ranging from protecting and improving the nation’s health to building the public health system. It’s also the first time public health funding has ever been ring-fenced in the UK, giving clinicians much more responsibility for spending the £80m budget in England.

Proving our worth
Our local communities need our services, as do the NHS and local authority public health. We now have a route in. However, we can’t simply assume government and health will naturally come to our sector: we have to adapt and change towards a health delivery focus to be considered a worthy partner.

Regarding the public health agenda, we must start by establishing the true impact we’re making, and can make, on the nation’s health. We must provide evidence that competes with existing health service providers. The ukactive Research Institute at the Universities of Greenwich and Aberystwyth is a body to take on this challenge, and is leading the largest study of its kind into the impact of physical activity in prevention, management and treatment of chronic diseases.

We must also must look at the skills of our professionals, at our facilities, and at the outcomes we collect on a daily basis. The investment community is now paying attention due to national trends like obesity. We also know our sector will only grow if we actively capitalise on such trends and opportunities. If we do this, investors will continue to stand up, pay attention, and investment will flow.

FOR MORE INFORMATION

If you would like more information on ukactive’s public affairs and policy work, please contact Stephen Wilson, director of public affairs and policy: [email protected]

David Stalker, CEO of ukactive
David Stalker, CEO of ukactive
Investors are now looking at the fitness sector as a valuable potential solution to the nation’s health issues
Investors are now looking at the fitness sector as a valuable potential solution to the nation’s health issues
http://www.leisureopportunities.com/images/HCM2013_11UK.gif
David Stalker explains how investors are being attracted back to the fitness sector
Latest News
US-based fitness franchise UFC Gym has opened its first European club. The 18,000sq ft (1,670sq ...
Latest News
Public Health England (PHE) and the Centre for Ageing Better (CAB) have set out their ...
Latest News
Physical activity bodies ukactive and EuropeActive have agreed to strengthen their partnership in the event ...
Latest News
The first-ever FIBO Southeast Asia fitness event will be held in Singapore next year. Taking ...
Latest News
Cancer survivors should undertake a minimum of 90 minutes of aerobic and resistance training each ...
Latest News
Thrive Global, the wellness and behaviour change tech firm founded by Arianna Huffington, has acquired ...
Latest News
Regular exercise is highly beneficial for all patients with cardiovascular disease regardless of age. A ...
Latest News
LXA has inserted a 2,000sq ft (186sq m) indoor/outdoor boxing gym into a mixed-use building ...
Latest News
The number of UK adults classed as physically active has increased by 1 million in ...
Latest News
Australian health club operator Viva Leisure has acquired eight Healthworks Fitness Centres in the state ...
Latest News
The physical activity economy is now a US$828bn (€752bn, £655bn) market – and its value ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Fusion Lifestyle incorporates Power Plate into ‘INTENCITY Studios’
Fusion Lifestyle, the highly experienced sports and leisure management brand is working with Power Plate to integrate vibration training into its high intensity fitness studios.
Featured supplier news
Featured supplier: The secrets to designing a stand-out fitness studio
The design and construction of a group fitness or exercise studio can have a big impact on the success of your gym.
Opinion
promotion
An ever-increasing number of Brits are engaging in sporting events, setting themselves goals and looking to increase their fitness levels....
Opinion: Dr Crionna Tobin on nutritional training for PTs and fitness experts
As an industry, we still underestimate the power of a truly varied fitness regime - and the growing appetite for it, especially among emerging customer segments.
Opinion: Collaboration vs aggregation - what’s the difference?
Company profiles
Company profile: EZ-Runner Systems Ltd
With over 600 clients worldwide in Spa, Golf, Health Club, Hotel and Kids Play Leisure, ...
Company profiles
Company profile: Merrithew™ - Leaders in Mindful Movement™
Merrithew™ enriches the lives of others with responsible exercise modalities and innovative, multidisciplinary fitness offerings ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Wearable technology solutions
MyZone: Wearable technology solutions
Skincare
Sothys: Skincare
Exercise equipment
Matrix Fitness: Exercise equipment
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Member access schemes
Move GB: Member access schemes
Lockers/interior design
Fitlockers: Lockers/interior design
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Trade associations
International SPA Association - iSPA: Trade associations
Management software
GymSales: Management software
Audio visual
Hutchison Technologies: Audio visual
Property & Tenders
Kirklees Active Leisure
Property & Tenders
Diary dates
28-30 Oct 2019
Hotel Royal Savoy, Lausanne, Switzerland
Diary dates
30-31 Oct 2019
NEC, Birmingham, United Kingdom
Diary dates
05-08 Nov 2019
Koelnmesse, Cologne, Germany
Diary dates
21-22 Nov 2019
JW Marriott Miami Turnberry Resort, Aventura,
Diary dates
29 Nov 2019
The King’s Fund, London, United Kingdom
Diary dates
29-30 Jan 2020
Holiday Inn San Francisco-Golden Gateway, San Francisco, United States
Diary dates
23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
10-27 Jun 2020
tbc, Pinggu, China
Diary dates
17-18 Jun 2020
ExCeL London, London, United Kingdom
Diary dates
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