Liftonomics

Gainz. In this day and age it seems everybody wants them. Increasingly, more people are hopping aboard the "gain train" and finding a new active lifestyle. And no, this isn't some arbitrary guess, the numbers support it! So, sit back and crack open a protein shake and enjoy this blog.

Did you know there's over 34,000 fitness clubs in the U.S. with a total revenue of $24.2 billion in 2014. When you look at the industry on a global scale, the revenue is a over $80 billion!

When I speak of revenue, I am referring to a simple economic concept: revenue is simply the amount of money that firms receive. Do not get this confused with profit! Profit (denoted as π in economics) is the difference between revenue and costs. Revenue minus costs = profit. 

Will we all look like this soon? Photo: daimanuel.com

But let's take a less broad view and look at Penn State. According to the National Collegiate Fitness Index (CFI), PSU ranked number 1 for active lifestyles among large universities. According to Josh Davis, strength and fitness program manager in Campus Recreation, “Campus Recreation offerings together with kinesiology classes provide numerous opportunities for our student body to become involved." And it's true—the amount of opportunities at Penn State from IM sports to the advanced fitness centers make an active lifestyle more accessible. The fact that sports and other activities are more convenient for people to join means more people will join.

An increase in the participation of sports is an example of a key economic driver for an increase in activity levels. What's an economic driver you might ask? It's simply something that might affect a company's revenue or stock price. Other drivers for the fitness industry and specifically Penn State gyms could be the age of the population. Greater numbers of young people are more likely to work out and at college there's not shortage of youthful energy. 

Oh, how we love you PSU. Photo: new.psu.edu

The age of Penn State students might be one reason why our gyms received almost 40,000 visits per week, but as budding economists we want to ask what other factors may be at play.

It's believed that it's us, me and you, who are changing the fitness industry. Millennials have taken a keen liking to "athleisure" brands like LuLuLemon. This clothes which can be used inn the gym or for casual dress make working out more convenient. In fact, the U.S. activewear market grew a staggering 8% in 2013, with $35.1 billion in sales.

LuLuLemon has inspired younger generations to get active. Photo: huffingtonpost.com

This new trend in clothing as well as the use of social media is motivating people to hit the gym. Millennials especially love to partake in communal exercises and then brag about it on social media afterwards. Think about it. When was the last time someone did a Color Run or Tough Mudder and didn't post it somewhere? 

Thinking like an economist helps us explain hard questions like "why are more working out?" and gives a more in depth understanding of the world around us. Thanks for reading and go make some gainz!