Industry Analysis & Industry Trends
The Libraries, Museums and Cultural Activities industry experienced a drastic reaction to the subdued economic climate of 2007-08 and 2008-09. As Britons stayed home, paid down debt and saved money, they were less likely to visit cultural institutions or donate to them. Similarly, the global financial crisis saw international visitors to the United Kingdom dwindle. On top of this, government funds, a major source of industry revenue, were harder for operators to come by. The end result of this was subdued revenue growth, averaging 1.8%over the five years to 2011-12.
However, this followed some robust growth in earlier years... purchase to read more
Industry Report - Industry Investment Chapter
The capital intensity of an industry is determined by the ratio of capital to labour costs, using depreciation as a proxy for capital. IBISWorld regards the industry to have a high level of capital intensity, with every pound spent on capital requiring £2.80 to be spent on labour.
Although depreciation expense is generally volatile year on year, it typically accounts for over 10% of their costs, with large items including replacing and maintaining attractions and displays and buildings. Libraries invest significantly in books and other printed media, and these must be replaced as they wear out or are damaged. The cost of the industry's large labour requirement in reduced by the practice of utilising volunteer labour, particularly for fundraising and marketing activities... purchase to read more