Dec 17, 2007 11:25 AM

Before the industry moves into the new year, we take a moment to reflect on the past year in which the worries about the economy, a big bankruptcy and growth in franchised clubs took center stage.

Top Trends in 2007

1. Growth of Franchised Key-Card and Low-Cost Clubs

One of the fastest growing trends in 2007 was the growth of franchised key-card clubs and low-cost clubs. All-access club franchisors Anytime Fitness and Snap Fitness are the two main leaders of the key-card club growth. Both were named on Franchise Market Magazine’s list of fastest growing franchises (Snap as No. 1 and Anytime as No. 3). Anytime still has the most franchised clubs at 450 open, but Snap Fitness, with about 400 clubs open, is growing faster and could surpass Anytime in 2008. Planet Fitness is the biggest low-cost club company, coming in at more than 170 open clubs.

2. Resurgence of Group Fitness

In 2007, more clubs saw a larger percentage of members using group fitness compared to the past few years. A larger number of clubs are using pre-choreographed routines from the two main group fitness companies, both of which include classes that use free weights, which appeals to men as well as women. These classes, along with sports-related classes such as kickboxing, have resulted in a larger number of men participating in group fitness. In addition, highly publicized classes with tantalizing names such as Strip Tease and Pole Dancing also have drawn in members. The popularity of the TV series “Dancing with the Stars” has drawn members to dance-based classes, which is the fastest growing group exercise activity, up 11 percent over 2006, according to a survey by the IDEA Health & Fitness Association.

3. Lending Took More Time

The ability to borrow money tightened this year, says Roma.

“All the banking ratios and collateralization levels have gotten very onerous in favor of the banks,” he says.

However, Caro says that club owners with good track records still received loans, even though it took longer to get those loans. Banks and lending companies scrutinized potential companies more closely because the lending institutions were being scrutinized more closely and were required to do more documentation, says Caro. It took longer and was considerably more difficult for start-up companies to get financing for the same reason.

4. Growth of Functional Training

Functional training continues to grow at clubs, as part of personal training and as individual workouts. The growth has caused some club owners to redesign or re-purpose areas of their clubs to accommodate this type of training.

5. Growth of Sports-Specific Training

As Baby Boomers and teenagers (and everyone in between) continued their love of sports, the population took its cue from athletes and got in on sports-specific training to help improve its game.

6. Growth of Green Efforts

This effort is still nascent as most club owners who say they want to be more green are still focusing on more environmentally friendly laundering services

or recycling office paper. Few club companies have actually ventured into

applying for a Leadership in Energy Efficient Design (LEED) certification, which is given by the U.S. Green Building Council.

7. Focus on Corporate Fitness

Corporate fitness isn’t new, but this year saw a growing number of corporations announce a focus on corporate wellness programs. Still, the number of businesses investing in corporate fitness is small, says Caro. There is plenty of room to grow this area in the future.

8. Online Lead Generation

More club owners began leaning on the Internet for lead generation, whether through their own Web sites or through online lead-generation companies. At least seven online lead-generation companies are in existence in the industry today. Gold’s Gym Corp. has stated that its No. 1 priority for next year is to develop online lead-generation capabilities.

Army Fitness and Sports in 2007

The U.S. military experiences some of the same news and trends that the rest of the fitness industry does, but in some ways it is also set apart with its own news and trends. The Army’s fitness installations faced financial uncertainties due to the war in Iraq and Afghanistan.

“Funding is cyclical,” says Karen White, chief sports, Army fitness and aquatics soldier programs directorate, Family and MWR Command. “We make sacrifices at home to ensure our soldiers in combat areas have the resources they need.”

 This means some facilities are not updated or replaced as quickly as she would prefer, she says, and staffing shortages can occur. Despite the funding issues, the men and women serving the needs of the active and inactive soldiers made the best of the situation in several ways. 

1. Standardized Design Criteria for Fitness Centers

This year, the design of fitness facilities was standardized for all facilities moving forward. “No one design will be perfect for everything,” White says.

The standardization included modular components. Installation commanders can now choose the components that suit their population.

2. Standardized Purchases

This year, the Army centralized its equipment purchases to increase buying power. After standardizing cardio equipment purchases in 2005, the Army found it was able to buy a lot more equipment than before through larger, centralized purchases.

“In today’s world, that’s the smartest approach,” White says. “We get more for our money. I’d love to expand on that throughout our facilities—basketball, gym wipes—wherever we can get more product for the money. While the initial process takes a bit longer, it’s worth it.”

3. Fitness Training Comes to the Bases

In 2007, the Army began holding fitness trainings for fitness professionals on its bases rather than at Army meetings or industry shows. Contracted individuals now come directly to the bases to offer the training, according to Janet MacKinnon, Army fitness and aquatics program manager soldier programs directorate, Family and MWR Command.

4. Standardized Job Descriptions

The Army looked at standardizing the job descriptions at military fitness centers in 2007 and ensuring the job titles were the same for each description at each installation.

“This is critical,” says White. “Everyone is calling the same job something else. Soon we’ll have the same name for the same position along with the required certifications and experience.”

5. Equipment in the Field for Deployed Units

Soldiers in deployed units now receive a fitness deployment kit with a waterproof booklet of exercises in addition to a resistance band for upper- and lower-body exercises.

“It’s a neat little something that helps the soldier maintain. We’re trying to come up with something that soldiers can do wherever they are,” White says.

MacKinnon says that the Army is in the process of getting another product to send to Special Forces.

6. AED Deployment

By the end of the year, 95 percent of Army fitness installations will have automated external defibrillators (AEDs). Staff members are being trained to use the devices.

“Last year, with just a few AEDs in our installations, we saved three lives,” White says. “Imagine how many we can save now.”

Medical Wellness Trends

Typically, people think of illness and injury when they think of hospitals, but in 2007, hospital-based fitness facilities showcased the wellness aspect of fitness in several ways. 

1. Hospitals Embrace Medical Wellness

With the higher cost of liability and medical insurance, it’s more apparent that hospitals need to be in the business of prevention rather than just taking care of people after they get sick, says Akron General’s Ribley. In 2006, 855 medical fitness and wellness centers operated around the world, an increase from 715 in 2004, according to the Medical Fitness Association’s biannual report “Benchmarks for Success.” That number is expected to grow to 1,150 by 2010. The growth in the number of centers also corresponds to an increase in the number of individuals being served by medical fitness facilities. The number of members was 1.9 million in 2004, but in 2006, that number grew to 3 million members. By 2010, the association expects members to number more than 4 million.

2. Medical Wellness Adds Revenue

Because of the financial challenges that health care organizations are experiencing, they are looking at a new source of revenue that doesn’t include third-party reimbursement, and wellness centers can often provide that revenue, says Ribley. It also helps them meet their mission of helping people.

Because the hospital centers attract the surrounding community, hospitals that have wellness centers find that the familiarity with the hospital through the wellness center often leads members to choose the hospital when they need medical treatment, Ribley says.

3. Focus on Life

More hospital facilities expanded their offerings in their wellness centers to

more than the physical side of life. They offered programs and services that improve people’s lives, such as health education, nutrition classes and spa services, Ribley says.

“In the hospital programs I’ve visited recently, about every project includes a spa component because it represents the relaxation, feel-good aspect of health,” he says.

That may explain why mind/body exercise continues its growth at medical wellness centers. In fact, one of the Akron General centers added a mind/body studio in 2007.

University Fitness Trends

Universities often seem like isolated communities for their students, but in 2007, many of the trends seen in the general fitness industry were also reflected at universities.

1. Degree Programs

More two- and four-year colleges and universities looked at creating degree programs focused on personal training and club management, according to Ken Baldwin, assistant professor at State University of New York (SUNY)-Plattsburgh. Baldwin formerly was at Purdue University, which offers a degree program in personal fitness training. He is now developing a degree program at SUNY-Plattsburgh titled Fitness and Wellness Leadership that focuses on fitness management, personal fitness training and medically based fitness programming.

2. Accreditation Available for Degree Programs

An accreditation process for degrees in personal fitness training, exercise science and exercise physiology continued in 2007. The process, which began about a year and a half ago, is conducted through the Committee on Accreditation for the Exercise Sciences.

3. Green Buildings

The university community has become more environmentally aware, which has led to constructing green buildings, including rec centers. In fact, more than 400 university presidents signed the Climate Commitment, in which they pledged to complete an emissions inventory within two years, set a target date and interim guidelines for becoming climate neutral, take immediate steps to reduce greenhouse gases, integrate sustainability into the curriculum, and make the action plan, inventory and progress reports publicly available.

4. Wellness Component

Wellness isn’t just a word for for-profit and hospital-based fitness facilities. University facilities also got into the act this year, says Baldwin. Many universities  offered wellness classes and lectures for faculty, staff and students, whether at the rec center or within departments.

5. Group Exercise on the Rise

Baldwin says that group exercise became hot again at university rec centers, thanks, in large part, to systemized programs that attracted men and women and that were free to participants.

Top Trends in Jewish Community Centers in 2007

These top five trends were provided by Anthony Slayen, Jewish Community Center Association continental health and fitness consultant, and Steve Becker, Jewish Community Center Association continental consultant for sports and wellness.

1. Special fitness programs for aging/boomer population
2. Teen fitness programming/youth obesity
3. Accountability and measurement-focused programming
4. Expanded specialized aquatics programming
5. Choreographed group exercise

Additional reporting by Stuart Goldman, managing editor, and Jennipher Shaver, senior associate editor.

 

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