On a normal weekday in mid-November, a quick search of some of the latest stories about the fitness club industry had an all-too-common theme: a struggling economy. The headlines themselves told the stories:

Fitness clubs offer discounts as economy falters.

Trying to stay in shape: Tough times weigh on fitness clubs.

Gym, spas stress value of fighting stress in hard times.

Although these stories represent a snapshot of what took place in the month of November, they paint a broader picture of the battles the industry faced in 2008. Sure, there were many other big stories in the industry this past year, such as: Mark Mastrov leaving 24 Hour Fitness, Michael Sheehan leaving 24 Hour to become the CEO of Bally Total Fitness, 24 Hour suing Bally over the hiring of Sheehan, Planet Fitness putting World Gym up for sale, David Schnabel resigning as CEO of Gold's Gym and the release of physical activity guidelines by the U.S. Department of Health and Human Services. But for the second straight year, no story affected club owners and operators more than the economy.

Due in large part to the economy, some clubs closed, and some have tried to balance the books by trimming operating costs and revamping their retention efforts. Some club companies, such as Life Time Fitness, Chanhassen, MN, even had to reduce staff. Manufacturers took a hit in the economy as well, also resulting in some layoffs as well as some plant consolidations. Soaring gas prices affected both members and manufacturers.

The economy has no doubt worried several club operators, but Rick Caro, president of Management Vision, New York, says the industry is more worried than it should be.

"Based on several hundred clubs that I've talked to in recent months, clubs are faring OK. Their net memberships are about the same as the year before," Caro says. "They're more worried about attrition escalating tremendously. It turns out that, yes, there's been a slight increase in attrition for a number of club groups, but not significantly and not something that's at an alarming proportion."

Funding also is a concern for club operators, Caro says.

"[Club owners] don't know what the debt markets are going to look like, so they don't know what they can borrow, if they can fund a new deal, if they can fund an expansion, if they are able to access capital in a significant way," Caro says. "At this point, it's just not clear that [club owners] have an understanding of how these markets will behave once [lenders] start lending again. It's not clear, for some clubs, whether there's an exit strategy in the near future."

Like Caro, Geoff Dyer, founder and vice chairman of Lifestyle Family Fitness, St. Petersburg, FL, says attrition throughout the industry has not gotten too far out of hand, but he adds that new member sales have decreased throughout the industry.

"I think it's too early to tell to what extent the economy is going to affect the health club industry," Dyer says. "We're in the beginning of this slowdown. Good companies find a way to reinvent themselves in all kinds of economies."

Not all the news involving the economy has been negative. LA Fitness, Irvine, CA, opened more than 50 clubs in 2008, Caro says. Most club companies, until the last couple of months, have done a better job of growing non-dues revenue, he adds.

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