Some observers say that with the recent acquisition activity and involvement of private equity firms, the health club industry is maturing. One analyst says that is not the case.

“The industry has not significantly changed in terms of its maturation,” says Rick Caro, president of Management Vision, New York. “It’s always learning, but the level of learning and the level of action and significant change has not been substantial enough.”

According to Caro, here are 10 points as to why the industry has not matured over the past three years:

1. There are no discernible segments in the industry.

An example, Caro says, is Life Time Fitness, a big-box club that recently bought smaller facilities from Lifestyle Family Fitness.

“Although [Life Time Fitness] may try to instill some programs in there that are similar and are part of their culture, it’s not clear that they really are focusing on a similar story or the same story, and it’s not clear that they’re segmented, either.”

2. There is no greater understanding of local markets and no greater club positioning and differentiation.

Clubs continue to rely on price, physical plant and equipment to separate themselves from the competition, Caro says.

3. The industry is not growing beyond 15 percent of the U.S. population.

There also is no outside benefit from insurance companies, HMOs and the federal government to help grow the industry, Caro adds.

4. The industry continues to face the same challenging debt markets that it has been facing over the last two or three years.

“Nothing has really changed there,” Caro says.

5. Few new private equity firms are either entering or exiting the industry.

“When one talks about the industry growing up and becoming more professional and becoming more well known to other industries and becoming attractive to analogous industries, maybe in the leisure world, we’re not doing any of that because the financial players are not having any new or different role than they’ve had before,” Caro says.

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