Five industry professionals share their best tips for navigating economic uncertainty during a changing landscape.
As economic uncertainty continues to affect industries across the U.S., the fitness industry is feeling the strain. Inflation, tariffs and labor costs are forcing club operators to reassess spending, shift priorities and overcome new challenges.
In the latest Thought Leaders roundtable, five experienced industry professionals shared their insight on navigating the challenging landscape. The panelists included Scott Gillespie, the founder and president of Saco Sport and Fitness; Chris Craytor, the CEO of acac Fitness and Wellness Center and Welld Health; Jon Brady, the president of Midtown Athletic Clubs; Aaron Moore, the president of VIDA Fitness; and Bill McBride, the CEO, president and co-founder of Active Wellness.
Rising operational costs are an increasing concern for many club owners. Vendors are starting to warn operators of future surcharges and price increases caused by tariffs. “We buy a lot of equipment for our client sites and we’re starting to see some teasers about equipment pricing going up,” said McBride. “It hasn’t been dramatic yet. It’s more our vendors just setting the expectation.”
Craytor noted some vendors have urged him to place orders before specific dates to avoid the tariff prices. Other operators agreed — while they haven’t seen prices jump significantly yet, owners and vendors alike are bracing for higher costs and looking for ways to adapt.
Some operators have responded by expediting purchases ahead of price hikes. Craytor’s club, for example, bought new equipment earlier than they were planning to avoid tariffs. Others like McBride recommend waiting on big purchases. “If you can delay capital purchases, do that,” he said. He advises operators to “defend the core” — focusing on internal growth where your company is strongest.
Gillespie echoed this, warning against making capital purchases for the sole purpose of being trendy or innovative. He emphasized the importance of cohesive branding — when looking to make a new purchase, ask yourself how it fits into your brand and enhances your marketability.
Clubs are also seeing a shift in consumer behavior. Inflation is impacting member budgets and confidence, with some members expressing concern they may make up without a job. “We’re seeing the erosion of confidence that maybe things haven’t necessarily gotten bad, but people are afraid they will be,” said Craytor.
Craytor and acac implemented tiered membership options to give people more pricing flexibility and optionality. He noted how retention — of both members and staff — is more important now than ever because of how expensive both can be. Losing staff can be very expensive because of hiring, onboarding and training costs.
Staffing, in particular, is a recurring issue for these operators. Moore highlights the importance of retaining skilled professionals — from personal trainers to massage therapists — who are vital to the member experience. “All of our lives can become instantly easier or more difficult based on the people we have working with us,” he said. “You can make a dirty locker room cleaner, but there’s nothing more infuriating than being understaffed or staffed with the wrong talent.”
Brady emphasized the importance of having strong communication, clarity and cohesion throughout your club. “The idea of having the right structure is only as good as the communication going through the organizational structure,” he said. “Clarity and cohesion are the critical components of surviving things like recessions, pandemics, fires, whatever it might be.”
Overall, the panel’s message was clear: while dealing with economic uncertainty, it’s vital to focus on your people. While upgrades and renovations are great, focusing on retaining your staff and members is key for the current landscape.
