Nonprofits beef up via fitness centers

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James River Assembly first church, latest nonprofit to open fitness center|ret||ret||tab|

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by Eric Olson|ret||ret||tab|

SBJ News Editor|ret||ret||tab|

eolson@sbj.net|ret||ret||tab|

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Nonprofit organizations are pumping up the area's fitness center market like never before. And some in the private sector say they're beginning to feel the burn.|ret||ret||tab|

James River Assembly of God is the latest nonprofit and the first church to jump into the local fitness center game. It opened a full-blown fitness center that adjoins the church at U.S. Highway 65 and CC in Ozark earlier this year, as part of a $10 million expansion. Pastor John Lindell said the fitness center offers church members "a place to work out in a Christian environment." It also fills a void in Ozark.|ret||ret||tab|

"We saw an opportunity to have a fitness center (because) so many of the church members go into town. There is not one out here in Ozark," Lindell said.|ret||ret||tab|

Nonprofit fitness centers have sprung up in many of Springfield's bedroom communities most within municipally owned community centers. Ozark, Willard, Nixa and Republic each have one.|ret||ret||tab|

Springfield's health systems, CoxHealth and St. John's, operate the bedroom community fitness centers in addition to running their own in Springfield. Throw in longtime player YMCA's two Springfield locations, and the area's fitness center market has suddenly become crowded, according to owners of private fitness centers in Springfield. A crowded market means smaller market shares.|ret||ret||tab|

"Of course, everybody takes a certain share," said Dan Martin, a fitness center industry veteran who has owned 30-year-old Ozark Fitness Center for 22 years. "Sure they are (eating market share), but they are also expanding the market."|ret||ret||tab|

Martin puts a long-term perspective on it.|ret||ret||tab|

"They increase popularity (and) they make (physical fitness) more commonplace. In that regard they are expanding the market," he said. "We hope it balances out."|ret||ret||tab|

Kent Morrison, one-time owner of The Fitness Club and Gold's Gym in Springfield, could not find a balance. Morrison said pressures from nonprofit facilities sent him packing; he saw the writing on the wall a year ago when he walked away from the business.|ret||ret||tab|

"It's a pretty stressful business. We felt there was going to be more competition in the future with the not-for-profits," Morrison said.|ret||ret||tab|

In his 10 years in the business, Morrison said his facilities operated on a 15 percent profit margin on average.|ret||ret||tab|

"If each (competitor) takes 4 (percent) or 5 percent over the course of four clubs doing that there goes our profit margin," Morrison added. "It's just the nature of the business. It's not like it used to be."|ret||ret||tab|

Morrison also said the playing field is not level because nonprofits are subsidized by larger entities, and receive donations and tax breaks.|ret||ret||tab|

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Recent influx|ret||ret||tab|

Martin has watched the fitness center industry change dramatically in the last 20 years.|ret||ret||tab|

"It has changed from a fad in the early 80s to a real trend now," he said. "It will continue to grow."|ret||ret||tab|

That fitness fad produced two of the hospital-owned centers in Springfield.|ret||ret||tab|

"We've been in fitness center services since the late 80s at the north facility," said Ron Prenger, CoxHealth's vice president of clinical services and administrator for Cox Walnut Lawn. Prenger said the fitness center started as a service to Cox employees, then it quickly became available to the public.|ret||ret||tab|

St. John's Fitness Center opened in 1985.|ret||ret||tab|

In the meantime, it's become big business. Both CoxHealth and St. John's annual fitness center budgets have grown to more than $1 million. Springfield Family YMCA's budget for two Springfield branches, Bolivar and Tri-Lakes, plus Camp Wakonda, jumped from $5.5 million in 2003 to $7.5 million this year, said Cathy Rippe, YMCA membership and marketing director.|ret||ret||tab|

Like any nonprofit, YMCA tries to break even each year, Rippe said. Any excess annual revenue goes toward capital improvements, program development or new equipment, she said.|ret||ret||tab|

Nonprofits say community response is driving their growth.|ret||ret||tab|

The 6,820 new memberships sold at the $11 million CoxHealth Meyer Center nearly doubled officials' first-year projections of 3,500 members, Prenger said.|ret||ret||tab|

CoxHealth operates facilities in Willard and Republic only after being courted by those communities, Prenger said.|ret||ret||tab|

Prenger said that there is a place for the hospital-owned centers, beginning with offering general health tips and rehabilitation services.|ret||ret||tab|

"There are some very qualified, very good fitness centers out there," he said. "We're not trying to be a facility for the body-building. We're here for the general individual that just wants to improve their health and well-being. If people want to join, that's fine."|ret||ret||tab|

People are joining nonprofit centers across the country, said Kevin Walker, owner of Club Nutrition and Fitness, who tracks national fitness center trends. He called hospital-owned fitness centers a hot topic, but said churches are rare.|ret||ret||tab|

"(James River Assembly of God) is one of the first in the country," he said, aside from one in California and a few scattered others he was aware of. "For the Midwest and for Missouri, that is pretty far ahead of its time."|ret||ret||tab|

Walker recently tripled his fitness center space when he moved to the former Fitness Club building. He has 500 members and is shooting for 2,000.|ret||ret||tab|

"This is a risk I was willing to take. I'm concerned, yeah, but I see it as a positive too," Walker said. |ret||ret||tab|

"We will always have competition. That's fine, the more the area is inundated with the general idea of health and wellness, the more it helps us, too."|ret||ret||tab|

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