IHRSA 2024 Preview: CEO Liz Clark Talks Fitness Industry Challenges and Opportunities

IHRSA 2024 is one of the most anticipated events in the fitness industry. The countdown is on to the IHRSA Convention and Tradeshow set to take the stage in vibrant Los Angeles. This week, host Krissy Vann gives you an exclusive sneak peek into what's ahead, featuring a special guest who stands at the forefront of fitness innovation and leadership, Liz Clark, CEO and President of IHRSA.

In an engaging and insightful conversation, Liz Clark will share her expert perspective on the pulse of the fitness industry, tapping into the wealth of knowledge and feedback gathered from IHRSA members worldwide. This episode promises to shed light on the nuanced challenges facing fitness facilities today, alongside the burgeoning opportunities that await those ready to pivot and adapt in this dynamic landscape.

But that's not all. In response to a thought-provoking February Bloomberg article predicting a challenging year for gyms, Liz will offer her seasoned viewpoint, addressing the concerns and outlining the strategies that could redefine success for the fitness sector in the coming months.

As the world's leading trade association for health and fitness professionals, IHRSA is at the heart of innovation, advocacy, and growth in the industry. IHRSA 2024 promises to be a melting pot of ideas, trends, and connections, bringing together the brightest minds and most passionate enthusiasts from around the globe. From cutting-edge equipment to transformative business models and wellness solutions, the trade show is a beacon for anyone looking to thrive in the health and fitness arena.

Join Krissy and Liz for an episode that goes beyond the surface, offering listeners an insider's look into the challenges, triumphs, and future directions of the fitness industry.

Connect with IHRSA
@ihrsaLive
https://www.ihrsa.org 

Connect with All Things Fitness and Wellness
www.atfw.ca
https://www.instagram.com/allthingsfitnessandwellness/ 

#fitnessbusiness #fitnesspodcast #ihrsa2024 

Transcript

0:00

Let me first say that we have no concerns whatsoever about the future and the health of our industry. We're growing we're thriving, we're offering more interesting workouts experiences than ever before. Not worried about these numbers at all. This is All Things Fitness and Wellness hosted by Krissy Vann. Together we're uniting industry thought leaders and fit flew answers on the mission to inspire innovation and encourage people to live a life fit and well. On today's episode, we welcome back CEO and President of IHRSA Liz Clark. The IHRSA convention and trade show is the largest gathering of health and fitness professionals. And at time of recording, it's just around the corner. On the show, Liz will discuss the current challenges and opportunities within the fitness industry based on feedback she's been hearing from their members. She'll share her response to a February Bloomberg article that alluded to Jim is facing a tough year ahead, and we'll talk about what to expect from IHRSA 2024. With a few hints on the big announcement they'll be revealing in regards to the evolution of their association. Before we get to it, be sure to hit like and subscribe. We have new podcast episodes weekly featuring industry thought leaders and influencers. I'm your host, Krissy Vann and this is at ATFW. Liz Clark, I know that we're going to be able to unite in person very soon because Ursa 2024 in LA, is right around the corner at the time of recording. Yes, clapping of hands, we can feel the excitement in the air. It's been so refreshing and exciting to see on LinkedIn, everyone's starting to get that buzz that it's time to reconnect. So before we get into it, can you tell me a little bit about Ursa itself? What you've kind of accomplished over the last year? Yeah, well, it's great to see you Krissy. I can't wait for the show. It's been a wild year and a really successful year for us. And so I step back, and I think about it, and I think about for what we pulled off for 2023 was amazing. Some of the things we did there, we had VIP hours on the on the tradeshow floor, we really leaned into the boutique community, some really cool different stuff, which was just an amazing Herculean accomplishment last year, then you jump over and you look at some of our our wins and work in the advocacy in the policy space. So we pulled off a fly in bringing people to Washington, DC that we hadn't done in almost two decades. As a result of that, we were able to introduce some really important legislation, the Fit legislation to use your HSA and FSA dollars toward gym memberships and youth sports. And we're already up to 70 co sponsors on that we've had some great wins at the state level, when it comes to policy, we've we've had a click to cancel when in New Jersey, we have a liability win in Maryland. And we're currently in the throes of click to cancel right now, federally and working with the White House. And we grew our pack to over $200,000. That's just stuff in the policy space. And then you jumped over to the other the other side of the pond, we had our European Congress event that we haven't had since 2019, which was fantastic just to get you know, that community together and the speakers and the presentations there were fantastic. on the research side, we released the Global Report, which we had input from more than 15 countries around the world on it very, very well received. And then I was really pleased to see we weren't expecting this one. aapko International released a study that they've been watching us and we didn't know what that meant. But it meant that, you know, they're seeing how we stack up against other trade associations. And we ranked, we ranked very high on being a unified voice of the industry coalition building public relations. And that's a really special one to me too. Well, definitely something to be proud of considering. And we talked about this before. It was a really different landscape going into last year, it was kind of that reuniting and re amplifying of everybody. And about that unification that I think has really transformed after everyone went through such intense obstacles at the same time. Now it's really forging the path forward. And I know that you spoke there about the European Congress. So explain to me because obviously, when we speak to advocacy, a lot of the efforts that we have covered through IHRSA have been very focused on the United States. But this is a global organization. So how do you work with other partners and what type of outreach to make sure that everyone's involved in at the table? Yeah. So Christy, first of all, I think it does start with our European Congress event where we can get people together and really talk about these important issues. We spend a lot of time in Europe talking about the VAT and what that means to gym memberships and, and things like that. So being able to just get the thoughts and minds together is the first most important thing. And then beyond that, leveraging our federation communities so we have almost 20 International Federations around the world that are true Amanda's sources of information and sharing and they'll all be coming together in LA as well. But then there's other higher level things too. So I spent time this year with the OECD, talking to the, you know, the business of international bodies like ourselves, I was with the who, toward the very end of the year and working with them to really help educate honestly, the who, on the importance of exercise and the importance of exercising in a structured place. And so that was a big win that that that event eventually has transformed now to recognize that, but it didn't start that way. It started with a recognition of sport. And so we were there to say sport is important sport matters. But were another really critical piece of the conversation here. So, so spending a lot of time on the international front with all these different international bodies and partners, and more to come next year. You know, it's an interesting parallel just in hearing that I just interviewed a gentleman he it's obviously Heart Month. So it was all about cardiovascular and exercise. And he was talking about the reason why a lot of us fall out of love with exercise. And it's because our phys ed programs as children are so sports based. And if you're not an individual that identifies with that, often that means our relationship, we it's the first class, you drop in high school kind of thing. And then it's very hard as an adult to reintegrate. So it's just interesting, I was drawing a parallel my brain when you said that thinking that same way of thinking obviously was happening with the WHO more of the sport mindset and you're like, ah, we got to find movement and other capacities. And so even letting the higher organizations really wake up to that message. So kudos to bringing the voice and elevating that of the industry, because the spaces that the fitness industry offers do make the difference. Right, right. And just tell you, you know, one stat that we know is that if a child is not involved with sport beyond the age of 13, they're 50% more likely to become obese later on in life. So sport is a really important part of the conversation. But this was what we were saying is we're important part of the solution, and how do we transition you know, that universe so actually spent a lot of time with wha talking about FIFA and what they've done for kids and soccer. And, you know, just a tremendous opportunity, we have to continue that conversation. Yeah, it'll be interesting to see where that goes. That kind of leads into the next part, we're gonna get into the goodies I promise of what to expect at Ursa this year. But ahead of our conversation on February 11, Bloomberg released an article that got a lot of buzz from a lot of industry leaders, essentially saying that January starts were quite flat for many health club operators and gyms, comparatively to last year. And they were essentially stating that that could be a precursor to what can be expected through this year. So I know that you deal with so many people within the industry. So what is your take? And what are you hearing from your members who are on the ground? Yeah, Chrissy, let me first say that we have no concerns whatsoever about the future and the health of our industry. So looking a little bit historically, at the numbers, and you know, numbers, you can read them any way that you want, we know that we've also seen growth in some companies. So like a company like Equinox is up 12% in January. So it's not necessarily true that the entire industry has fallen flat. And you know, and we're working on capturing the data and the information from the boutique studio world, which isn't necessarily as readily available, but we're getting good reports there as well. So I think you got to look at, you know, where our rates were in January 2020, which, you know, was actually higher than where they had been trending from 17, from 18. From 19. Of course, then the, you know, the pandemic hits. And it's been, you know, years of recovery. So obviously, where January 2024, is, compared to January 2020, huge, huge increases. So, if we look at what happened in 22, we were up 40%, and then 2023, up 46%. So those are very, very challenging numbers to compete with, you know, on a scale, we were coming back, and we might have, you know, looked at there was some pent up demand, but we came back stronger than I think many expected to be. And then there's always, you know, interesting other data points that we see, the weather was not fantastic. In the US for the month of January, people don't like leaving their house when the weather's nasty. We saw that, that when part of that increased demand came out of 22 and 23. People were joining multiple gyms, in maybe instances now people have scaled back and they're not members of that. So that skews the numbers as well. We're not concerned whatsoever. We're growing. We're thriving, we're offering more interesting workouts experiences than ever before, not worried about these numbers at all. And a lot of innovation on the horizon as well. On that note, what are kind of the biggest challenges and opportunities that you're seeing heading? In through 2024. Yes, so one of them remains in it's not inconsistent with the business community in general is just retaining and recruiting good employees. So it's something that that our industry struggles with, you know, the future of personal training, I think is something that a lot of companies are asking themselves. So that's really on the frontlines. Some some challenges that I see right now, on the policy side, some things on the horizon are these challenges on click to cancel campaigns and pressures from legislators to make it easier to get out of memberships. And, and we need to look at that in a way that is a partnership, that's not something that we can just fight, fight, fight and not have a solution. So we're working through, you know, real ways to address that. So that, you know, we can be good actors in this space. And so, so that's something and then as well, as you know, just all these threats from a policy perspective that come at us, you know, we're watching right now in the US on 50. States, we've got over 1000 bills that we're looking at, and that ranges anything from I was saying, Click Cancel to a removing liability protections to making sure your facility accepts cash. So, you know, issues all over the place that we're we're watching and we're engaging in. But any one of those can be very detrimental to our industry, and business. Yeah, fair enough. How about on the opportunity side? Yeah. So listen, I think, believe it or not, I think that there is a tremendous opportunity, as we look at what's going on with weight loss drugs. And the future of that I know, you know, we've always said, Well, we're not going to battle Big Pharma, and we're not. So how do we lean? And how do we partner with it. And so I think the reality is, is that we know that 7% of Americans are already on some sort of weight loss drug, but over 50% of Americans are looking into it. 30% in the UK, and 30%, in China, so there is definitely a demand for this. And there's an opportunity for us to think about what that looks like, and what that could mean to be bringing people into the gym to offer these things. Or even more importantly, the way I look at it is for the severely obese, the people that really are not comfortable getting into the gym, they need these drugs to start somewhere. And then what we're seeing and we don't have the data unnecessarily, but I'm seeing it in my own gym, I'm seeing it through conversations, is the severely obese start to lose the weight, and then they get motivated, and then they can find themselves more comfortable in the gym. So I think that there's a path forward. I think it's really exciting. We're going to have a tremendous session on this in LA to talk about the future of peptides and what what might be possible there. Yeah, honestly, that's a niche that I keep going down the rabbit hole, it's so fascinating to see it unfold in real real time. And I actually just had somebody on from obesity Canada, who was speaking to exactly that. And from a Canadian perspective, we've had a lot of issues and classifications in regards to obesity not being looked at as a chronic disease subsequently, that causes issues in our insurance profiles. So it's still a lifestyle drug. And I believe in the States, you have similar issues to overcome with a lot of providers. And he was saying what a tremendous opportunity, because our healthcare system is not really set up to take people along the journey. And he was a former individual that did bariatric surgery as well. So he's an advocate, but has also walked in the shoes. And he's like, You need to have programs that are set up. So when I positioned to him and explain what was happening at lifetime, for example, with their announcement Equinox creating a program as well. He was like, Absolutely, there are opportunities for there's these programs and he was excited about it because he was like, without it, people are gonna get a little bit lost in the fold. You can't just take something you need the habit building, we know that one of the main side effects is muscle loss. And where better to strengthen that then and within our walls of gyms and health clubs, I'll just tell you because I've met, you know, throughout the journey of my year in different conferences, some some nurse practitioners who are on the frontlines delivering these, these peptides. And it's been really interesting, because we're hearing feedback from folks that they've never felt more attention to detail on their overall health plan. It's really, if some of these folks do this the right way. In many instances, it could be the most personalized medicine delivery for folks where people really get a holistic look at their bodies and their levels of everything, you know, and so I think that could be very informative. Yeah, well, huge opportunity to because we know I mean, we've talked about a million times the massive level of the population that we aren't getting in the doors and I think this will be the chef's because it's a mindset shift and it's also opportunity for those that needed an intervention to get things started. So on that note, you mentioned what One of the exciting talks it's going to be at Ursa it is 2024, we know that obviously, you get many repeat visitors year over year. So what is new and exciting for Ursa 2024? In LA? Okay, well, I think one new and exciting thing will be an announcement that I'm making on day one, to 15, from the main stage, with with leader with our overall leadership, and that's going to be very exciting. So you don't want to miss that. Listen, we've got some oldies and goodies, we've got our financial panel coming back that is always very well attended and very well celebrated. We've got a great session on diversity, equity and inclusion, some other things reporting out from our report on consumer trends, and then we'll be least we'll be releasing our 2024. US consumer report. So you know, more to come there. I mentioned the peptide one, there's one zine, you know, real estate development, on longevity, the future of wellness, I think we've got it all covered. And one thing that I'm excited about is the amount of new attendees, the last number I saw, is 65% of our registrations are our new attendees. So I'm really excited for some of the people that are just sticking their toe in the water to get a taste of this. Yeah. How about the trade show floor? How awful tell the 65% what they're in for? Yeah, well, you've seen it Krissy. I mean, it is it is rocking and rolling down there. It's bigger than last year, boots have come back, the big guys have come back bigger and better. We've got more diverse of the 10 by 10s than ever before a lot of international presence. And so you know, it's going to be it's going to be fantastic. It's you know, we're going to see exercise classes, we're going to see weight demonstrations, we're going to, you know, see recovery stations, those are honestly probably my favorite, you know if you can make your way into one of those massage chairs, or a cryo chamber, we're gonna we're gonna have it all. Yeah, I remember hitting the floor last year, and there was one gentleman just lounging out. And he was like, after two days on this floor, I move in. I was like, fair enough. You picked a solid spot there. Yeah, I gotta remember, because I did I did it. Finally, last year, I wore pants on the last day that I made the mistake my first year to wear a dress the whole time, and that you can't really get in those things in a way that, yeah, no shame in the sneaker game as well. So as we look at the events, obviously, you spoke to the fact that there are a wealth of speakers sessions as well, the trade show floor, but you have keynotes. And the thing that I noted about the keynotes is you've drawn from different expertise and industries as well as the fitness industry. So explain who you'll be welcoming and why those choices were made. Yes. So they are three totally different diverse speakers that are that are covering three totally different things. So on day one, we've got Mariana tenco, and Mariana is going to really be talking about her presentation is called perfectly, you embracing the power of being real, which I think is going to be a message that resonates to our audience. You know, we've got the most real people in the world, in my opinion in that room and, and problem solvers, and creative, and, you know, embracing the fun. And so I think that she'll be a great kickoff. The the second day, we have Mark Massdrop, who's just a legend in the industry. And he'll be talking about the evolution of the fitness industry. He's been, you know, he's created hundreds of 1000s of businesses and been wildly successful. And I'm actually going to moderate that q&a with him really looking forward to that. And then at the end, we've got a Wilga Dara, who is the author of unreasonable hospitality, I think many people are familiar with, with that book, and that that concept, and it's really about hospitality and customer service, and how that can be, you know, a deal breaker in the front lines. And so I'm thrilled for all of them. And I'm really excited about the diversity of what they're all going to be speaking on. Yeah, especially drawing from that hospitality expertise. Because at the end of the day, everyone's looking for more of that experiential, that community, that sense of belonging. So I imagine some strong takeaways. I know that you alluded there, and you're not going to give us the announcement now, because how exciting and thrilling would that be? But I do kind of want to close off as you're looking forward through 2024 kind of the direction or says heading, how you're adapting because you talked, I mean, this is an ever evolving industry. So what is going to be the main focus and priority moving forward? And why should people be paying attention? Yeah, so listen, as amazing as our event will be. You know, one of the things that we're doing organizationally strategically with the board is really working on being an organization that doesn't necessarily just focus on a meeting and an event, but can be a little more focused on Advocacy and Communication all at the same time. Right. You have a lot chew gum at the same time. So we have three strategic pillars, and it's around education, which is our trade show advocacy that I've spoke about, and then research that there's always a demand for research. So we're going to double down on those three priorities and spend all of our time and effort there. But one of the things that is going to be important is, you know, having an organization that's branded appropriately that reflects that. So as we're trying to have these conversations and get into the doors, with policy makers and decision makers and influencers, you know, what is the organization that we represent, and what is our industry that we, you know, are at the helm of, and that's what I'm excited about. And it's been a journey to get to this point, and it was something that I saw, even when I was interviewing for this job, I said, I think that you know, it might be time to think about the branding of this organization. So it's been a fun ride. I'm excited about it, and I'm excited what's to come while you've dropped the breadcrumbs, so we will follow eagerly and see them unfold. Liz Clark, I really appreciate you carving out some time as I know it's a very busy final few days really a preparation at this point. So the countdown is on. So looking forward to seeing you and connecting in LA. You to Christie. Thanks for having me. Can't wait to see everybody. You've just listened to the All Things fitness and wellness podcast hosted by Krissy Vann be sure to hit like and subscribe. We have new podcast episodes weekly featuring industry insiders and influencers together we're on a mission for everyone to live a life fit and well