Why is the profitability of manufacturers so important?
Fitness is, and always has been, a supplier-driven industry. Fitness growth has been fueled by product innovation from the Lifecycle, Stairmaster, and original Nautilus machines to the Step, elliptical, treadmills, electronics, Spinning, etc. Every new wave of industry-wide excitement stems from the manufacturers research and development (R&D). R&D is funded by profits. Without profits, R&D suffers and the pipeline for new products diminishes. The fitness industry will then become stale. A robust manufacturing segment is vital to the long-term growth of the fitness industry.