According to the Sporting Goods Manufacturers Association (SGMA), the wholesale sales of all sporting goods equipment decreased 4.3% in 2009 to $71.8 billion. However, it expected between a 2% and 4.5% increase in 2010, as the U.S. economy improves. Treadmills continued to be the best-selling kind of exercise equipment. Treadmills with parts from China, assembled in the U.S. or abroad, continued to be popular. The Consumer Product Safety Improvement Act of 2008 became effective in 2009 and requires exercise equipment importers to comply with safety standards.

"For the most part, the drop in sales for the sports products industry in 2009 was a reflection of the challenges which have affected the U.S. economy during the last 12-18 months," said SGMA President Tom Cove. "As the U.S. economy shows improvement, consumers will be more inclined to increase their spending on fitness equipment, sports gear, athletic apparel, and athletic footwear."

Company News
In May 2010, Aerobics Inc. of West Caldwell, New Jersey, the manufacturer of PaceMaster treadmills and ellipticals, filed for protection under chapter 11 of the bankruptcy code. PaceMaster treadmills are sold exclusively at specialty fitness equipment stores in the U.S. and Canada. Aerobics, Inc. was founded in 1968. Its sales peaked in 2005 at $25 million, but declined to $22 million in 2007, $20 million in 2008, and $12 million in 2009. The company cited reasons for its filing as the general economic downturn and the bankruptcy of its largest customer, which resulted in a loss of $1.3 million in accounts receivable and a third of the company's distribution.

Dick's Sporting Goods, a prominent retailer of treadmills with about 400 stores throughout the U.S., decreased the pace of new store openings in 2009, as its comparable stores sales decreased 1.8%, though this was an improvement over the 2008 decline of 4.8%. It reported that its greatest sales weakness was in bigger ticket discretionary items such as exercise equipment.

Amer Sports Ltd., the Finnish manufacturer of Precor treadmills, reported a 12% sales decline in 2009 across its various product lines in the Americas. Its worldwide commercial fitness business was off 14%, while its worldwide consumer fitness business was off 19%, especially in the premium segment. In the first quarter of 2010, fitness sales in the Americas declined 8% from the first quarter of 2009. The company did not anticipate a quick recovery of the sporting goods market.

In January 2010, Nautilus sold its Stair master brand and its licensing rights to its Schwinn Fitness indoor cycling products to Fit Dragon Intl Ltd of China for $12.3 million. The new operation will stay in Vancouver, Washington and continue to sell to commercial customers. Nautilus had acquired Stairmaster out of bankruptcy in 2002 for $25 million. Total Nautilus sales declined 33% in 2009 to $189 million, but cost reductions cut its operating loss 49% to $29 million. The company attributed its decline in retail sales to the reluctance of retailers to replenish their inventories and lower consumer demand. It attributed its decline in sales to fitness facilities to the declining credit quality of these customers.

Yowza Fitness of Bonita Springs, Florida began selling treadmills in September 2009? Yowza is a subsidiary of Green Master Co. Ltd., German manufacturer of table tennis, basketball, and European exercise equipment. Green Master has the license to the Reebok name for European exercise equipment, while ICON Health & Fitness has licensed it in the U.S. Yowza was started, and is run by, Joseph Alter, the former CEO of Smooth Fitness. Yowza has adopted a similar business model to that of Smooth, selling its products exclusively online, both directly on its website and through affiliates. Yowza says it is committed to a "green" manufacturing process. For example, its raw materials include recycled plastic.

Cybex International, manufacturer of strength and cardiovascular equipment for commercial use, reported that its 2009 sales dropped 19% to $120 million. It attributed this drop to fitness clubs being cautious in making new investments. The company did reduce its operating loss 10% to $2 million, through cost cutting. The treadmill industry now has its own directory of manufacturers and service providers. See http://treadmillreview.wordpress.com. Submissions are free.

Another new brand of treadmills entered the market in September 2009 - Livestrong. Livestrong is a Lance Amstrong branded line of clothing and home fitness equipment that is sold exclusively at Dick's Sporting Goods stores and through online affiliates. Livestrong treadmills, ellipticals, and stationary bikes are manufactured by Johnson Health Tech, which also manufactures equipment under the Horizon Fitness name. Livestrong treadmills are priced from $799 to $1,699. A portion of the proceeds from the sale of each product go to the Lance Armstrong Foundation to help fight cancer. Both Livestrong and Horizon brand elliptical trainers were voluntarily recalled by Johnson Health in November 2009 when they discovered that their pedals could disengaged, which could cause a user to slip and fall. No injuries were reported.

In December 2009, ICON Health & Fitness released an upgraded version of its iFit software to "iFit Live." iFit Live has a "Street View" mode that allows users to choose a place they'd like to run and then shows the actual photographed street scene where they are "running." As the incline of the actual terrain changes, so does the incline of the treadmill. New workouts can be downloaded wirelessly directly to a treadmill and it's even possible to run "alongside" Facebook friends. It's not clear how sales of IFit Live have been or many people would actually use it, but the advances suggest that treadmill technology will continue to improve. Collen Logan, vice president of marketing for ICON, says that her company has seen solid and steady sales of its treadmills and elliptical, especially in the range of $600 to $1,000." She has noticed a change in the way people buy. "Large ticket fitness items are being purchased for a household, rather than for an individual. It's the way people bought computers ten years ago."

In November, 2009, electronics retailer Best Buy announced it would sell fitness equipment, including treadmills, ellipticals, and stationary bikes, in forty stores of its approximately 1,000 stores across the U.S. Best Buy said it is differentiated from its competition by its services and staff, including its Geek Squad technical support. Brands sold include ProForm and LifeSpan.