An industry that has undergone much expansion in Helena in recent years is now seeing its first signs of contraction. The Great Northern Fitness Company is closing its club in the downtown development of the same name at the end of this month, with its membership merging with Fuel Fitness, which two months ago opened a 12,000-square-foot club on North Montana Avenue just north of Custer.

Concurrently, Fuel has opened a second, small Helena location downtown at 312 Fuller Ave.

GNFC owner Clint Erb, who also owns, Better Body Fitness, which provides exercise equipment for clubs, colleges and individuals throughout the Northern Rockies, said he opened the Great Northern Club five years ago in part to showcase Better Body's equipment lines.

"Now there are lots of high-quality clubs around Helena, so the ability of the Great Northern Fitness Company as a function of Better Body Fitness was limited," Erb said. He plans to focus his efforts going forward on the equipment business.

Erb said he was negotiating with an out-of-town buyer, and when that deal fell through, he began talks with Fuel.

"Our goal was to find a place that would open up its arms to our membership and put them in a facility that was of equal or greater quality, size and environment," he said.

Fuel owner Craig Vukasin said the deal significantly increases the membership of his nascent business.

"We made a deal to take over their membership," said Fuel owner Craig Vukasin, who said the downtown location will "enable members working downtown to come in and get a quick workout."

The north side of Helena has seen the addition of three fitness clubs in the last 18 months or so. In addition to Fuel, which operates in the old Rex appliance building, there's Snap Fitness, which has part of the building that was formerly Pets Are No. 1 just off North Montana, and Anytime Fitness, less than a mile west on Custer Ave.

The latter two are "self-service" type franchises, open 24 hours but not always staffed, and members have access with key cards. Vukasin said Fuel is staffed 24 hours a day, and offers a nutrition store, classes and other services.

Both Snap and Anytime are ranked in the top 100 (and climbing) of Entrepreneur.com's Franchise 500, a listing that ranks franchise opportunities based on financial strength and stability, growth rate and size of the system, among other measures. Anytime ranks 75th this year, up from 353rd in 2007, while Snap checks in at 98th, up from 206th last year.

The result of all the growth: more competition than has previously been seen in the fitness industry in Helena.

"We didn't really notice any difference when Great Northern (Fitness) opened, but we have noticed a little competition with Fuel," said Rhonda Schlosser, manager of Crossroads Sports & Fitness, a fixture on the local fitness landscape. Schlosser noted that while prices at some of the smaller clubs are lower, so are the number of offerings, and there's still a place for a larger club like Crossroads.

Jim Williams, who's owned the Broadwater Athletic Clubs since 1981, said he's taking a hard look at the Great Northern Fitness Co. space with an eye toward possibly opening another location, but he's made no decision yet.

"We've talked to the landlord, we've got the thought process whirling, we're looking at the number of workers in that area," he said. "It's going to be a captive audience, people who are already parked in that area for work."

If he does move into the Great Northern, Williams said it wouldn't be at the expense of his club's downtown location.

Williams, who nearly opened a Broadwater location on the north side before he "chickened out" (his words) three years ago, said all the new clubs mean he's got to keep his own business clean and modern.

"It's a kick, and a reminder that you can't let the bike coast," he said. "I'm not fond of competition, but it makes you have to be better."

Reporter John Harrington: john.harrington@helenair.com or 447-4080.