As the world begins to emerge from the global pandemic, consumer spending habits are shifting. Americans who were once investing in home improvements during the height of lockdowns are now redirecting their funds towards experiences like travel, dining out, and other service-based purchases. The allure of creating a vacation-like oasis in the backyard has waned as households prioritize experiences over tangible upgrades.
The slowdown in demand for new swimming pools is evident with Pool Corp., a major pool equipment distributor, predicting a decrease in new pool construction by 15% to 20% this year. Local contractors across the country are also feeling the effects, with some reporting a pullback in business. The once booming industry is now facing challenges in maintaining the same level of growth as seen during the pandemic.
Businesses in the pool industry are now adjusting to the changing landscape. While pool installations soared by 20% in 2020, the trend has begun to reverse with consumers cutting back on big-ticket home purchases. This shift is attributed to factors such as higher food costs, the Federal Reserve’s efforts to control inflation, and elevated interest rates affecting mortgage and credit card rates. The demand for non-essential household purchases is cooling off as consumers prioritize other spending categories.
Despite the challenges, some pool builders are finding ways to navigate through the slowdown. Companies like Shasta Pools and individual installers have raised prices to offset rising material costs. Additionally, businesses are focusing on providing additional services such as maintenance after installation to generate revenue. By diversifying their offerings and improving customer experience, these companies are positioning themselves to weather the decline in new pool construction.
Silver Lining
While the decrease in new pool installations may seem concerning, there is a silver lining for businesses in the pool industry. With many households already having built or upgraded their pools in recent years, the demand for maintenance services has increased. Companies like Shasta Pools are seeing stable sales in maintenance-related products, indicating a shift towards servicing existing pools rather than constructing new ones. This transition highlights the industry’s ability to adapt to changing consumer preferences.
Looking Ahead
As climate change continues to contribute to extreme weather patterns, the perception of swimming pools as a must-have amenity may evolve. With earlier and hotter heatwaves becoming more common, the value of owning a swimming pool may increase for some consumers. It will be essential for businesses in the pool industry to anticipate and respond to these changing dynamics to remain relevant and sustainable in the post-pandemic era.
Overall, the pool industry is experiencing a transformation as consumer preferences and spending habits evolve in the wake of the pandemic. By embracing innovation, diversifying services, and adapting to changing market conditions, businesses in the pool industry can continue to thrive in a challenging and competitive landscape.