The pandemic brought about a surge in home improvement projects, with swimming pool installations being a popular choice among American households. However, recent data suggests that the demand for new pool construction is on the decline. Pool Corp., a major player in the pool equipment distribution industry, anticipates a significant drop in new pool installations this year. Local contractors across the country are also experiencing a pullback in business, indicating a shift in consumer spending habits.
While overall consumer spending remains high, there has been a noticeable trend towards prioritizing experiences such as travel, dining out, and other service-sector purchases over nonessential household upgrades. The current economic landscape, marked by inflation and elevated interest rates, has led households with disposable income to redirect their funds towards travel and entertainment, rather than home renovations.
The slowdown in big-ticket home purchases, including swimming pools and other outdoor features like Traeger Grills, has been gradually unfolding over several months. Businesses that cater to the demand for home upgrades are now facing challenges in adapting to the shifting consumer preferences. The surge in pool installations during the pandemic has given way to a more subdued market, prompting pool builders to adjust their strategies to align with the new reality.
Despite the decline in new pool installations nationwide, some businesses are weathering the storm by leveraging their past success and implementing new tactics. Companies like Shasta Pools and individual installers like Scott Payne have managed to sustain their operations by raising prices to offset rising material costs and offering additional services to their clients. By capitalizing on their established presence in affluent areas and providing post-installation maintenance services, these businesses have been able to maintain their revenue streams.
Pool Corp. identified a silver lining in the slowdown of new pool constructions, highlighting the growing demand for maintenance services. As more households invest in pool upkeep, companies that offer maintenance-related products and services are experiencing steady sales. The shift towards prioritizing maintenance over new installations presents an opportunity for companies like Shasta Pools to expand their service offerings and capture a larger share of the market.
As climate change continues to impact weather patterns, the need for swimming pools as a cooling escape during hot summers may become more pronounced. Consumers facing earlier, hotter, and more frequent heat waves may begin to view swimming pools as essential features rather than luxury additions to their homes. While the current trend indicates a decline in new pool installations, the demand for pool maintenance services and upgrades remains steady, presenting opportunities for businesses in the pool industry to adapt and thrive in a changing market landscape.