Fluidra, a global leader in pool and wellness equipment, has been selected to be part of the prestigious IBEX 35 index, produced by BME. Fluidra is expected to become part of the index as of March 29.

The Technical Advisory Committee’s decision to include Fluidra is based on the entry capitalization criteria which states that entering members’ last six months average capitalization must be greater than 0.3% of the index. However, the most important factor for eligibility is liquidity, since the objective is to choose sizeable companies with the highest trading volume.

Fluidra currently has a market capitalization of more than 4.5 billion, which exceeds the size of eleven current constituents of the IBEX 35.

The company presented the best results in its history in 2020, with a cash net profit of 166 million euros and sales of 1,488 million euros. After a record 2020 in sales and profit, the first indicators point to a very positive 2021, with expected sales increase between 12% and 15%, driven by strong underlying growth on top of the recently announced CMP acquisition.

Eloi Planes, Executive Chairman of Fluidra states, “Entering the IBEX 35 increases the visibility of the company and its presence in passively managed and indexed funds. Accessing the IBEX 35 was not an objective in itself, but is a reflection of the work carried out during these past years by our great team with our customers and all stakeholders involved. Together we have achieved this milestone, and together we will continue working hard to deliver our mission, “a perfect pool and wellness experience” ”.

• Technical Advisory Committee has selected the company to become part of the main index of the Spanish Stock Exchange, the IBEX 35.
• This decision comes after a strong performance track record and very encouraging future prospects.
• Fluidra’s market capitalization currently exceeds 4.5 billion, above the size of eleven other constituents of the IBEX 35.

SCP announced price increases in a letter today to many of their customers across the nation. The distributor explained the cause of the price increases in a brief memo. The letter cited shortages and unprecedented demand due to COVID along with other unforeseen circumstances such as the recent freeze in Texas as the cause. SCP explained they saw little alternative but to raise prices which begin to take place May 3, 2021.

SCP Price Increase Notice

“We have just been notified by several manufacturers that due to energy and labor costs, they are being forced to pass along rare mid-season price increases which are significant. Given the shortage of material due to COVID and the Texas freeze damage, we are not allowed to buy out far enough to protect our customers from these increases. Therefore, for the following large vendors, we will be passing along these price increases effective May 3, 2021. This will apply to all existing quotes and/or orders not purchased prior to May 3.” – SCP Distributors, LLC

• Pentair – average price increase of 5%
• Fluidra/Jandy – average price increase of 4%
• Hayward – average price increase of 7%
• Hasa – average price increase of 15%

Pool Industry Sounds Off On Price Increases

Many in the pool industry already have begun feeling the effect of price increases this year. The news did not bode well for pool contractors on social media. The sentiment many seemed to be expressing was one of frustration and worry. With many service technicians already struggling to stay operational during the pandemic, the increased prices seem that they couldn’t come at a worse time for some.

Kelli Carrillo shared the announcement today in 14 PSI Pool Industry Lounge, one of the many Facebook groups pertaining to the pool industry. Kelli is the Sacramento City IPSSA Chapter President, owner of Legacy Pool & Spa and the co-founder of the PGP (Pool Girl Pro) Industry Training Group. When asked about how she felt about the impending SCP price increases, Carillo expressed strong feelings on the subject.

“I didn’t have a mini heart attack until I got to the HASA 15% average.”

kelli carrillo – legacy pool & spa

“When I first saw the rates I didn’t have a mini heart attack until I got to the HASA 15% average. I expect the 5-7 % increase in the spring and fall from all manufacturers.” said Carrillo. “Even though I have said to people I expected more of an increase this season from HASA due to tab shortage, actually seeing it was jaw dropping” she continued.

Adapting to Price Increases

We asked her how she expected SCP’s price increases to impact her day to day operations. Carillo replied “When it comes to my business, prices will just have to increase. I will find myself using chemicals more conservatively, implementing my chemical limitations per contract more and having to prove why the extra cost is worth staying with me compared to my cheaper competitors.”

Sharp Price Increases Coming Industry Wide

Letters began going out from SCP to most of the pool industry this week and the news was not good. Consequently, the announcement detailed which manufacturers were increasing prices on pool equipment and other essential products. SCP’s announcement comes on the tail-end of alerts sent out by other large distributors who announced intentions to begin increasing prices at the start of the new year.

A recent acquisition of CMP by Fluidra is sure to see an increase in pricing on those products as well. With smaller distributors now being acquired, consumers have pointed out a widening gap in the number of available alternatives. Already many in the pool industry wonder if Florida Water Products is the next alternative distributor to be acquired.

Many wonder… what’s next?

The rising cost of goods is sure to impact pricing at nearly every level of the pool industry. Analysts expect price increases on everything from pool service to new pool construction and predict that nearly every facet of the industry can expect an uptick in pricing now. The uncanny domino effect of shortages, supply and demand, acquisitions, and unpredicted weather have created conditions for a perfect storm of sharply inclining prices industry wide.

Over time, technology has dominated all areas imaginable. Today, this innovation is in sync with luxury, specifically in new pool construction for high-end owners. The capability of managing pool, spa, lighting, and landscape operations from the comfort of one’s home is becoming irresistible for many homeowners. Conversely, middle-class pool owners still prefer operating their pools mechanically due to management costs. With the expansion of the pool industry, more opportunities are created for construction and remodeling companies.

Closing The Gap In Pool Automation

Even with the rising trends in technology, a more significant percentage of pools lack automation. For instance, in the United States, where there are over 10 million existing pools, the total number of automated pools remains unclear. At NAPCO Media, Patrick McCarthy, senior editor CT Lab, acknowledged pool automation as one of the largest markets in the recreational industry. Based on current studies, worldwide pool equipment and maintenance market are anticipated to pull in $17 billion in the next two years.

Organizations like Alan Smith Pool Plastering & Remodeling finish over 800 orders yearly that require a wide range of installations, hence indicating a gap in the industry. Additionally, Jeff Smith, the sales director of the organization, visualizes a wide range of opportunities based on a large number of unautomated pools.

Approximately 60% of pools still lack automation and require renovation.

Owens Pools and Spas, David Owens

Modernizing the past

In the face of significant increases in proceeds accompanying automation, some pool constructors are oblivious to the market. On the report of vice president of All Seasons Pools and Spas, Dan Lenz, not all pool owners lodge automation systems in their pools. Undeniably, this may be due to the existing generation gap; most pool owners belong to the older generation and primarily show disinterest in pool automation.

The Younger Generation of Homeowner Demand Pool Automation In Their Inground Pool

On the other hand, the younger generation particularly desires the ease and enjoyment of controlling their spas from the comfort of their homes. Sadly, the majority of homeowners are older, although there is hope for the future. Young homeowners fascinated by automation are anticipated to emerge in the coming years, thus leading to a massive expansion of the industry. Lenz concurs with this since currently, there’s a spotted age group considered more than tech-savvy purchasing houses and managing organizations. Consequently, automation, specifically app-based applications, is expected to increase in the coming years.

What’s working?

Automation involves a massive classification of products that are progressing continually with regards to performance amidst various manufacturers. Based on Lenz, identifying locations where existing pools gain from automation while delivering this information to potential customers is vital for an organization’s prosperity. He adds that the service team is well equipped for these conversations; that’s why a flat rate exists for all activities enjoyed in a pool through automation. Furthermore, the company is not only concerned about selling their products but also establishing and maintaining a long-term relationship with customers.

Promoting Pool Automation Through Awareness

A powerful aspect of improving sales is through educating target consumers on the existence, availability, and functional nature of these products. There is a high probability that when a target population is aware of the product, they will not hesitate to make their purchase.Apart from merely switching the pump and lights on and off, pool automation entails an extensive spectrum of improvements. 

Both the variable-speed pump and chemical automation have their control systems to ensure comfortability and easiness. However, some clients usually prefer upgrades while some are not so mindful; preferences vary from one customer to another.The majority of people possess inadequate information on LED lights, thus anticipating a lot of ease in regulating colors just as one would operate a standard white light. As this is not the case, people have to know that a control system will be required to control the lights automatically while explaining the inconveniences of manually alternating colors in the LED lights.

More to come

As seen in this article, automation is a broad area, and letting customers know of their control alternatives, and upgrades is a useful marketing strategy. For instance, when winterizing pools last year, we sought to point out anything in the pool that could be incorporated into our marketing strategy by targeting potential customers. We consider our customer’s budgets and never force people to purchase against their will. Ultimately, it is evident that the market is ready for expansion, and with a thought-out plan, we can significantly increase our sales and achieve tremendous success.