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Inside Latham’s Playbook To Keep Winning In A Tough Pool Market

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Inside Latham’s Playbook To Keep Winning In A Tough Pool Market

There’s no question that the swimming pool industry has been navigating rough waters over the past couple of years.

Higher interest rates. Inflation. Softer discretionary spending. A cautious consumer environment. Builders across multiple regions have felt the slowdown as homeowners weigh large-ticket purchases more carefully than they did during the pandemic-era boom.

Yet somehow, amid all of that uncertainty, Latham Group continues gaining market share.

That was one of the central themes during a recent conversation with Sean Gadd, who recently stepped into the role of President and CEO at the industry giant as the company celebrates its 70th anniversary.

Fresh off ringing the NASDAQ opening bell alongside the Latham team, Gadd spoke candidly about the state of the industry, why fiberglass pools continue outperforming expectations, and where he believes the biggest opportunities lie moving forward.

Latham celebrates it's 70th anniversary this year

For Gadd, the current environment presents challenges — but also opportunity.

“The business is an exciting one. The industry is dynamic,” said Gadd. “Yes, it’s going through a bit of a hard time. But Latham’s got a great brand. We’ve got great people. I feel really strong about our value proposition.”

That confidence comes at a pivotal moment for the company. Latham has spent decades establishing itself as the dominant force in fiberglass pools while continuing to maintain strong positions in vinyl liner pools and automatic covers. But according to Gadd, the company’s next chapter is less about protecting what it already owns and more about aggressively expanding into underpenetrated markets.

Most Deals Still Happen Across The Kitchen Table

Before joining Latham, Gadd held a leadership role at James Hardie Industries, one of the best-known names in the construction products industry. That experience, he says, shares more similarities with the pool industry than many people might realize.

“At James Hardie, we spent a lot of energy teaching contractors how to sell the home, how to quote a job, how to install a job,” said Gadd. “Small family-owned businesses selling a pool at the kitchen table, selling the value of the pool they’re putting in, selling the value of themselves as a dealer or pool builder — there are a lot of similarities.”

That “kitchen table” sales process became a recurring theme throughout the conversation.

In Gadd’s view, today’s successful builders aren’t simply selling construction projects. They’re selling an emotional vision of how a homeowner’s life changes after the pool is complete.

“I think if you can sell your pool to a homeowner, sell them their dreams coming to life in their backyard, and allow them to see the vision of not only them spending time with their families in the backyard, but their neighborhood, their friends, and their eventual grandchildren, that’s where the opportunity is,” said Gadd.

That mindset becomes increasingly important in today’s financing environment.

According to Gadd, the luxury cash buyer still exists, while lower-income buyers are struggling to secure financing. But the middle of the market remains the battleground where builders have the greatest opportunity to win homeowners over.

“They’re staying home, spending more time in their home,” Gadd explained. “If we can get them to a place where they can believe it’s affordable — which I think a pool, in most cases, can be — then we should be able to get a fair amount of that middle of the market to move.”

Fiberglass pools continue to absorb more marketshare in the residential pool market

Fiberglass Keeps Gaining Ground

One of the biggest drivers behind Latham’s continued growth is the ongoing shift toward fiberglass pools.

For years, fiberglass was viewed in many parts of the country as a niche product category. Today, that perception is rapidly changing.

“I see fiberglass growing,” said Gadd. “I think people are becoming more aware of the benefits of fiberglass. Really beautiful designs, high durability, low maintenance — those are all good things for a consumer who doesn’t really want to spend their time maintaining, cleaning, and working on the pool.”

The speed of installation is another major factor.

“When a homeowner decides they want to do it, they don’t want to have to wait four months or five months to get into the pool,” said Gadd. “The shorter you can make that, the more attractive we feel it is.”

That speed-to-swim advantage has become one of fiberglass’s strongest selling points as consumers increasingly prioritize convenience and predictability over lengthy construction timelines.

At the same time, Latham continues investing heavily in educating consumers — particularly in regions where fiberglass still trails concrete and gunite pools in market share.

Latham Pool Company

An Eye on Expansion Opportunities

While fiberglass pools have long dominated many northern and midwestern markets, the southern United States remains largely controlled by concrete and gunite construction.

For Latham, that creates one of the company’s biggest long-term growth opportunities.

“The number one challenge is awareness,” said Gadd. “In the southern states, the majority of pools go in with concrete or gunite. But I believe — and we’ve got evidence to show with our growth in Florida — that if you’re able to get the consumer to understand the benefits of fiberglass, and you get together with a good dealer network that can install it at a price that’s affordable and the product looks great, that you can go and win against the standard.”

Florida, in particular, has become a major proving ground for the company’s strategy.

Latham has been investing heavily in dealer recruitment, market development, and consumer awareness campaigns throughout the region. While progress is gradual, Gadd sees significant upside because fiberglass remains relatively underpenetrated across many southern states.

“The good news is our share is relatively small in the south, so it doesn’t really matter,” Gadd said. “We’ve got plenty of market share to go get.”

That approach also allows Latham to continue building brand awareness during a quieter market cycle when competitors may be pulling back on marketing investments.

“It gives us quiet time to go get our message out when no one else is investing,” he added.

A Bigger Global Footprint

Latham’s ambitions extend well beyond the United States.

The company recently strengthened its international position through its acquisition of Freedom Pools, further expanding Latham’s presence in Australia and New Zealand.

According to Gadd, the acquisition immediately elevated Latham into the number one position in the Australian market while also introducing a different operational model that the company believes could influence future U.S. growth strategies.

“Freedom has a different business model on how it goes to market,” said Gadd. “It not only sells pools, but installs pools as well. So I think there’s certainly learnings that we want to take and potentially bring into the U.S.”

The acquisition also aligns with one of Latham’s broader strategic priorities moving forward: identifying opportunities that expand the company’s geographic reach while complementing its existing product ecosystem.

Latham Pools

Protecting The Core While Expanding The Future

As Gadd looks ahead over the next several years, he sees four major pillars driving Latham’s growth strategy.

The first is protecting and growing the company’s core business in the Northeast and Midwest, where Latham already maintains dominant market share positions.

The second is continuing to penetrate southern “sand state” markets where fiberglass still has room to expand.

The third centers around automatic pool covers — a category Gadd sees as dramatically underutilized.

“We’ve got a goal of auto covers on every pool,” said Gadd. “Every newly installed pool can essentially take an auto cover.”

In his view, automatic covers offer both practical and aesthetic advantages over traditional fencing while helping homeowners maintain cleaner, safer pools.

Finally, the company remains open to strategic acquisitions that either introduce adjacent product categories or expand Latham into new geographic territories.

“We want to look at businesses that give us something we haven’t sold before that’s adjacent to our current product line,” said Gadd.

Selling More Than A Pool

Despite all the discussion surrounding market share, acquisitions, automation, and geographic expansion, Gadd continually circled back to one core idea throughout the interview: pools remain an emotional purchase.

In uncertain economic times, builders who focus exclusively on price may be missing the bigger picture.

“I think selling the dream is really the most important part,” Gadd said. “Making people happy.”

For an industry built around family gatherings, memories, entertaining, and backyard living, that may ultimately be the strategy that matters most.

Ready to take a deeper dive?

Listen to our entire conversation with Sean Gadd, CEO of Latham, on the Pool Magazine Podcast.

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Joe Trusty

Editor in Chief of Pool Magazine - Joe Trusty is also CEO of PoolMarketing.com, the leading digital agency for the pool industry. An internet entrepreneur, software developer, author, and marketing professional with a long history in the pool industry. Joe oversees the writing and creative staff at Pool Magazine.

To contact Joe Trusty email [email protected] or call (916) 467-9118 during normal business hours. For submissions, please send your message to [email protected]

Pool News

NTCA Welcomes Jennifer Ibe and Rachel Smith to the Team

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Jennifer Ibe and Rachel Smith join the NTCA team

Flowood, MS, October 1 – The National Tile Contractors Association (NTCA) is pleased to announce the addition of Jennifer Ibe as Membership and Sponsorship Sales Manager and Rachel Smith as Membership Marketing Manager. The two new positions strengthen NTCA’s focus on membership growth, retention, engagement, and delivering greater value to members.

“Growing and strengthening our membership is a key priority for the NTCA, and Jennifer and Rachel bring the experience and expertise to help us do that,” said Jeremy Sax, Deputy Director of NTCA. “Their complementary skills will allow us to take a more strategic approach to both membership development and the overall member experience.”

Jennifer Ibe, Membership and Sponsorship Sales Manager

Ibe brings more than 10 years of experience in association events, sales, sponsorships, relationship management, and strategic growth. Most recently, she served as Director of Sponsorship and Sales for the Global Workspace Association, where she led major conferences, sponsorship development, budgets, and initiatives that increased attendance by 33% and profitability by 30%.

At the NTCA, Ibe will lead membership recruitment, retention, re-engagement, and relationship development while supporting sponsorship and partner revenue opportunities. She will also represent the NTCA at major industry events and help strengthen relationships with members and prospective members.

Ibe holds a B.A. in Communications from the University of Illinois at Chicago.

Rachel Smith, Membership Marketing Manager

Smith brings extensive association experience in membership, communications, digital engagement, and member programming. Most recently, she served as Digital Communications Manager for the Association of Electric Companies of Texas. Previously, as Director of Membership for the Texas Economic Development Council, she managed more than 1,000 members and developed programs to increase member engagement and networking. She also served as Membership Coordinator for the Texas Association of Community Health Centers, where she managed more than 5,000 members and led new-member onboarding and retention initiatives.

At NTCA, Smith will focus on member onboarding, retention campaigns, communications, digital engagement, webinars, events, and community development. She will also support membership analytics and digital initiatives aimed at strengthening the member experience.

Smith holds a B.A. in Communications with a minor in Social Justice from West Virginia Wesleyan College.

“Jennifer’s focus on relationship-building and membership development, combined with Rachel’s experience in member communications and engagement, gives us a strong team focused on every stage of the member journey,” Sax added. “We’re excited about what this means for our members and for the future growth of NTCA.”

About NTCA
Established in 1947, the National Tile Contractors Association (NTCA) is a nonprofit trade association dedicated to the professional installation of ceramic tile and natural stone. It is widely recognized as the largest and most respected tile contractors’ association in the world. For those seeking to improve their tile business, NTCA provides unparalleled educational experiences, supportive peer interaction, unique cost-savings programs, and a commitment to help develop the skills needed to improve your work, recruit, train, and manage your employees, and ultimately, make your business more profitable. Find out more at www.tile-assn.com.

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Darlly Filtration Partners With The Grit Game on Private Label Pool Filters

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Darlly Filtration and The Grit Game logos for private label pool filter partnership

DAVENPORT, Fla., Darlly Filtration, one of the largest filter cartridge manufacturers in the world and a private label supplier to well-known names in pool and spa, has partnered with The Grit Game (TGG) to represent its pool and spa filtration line across seven states: Florida, Georgia, South Carolina, Alabama, Mississippi, Louisiana and Texas.

A filter program with the dealer’s name on it

For most pool stores, the replacement cartridge is the most shoppable item on the shelf. A customer brings in a dirty filter, the counter team identifies it, and the customer finds the same part number online before reaching the parking lot.

Darlly’s private label program is built to close that gap:

  • Private label at no upcharge. The dealer’s logo goes on the cartridge label for the same price as a Darlly labeled filter.
  • Custom part numbers. Dealers can assign their own part numbers, so the filter on their shelf is not a line-for-line price comparison online.
  • No order minimums. No minimums on orders or on private label, so a dealer can start with their two or three highest-volume SKUs.
  • Same ship timeline. Product is labeled when the order is picked, so private label ships as fast as stocked product.

“Every pool store we walk into has the same story. Their team does the work of identifying a filter, and the sale walks out the door to an online seller. Darlly gives dealers a real answer to that: their own name and their own part number on a cartridge built to the original spec, with no upcharge and no minimums. That is the kind of line we want to put in front of pool professionals, because it helps them run a better business,” Laci Davis, Co-Founder and CEO, The Grit Game.

Built to the spec of the original cartridge

Every Darlly pleated cartridge is built to the specification of the original equipment cartridge, with:

  1. Single-layer tri-lobal spun bonded polyester media that resists chlorine and bromine
  2. An ABS injection molded center core made with NSF certified material
  3. Reinforced end caps with screen mesh molded in during production
  4. Pleat bands for pleat stability
  5. A screw thread guaranteed for life

What the partnership means across the seven states

TGG’s reps will work with pool professionals market by market, starting with the filters each account moves most.

  • Florida. A cartridge-heavy market where price pressure is constant. The focus is private label and custom part numbers that take the price comparison off the table.
  • Texas and Louisiana. Larger filters are the norm. Reps will cross-reference the large Hayward, Pentair, Jandy and Waterway cartridge sets that dominate the region.
  • Georgia, South Carolina, Alabama and Mississippi. Wide-open ground where D.E. filtration is still common, making universal grid kits a simple, single-line-item add alongside cartridges.

“Darlly Filtration is excited to partner with The Grit Game. The professionalism, integrity and high standards of The Grit Game Team embody what Darlly stands for,” Brad Schneider, Director of U.S. Sales Pool & Spa Division.

Pool builders, service route companies and retail store owners interested in a Darlly private label program can contact their The Grit Game rep here.

About Darlly Filtration
Hangzhou Darlly Filtration has manufactured filter cartridges for more than 25 years and is one of the largest filter cartridge manufacturers in the world, producing more than 35 million filters a year for customers in over 100 countries. Beyond pool and spa, Darlly serves the biopharmaceutical, microelectronics, medical, food and beverage, petrochemical and drinking water industries. Darlly is an OEM and private label supplier to established brands in the pool and spa industry and offers more than 600 replacement cartridge part numbers, universal D.E. grids and filtration systems. US operations run from warehouses in Ontario, California and Loveland, Colorado. Learn more at darllyfilter.com.

About The Grit Game
The Grit Game is an award-winning manufacturer rep firm and marketing agency serving the pool, spa and backyard industry across the United States and Canada. Founded in 2023 by Laci Davis and Johnny Davis, TGG works on an “education before transaction” model, connecting a vetted line of manufacturer partners with the pool professionals who build, service and sell to backyard owners. TGG was named Pool Nation Sales Rep Group of the Year in 2024. Learn more at thegritgame.com.

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A New Era at POOLCORP: John Watwood Focuses on Customers and the Fundamentals

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A New Era at POOLCORP: John Watwood Focuses on Customers and the Fundamentals

For John Watwood, taking the helm of POOLCORP represents something of a full-circle moment.

More than two decades before becoming President and CEO of the world’s largest distributor of swimming pool supplies, equipment and related outdoor living products, Watwood was learning the business from the ground up as a young participant in POOLCORP’s Manager in Training program.

“Right out of college, POOLCORP was my first career move,” Watwood told Pool Magazine. “I came in as an MIT. I was young. Loved the industry.”

His career would eventually take him outside the pool industry and into the bearing, power transmission and fluid power sector, but Watwood continued following both POOLCORP and the industry he had left behind.

“I always kept up with it. I always kept up with POOLCORP and what they were doing and where they were going, because I just thought it was such a unique industry, and it just kind of fit who I really was.”

One piece of advice from his first stint with the company proved particularly prophetic.

“My boss at that time, a guy named Bill Adams, who’s still with us, he told me, ‘Once you’re in the pool industry, you never get out,’” Watwood recalled. “And I guess that ended up coming true after 20-plus years, and I found my way back.”

From Management Trainee to CEO

Watwood certainly wasn’t thinking about eventually running the company during those early days. Asked whether becoming CEO had ever crossed his mind while participating in the MIT program, his answer was immediate.

“No. At that point, I think I was just trying to make sure I got to work on time,” he said.

The experience nevertheless left a lasting impression. Watwood spent roughly 90 days working in the warehouse, learning products and becoming familiar with the nuts and bolts of the distribution business.

“There are still a lot of part numbers that stuck with me from that original stint to this very day that I can easily rattle off,” he said. “Somebody comes in, they’re asking for a two-inch 90 slip. Man, I know exactly what that is and where to go.”

Decades later, Watwood returned to a dramatically larger organization and an industry facing a very different set of circumstances.

He stepped into POOLCORP’s top leadership position following several difficult years for the pool industry. Elevated interest rates, reduced housing turnover and a slowdown in new pool construction have placed pressure on builders and the broader supply chain, while the large installed base of existing pools has made service, repair and renovation increasingly important areas of the market.

Watwood doesn’t minimize those headwinds.

“We’ve got some challenges here for sure in the industry, and we’ve got some things we’ve got get better at POOLCORP for sure,” he said. “But overall it’s been great.”

Rather than arriving with a sweeping transformation plan, Watwood said his first months have largely been spent listening.

“My focus is to listen more than I talk,” he said. “I spend a lot of time in the field with our teams, at our sales centers, on calls with customers.”

Those conversations have centered on understanding what POOLCORP already does well, but perhaps more importantly, identifying where customers encounter friction.

“There’s just nothing you can do to replicate being in front of a customer and just listening to what their pain points are and what they need from us,” Watwood said.

That connectivity, he said, won’t simply be part of an introductory listening tour.

“The organization just has to be super connected to the industry, to our customers, to our employees, so we’re really listening to what they need us to be and where we need to go.”

Moving Beyond the Supplier Relationship

For a company whose scale has long been one of its defining competitive advantages, Watwood sees operational execution as a strength POOLCORP needs to preserve.

“We’re really good at the hard stuff,” he said, “when it comes to the operations, the four walls, POOLCORP’s really good at that, and has been for many years.”

But being an effective distributor is only part of what Watwood believes customers will require from POOLCORP moving forward.

“Can we be a better partner to the industry and the businesses out there? Of course we can,” he said. “Not just being a supplier, but being a business partner is just critical to the success of POOLCORP now and in the future.”

That distinction runs throughout Watwood’s strategy.

When considering what success should look like over the next 12 to 24 months, he isn’t pointing toward one massive initiative designed to reinvent the company. Instead, he describes himself as a “fundamentals guy,” with an emphasis on sales excellence, pricing and supply chain, operational execution and strategic M&A.

“I don’t think there’s any big super transformational thing POOLCORP needs to do here,” Watwood said.

From the customer’s perspective, however, he identified several straightforward benchmarks.

“We’ve got to be easier to do business with,” he said. “We need to find new ways to help them grow their business, not just supply them, and we have to continue to build trust with them.”

Reliability remains central to that equation.

“If they need something from us, they have to know it’s there. They’ve got to know we can get it to them and get it out the door quickly because time is money in this industry.”

Finding Opportunity in a Difficult Market

Exactly where those opportunities lie varies considerably across POOLCORP’s customer base.

New construction remains the most obvious trouble spot.

“That’s been the most challenged,” Watwood said. “It’s been a really tough environment for the last few years. Higher rates, less housing turnover. We all know the reasons why. It’s really slowed down new pool starts.”

The issue, from Watwood’s perspective, is larger than any single manufacturer, distributor or builder can solve independently. Getting the middle-market consumer back into the market will require cooperation throughout the industry.

“I think it’s gonna take a collective effort of all of us, supplier, distributor, dealer, builder, to really talk about what we can do and what we can impact,” Watwood said.

Those discussions are already happening. Watwood said conversations with large pool builders have focused on how POOLCORP can become a better partner and help move more pools, including addressing costs that may be keeping middle-market consumers on the sidelines.

Service and retail present a considerably different picture.

“Service and retail, that’s probably the most near-term opportunity I see,” he said. “There’s millions of pools already out there, already in the ground. The repair and remodel business has been pretty strong for us. The service business remains strong as well.”

For those businesses, Watwood sees opportunities for POOLCORP to expand its programs for chemicals and construction building materials while finding additional ways to help customers become more sustainable and profitable.

“We’ve got lead generation and joint marketing programs, really being linked up on the supply chain side,” he said. “That’s what everybody’s looking for as a partner right now, and they should be.”

Still, Watwood makes no secret of the fact that a healthier new construction market would benefit virtually every corner of the pool and outdoor living sector.

“We all wish the industry would be a little more robust, right?” he said. “It would really help us out if we could get that new pool construction 20, 30% more than what it is right now.”

New pools built today eventually become tomorrow’s service, repair and renovation customers, making construction an important feeder for the industry’s long-term installed base.

When that rebound arrives, however, remains difficult to predict.

“I honestly don’t have a crystal ball to say when the market is going to turn yet,” said Watwood.

Helping Pool Professionals Grow

Against that backdrop, Watwood believes POOLCORP’s responsibility extends beyond keeping products on the shelves.

He pointed to the company’s Retail Summit as one example of how POOLCORP can help dealers improve their businesses rather than simply sell them more inventory.

“We bring dealers in, we teach them how to run a more profitable business, how to merchandise better, how to think about their season differently,” Watwood said. “That’s us, really investing in their success, not just moving product.”

Technology represents another component of that strategy.

Watwood highlighted Pool360, which gives customers visibility into POOLCORP’s broader distribution network and the ability to check inventory beyond their local sales center.

“It’s not just an ordering tool,” he said. “It gives dealers visibility into our entire network so they can access inventory, manage their business, serve their own customers better than they could by just working off the local supply.”

Product training and marketing support also factor into the equation. Watwood said POOLCORP wants customers to have the knowledge needed to confidently sell and install new products while helping them compete more effectively in their local markets.

The objective is to identify the particular challenges confronting each type of customer rather than treating every business the same.

“It doesn’t matter if it’s retail or service or builder,” Watwood said. “They all have, as we were saying earlier, different friction points there that they’re trying to work through and we typically have a way to help them work through that.”

POOLCORP intends to continue refining the platform and reducing what Watwood described as user experience friction. At the same time, he stressed that some of the company’s most important improvements may be considerably less visible.

“How easy is it to place an order? How fast somebody gets an answer when they call in? How simple it is to check pricing or account information? How do we remain consistent in those areas?” he said.

“None of that’s flashy, but when it comes to distribution, the basics matter. The foundations matter. That’s the stuff that builds trust over time.”

Ultimately, Watwood said, customers want consistency. Technology can help create that experience, but Watwood’s view of distribution remains decidedly grounded in fundamentals.

“You got to be in the right areas. You got to have the right product in those areas. You got to have knowledgeable people working the counters, and just build upon those relationships.”

Authenticity, Transparency and Listening

Watwood’s approach to leadership follows a similar philosophy.

Among the first messages he delivered internally was the importance of authenticity.

“You’ve got to be authentic,” he said. “Who you are is who you are, and you can’t act one way towards one person and another way towards another person.”

Closely connected to that is transparency, something Watwood believes becomes increasingly important as both POOLCORP and its customers adjust to changes in the marketplace.

“The industry’s changing, we’re changing, customers are changing,” he said. “We need to be open and honest about what those changes are, where we’re going, and what we need to do to get there.”

That also means being willing to question practices simply because they’ve worked historically.

“Whatever we’ve done in the past for 20 years, maybe that’s not what we do moving forward.”

Watwood has asked the company’s executive leadership team to encourage that transparency internally, and he wants the same candor from POOLCORP’s customers.

In fact, some of the conversations he values most are with companies that don’t currently do much business with POOLCORP.

“I go and visit customers that don’t buy a lot from us because I learn a lot about the reasons why,” he said. “Probably I learn as much from those customers as I would any customer that does buy more volume from us.”

It’s an approach that requires hearing criticism as readily as praise.

“If we made some missteps in the past, I need to know those things,” Watwood said.

For an executive whose career with POOLCORP began at the warehouse level, that willingness to listen may ultimately define his tenure more than any individual initiative.

His message to builders, service professionals, retailers and dealers is that POOLCORP ultimately has to prove its value by adapting to what its customers need.

“POOLCORP is their business. It’s their company,” Watwood said. “This is a business that needs to adjust to be what they need it to be, and that’s being a true business partner.”

There are areas where POOLCORP already excels, he acknowledged, and others where the company has work ahead.

“But at the end of the day, if we don’t meet the customer’s needs, how and where they need to be met, then what’s our value proposition?”

For Watwood, the path forward comes back to the same principle that has shaped his first months in the job.

“We’re going to continue to listen. We’re going to continue to adjust and adapt,” he said. “And I think you’ll see a POOLCORP that gets even better as we move into the future.”

Ready to take a deeper dive?

Listen to our entire conversation with John Watwood, President and CEO of POOLCORP on the Pool Magazine Podcast.

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