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Pool Prices Are Going Up… Again

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Pool Prices Going Up, Cost for Swimming Pools Has Increased 30-40%

If you’ve been holding out and waiting for pool prices to drop, you may have to continue waiting. Analysts are predicting pool prices to increase this year due to rising costs for labor, materials, and equipment. The Federal Reserve approved the first rate increase in three years back in March in an effort to combat inflation, and a 50 basis point hike may be looming on the horizon.

Consumers who plan on buying a swimming pool this year can expect to pay a premium according to analysts. Builders across the nation are feeling the pinch of rising costs. Across the board; increased costs for labor and equipment are driving a need to recalibrate pricing structures yet again this season. Construction materials used to build swimming pools rose 31.3% percent from early 2020 to early 2022.

Construction Material Price Increases

As pool builders and swimming pool contractors attempt to maneuver a vastly different landscape of pricing, year over year increases can immediately be seen on the following materials:

  • Concrete – Up 11.6% since the start of 2021
  • Lumber – Up 79.5% in cost from September 2021 to April 2022.
  • Steel – Up 74.4% in price since start of 2021
  • PVC Pipe – Up 36.9% since start of 2021

(Statistics provided by the Associated General Contractors of America)

Manufacturers & Distributors Raising Prices

A round of price increase letters began circulating early this spring from some of the nation’s largest manufacturers and distributors. Consequently, builders are looking at big jumps in cost for pool pumps, filters, heaters, and a variety of other related equipment and components. Builders aren’t the only ones struggling, however. Pool service companies are also looking at sharp price increases from last year on chlorine as well as other chemicals.

To get a better understanding of how rising costs are impacting pool companies day to day operations, we asked several pool builders how they are navigating an environment of continuous price increases and what they are telling customers.

Consumers Have The Wrong Information About Pool Prices

“Honestly, there is a disconnect with consumers over how much pools really cost these days,” said Southern California pool designer James White of Dream To Design. “Homeowners are reading outdated or just completely inaccurate information when price shopping for a swimming pool.”

How Much Have Pool Prices Increased?

The majority of pool builders we surveyed in a recent poll say they have had to increase prices by 40-50% in order to keep up with inflation. “Unfortunately the base price of a swimming pool has gone up over the last two years,” said pool builder, JC Rodriguez who builds concrete in-ground pools, “for a basic pool without all the bells and whistles, we’re starting at around the $60,000 range and go up from there. Most of the time if we’re talking about a pool and spa with decking your average swimming pool is going to wind up at the $120,000-$130,000 price range.”

The prices that Rodriguez is estimating are consistent with what pool builders across the nation are charging for a complete in-ground swimming pool package. Pool Magazine surveyed a sample of 1,000 pool builders to see how their prices had increased since 2020.

Pool Price Increases From 2020 to 2022
52.7% of pool builders surveyed said they have raised prices 30-50% since 2020

Out of 1,000 pool professionals surveyed on April 1, 2022, 72.7% said they raised prices by over 30% since the pandemic began. 28.2% of builders surveyed reported they increased prices by over 50% since the start of 2020. Out of 1,000 builders surveyed, only 49 respondents indicated that they had raised prices less than 10% or not at all. While not indicative of price increases for the entire industry, this survey of builders provides a good cross sampling of increases across the country based off individual responses.

Homeowners Face Sharp Price Increases on Building a Swimming Pool in 2022

“We decided to build a pool at the absolute wrong time. I just paid $65,000 for our pool and it’s nothing extravagant,” said homeowner Mike Sovenski. “Not only was the same pool $40,000 before Covid, but our pool took 8 months to build. If I knew then what I know now, we would have waited but hindsight is 20/20.”

While some are struggling to rationalize the jump in prices, many homeowners have their minds fixed on building a pool this year and are ready to absorb the increases. “For us, it makes a lot of sense to build a swimming pool, this is a spec home and we will see our return on the back-end when we sell the house,” said Stepan Federov of Carmichael, CA.

Others have been waiting for so long just to get onto their builder’s dig schedule, that they are happy just to be able to say they are finally building a pool. “We wanted a pool and have just been playing the waiting game,” said Justin Brennan of Staten Island, NY, “It was our bad luck that we were unable to build exactly when we wanted to. Our builder was backlogged but we decided to wait,” explained Brennan, “we just broke ground last week and our pool will cost around 30% more than we were originally quoted. Quite frankly, I’m just happy that it’s finally underway.”

A Change In The Wind

While many homeowners are still waiting for the opportunity to build a pool, still more may decide to put off building a pool altogether right now. Indicators from some of the largest publicly held companies in the pool industry demonstrate that the pandemic craze for pools may be ending. Year-to-date, stock movements paint a less than rosy forecast for the rest of 2022. As of the time of this article – PoolCorp is down -24.31%, Fluidra is down -20.09%, and Latham’s stock is sharply down -50.06% since the start of the year. Watching how some of the top performers are struggling is a fair indication of what is going on in the rest of the industry.

In light of numerous global events, some of the largest pool builders are waiting to see exactly how the market will react before making any radical changes. “The geopolitical climate may certainly impact how our industry performs and how we’re able to enjoy the surge in demand, post-pandemic,” said Bonnie Chong, CEO of Anthony & Sylvan Pools who is actively monitoring developments in the industry. (Listen to our entire conversation on the Pool Magazine podcast).

“Not every market may experience the same factors that drive demand at the same time,” said Chong, who says that she plans to leverage Anthony & Sylvan’s footprint in a changing environment. Her outlook, however, remains optimistic that the demand will remain strong with consumers well into 2023. “Hopefully now folks have really started to find value in the home and value in spending time with family and friends in the backyard.”

The spike in demand we saw over the last two years does add some credence to that assumption. The pandemic probably did more to reinforce the value of a pool in the minds of consumers than possibly anything else in recent decades. One thing is clear, how consumers react to buying a pool in this rapidly changing environment is something the entire industry is watching closely this season.

5/5 - (16 votes)

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]

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Landslide Damages Homes, Destroys Swimming Pool in California

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Landslide Destroys Home, Damages Swimming Pool in California

A landslide wreaked havoc in Sherman Oaks early Wednesday morning, causing millions in damage and virtually destroying one homeowner’s swimming pool. The catastrophe unfolded at around 3 a.m. following reports from residents in the 3700 block of North Ventura Canyon Avenue, who noticed downed power lines and a large tree fallen into a backyard, as detailed in a press release by the Los Angeles Fire Department.

Upon arrival, firefighters encountered a significant portion of the hillside had shifted downward, endangering at least three homes and inflicting heavy damage on another under construction. Video footage captured by OnScene.TV revealed a gaping crack splitting through the backyard of one residence, with a section of the home visibly tilting to one side.

While no injuries were reported, several individuals were evacuated from at least one home, with firefighters resorting to pumping water out of a swimming pool to alleviate additional strain on the hillside. Unfortunately, part of the pool and home ultimately collapsed down a 30-foot cliff destroying another residence that was still under construction.

Responding to the crisis, the Los Angeles Department of Building and Safety initially deemed one home unsafe, red-tagging the structure. However, their assessment later extended to two homes deemed unsafe and a third severely damaged, marked with a yellow tag. Ongoing drone surveys by firefighters aim to assess the extent of the damage and potential risks.

At present, the exact cause of the landslide remains undetermined, according to LAFD spokesperson Nicholas Prange. Requests for comment from the Los Angeles Department of Building and Safety went unanswered.

Authorities seized the opportunity to remind residents of the necessity for year-round emergency preparedness, emphasizing the looming threats posed by wildfires and heavy rainstorms capable of triggering landslides.

The unfortunate incident follows March’s heavy precipitation in Southern California, with Sherman Oaks experiencing 1.95 inches of rainfall over March 6th and 7th, as reported by the National Weather Service.

4.9/5 - (12 votes)

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BofA Downgrades Latham Group Citing Weak Pool Construction Market

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BofA Downgrades Latham Group Citing Weak Pool Construction Market

Latham Group (NASDAQ: SWIM), a prominent player in residential swimming pool construction, faced a setback as Bank of America downgraded its stock due to concerns over sluggish new pool construction and increased decrementals.

With the downgrade, SWIM’s stock plummeted by 23.78% during pre-market trading on Wednesday, settling at $2.50, marking an 11% dip below its 200-day simple moving average.

Bank of America revised its recommendation on Latham Group stock to Underperform, slashing the price target from $4.50 to $2.60.

In its 2024 guidance announcement, SWIM projected revenues between $490M and $520M, falling short of the consensus estimate of $533.09M. Similarly, adjusted EBITDA guidance ranged from $60M to $70M, representing an 8% to 35% decrease compared to previous expectations.

The downgrade stems from a sluggish start to 2024, subdued projections for new pool construction, operational challenges leading to deleverage, and constrained free cash flow.

Management anticipates a 15% year-over-year decline in new pool construction for 2024.

These developments contrast with the optimistic sentiment among some sell-side analysts, who maintain a Buy rating on SWIM with an average price target of $3.54.

Scott Rajeski, President and CEO, stated, “Latham navigated a very difficult market environment in 2023. We successfully implemented cost reduction programs and lean manufacturing initiatives that structurally reduced our cost basis, while maintaining our investments in future growth. These cost reduction programs improved margins as the year progressed and we expect they will enable us to considerably expand margins and overall profitability once volumes recover. At the same time, we increased productivity and efficiency for our dealers, developed new fiberglass pool models, and invested in digital tools that have enhanced the consumer’s pool buying experience. As a result of these actions, Latham is positioned for meaningful market share gains as overall industry conditions improve.”

5/5 - (7 votes)

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Fluidra Launches €20 Million Venture Capital Fund – Fluidra Ventures

The company will invest €20 million in tech-based startups that offer emerging solutions that can enhance the pool and wellness sector.

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Fluidra Ventures

Fluidra, a global leader in connected equipment and solutions for the pool and wellness sector, is launching Fluidra Ventures, a €20 million corporate venture capital fund (CVC) investment to lead innovation in the sector.

The CVC will invest in each startup with the potential to revolutionize the industry on a global scale through their solutions, with a special focus on the United States and Europe. The goal of this first three-year phase is to build a solid portfolio of startups through investing in innovative companies.

The CVC will target startup initiatives that enhance efficiency, connectivity, sustainability and safety in the swimming pool and wellness business, leveraging IoT, computer vision and robotic solutions. It is looking for startups that add value to the pool and wellness sector with innovative business models, fostering direct customer interaction through sales, subscriptions and other channels. The CVC has already invested in Coral Smart Pool, a technology company aiming to transform the pool experience through Artificial Intelligence (AI) with an initial focus on pool safety.  

CPO Class - Virtual Online Classes - Become a Certified Pool Operator

Fluidra Ventures will also invest in companies that innovate in engineering and science to advance materials and products that deal with swimming pool manufacturing, efficiency and maintenance.

Four segments and eight strategic guidelines

The fund is focused on four different segments — Commercial, Residential, Wellness and Mass Market—and has an investment thesis that covers eight strategic guidelines, from connected pools, resource optimization, digital platforms, innovative materials, security systems, personalized experiences, robotics and innovative consumable products.

Fluidra Ventures is fueled by Fluidra Lab, Fluidra’s open innovation division, and any startups that want to submit their proposals can send their investment pitch decks to [email protected]. Offering more than just investments, Fluidra aims to leverage this initiative to become the top strategic collaborator for the most innovative startups with the tremendous benefits that being an industry leader brings, such as: resources, scale successful business models, expertise, experience, and sales options.

“This initiative joins several others that we have at Fluidra to promote innovation in our industry. This is why here at Fluidra Ventures we’re excited about the transformative potential that this venture will have for the pool and wellness industry, driving forward innovation, sustainability and technological advancement”, said Eloi Planes, Fluidra’s Executive Chairman.

5/5 - (12 votes)

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