Connect with us

Pool News

Recession Could Mean Less Discretionary Dollars For Pool Industry

Published

on

A Recession Could Mean Less Discretionary Dollars For The Pool Industry - Has the Pop Come?

Pool industry analysts are concerned that a recession could mean less discretionary dollars spent in the backyard over the next few years. In June, inflation increased to 9.1%, the highest it’s been since 1981. Today, the dollar is at a near 1:1 ratio with the euro. The last time there was a parity between the two currencies was 20 years ago. With questions of a looming recession, over 70% of Americans think we may already be in the middle of one.

If a Recession is Here, Has The Pop Finally Arrived?

The majority of financial analysts are convinced we already are headed for a downturn, according to Fortune. Consequently, many consumers have already begun to cut back on their discretionary spending, particularly for home improvement projects.

Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories
Pool Service Software

Consumers Appear To Be Cutting Back On Their Spending

A recent poll conducted by CreditCards.com showed that 47% of consumers surveyed said they don’t plan to increase their discretionary spending. Furthermore, Forbes forecasted that 7 in 10 people feel less confident making a major purchase than just 6 months ago. These numbers indicate confidence has sunk to pre-Covid levels and it appears that consumers have begun to curtail making larger discretionary purchases.

Belt Tightening in the Face of Rising Inflation

A Time of Belt Tightening in the Face of Rising Inflation

Gas prices surged to well above $5.00 a gallon throughout many areas of the U.S. on the heels of the situation in Ukraine. Prices have only now slowly begun to come back down. As of today’s writing, the national average for a gallon of gasoline stands at $4.57. Reportedly 26% of consumers have begun to belt tighten during conditions where they’re spending more at the pump as well as at the grocery store.

These cost-cutting measures to combat rising inflation are what we’ve seen occurring throughout the U.S. and indicative of what transpired in the years leading up to the Great Recession. Over 70% of economists surveyed by the Financial Times said they expect a recession to occur by the end of 2023.

While many organizations within the pool industry have reported record-breaking sales over the last two years, several quarters of decline have already begun to erode gains made during the pandemic. Rising costs of materials and a rapidly shifting consumer environment are predicted to impact sales through the end of ’22 and well into ’23.

Pool Industry Market Conditions Begin to Cool Demand

During the height of the pandemic, the industry experienced an explosion in terms of demand for new pool construction. Consumer interest in improving the backyard was at an all-time high as many were quarantining in their homes, avoiding travel, and choosing to reinvest in their outdoor living environment. Building a swimming pool became a top priority for many homeowners.

Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories

“Unprecedented Demand”

The term unprecedented demand suddenly became a buzzword on everyone’s lips during the pandemic. Builder and consumer confidence was suddenly at an all-time high. Those who truly know this industry can tell you that change happens at near glacial speeds during the normal run of things. To see a spike in demand the types of which we experienced was indeed unprecedented.

The facts are that inevitably what goes up, must come down. Nothing could be more true than how pool companies performed in the face of an economic downturn like the one that we saw during the Great Recession. The fact is that if things continue their current course we could very well experience an “unprecedented contraction” in the pool industry.

Pool Industry Stocks Plunge as Recession Looms

Inevitably, some of the largest firms have been the first to feel the changing economic climate. This is indicative by how stocks are performing across the board throughout the pool industry.

Swimming Pool Stocks Plunge as Recession Concerns Intensify

Presently, the Nasdaq is down roughly 29% YTD and the S&P 500, which had its worst first half since 1970, is off by roughly 19.5%. Consequently, it appears that a reversal of fortune for some of the largest pool companies has also been felt simultaneously. Since the start of 2022, the Big 3 are down an average of -43.21%.

Pool Construction Intrinsically Tied To New Home Construction

It is a fact that the pool construction industry is directly tied to new home construction. Given that a large portion of consumers who purchased a swimming pool over the past three years was based on pent-up demand in the market, new construction is needed to keep pace.

A Cooling Market & Rising Rates

As the market begins to cool, the trajectory for new sales takes on a different path that has led many analysts to reset expectations. Additional analysis showed during the month of May, the market for new home construction declined by 14%.

Pool Industry Decline - As the market begins to cool, the trajectory has taken a different path leading analysts to reset expectations

Higher prices, labor problems, and shortages of equipment and materials mean that building a home or for that fact, a swimming pool has ultimately become more expensive and for some is becoming out of reach.

Recession Conditions in a Housing Crisis

The ongoing housing crisis in our country means that in states like California where the median home price is now $797,000; a minimum annual income of $158,000 is required to qualify. The Fed’s plan to increase mortgage rates means that it will become even tougher to buy a home. This slowdown indicates that the housing supply will remain strained, leaving buyers under historic pressure.

Consumer confidence declined for the sixth month in a row in June, according to the National Association of Home Builders, a clear sign that the market is cooling down. Consequently, both builders and consumers are taking a “wait & see” outlook as rising mortgage rates continue to soften demand.

4.7/5 - (22 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 info@poolmagazine.com or call (916) 467-9118 during normal business hours. For submissions, please send your message to submissions@poolmagazine.com

Continue Reading
Click to comment


Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Pool News

Tesla Pool – Automaker Adds Swimming Pool To Charger Station

Published

on

Tesla Swimming Pool

One of the primary reasons consumers opt to purchase a Tesla is the robust availability of convenient charging stations. Recently, the automaker has experimented with adding amenities to its charging stations. New cube lounges at a Supercharger station in Germany come equipped with automated coffee, food, and more. Tesla is also adding other options and fun activities for drivers to enjoy while they wait for their vehicles to charge. The newest amenity they’re currently experimenting with is an above ground swimming pool.

A clip of the pool being installed prior to launch was shared with news sources.

Pool Service Software
Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories

The swimming pool can be used by up to 4 people at a time for 10 minutes, giving folks just enough time to change into their swim suits and enjoy a quick dip while their vehicle charges. There are even Tesla-branded beach balls to play with while they’re swimming in the shipping container style above ground pool.

This promotional popup will open at the Tesla charging station in Hilden, Germany; which incidentally is one of the largest in the country with 40 chargers and 8 superchargers. The pool will be open from Thursday until Sunday. Tesla owners can drop in for a swim from 2:00 p.m. until 7:00 p.m.

What do you think about this idea? Is this something you’d like to see in the United States? Sound off in the comments and let us know.

3/5 - (2 votes)

Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories

Continue Reading

Pool News

Pool Rental App Swimply Is The New Side Hustle For Homeowners

Published

on

Pool Rental App Swimply Is The New Side Hustle For Homeowners

Pool rental marketplace Swimply has created the ultimate side hustle for homeowners. Spending upwards of $100,000 to create the ultimate luxury outdoor living area is an investment some are willing to make. This is especially true if one can be confident they will recoup that investment quickly. Renting the pool to friends and neighbors is one smart way to do just that.

The Pool Rental Concept

Pool rentals are sweeping the nation and the innovative online marketplace Swimply is leading the charge. Described as “Airbnb of swimming pools,” Swimply debuted last year. According to the firm, there are over 20,000 swimming pools in all 50 states, as well as in Canada and Australia.

Pool Service Software
Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories

After recently raising $40M in funding from AirBnB and Lime co-founders last year, Swimply is poised for tremendous growth moving into 2023. The service has been rapidly gaining traction with consumers who are attracted by the ability to rent a swimming pool by the hour.

Renting a pool by the hour may can be very profitable. Swimply has created the marketplace for renting a pool.
Renting a pool by the hour may can be very profitable. Swimply has created the marketplace for renting a pool.

Swimply’s Business Model is Unique

In the sharing economy, Swimply, definitely deserves recognition for their offering. Providing a marketplace that allows buyers and sellers to connect and rent a pool is at the core of the company’s business plan. The model is simple, Swimply takes 15% of the booking fee from hosts and 10% from guests.

Swimply’s pool rental marketplace can be lucrative for hosts and may not be as weird as it sounds. As water recreational facilities were shut down by COVID in the last two years, Swimply has emerged to fill the vacuum. Consequently, the company has grown exponentially.

We spoke with Swimply Co-Founder and COO Asher Weinberger last year about the revolutionary new technology which is connecting homeowners with an open marketplace of consumers looking to rent a backyard for a few hours.

Listen to our conversation on the Pool Magazine podcast:

Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories

Pool Rental Marketplace Grew 5,000% During Covid

After a soft launch back in 2019, Weinberger quickly realized that the public was elated with their offering. “There was a tremendous amount of interest and at the time we could only meet 10 to 15% of the demand,” said Weinberger. “That helped set the stage for us because we learned a lot about what people wanted and how they were using the platform.”

“We caught huge tailwinds in light of Covid and grew roughly 5,000% year over year,” said Weinberger. Since then, Swimply’s marketplace has exploded with consumers searching for a safe recreational experience with friends and loved ones in an open outdoor setting. This has been true both on the guest side and the host side.

Homeowners Look To Monetize Their Pool

It appears that word has definitely begun to spread that renting your pool is a sweet new side hustle. One man in particular recently made the news after he reportedly netted $177,000 just by renting out his pool and backyard.

Jim Battan of West Linn, Oregon, told news sources, “I love to say that the pool has paid for itself and more. I built a man cave last year, and also credit that to my Swimply pool.”

Swimply As a Side Hustle

Being a Swimply host isn’t for everyone, according to Battan. The side hustle does require a fair amount of work on the part of the host. Maintaining the pool between guests involves much more than simply setting out fresh towels. His 26-foot by 18-foot pool and its accompanying pool house has cost him roughly $37,000 in maintenance over the last decade. On a typical week, Battan estimates that he and his wife Lisa spend approximately 12 to 14 hours cleaning and testing the water’s chemicals as well as managing all of their bookings.

“I love the income, but I generally caution people from it,” Battan told reporters. “Unless you’re retired or don’t have a day job, it takes a lot of time to learn about pool chemistry and management. It’s not good enough to just rely on a once-a-week service to come out look at your stuff. I look at my pool chemicals probably five to 10 times a day.”

Renting Your Pool By The Hour Can Be Profitable

It’s also important to note that Battan’s pool represents the best-case scenario. Currently, he’s Swimply’s top earner out of 25,000 pools in the U.S., Canada, and Australia. The average host earnings are between $10,000 to $20,000 per year.

Ned Gilardino is another top earner from Aurora, Colorado who is cashing in on the lucrative side hustle. Last year he rented his pool out roughly 500 times clearing close to $50,000 in the process.

“Not only has the extra money paid for the cost of maintaining the pool,” Gilardino told news sources, “it has actually brought in an entire new revenue stream for my family.”

Pool rentals vary by price and can be filtered to meet price, features, and amenities. - Photo Credit: Swimply
Pool rentals vary by price and can be filtered to meet price, features, and amenities. – Photo Credits: Swimply

Homeowners who are looking for MSI’s (multiple sources of income) can certainly put Swimply on their list of resources. Typically most swimming pools on the platform rent between $15 and $75 an hour. However, there appears to be no limit on how much hosts can earn. We’ve seen some pools in premium areas such as Beverly Hills rent for as much as $200 an hour. Those with luxury amenities in their backyard obviously can charge towards the higher end of the spectrum.

Guests can search for an ideal backyard in their price range to throw a pool party and even filter their search to show properties that have specific amenities. Finding a backyard with a fire pit, or an outdoor grilling area, or one that allows pets, is easy. Swimply made it simple to narrow down selections with the ideal features consumers are looking for.

The interface is simple and intuitive to use on both ends. Swimply also made it super easy for homeowners to track their reservations, communicate with guests and quickly get their pool rental up in their easy-to-use marketplace.

Swimply’s Contribution To The Shared Economy

Given that public pools are closing at an alarming rate, Swimply has also started filling a gap in underserved communities, much the way Uber and other sharing economy platforms have.

While the shared economy is a young concept itself; Swimply’s arrival simply ushers something we will undoubtedly see even more of in years to come. Though unexpected and a newcomer; one thing is certain, homeowners and consumers have embraced the concept of renting a pool by the hour.

4.6/5 - (17 votes)

Continue Reading

Pool News

Sinkhole in Swimming Pool Kills Man, Swallows Guests

Published

on

Sinkhole in Swimming Pool Kills Man, Swallows Guests

A man was found dead after being swallowed by a sinkhole that opened up in a private swimming pool. The incident transpired in Israel where authorities are still trying to figure out what caused two men to be swept away by the receding water after a sinkhole sprang up within an inground swimming pool at a private property in central Israel. One was recovered dead at the scene on Thursday afternoon.

The body was located by search crews in the town of Karmei Yosef after a four-hour recovery operation conducted by rescue personnel who were lowered deep underground. The search was hampered by concerns that tunnels extending from the sinkhole could lead to a second collapse.

Pool Service Software
Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories

It took rescuers several hours of searching before they were able to uncover the body of the man who had gone missing. The other 34-year-old man who had been trapped for some time, was saved and treated for minor injuries to his lower body.

Rescuers worked for hours to find the missing victims body. - Photo Credits: Fire and Rescue Services
Rescuers worked for hours to find the missing victims body. – Photo Credits: Fire and Rescue Services

Employees of a private company were having a pool party when the incident occurred. About 50 people were present at the time of the accident, according to one guest.

“The water level suddenly started receding and a hole opened up, creating a vortex that swept two people inside,” the guest told news sources.

She said a sinkhole opened a vortex formed which swallowed up the victim in a matter of seconds. She yelled at her coworkers to get out of the pool as the sinkhole emerged, but they initially assumed it was a game. Authorities say, fortunately, there were only 6 people in the pool at the time or injuries and casualties could have been far greater.

Aqua Blue Mosaics Aqua Blue Mosaics Aqua Blu Mosaics Pool Tile Mosaics Tile Grout Hardscapes & Pavers Outdoor Living Accessories

“Seconds later, the ground just dropped… I watched two people just disappear,” she added.

According to police, an investigtion into the incident is currently underway, and they plan to find out if the pool was operating with the proper license.

4/5 - (8 votes)

Continue Reading
Follow us on Google News
New Orleans Pool Builders - Baton Rouge Pool BuildersSponsored Advertisement
Sponsored Advertisement
Sponsored Advertisement
Become a Member of the Pool & Hot Tub AllianceSponsored Advertisement
Sponsored Advertisement
Sponsored Advertisement
Sponsored Advertisement
Sponsored Advertisement
Sponsored Advertisement
Austin Pool BuildersSponsored Advertisement
Pool Magazine App on Google PlayPool Magazine App on Apple Store

Download the NEW Pool Magazine App

Recent Pool News

Advertisement

Pool News

Pool Magazine™ is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn commissions by linking to Amazon.com and affiliated sites. Amazon.com, Inc. is not affiliated and does not endorse or support Pool Magazine.

Powered by
© Copyright 2020-2022 - All Rights Reserved - Use of this site constitutes acceptance of our Privacy Policy
Articles and content may not be reused without the expressed permission of Pool Magazine™.

0
Would love your thoughts, please comment.x
()
x