APSP Quarterly - Winter 2008 - (Page 32)

INDUSTRY Update Builders and retailers report a mixed year BY B I L K E N N E DY MANY SWIMMING POOL builders and their pool and hot tub retail coun- What are your expectations for 2008? Decline 9% terparts are prepared to write off 2007 as an “okay, but not great” year. That’s the consensus of the latest APSP/P.K. Data survey of 200 builders and retailers across the country earlier this month. While nearly 30 percent of the participating builders said that their business was up from last year, most tempered their enthusiasm by quickly adding that their increase over 2006 was scant at best. Yet there were bright spots. Several builders, notably smaller custom installers, said that their business was very brisk and that they could not keep up with the demand. As one Connecticut builder commented, “I’m told that the industry is down again this year. You’d never know it by us. Our business is probably up 50 percent.” The situation with pool and hot tub retailers was very similar. While many retailers reported brisk traffic this year (compared to 2006), most hot tub dealers lamented a decline in comparative sales. The one bright spot in the builder/retail segment continues to be aftermarket sales. Sales of pool maintenance products and accessories appear to be on track for another strong year. Improve 49% Same 42% Builders Interviews among both builders and retailers were conducted by telephone in key residential swimming pool and hot tub markets. The highlights of the builder survey are presented here. Virtually all of the 9 percent who said they expect their business to decline next year also said their business was worse this year (in the previous question). The next set of questions dealt with the sale of add-on components such as salt chlorine generators and automatic pool cleaners. New technologies are constantly being introduced or upgraded in a quest to make pool maintenance simpler and less problematic. The extent to which these products are catching on with pool owners is the basis for our next series of questions to the builders. How would you compare your inground residential pool business (new permits) compared with 2006? Better 30% What percent of your new pools include the following options? 43% Salt chlorine generators 10% 15% 16% 6% 64% 8% 4% 69% 51% 19% 8% 15% 0% 37% 62% 46% 23% Mean " 100%" " 0%" Worse 39% Mineral systems Ozone systems Heater/heat pump Diving board Same 31% As indicated, builders who are having a good year are, in fact, having a very good year. When we asked how much they felt that their business will have increased for the entire year, the responses averaged nearly 35 percent. The same question posed to builders who saw their business declining this year estimated the loss closer to 40 percent. Safety devices (alarms, locking gates, etc.) “100%” refers to the percentage of builders who add a given component to all of their pools; “0%” refers to the percentage of builders who do not include the component with any pools. One of the more consistent fi ndings in P.K. Data’s research over the years has been that roughly 60 percent of new pools are built in conjunction with new homes. It appears that percentage may be slipping somewhat this year in favor of so-called retrofit pools, i.e., pools that are added to existing homes. 32 | AQ A P S P Q UA R T E R LY

Table of Contents Feed for the Digital Edition of APSP Quarterly - Winter 2008

APSP Quarterly - Winter 2008 Contents President's Message Guest Editorial APSP Annual Report Hot Tub Council Initiative to Speak with One Voice Suction Safety Challenging the Process Industry Update Keeping Pace: Staying on the Cutting Edge With Lifelong Learning APSP News & Resources Advertisers' Index

APSP Quarterly - Winter 2008

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