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Issue 20 ~  October 2009

 

Interesting things you can learn from pool permits

  • Dwindling demand has impacted pool builder market share in Florida, Texas, Arizona and Southern California. 

  • Pools added to existing homes once represented about 40% of all construction. Now these "retrofit" pools account for more like 60% of all contracts, owing to the huge decline in new home construction (43% this year so far).

  • Three of the five largest pool markets have collectively experienced a 62% decrease in new pool permits this year. (One has fallen even further.)

  • Also within the top five pool markets, the average contract price is off 24% this year…

  • … and the average size of a new pool is down 13%.

  • In virtually every one of the top five pool markets, spec pool construction is nearly nonexistent. "Owner-builders" are on the rise.

 

Estimated new pools by state, 7/08 – 6/09

Source: P.K. Data analysis of new pool permits as of the end of July. We are now tracking over 160 key pool markets. Please contact us if you would like more information concerning our selection of reports.
Three dangerous hot tub trends

So far this year it appears that sales of new hot tubs are running 40-45% below an already bad year in 2008. But it gets worse...

Cheap (really cheap) hot tubs

Want a hot tub for less than $1,000? How about less than $500? Some markets in Europe and Asia are starting to see the emergence of so-called “tubs to go,” inflatable vinyl-sided spas that “go where you go.” (One of our correspondents tried one and likened it to “sitting in a warm drinking fountain.”)

Used hot tubs

The hot tub segment’s new underground economy: Evidence is beginning to accumulate that the secondary market for hot tubs is growing. A quick trip through the Internet seems to confirm this: Even established retailers of new hot tubs now have a separate “refurbished tubs” business that several claim is “quite profitable at the moment.”

Unfulfilled warranty claims

This is an unfortunate outcome of the numerous recent bankruptcies involving both manufacturers and retailers. The number of hot tub owners left holding the bag for premature repairs continues to grow, and so too does that negative buzz on blogs and in chat rooms.
These trends cannot be helpful to an already beleaguered industry. Commented one industry veteran who recently retired after 33 years on both the manufacturing and retailing side: “It’s a great business and you hate to see it decline, but I think some bad decisions were made over the past several years and some people are going to have to just stew in their own juices for a while.”

 

Pool Permit Data is Now Available

P.K. Data is compiling pool permit information from markets across the country.  Each report contains the latest counts by markets as well as historical comparisons, permit values, econometric data and more. 

Check it out: http://www.pkdata.net/PKData/permits.htm

 

Waveline™ is a periodic report by P.K. Data, Inc. to inform decision makers in the swimming pool and hot tub industries about noteworthy trends that we uncovered during our recent research. If you no longer wish to receive this publication, please reply to this email with the word UNSUBSCRIBE in the subject field. You will then be immediately removed from the Waveline™ distribution list. We otherwise welcome your comments and suggestions. You may contact the authors by emailing info@pkdata.net.

The contents of this report are © 2009 P.K. Data, Inc. 3675 Crestwood Parkway, Suite 220 Duluth GA30096.  All rights reserved. This information may not otherwise be used without P.K. Data’s express permission.