Looking on the bright side
In 2018, the swimming pool industry continued to make gains on the success it had in 2017. Despite the concern of less discretionary spending by homeowners, most builders will agree the weather also plays a significant role in the success of the pool industry. A late start to the season can be one of the biggest enemies of the pool industry as it can lead homeowners to have a mindset of “let’s wait until next year.” Further, for the sales builders do have, construction cannot get started properly until late spring/summer, which makes things difficult when dealing with the backlog.
According to The Conference Board of Canada, the economy is projected to slowdown to 1.9 per cent growth in 2019. One factor in this forecast is the easing of household spending as a result of higher household debt loads, rising interest rates, and soft wage growth. As part of this forecast, it is predicted residential construction will decrease thanks to the lower demand for new homes and a weaker outlook for renovation spending.
That said, those homeowners who have planned properly, or simply have the means to make this type of purchase, will still look to enhance their backyard environment. From the builder’s perspective, it is important to expand one’s service offerings; therefore, should new home residential construction projects slowdown, think of older homes in non-traditional areas as another business opportunity where small pools or spas can be built. In fact, some firms are taking on fewer projects each season as the projects they are completing are becoming increasingly complex.
Further, should the Canadian dollar remain, or drop, from its current value, another saving grace for the industry will be the escalating costs to travel to sun destinations. More people will be inclined to stay home and spend what discretionary income they have on new pools and other renovations rather than travelling. That said, a decent summer is still needed to make 2019 a good year.
2018 Percentage of Inground Swimming Pool Permits Issued (by Census Metropolitan Areas [CMAs])
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