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October 18, 2010 News
From Newsletter October 2010
Las Vegas, NV USA


"Pent up demand" is an economic term that has not been used that often in recent years, but we are now beginning to see it work its way into the vocabulary of business and commerce once again.  Especially now that "the recovery" has started...ending the longest and worst economic recession since the Great Depression.

The basic economics of "pent up demand theory" is that money is currently being saved by the consumer in order to pay down existing credit card or loan debt - or to counter the risk of job loss, or to offset thoughts of an uncertain future (i.e. save it for a rainy day approach).

This money that is sitting on the sidelines will be spent at some point. Necessary items like replacing balding tires, fixing leaking roofs, replacing old TV's and appliances, buying new clothes and other numerous maintenance-type purchases are already seeing a rebound.

These purchases account for the pent up demand curves that have been forming that have different shapes depending on the consumer's ability to postpone taking care of the inevitable...what they would consider "necessary purchases".

However at some point during the economic recovery process, the spending curves overlap and herdish spending begins amongst the backdrop of stable energy prices, government stimulus, new job creation and the inevitable stabilizing of the real estate markets - normally starting with the basic non-essentials (like a flat screen TV, a camera, or a nice computer), and then moving on to the larger consumer purchases such as boats, RV's, hot tubs, swimming pools and their associated commodities.  This is happening.  There is no doubt.  This cyclical economic trend recently repeated itself during the recession of 1999-2001.  In the pool & spa industry, 2001 was a very bad year.  But it rebounded tremendously in 2002 and grew at an exponential rate all the way until 2007.

After all, how long can you drive a clunker for instance? How long can you go before you need a new pool liner? How many thousands of people are sitting around RIGHT NOW dreaming about getting a hot tub or a swimming pool? The answer to that last question is hundreds of thousands of people. Possibly millions of people.


Gunite Pool Being Built


And the Swimming Pool Industry is starting to see the turn around in a big way.  Pool sales in the third quarter of 2010 have shown a remarkable increase in sales all of a sudden.

Curt Prystupa, the President of Sun Fiberglass Pools, reports that they have had a good year overall (in 2010).  "The surprise has been that our Kentucky Plant has had the best year since we opened the plant in 2007" he reports.

Sun Fiberglass Pools has introduced two new anniversary pool editions for the 2010 season as they are celebrating their 15th year.  These new models are value based, offering special LED colored lights and a Spa Cove package with 6 adjustable hydro therapy jets standard.

Prystupa says "The hot summer of 2010 stimulated early season sales as customers realized that if you wait to buy the pool memorial day weekend it's too late to enjoy the pool all season . A backyard pool isn't normally an impulse purchase and it takes preparation to get a inground pool constructed as building permits, homeowner association approvals, special order options all take time to process".

He continues, "When I'm asked the question, When is the best time to build a pool?, my answer is (usually) the fall.  The weather is better the ground is normally drier minimizing the damage to the overall site, the construction can be done quickly and the pool can be used for the entire season the following spring, the customers can install the landscaping and enjoy the pool the whole summer".

The prices for the industry have been flat for the last few years with the economic conditions.  The 2010 season surprised many suppliers in the industry and inventory levels are at an all time low, the wholesale prices on materials will increase for the 2011 season as the manufacturer's will need to re-supply the inventory . Manufacturer's have announced several price increases for (the 2011) season.

At Sun Fiberglass Pools, they are offering an early buy program where the customers can place their order with a small deposit and they will hold the price as long as they take delivery by March 31, 2011.


Viking Pools - Fiberglass Cancun Model


Billie Yost, of Viking Pools, another nationwide retailer of fiberglass pools  reports that "(Their) pool leads are up 40% this year compared to last year at this time.  And although pool sales aren't what they once were, we've noted an increase in sales this year compared to 2008 and 2009."

R’nelle Lazlo, the national vice president of Blue Haven Pools & Spas, the number-one ranked pool builder by Pool & Spa News, reports that "Our offices around the country report a lot of new business from pent-up demand - all those homeowners who want a pool, but who had been sitting on the fence”.

She adds, "Now the homeowners have grown tired of waiting, and they are taking the plunge and moving forward with home-improvement projects like a new pool.  Homeowners still want the advantages that a private backyard pool offers”.

Additionally Blue Haven Pools, which operates 60 U.S. offices, notes that “Our construction pipeline around the country is filling up with new projects from homeowners who want a new pool or remodel with all the bells and whistles like handheld remote controls, multicolor LED lighting, salt systems, and virtually chlorine-free purification.”


Above Ground Pools offer Family Fun For Less Money


Tim Casey, Product manager at's E-Commerce Division notes that, "The sale of above ground pool kits online has increased for us over 350% this year.  Simply put, 2008 and 2009 were really bad years for online above ground pools sales nationwide.  The weather was bad and the economy sucked - so what would you expect?"

He continues, "This year, in 2010, we have seen the sales of online above ground pool kits soar to levels we never saw before - even before the recession".

Jeff Fausett, President and CEO of Aquatech Corp says "Above Ground pool kit (sales) online have increased for us over 400% this year.  Let's face it....2008 and 2009 were really bad for online above ground pools - and from what I have heard - for local bricks-and-mortar above ground retailers as well.  The bad weather combined with the bad economy wreaked havoc throughout the above ground pool industry."


Top Of the Line Inground Pool With Hot Tub Spa


Rebecca Robledo from Pool & Spa News reports that "With the swimming season officially over, industry experts expect new-pool sales for 2010 to close a few percentage points higher than 2009. Estimates for (new) digs nationwide are predicted to come in between 45,000 to 50,000 for the year compared with approximately 45,000 in 2009."

She adds, "The Florida market, arguably the region hit hardest during this recession, also saw some of the strongest gains. Permit reports from the state’s major markets show that new-pool construction increased 12 percent in the Sunshine State from January through August, compared with the same period last year."

"Another devastated market, the Phoenix metro area, also may be rising, according to anecdotal information. The Texas, a market that has fared better than many other parts of the Sunbelt, saw a 2010 increase of close to 7 percent over the period of January through August in 2009. And two areas with record-breaking rainfall last summer - the Northeast and Midwest - saw rebounds as well."

“I don’t think anybody is calling for parades to go down Broadway, but it is getting better,” said Lawrence Caniglia, executive director of the Northeast Pool & Spa Association, with the Northeast being one of the absolute hardest hit markets in the nation for pool sales over the past two years.

Manuel Perez de la Mesa, CEO of PoolCorp, the nation's largest pool supply distributor said that “The markets that were hardest hit (during the recession) were areas like Florida, California, Arizona and Las Vegas, where the pools are largely concrete.”

Rebecca Robledo reports that "As far as pool type went, vinyl and fiberglass held steadier than their concrete counterparts, due largely to the locations where they are popular. Some say that fiberglass pools have actually gained market share."

“Before the recession, fiberglass pools made up the fastest-growing sector in the industry,” said Ashley Gill, CEO of Leisure Pools USA in San Antonio. “Everything got derailed during those recession years, but it seems to be bouncing back (now).”

Jeff Fausett, from Aquatech Corp. adds that "This recovery’s going to be 5 percent at a time.  It’s not going to leap up 20 percent in one year. Where new construction was once 250,000, it fell down [drastically] and it’s going to climb out 5,000 pools at a time each year.”


Nice Inground Pool With A Hot Tub Spa


If you are one of the thousands of people who are sitting "on the fence" waiting to finally get the beautiful inground or above ground pool that you have always wanted, there will probably never be another time like this in your lifetime.

A time where you can get a very high quality swimming pool at the best possible price, to add to your backyard.  If you are not a victim of foreclosure, and you are planning to stay in your home like the vast majority of Americans, now is definitely the time to invest in your family's future...and take the plunge into all the benefits of swimming pool ownership today.

Related Links:

Go To Back To The Online Newsletter Page

Swimming Pool & Swim Spa Buyer's Guide

Special Thanks To The Folks Who Provided Information For This Article:

Sun Fiberglass Pools & Spas
Blue Haven Pools
Viking Pools Above Ground Pools
Aquatech Corp.
Pool & Spa News
Northeast Pool & Spa Association
Pool Corp.
Leisure Pools USA

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