IS THE INDUSTRY DROWNING?

The UK’s pool industry, once riding a wave of unprecedented domestic demand, is now navigating a perfect storm. Soaring costs, economic uncertainty, and shifting social priorities are creating relentless challenges for every link in the supply chain — from the manufacturers and distributors to the builders on the front line. Meanwhile, the public faces a parallel crisis as public pools vanish at an alarming rate.

In the US, Leslie’s Inc, operating as Leslie’s Swimming Pool Supplies, is the largest retailer of swimming pool supplies and related products. The stock has declined 87% over the past year citing weaker earnings challenging macroeconomics with high leverage. Poolcorp Inc, the largest Distributor of outdoor supplies for swimming pools had seen its share price peak at $582 in Nov 2021. Recently, the price has been fluctuating around $310 to $318. For pool builders, the theoretical threats of the last year have become daily realities. The overwhelming pressure comes from rising inflation, particularly the soaring costs of materials and labour which are squeezing margins to breaking point. Pricing projects competitively has never been more difficult.

Compounding this is a significant shift in consumer confidence. The industry’s lifeblood — high-net-worth individuals — are now subjecting six-figure projects to unprecedented scrutiny and hesitation.

Builders are seeing longer sales cycles, delayed start dates on sold projects, and a need to pivot quickly from a model reliant on new construction. Cash reserves and flexible operating models are now key to survival.

RIPPLE EFFECT

The anxiety felt by builders is doubly troubling for those who supply them. The market is currently rife with tariff rumours; inflation , interest rates, spurring deep concern amongst manufacturers and suppliers. Market confidence declines further, largely attributed to fears over the macro-economic impact . This trend threatens a ripple effect across the entire outdoor living and wellness sector. While the private market grapples with affordability, a silent crisis is unfolding in the public sector.

According to Swim England, 500 public pools have been lost since 2010, amounting to roughly 35,000 square metres of water space—with almost half of these closures occurring since 2020. This erosion of community infrastructure has a devastating long-term impact on public health, accessibility, and swimming proficiency. The situation is so dire that Swim England warns 75 per cent of councils will face a swimming pool shortage by 2030.

SURVIVAL INSTINCTS

In the private sector, the key to resilience lies in strategic diversification. The industry’s inherent seasonality is a critical vulnerability. Businesses are now compelled to evolve from purely construction-focused operations into comprehensive lifestyle and service providers. This means expanding into year-round revenue streams like pool servicing, maintenance contracts, refurbishments, and the sale of ancillary products like hot tubs, saunas and all wellness related ancillaries. Furthermore, market trends are shifting. With middle-market buyers seeking more affordable options, we may see increased interest in plug-and-play spas, pre-cast or modular pools, and DIY-friendly above-ground setups. Retailers who stock these alternatives could find a new stream of customers wanting a slice of the outdoor good life, but for a lower price tag and with less commitment. Successfully navigating the contemporary business environment requires a deliberate and strategic approach.

The following pillars are critical for sustainable growth and resilience.

• Embrace Innovation and Efficiency Staying abreast of product innovation and technology is imperative. The heightened focus on energy efficiency and ecological consciousness is undeniable, driven by both environmental advocates and government policy, which is increasingly being codified into mandatory compliance.

• Invest in People & Planning Treat employees with total respect and consider offering competitive compensation or valuable alternatives. Employee turnover represents a significant hidden cost that many employers overlook. This is particularly acute in specialized industries like ours, where technical and product knowledge is a scarce commodity. Years of investment in an employee can be lost instantly. Rehires are costly, and replacements can take months, if not years, to fully integrate and deliver equivalent value. Acquiring deep product knowledge, understanding priorities, building customer relationships, and assimilating into the company culture is a protracted process.

• Prioritise After-Sales Support After-sales support is the key to longevity and customer retention. Investing in comprehensive training and providing end-users with robust support is essential for securing repeat business. The objective is to build unwavering trust and maintain exceptional responsiveness.

• Ensure Financial and Operational Strength Businesses are run on profits and cashflows. It is essential to know your operating costs down to every line item, maintained through consistent monthly reporting. This process becomes streamlined once a tailored template is established. Understanding these financial mechanics is vital, and monitoring the health of the business through key performance indicators is a non- negotiable discipline.

• Leverage Social Media Embrace social media as a core component of your strategy. In today’s world, effective social media marketing is a cornerstone for expanding reach and elevating brand profile. This medium is not a transient trend but a permanent fixture, continuously evolving into one of the principal channels for market engagement and customer acquisition. The longer-term forecast to 2035 projects that the global outdoor living and wellness sector will maintain a Compound Annual Growth Rate (CAGR) exceeding 3% from 2025 to 2033 (Source: Market Report Analytics 2025).

Population demographics, evolving lifestyles, emerging markets, and leisure spending are expected to remain at the forefront of consumer-led demand. The successful growth of businesses and the industry over the last few decades has been achieved despite previous challenges.

Going forward, proactively managing environmental impact and adapting to evolving regulations will be crucial for the market’s sustainable development.

Dash Ganeson
Honorary Treasurer (SPATA)
EDI Committee

Dash is available to assist in operational and financial advice with a health check for your business. Contact him in strictest confidence via email: ganesondash@gmail.com