What does Indiana Inground Pool Growth Look Like for 2012?
There is an 800 pound gorilla in the pool business called Pool Corp (symbol POOL) who is
in the business of supplying inground pool builders with the vast majority of the things they buy. They are the world’s largest such supplier. So when Pool Corp speaks, all of Indiana’s inground pool builders listen.
Indiana Inground Pool Market. For the first time in a long time, I am hearing some good things about the strength of the in ground pool market both nationally and in Central Indiana. I am also finding people are in the buying mode.
Pool & Spa News recently reported that the pool industry’s economic forecast appears to be looking up according to data discussed last Fall at PoolCorp’s annual International Sales Conference. At the Conference, PoolCorp’s CEO Manuel Perez de la Mesa and CFO Mark Joslin reviewed the latest data on the in ground pool market and noted that many of the regions of the country are beginning to rebound.
“Having hit bottom in 2009 and 2010, we’ve seen new construction…grow a little in 2011” reports Joslin. PoolCorp’s executives stated that they expect new construction to rise by a healthy 12.3% in 2012. Perez forecasted an upward curve in housing over the next several years with a “return to normal” for 2014. PoolCorp’s executives essentially reiterated this position upon their earnings release on February 18, 2012.
Impact for Central Indiana Swimming Pool Builders. So what does this mean for Central Indiana pool builders? I’d say we should meet or beat that 12.3% forecast. That national forecast includes ugly big pool areas like California and Florida that continue to drag the pool market down. In contrast, I would guess that the Central Indiana area should meet or exceed this average. From my experience, I would guess that Indiana certainly recovered as much or more than the national average in 2011.
Based on the above, I think Indiana pool builders will be busy this Spring! While it is a smaller market than it was before the recession, there are less builders and most surviving builders have learned to exist on less business and control expenses more.
Impact on Indiana Swimming Pool Buyers. This means, that with a 12% expansion of the market, there will be no rest for pool companies this Spring—and that’s a good thing! For new 2012 pool buyers, however, it means getting your deal cut as soon as possible and pinning down the expectations as to when your pool will be started and when it will be done.
As to pricing, there is clearly some upward pricing pressure from the manufacturers but it is by no means huge by historical standards. Price increases are only now being announced so the sooner you lock in a price the better (many manufacturers will hold their price for dealers on business booked before an increase).
The way to get your best deal? Lock down your price now for a Spring install before the pool manufacturers raise their prices!
We here at Perma Pools, of course, are ready to assist you!