The pool and hot tub industry in 2024 proved to be a year of varied experiences, marked by both promising growth and persistent challenges. An analysis of the year’s trends across building and remodeling, service and repair, and retail sectors reveals an industry navigating economic uncertainty, shifting consumer behavior, and evolving market dynamics.
PHTA’S QUARTERLY PULSE SURVEY
The PHTA Quarterly Pulse Survey is a recurring industry research initiative conducted by the Pool & Hot Tub Alliance in partnership with Industry Insights, a leading research firm. It gathers timely data from businesses across the pool and hot tub sector to provide a snapshot of market conditions, trends, and sentiment. This survey plays a key role in helping industry leaders understand shifting dynamics and make informed decisions. Thanks to industry participants, the following report is possible.
A MIXED ECONOMIC LANDSCAPE
The year began with optimism, as many businesses anticipated a more stable economic environment. However, as 2024 progressed, the industry faced a range of challenges, including stubborn financing costs, labor constraints, and fluctuating consumer demand. Regional factors also played a significant role, with severe weather events impacting operations in various parts of the country.
BUILDING AND REMODELING: ADAPTING TO SHIFTING DEMAND
For pool builders and remodelers, 2024 was characterized by an unpredictable business cycle. While the first quarter showed growth, fueled by demand from high-income homeowners, economic pressures led to slowing revenue and thinner profit margins as the year progressed. Notably, new pool construction faced revenue declines, influenced by struggles in existing home sales and elevated finance rates. However, remodeling projects helped offset some of these losses, as homeowners opted to invest in upgrades to their existing properties. Builders adapted by shifting their focus, with remodeling revenue increasing throughout the year.
SERVICE AND REPAIR: CONSISTENT GROWTH AMIDST CHALLENGES
In contrast to the fluctuations experienced by builders, service and repair companies saw steady and widespread growth throughout 2024. A strong second half of the year was driven by favorable economic conditions for many households and sustained demand for ongoing maintenance and repair work. Profit growth mirrored revenue gains, with most companies reporting stronger year-over-year profitability. Employment levels remained stable, and productivity increased as companies managed rising service call volumes without significant staff expansion.
RETAIL: A GRADUAL REBOUND
Retailers in the pool and hot tub industry experienced a challenging start to 2024, carrying over headwinds from 2023. High interest rates, shifting consumer preferences, and soft demand for large-ticket recreational products contributed to a slow start. However, the sector began to rebound mid-year, with sales trends showing signs of recovery by the third quarter and solid growth recorded by Q4. Profit margins, which were under pressure early in the year, improved by Q4, reflecting stronger consumer spending. Retailers generally maintained stable staffing levels throughout the year, prioritizing workforce stability.
PERSISTENT INDUSTRY CHALLENGES
Despite the growth and recovery seen in some sectors, several persistent challenges continued to affect the industry:
- Economic Pressures: Economic uncertainty, inflation, and shifting consumer spending patterns created difficulties for businesses across the board.
- Profitability Concerns: Rising labor, material, and operating costs squeezed profit margins for builders and retailers.
- Workforce Constraints: Labor shortages and difficulties in recruiting and retaining skilled employees remained a significant challenge.
- Competition: Increased competitive pressure was reported by both builders and retailers.
- Logistical Challenges: Builders also faced challenges related to slow permit approvals, which disrupted project timelines.
OUTLOOK: CAUTIOUS OPTIMISM
Looking ahead, there’s a sense of cautious optimism throughout the industry. Builders and remodelers entered 2025 with renewed confidence, fueled by stabilizing inflation and improving consumer confidence. Retailers also finished 2024 strongly, with improving consumer demand. However, recent developments, such as declining consumer sentiment, have tempered some of this early optimism.
The industry as a whole is closely watching potential trade restrictions, evolving labor policies, and broader economic uncertainty. While the service and repair sector maintains a strong outlook, all segments recognize the need to adapt to evolving conditions.
THE IMPORTANCE OF INDUSTRY DATA
The Pool & Hot Tub Alliance (PHTA) Quarterly Pulse Surveys and annual Business Operations Survey play a crucial role in providing valuable insights into industry performance and trends. These resources help businesses navigate challenges, identify opportunities, and make informed decisions. Participation in these surveys is open to anyone in the industry, regardless of PHTA membership, and participants receive free reports and analyses. The more companies that participate, the better the data.
CONCLUSION
In 2024, the pool and hot tub industry demonstrated resilience and adaptability in the face of economic fluctuations and ongoing challenges. While different sectors experienced varying degrees of growth and faced unique obstacles, the industry as a whole is focused on navigating the future with cautious optimism, leveraging data-driven insights, and adapting to evolving market conditions.
This article first appeared in the May 2025 issue of AQUA Magazine — the top resource for retailers, builders and service pros in the pool and spa industry. Subscriptions to the print magazine are free to all industry professionals. Click here to subscribe.
