The Pool & Hot Tub Alliance (PHTA) recently released the results from its Quarterly Pulse Survey (QPS) for Q4 2024, revealing a very optimistic point of view among builders, service professionals, and retailers. The infographic below gives a topline view of the data from the QPS, but to delve deeper into sector performance by region, you need to participate in the survey to access the data. Simply visit the PHTA Research Portal, create a profile in under a minute, and PHTA will email you when the next survey opens.
Cumulatively, more than 300 respondents participated in the survey between January 15 and February 7. At that time, respondents anticipated a 5.4% growth in revenue over the next 12 months compared to the past 12 months. This underscores the resilience and growth potential of the industry, highlighting the industry's ability to adapt to economic challenges.
Revenue from New Pools and Pool/Spa Combinations
Despite economic turmoil, revenue from new pools and pools/spas remained relatively stable, with 34% of companies reporting an increase and 35% of companies reporting a decrease compared to Q4 2023. This suggests continued consumer demand for new pool installations, even in the face of inflation and rising interest rates. For details behind these numbers, visit the PHTA Research Portal. Participants get access to the data and benchmarking tools, so please participate in the next available research survey to gain access.
Revenue from Remodels
The remodeling sector demonstrated stronger performance, with 49% of companies reporting an increase in revenue from remodel jobs compared to only 19% reporting a decline. This indicates that homeowners are investing in upgrading their existing pools, potentially opting for the more affordable renovation options over a new build.
Revenue for Portable Hot Tubs and Swim Spas
Similarly, for portable hot tubs and swim spas, 38% of the sector saw increases in revenue, pointing to a positive trend for the sector that had been experiencing a downturn back in 2023. In fact, the sector is predicting revenue increases of 4.9% over the next 12 months compared to the past 12 months.
Maintenance and Service Call Volume Increases
The maintenance and service sector remains strong, with 58% of service companies experiencing an increase in revenue on average of 3.1% for the fourth quarter. This highlights the essential nature of these services in maintaining pool functionality and safety. The sector is among the strongest growth opportunities, predicting revenue increases of 5.7% over the next 12 months compared to the past 12 months. The combination of homeowners returning to the office five days a week will only enhance the trend to outsource service and maintenance work to service professionals.
Retailers Remain Optimistic
Despite the challenges, retailers reported a slight increase in total revenue and maintained stable employee numbers. Retailers also anticipate a 4.9% revenue growth over the next 12 months compared to the past 12 months. This suggests optimism about future prospects, with retailers potentially benefiting from increased demand for pool maintenance products and services.
Challenges and Future Outlook
The survey also identified key challenges faced by businesses, including economic factors, maintaining profitability, and recruiting and retaining skilled employees. However, despite these challenges, the majority of companies (70%) reported feeling well-positioned to adapt and thrive in the face of industry disruptions or changes. Moreover, 78% of companies anticipate revenue growth over the next 12 months, indicating a positive outlook for the industry's future.
Conclusion
The PHTA Pulse Survey for Q4 2024 reveals a resilient industry navigating economic challenges. While some sectors faced declines, others demonstrated growth, highlighting the diverse nature of the pool, spa, and hot tub market. With a positive outlook in January, we will see if this continues in the next Quarterly Pulse Survey for Q1 2025, which opens in April. For more information, log in to the PHTA Research Portal.