State of the industry

by brittney_cutler_2 | April 28, 2022 11:39 am

Editor’s note: This is a summary of our 13^th annual industry survey and our 43^rd annual report on the state of the Canadian pool industry, including statistical information and market analysis. Information is based on Pool & Spa Marketing’s reader survey results, as well as Statistics Canada’s building permit records for swimming pools, with an overview of new pool permits for census metropolitan areas (CMAs). The figures are conservative and do not reflect many of the rural areas that do not require building permits for pool construction.

By Jason Cramp

With the introduction of provincial lockdowns, closures, and stay-at-home orders over the course of the pandemic’s two waves in 2020, it forced many families to change their way of living, their spending habits, and their overall outlook on what is important to them. The situation in 2021 was not much different, as the virus’s ability to mutate and quickly spread across the globe resulted in two additional waves. Since gyms, pubs, clubs, and restaurants were closed, and restrictions on global travel made the ability to hop on a plane for a change of scenery quite difficult, people’s homes became their havens. As witnessed in 2020, a huge component of making one’s home not only a place to work, but also a place to play was the installation of a pool—so much so, this demand flooded into 2021.

Region	Permit registrations
Canada	22,518
Alberta	200
British Columbia	968
Manitoba	382
New Brunswick	175
Newfoundland and Labrador	13
Nova Scotia	55
Ontario	4604
Prince Edward Island	30
Quebec	16,048
Saskatchewan	43

Although the pandemic’s behaviour altered over the past two years, and the fallout will be measured for years to come, many adapted to this different way of living. That said, in 2021, labour markets started returning to pre-pandemic levels, government stimulus measures eased, and consumer confidence heading into the year reached its highest level since March 2020[1].

The devil you know

Needless to say, backyard pools were a hot commodity. Even though winter is not conducive to pool installations in Canada, orders from 2020 snowballed onto those being ordered in 2021. While this represented a strong demand for the industry’s products, it also put strain on builders who were not only dealing with supply chain concerns but also a need for qualified labourers.

To put this in perspective, 2960 more permits were registered between January and February in 2021 than the year prior, representing a 293 per cent increase year-over-year. Similar to 2020, there was a cooling off period with respect to registered permits; however, there was more than enough work for the industry.

Current industry trends

After two gruelling seasons—each one blending into the next—builders first had to deal with a sudden increase in the demand for pools, followed by supply chain challenges. This created a domino effect. In 2020, many builders were booking into the 2021 season. As a result, in 2021, builders were busy getting their projects from the previous year completed while also taking on new clients.

Considering this amount of work will likely keep many builders busy for the foreseeable future, and nearly 27 per cent of all respondents (the survey’s largest demographic) saying they were 60 years of age or more, it stands to reason why business owners (representing 49.7 per cent of respondents) said they would be out of the pool business altogether (33.3 per cent) or retired (12.5 per cent). This trend has been rising since 2020, when 4.5 per cent selected this option, while 8.6 per cent of respondents said they would be retiring within the next five years in 2021.

Although many respondents are planning to retire by 2027, a steady influx of young professionals entering the aquatics industry continues, as 7.7 per cent of respondents have been in the industry for four years or less. Whether one is planning their retirement or just getting their start in the industry, our annual survey reveals the majority of respondents have or intend to make a career in the aquatics industry, as 55.5 per cent said they plan to remain in a similar position five years from now. Although finding and retaining staff in this seasonal business has its challenges and has never been more apparent than in the past two seasons, 50.9 per cent of respondents have been with their current company for more than 15 years, and 64.1 per cent have worked for one or two businesses.

A year in review

The 2021 report will provide an overview of the pool industry’s highlights and lowlights, and explore the pain points and lessons learned by those in various segments of the industry. Additional survey results reveal further details on staff and company profiles, wages and business profits, and economic forces that impacted the year. Further, a year-over-year analysis of permit registrations, along with details from interviews with manufacturers, distributors, builders, and retailers has produced an in-depth look at the nation’s pool industry—with a province-by-province break down—that exposes several trends to assist with one’s expectations for the 2022 season and beyond.

A full copy of the state of the industry report can be purchased by visiting www.poolspamarketing.com/industry-report.

This report and all the figures contained herein are copyright to Kenilworth Media Inc. No use may be made of this or any part of the data or reproduction of charts or graphs without the express written permission of Kenilworth Media Inc. © 2022

Source URL: https://www.poolspamarketing.com/trade/features/state-of-the-industry/

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