How many pools are in the us

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So why not pools? What do we make of an industry that has gone from rampant prosperity to rampant decline and then six years of stagnation?

Comparison of the Dow Jones Industrial Average and new residential inground pool construction, Click to enlarge. It could be that the industry is simply "taking a breather" from the momentous change of the past decade. This does happen in other industries susceptible to boom and bust cycles. The automotive industry is a good example: Car production in this country went into a period of relative stagnation from to after the post-war boom had largely saturated the available demand.

It entered a similar period in the early s, following an eight-year cycle of growth and decline. If an industry produces a product that is still in demand, then it will usually return to a solid growth trajectory within three to five years.

Otherwise it will languish, ultimately reaching something of a natural state. Industries that enter this phase are considered mature. They are characterized by a lack of innovation. Companies within these industries no longer invest in research and development. Moreover, marketing budgets are reduced. Cash flow becomes the imperative. While this is not to suggest that the pool industry is in this category, it does beg the question: Is this the new normal?

There are several ways to measure industry maturity. Perhaps the most appropriate in this case is to examine the degree of saturation of backyard pools no pun intended. In the exhibit below we depict the percentage of U. Once again we see the eventual leveling out that began in As a consequence, the percentage of households with pools remained roughly the same.

In fact, when we account for the number of pools now being removed from service we are getting close to where new pools are simply making up for the depletion rate — a scary thought for the aftermarket.

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