The pool and spa industry entered 2025 grappling with some significant economic challenges. Rising inflation, fluctuating interest rates, an increasing skilled labor shortage, shifts in consumer priorities … These factors all contributed to adding many a grey hair and wrinkle to the brows of company leaders. As homeowners took a hard, realistic look at their financial situations in the wake of the pandemic, the demand for pools and spas saw both upticks and downturns, depending on the region and specific market conditions.
One of the most pressing issues was inflation, which affected not only the cost of materials but also labor expenses. Builders and service companies faced increasing prices for essential components, which forced many owners to reassess their pricing structures, often leading to difficult conversations with homeowners regarding price adjustments. Pool and spa companies could no longer afford to absorb these costs without risking their profitability, particularly in markets that saw a surge of new competitors willing to undercut established businesses.
Simultaneously, interest rates remained a big concern. For many consumers, rising rates prompts caution when considering large “unnecessary” investments such as swimming pools. Pool builders saw a push-pull dynamic in new pool sales, as potential buyers became hesitant to commit to long-term financial obligations, fearing that economic instability might adversely affect their financial future.
Additionally, post-COVID labor shortages persisted as many skilled workers left the industry during the peak of the pandemic, and recruitment became an uphill battle. It’s an ongoing problem with the potential to be greatly exacerbated by the immigration issues the country continues to face. The logical impact is an escalation in wages, greatly affecting a company’s bottom line. Businesses needing to mitigate these costs often look to streamline operations, but that frequently requires investments in technology, further stretching already tight resources.
It’s quite a pickle.
Despite these challenges, several companies exemplified resilience and ingenuity in navigating the twists and turns of this new economic landscape. In “Ascending 2025,” our Deputy Editor Rebecca Robledo presents four diverse companies from all across the country — Avree Custom Pools in League City, Texas; Swimming Pool Services in Waukesha, Wis.; Ike’s Carter Pool Companies in Oakland Park, Fla.; and The Amenity Collective in Owings Mills, Md. — that quickly and successfully pivoted to address key concerns and adopted strategies for growth. These solutions include everything from the creation of new in-house positions, the introduction of palatable and profitable changes to customer billing, and radical employee-focused improvements to company culture.
As we move toward 2026, these innovative approaches remind us that within adversity lies opportunity. Companies that adapt quickly and thoughtfully to these unique challenges can thrive, even in an uncertain economic landscape. It’s a lesson for the entire industry: resilience, creativity, and a focus on core values remain essential for navigating the currents of change successfully.