A well-defined purpose for being is the best road map for corporate success. Though POOLCORP’s worldwide distribution network crosses cultural, language and territorial boundaries, the 3,400-strong workforce is unified by distinct objectives.
To provide exceptional value to our customers and suppliers, creating exceptional return for our shareholders while providing exceptional opportunities for our employees.
Be the best worldwide distributor of outdoor lifestyle products that include all products relating to swimming pools, irrigation and other products that enhance the quality of outdoor home life.
There are roughly 80 million homes in the United States that have both the yard space and the economic capacity to have a pool. Of that number, approximately 12% currently have a pool, indicating a wide-open market of potential pool owners. A steady stream of new homes only adds to this overall market, creating even more fertile ground for pool development.
In terms of growth, the pool industry has historically been a steady performer. However, the economic downturn between 2007 and 2009 had a significant impact on our industry, driving an approximate 80% reduction in new pool construction in the United States compared to peak levels in 2005 and also contributing to more than a 30% decline in replacement and refurbishment activities. Current economic trends reflect improvement in consumer discretionary expenditures and higher replacement activities. Although general external market factors including consumer confidence, employment, and consumer financing and economic growth have improved, we believe the current economic environment remains uncertain, especially in Europe.
We believe there is potential for a significant sales recovery due to the build-up of deferred replacement and remodeling activity and our expectation for gradually normalized new pool and irrigation construction levels. We also expect that market conditions will continue to improve, enabling further recovery of replacement, remodeling and new construction activity to normalized levels over the next 7 to 10 years. We expect that the industry will realize an annual growth rate of approximately 4% to 7% over this time period before reverting back to 3% to 5% annual growth over the longer term.
POOLCORP’s expansive product offerings and markets place the company in a highly favorable position to provide exceptional value to our customers and suppliers. Pool ownership delivers a wealth of benefits – from relaxation and entertainment to family togetherness and exercise – these ideals never go out of style.