Many pool companies have ignored or absorbed gradual industry price increases. But the year 2020 will be the exception. While no one likes to discuss raising customer prices, this year the pool industry has been hit from multiple directions. Here are few things that will impact the price of pool service going into 2021.
Affects of Coronavirus
- The Coronavirus or Covid-19 has made its impact known in every aspect of our lives. For the pool industry, we have seen our normal price inflation but also a skyrocketing demand from the service side of the business while at the same time we saw a slow down in manufacturing and shipping.
- Normal price inflation doesn’t always affect service pricing because most pool companies don’t want to raise their prices annually. But everyone being stuck at home, meant the residential pool business demand has soared.
- Demand for renovations, heaters and other upgraded equipment are at an all-time high. Many homeowners chose to open their pools earlier for swim season this year. Manufacturing delays have literally been affected at every level from raw materials, packaging, component delays and even, shortages.
- Many manufacturing facilities put non-essential items on pause for several months of the year. Manufacturing plants had to be outfitted for new safety protocols to help social distancing mandates. Shipping companies are more expensive than usual due to the higher demand for services that they are experiencing. In March of 2020 many ports were closed for several months.
Affects of Chlorine Shortage
- There is a severe chlorine shortage. Disinfectants, sanitizers and chlorine are in high demand for sanitization purposes.
- However, Trichlor which is the most used pool chlorine has a higher demand and a shorter supply. In August 2020, Hurricane Laura destroyed one of the largest chlorine manufacturing plants in the USA. This plant was responsible for 1/3 of the Trichlor production in the country. While other manufacturers intend to ramp up production, it will not make up the loss product.
- The prices of Trichlor have doubled since August and are expected to keep increasing well into next year. Although some Asian manufacturers may try to assist with meeting the demand, the cost of the product will still increase.
The world is completely different in 2020 and we are all learning to adapt. Unfortunately, this will mean higher prices in the Swimming Pool Industry. And it won’t just be the pool business it will be the entire global economy. As we have frequently seen in headline recently, “We are All In this Together.”