Gaddis discusses Lathams fiberglass pool business, the Sand State strategy targeting Florida and Southern California, and the consumer economy. Pools are a discretionary purchase, and the company is seeing growth from new home builders using pools to offset high mortgage rates.
Latham is the #1 pool manufacturer globally, making fiberglass and vinyl pools and auto covers.
Tim Stenovec
Asks about the biggest growth area.
Sean Gaddis
Two markets: primary (recreation in empty lots) and secondary (new home builders using pools to offset high mortgage rates by buying down rates).
Carol Massar
Asks about the Sand State Strategy and fiberglass pools.
Sean Gaddis
Fiberglass is 25% of the US market and growing. It takes 6 days to install vs 90-120 days for cement. The Sand State Strategy targets Florida to Southern California.
Carol Massar
Asks about weather and climate change impacts.
Sean Gaddis
The business is cyclical but weather doesnt kill a year. Southern states have longer seasons, helping balance the business.
Carol Massar
Asks about the cost of a pool.
Sean Gaddis
Average pool cost in North America is $95,000, ranging from $70,000 to $200,000 with landscaping.
