Turning 2025’s economic lessons into 2026 strategies

By Dani Sheehan. 

Backed by data-driven insights, the coming year offers a real opportunity for growth in the pool and spa industry. 

The 2025 International Pool, Spa, Patio and Decking Expo (PSP/Deck Expo), sponsored by the Pool & Hot Tub Alliance (PHTA), brought together professionals from a record-breaking 40 countries. During the day one keynote address, attendees heard a comprehensive economic update from Scott Hackworth, president of Industry Insights for PHTA, who unpacked the latest Quarterly Pulse Survey (QPS) findings and offered a grounded look at where the market may be headed. 

Now that the show has ended and 2026 planning is well underway, the most important question is: What should professionals do with this information? 

The state of the industry: Resilient, but facing margin pressure 

According to the Q3 2025 Quarterly Pulse Survey, the industry continues to show signs of resilience. Across builder/design/remodel, service/maintenance and retail segments, typical businesses reported modest total revenue growth between +1% and +5%. 

As Hackworth emphasized, higher top-line numbers don’t tell the full story. Even with rising revenue: 

• Bottom-line profits remained flat, hovering between +1% and –1% 
• Builders are more skeptical than other segments 
• Margin pressure remains a defining challenge 

Meanwhile, the economy outside the pool and spa world is shifting too. While GDP growth has softened, consumer spending on durable goods remains strong and has increased compared to the previous year. Homeowner equity is still high, suggesting demand hasn’t evaporated; it’s just being expressed differently. 

And then there’s interest rates: if rates dip below 6%, Hackworth noted, that could be the tipping point that the construction side of the industry needs.  

What the data signals for 2026 

Taken together, QPS data and economic indicators point to several clear opportunities for professionals preparing for the next buying cycle. 

1 – Service continues to lead growth and offers opportunity for 2026 

The service side of the industry was the strongest performer in Q3, with 55% of companies reporting increased service call volume. This trend has been consistent across recent quarters, bolstering service as one of the most stable, scalable and predictable revenue streams in the pool and spa market.  

For companies looking to buffer against economic uncertainty, fluctuating construction demand or margin pressures, expanding into service or strengthening your existing department can offer meaningful stability. 

Strategies for expanding or optimizing service in 2026 include: 

• Improve technician training and certification 
• Consider recurring-service models 
• Invest in better scheduling and routing tools 
• Cross-sell from service to remodels or upgrades 
• Strengthen customer communication 
• Build your online presence 

2 – Consumer spending is still strong, but you need to reach your audience 

Panelists during the keynote stressed the importance of targeted digital marketing and the use of social media platforms to reach your intended audience. User-generated content on channels like Instagram and YouTube have higher engagement rates than pushing all your efforts on Google ads and search engine optimization (SEO). In-house video and photography, brand clarity and sharing your long-term vision as a company have more lasting impacts on today’s consumer than ever before. 

3 – Labor challenges haven’t disappeared, but are more nuanced 

Labor shortages remain a top concern in the pool and spa industry, but panelists noted the pressure feels slightly softer than it has in previous years. Instead of acute shortages, companies are now navigating more nuanced challenges: recruiting skilled technicians, retaining top performers and building leadership teams that can grow with the business. The most successful businesses are shifting from simply trying to fill positions to focusing on long-term workforce development, culture and well-being. 

Use PHTA data to build a stronger 2026 plan 

PHTA’s Quarterly Pulse Survey now includes 11 consecutive quarters of trendlines covering revenue, employee counts, profitability, new pool construction, remodels, service calls and more. Anyone can participate and gain access to the Research Portal. The next survey opens January 2, 2026 – create your Research Portal Profile today to participate! 

While 2025 brought a mix of optimism, skepticism and economic uncertainty, the message from the PSP/Deck Expo was clear: the future favors professionals who embrace data, invest in their teams and build brand strategies that resonate with today’s consumers.