Fiberglass Versus Concrete in Pools

Summary

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Bloomberg Businessweek: Fiberglass Versus Concrete in Pools

Hosts: Carol Massar & Tim Stenovec
Guest: Sean Gadd, President & CEO of Latham Group
Date: June 25, 2026

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Episode Overview

This episode dives into the evolving swimming pool market, examining the growing competition between fiberglass and concrete (cement) pools. Sean Gadd, CEO of Latham Group—a leading global manufacturer of pools—joins to discuss product trends, market penetration strategies, cost factors, and the impact of weather and climate change on pool sales. The conversation also touches on supply chains, sales channels, and consumer decision-making in the pool industry.

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Key Discussion Points & Insights

1. The Business of Pools: Latham Group’s Role

[03:06]

• Latham Group is the #1 pool manufacturer globally, with scale in fiberglass and vinyl pools and a leading safety product: automatic pool covers.
• Their largest market is the US, but they also serve Canada, Australia, New Zealand, among others.

2. Areas of Growth and Sales Strategies

[03:32] - [05:26]

• Two primary markets:
  • Replacement pools for existing homes.
  • New construction pools, where homebuilders use pool “upgrades” to entice buyers despite higher interest rates.

“There's a secondary market which is single family, new construction, home builders who are using the pool to help offset the interest rates…” – Sean Gadd, [03:37]

• Latham’s “Sandstate Strategy” targets high-growth southern US markets (Florida to Southern California) with a focus on introducing fiberglass as a compelling alternative to cement.

3. Why Fiberglass is Winning Share from Concrete

[04:13] - [05:51]

• Fiberglass pools comprise 25% of the US market and are gaining share annually.
• Key benefit: Rapid installation (as little as 6 days), compared to 90–120 days for cement pools.

“Once a consumer decides I want to be in a pool within six days, we're in and out.” – Sean Gadd, [05:19]

• While the Midwest and Northeast know fiberglass and vinyl, southern markets are still dominated by cement—leaving room for market share gains.

4. The Consumer Decision Process

[05:51] - [05:59]

• Consumers usually engage a contractor, who then picks the product.
• Builders are critical “gatekeepers”; thus Latham is heavily investing to educate builders and consumers in the South.

5. Geotargeting Growth: Sandstate Strategy

[05:59] - [06:47]

• Latham identifies neighborhoods with high potential using criteria like pool price, home value, lot size, and household income.
• They work with local dealers to promote and deliver fiberglass options in these areas.

6. Impact of Weather and Climate Change

[06:47] - [08:00]

• Pool sales are seasonal and cyclical; spring-summer-autumn are peak times.
• Cold weather or spring delays may impact a “quarter,” but rarely the full year.
• Climate change (hotter weather and longer warm seasons) is boosting demand, especially in the South.

“As we penetrate further into the southern markets, we'll be able to balance our business in a much more effective way.” – Sean Gadd, [07:50]

7. Cost Structure of Pools

[08:00] - [08:48]

• Average installed pool cost in North America: $95,000
  • Entry level: ~$70,000
  • High end (with landscaping, kitchens, etc.): upwards of $200,000
• Reasons for high cost: raw materials, labor (both increased during COVID), and installation complexity.

“During COVID material costs went up, obviously, and hasn't corrected. Labor definitely went up and hasn't corrected.” – Sean Gadd, [08:32]

8. Supply Chains and Manufacturing Advantage

[08:48] - [09:08]

• All US-supplied fiberglass pools are manufactured in the US due to transportation and quality concerns.

9. Famous Pools and Maintenance—The Algae Problem

[09:08] - [09:44]

• Why is there algae in high-profile pools like the Washington Monument Reflecting Pool?
  • Fiberglass pools are non-porous, so they resist algae growth more effectively than other types.
  • Most algae issues are simply “water chemistry”—proper use of chemicals fixes it.

“Fiberglass, again, one of the advantages, it's non porous, so algae doesn't grow in it.” – Sean Gadd, [09:22]

“It's relatively easy… you just get the chemicals and test the water, right?” – Bloomberg Radio Co-Host, [09:42]

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Notable Quotes & Memorable Moments

• On Market Penetration:

  “We're spending and investing a significant amount of marketing in the southern markets on our sand State strategies.” – Sean Gadd, [05:59]

• On Pool Installation Speed:

  “Once a consumer decides I want to be in a pool within six days, we're in and out.” – Sean Gadd, [05:19]

• On Cost Increases:

  “Material costs went up, obviously, and hasn't corrected. Labor definitely went up and hasn't corrected.” – Sean Gadd, [08:32]

• On Pool Chemistry:

  “Fiberglass… one of the advantages, it's non porous, so algae doesn't grow in it.” – Sean Gadd, [09:22]

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Important Timestamps

• 03:12 – Latham Group overview and product lines
• 04:13 – Explanation of the sandstate strategy and fiberglass market gains
• 05:19 – Fiberglass installation speed compared to concrete
• 06:47 – Growth in the South, neighborhood targeting
• 07:16 – Impact of weather and climate
• 08:00 – Average pool costs and what drives pricing
• 08:48 – Domestic manufacturing and supply chain strategy
• 09:22 – Algae problem and material science (Reflecting Pool anecdote)

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Tone and Style

The conversation is informative but conversational, combining business insight with relatable analogies and a light, approachable tone. The hosts encourage Sean Gadd to clarify technical points for listeners who may be familiar with homeownership but less so with the specifics of pool construction.

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Summary Takeaway:
This episode offers a clear-eyed look at how demographic trends, climate, and innovation in materials are shaping the backyard pool market—highlighting why fiberglass may be the material of the future. For consumers, builders, and investors alike, understanding these trends could make a splash in upcoming summers.

Transcript

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[Bloomberg Radio Host]

Bloomberg Audio Studios Podcasts Radio News.

[Bloomberg Radio Announcer]

You're listening to Bloomberg Business Week with Carol Massar and Tim Stanovec on Bloomberg Radio.

[Bloomberg Radio Host]

Retail sales data for May that showed that US Consumers increased spending in the month across a broad range of retailers despite higher energy gasoline prices 11 of 13 categories. Tim posted increases with motor vehicle sales rebounding by 1.2% and spending at online retailers rising for a fifth straight month.

[Bloomberg Radio Co-Host]

Yeah, safe to say pools are not in their own category, but I think if Mike McKee were here, he would have some sort of statistic that he could rattle off all about the indicator when it comes to pools. There's certainly something that some consumers spend on an indicator too of supply chains, materials and of course, labor costs.

[Bloomberg Radio Host]

We've got a great guest to talk about this industry. We welcome Sean Gadd. He's President CEO of the $688 million market cap company Latham Group. The company's biggest market by revenues by far is the. But also sells in Canada, Australia, New Zealand and elsewhere. He joins us here in studio.

[Cal Penn]

Welcome, welcome.

[Bloomberg Radio Host]

Nice to have you here.

[Sean Gadd, President and CEO of Latham Group]

Great to be here. Thank you for having me.

[Bloomberg Radio Host]

Pools, they sound so simplistic. We get what they are. But tell us about your business and the different product lines.

[Sean Gadd, President and CEO of Latham Group]

Yeah, absolutely. So Latham is essentially the number one manufacturing pool manufacturer in the world. We've got scale in both fiberglass and vinyl pools. And we also sell auto covers, which is a safety device that goes over your pool, protects your investment and also protects the people around the pool and your family.

[Bloomberg Radio Co-Host]

Biggest area of growth for the company right now. What is it? Not geographically, I mean, segment wise.

[Sean Gadd, President and CEO of Latham Group]

Segment wise, we essentially play. There's two parts in which a pool gets in. If someone moves into a home, empty lot, empty space, they want to put a pool in for recreation. That's the number one market. And then there's a secondary market which is single family, new construction, home builders who are using the pool to help offset the interest rates that they're buying down.

[Bloomberg Radio Co-Host]

So higher rates.

[Sean Gadd, President and CEO of Latham Group]

Yeah. So what they say is they'll come in and they'll say the standard mortgage is at 6.5%, 7%. They'll buy it down to say, 5% and then they'll put upgrades in. And one of the upgrades they'll put in is a pool.

[Bloomberg Radio Host]

All right, got it. Talk to us about the types of pools. You guys have. Something called the sandstate strategy, which in your earnings call showed double digit sales gains in fiberglass pool pools in your priority Florida market. I gotta tell you, those of us who grew up near pools with pools, whatever, I remember mostly either cement or liner pools. Tell us about fiberglass. I'm a boater and fiberglass man, that is tough stuff.

[Sean Gadd, President and CEO of Latham Group]

It is tough stuff. So Fiberglass makes up 25% of the US market. It is growing substrate that goes into pools. So it's been taking share every year.

[Bloomberg Radio Host]

So it's like a formed entity and you just drop it in.

[Sean Gadd, President and CEO of Latham Group]

Yes. Basically you dig a hole and drop it straight in. The advantages over cement, which is the number less 50% of the market in which we're going after and that happens to be in the sand states, you know, 50% share, but it takes sort of 90 days to 120 days to put in for us. Once a consumer decides I want to be in a pool within six days, we're in and out. Six days?

[Bloomberg Radio Host]

Yes, six days.

[Sean Gadd, President and CEO of Latham Group]

Six days. So tremendous advantage. And then Obviously Tim's like, wait a

[Bloomberg Radio Host]

minute, how big is my backyard?

[Sean Gadd, President and CEO of Latham Group]

No, 100%. And so. So the opportunity for Latham, the pool company is a couple of things. One, we've done very well in the Midwest, northeast and Canada, where we have vinyl is a standard vinyl liner. Pools and, and. And fiberglass. When you think about this, the southern states, the majority of the pools that go in are cement. And really it's because they haven't seen an alternative.

[Bloomberg Radio Co-Host]

But do consumers think about the actual material or do they say, I want a pool. They call a builder. The builder has the relationship with you, and that's how they get 100%.

[Sean Gadd, President and CEO of Latham Group]

The consumer engages a dealer or a builder, comes into their kitchen table, sells, sells a product. Because we're the incumbent, we're still the unknown. So essentially, we're a new product in the south. And I say new product. We've been there for a couple of years, but we are in the new. And we're spending and investing a significant amount of marketing in the southern markets on our sand State strategies. And when you think San state strategies, it's basically Florida to Southern California. But we're taking a very targeted approach on how we get there. So we're looking at neighborhoods. So right now in Florida, we're looking at neighborhoods that have a higher propensity for pools. That is price of pool, price per house, household income, age of home, and size of the lot. Once we get the right neighborhoods, we're working with dealers to go in there and position fiberglass.

[Bloomberg Radio Host]

Sean, I want to ask you. I mean, weather. I think you guys talked about this too, on the call, and I think you talked a little bit about some weather. Maybe I'm looking for my notes here, but maybe had a little bit of an impact. But I'm just. Talk to me about weather in general. Cold seasons are the start of like spring cold. Can it kill a quarter or a year for you? And at the same time, climate change, where it's getting hotter, you know, perversely, is that kind of a good thing for your business?

[Sean Gadd, President and CEO of Latham Group]

Yeah. So one, obviously we're cyclical business. Most of the pool building occurs during the spring, summer, autumn months. That's what. So it is a cyclical business. Generally, where it's cold is generally a smaller quarter. So it's not going to kill the year.

[Bloomberg Radio Host]

Yeah.

[Sean Gadd, President and CEO of Latham Group]

And when you think about that first quarter, we basically missed equivalent to one day of shipping. Okay. So it's not. It wasn't by any stretch going to impact us to that degree. What I love about going into the southern states is their season's much longer. And so when you think about where it's freezing cold in Connecticut in March, Florida and Texas and Atlanta are ready to go. So as we penetrate further into the southern markets, we'll be able to balance our business in a much more effective way.

[Bloomberg Radio Co-Host]

What's the typical cost of from soup to nuts for a pool?

[Sean Gadd, President and CEO of Latham Group]

Yeah, so the basic pool, when you think about that, the average in North America, across North America, is $95,000. But you can get into a pool anything from $70,000 and of course can go away up to 200, depending the pool you want. And what else you do when you. When you put in the pool, if you do landscaping, kitchens, et cetera, why

[Bloomberg Radio Host]

is it so expensive? It's basically dig a hole.

[Bloomberg Radio Co-Host]

Hey, if it's that easy, Carol, do it yourself.

[Bloomberg Radio Host]

No, I'm just. Is it the material cost?

[Sean Gadd, President and CEO of Latham Group]

Is it all of the above? I mean, I think in reality, during COVID material costs went up, obviously, and hasn't corrected. Labor definitely went up and hasn't corrected. We do a lot of the labor in our factories. It's the advantage of being a fiberglass pool.

[Bloomberg Radio Host]

So is everything done in the U.S.

[Sean Gadd, President and CEO of Latham Group]

everything that's supplied to the U.S. is done in the U.S. so fiberglass. Because it's quite hard to freight to a house, you need to be close to your market, which is one of our advantages. And so when you think about that, we have control of the cost, we have control of the product, and we have control of the quality. So it gives us a great pull before we leave.

[Bloomberg Radio Host]

Just got 40 seconds. We're monitoring the president who is on the ground in Pennsylvania. You seem like the right person to ask, but the Washington Monument reflecting pool. Why the heck is there algae? Because anybody who's been around a pool, you throw chlorine, you measure things. You can fix this.

[Sean Gadd, President and CEO of Latham Group]

Yeah, 100%. So it is a water chemistry thing. I kind of wish we were asked to put in the pool because fiberglass, again, one of the advantages, it's non porous, so algae doesn't grow in it.

[Bloomberg Radio Host]

But is it just. They need chemicals predominantly.

[Sean Gadd, President and CEO of Latham Group]

It needs chemicals.

[Bloomberg Radio Host]

It's not scratches or things.

[Sean Gadd, President and CEO of Latham Group]

It should not be that.

[Bloomberg Radio Co-Host]

So it should be pretty easy to do.

[Sean Gadd, President and CEO of Latham Group]

It's relatively easy.

[Bloomberg Radio Co-Host]

Yeah, you just get the chemicals and test the water, right?

[Sean Gadd, President and CEO of Latham Group]

Yeah, you got definitely got to work on water chemistry.

[Bloomberg Radio Host]

All right, good stuff. Come back soon.

[Sean Gadd, President and CEO of Latham Group]

Will do. Love to. Thank you.

[Bloomberg Radio Host]

Really enjoyed this. Sean Gad, he's president and CEO of Latham Group, joining us right here in studio

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