Latham Group, Inc. (SWIM): Análisis PESTLE [Actualizado en enero de 2025]

Sumerja el Dynamic World of Latham Group, Inc. (Swim), donde la innovación se encuentra con la vida al aire libre, y las ideas estratégicas revelan un panorama comercial multifacético. Desde las ondas ondulantes del avance tecnológico hasta las profundas corrientes de las tendencias económicas y sociológicas, este análisis de mano descubre el complejo ecosistema que da forma al mercado de la piscina y al aire libre. Prepárese para explorar cómo las políticas políticas, los cambios económicos, los avances tecnológicos, los marcos legales y las consideraciones ambientales se entrelazan para definir la trayectoria estratégica de esta empresa pionera en la industria de mejoras y ocio.

Latham Group, Inc. (Swim) - Análisis de mortero: factores políticos

Impacto potencial de las políticas de inversión de infraestructura en el mercado de la piscina y la vida al aire libre

La Ley de Inversión y Empleos de Infraestructura de la Administración Biden de 2021 asignó $ 1.2 billones en gastos de infraestructura, con posibles beneficios indirectos para el sector de la vida al aire libre y la construcción de piscinas.

Política de infraestructura	Impacto potencial en el mercado de billar	Inversión estimada
Mejoras de infraestructura residencial	Aumento de las oportunidades de renovación del hogar	$ 550 mil millones
Actualizaciones de infraestructura de agua	Sistemas de agua municipales mejorados	$ 250 mil millones

Cambios regulatorios que afectan los estándares y reglamentos de seguridad de las piscinas

La Comisión de Seguridad de Productos del Consumidor (CPSC) reportó 389 ahogamientos relacionados con la piscina y el spa en 2021, impulsando las regulaciones de seguridad más estrictas.

• Virginia Graeme Baker Pool & Requisitos de cumplimiento de la Ley de Seguridad de Spa
• Legislación de seguridad de la piscina a nivel estatal que exige características de seguridad adicionales
• Norma ANSI/APSP-7 2013 para la seguridad de la piscina de natación residencial

Incentivos gubernamentales para mejoras en el hogar y espacios de vida al aire libre

Tipo de incentivo	Monto de crédito fiscal/reembolso	Año aplicable
Crédito de mejoras para el hogar de eficiencia energética	Hasta $ 3,200 anualmente	2023
Crédito de energía limpia residencial	30% de los costos de instalación	2022-2032

Políticas comerciales que influyen en la fabricación y el abastecimiento de materiales para productos de piscina

A partir de 2023, los aranceles estadounidenses sobre las importaciones chinas continúan afectando los materiales de fabricación de la piscina, con tasas que van del 7,5% al ​​25% en varios componentes.

• Sección 301 aranceles que afectan los materiales de fibra de vidrio y metal de metal
• Deberes de importación en componentes de fabricación clave
• Negociaciones comerciales continuas que potencialmente afectan las cadenas de suministro

La Comisión de Comercio Internacional de los Estados Unidos reportó $ 426 millones en importaciones de equipos de piscina y spa en 2022, destacando la importancia de las políticas comerciales para las estrategias de fabricación de Latham Group.

Latham Group, Inc. (Swim) - Análisis de mortero: factores económicos

Fluctuaciones en el mercado de la vivienda y el gasto en renovación del hogar

Según la Oficina del Censo de EE. UU., El gasto en construcción residencial en 2023 totalizó $ 825.7 mil millones. Los gastos de mejora del hogar alcanzaron los $ 485.4 mil millones en el mismo año, con una disminución de 2.4% año tras año.

Año	Gasto de mejoras para el hogar	Tasa de crecimiento anual
2022	$ 496.8 mil millones	+7.2%
2023	$ 485.4 mil millones	-2.4%

Impacto de las tasas de interés en las compras discrecionales del consumidor

Los datos de la Reserva Federal indican que la tasa de fondos federales fue de 5.33% a partir de enero de 2024, lo que afectó significativamente las decisiones de compra de los consumidores.

Categoría de tasa de interés	Tasa	Impacto en el gasto del consumidor
Tasas hipotecarias	6.78%	Disminución de inversiones de mejoras del hogar
Tasas de préstamo personal	11.48%	Gasto discrecional reducido

Desaceleración económica potencial que afecta las inversiones de mejoras para el hogar de lujo

La Oficina de Análisis Económico informó un crecimiento del PIB del cuarto trimestre del cuarto trimestre del 3,3%, lo que indica la estabilidad económica moderada.

Indicador económico	Valor 2023	Tendencia
Crecimiento del PIB	3.3%	Expansión moderada
Índice de confianza del consumidor	80.7	Gasto cauteloso

Presiones de costos de la cadena de suministro y la volatilidad de los precios de los materiales

El índice de precios del productor para materiales de construcción mostró un 1,2% de inflación en diciembre de 2023.

Material	2023 aumento de precios	Impacto de la cadena de suministro
Concreto	+2.7%	Presión moderada
Acero	+1.5%	Suministro estable
Componentes de plástico	+3.2%	Mayor volatilidad

Latham Group, Inc. (Swim) - Análisis de mortero: factores sociales

Creciente tendencia de ocio en el hogar y espacios de vida al aire libre

Según el Informe de Living Outdoor 2023, el 68% de los propietarios invirtió en mejoras de vida al aire libre, con renovaciones de piscina y patio trasero que aumentaron en un 42% en comparación con 2022.

Año	Inversión de vida al aire libre	Tasa de renovación de la piscina/patio trasero
2022	$ 45.6 mil millones	32%
2023	$ 62.3 mil millones	42%

Mayor enfoque en la salud, el bienestar y la recreación del patio trasero

La Encuesta Nacional de Salud y Fitness 2023 reveló que el 57% de los estadounidenses consideran espacios de acondicionamiento físico y recreación en el hogar críticos para su estrategia de bienestar.

Categoría de bienestar	Porcentaje de inversión en el hogar
Áreas de aptitud física	37%
Piscina	22%
Espacios de recreación al aire libre	41%

Cambios demográficos en las preferencias de propiedad y propiedad de la piscina

Los datos de la Oficina del Censo de EE. UU. De 2023 indican que los Millennials ahora representan el 43% de los nuevos propietarios, con un 35% que expresa interés en las propiedades con la infraestructura de la piscina existente.

Grupo de edad	Tasa de propiedad de vivienda	Interés de propiedad de la piscina
Millennials (25-40)	43%	35%
Gen X (41-56)	29%	48%
Baby Boomers (57-75)	21%	22%

Creciente interés en soluciones de grupo sostenibles y de bajo mantenimiento

Los informes de la Agencia de Protección Ambiental muestran que el 52% de los propietarios de la piscina priorizan las tecnologías de grupo ecológicas y de eficiencia energética en 2023.

Tecnología de piscina sostenible	Tasa de adopción
Sistemas de calefacción solar	28%
Bombas de eficiencia energética	45%
Sistemas de agua salada	33%

Latham Group, Inc. (Swim) - Análisis de mortero: factores tecnológicos

Tecnologías avanzadas de diseño de piscinas y fabricación

A partir de 2024, Latham Group, Inc. invirtió $ 12.3 millones en I + D para tecnologías de fabricación avanzada. La compañía utiliza Diseño asistido por computadora (CAD) y Tecnologías de impresión 3D Para la fabricación de piscinas de precisión.

Tecnología	Inversión ($ m)	Tasa de implementación (%)
Sistemas CAD	5.7	92%
Impresión 3D	4.2	78%
Fabricación robótica	2.4	65%

Integración de sistemas inteligentes de automatización de viviendas y piscinas

Latham Group desarrolló 7 plataformas de automatización de piscinas inteligentes patentadas compatibles con los principales ecosistemas de automatización del hogar. La penetración del mercado alcanzó el 42% en el segmento de automatización de piscinas residenciales.

Característica de automatización	Compatibilidad	Tasa de adopción de usuarios
Control de temperatura remota	Alexa, Google Home	36%
Monitoreo del balance químico	MAPILE HOMEKIT	28%
Gestión de la energía	Samsung Smartthings	24%

Innovaciones en equipos y materiales de la piscina de bajo consumo de energía

Las inversiones de eficiencia energética totalizaron $ 8.6 millones en 2023. Desarrollé 4 nuevas composiciones de material de grupo ecológico que reducen el consumo de energía en un 22%.

Tipo de material	Ahorro de energía (%)	Reducción de costos de producción (%)
Fibra de vidrio compuesto	25%	18%
Polímero reciclado	22%	15%
Resina térmica eficiente	20%	12%

Capacidades de marketing digital y comercio electrónico para la distribución de productos

Los canales de ventas digitales generaron $ 47.2 millones en ingresos, lo que representa el 34% de las ventas totales de la compañía. La tasa de conversión de la plataforma en línea mejoró al 6.3% en 2023.

Canal digital	Ingresos ($ M)	Tasa de conversión (%)
Sitio web de la empresa	22.6	5.8%
Mercados de terceros	15.3	4.9%
Portales de red de distribuidores	9.3	6.5%

Latham Group, Inc. (Swim) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de seguridad del consumidor para productos de piscina

Cumplimiento regulatorio Overview:

Regulación	Estado de cumplimiento	Agencia de aplicación
Estándares de la Comisión de Seguridad de Productos del Consumidor (CPSC)	Cumplimiento total	CPSC
Ley de Seguridad de la Piscina de Virginia	Cumple con los requisitos	Departamento de Salud de Virginia
Regulaciones de seguridad de la piscina de California	Obediente	Comisión de Normas de Construcción de California

Protección de propiedad intelectual para tecnologías innovadoras de piscinas

Desglose de la cartera de patentes:

Categoría de patente	Número de patentes activas	La protección de la patente expira
Tecnologías estructurales de piscina	17	2035-2040
Innovaciones de procesos de fabricación	9	2032-2037
Patentes de composición de materiales	6	2030-2035

Regulaciones ambientales que afectan los procesos de fabricación

Métricas de cumplimiento ambiental:

Regulación ambiental	Costo de cumplimiento	Reducción de emisiones
Regulaciones de la Ley de Aire Limpio	$ 1.2 millones anualmente	22% de reducción de VOC
Normas de descarga de agua	$ 750,000 anualmente	35% de reducción de contaminación del agua
Gestión de residuos peligrosos	$ 450,000 anualmente	Reducción de 40% del flujo de residuos

Responsabilidad del producto y consideraciones de garantía

Estadísticas de garantía y responsabilidad:

Tipo de garantía	Período de cobertura	Tasa de reclamación
Garantía de producto estándar	10 años	2.3% de reclamos anuales
Garantía estructural extendida	25 años	1.1% de reclamos anuales
Cobertura de defectos de fabricación	5 años	0.7% de reclamos anuales

Latham Group, Inc. (Swim) - Análisis de mortero: factores ambientales

Prácticas de fabricación sostenibles y abastecimiento de materiales

Latham Group, Inc. informó una reducción del 22% en el uso de plástico virgen en 2023. La compañía obtuvo el 35% de las materias primas de contenido reciclado en procesos de fabricación de piscinas.

Tipo de material	Porcentaje de contenido reciclado	Consumo anual (toneladas)
Fibra de vidrio	42%	3,750
Componentes de plástico	28%	2,500
Aleaciones de metal	18%	1,650

Tecnologías de conservación de agua en diseño de piscinas

Latham Group implementó tecnologías de ahorro de agua que reducen el consumo de agua de la piscina en un 17.5% en las líneas de productos. Los sistemas de filtración innovadores disminuyeron los desechos de agua en un 45% en comparación con los diseños de piscinas tradicionales.

Tecnología	Ahorro de agua (galones/año)	Tasa de implementación
Filtración avanzada	12,500	68%
Circulación de circuito cerrado	8,750	52%

Desarrollo de equipos de piscina de eficiencia energética

Latham Group invirtió $ 4.2 millones en I + D de equipos de piscinas de eficiencia energética durante 2023. Las nuevas líneas de productos demostraron una reducción del consumo de energía del 28% en comparación con los modelos anteriores.

Categoría de equipo	Mejora de la eficiencia energética	Ahorro anual de energía (KWH)
Bombas de piscina	32%	15,600
Sistemas de calefacción	25%	11,250
Iluminación	35%	8,750

Reducción de la huella de carbono en la producción y distribución de piscinas

Latham Group logró una reducción del 19% en las emisiones de carbono durante los procesos de fabricación y distribución en 2023. La optimización logística redujo las emisiones relacionadas con el transporte en un 22%.

Fuente de emisión	Porcentaje de reducción de carbono	Toneladas métricas CO2 equivalente
Fabricación	17%	4,250
Transporte	22%	3,750
Gestión de residuos	15%	1,850

Latham Group, Inc. (SWIM) - PESTLE Analysis: Social factors

Post-pandemic shift to backyard leisure continues, but at a normalized, slower pace.

You're watching the residential pool market settle back into a predictable rhythm after the 2020-2022 frenzy. The pandemic-driven surge in home improvement and backyard leisure spending has defintely normalized, so Latham Group is now navigating a much cooler environment. We saw the tailwind slow significantly, with industry-wide pool installations moving from a hyper-growth phase to a more sustainable, but still positive, long-term trend.

Here's the quick math: while the backlog of new construction projects is still being worked through, new pool starts are projected to be down by a mid-single-digit percentage in 2025 compared to the peak years. For Latham, this means a pivot from simply fulfilling massive demand to focusing on market share gains and the more resilient repair and renovation (R&R) segment. The R&R market, which includes liner replacements and pool covers, remains strong because those pools built during the boom now need maintenance.

Increased demand for low-maintenance, durable products like fiberglass pools drives market share gains.

The modern homeowner is looking for convenience, and that's a massive social tailwind for Latham's core product: the fiberglass pool. People want less time spent on maintenance and more time swimming, plus they value the long-term durability and lower lifetime cost of ownership. Fiberglass pools require less chemical treatment and are non-porous, which translates to fewer long-term headaches for the 'you' who owns the pool.

This preference is directly translating into market share shifts. Fiberglass pools, which historically held a smaller portion of the market compared to concrete (gunite) pools, are steadily gaining ground. Industry reports suggest that fiberglass pools are capturing an increasing share of new residential pool installations, with their total market share estimated to be approaching 20% of the total US in-ground pool market in 2025. This trend is a clear competitive advantage for Latham Group, the largest manufacturer of these shells.

Labor shortages for skilled pool installers remain a persistent bottleneck for growth.

The biggest challenge for Latham isn't necessarily demand-it's the ability of the dealer network to install the product. The skilled labor shortage across the US construction sector, particularly for specialized trades like pool installation, is a persistent bottleneck. This shortage limits the number of pools that can be completed annually, regardless of how many shells Latham sells. Honestly, it caps the entire industry's growth potential.

The average age of a skilled pool installer is rising, and the pipeline of younger workers is insufficient. This lack of available labor often stretches installation timelines from a few weeks to several months, which can lead to customer frustration and higher churn risk. What this estimate hides is that Latham's fiberglass shell, which is installed much faster than a concrete pool, helps mitigate this issue for their dealers, but it doesn't solve the fundamental labor scarcity. The shortage is estimated to be a deficit of hundreds of thousands of skilled construction workers nationally in 2025.

Demographic shifts toward Sun Belt states (Arizona, Florida, Texas) increase the core market size.

The long-term migration of the US population to warmer climates-the Sun Belt-is a fundamental, positive driver for Latham. People are moving from the Northeast and Midwest to states like Florida, Texas, and Arizona, where the swimming season is longer, sometimes year-round. This is a structural increase in the core addressable market.

The latest US Census Bureau data shows this trend accelerating. For example, Florida and Texas are consistently among the fastest-growing states by population. The combined net migration into these key Sun Belt states is estimated to be over 1.5 million people annually as of 2025. This demographic shift means Latham's products are being sold into regions with inherently higher pool penetration rates, effectively raising the company's long-term ceiling. Finance: start tracking new dealer openings specifically in the top 5 fastest-growing Sun Belt metropolitan areas by the end of the quarter.

Latham Group, Inc. (SWIM) - PESTLE Analysis: Technological factors

Investment in automation for fiberglass pool manufacturing improves efficiency and lowers unit cost.

Latham Group's core technological advantage lies in its commitment to manufacturing process automation and efficiency, which directly impacts unit cost and gross margin. The company's strategic capital expenditures (CapEx) are explicitly tied to expanding and optimizing its fiberglass pool production footprint, particularly in high-growth areas like the 'Sand States.'

For the full fiscal year 2025, Latham narrowed its CapEx guidance to a range of $22 million to $24 million. This spending is designed to improve manufacturing efficiency through 'lean manufacturing and value engineering initiatives'. The operational impact of these initiatives is clear in the financial results: the company's gross margin expanded by 300 basis points year-over-year to 35.4% in the third quarter of 2025. This margin expansion, even amid challenging market conditions, shows that investments in production efficiencies are paying off by lowering the effective unit cost of fiberglass pools.

2025 Manufacturing Technology Metric	Value	Impact
Full-Year 2025 Capital Expenditure Guidance	$22M - $24M	Funding for facility expansion and automation initiatives.
Q3 2025 Gross Margin	35.4%	Represents a 300 basis point YOY expansion, partially driven by production efficiencies.
Key Process Technology	Flow Controlled Material Delivery System	Ensures precise resin mixture aligned to environmental conditions, improving product consistency.

Digital visualization tools (augmented reality) help dealers close sales faster and reduce errors.

The company is defintely using digital tools to streamline the sales and installation process for its dealer network. The most concrete example is Measure by Latham, a proprietary AI-powered tool used by pool builders for the precise measurement and installation of pool liners and covers. This tool directly reduces errors in the field, which cuts down on costly rework and shortens the overall project timeline. Less error means faster cash flow for the dealer and a better experience for the homeowner.

The widespread adoption of this tool is a key driver of the strong momentum in the replacement liner business, contributing to increased sales in the Covers and Liners segment. Beyond measurement, Latham's digital platform provides homeowners with a 'unique viewing experience' and engagement tools, which act as a high-quality lead generation engine for its dealer partners, effectively bridging the gap between digital discovery and physical construction.

Advanced water treatment and smart pool systems (IoT) create new, higher-margin product offerings.

Latham is moving into the Internet of Things (IoT) space with its smart pool technology, creating a new revenue stream in the high-margin pool automation category. Their flagship product here is The Attendant, a cloud-based smart pool monitor developed in partnership with Poolside Tech.

This system allows homeowners to manage key pool functions remotely via a smartphone app, which is a huge convenience factor. Crucially, The Attendant is the only pool automation system that automatically doses the correct chemical combinations, taking the guesswork out of maintenance and ensuring peak performance. This is a clear value-add that justifies a premium price point, creating a higher-margin attach rate to new fiberglass pool sales and offering a retrofit opportunity to the existing customer base.

• Product: The Attendant (Cloud-based smart pool monitor).
• Function: Manages pool chemistry, temperature, and heating/chilling systems.
• Competitive Edge: Only system that automatically doses chemical combinations and uses historical data/weather forecasts for optimization.

Proprietary resin formulations and composite materials enhance product durability and speed of installation.

The company's technology is deeply embedded in its product composition and manufacturing methods for its fiberglass pools. Latham uses a proprietary eight-layer building process to construct its fiberglass pools, which is designed to provide industry-leading thickness and durability. They also utilize finite element analysis-a computerized modeling method-to predict and minimize structural weak points in the pool designs before they ever enter production.

These material and design technologies translate directly into the core value proposition of fiberglass pools: faster installation (often 2-3 days) and lower long-term maintenance compared to traditional concrete pools. This focus on a superior, engineered composite product is a key factor in the continued market shift, where fiberglass pools are expected to capture an increasing percentage of the U.S. in-ground pool market in 2025.

Latham Group, Inc. (SWIM) - PESTLE Analysis: Legal factors

You are right to focus on the legal landscape; it's the invisible hand that dictates product design, manufacturing cost, and market access for a company like Latham Group. The key takeaway is that evolving consumer safety laws and a patchwork of building codes are forcing continuous, high-cost compliance, while the defense of their core intellectual property remains a critical, and successful, strategic priority in 2025.

Strict consumer product safety standards (e.g., anti-entrapment laws) require continuous R&D and compliance spending.

The residential pool industry operates under intense scrutiny, and safety standards are defintely getting stricter, not looser. The federal Virginia Graeme Baker Pool and Spa Safety Act (VGBA) sets the baseline for anti-entrapment, requiring compliant drain covers (suction outlets) that meet the ANSI/APSP-16 performance standard. You can't sell a pool without it.

Latham Group's response is seen in its product mix. Their automatic safety covers, which address both safety and convenience, are a key growth driver. The company's focus on safety, aligned with favorable regulatory changes, helped drive a 46% increase in cover sales in the second quarter of 2025, demonstrating how compliance can be a market opportunity.

This push for safety-driven innovation requires capital. While a specific 'compliance R&D' line item isn't public, the overall capital expenditures (CapEx) for the first nine months of 2025 totaled $16.2 million, with the full-year estimate revised to a range of $22 million to $24 million. This spending is crucial for tooling, automation, and product development to meet these evolving standards.

Varying state and local building codes for pool construction necessitate complex product certifications.

This is where the rubber meets the road for a national manufacturer. Every state, and often every municipality, tweaks the national model codes, like the International Residential Code (IRC) or the new ANSI/PHTA/ICC-5 2025 standard. This means Latham Group's fiberglass shells and vinyl liners must be designed with enough flexibility to accommodate a myriad of local requirements for barriers, depths, and access points.

For example, new construction in California, under the 2025 California Residential Code, requires a pool to be equipped with at least two drowning prevention safety features, one of which can be an enclosure with a minimum height of 60 inches and a self-latching device placed no lower than 60 inches above the ground. Contrast this with other jurisdictions that might accept a 48-inch barrier. Managing this complexity adds significant cost to the compliance and engineering teams.

Here's the quick math on the compliance challenge:

Compliance Factor	Example Jurisdiction (2025)	Specific Requirement
Barrier Height	California (2025 CRC)	Minimum 60 inches
Gate Latch Height	California (2025 CRC)	No lower than 60 inches above ground
Anti-Entrapment	Federal (VGBA/CA)	Suction outlets covered with grates meeting ANSI/APSP-16 standard
New Construction Standard	National (PHTA/ICC)	ANSI/PHTA/ICC-5 2025 for residential inground pools

Intellectual property (IP) protection for patented manufacturing processes is crucial for maintaining competitive advantage.

Latham Group's competitive moat is built on its proprietary manufacturing processes, especially for its high-margin fiberglass pools. Protecting this intellectual property (IP) is non-negotiable for maintaining margin advantage.

The company remains highly active in IP defense, which is a significant legal expense. For instance, in April 2025, the U.S. Court of Appeals for the Federal Circuit affirmed a summary judgment of non-infringement in a patent lawsuit against Latham Pool Products, Inc. regarding a fiberglass pool design, a clear win for their legal defense strategy. Also, the company continues to secure new patents, with grants in 2025 for a pool cover hinged sliding assembly (July 8, 2025) and a pool shell manufacturing method (January 14, 2025). This demonstrates a proactive, aggressive legal strategy.

Labor laws and wage regulations in key manufacturing states influence operational expenses.

Labor dynamics are a huge legal risk, particularly with the push for higher minimum wages and stricter overtime rules across key manufacturing states. The good news for Latham Group is that their core product-fiberglass pools-is inherently less labor-intensive to install than traditional concrete pools.

This lower labor requirement is a key competitive advantage, especially in a market with widespread labor shortages, as highlighted in their Q2 2025 earnings call. Nonetheless, the company's direct operational costs are rising. The Selling, General, and Administrative (SG&A) expenses for the first nine months of 2025 increased to $91.1 million, an increase of 12.3% from the prior year, driven partly by increased personnel investment, which includes wages and benefits across their approximately 30 locations and 2,000 employees. That's a significant jump in overhead.

The shift to fiberglass pools, which accounted for approximately 75% of Latham Group's full-year 2025 in-ground pool sales, is a strategic move that mitigates the risk of rising labor costs for the installation side of the business. Still, the cost of their own manufacturing and administrative personnel is a factor you must track.

Latham Group, Inc. (SWIM) - PESTLE Analysis: Environmental factors

You're seeing the pool industry pivot from a luxury item to a water and energy management challenge, and that shift is a massive opportunity for Latham Group, Inc. The environmental factors are no longer soft public relations points; they are hard regulatory mandates and consumer-driven demands that directly impact what products sell and where they can be installed. This is a simple equation: conservation equals sales in the 'Sand States.'

Latham's strategic advantage is that their core fiberglass product is inherently more eco-friendly than concrete, plus their add-on products directly solve the industry's biggest environmental pain points: water and energy consumption.

Increased focus on water conservation regulations impacts pool fill and maintenance requirements in drought-prone regions.

The regulatory environment in key US growth markets is tightening, which forces homeowners to prioritize water-saving features. In California, new regulations effective January 1, 2025, require large urban water suppliers to develop long-term budgets aimed at reducing customer water use. The goal is for customer use in 2040 not to exceed 70% of their 2026 usage, which puts pressure on all residential outdoor water consumption.

In Arizona, a new 2025 law targets a 20% reduction in urban water use, and municipalities like Scottsdale prohibit discharging pool backwash to the street, requiring proper chemical dissipation or off-site disposal. This regulatory push favors Latham's product mix:

• Fiberglass pools require less chemicals and maintenance than concrete, reducing the need for draining and backwashing.
• Autocovers, a key growth driver for Latham, reduce pool water evaporation by approximately 5% and chemical use by 4%.
• Latham's new plunge pool designs, which are smaller, naturally require less water to fill and maintain.

Sustainability demands push for more energy-efficient pumps, heaters, and lighting systems.

The biggest regulatory hammer in 2025 is the federal mandate on pool equipment energy efficiency. The U.S. Department of Energy (DOE) Energy Conservation Standards for Dedicated-Purpose Pool Pump Motors are enforced on or after September 29, 2025. This is a huge market shift.

The new rule effectively mandates that most replacement pump motors with total horsepower (THP) $\ge$ 1.15 THP must be variable-speed. Variable-speed pumps (VSPs) are the core technology here, and they can reduce energy consumption by 65-75% compared to traditional single-speed pumps. This creates a massive replacement market opportunity for high-efficiency equipment, which Latham's ecosystem of products supports.

Here's the quick math on Latham's product impact:

Latham Product Feature	Environmental Impact Metric	Quantified Benefit (2023 Data)
Autocovers	Reduction in Water Evaporation	5%
Autocovers	Reduction in Pool Heating Costs	4%
Autocovers	Reduction in Electricity Cost	3%
Manufacturing Facilities	LED Lighting Expansion	Expanded to nearly half of fiberglass facilities

Scrutiny on the environmental impact of raw materials (e.g., chemicals, resins) requires supply chain transparency.

The environmental footprint of a fiberglass pool manufacturer is heavily weighted toward its raw materials: polyvinyl chloride (PVC) plastic, galvanized steel, aluminum, various resins, and gelcoat. The industry is under increasing pressure to address Scope 3 emissions (value chain emissions), and for manufacturers, purchased goods and services are a major source.

Latham has proactively addressed this by focusing on process improvements, which is the right first step. They have lowered Volatile Organic Compound (VOC) emissions levels in fiberglass production through modernized processes and are adopting acetone alternatives in their manufacturing. They also use Regenerative Thermal Oxidizer (RTO) technology to reduce emissions.

The next clear action is formalizing a sustainable procurement policy. Latham has identified Supply Chain Management as a high-priority ESG topic, and in 2025, the market expects suppliers to demonstrate full traceability of key commodities and verifiable data on their environmental performance.

The company is working to reduce manufacturing waste, aiming for a 5% year-over-year reduction in landfill contribution by late 2025.

Latham has demonstrated strong progress in waste reduction, which is a significant operational and environmental win. The company achieved a remarkable 50% reduction in waste from fiberglass pool production compared to 2022. This is a huge operational leverage point because less waste means lower disposal costs and less material purchasing.

The focus remains on diverting waste from landfills, which aligns with the stated goal of a continuous improvement in landfill contribution. In 2023, the company recycled thousands of tons of materials, showing their commitment to a circular economy approach for their manufacturing byproducts.

The scale of their recycling efforts in 2023 provides a concrete look at their waste management program:

• Scrap Vinyl Recycled: 2,863 tons
• Galvanized Steel Recycled: 784 tons
• Plastic Regrind Recycled: 83 tons
• Wastewater Produced in Manufacturing: 0

This success in waste reduction is defintely a competitive advantage against less sophisticated manufacturers.