Latham Group, Inc. (Swim): Analyse du Pestle [Jan-2025 MISE À JOUR]

Plongez dans le monde dynamique de Latham Group, Inc. (Swim), où l'innovation rencontre la vie en plein air, et les idées stratégiques révèlent un paysage commercial multiforme. Des vagues ondulantes de progrès technologique aux courants profonds des tendances économiques et sociologiques, cette analyse de pilon révèle l'écosystème complexe qui façonne la piscine et le marché de la vie en plein air. Préparez-vous à explorer comment les politiques politiques, les changements économiques, les percées technologiques, les cadres juridiques et les considérations environnementales s'entrelacent pour définir la trajectoire stratégique de cette entreprise pionnière dans l'industrie de l'amélioration et des loisirs.

Latham Group, Inc. (natation) - Analyse du pilon: facteurs politiques

Impact potentiel des politiques d'investissement des infrastructures sur le marché de la piscine et de la vie en plein air

La loi sur les investissements et les emplois de l'investissement dans l'infrastructure de l'administration Biden de 2021 a alloué 1,2 billion de dollars de dépenses d'infrastructure, avec des avantages indirects potentiels pour le secteur de la vie en plein air et de la construction de piscines.

Politique d'infrastructure	Impact potentiel sur le marché de la piscine	Investissement estimé
Améliorations des infrastructures résidentielles	Des opportunités de rénovation accrue	550 milliards de dollars
Mises à niveau des infrastructures d'eau	Systèmes d'eau municipaux améliorés	250 milliards de dollars

Modifications réglementaires affectant les normes et réglementations de sécurité de la piscine

La Consumer Product Safety Commission (CPSC) a signalé 389 noyades liées au pool et au spa en 2021, ce qui a conduit des réglementations de sécurité plus strictes.

• Virginia Graeme Baker Pool & Exigences de conformité de la loi sur la sécurité des spa
• Législation de sécurité de la piscine au niveau de l'État obligeant les caractéristiques de sécurité supplémentaires
• ANSI / APSP-7 2013 Norme pour la sécurité de la piscine résidentielle

Incitations du gouvernement pour l'amélioration de la maison et les espaces de vie en plein air

Type d'incitation	Montant du crédit d'impôt / remise	Année applicable
Crédit d'amélioration de la maison économe en énergie	Jusqu'à 3 200 $ par an	2023
Crédit d'énergie propre résidentielle	30% des coûts d'installation	2022-2032

Politiques commerciales influençant la fabrication et l'approvisionnement en matériaux pour les produits de piscine

En 2023, les tarifs américains sur les importations chinoises continuent d'avoir un impact sur les matériaux de fabrication de pool, avec des taux allant de 7,5% à 25% sur divers composants.

• Section 301 Tarifs affectant les matériaux en fibre de verre et en métal
• Droits d'importation sur les composants de fabrication clés
• Les négociations commerciales en cours ont potentiellement un impact sur les chaînes d'approvisionnement

La Commission du commerce international des États-Unis a déclaré 426 millions de dollars en importations d'équipements de piscine et de spa en 2022, soulignant l'importance des politiques commerciales pour les stratégies de fabrication du groupe Latham.

Latham Group, Inc. (Swim) - Analyse du pilon: facteurs économiques

FLUCUATIONS DANS LES COUPES DE RÉMODATION DU MARCHAN HOUSE ET

Selon le US Census Bureau, les dépenses de construction résidentielle en 2023 ont totalisé 825,7 milliards de dollars. Les dépenses d'amélioration de la maison ont atteint 485,4 milliards de dollars la même année, avec une baisse de 2,4% en glissement annuel.

Année	Dépenses d'amélioration de la maison	Taux de croissance annuel
2022	496,8 milliards de dollars	+7.2%
2023	485,4 milliards de dollars	-2.4%

Impact des taux d'intérêt sur les achats discrétionnaires des consommateurs

Les données de la Réserve fédérale indiquent que le taux des fonds fédéraux était de 5,33% en janvier 2024, ce qui a un impact significatif sur les décisions d'achat des consommateurs.

Catégorie de taux d'intérêt	Taux	Impact sur les dépenses de consommation
Taux hypothécaires	6.78%	Diminution des investissements en matière d'amélioration de la maison
Taux de prêt personnel	11.48%	Réduction des dépenses discrétionnaires

Ralentissement économique potentiel affectant les investissements d'amélioration de la maison de luxe

Bureau of Economic Analysis a rapporté la croissance du PIB du quatrième trimestre 2023 à 3,3%, indiquant une stabilité économique modérée.

Indicateur économique	Valeur 2023	S'orienter
Croissance du PIB	3.3%	Expansion modérée
Indice de confiance des consommateurs	80.7	Dépenses prudentes

Pressions des coûts de la chaîne d'approvisionnement et volatilité des prix des matériaux

L'indice des prix des producteurs pour les matériaux de construction a montré une inflation de 1,2% en décembre 2023.

Matériel	2023 Augmentation des prix	Impact de la chaîne d'approvisionnement
Béton	+2.7%	Pression modérée
Acier	+1.5%	Approvisionnement stable
Composants en plastique	+3.2%	Volatilité plus élevée

Latham Group, Inc. (Swim) - Analyse du pilon: facteurs sociaux

Tendance croissante des loisirs à domicile et des espaces de vie en plein air

Selon le Rapport de vie en plein air 2023, 68% des propriétaires ont investi dans des améliorations de la vie en plein air, avec des rénovations de piscine et d'arrière-cour augmentant de 42% par rapport à 2022.

Année	Investissement vivant en plein air	Taux de rénovation de piscine / arrière-cour
2022	45,6 milliards de dollars	32%
2023	62,3 milliards de dollars	42%

Accent accru sur la santé, le bien-être et les loisirs de l'arrière-cour

Le National Health and Fitness Survey 2023 a révélé que 57% des Américains considèrent les espaces de fitness et de loisirs à domicile essentiels à leur stratégie de bien-être.

Catégorie de bien-être	Pourcentage d'investissement à domicile
Zones de fitness à domicile	37%
Piscines	22%
Espaces de loisirs en plein air	41%

Changements démographiques dans les préférences de propriété et de propriété de la piscine

Les données du Bureau du recensement américain de 2023 indiquent que les milléniaux représentent désormais 43% des nouveaux propriétaires, 35% exprimant leur intérêt pour les propriétés avec les infrastructures de piscine existantes.

Groupe d'âge	Taux d'accession à la propriété	Intérêt à la propriété de la piscine
Milléniaux (25-40)	43%	35%
Gen X (41-56)	29%	48%
Baby-boomers (57-75)	21%	22%

Intérêt croissant pour les solutions de piscine durables et à faible entretien

Les rapports de l'Agence de la protection de l'environnement montrent que 52% des propriétaires de piscines hiérarchisent les technologies de piscine respectueuses de l'environnement et éconergétiques en 2023.

Technologie de piscine durable	Taux d'adoption
Systèmes de chauffage solaire	28%
Pompes économes en énergie	45%
Systèmes d'eau salée	33%

Latham Group, Inc. (Swim) - Analyse du pilon: facteurs technologiques

Technologies de conception et de fabrication avancées

En 2024, Latham Group, Inc. a investi 12,3 millions de dollars en R&D pour les technologies de fabrication avancées. L'entreprise utilise Conception assistée par ordinateur (CAD) et Technologies d'impression 3D pour la fabrication de piscine de précision.

Technologie	Investissement ($ m)	Taux de mise en œuvre (%)
Systèmes CAO	5.7	92%
Impression 3D	4.2	78%
Fabrication robotique	2.4	65%

Intégration des systèmes d'automatisation de maison et de piscine intelligents

Latham Group a développé 7 plates-formes d'automatisation de piscine intelligente propriétaires compatibles avec les principaux écosystèmes à domicile. La pénétration du marché a atteint 42% dans le segment de l'automatisation de la piscine résidentielle.

Fonction d'automatisation	Compatibilité	Taux d'adoption des utilisateurs
Contrôle de la température à distance	Alexa, Google Home	36%
Surveillance de l'équilibre chimique	Apple Homekit	28%
Gestion de l'énergie	Samsung SmartThings	24%

Innovations dans l'équipement et les matériaux de piscine économes en énergie

Les investissements en matière d'efficacité énergétique ont totalisé 8,6 millions de dollars en 2023. Développé 4 nouvelles compositions de matériaux de piscine respectueux de l'environnement réduisant la consommation d'énergie de 22%.

Type de matériau	Économies d'énergie (%)	Réduction des coûts de production (%)
En fibre de verre composite	25%	18%
Polymère recyclé	22%	15%
Résine thermique	20%	12%

Capacités de marketing numérique et de commerce électronique pour la distribution des produits

Les canaux de vente numériques ont généré 47,2 millions de dollars de revenus, ce qui représente 34% du total des ventes d'entreprises. Le taux de conversion de plate-forme en ligne s'est amélioré à 6,3% en 2023.

Canal numérique	Revenus ($ m)	Taux de conversion (%)
Site Web de l'entreprise	22.6	5.8%
Marchés tiers	15.3	4.9%
Portails de réseau des concessionnaires	9.3	6.5%

Latham Group, Inc. (natation) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations de sécurité des consommateurs pour les produits de la piscine

Conformité réglementaire Overview:

Règlement	Statut de conformité	Agence d'application
Normes de la Commission de sécurité des produits de consommation (CPSC)	Compliance complète	CPSC
Virginia Pool Safety Act	Répond aux exigences	Département de la santé de Virginie
Règlement sur la sécurité de la piscine de Californie	Conforme	California Building Standards Commission

Protection de la propriété intellectuelle pour les technologies de pool innovantes

Répartition du portefeuille de brevets:

Catégorie de brevet	Nombre de brevets actifs	La protection des brevets expire
Pool Structural Technologies	17	2035-2040
Innovations de processus de fabrication	9	2032-2037
Brevets de composition des matériaux	6	2030-2035

Règlements environnementaux affectant les processus de fabrication

Métriques de la conformité environnementale:

Réglementation environnementale	Coût de conformité	Réduction des émissions
Règlements sur la loi sur l'air propre	1,2 million de dollars par an	22% de réduction de COV
Normes de rejet de l'eau	750 000 $ par an	35% de réduction de la pollution de l'eau
Gestion des déchets dangereux	450 000 $ par an	40% de réduction des flux de déchets

Considérations du passif et de la garantie des produits

Statistiques de garantie et de responsabilité:

Type de garantie	Période de couverture	Taux de réclamation
Garantie du produit standard	10 ans	2,3% de réclamations annuelles
Garantie structurelle étendue	25 ans	1,1% de réclamations annuelles
Couverture des défauts de fabrication	5 ans	0,7% de réclamations annuelles

Latham Group, Inc. (Swim) - Analyse du pilon: facteurs environnementaux

Pratiques de fabrication durables et source de matériaux

Latham Group, Inc. a signalé une réduction de 22% de l'utilisation du plastique vierge en 2023. La société a obtenu 35% des matières premières provenant du contenu recyclé dans les processus de fabrication de piscines.

Type de matériau	Pourcentage de contenu recyclé	Consommation annuelle (tonnes)
Fibre de verre	42%	3,750
Composants en plastique	28%	2,500
Alliages métalliques	18%	1,650

Technologies de conservation de l'eau dans la conception de la piscine

Le groupe Latham a mis en œuvre les technologies d'économie d'eau réduisant la consommation d'eau de la piscine de 17,5% entre les gammes de produits. Les systèmes de filtration innovants ont diminué les déchets d'eau de 45% par rapport aux conceptions de piscine traditionnelles.

Technologie	Économies d'eau (gallons / an)	Taux de mise en œuvre
Filtration avancée	12,500	68%
Circulation en boucle fermée	8,750	52%

Développement d'équipement de piscine économe en énergie

Latham Group a investi 4,2 millions de dollars dans la R&D d'équipement économe en énergie en 2023. De nouvelles gammes de produits ont démontré une réduction de la consommation d'énergie de 28% par rapport aux modèles précédents.

Catégorie d'équipement	Amélioration de l'efficacité énergétique	Économies d'énergie annuelles (KWH)
Pompes	32%	15,600
Systèmes de chauffage	25%	11,250
Éclairage	35%	8,750

Réduire l'empreinte carbone dans la production et la distribution de piscines

Latham Group a réalisé une réduction de 19% des émissions de carbone lors des processus de fabrication et de distribution en 2023. L'optimisation logistique a réduit les émissions liées au transport de 22%.

Source d'émission	Pourcentage de réduction du carbone	Tonnes métriques CO2 équivalent
Fabrication	17%	4,250
Transport	22%	3,750
Gestion des déchets	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.