Economic trends are good for service industry
By Marcelle Dibrell
If the numbers are to be believed, a jump in several economic trends is sure to mean bigger business for swimming pool service and repair firms. A IBIS World Industry Report indicates that the demand for new pool construction in the U.S. will accelerate as housing starts and non-residential construction markets expand. Meanwhile, private spending on home improvements is also expected to surpass its prerecession peak in 2015 as economic growth accelerates.
The recovery in the housing construction market is also expected to continue and the rebounding employment is expected to place money in homeowners’ pockets and drive stronger investment in homes. Couple these projected trends with a recent Bloomberg report that consumer confidence is at a 10-year high mark, and it might cause even the most wary to believe that the service sector is on solid ground as we enter 2015. Richard Curtin, chief economist for the Bloomberg survey, said, “Gains in employment and incomes as well as declines in gas prices were cited by record numbers of consumers. More consumers spontaneously cited increases in their household incomes in early January than any time in the past decade…”
While the service side of the pool and spa industry fared better than most during the economic downturn of the last decade, it should be obvious that good economic times are a boon for everyone involved in the Industry. The service side will surely see enhanced profits as more homeowners become willing to spend money on the luxury of paying someone else to maintain their pool. Indeed, now may be the perfect time to consider starting a service firm. In good economic times, with knowledge of water chemistry and circulation requirements, as well as good business sense, hard-working individuals learn to operate a successful pool and spa business.
Of course, it is also essential to understand some of the legal and tax ramifications involved in operating a small business. To that end, this edition of Service Industry News is dedicated to basic profit analysis and business structure.
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