Fiberglass pools are fundamentally superior to cement pools due to a drastically shorter installation time of 6 days versus 90-120 days.
Latham Group's primary growth strategy is to convert the 50% market share currently held by cement pools to its fiberglass products.
A domestic manufacturing footprint, with facilities located close to key markets, provides a significant competitive advantage in cost, quality control, and logistics.
The 'Sand State' strategy, focusing on markets from Florida to Southern California, is crucial for future growth and for mitigating the historical seasonality of the pool business.
Despite high average costs, pools can be effectively marketed as a value-add upgrade for new homes, helping buyers absorb the impact of high mortgage interest rates.
COVID-19 Pandemic Period
According to Gadd, material and labor costs for pool installation increased significantly during this time.
Post-Pandemic Period
Gadd states that the elevated material and labor costs from the pandemic have not corrected, establishing a new, higher cost basis for the industry.
Recent Q1
Gadd reports that weather impacts caused the company to miss the equivalent of one day of shipping, highlighting a vulnerability in its domestic logistics.
2026-07
Appears on Bloomberg Businessweek podcasts to articulate Latham Group's market position, its 'Sand State' strategy, and its focus on converting the cement pool market.
▶Fiberglass Pools as a Disruptive TechnologyJun–Jul 2026
Sean Gadd consistently frames fiberglass pools as a superior, disruptive product compared to traditional cement pools. He emphasizes the dramatic difference in installation time—6 days versus 90-120 days—as the core value proposition for consumers seeking near-immediate gratification.
This focus on speed positions Latham Group not just as a product manufacturer but as a service provider catering to modern consumer expectations, potentially allowing them to command a premium and capture market share from slower, more traditional methods.
▶The 'Sand State' Growth StrategyJun–Jul 2026
Gadd outlines a clear geographic expansion plan focused on markets from Florida to Southern California. This 'Sand State' strategy is designed to tap into large, year-round pool markets to drive growth and, critically, to balance the inherent seasonality of the business.
Investors should monitor Latham's penetration in these key states (e.g., Florida, Texas, Atlanta) as a primary indicator of the strategy's success in de-seasonalizing revenue streams and achieving more predictable quarterly results.
▶Domestic Manufacturing as a Competitive MoatJun 2026
Gadd highlights that all U.S.-supplied products are made in the U.S., close to their end markets. He argues this is a strategic advantage because fiberglass pools are difficult to ship long distances, giving Latham superior cost, product, and quality control.
This localized manufacturing model insulates the company from some international supply chain risks but exposes it to regional disruptions, such as localized weather events or labor market fluctuations, as evidenced by the reported Q1 shipping miss.
▶Navigating Market Headwinds and OpportunitiesJun 2026
Gadd acknowledges that post-COVID material and labor costs remain high and have not corrected, creating a persistent headwind. Simultaneously, he identifies an opportunity with new home builders, positioning pools as an incentive to help buyers overcome the barrier of high interest rates.
This dual perspective suggests the company's success depends on its ability to manage cost pressures while executing a sophisticated sales strategy that frames a high-cost luxury item as a practical financial tool in a challenging real estate market.