SWIMMING UPSTREAM.

Swimming pools are a growth industry for obvious reasons: It's getting hotter everywhere there are fewer municipal and neighborhood pools, and the "cocooning effect" prompts many homeowners to invest more on their cribs.

Here's a primer about the business of pools, of which North Carolina plays a key role.

(1) POOL FACTS

5.4 million

Installed in-ground residential pools in the U.S.

300,000

In-ground pools built in the U.S. from 2019-22

$6.4 billion

Global market for pool equipment.

309,000

Public swimming pools in the U.S.

10%

Average price increase of swimming pool supplies from 2022 vs. 2021

8%

Compound annual growth rate of U.S. in-ground residential pool construction, 2012-21

-25%

Expected industry decline in new and remodeled pool revenue in 2023

2.5 times

Increase in spending on equipment per new pool over the past decade

80%

Percentage of consumer spending for maintenance of existing pools

(2) HAYWARD MOVES SOUTH

Charlotte became a center of the U.S. pool industry when Hayward Holdings moved its headquarters from New Jersey to the Queen City in 2021.

The company had annual revenue averaging $1.35 billion over the past two years, doubling from 2019 as demand for pools shot up during the pandemic. That's second to Pentair among U.S. pool equipment manufacturers.

About 800 of Hayward's 2,000 employees work in Clemmons, where it makes pumps, filters and cleaners. It has other factories in Rhode Island, Tennessee, Spain and China.

Hayward's move coincided with its initial public offering, which raised $685 million, in March 2021. Shares came out at $17 and traded higher initially, but have slumped in the past 18 months as pool demand has declined. Hayward traded for about $12.50 in mid-July.

The company's principal owners are the BDT/MSD investment firm, which owns 34% of shares, and CCMP Capital Investors, with 14%, according to company filings. (Computer tycoon Michael Dell owns MSD.) Both companies are based in New York.

Hayward benefits even when new construction slows because pools require consistent maintenance." One of the unique things about pools is that the aftermarket is really important" says Hayward CEO Kevin Holleran, who joined the company in mid-2019 after...