Pandemic boosts small family biz by 47 percent, can you guess which industry?

This Wisconsin mom-and-pop shop is breaking sales records after 56 years in business thanks to the pandemic.

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If you're assuming Norman and Mary Burkholz are in the hand sanitizer business, guess again -- they're actually the longtime owners of Pool Park, a family-owned and operated pool, hot tub, equipment, and service company based in Wisconsin. They're just the kind of small retailer you might expect to suffer in an age where the pandemic has all but destroyed local restaurants, coffee shops, dry cleaners, and other neighborhood staples. Norman and Mary, however, have actually seen their best year yet since starting their company 56 years ago in 1964.

Mary and Norman Burkholz

"We were very concerned about the stay-at-home order and what it would mean for our business," shares Mark Burkholz, the founders' son and now a co-owner and manager. "We are a small operation with only one location, and we rely on business during the summer season to sustain us throughout the year. We were really concerned we would have to close our doors right as we were entering high season. We were incredibly lucky to be deemed an essential business, though, which allowed us to remain open throughout the year."

The pool and hot tub business has been heating up since stay-at-home orders were issued around the country, and with regular swimmers being banned from their favorite public pools, spa-lovers finding themselves without their treasured favorites, and people looking for home recreation for their children. In fact, hot tub sales have been so off the charts that many popular retailers like Home Depot and Overstock found themselves back-ordered for months at a time, turning online shoppers back to small, local retail shops most in need. The New York Post is even reporting a surge in hot tub-fueled spin-off industries, like these boat rides complete with cozy soaks for friends and other COVID non-compliants.

Before the pandemic began, roughly four percent of American homes had pools, and a total of about seven percent had either a pool, outdoor hot tub, or both. Since then? Experts are expecting that number to nearly double, which is an astronomical number if you think about how quickly it rose -- especially since the Great Recession, which is still in recent memory, nearly collapsed the pool and luxury home improvement industries.

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The pool and hot tub industry has been performing at record levels since last spring, but isn't the only small business sector reporting off-the-charts success since the world shut down, and that may come as a welcome surprise to those assuming only big businesses like Walmart and Amazon benefitted. Remote working tools, equipment, and software have also gained an approximate 37 percent lead compared to last year's sales, and e-learning companies have seen an increase in users by an astonishing 1.5 billion nearly overnight. If you think that's impressive, entertainment-based companies with internet footholds (think small app development companies) have seen a 40 percent surge this year. Everyone and their brother is rushing to download the next fun bubble-popping game, word search, or flash cards-based app. Telehealth practitioners have also seen a surge in business, allowing local medical professionals to keep working and contributing to their communities without added risk. In a lot of ways, 2020 has been a small business miracle for those completely distanced from the hospitality and fashion industries, which have taken the brunt of the economic hit.

The pool industry seems to have butterflied across the country, and beyond this year. Reports of sales and service spikes have come out of Boston, typically warm climates where you might expect already plentiful pools like Los Angeles, and better-known-for-frost Michigan.

According to industry statistics, it is probably safe to say that the total latent demand for in-ground pools in the United States is between 750,000 and 3.4 million.

The Wall Street Journal reported the pandemic changed American spending habits so dramatically, that upper middle class dollars earmarked for far-flung vacations in Europe ended up being hot tub funds, and those average Americans more prone to taking a Disney trip or family cruise ended up investing in their own slices of the deep end of backyard paradise.

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"We haven't seen demand like this in more than a decade," Mark says of the boon. "We couldn't keep inventory in stock. Sales of hot tubs increased 50 percent over the last year, and our showroom floor was near emoty for most of 2020. Most of our vendors were backordered so much that at times it took weeks to get new product delivered to replenish our inventory."

"Here in Wisconsin we only get a few months of nice weather each year, so we like to make the most of it. With so much more time spent at home I think many people were looking at ways to keep themselves relaxed and entertained. Why not a pool or hot tub?"

If that seems like a blessing of a problem to have, the Burkholz family agrees, but doesn't discredit the stress the unexpected surge caused. By now, most of the backorders have been fulfilled, but the steady demand for at-home water activity and home improvement has resulted in a handful of units that are still waiting for early 2021 fulfillment. By comparison, the Upstate New York pool and hot tub market is reporting delays through mid-2022 for fulfillment of orders, especially when it comes to new swimming pools and large equipment.

"It was definitely stressful at times, but I guess you can say it was a good problem to have," Burkholz says of the unexpected uptick. "The summer consisted of many 14-hour days, but in the end, we feel lucky. So many small businesses are really struggling, if not closing permanently. My father started this business more than 50 years ago, and we've been serving this community ever since."

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