Celebrating 30 years in business, Arctic Spas shares the innovations behind its industry leading position
With a portfolio of hot tubs engineered to thrive even in the world’s harshest climates, Artic Spas is transforming the industry with innovative, tech-driven solutions. Since its foundation 30 years ago in 1994, the business has earned a reputation for crafting beautiful hot tubs purpose-built for extreme weather conditions, as well as pushing industry boundaries and limits.
Arctic Spas consequently boasts a range of ‘firsts,’ having pioneered several innovations that ensure owners of hot tubs can maximize the fun and relaxation they
reap from the products. It comes as no surprise that the company’s innovations have led to numerous awards, including EY Entrepreneur of the Year in 2019.
Dennis Kellner, President and co-owner, sits down with Manufacturing Today to discuss the evolution of Arctic Spas and why its people are to thank for the company’s success. “My partners, Darcy Amendt and Brent Macklin, and I took over operations in 1997, just three years after the foundation of Arctic Spas,” Dennis opens. “We had an existing relationship with the previous owner as we had backgrounds in the retail industry and had already been buying and selling Arctic Spas products.
“Although we didn’t have direct manufacturing experience, we were asked to take over operations and at the time, manufacturing was regional with around 900 hot tubs produced each year. Darcy, Brent, and I were young and full of energy, so following a seamless transition of ownership, we set about expanding the business with a network of great dealers and distributors on board.
“Arctic Spas already had good brand awareness,” he continues. “Our mission is to reduce operating costs through better insulation and considering where we are in the world (Northern Alberta, Canada), we must ensure that our products are not only reliable and high-quality, but also have reasonable, manageable operating costs. Rather than wanting to be the biggest player in the industry, we want to be the best: best product quality, best customer service, and best innovation.”
Dennis, Brent, and Darcy subsequently grew the business exponentially, particularly during the five years that followed the change in ownership, when the business ranked in the top 100 fastest growing companies in Canada. “Our strategic network of quality dealers alongside stores of our own was crucial to our early success,” Dennis reflects. “This model meant we could receive feedback directly from our customers, meaning we could adjust accordingly to make the product more user friendly.
“We recognize that many of our customers are investing in a product that they may not know much about, so we try to simplify the purchasing, installation, and maintenance processes to deliver great customer experiences. We believe that determining your own destiny is important. We’ve grown our retail network over the last 15 years, and we now have 15 of our own stores across North America and five in the UK.
“Our products range from small introductory ranges at the most affordable end of the spectrum, up to high-end hot tubs and swim spas or what we call all-weather pools. However, it’s important to us that our more basic product lines boast the structure and quality we have become known for. We’re about to announce a new affordable product line that offers all the important aspects including low running costs due to improved insulation.
“We’ve also introduced a new all-weather pool to our portfolio, which has comfortable seating in the hot tub end while still allowing use of the pool and exercise area,” he reveals. “That’s the great benefit of all-weather pools; they can be used as a family swimming pool in warmer months, as a hot tub in colder months, and for exercise all year round.”
Dennis is keen to highlight how the team behind Arctic Spas’ operations are the reason why the company has earned such a positive reputation for service and product development. “Our biggest asset is our people, and I don’t think enough businesses appreciate their people as much as they should,” he states. “We respect and understand our employees, and the entire team genuinely care about the quality of our products.”
While many businesses in the industry are struggling with labor shortages, Arctic Spas is facing less of a challenge. “Labor is a problem for many businesses as competition is rife, but our culture of valuing each individual is attractive for many people,” Dennis explains. “We strive to create career opportunities, which keeps people engaged and positive in their role. We’re constantly handing out long service awards, for instance, which speaks to our commitments to both people and culture.
“We have an excellent research and development team that is often at the forefront of industry innovations. We were the first in the sector to implement a fiberglass floor, for instance, as well as the first to have perimeter heat lock insulation.
“More recently, we’re leading technological innovations by incorporating smart technology into our hot tubs with Spa Boy®, our exclusive water maintenance app. This revolutionary technology enables users to maintain and monitor ideal spa water conditions, taking away the need for chemicals, manual testing, and complex water balancing processes. Through the mobile app, we’re not only offering an enhanced user experience, but also increased operational efficiency.
“Technology plays a crucial role in our overall operations,” Dennis adds. “We’ve integrated advanced automation systems to enhance both the manufacturing process and customer experience. In our production facilities, we have state-of-the-art machinery and automation to ensure precise efficiency and consistent product quality while streamlining our operations, which also reduces waste and improves our sustainability credentials.”
As our conversation turns to the future, Dennis suggests: “From a growth perspective, we’re looking at strategic markets like cold-water therapy. We’ve produced cold tubs since 2008, with some high-end clients like Manchester United Football Club and the US military using our products for cold-water therapy. We’re now trying to expand the audience by implementing cold-water therapy into hot tubs, which would enable customers in hotter climates to embrace such therapy. Creating a hot tub that sits at pool temperature in the summer but can be made hotter at night or during winter could be a game changer for us.
“I see us growing in this market, as well as expanding across North America with the potential to add five more stores to our portfolio,” he concludes. “While investments and developments are always a key aspect of our discussions, we want to sustain our current success and continue to create an environment that fosters great customer experiences.”