Homebuilders who have been lucky enough to find a quality HVAC subcontractor and cultivate a good working relationship may have to face the dramatic changes that lie ahead. The key question: Can small independent HVAC contractors survive in a world where there are giants in the market? And if so, what will its role be?
Some of the nation’s largest retailers are evaluating the residential and light commercial HVAC markets as a possible target for future expansion. If they enter the market seriously, they will buy their equipment directly from manufacturers at prices well below what independent contractors pay.
On the other hand, many electric and gas utilities, looking for a way to attract and retain customers in a new environment and establish new profit centers, are already selling and servicing residential heating, cooling and space heating equipment. Water.
This trend was underlined in a recent survey; survey compiles responses from 42 utility executives, representing 25% of all residential customers in the US, and 12 HVAC equipment manufacturers, representing more than 80% of the US residential market
Their views suggest that utilities will become even more active in selling, leasing, and servicing HVAC equipment in the coming months and that cooperative marketing agreements between utilities and equipment manufacturers may become in something common.
Overview of Trends in the Residential HVAC Industry
1. Residential customers will have free access to choose their electric company …………………………….yes
2. Residential customers will pay less for electric service ………………………………. ………………………..No
3. Residential gas rates will increase…………………………………………… ……………………………………………………….. … ..No
4. Electric utility companies will sell HVAC equipment to consumers ……………………………………………. ………………………….Yes
5. Electric utility companies will lease HVAC equipment to consumers ……………………………………………. ……………………Yes
6. Electric companies will finance the purchase of HVAC equipment …………………………….. …. . ……………..Yes
7. Partnership with manufacturers/utilities will become an important marketing tool ………………………………………….. Yes
8. Partnering with national HVAC contractors will become an important marketing tool………………..yes
The way we see it, the independent HVAC contractors who are going to survive in this brave new world will be the ones who understand the entire house as a comfort system and have the ability to analyze all the factors that affect it. That means understanding how the envelope and mechanical systems interact and putting the “V” back in HVAC.
The survey also yielded some interesting insights into the future direction of energy prices. While many analysts and consumers have been predicting (or hoping?) that the price of electricity will fall thanks to deregulation, 60% of surveyed utility executives disagreed. In this sample, most believe that electricity prices will stay the same or even go up due to deregulation.