What Characterizes Today’s HVAC Market?

It’s a great time to be in the HVAC business. According to Fortune Business Insights, the U.S. market is projected to grow from “41.63 billion USD in 2021 to 58.56 billion in 2028 at a compound annual growth rate of 5% during the 2021-2028 period.”

The United States Department of Energy has been investing heavily in the improvement of energy efficiency standards for sustainable development. They have also “set up a mission to tackle the environmental and energy challenges in the nation through advanced science and technology.” These efforts are expected to propel the growth of environmentally friendly HVAC systems. Therefore, green HVAC systems are what manufacturers are developing to improve the energy efficiency and cost of systems.

What contractors should incorporate into their business

Start with your technicians and how they want to communicate in the field. Many employees prefer mobile-first communication. No longer is company culture about bonuses and occasional team outings. It’s about adopting tools to make the technician’s jobs easier and making company communication more immediate. Reduce phone calls between your techs and your office and start to use up to date dispatch boards that allow dispatchers to send texts to techs in the field quickly and easily. 

Learn how to install and work with Wi-Fi enabled devices in smart homes

It’s estimated more than 14 million homes in the U.S. use smart technology devices and products. That number is only expected to go up. Smart technology including products with communicating sensors and integration of energy controls now offers the ability for HVAC systems to reduce their energy output. The American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) offers guides for HVAC contractors to follow, so they can provide customers with the best and safest service possible.

Do you currently offer a line of Wi-Fi-enabled products? Are your technicians trained to accurately install them for your customers? As technology continues to evolve, ensuring your business understands this is a must!

Go green and make more green

More consumers are becoming aware and concerned about the environmental impact of the products and services they buy. They may often be willing to pay more for sustainable options proven to be environmentally friendly. According to GlobalWebIndex, “a rising number of consumers were ready to pay for more expensive, eco-friendly products.”

With upcoming regional standards changing in 2023, this is a great opportunity for your HVAC business to make a true and relevant case to start offering more efficient, eco-friendly products that satisfy the standards. As you take calls for routine maintenance or general repair and replacements, train your workers to discuss the benefits of replacing old systems with new and more efficient ones. Starting the conversation and informing customers on what changes are coming, may change their decision to just fix their old system.

The availability of tax credits and rebate programs as well as other monetary benefits associated with the purchase of energy-efficient systems is expected.” The government has set forth manufacturing processes for energy-efficient systems, thereby reducing environmental hazards and carbon footprints.

Be your customer’s trusted HVAC contact

Consumers’ expectations are changing. A State of Global Customer Service survey found “78 percent of younger consumers expect customer service reps to know their purchase history and contact information as soon as they start speaking to one another.” Is your HVAC business using customer relationship management (CRM) tools and initiatives to provide the most convenient experience possible? Do you collect customer and job information you can leverage in the future to customize marketing efforts and target only relevant customer segments? Make it easy on your company and your customer’s experience. Being able to see the service history of their units when they contact you will not only make it easier for your customer, knowing you can give them personal service, but it allows your business to schedule and assess what work may need to be done before a technician gets dispatched.

Cash and checks are no longer “king”

Customers don’t pay with cash or write checks very often. Leaving a bill with the customer or mailing it to them after service has been rendered is passé. It’s another time-eating step for the customer and your office’s bookkeeping staff. Mobile point-of-sale (POS) systems can help small and medium-sized businesses conveniently capture payments on the job.

Are your HVAC techs still writing invoices and turning in wrinkled receipts? HVAC market trends indicate 2022 is the year to give your HVAC customers the easy point of sale credit card online payment options or other quick no-fuss payment features that are offered everywhere else.

How does the U.S. compare?

The U.S. market is one of the largest consumers of air conditioning systems, only behind China in terms of unit sales. According to the U.S. Department of energy, “seventy-five percent of homes in the U.S. have air conditioners installed. In addition to new units, replacement demand for existing systems is a major factor driving market growth.” Each year in the country, 3 million HVAC systems are replaced. “Thus, the market is expected to experience substantial growth aided by the replacement cycles of the existing systems in the country.”

High market penetration of HVAC equipment may also lead to increased maintenance and repair demand. Maintenance includes cleaning, filter replacement, and adding refrigerant. If this is not done, it may lead to the failure of the entire system. Components such as contactors, fuses, capacitors, motors, etc., need to be replaced or repaired to prevent premature system failure. Studies suggest, almost $14 billion is spent on HVAC services and repairs every year.

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