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Homebuilders who have been lucky enough to find a quality HVAC subcontractor and cultivate a good working relationship may have to cope with dramatic changes ahead. The key question: Can small, independent HVAC contractors survive in a world where giants are on the march? And if so, what will their role be?

Some of the nation's largest retailers are sizing up the residential and light commercial HVAC markets as a possible target for future expansion. Should they enter the market in earnest, they'll be buying their equipment direct from the manufacturers at prices far below those paid by independent contractors.

On the other hand, many electric and gas utilities, looking for a way to attract and hold customers in a new environment and establish new profit centers, are already selling and servicing residential heating, cooling, and water heating equipment.

This trend was underscored in a recent survey; the survey compiles responses from 42 utility executives, representing 25% of all residential customers in the US, and 12 HVAC (heating, ventilation, and air conditioning) equipment manufacturers, representing over 80% of the US residential market.

Their opinions suggest that utilities are going to become even more active in selling, leasing, and servicing HVAC equipment in the months ahead and that cooperative marketing agreements between utilities and equipment manufacturers may become commonplace.

Vision of Trends in the Residential HVAC Industry

1. Residential customers will have open 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 utilities will sell HVAC equipment to consumers..................................................................yes

5. Electric utilities will lease HVAC equipment to consumers...............................................................yes

6. Electric utilities will finance the purchase of HVAC equipment.........................................................yes

7. Partnering 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, 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 the mechanical systems interact and putting the "V" back in HVAC.

The survey also turned up some interesting opinions on the future direction of energy prices. While many analysts and consumers have been predicting (or is it hoping?) that the price of electricity    restaurant will drop thanks to deregulation, 60% of the utility execs polled disagreed. In this sampling, the majority believes that electricity prices will remain the same or actually go up because of deregulation.

Author's Bio:

Julian Arhire is a Manager with DtiCorp.com - DtiCorp.com carries more than 35,000 HVAC products, including industrial, commercial and residential parts and equipment from Honeywell, Johnson Contols, Robertshaw, Jandy, Grundfos, Armstrong and more.

http://www.selfgrowth.com/articles/vision-of-trends-in-the-residential-hvac-industry





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20 Oct 2015