Good news for the heating, ventilation, and air conditioning (HVAC) industry is typically good news for our team of heating and cooling professionals at Hager Fox Heating and Air Conditioning. That’s why the most recent report from RnR MarketResearch on the HVAC industry is so exciting.
According to a press release from PRnewswire.com, the report, entitled “Global and US HVAC Market (Heating, Ventilation and Air Conditioning) Research Report, 2016-2017,” indicated that not only is the U.S. HVAC market recovering from recent slumps, but it is also expanding — and at a significant clip. The U.S. HVAC market is expected to achieve 11% growth in 2016 and 5% in 2017, making for an overall growth of 16% in the next 18 months.
“In residential [services], it should result in an outsized volume growth due to low unemployment and gas prices, added with high consumer confidence and depressive demand, while continued price and commodity tailwinds boost margin expansion,” the report reads. “Replacement rates have steadily raised over the past few years following historically low levels coming out of the recession, and are now accelerating towards the high end of historical ranges as potential replacement demand is released into the system.”
As the report points out, the recession of 2008/09 hit our industry hard, as it did with so many others. In the years that followed, most people were probably more concerned with regularly replacing air filters — as is recommended by Energystar.gov — than complete replacement. Considering air conditioners account for approximately 5% of all electricity produced in the U.S. and the fact that new units can improve efficiency by up to 30% in some cases, it’s not surprising that as the economy has come back so too has people’s interest in upgrading their HVAC systems.
In this industry, we know that sometimes, financial and practical implications can interfere with projects you’d like to complete, but reports like this — and the anecdotal evidence we’ve heard recently — indicate that business will be good in the coming couple of years. That doesn’t just mean good business for us, however; it means that our neighbors are getting the updates and improvements they need to keep their home’s safe and efficient