Revenue Expected to Eontinue to Rise as Demand Recovers
NEW YORK — The HVAC service franchises industry is highly dependent on activity in the downstream construction sector as many HVAC systems are installed at the time of construction. After the housing bubble burst, the value of nonresidential and residential construction plummeted, pushing industry revenue down from 2009 to 2010. Furthermore, demand for maintenance and upgrades waned, as well, due to declining corporate profit and disposable income per capita.
Since then, demand for HVAC services has quickly increased as construction expenditures recovered. In 2014, industry revenue is expected to continue to rise as demand fully recovers, according to IBISWorld, which expects service franchise revenue to continue increasing at an average annual rate over the next five years, though growth is partly due to the recovery from recessionary lows.