Demand for energy will rise through 2040 as global economic output doubles and prosperity expands across a world where population will grow to nearly 9 billion people, Exxon Mobil Corp. states in The Outlook for Energy: A View to 2040.
The heating and cooling trade was not immune to the woes of the recent economic recession. The HVAC trade had to learn to deal with the reality of possible loss of profits from falling revenues, a shift in the market from replacement to repair, and an influx of new business owners bent on lowering prices and lowering credibility of the trade.
Distributors who made it through 2009 can congratulate themselves on surviving one of the most difficult years that HVACR wholesale distribution has endured in a long time. And while business is not back to pre-recession levels, the outlook is definitely improving.
The economic conditions of the last few years have been tough for HVAC contractors. While some economic indicators point to a modest recovery underway, contractors may need a little more convincing, as evidenced by the Contractor Comfort Index (CCI), which decreased in the months of December and January before rising a bit in February.
In 2010, the 25C tax credits were a popular sales tool in the HVAC industry, used to entice homeowners to purchase high-efficiency HVAC systems in exchange for a $1,500 tax credit. However, these residential tax credits were reduced to $500 at the end of 2010, leading many in the industry to wonder if a drop-off in new equipment sales would be inevitable in 2011.
Contractors attending this year’s Air Conditioning Contractors of America (ACCA) conference had a lot of burning issues on their minds concerning the HVAC industry. Thanks to the much-anticipated CEO Forum that is held at the conference every year, attendees had the opportunity to ask manufacturing leaders about those issues that directly affect their livelihoods.
The HVAC trade has sounded off on its 2011 predictions - and it is overwhelmingly good. That is, according to 140 respondents to a recent poll at Linkedin.com, who were asked what they saw in their crystal ball for 2011. The HVAC trade - in particular, contractors - are very keen on a business uptick in 2011.
The Congressional Budget Office (CBO) is predicting continued recovery for 2011. So is Ben Bernanke, chairman of the board of governors of the Federal Reserve System, and so are many of the contractors with whom The NEWS discussed 2011 predictions late last year. These contractors offer economic and industry predictions, as well as business tips for first quarter 2011.