NORCROSS, Ga. — The Deep South of the United States is the largest region of opportunity for growth in the North American HVAC market, according to a report from construction data provider CMD.
According to the CMD report, the South is responsible for 37 percent of the available opportunities in the North American HVAC market. This fast-growing region of the U.S. offers many opportunities across the construction industry, and HVAC development is no exception.
“Producers of HVAC equipment should be optimistic about their potential over the next couple of years,” said Alex Carrick, CMD chief economist. “Not only will they see ongoing cyclical improvements in construction, but there are trends within the various types-of-structure that will give them a boost as well — not only in the South, but across the North American landscape.”
The report also notes the top three HVAC segments (education, medical, and commercial offices) make up 53.3 percent of the overall market. Education alone makes up one quarter of the entire available market, and is also the fastest-growing segment.
Currently, the biggest ticket HVAC sales items for manufacturers are in high-rise structures. This lines up well with the trend in North America toward stronger multi-unit residential construction and mixed-use project starts.
“The 2008-09 recession, with its accompanying tidal wave of foreclosures, rendered many individuals and families leery about undertaking a new single-family home purchase,” said Carrick. “Societal and demographic trends indicate stronger multi-unit residential construction starts relative to the single-family market segment, and that bodes well for the HVAC industry.”
For more information, visit cmdgroup.com.
Publication date: 2/9/2015