Starting an HVAC service business requires thorough planning. How to get small business funding, looking for expert technicians, and how to deal with the competition are only some of the problems that startup HVAC services businesses have to face. After a while, more problems and challenges pop up one after the other.

Stiff Competition

In every strategic location, there is likely about four or five service providers competing with each other.

According to BIS Research, the HVAC market worldwide is projected to reach $208.6 million by 2024. This data is based on the compound annual growth rate of about 2.6 percent between the years 2018 and 2024.

It means that the market for HVAC services will continue to grow and competition will become fiercer. For the consumers, this is a great thing as they have more options, but not so much for HVAC service providers.

Basically, HVAC service providers rely on brand loyalty more than anything else. They don’t get a lot of new customers regularly and they depend on their previous clients. Some business owners decide to compete based on the price, but it is not a long-term solution.

One thing to do to deal with increasing competition is to maintain the integrity of the business and to continue to provide high-level services. This makes the customer base of the service provider loyal and refer them to other people.

Shortage of Skilled Technicians

This is a problem that every HVAC service business has to face eventually. As the current tradespeople start to grow older, the need for new experts became a growing pain for HVAC service providers.

According to the Bureau of Labor Statistics (BLS), in 2018, there is already a shortage of 70,000 HVAC technicians and the industry will need about 115,000 more within the next four years in order to meet the demand. The BLS believes that the industry wll lose about 12,000 workers per year.

Some think that the current society is paying more attention to four-year courses and more and more people decide to take them over learning trades. For this reason, the stiff competition of the HVAC service providers is not only focused on getting customers, but also in finding skilled technicians to work for them.

One way to attract the attention of skilled technicians is to attract potential employees by making their company more appealing. Companies can offer various benefits and a stable salary without hurting operation expenses.

High Operation Costs

Financial problems are one of the most common reasons why small HVAC service companies close down. The stiff competition forced them to shut down their business because the operation costs are too high.

The initial investment is already too much of a burden for a startup company, which includes specialized equipment, a fleet of vehicles, marketing, insurance, and hiring skilled technicians.

The best way to deal with this financial issue is to get small business funding. It is quite difficult to get money from the banks, especially for small businesses, so small business funding is the go-to option for small HVAC service providers.


When the weather is at its most extreme, HVAC service providers get non-stop calls. This is a good thing, but the problem lies with the availability of the technicians.

For small HVAC service businesses, they only have a small number of teams that can handle HVAC repairs and maintenance at the same time. If they only have five teams and they get eight calls from consumers, they will have to give up the three customers unless they are willing to wait. Doing this means that the customers that were turned down will most likely go to a different HVAC service provider.

During the off-season, HVAC service providers have to deal with little to no customers. They have to think of services that they can offer to the consumers.

One way to handle this is to improve the marketing scheme of the business. They can make calls to their consumers to remind them that it is better to get their HVAC systems checked before summer or winter.


Every HVAC service business has to face these top challenges. Small and big businesses are dealing with the same problems and it is not something that can be resolved easily.

Funding problems, the lack of technicians to hire, and the stiff competition might be very hard to deal with, but with the right mindset and marketing procedures, it can be resolved eventually.

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