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NewsDistribution TrendsGuest ColumnHVAC Distribution News

When Distributors Underperform, Contractors Move On

More than 70% of HVAC contractors said underperformance prompts them to buy from competitors

By Zachary Perge
hvac-distribution.jpg
Courtesy of Sviatlana Lazarenka / iStock / Getty Images Plus

WITHIN CONTROL: While the industry cannot eliminate market disruption or regulatory change, the people within it can choose how they communicate, plan, and collaborate

February 28, 2026

When the distributor-contractor relationship works, it functions as a true strategic partnership built on trust, communication, and shared planning. But lately, those relationships have been tested. Business has become more transactional, assumptions have replaced dialogue, and the consequences have been felt across the entire value chain. 

Nowhere was this more evident than during the recent refrigerant transition. As the industry prepared for new requirements, misinformation spread quickly. Contractors believed they needed to buy immediately, distributors struggled to anticipate demand, and forecasting broke down on both sides. The result was confusion, shortages, and a sense that no one was fully prepared for the disruption. While regulatory change itself may be unavoidable, how we respond to it is not. Communication failures are well within our control. 

When distributors and contractors operate in silos, pricing tensions rise, and long-term planning gives way to short-term reactions. But when the relationship is strong, and information flows both ways, the partnership becomes a competitive advantage. 

HARDI’s 2025 Voice of Contractor Customer Satisfaction Survey reinforces this reality. Contractors remain consistent in what they value most when choosing where to buy: product availability, competitive pricing, and reliable fulfillment and delivery. These fundamentals have not changed. What has changed is the environment in which those decisions are made. Contractors today purchase from more distributors than ever before. In this environment, distributors who rely solely on price or availability risk being treated as commodities rather than partners. 

The data is clear. Contractors who rate distributor performance as “poor” or “fair” overwhelmingly respond by shifting purchases elsewhere. More than 70% of respondents said underperformance leads them to buy from competitors. In other words, loyalty is earned (and easily lost) in the absence of strong relationships and consistent communication. 

 

Building Relationships 

At the same time, the survey data highlights an important nuance. While relationships with supplier staff may not be the top driver of purchasing decisions, they are consistently rated highly by contractors. Contractors who identify counter or inside sales staff as their primary point of influence are less likely to turn to competitors, even when performance issues occur. That finding should not be overlooked. It suggests that trust built through daily interactions can sustain a partnership when market pressures intensify. 

This is where distributors face a strategic crossroads. Contractors have a range of purchasing options, from additional wholesale locations to online marketplaces that promise speed and convenience at scale. Distributors cannot control the growth of these alternatives, but they can control how they position themselves within the contractor’s business. The choice is to compete solely on transactions or invest intentionally in relationships. 

Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, our new smart AI search tool. Ask ACHR NEWS →

Building those connections requires more than good service in calm times. It requires a roadmap for proactive communication, shared forecasting, and a willingness to confront bad news together. Regulatory transitions, supply disruptions, and market volatility are no longer surprises. What continues to surprise the industry is how unprepared we sometimes are to talk about them openly. 

 

Advocating for the Industry 

Advocacy is another dimension to this partnership that deserves greater attention. Contractors are the largest segment of the HVACR industry, and their voices carry significant weight with policymakers. Distributors, through their relationships, have an opportunity to use those voices in a coordinated way. 

Too often, policy debates move faster than the industry’s ability to adapt. Contractors are on the front lines of implementation, and they understand better than anyone how regulatory timelines, supply constraints, and the realities of the workforce intersect in the field. When distributors and contractors work together to communicate these realities to lawmakers, they can advocate for more practical, phased approaches to change. 

Policymakers benefit from hearing directly from the businesses that install, service, and maintain the equipment affected by their decisions. Distributors can serve as connectors, helping contractors translate operational challenges into policy conversations that emphasize readiness, affordability, and continuity for customers. 

The most effective advocacy is rooted in trust. Contractors are far more likely to lend their voices when they view their distributor as a partner invested in their success, not just a supplier of goods. That trust is built long before a legislative issue arises. It comes through consistent engagement, transparent communication, and a shared understanding of what is at stake. 

Ultimately, the strongest argument for rebuilding the distributor-contractor relationship is also the simplest: most of what defines it is within our control. We cannot eliminate market disruption or regulatory change, but we can choose how we communicate, plan, and collaborate. In a competitive and rapidly evolving industry, distributors who prioritize long-term partnerships over short-term transactions will not only retain customers but will help shape a more stable, informed, and effective path forward for the entire HVACR value chain. 

KEYWORDS: distribution and HVACR distribution management distribution professionals HARDI HARDI reports

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Zachary Perge is the chief strategy officer at Heating, Air-conditioning & Refrigeration Distributors International (HARDI), which represents more than 420 HVACR wholesalers, nearly 300 manufacturing associates, and nearly 100 manufacturer representatives. 

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