For years now, HVACR contractors have complained that their main concern has been finding qualified workers. It's no surprise, then, that this same issue is at the top of the list for 2005 as well. Finding and keeping employees can have an impact on profitability because, in some cases, the workforce problem keeps contractors from taking on more work and growing their businesses.
Rising health care costs present another huge problem for contractors. Air Conditioning Contractors of America (ACCA) recently released its study on health benefit costs, and the results were startling: In 2004, 69 percent of HVACR contractors saw their premiums increase more than 10 percent, while 22 percent of survey respondents saw increases of more than 20 percent. In response to these price increases, many contractors are reducing benefits for employees.