So do you want the good news or the bad news first? Because there was both in the presentation economist Alan Beaulieu gave to the Heating, Airconditioning and Refrigeration Distributors International (HARDI) members at the recent HARDI Conference in Hawaii.
In a survey of more than 1,000 International Air-Conditioning, Heating, Refrigerating Exposition (AHR Expo) exhibitors, HVACR manufacturers expressed optimism about the economic outlook for 2012. Nearly three fourths (72 percent) of the total respondents expect a better year (59 percent) or a much better year (13 percent) in 2012.
Owners of small businesses are not as concerned as they had been about their cash flow, many are planning on making a capital investment in the next six months, and those that are doing well in the current economic climate are using social media as a magnet to draw new consumers.
The global market for air conditioning systems staged a recovery in the year 2010 and is now projected to register 144.3 million units in volume sales by 2017.
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.
