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Source : Wikimedia Commons
May 11, 2021
Author : Patty Rodriguez
High supply costs, shortages, and low demand for many commercial projects are just a few of the problems plaguing HVAC contractors.
With the free-fall of commercial construction, HVAC contractors have been collateral. As Achr notes, the company Trane Technologies’ commercial HVAC business “announced a price increase of up to 7.5% on select Trane unitary, applied, and controls equipment, which took place April 9.”
There are several causes for the increase. In general, material prices have soared due to supply chain disruptions, which are not just from coronavirus-related shutdowns. Things are also backed up because of the blockage of the Suez canal and winter storms that shut down and damaged plants in Texas.
While prices have increased for HVAC equipment and its component parts, it’s not all doom and gloom.
The company HARDI International, Heating, Air-conditioning & Refrigeration Distributors International says 2021 has been off to a mostly good start. “This strong start has pushed the annual sales growth rate from 4.1% at the end of 2020 all the way to 6.1% for the 12 months through 2021,” said HARDI market analyst Brian Loftus said.
The outlook is not so bad either. A recent article published on Yahoo Finance notes “Amid the COVID-19 crisis, the global market for HVAC Controls estimated at US$16.1 Billion in the year 2020, is projected to reach a revised size of US$33.1 Billion by 2027, growing at a CAGR of 10.9% over the analysis period 2020-2027.”
Photo via Wikimedia Commons.