A number of industries took a hit during the economic recession, and heating, ventilation and air-conditioning (HVAC) installations were no exception. This is no surprise, since the industry is heavily influenced by activity in the construction market and the majority of income is generated from installations in new residential and nonresidential structures.
“Maintaining, monitoring and repairing existing equipment also accounts for a significant share of revenue, lending the industry some stability in the face of the volatile new construction markets of recent years,” according to IBISWorld industry analyst Matthew MacFarland. In the five years to 2013, industry revenue is expected to decrease by an annualized rate of 1.3 percent to $57.3 billion.
From 2008-2010, the industry experienced three years of declining growth. In 2011, it turned a corner and recorded strong growth figures of 6.4 percent in 2012. Positive signs in the housing market indicate the construction sector is returning to health. As more homes and commercial buildings are built and require HVAC systems, demand will continue to grow. As national standards for energy efficiency are implemented and business and residential customers are increasingly focused on lowering energy use, demand for more efficient systems is expected to increase.
Do you feel apprehensive when you open your utility bills due to high energy costs? We can help! If you have an older model air conditioner, it may be time to consider an upgrade to a unit like the Lennox XC25. Now is the perfect time to schedule an appointment to discuss your options.