Monday, September 22, 2014
A Bright Quarter Ahead for the HVAC Sector
Labels: Comfort Supply, Comfort Supply HVAC, HVAC growth, HVAC industry 1 comments
While the first half of 2014 growth was less than expected
due to unfavorable weather, sales forecasts for the remainder of the year
remain optimistic. HVAC companies predict an average annual growth of 4.8% in
the fourth quarter. In comparison, of the almost 20 distribution industries
represented, only two predicted a higher percentage: plumbing and
mechanical/power transmission. Just below the HVAC sector in predicted sales
were the cutting tools and safety products industries.
The hopeful outlook comes just a few months before The
Department of Energy’s new efficiency ratings increase. These changes, outlined
in a recent blog, will save homeowners an estimated 5% annually on utility
bills, but may come at a higher cost to customers. Of the distributors surveyed
by Modern Distribution Management, 63%
cited this type of government regulation as a limiting factor for company
growth.
Despite the transition period, however, almost 80% of distributors
across the board expect to maintain or increase their inventories in the third
quarter.
Overall, it’s a good time to be in the HVAC industry and we look forward to continuing to serve our dealers. Cheers to a great fourth quarter!