Monday, September 22, 2014

A Bright Quarter Ahead for the HVAC Sector  

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A Modern Distribution Management/Baird Distribution survey recently showed the HVAC industry as one of the expected sales leaders for the fourth quarter.

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!

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