Heating and Air Conditioning Equipment Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

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Sales are projected to return to prerecession levels, driven largely by renewed residential construction activity. For these reasons, industry research firm IBISWorld has updated a report on the Heating and Air Conditioning Equipment Manufacturing industry in its growing industry report collection.

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Recovering residential construction will boost sales of heating and air-conditioning systems.

Residential and commercial construction, as well as private spending on home improvements, largely drives demand for the Heating and Air Conditioning Manufacturing industry. In 2009, the industry experienced a substantial decline as a result of the housing and construction slump that accompanied the recession. “Although the industry began to recover in 2010, several years of revenue growth was still not enough to offset the early recessionary declines,” according to IBISWorld Industry Analyst Stephen Morea. IBISWorld estimates that industry revenue slightly dropped by an annual average rate of 0.5% in the five years to 2013. Nevertheless, industry revenue is expected to increase by 1.5% to $42.9 billion in 2013.

Since almost any new structure (residential, commercial or industrial) requires some form of heating, ventilation, air conditioning and refrigeration (HVACR) equipment, new construction activity has the most significant influence on the industry. New home construction turned the corner in 2010 and significantly increased in 2012 when the number of housing starts jumped by 29.1%. Building activity in the private, nonresidential or commercial market also improved. Another major market for the industry is projects related to the replacement of existing HVACR equipment. Economic conditions, ordinary wear and tear of equipment, a movement toward more energy-efficient equipment and environmental concerns drive HVACR replacements. “As employment and disposable income increased, consumers had more funds available to invest in home improvements,” says Morea. A third source of industry demand is from restaurant and food service firms who purchase the industry's refrigeration equipment, such as walk-in coolers and refrigeration display cases. This product segment saw lower returns as restaurants postponed investing in new refrigeration units during the recession. However, as consumer spending improved and people began to dine out again, sales of refrigeration equipment also increased.

In recent years, revenue for all key markets in the industry improved. In the future, sales are projected to return to prerecession levels, driven largely by renewed residential construction activity. A recovery in consumer spending will also drive demand for refrigeration systems in downstream food service industries. Energy-efficiency expectations are also forecast to spark sales.

For more information, visit IBISWorld’s Heating and Air Conditioning Equipment Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in the Heating and Air Conditioning Equipment Manufacturing industry manufacture residential, commercial and industrial heating, ventilation, air conditioning and refrigeration (HVACR) equipment. Revenue includes miscellaneous receipts for resales of products without further manufacturing, contract work done for others on their materials and receipts for repairs, scrap and refuse sales. Automotive units are excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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