As more homes and commercial structures are built, demand for industry technicians will increase.
New York, NY (PRWEB) May 12, 2014
The Heating and Air Conditioning industry is heavily influenced by activity in the construction market, with the majority of income generated from heating, ventilation and air-conditioning (HVAC) installations in new residential and nonresidential structures. Maintaining, monitoring and repairing existing equipment also accounts for a significant share of revenue, lending stability to the industry due to the volatile construction markets of recent years. These service segments also make the industry susceptible to changes in levels of disposable income. Ultimately, in the five years to 2014, Heating and Air Conditioning industry revenue is expected to increase at an annualized rate of 4.1% to $70.8 billion.
According to IBISWorld Industry Analyst Omar Khedr, “The collapse of the housing market and subsequent economic recession caused new construction activity to dramatically decrease.” Between 2009 and mid-2011, demand for new housing was hampered by an oversupply of existing homes and declining property values. Nonresidential building construction activity also declined, as the economic downturn caused a contraction in the business sector. As unemployment increased and businesses reduced operations, more vacancies in commercial buildings appeared and demand for new nonresidential structures weakened. Consequently, these factors hurt demand for HVAC installations across the construction markets.
After revenue declined from 2009 to 2010, the industry rebounded in 2011 and recorded growth of 13.0% in 2012, followed by a 3.7% increase in 2013. “Positive signs in the housing market indicate the construction sector's burgeoning return to strength,” says Khedr. As more homes and commercial structures are built, and require HVAC system installations, demand for industry technicians will strongly increase. Furthermore, national standards for energy efficiency and a growing trend toward lowering household and business energy use, is projected to encourage building owners to upgrade to more efficient systems.
For more information, visit IBISWorld’s Heating and Air Conditioning in the US industry report page.
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IBISWorld industry Report Key Topics
The Heating and Air Conditioning industry comprises companies that primarily install and service heating, ventilation, air-conditioning (HVAC) and refrigeration equipment. Operators perform tasks that include new installations, additions, alterations, maintenance and repairs. Plumbing and related activities are not included in this report (IBISWorld report 23822b).
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