As more homes and commercial structures are built, demand for industry contractors will rise.
New York, NY (PRWEB) November 03, 2014
The Heating and Air-Conditioning Contractors industry is heavily impacted by activity across Canada's construction markets, with the majority of revenue generated from heating, ventilation, and air-conditioning (HVAC) installations in new residential and nonresidential buildings. “Maintaining, monitoring, and repairing existing equipment also accounts for a significant share of revenue, lending stability to the industry during periods of heightened volatility in construction markets,” Omar Khedr. These service segments, however, also make the industry susceptible to changes in levels of disposable income. Ultimately, in the five years to 2014, industry revenue is expected to increase at an annualized rate of 3.2% to $16.5 billion.
The quick rebound of the housing market and subsequent economic growth caused new construction activity to dramatically increase. From 2010 until 2013, demand for new housing grew due to rapidly increasing property values. In the five years to 2014, the value of residential construction is expected to increase at an annualized rate of 3.8%, including increases of 8.9% in 2010 and 6.2% in 2012. “Nonresidential construction activity also experienced strong growth, as the economic recovery spurred growth in the business sector,” says Khedr. As businesses increased operations, fewer vacancies in commercial buildings appeared and demand for new nonresidential structures rose. Consequently, these factors boosted demand for HVAC installations across construction markets.
Despite cooling in 2013 due to a contraction in downstream construction markets, demand for industry services has already begun to heat up in 2014. Positive signs in the housing market indicate the construction sector's burgeoning return to strength, with housing starts expected to increase over the next five years. 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 trend toward lower household and business energy use are projected to encourage building owners to upgrade to more efficient systems.
For more information, visit IBISWorld’s Heating and Air-Conditioning Contractors in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry installs and services heating, ventilation, air-conditioning and refrigeration equipment. The work performed includes new installations, additions, alterations, maintenance and repairs. Plumbing-related information is not covered in this report.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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