The percentage of HVACR distributors who reported sales increases in fiscal year 2016 was the highest since fiscal year 2013, when 96 percent enjoyed higher sales. In fiscal year 2014, 75 percent saw a rise in sales; while 2015 brought an additional rise to 77 percent. The 90 percent of distributors who said their 2016 HVACR sales were up reported an average increase of 10.4 percent compared to 2015.
Finally, and at long last, we are entering a time of high growth. This information comes not just from anecdotal reports from distributors across the country but also from some pretty respected economists. While speaking to the National Association of Wholesale/Distributors Executive Summit, economist Alan Beaulieu of ITR Economics confirmed much of what distributors were noticing in their local territories: business is expanding.
"Our biggest challenge and a goal I had set for the company was to shift as large a percentage of the new construction part of our business, nearly 95 percent, to the add-on and retrofit part of the industry. We have been very successful in doing so because 40 percent of our business is now retrofit and add-on."
The HVAC industry is often coined as “recession-proof” because the demand for indoor comfort is not going away. In fact, it’s growing. The global market for air conditioning systems was pegged at a value of $104.4 billion in 2015 and is projected to rise to $167 billion by the end of 2024, expanding at a 5.1 percent compound annual growth rate (CAGR) from 2016 to 2024, according to a report from Transparency Market Research.
I recently watched an episode of the television show, “60 Minutes,” which talked about America’s addiction to mobile devices. It spurred some internal thought about my habits and the attention spans of my fellow humans, which seem to be growing shorter. With shorter attention spans and an economy that is more and more based on fulfilling our impulse needs, it seems as if everyone is rushing to be first, even if that means sacrificing quality.
Executives in every industry are forced to confront the immediate future, and yet, they must ensure that the longer view — a strategic plan — is in the mix to ensure the business thrives. And the glue to all this planning is, unsurprisingly, the finances.
It can take up to 20 years to build a quality brand name, but just a handful of bad experiences can destroy it. The great entrepreneurs of our time believed this to be true. Steve Jobs, Mark Zuckerburg and Keith Merrill all bought into the concept that having a superior innovative product was not enough.
My stress arrives with figuring out what topics matter to my readers. I’ve repeatedly said we’re a business publication for owners and operators in the wholesale HVACR industry. I honestly pretend sometimes that I am the owner of a distributorship or maybe a hard-working middle management type. I ask myself: What do I have in common with everyone else and what can I do to make it better?
Summer is here for much of the country, and the northern reaches will be there soon. Our industry’s peak demand period brings a host of opportunities as well as challenges. How well we actively manage these often determines our performance in all of those Key Performance Indicators for the year. HARDI members are able to see how they are doing by routinely comparing their performance to the industry as a whole with HARDI’s Benchmarking Pillar.
The Coleman® brand of Johnson Controls introduced Coleman Echelon™ Variable Capacity Residential Systems. In addition to variable capacity technology, the systems feature built-in advanced charge monitoring technology for faster, more accurate installation and maintenance.
Larson Electronics LLC, an industrial lighting company, introduced an explosion-proof crane light. The explosion-proof crane LED warning light (EXHL-TRN-LE4-CRN-RED-1224) is designed to notify nearby pedestrians and workers about ongoing crane operations.
Danfoss’ Turbocor® TG series enables chiller manufacturers to build climate friendly and sustainable solutions that support refrigerant regulations for reducing direct and indirect CO2 emissions such as the European F-Gas Regulation and the U.S. Environmental Protection Agency’s (EPA) SNAP regulations.
HOUSTON — Goodman Manufacturing will be the first heating, ventilation and air conditioning (HVAC) manufacturer to launch Emerson’s new Copeland Scroll™ two-stage compressor that’s designed to provide budget-minded homeowners high-energy efficiencies with enhanced indoor comfort at an affordable, mid-tier price, the companies have announced.
ALPHARETTA, Ga. — LG Electronics USA Air Conditioning Technologies has added two more industry veterans, further enhancing its commercial applied sales and customer experience organizations. These changes address the evolving needs of the U.S. market and support the growth of LG’s variable refrigerant flow (VRF) technology.
Fort Washington, Penn. — Thermostat Recycling Corp. (TRC) has announced its sixth annual Big Man On Planet (BMOP) competition began May 1, in partnership with Heating, Air-conditioning and Refrigeration Distributors International (HARDI). BMOP will run through Oct. 31 and all HARDI wholesaler members are eligible to participate.
Newport News, Va. — Ferguson’s parent company Wolseley plc, an international distributor of plumbing and heating products to professional contractors, announced its financial results for the first half of the 2017 fiscal year alongside a name change and the upcoming retirement of CEO Frank Roach.
Enercare Inc., parent company of Service Experts Heating & Air Conditioning, announced the retirement of Scott Boxer and the appointment of Scott Boose as president and CEO. Boose has assumed responsibility for the strategic and operational leadership for Service Experts, including growth plans and the continued delivery of great customer experience.