Industry Analysis & Industry Trends
Similar to most industries within the construction sector, the Heating and Air-Conditioning Contractors industry has been quite volatile over the past five years. Moreover, demand for heating, ventilation and air conditioning (HVAC) services is projected to heat up over the next five years. Pent-up demand across the construction sectors, which began to slacken quickly in 2012 and 2013, is forecast to boost demand for new HVAC installations, the industry's primary service segment. Improving per capita disposable income, and the growing popularity of energy efficient systems that also lower operating costs for businesses and households, will drive demand for installations in existing structures... purchase to read more
Industry Report - Industry Investment Chapter
The Heating and Air-Conditioning Contractors industry, like other service industries, has a low level of capital intensity. For every $1.00 spent on wages, the average HVAC operator is expected to spend about $0.07 in capital investment in 2014. Wages are the primary expense for contractors; little to no heavy equipment is used in the installation and maintenance of heating, air conditioning and refrigeration systems, and purchase costs are mostly limited to job-specific materials. IBISWorld estimates that depreciation expenses only account for about 2.2% of revenue in 2014, whereas wage costs make up 32.4%.
Capital intensity has remained largely unchanged during the past five years... purchase to read more