Industry Analysis & Industry Trends
The Heating and Air Conditioning Wholesaling industry depends heavily on the level of building activity in the residential, commercial and industrial construction sectors. Construction in the residential market bottomed out in 2009 and rebounded slowly in 2010. Consequently, industry has been volatile over the past five years, largely due to declines in residential and commercial construction and private spending on home improvements. The industry is expected to improve during the next five years, in line with the recovering economy. Strength in the residential construction market, steady demand growth from commercial building construction and an increase in private spending on home improvements will lead to more heating and air conditioning equipment purchases... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has a medium level of barriers to entry. In the majority of product and market segments, customers are much more aware of the brand names of key components. To a certain extent, this gives manufacturers more pricing power as knowledgeable buyers weigh quality and brand name recognition above price considerations.
Large manufacturers of heating and air conditioning equipment and supplies are able to eliminate mark-ups of the "middleman," making it more difficult for wholesalers to survive. In order to compete with manufacturers and lower per unit costs, pure HVAC wholesalers have increasingly attempted to achieve economies of scale through mergers, acquisitions and joint ventures with HVAC manufacturers... purchase to read more