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 - Industry Products Chapter
The heating, ventilation and air-conditioning (HVAC) products sold by this industry are built to stock and rarely built to order. As a result, products are usually purchased from inventory. Once purchased, air conditioning (AC) and heating equipment contractors install the products to specification. Physical size, product features and performance differences (energy efficiencies) give the industry's products different price levels. Replacement or repaired products go through different downstream value chains, and are also different in terms of customers' price sensitivities, switching costs and required delivery times.
In many respects, AC systems are similar to forced-air heating systems... purchase to read more