Heat wave: Demand and profit growth will attract new players to the industry

The Heating and Air-Conditioning Contractors industry in Illinois is expected to grow over the past five years. This projected growth is largely attributed to an increase in construction activity. In addition, HVAC contractors have benefited from energy efficiency preferences, which has spurred growth in retrofitting services. Revenue is expected to further increase over the five years to 2022. However, sales growth will be largely driven by an increase in electricity prices. Unlike the rest of the nation, most commercial buildings in Illinois are historical structures that have been remodeled to feature more-modern amenities. However, a number of these structures have installed outdated HVAC systems, which are energy-intensive...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
4.0%
Forecast Growth 17-22
Profit
Employment
17,587
Businesses
4,384
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Industry Threats & Opportunities

  • A boom in construction activity has prompted a number of single-operator firms to enter the industry
  • In line with rapid housing start growth, demand for HVAC contractors has been on the rise
  • Investment in replacing older HVAC systems with more energy-efficient options is projected to rise further
  • Industry Report - Industry Analysis Chapter

    The Heating and Air-Conditioning Contractors industry in Illinois, which engages in the installation, retrofitting and maintenance of heating, ventilation and air-conditioning (HVAC) systems, has performed well over the five years to 2017. Specifically, the industry is expected to grow at an annualized rate of 4.0% to $3.8 billion during the five-year period, including 1.1% growth in 2017. Demand has skyrocketed in recent years due to rising investments in housing starts and nonresidential building renovation activity.Preservation in progressIn Chicagoland, Illinois’ most populous region, there is an exorbitantly high number of commercial buildings built before the 1990s. Thi...purchase to read more.

    Additional Insights for the Heating & Air-Conditioning Contractors in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heating & Air-Conditioning Contractors in Illinois Industry are

  • Having a good reputation
  • Management of seasonal production
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Housing starts in Illinois and Value of private nonresidential construction in Illinois in the Heating & Air-Conditioning Contractors in Illinois industry impact industry performance..

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    What is the Heating & Air-Conditioning Contractors in Illinois Industry?

    This industry comprises companies that primarily install and service heating, ventilation, air-conditioning (HVAC) and refrigeration equipment. Operators perform tasks that include new installations, additions, alterations, maintenance and repairs. Plumbing and related activities are not included in this report (IBISWorld report 23822b).

    Industry Products
  • New construction HVAC installation
  • Existing structure HVAC installation and maintenance
  • Refrigeration contracting
  • Other piping and duct work
  • Industry Activities
  • Air-conditioning system installation (except window units)
  • Air vent installation
  • Furnace conversions (i.e. from one fuel to another)
  • Refrigeration system (e.g. commercial, industrial or scientific) installation
  • Heating, ventilation and air-conditioning (HVAC) contracting
  • Furnace humidifier installation
  • Natural gas fireplace installation
  • Duct work (e.g. cooling, dust collection, exhaust, heating and ventilation) installation
  • Ventilation equipment installation
  • Heating and ventilation system component (e.g. air registers, diffusers and filters) installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts in Illinois
  • Value of private nonresidential construction in Illinois
  • Corporate profit
  • Oil and natural gas price index

  • Current Performance
  • Preservation in progress
  • Surge in housing starts
  • Profit expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Heightened construction activity spurs industry expansion
  • Electricity price growth drives retrofitting demand
  • Table: Heating & Air-Conditioning Contractors in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heating & Air-Conditioning Contractors in Illinois Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Refrigerated Storage
  • Property Management
  • Commercial Building Construction
  • Municipal Building Construction
  • Consumers

  • Key Selling Industries
  • Electricians
  • Heating & Air Conditioning Wholesaling
  • Refrigeration Equipment Wholesaling

  • Products & Services
  • Existing structure HVAC installation and maintenance
  • New construction HVAC installation
  • Refrigeration contracting
  • Other piping and duct work
  • Chart: Heating & Air-Conditioning Contractors in Illinois Industry Products and Services Segmentation

  • Major Markets
  • Other
  • Single-family homes
  • Retail and storage spaces
  • Healthcare and public safety buildings
  • Educational buildings
  • Office buildings
  • Manufacturing and industrial buildings
  • Apartments, dormitories and barracks
  • Chart: Major Market Segmentation for the Heating & Air-Conditioning Contractors in Illinois Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Heating & Air-Conditioning Contractors in Illinois

  • Basis of Competition
    Emergence of substitutes
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating & Air-Conditioning Contractors in Illinois Industry

  • APi Group Inc.EMCOR Group Inc. McKinstryTeam Industrial Services
  • Table: APi Group Inc. - financial performance
  • Table: EMCOR Group Inc. - financial performance
  • Table: McKinstry - financial performance
  • Table: Team Industrial Services - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heating & Air-Conditioning Contractors in Illinois Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heating & Air-Conditioning Contractors in Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Heating, Ventilation And Air-Conditioning (Hvac)
  • A system used to control the temperature, humidity and air quality in buildings.
  • Nonemployer
  • An establishment without payroll employees, typically a sole proprietorship or partnership.
  • Refrigeration
  • A system used to store perishable items, such as food, medicine and chemicals.
  • Why buy this report?

    IBISWorld’s industry research report on Heating & Air-Conditioning Contractors in Illinois contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heating & Air-Conditioning Contractors in Illinois:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heating & Air-Conditioning Contractors in Illinois market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heating & Air-Conditioning Contractors in Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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