Overview

Air flow: Improving construction markets and rising incomes will revive industry demand

IBISWorld’s Heating & Air Conditioning Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$50bn
Annual Growth
11-16
5.0%
Annual Growth
16-21
Profit
Employment
66,387
Business
5,907

Industry Threats & Opportunities

  • Higher incomes and stronger demand for home improvements will aid industry revenue
  • Federal incentives are increasing demand for the industry’s energy-efficient products
  • Economic growth and low interest rates will incite investments in new housing units

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    Industry Analysis & Industry Trends

    The Heating and Air Conditioning Wholesaling industry heavily depends 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 revenue 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 over 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...

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    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 heating, ventilation and air conditioning (HVAC) wholesalers have increasingly attempted to achieve economies of scale through mergers, acquisitions and joint ventures with HVAC manufacturers.

    ..

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    Additional Insights for the Heating & Air Conditioning Wholesaling Industry

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

  • Having links with suppliers
  • Having a good technical knowledge of the product
  • Provision of a related range of goods/services ("one stop shop")
  • IBISWorld analysts also discuss how external factors such as Housing starts and Value of private nonresidential construction in the Heating & Air Conditioning Wholesaling industry impact industry performance..

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    Industry Products

    What is the Heating & Air Conditioning Wholesaling Industry?

    Wholesalers in this industry engage in buying, selling and distributing heating, ventilation and air conditioning (HVAC) equipment. This industry excludes in-room and in-window air conditioners and hydronic equipment (see IBISWorld report 42372). Moreover, while installation is also excluded, service and repair work are part of this industry, accounting for less than 2.0% of industry revenue.

    Industry Products
    Central air conditioners
    Forced-air furnaces
    Registers, grills, duct insulation and preformed ductwork
    Condensing units for air conditioners
    Heat pumps
    Compressors for air conditioners
    Air-cleaning and filtration systems
    Industry Activities
    central air conditioners (excluding in-room and in-window units)
    Wholesaling forced-air furnaces
    Wholesaling registers, grills, duct insulation and preformed ductwork
    Wholesaling condensing units for air conditioners
    Wholesaling compressors for air conditioners
    Wholesaling heat pumps
    Wholesaling air-cleaning and filtration systems
    Wholesaling electric nonportable baseboard heaters

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Housing starts
  • Value of private nonresidential construction
  • Demand from heating and air-conditioning contractors
  • Private spending on home improvements
  • Prime rate

  • Current Performance
  • Improving markets
  • Industry incentives
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing activity
  • Rising rates
  • Environmental concerns
  • Stabilizing costs
  • Table: Heating & Air Conditioning Wholesaling Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Commercial Building Construction
  • Municipal Building Construction
  • Heating & Air-Conditioning Contractors
  • Plumbers

  • Key Selling Industries
  • Heating & Air Conditioning Equipment Manufacturing

  • Products & Services
  • Central air conditioners
  • Other
  • Registers, grills, duct insulation and preformed ductwork
  • Forced-air furnaces
  • Heat pumps
  • Compressors for air conditioners
  • Air-cleaning and filtration systems
  • Condensing units for air conditioners
  • Chart: Heating & Air Conditioning Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Residential demand
  • Non-residential demand
  • Replacement demand

  • Major Markets
  • Building, heavy construction and special trade contractors
  • Other wholesalers for resale
  • Retailers for resale
  • Business users for consumption
  • All others
  • Chart: Major Market Segmentation for the Heating & Air Conditioning Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Heating & Air Conditioning Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating & Air Conditioning Wholesaling Industry

  • Industry Globalization
    Major Companies
    Watsco Inc.
  • Table: Watsco Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Heating & Air Conditioning Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Heating & Air Conditioning Wholesaling Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Housing Starts (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Annual Fuel-Utilization Efficiency (Afue)
  • Measure of thermal efficiency for furnaces and boilers.
  • Refrigerant
  • Chemical compounds (or coolants) used to achieve low temperatures in air conditioners and refrigeration equipment.
  • Seasonal Energy-Efficiency Ratio (Seer)
  • Used to rate the efficiency and performance of unitary air conditioners and heat pumps.
  • Why buy this report?

    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 Wholesaling:
    • 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 Wholesaling 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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