2. More Space to Heat
Heating contractors and the broader HVAC industry have been benefiting from the growth in residential and non-residential construction, with a forecast of 4.1% annual growth for the period 2011–2016, compared to 3.8% growth for the period 2010–2015.
An August 2016 statement from the National Association of Home Builders (NAHB) predicted a 10% increase in 2016 single-family home production. The multifamily sector won’t be growing at its recent fierce pace, but will maintain its current high level.
According to Associated Builders and Contractors (ABC), non-residential construction will increase 3% to 4% through 2017, with privately funded commercial construction the leading category.

3. Not as Plagued by Labor Problems
Although many contractors of all types report that they have a backlog of projects and construction continues to increase in many sectors, the industry is still plagued by a lack of trained workers.
According to US Bureau of Labor Statistics data, the construction industry lost 6,000 net jobs during August 2016; however, residential specialty trade contractors, which include HVAC, gained 6,100, but non-residential specialty contractors lost 2,900 jobs.
In a June 2016 report from NAHB, HVAC contractors as subcontractors to the construction industry fared better than 8 other subcontractor categories of the 12 measured, in terms of “some shortage” or “serious shortage.”

4. Shipments Improvements
In what might be considered a normal cycle, shipments of gas warm air furnaces and air source heat pumps were much better during May and June and the year-to-date shipments increased throughout Q
Although warm air oil furnaces are a very small percentage of all HVAC units shipped, during Q their negative shipment totals improved relative to Q Year-to-date shipments were better at the end of the period, but were still negative, at -6.6%.
Air source heat pumps also improved in a similar manner throughout the quarter, from
-9.9% during April to +10.0% during June, and also improved year-to-date from -6.1% to %, respectively.

5. Customer Issues That Contractors Confront in the Field
A major challenge for many HVAC contractors is accurately answering customers’ question about how long their equipment should last and be replaced. A furnace in the cold upper Midwest should have a 20-year life, according to a contractor in Green Bay.
He deems any HVAC equipment that “has been in operation for more than two-thirds of its expected life and needs repairs that exceed 25% of the full replacement cost” is ready to be replaced.
Customers expect energy-efficient systems to last longer and to reduce energy costs, but often don’t because they are not maintained as well as they should. In addition, many installations are rush jobs, which contribute to long-term inefficiencies.

6. HVAC Is Strong Market for Tech Innovations
Much like the automotive market, HVAC contractors are discovering that many customers have already researched the utilization of smart- home and smart-building technologies available today and with the expansion of the Internet of Things.
US government scientists and researchers at the University of Florida have developed a new method for residential water heaters that “draws energy from the surrounding air as well as from natural gas,” and could generate better than 100% energy efficiency.
Geothermal technology continues to improve and has become more popular with residential and commercial customers and especially in urban areas because of the small installation footprint; plus, systems can reduce heating and cooling costs by 30–50%.

7. Advertising Strategies
A promotional idea that has worked well for a Greenville, SC HVAC contractor is a “Girls Not Out” event at the contractor’s shop, during which attendees receive information and demonstrations about specific HVAC equipment and, of course, there are refreshments.
Although the approaching holiday season doesn’t generate much business for HVAC contractors, they can remain upfront in customers’ minds by placing a wreath on the front of trucks, supporting a charitable holiday event, sending holiday cards, etc.
Although most people will be thinking about the holidays, HVAC contractors can distribute a sales letter or direct mail piece (but before December 10th) with a holiday greeting and a special offer or discount that is valid from December 26th through the end of January.

8. New Media Strategies
HVAC contractors have the opportunity to use a blog and/or social media videos to explain the value of service contracts and maximize revenues from them. Some contractors have been successful with payment programs or a “club membership” approach.
Homeowners also want information on energy- efficiency and smart-home and other technologies and, according to a research firm, “Proactively providing customers new and useful information increases customers’ likelihood of repurchase by 32%.”
Use social media to engage and encourage your customers to participate in your holiday charitable event. For example, offer a service discount for each toy they contribute to Toys for Tots or canned food items to a local shelter.