2. A Market That’s Not Cooling Anytime Soon
According to The Indoor Environment & Energy Efficiency Association, its Contractor Comfort Index of its HVAC contractor members was 77 for February 2015, compared to 74 for January and 72 for February An index of 50 or more indicates positive short- term growth.
This data and others (see below) resulted in Air Conditioning, Heating and Refrigeration News to report during March 2015 that HVAC manufacturers, distributors and contractors all had optimistic outlooks for 2015 and beyond.
According to CMD Group, US HVAC manufacturers’ sales totaled almost $45 billion for 2014 and $3 billion in the Canadian market. As of November 2014, new US orders increased 5.4%, compared to 2013, and Canadian orders increased 30.7%.

3. Shipment Achievement
According to data from the Air- Conditioning, Heating & Refrigeration Institute (AHRI), there were 461,835 central air conditioners shipped during December 2014, a 50.9% increase, compared to December 2013’s 306,141 units.
Total central air conditioner shipments for increased 7.1%, or a total of 4,499,660 units, compared to 2013’s 4,201,068. Shipped heat pumps increased 19.6% during 2014; the two systems combined for an 11.1% increase.
Shipments of air conditioners during January 2015 continued this robust growth with 479,484 units or 29.4% more than January Air-source heat pumps’ increase was 22.9% or a total increase for both units of 29.4%.

4. When Building Booms, AC Sales Zoom
During January 2015, the seasonally adjusted annual rate (SAAR) of new single- family homes sold was 481,000, 5.3% more than January February 2015’s SAAR was 539,000, which is a 24.8% increase, compared to February 2014.
Existing home sales during February also registered an increase, with a total of 294,000, 4.3% more than February 2014, and a SAAR of 4.88 million, or a 4.7% increase, compared to February 2014’s SAAR of 4.66 million.
Considering the harsh winter in the Northeast, the total SAAR for January and February 2015 was only 60,000 single-family homes sold. The combined SAAR for the South region was 603,000; the West, 260,000; and the Midwest, 116,000.

5. Contractors’ Challenges and Opportunities
One of the big issues for the residential HVACR market during 2015 will be the reduction and eventual elimination of the R-22 refrigerant because it depletes the Earth’s ozone layer. R-22 is still used in 75–80% of currently operating equipment.
A Q report from the CMD Group estimated that the southern region of the US holds the greatest potential for growth for the HVAC industry, at 37% of the entire North American market. The opportunities are more likely to be in multi-family construction than single-family homes.
According to a mid-2014 study from Grand View Research, the North American air conditioning systems market will total $52.56 billion by The residential market and portable air conditioners are forecast to be the largest sectors during the period.

6. Advertising Strategies
Air conditioning contractors can use TV advertising during the spring and early summer to promote system checkups. As the summer progresses, they should switch their ad message to quick-response customer service as residential systems need repair and replacement.
With the reach and frequency of TV, air conditioning contractors can offer a free Summer Cool-Off Package incentive for a threshold amount spent. The package could include a free family pass to the closest waterpark or similar items that would help a family stay cool when not at home.
Air conditioning contractors could consider approaching condominium associations and offering to host an air conditioning seminar for residents at the community center, presenting the latest trends, tips on saving on electric bills during the cooling season, etc.

7. Advertising Strategies
Recommend that retailers produce TV spots with customer testimonials, and then repurpose those testimonials as reviews in video and text form on Websites and social media.
Advertise a free first hour of a service call for recent buyers of existing homes for a general AC checkup, and then target those homeowners for maintenance agreements.
Help AC contractors develop co- promotional opportunities with local homebuilders as the housing market grows and as a way to share the cost of TV advertising.

8. Advertising Strategies
Encourage advertisers to create commercial messages that target women, 40 years of age and older. Show how well your station’s programming reaches this demographic.
Recommend that advertisers emphasize the green technology products they offer and create a discounted package for homeowners who replace their older HVAC system.
Air conditioning companies should advertise on television in order to be top-of-mind for system servicing and repairs. Commercials should be run seasonally as reminders of service and maintenance cycles.

9. Social Media Strategies
An air conditioning contractor can maximize consumers’ perception of him or her as the local AC expert, with regular blog postings and other informational uploads that help consumers save money on electric utility costs: addressing door and window leaks, regular replacement of filter, etc.
Ask social media visitors to share what they’ve done in their homes to make them more environmentally friendly and green living spaces, with photos and videos. Invite parents to have their children make drawings about saving the environment and upload them to the AC contractor’s sites.
AC contractors should utilize one of the many charts/graphs available from various industry sources to help homeowners with the repair vs. replacement process. With this knowledge, homeowners are likely to be more receptive of contractors that advise replacement as more economical than repair.