HARDI reports average sales growth for its reporting HVACR distributor members increased 7.3 percent in July 2013. What other economic factors are at play?
What drives consumers to purchase HVAC equipment? That’s one of the questions that Decision Analyst Inc., an Arlington, Texas-based market research firm, sought to answer in its comprehensive American Home Comfort Study of 2012-2013.
“Contractors beware! If you are at all like me, you have been anticipating that the new residential construction market is just a year or so away from rebounding to previous heights.” Is it true, or is there more to this story?
Even though the recession was technically over several years ago, and some economic indicators point to a modest recovery, HVAC contractors remain cautious, as evidenced by the Air Conditioning Contractors of America (ACCA)'s December Contractor Comfort Index (CCI), which measured 53. Weighted and averaged into one number, a CCI of 50 or above reflects anticipated growth. The number for December 2011 was lower than 12 months earlier, when the CCI was 61.
It’s a tough crowd of consumers out there these days, and
the uncertain economic climate is certainly playing a role in their behavior. According
to distributors, consumer behavior is leading to a drop-off in the replacement
market, as well as a drop-off in the high-end market. Yet despite these
worrisome trends, distributors are still seeing areas of growth and employing smart
tactics to keep their businesses in good shape.