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ZEN Industries eNewsletter:
January 2020

HVAC Market Changes in 2020

HVAC Market Changes in 2020As the New Year gets under way, 2020 promises to open a decade of both challenge and hopeful expectation.

Both market forces and regulations are changing, a situation which often brings with it a fear of business slow downs and disruption. Yet as the industry adjusts to new efficiency requirements and the phase out of old refrigerants, there is still reason to anticipate continued growth.

The HVAC market is projected to surpass over $98 Billion in North America this year. A compound annual growth rate of nearly 5% is expected over the next 5 years, buoyed by continuing advances in the construction sector.

HCFC Refrigerants are Phased Out

HVAC Regulation ChangesPart of a two decades long phase out of ozone depleting, greenhouse gas refrigerants, January 1, 2020 saw the phase out of the hydrochlorofluorocarbon R-123, which can no longer be used in new HVAC equipment. Its use will continue in servicing older equipment until 2030.

R-22, another HCFC that has long been on a gradual phase-out timeline, can no longer be produced in the US or imported for use in any equipment as of 2020. Of course, many commercial systems continue to use R-22. They are now officially obsolete, and when next they require maintenance, these systems must be replaced instead.

When it comes to understanding changes in regulations and efficiency ratings for commercial HVAC, Emerson recently produced a handy reference on the 10 things You Need to Know about Commercial HVAC Regulations.

Tax Codes Incentivize Commercial HVAC

In the 2020 Doge Construction Outlook, prepared by Dodge Data and Analytics, it is projected that the total U.S. Construction market may slip as much as 4% from 2019 levels. How then, can HVAC continue its years’ long pattern of growth?

As mentioned in the previous section, one force will be the replacement of obsolete HVAC systems that can no longer be maintained now that their obsolete refrigerants have been banned.

Another positive force is the Internal Revenue Code, Section 179. It allows businesses to deduct up to $1 million of the cost of an HVAC purchase in the first year, up to a maximum purchase price of $2.5 million.

These tax benefits are slated to phase out in 2023, making the next few years the perfect time for commercial customers to invest in new, more energy efficient systems.

Advancing Technologies

Technology advances are happening on two fronts. The first is in introducing new green technologies and energy efficient control systems. These include new zoning systems, smart thermostats & sensors, and both dual-fuel and air-source heat pumps.

Advances in geothermal, solar, and Desiccant Enhanced Evaporative Systems (DeVAP) continue to make measured progress.

But as important is a second front of high-tech improvements. These advances are often made behind the scenes, in areas of fabrication and logistics. From shop drawings for ductwork to materials estimating, and from building information management to duct fabrication, new levels of precision and error reduction have both reduced costs and delivered increased energy efficiency and comfort.

What ZEN Industries Has to Offer

At ZEN Industries, we’ve built our business around offering contractors the services they need to achieve a better bottom line. After all, if we can help you succeed and improve profits, we know you’ll come back to ZEN again and again.

It starts with our complete HVAC ductwork line, including high-quality fabrication of:

  • ZEN Industries Duct FabricationRectangular Slip & Drive
  • Rectangular TDF
  • Rectangular Double-Wall
  • Rectangular Welded
  • Spiral Single-Wall
  • Spiral Double-Wall
  • PCD Polyvinyl Coated Ductwork
  • Round Pipe Welded
  • Specialty Items and Accessories

It continues with value-added services like Shop Drawings, HVAC Estimating, and automating HVAC production requests.

The benefits of working with ZEN Industries include:

  • Affordable, high-quality duct, fittings, and accessories – delivered on time and within budget.
  • Reliable shop drawings delivered up to 50% faster.
  • Errors reduced to historic lows while meeting the most demanding specifications.
  • Elimination of double data entry and Improved estimating accuracy.
  • Assuring that each duct section is precision fit to its location, connections, and support.

We work hard to stay ahead of the curve, always striving to help assure the success of your next project.

Would you like to work with an HVAC fabricator that goes beyond high-quality ductwork to deliver the kind of innovation, insight, and process optimization that will save you money and improve your bottom line?

Call us at 877-600-0274, or visit our Contact Us page today!

Success in All About Great Service

Founded in 1999 on a set of unbreakable core principles, ZEN strives to provide top-quality fabrication, advice, and planning for our customers.

The quality of our HVAC duct work is of the highest caliber and our price is competitive with the best in the industry. Of course, ZEN Industries Inc. gains its edge with unbeatable service, and service means people - it's about our experienced personnel and the relationships we build with each and every customer

Learn more at www.ZENindustries.com


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