ZEN Industries eNewsletter:
December 2018
Tariffs and Trends in HVAC
2019, a Year of Challenge and Promise
 In
a time of changes, the future is always uncertain.
As we head toward 2019, change is impacting the HVAC industry on
several levels and it remains unclear how forces like tariffs,
regulations, and trends in technology will ultimately balance out.
The good news is that the domestic HVAC industry continues to grow.
According to the
HVAC Insider, HVACR manufacturers reported positive sales growth
in 2018 and 87% of respondents expect continued growth across all
market segments in 2019.
The U.S. Bureau of Labor Statistics predicts that the market for
HVAC labor is set to grow by at least 9% over the next 8 years,
which means adding upwards of 12,000 new jobs for sheet metal
workers.
Building construction has been strong in 2018, which is good for the
HVAC industry. Office construction is up 14.7% and commercial space
is up 8.4%. However, according to an article by Kim Slowey at
ConstructionDive, there is some concern that office construction
could slow in 2019.
As always, there are forces at play in the HVAC market sure to have
unforeseen consequences for both good and bad. The ones making the
most headlines today are tariffs and trade wars. While international
trade is a complex subject, reliable consequences of things like
tariffs and trade wars include:
-
Volatility in the HVAC market
-
Greater difficulty in accurately quoting
HVAC jobs
-
Passing increased costs on to the
customer
One concern in the HVAC industry is that current US domestic steel
and aluminum production capacity is too small to meet domestic
needs. While tariffs may ultimately spur domestic production, the
immediate future is likely to be one of price increases.
Increased prices for new installations could provide incentives for
end users to opt for repair over installing newer, more efficient
systems, or even delaying projects until international relations are
more settled.
New Regulations
 Joining
the forces of growth and trade uncertainty in 2019 are new
compliance guidelines from the Department of Energy.
Billed as “largest energy-saving standard in history,” the DOE divided
its new standards into two phases, with the first taking effect at the
beginning of this year. Phase One focused on energy-efficiency increases
in all air conditioning RTUs by 10 percent, effective January 1, 2018.
Phase Two, slated for 2023, ups the efficiency increase requirement to
30 percent and includes warm-air furnaces as well.
While new regulations are often thought of as restricting, the DOE
projects that “contractors and distributors can expect a 45 percent
increase in sales by retrofitting or implementing the new RTUs on
commercial buildings.”
That said, it’s a complex change, and geography, climate, and topography
will all affect how the new codes are adopted, state to state.
Technology Trends
 At
the same time trade disputes and new regulation buffet the market,
technology in the HVAC field continues to advance at a rapid pace.
According to an article on the Aeroseal website, there are no fewer than
40
Amazing HVAC Industry Trends. A few of these include:
-
Demand for HVAC equipment is forecast to
increase 6.8% next year, reaching a total market of $20.4 billion.
-
Ductless HVAC systems could come to represent
up to 15% of the total industry revenues in the next 5 years.
-
Electronic air cleaners are already 40x more
efficient than traditional filters and improving.
-
Many HVAC companies are automating their
sales and service processes, allowing them to cut customer
acquisition cost and keep pricing competitive.
Advancing technology in HVAC generally provides for cost-savings in
energy efficiency and lower lifetime maintenance. The savings are often
so significant that a greater upfront cost offers no barrier to
investment.
Choose ZEN Industries as Your Service Partner
 How
can you confidently run your HVAC business in a time of conflicting
forces with uncertain outcomes?
Find an experienced service partner, one with the experience to help
guide you through the rough spots and take advantage of your
opportunities.
In
anticipation of a changing HVAC market,
ZEN Industries
has developed a comprehensive suite of services that HVAC contractors
can take advantage of.
These include:
-
Precision Estimating. Our
experienced teams use the latest software in ways that help you
boost sales, decrease turnaround time on quotes, and streamline the
entire sales process.
-
Shop Drawings and Take Offs.
We deliver up to 50% faster than traditional turnaround times,
eliminating drafting errors and meeting SMACNA standards with ease.
-
Coordination Drawings.
Working with Building Information Modeling (BIM) data, we can
precisely position ductwork in virtual models, eliminating conflict
between the trades on-site and resulting in significant savings.
-
Duct Fabrication. With
20-years’ experience on the cutting edge of the industry, our coil
lines and plasma tables are among the most efficient in the
business, giving you a pricing edge even over bending sheet metal in
house.
-
Proactive Delivery. Our
premium service shrink-wraps and labels duct so that installation
crews receive precision cut puzzle pieces they can hang and bang
with ease. On large jobs, we can time delivery floor by floor or
area by area, to avoid confusion as to which resources are used
where.
Throughout the entire process we work to optimize the number of standard
lengths of duct and minimize the number of joints and fittings.
At ZEN Industries, we’ve seen
automation and improved workflow processes deliver real cost
savings between 30% and 35% in an industry where labor is
becoming scarcer and more valuable by the day.
Want to hear more, call us at 877-600-0274, or visit
our Contact Us
page today!
The ZEN Way
When you put our unique approach together with our time and money saving
processes, what do you have? We call it The ZEN Way,
and it results in proven cost savings of between 30% and 35%.
Those are the kind of savings that allow HVAC contractors to grow their
business and dominate their local markets. At ZEN, our greatest
satisfaction comes from playing a part in your success.
Call us today at 877-600-0274, or send us your inquiry
using our easy
Contact Form.
Success in All About Great Service
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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