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ATLANTA – The largest region of opportunity for growth in the HVAC industry is the Deep South, according to a new report from one of the leading construction data providers. CMD will release its HVAC Industry Report at the AHR Conference on January 26, offering insight to professionals at the industry’s largest conference.
According to the report, which can be picked up at CMD’s booth (#2357), the South is responsible for 37 percent of the available opportunities in the North American HVAC market. This fast-growing region of the United States offers many opportunities across the construction industry, and HVAC development is no exception.
“Producers of HVAC equipment should be optimistic about their potential over the next couple of years,” said Alex Carrick, CMD chief economist. “Not only will they see ongoing cyclical improvements in construction, but there are trends within the various types-of-structure that will give them a boost as well, not only in the South, but across the North American landscape.”
The report also notes the top three HVAC segments (education, medical and commercial offices) consume 53.3% of the overall market. Education alone makes up one quarter of the entire available market, and is also the fastest-growing segment.
Currently, the biggest ticket HVAC sales items for manufacturers (furnaces, cooling units, etc.) are in high-rise structures. This lines up well with the trend in North America toward stronger multi-unit residential construction and mixed-use project starts.
“The 2008-09 recession, with its accompanying tidal wave of foreclosures, rendered many individuals and families leery about undertaking a new single-family home purchase,” said Carrick. “Societal and demographic trends indicate stronger multi-unit residential construction starts relative to the single-family market segment, and that bodes well for the HVAC industry.”
The HVAC Industry Report includes an in–depth analysis into these and other topics, including analysis of HVAC segments and regional spends, the top areas for growth and uncovering opportunities, and the areas where HVAC companies should be focusing resources next.