A lot of changes are on the horizon for HVAC contractors. The rollout of the new SEER2 efficiency levels and testing during a period of supply chain disruptions is clumsy at best. Here is how you can navigate the turbulent waters.
In brief, manufacturers are being required to utilize a different testing procedure that takes air handler fan energy into account. Next, the minimum efficiency of residential equipment is being increased. Ludicrously, for the southeast and southwest, the cutover is not based on the date of manufacture, but the date of installation. Enforcement is expected to come from customers, competitors, or even disgruntled former employees.
Complicating things are the supply chain issues. Manufacturers are scrambling to fill holes in their upcoming SEER2 product lines.
Throw in meteorological conditions that mirror 2011 and 1983 (i.e., third year of a strong “La Nina” and a strong, negative Pacific
Nevertheless, January will arrive rapidly. Here are five steps contractors should take to get ahead of the SEER2 regulations.
1. Pay Attention
Be alert for information on the changes, based on your region. Watch the trade press. Visit manufacturer and national distributor 
If you are in the southeast or southwest regions, you risk getting stuck with inventory you cannot install.
Every time your territory manager calls on you, ask for the latest information on the changes. Ask about the inventory. Ask about the product line.
Ultimately, the responsibility for understanding the changes is yours alone. If you haven’t been paying attention, start.
2. Liquidate Inventory You Won’t Be Able To Sell
If you are in the southeast or southwest regions, you risk getting stuck with inventory you cannot install. Get rid of it. Talk with your
territory manager about rebalancing at the end of cooling season. They can ship products north and still sell them.
3. Stock What You Can Sell
Manufacturers are scrambling to fill out their SEER2 product lines. There are holes and availability issues. If you intend to stock product, stock product you can sell after year end. Unless you know you with certainty you can move product before year end or have a commitment from a manufacturer or distributor to rebalance your inventory, only order SEER2 products from here on out.
4. Arrange For Extended Term Financing
Add financing partners. There are some new and innovative programs involving equipment leasing. Explore these. Work through the pros and cons. Decide if you can build a sales model around them.
Equipment prices are projected to jump another 15% to 25%.
At the very least, ensure that one or more financing partner will offer extended term financing (i.e., 10-year financing). If equipment
CLICK FOR EFFICIENCY GUIDE FROM JOHNSON CONTROLS
5. Alert Your Customers
Start communicating the upcoming changes with your customers now. Let them know that it will never cost less than today for a new air conditioning system. If they anticipate the need to replace in the next 24 months, they can save significantly by replacing now before the new regulations take effect.
Follow the steps to avoid getting blindsided in 2023. Then, all we have to worry about is the refrigerant changes. Yikes!
In an uncertain, ever changing contracting environment, it is more important than ever for you to stay abreast of the state-of-the-art industry practices and coming changes. How can you do that? Attend the Service World Expo October 18-21 in Tampa, Florida. This is the largest and best show focusing on the residential service side of the business. Register today at www.ServiceWorldExpo.com.