April 29, 2020, Lewisville, Tex. — Matt Michel always keeps his head when all about him are losing theirs.
This time, the CEO of Service Nation has provided a very positive analysis of the heating, ventilation and air conditioning replacement market, and he predicts 2020 will be a tremendous year for HVAC service and replacement contractors.
Basically, Michel says, the math doesn't lie, and he proves it, in a video he's posted to YouTube, HERE. Actual AHRI shipment data provides the basis for his prediction.
"Fifteen years ago, in the best year in the history of HVAC, we had 8.6 million residential installations. Last year, a late summer resulted in 500,000 deferred replacements. Assuming a a 15-year lifespan for systems installed in 2004-2005, when you add those together, the replacement market is projected to grow 26%."
"I don't know how we can handle 9.1 million replacements [due to the HVAC labor shortage], so it's going to be a little bit short of that, but it's still going to be a lot more than it was last year. This stands to be one of the best years in the history of the industry," Michel says.
In today's current business environment, Michel says enterprising contractors should act now to gain business that's being ignored by "turtles" who have withdrawn from the market.
"We recommend you increase your advertising and marketing. When it gets harder to find a customer, put more effort into finding them.If you can increase your advertising and marketing, the withdrawing contractors disappear and you gain market share.You will make gains that they will never be able to make up."
"Line up good consumer financing to make systems affordable to the people who are concerned or worried about money. Recruit technicians and installers from competitors who are withdrawing. There are good people out there, and this is a prime opportunity to increase your skilled labor."
Find Matt's YouTube video HERE.