HVAC & Plumbing Contractors

The 107,000 HVAC and plumbing contractors in the US provide installation, repair, and maintenance services for air handling and water management systems. Just over 60% of HVAC and plumbing contractors are solo operators. Contractors may specialize in residential, commercial, institutional, or industrial service.

Dependence On Construction Industry

Demand for HVAC and plumbing services is highly dependent on trends in the construction industry.

Increasing Sophistication Of HVAC Systems

Demand for improved efficiency in the non-residential market has led to increasingly complex HVAC systems and automated monitoring programs.

Jul 17, 2026 - New Housing Law Could Boost Development

• According to The New York Times, the bipartisan 21st Century ROAD to Housing Act became law in July as the largest federal housing measure in a generation. The law aims to encourage more housing through targeted policy changes, incentives for faster local permitting, support for build-to-rent communities, and reforms that could expand manufactured and modular housing. Over time, increased residential construction could create more work for HVAC and plumbing contractors as new homes require heating, cooling, water, and sewer systems. The law also seeks to reduce barriers to factory-built housing and reward communities that increase housing supply. However, experts say the measure contains little new funding, leaves key decisions to state and local governments, and is unlikely to meaningfully improve housing affordability in the near term.
• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• Building electrification projects should begin with improvements to the building envelope to maximize heating and cooling efficiency, according to Facilities Dive. Experts at the ASHRAE Annual Conference said better insulation, air sealing, and high-performance windows can significantly reduce energy demand and allow all-electric HVAC systems to perform effectively, especially in existing buildings. An ACEEE report found that modest weatherization measures can cut energy use by 12% to 18%, while deeper envelope retrofits can deliver about 33% savings. For HVAC contractors, the trend could increase demand for integrated retrofit projects that combine high-efficiency HVAC equipment with envelope upgrades to improve system performance, meet energy codes, and support building electrification goals. Experts also said envelope improvements can reduce building loads by 10% to 40%, extending the life and efficiency of existing facilities.
• Fitch Ratings revised its 2026 outlooks for the US homebuilding and North America building products sectors to deteriorating from neutral. The agency cited affordability challenges, weak consumer sentiment, and mortgage rates expected to remain near 6.5%. For surveying and mapping services firms, weaker single-family construction activity and slower housing turnover could reduce demand for residential boundary surveys, subdivision planning, site development, and other land-related projects tied to new home construction. Fitch expects new home sales to decline 2.5% and single-family housing starts to fall 4.5% this year, while homebuilders cut prices and offer incentives to attract buyers. Nonresidential construction tied to data centers and power infrastructure is helping offset some residential weakness, creating opportunities for surveying and mapping firms serving those projects.

Industry size & Structure

The average plumbing and HVAC contractor employs 12 workers and generates about $2.9 million in annual revenue.

• The HVAC and plumbing contractor industry consists of 107,000 companies, employs more than 1.3 million workers and generates $306.3 billion annually.

• Just over 60% of HVAC and plumbing contractors are solo operators and generate about $78,300 annually.

• Major customer segments include single family homes (20% of industry business), office buildings (10%), manufacturing and industrial buildings (5%), educational buildings (8%), commercial buildings (7%), health care and institutional buildings (6%), and apartment buildings (4%).

• Large companies include EMCOR Group, Comfort Systems USA, Johnson Controls, and ARS Rescue Rooter.