HVAC & Plumbing Contractors NAICS 238220

Jun 9, 2025 - AI Helps Streamline Operations for Home Services

• Some home-services firms are leveraging AI-enabled tools to increase the accuracy and efficiency of scheduling, customer service, and other operations, according to The Wall Street Journal. One startup, Netic, offers AI-enabled software that can answer and return customer calls, predict maintenance needs based on weather or emergencies, and schedule and prioritize work orders. AI adoption in the home-services trades is being led by private equity firms active in roll-up consolidation in fragmented services industries, including HVAC, plumbing, electrical, and roofing. Integrating AI, which is often compatible with customer relationship management software, can help private equity firms manage their portfolios of home-services firms, boosting efficiency and profits. Large, independent home-services firms are also investing in AI.
• US residential construction spending declined in April compared to March amid a reduction in the number of new single-family developments and rising inventories of unsold new homes, according to Reuters. In a Reuters survey of property industry experts, 90% of respondents believed the Trump administration’s tariff policies would drive up costs and result in fewer homes being built. A housing strategist with Morgan Stanley said, "Looking ahead through the rest of this year and into 2026, we don’t expect mortgage rates to come down much — at least not through the third quarter of 2025 — so affordability will remain pressured.”

• So-called “missing middle” medium-density housing, which includes duplexes, townhouses, and other smaller multifamily properties, has gained in popularity over the last several quarters, according to the National Association of Home Builders. Multifamily properties in the missing middle (2 to 4 units) have generally been out of favor since the Great Recession, but they are experiencing a resurgence. In the first quarter of 2025, there were 5,000 construction starts for housing properties with 2 to 4 units, which was flat compared to a year earlier. However, over the past four quarters, the number of missing middle residential construction units reached 23,000, marking a 53% increase over the four quarters before that period. The missing middle segment’s gains may be limited absent zoning reform that allows for increased density.
• The Trump administration’s tariff policies will likely increase prices for plumbing supplies and HVAC equipment, according to Facilities Dive. On April 9, the Trump administration paused its reciprocal tariff agenda for 90 days for most countries but left in place a baseline 10% import duty on all countries except China, which faced total tariffs of 145%. Canada and Mexico are not subject to the new 10% baseline tariffs, and goods trading under the US-Mexico-Canada Agreement will remain duty-free. On May 9, the US and China agreed to reduce tariffs for 90 days. US imports from China dropped from 145% to 30%, while China’s duties on US goods were reduced to 10% from 125%. On June 4, US tariffs on all steel and aluminum (except Britain) rose to 50% from the 25% imposed in March. The president of government affairs of the Heating, Air Conditioning, and Refrigeration Distributors International said in a statement that the tariffs will affect eight of the top 10 exporters of HVACR equipment to the US, and that any increased costs would likely be passed on to consumers.