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.

Oct 17, 2026 - Remodeling Market Sentiment Holds Steady

• The National Association of Home Builders (NAHB) reports that remodeling market sentiment remained relatively stable during the third quarter despite economic uncertainty and labor shortages. The NAHB Remodeling Market Index increased one point from the second quarter to 62. Readings above 50 indicate that more remodelers view conditions as good than poor. Current conditions held at 70, while future indicators increased two points to 54. NAHB expects remodeling activity to remain stable in 2026 and grow slightly in 2027. For HVAC and plumbing contractors, continued remodeling activity could support demand for replacement equipment, bathroom renovations, system upgrades, and energy-efficiency improvements. However, competition for skilled workers, elevated materials costs, and hesitant customers could create scheduling difficulties and pressure project profitability.
• Existing-home sales improved modestly in September, according to the National Association of Realtors (NAR), although elevated borrowing costs continued to constrain buyer activity. Sales increased 1.5% from August to a seasonally adjusted annual rate of 3.99 million homes, but declined 2.2% from September 2025. Available inventory increased 1.9% from August to 1.60 million homes, equivalent to 4.8 months of supply. The median existing-home sales price increased 1.3% from a year earlier to $417,500. Housing transactions can generate demand for HVAC and plumbing inspections, equipment replacements, repairs, and renovations as properties change ownership. However, limited sales volume and higher mortgage rates could reduce opportunities for transaction-related services. Growing inventory could also increase pressure on sellers to complete repairs before closing.
• An ongoing antitrust lawsuit involving US manufacturers of PVC pipe, conduit, and fittings has drawn additional attention to major distributors, according to Supply House Times. Plaintiffs identified six distributors as alleged co-conspirators, including Ferguson Enterprises, Core & Main, and Hajoca. The distributors have not been named as defendants, and the allegations against them have not been proven. Proposed settlements involving manufacturers and other parties total approximately $415.4 million across various purchaser groups, with some agreements still awaiting approval. The litigation concerns allegations that companies exchanged competitively sensitive pricing information and coordinated product pricing. For plumbing contractors, potential changes in PVC pricing practices could affect material procurement and project bids. Contractors may also scrutinize supplier pricing and competitive alternatives as the litigation proceeds.
• A growing share of newly constructed single-family homes rely on private water and sewage systems, according to the National Association of Home Builders (NAHB). An analysis of US Census Bureau data found that 10% of single-family homes started in 2025 used individual wells, while 17% relied on private septic systems. Both shares increased by one percentage point from 2024. Regional differences were substantial, with 42% of new homes in New England using private wells and 52% using individual septic systems. Private water and wastewater systems can create opportunities for plumbing contractors in pump installations, water treatment equipment, pressure systems, and plumbing connections. These installations also require coordination with well drillers, septic contractors, and local permitting authorities.

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.