HVAC & Plumbing Contractors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 105,000 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.
Industry size & Structure
The average plumbing and HVAC contractor employs 11 workers and generates about $2 million in annual revenue.
- The HVAC and plumbing contractor industry consists of 105,000 companies (including solo operators), employs more than 1.2 million workers and generates $218 billion annually.
- Just over 60% of HVAC and plumbing contractors are solo operators and generate about $65,200 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.
Industry Forecast
HVAC & Plumbing Contractors Industry Growth
Recent Developments
Feb 12, 2025 - Builders Rank Top Headwinds for 2025
- Except for inflation, which some builders expect to improve this year, the challenges most builders foresee for 2025 are much the same as the ones they faced in 2024, according to a recent survey by the National Association of Home Builders (NAHB). More than three-quarters (78%) of builders said high interest rates will likely be the key problem they face in 2025, down from 91% in 2024. Other significant issues builders expect to face this year include buyers pausing purchases as they wait for interest rates and prices to drop (74% of respondents), cost and availability of developed lots (65%), building materials prices (64%), and cost and availability of labor (64%).
- US private residential construction spending increased 1.5% in December 2024 from November and was up 6% year-over-year. Private residential spending growth in December was led by a 1% rise in new single-family construction spending compared to the previous month, but single-family spending was down 0.8% compared to December 2023. New private multifamily construction spending declined by 0.3% in December 2024 compared to November and was off by 10.5% year-over-year. December’s rise in private residential construction spending marked the third consecutive month of growth.
- North American construction and engineering spending in 2025 is expected to grow by 2% after increasing an estimated 6% in 2024, according to FMI’s first-quarter 2025 North American Engineering and Construction Outlook. With growth of 19%, the data center sub-sector will lead 2025 nonresidential building construction, followed by public safety (9%), amusement and recreation (7%), and power (7%). Commercial construction spending is expected to decline 9% in 2025 amid a 6% decline in warehouse demand, which accounts for more than half of annual commercial spending. Lodging construction spending is forecast to drop by 7%, and stubbornly high office vacancies are expected to hold new office construction to 2% growth in 2025.
- Home remodeling spending is expected to see slight gains in 2025 after two years of weakening expenditures, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase by 0.4% to $513 billion in the first quarter of 2025 compared to Q1 2024. In the second quarter of 2025, remodeling spending will rise quarter-over-quarter to $505 billion, up 0.7% from Q2 2024. Spending will then increase to $506 billion in Q3 2025, up 1.2% from Q3 2024. In the fourth quarter of 2025, year-over-year spending is forecast to rise 1.2% to $509 billion. Joint Center expects improvements to be supported by rising home values, a steady labor market, and gradually improving existing home sales. Better retail sales of building materials and solid remodeling permitting activity should also support home improvement spending.
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