HVACR Equipment Manufacturers
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 1,400 HVAC and refrigeration (HVACR) equipment manufacturers in the US produce and sell heating, ventilation and air conditioning systems for residential and nonresidential buildings, as well as commercial and industrial refrigeration and freezer equipment. Firms may also sell commercial and industrial fans and blowers and air purification equipment.
Dependence on Construction Activity
Demand for HVAC and refrigeration equipment is driven by new residential and commercial construction activity.
Energy Efficiency Regulations
HVACR equipment manufacturers are forced to keep up with evolving regulations to promote energy efficiency.
Industry size & Structure
The average HVAC and refrigeration equipment manufacturer operates a single plant, has 105 employees, and generates about $35 million in annual revenue.
- The HVAC and refrigeration equipment manufacturing industry consists of about 1,400 companies, employs 148,000 workers and generates $49 billion annually.
- The industry is somewhat concentrated, as the 20 largest companies represent 53% of industry revenue.
- Large companies include Carrier Corporation, Goodman (part of Daikin Group of Japan), Trane (part of Ingersoll-Rand), Johnson Controls, Lennox International, and Rheem.
Industry Forecast
HVACR Equipment Manufacturers Industry Growth
Recent Developments
Jul 19, 2024 - HVAC Shipments Mixed
- US shipment volumes of central air conditioners increased 3.4% year-over-year in May 2024, but shipments were down 2% on a year-to-date basis, according to the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Shipments of air-source heat pumps fell 3.8% in May compared to a year earlier and 4.8% compared to the first five months of 2023. Gas warm air furnace shipments dropped 1.3% in May from a year earlier and declined 7.6% year-over-year. Shipments of oil warm air furnaces jumped 58.3% in May over June and increased 48.6% over the first five months of last year.
- Total nonresidential building construction spending is projected to rise 6% in 2024 over 2023, according to FMI’s third-quarter 2024 North American Engineering and Construction Outlook. With growth of 28%, public safety will lead 2024 nonresidential building construction, followed by manufacturing (21%), educational (7%), and religious (7%). Some other segments of the nonresidential building sector face headwinds. Commercial construction spending is expected to decline 7% in 2024 amid weaker demand for warehousing space, high interest rates, and tighter lending standards. Lodging construction spending is forecast to drop 6% as consumer budgets tighten and hotel occupancies wane, especially near the market's lower tier. Stubbornly high office vacancies will continue to weigh on new office construction, which is projected to see flat spending in 2024. Despite high interest rates, single-family construction spending is forecast to rise 7% in 2024 as homebuilders reduce home sizes to improve affordability. Spending for multifamily is expected to decline by 1% in 2024 after projects in development peaked at 1 million units in mid-2023. Home improvement project spending will rise 4% in 2024 as homeowners primarily focus on maintenance and repairs amid high materials costs and interest rates.
- Home builder confidence in the single-family market dropped in July to the lowest level since December 2023 amid high mortgage rates and elevated builder financing costs, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell one point to 42 in July 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 31% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged for the thirteenth consecutive month.
- Low- to medium-density multifamily building construction has grown to account for a larger share of the overall multifamily market in recent years, according to National Association of Home Builders analysis of US Census Bureau data. In 2024, there were 450,000 multifamily housing unit completions, marking the highest level in 37 years. Of those, 216,000 were buildings with fewer than 50 units, which was the largest share for low- to medium-density buildings since 2006.
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