HVAC industry shows remarkable growth amplified by government regulations and repair and replacement of systems in older homes
TORONTO, May 19, 2022 /PRNewswire/ – Jobbeurthe leading provider of home service management software, today released its Home Services Economic Report: HVAC Special Edition, which provides an overview of the performance of the home services category, followed by an in-depth analysis of factors impacting the heating, ventilation, and air conditioning (HVAC) industry. The report includes expert opinion, external data and aggregated proprietary data from over 160,000 home service professionals who use Jobber.
Home improvement and maintenance spending continues to show strong growth, with the latest quarter hitting record growth. Year-over-year revenue growth in the home services category overall increased by 19% in the first quarter of 2022.
“Home service continues to perform well relative to other consumer spending categories, largely due to an increase in new home construction and renovation projects,” said Sam Pillar, CEO and co-founder of Jobber. “While talent shortages and supply chain issues are impacting the ability of HVAC companies to hire and take on new projects, the industry as a whole is seeing tremendous demand that will keep technicians and business owners for years to come.”
HVAC Industry Stays Hot
The HVAC equipment market, valued at $130 billion in 2021, is expected to reach $206 billion by 2030. A number of factors have helped drive the recent growth and forecast of the market, including:
- A new high construction: March 2022 marked record growth in the number of new building permits issued;
- Sustainability creates new demand: Government regulations to reduce energy consumption and carbon emissions from HVAC systems are creating demand from homeowners for newer systems;
- Aging homes need repair: More than 50% of US homes are over 40 years old, creating a strong market for repairing and replacing HVAC systems and other components
New Kids on the Block: Demand Leads to New HVAC Companies
The demand for HVAC services has exceeded the market’s ability to provide services. This has spurred an increase in the number of net new HVAC businesses created in 2021 and during this year. This growth is expected to continue throughout 2022.
- Invoice size increases: Rising cost of services and growth in project scope led to a 23% year-over-year increase in invoice amounts for the first quarter of 2022;
- A backlog of jobs: Many HVAC companies are booked through the summer in anticipation of another hot season.
Skills that pay the bills: HVAC creates compelling career opportunities
The HVAC industry is in a hiring frenzy. There are currently more jobs than candidates available, resulting in increases in the salaries offered. Companies able to increase their workforce are reaping the rewards.
- The positions exceed the candidates: It is expected that 1.8 positions will be available for each technician working in HVAC due to the labor shortage;
- Increased labor costs: Median labor cost increased 13% year-over-year in Q1 2022 compared to Q1 2021;
- Hiring generates income: Companies that increased their workforce in the first quarter of 2022 grew by an average rate of 27%, while companies that downsized only increased revenue by 1% on average.
“While inflation remains elevated and interest rate hikes are beginning to take effect across the economy, we believe the HVAC industry will continue to persevere, especially as we approach its high season,” said Abheek Dhawan, Vice President, Business Operations at Jobber. “With businesses waiting for expected work and job openings outpacing qualified applicants, new entrepreneurs and skilled workers have plenty of opportunities to take advantage of.”
To download the Jobber Home Service Economic Report: Special HVAC Edition, visit: https://getjobber.com/home-service-reports/may-2022
About Jobber
Jobber is an award-winning business management platform for small home service businesses. Unlike spreadsheets or pen and paper, Jobber keeps track of everything in one place and automates day-to-day operations, so small businesses can deliver 5-star service at scale. Jobber’s more than 160,000 home service professionals have served more than 12 million homes in over 47 countries. The company consistently ranks among the from Canada fastest growing and most innovative companies by Canadian Business and Macleans, The Globe and Mail, Fast Company and Deloitte. For more information visit: https://getjobber.com/.
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SOURCEJobber
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