The Rising Costs of HVAC Service and Repairs
After nearly a year and a half of the global COVID-19 pandemic, we have seen society slowly shift towards a new sense of normalcy, both socially and in the business world. The structure of a new post-COVID business environment has forced businesses to adapt and change the way in which they operate.
With the humanitarian crisis from the coronavirus evolving on a daily basis, we are seeing businesses struggle to continue to serve their customers at a high level. The task of evolving and maintaining a new “normal” has been especially challenging for industries that rely heavily on in-person service and interaction, including a wide range of sectors such as banking, hospitality and home-service.
How COVID-19 is Impacting the HVAC Industry
You may be wondering why costs are rising for HVAC service, parts, and repairs. The demand for HVAC parts, new units, and repairs tend to spike when the weather heats up and our industry is accustomed to receiving price increases from manufacturers yearly. But this year, the COVID-19 pandemic is creating a perfect storm that is making parts and equipment more expensive than usual with quarterly price increases.
Across the board we are seeing manufacturers raise the price of equipment, parts and supplies that are causing consumer prices to soar at an average of 3%-9%. Labor shortages, the lack of availability of raw materials and increased transportation costs are the main factors contributing to inflated prices across the HVAC sector.
The reduced size of the U.S. workforce has had a dramatic effect on the HVAC sector of the home-service industry. The added ability to work from home combined with insufficient wages has led to a decreased labor force that impacts manufacturing and installment of HVAC units. HVAC companies are offering higher wages and bonuses to counteract the shortage of skilled workers which is playing a role in increased prices for the consumer.
Availability of Raw Materials
An additional factor impacting HVAC supply chains is the increased price, or lack of availability of commodities and raw materials. This lack of supply leads to shipping delays. In an effort to mitigate these delays prices must rise accordingly. High demand and low supply of materials used in the HVAC process leads to higher prices for the consumer. These materials include steel mill products, lumber, copper, and aluminum.
Increased Transportation Costs
The cost of both diesel and gas has been rising dramatically in the last few months which has impacted shipping and transportation costs. Increased shipping costs makes materials and parts more expensive, while increased fuel prices make it much more costly for HVAC technicians to perform service. Some HVAC companies are even beginning to reduce their service areas because fuel costs are so inflated.
Being Proactive Can Help Save You Money on HVAC Service
The best way to combat the pitfalls of doing business with an HVAC company is to be prepared. Preparing for regular maintenance and scheduling repairs in advance can help you save time and money in the long run. Homeowners who know their air conditioner or furnace may not last the upcoming season might start thinking about replacement now so they can get the system they want in the timeframe that they need it. With correct planning and evaluation of your system, HVAC repairs and replacement can be completed on schedule – even in today’s unpredictable marketplace.