In the wake of a global pandemic, groundbreaking technological innovations, and shifting cultural priorities, the country has experienced a long period of economic volatility. However, HVACR contractors have reason to be optimistic about the future.
With inflation up more than 3% over the past year, the cost of living for most Americans has increased. However, HVAR contractors can utilize new policies, ongoing training, and financing tools to grow and scale their businesses.
How Contractors Can Succeed in Today’s Economy
The U.S. is undergoing a major shift toward domestic energy production. Due to this effort and several other climate change initiatives, there is an increase in prioritizing high-efficiency systems that require less energy to function effectively.
With mortgage rates hovering above 7% - up from around 3-4% in 2020, homeowners are looking for ways to optimize their homes for maximum cost savings. This includes updating old, inefficient HVAC systems. Energy audits, typically available for little to no cost, help homeowners identify where they can improve energy efficiency. Contractors should encourage potential clients to have their homes audited to find opportunities for improvement.
Property owners also have a range of incentives th
at help lower the cost of upgrading their current HVACR infrastructure to new, high-efficiency products. For example, Florida residents can save when investing in energy-efficient equipment like heat pump water heaters, central air conditioners, and more. Learn more about energy-saving tax credits in Florida in this article.
What does this mean for contractors? There will likely be a significant market demand for upgrades in the coming years. HVACR
businesses that are well-versed in the most recent legislation can increase sales by encouraging customers to take advantage of several financial incentives.
Rising Interest Rates Present Obstacles, But Financing May Help Ease the Stress
Over the last few years, interest rates have risen significantly. The rise in rates has made construction much more costly, resulting in fewer HVACR system installations. Although higher inflation results in lower demand, generally speaking, some property owners are embracing financing as a way to afford the upgrades and installations they need.
By offering financing plans that include competitive rates and loan terms, contractors can help reduce some of the cost burden placed on property owners. Now more than ever, HVACR businesses must focus on reducing the friction that stands in the way of generating new business.
Training Helps Mitigate Labor Market Shortages – Johnstone University Can Help
Nearly all business sectors have experienced labor issues during the past several years. Whether it’s a shortage of qualified applicants or a lack of funds to adequately compensate skilled workers, the challenges are not unique to the HVACR industry.
Businesses that offer ongoing training to their existing employees have a twofold advantage: First, continuous training creates more valuable employees who can take on new responsibilities that help the business. Second, they reduce the chances of that person leaving for a new job. When hiring is costly, the best strategy is to hold onto your current team and help them develop new skills.
Johnstone Supply – Ware Group provides a comprehensive training program via Johnstone University that helps develop skills, increase knowledge, and build credibility. Focusing on technical, business, customer service, safety & compliance training, and more, our courses offer up-to-date information that gives well-trained contractors a leg up on the competition.
The HVACR industry is rapidly evolving, and having the latest training is a great way to gain a competitive advantage. For contractors, an investment in your employees is an investment in your future.
Strategizing for the Future
Nobody can predict future economic conditions with absolute certainty, but contractors have several fundamental principles to lean on in the coming years. The trend towards higher-efficiency systems is undeniable, and the demand for modern HVACR infrastructure is increasing.
Contractors with a deep understanding of energy-efficient systems and the financing options that make them more affordable to consumers will succeed moving forward. Modernization is becoming not only inevitable but, in many ways, legally required.
The HVACR industry encompasses many different areas of knowledge. Engineering, education, and, increasingly, finance are necessary skills for contractors looking to scale their businesses. It’s easy to rely on the old way of doing things, but a commitment to embracing the evolving economic and technological landscape will pay major dividends in the future.
Johnstone Supply – Ware Group Proudly Supports HVAC Professionals
Johnstone Supply – Ware Group prioritizes contractors and understands what it takes to be successful in today’s economy. That’s why our mission is “Saving you time, making you money.” Although the current economic state presents new challenges that require innovative solutions, we believe there are also many new opportunities for HVACR industry professionals.
Johnstone Supply – Ware Group is the premier resource contractors and technicians can rely on to provide the highest quality OEM parts, along with ongoing training and education. Johnstone University is a valuable that helps industry professionals earn NATE credits in Installation, Service, HVACR fundamentals, and Electrical and Controls.
Contact a team member today to inquire about our current inventory of parts and training opportunities that can help your business thrive.