United States. HVAC/R manufacturers reported positive sales growth in 2018 according to the latest AHR Expo survey and ASHRAE Journal Annual Economic Outlook Survey. Last year's confidence in the industry's economic outlook is expected to remain in 2019, with 87% of respondents anticipating positive business prospects heading into the new fiscal year.
The report states that the HVAC/R market is poised for continued business growth. Reports for 2018 are at an all-time high, with 44% of respondents reporting a significant increase in sales of more than 10% year-on-year; this is up from an impressive 2017 record of 35%.
"This is considerable data that confirms the continued growth of our industry, even among market changes and the issues faced by professionals," said Clay Stevens, manager of AHR Expo. "It's a further indication that the changing market has the potential to grow unexpectedly, and industry professionals need to be aware of the latest technologies and equipment available to them. "AHR Expo is a catalyst for the growth of this business, as engineers, contractors, manufacturers and other professionals from all facets come together to share ideas that promote the industry."
The AHR Expo offers visitors the industry's best opportunity to keep pace with the rapid pace of change and innovation. The survey supports this idea, revealing an increase from 5% to 64% (up from 59% last year) of responding organizations that reported their intention to introduce new products at the 2019 Fair. The AHR Expo, co-sponsored by ASHRAE and AHRI, is held concurrently with the ASHRAE Winter Conference. The event will be held January 14-16, 2019 at the Georgia World Congress in Atlanta.
Expected market segment growth across all sectors
Respondents expect to see steady growth across all market segments in residential areas; heavy commercial light commercial; schools; non-school institutional buildings; office buildings; accommodation; manufacturing/industrial; data centers/telecommunications; hospitals/healthcare; restaurants/hospitality; and laboratories/clean rooms. Of these, accommodation is forecast to experience the fastest growth, with projections increasing by 10% over last year by 64%. Overall sector growth predictions have also increased compared to last year, with positive outlook across all markets at nearly 60% or better forecasts of excellent or good growth projections for 2019.
For the third year, the report shows a shift in potential market drivers for business, with modernization and renovations leading the way for 2019 at 36%, up nearly 10% from last year. Previous years saw prospects for new construction, which were the most rated in 2018; and maintenance and replacement in 2017. This fluctuation in business prospects further supports the changing HVAC/R market and the need for industry professionals to stay active in industry conversations and trends through participation in industry events such as AHR Expo.
As expected, reliability remains the customer's most important requirement when making purchasing decisions. Responses indicate a steady increase in energy efficiency and indoor air quality as top-rated factors for purchasing decision-making. Energy efficiency grew the most, with an increase from 6% to more than 96% of respondents, so it is very important in its considerations. This aligns with the answers for the most important trend or issue with the potential impact for businesses in 2019; the leader is the Internet of Things (IoT) and the rise of connected buildings in relation to energy efficiency and intelligent control.
Issues of concern are reported as rising fees and the need to hire more professionals in the HVAC industry. These and other topics will be discussed during the 2019 Education Program.
The Annual Economic Outlook Survey of HVACR manufacturers is sponsored by AHR Expo, the world's largest HVACR event, and the ASHRAE journal.
Source: AHR Expo.
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