Let’s examine the challenges related to commercial HVAC equipment prices.
The global and local economic causes of the HVAC price increases are expected to continue driving equipment costs up again next year. That means the best way to avoid future price hikes on equipment you’ll need in your warehouse or business is to install it as soon as possible.
Inflation still impacts significant construction sectors, while supply shortages are increasing prices. Let’s examine the challenges related to commercial HVAC equipment prices and provide strategies to overcome them.
Increased Material Costs Raises Production Costs
During the pandemic, prices of raw materials like copper, steel, and aluminum rose, leading to price increases across the board for residential equipment. The semiconductor shortage notably impacted manufacturers’ heating and cooling system costs. Since then, the cost of these materials has returned to normal levels; however, manufacturers never reduced the cost to install this equipment to reflect this.
New Environmental Regulations
Increased environmental regulations to reduce energy consumption and greenhouse gas emissions directly impact HVAC equipment prices. The Department of Energy consistently implements new and stricter energy efficiency standards for HVAC systems and refrigerant use, requiring manufacturers to redesign their products to meet these regulations.
These updates often require new production methods, which force manufacturers to invest more money in their facilities. Due to these updates, manufacturing companies must revamp their factories to begin producing them. These investment costs are reflected in refrigerant prices.
HVAC Labor Shortages
The HVAC industry is experiencing a significant shortage of skilled labor, further contributing to rising equipment prices. The demand for experienced HVAC professionals has outpaced the supply, increasing wages and operational costs.
As manufacturers struggle to find and retain skilled workers, they face higher labor costs, which are passed on to consumers through increased equipment prices. Furthermore, the labor shortage extends to installation and maintenance services. With fewer technicians available, service providers may charge higher rates for these services, adding to the overall cost of owning and operating HVAC systems.
Crockett Facilities Can Help!
Crockett Facilities Services, Inc. (CFSI) is committed to helping building owners, property managers, engineers, and facility professionals navigate the HVAC industry. We can develop a cost-effective, customized program for your building that will help customers make informed decisions. Click Here to Request a Quote!
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