HARDI members think their company’s revenues will increase this year, according to the latest member survey conducted by JP Morgan Equity Research.
More than half of the Heating, Air-Conditioning and Refrigeration Distributors International members who took part in the midseason questionnaire said they expect revenues to grow by 5 percent to 10 percent, while seeing a drop-off in industry repair levels, said JP Morgan HVAC industry analyst Stephen Tusa.
“For the first time in our survey, more distributors expected repair activity to decline,” he said. “That could be an indication of an unlocking of the pent-up demand from units that were fixed instead of replaced over the past few of years.”
Overall, many HARDI members appear optimistic, Tusa said.
“In general things have been better than expected,” he said. “Sales of condensing units and furnaces have been better than expected and SEER (seasonal energy-efficiency rating) mix has also improved.”
Brian Loftus, HARDI’s market research and benchmarking analyst, agreed.
“We feel pretty good about our high-single-digit revenue forecast for next year,” Loftus said. “Following the real estate correction, there is a lot of older equipment out there. That older equipment is more expensive to operate and energy costs are higher than five years ago.”
Full results from the survey and the webinar presentation are available for purchase at www.hardinet.org/mid-season-hvac-distributor-survey.