Consolidators Are Restructuring The HVAC Industry ContractorfUtility Associations Expand into Energy Services

Abstract

Over 45,000 HVAC contractors operate in the U.S. The y conduct
over $40 billion annually in installation, service and maintenance of
equipment in both new and existing homes and businesses.
Contractors are typically small operations, owned by a famil y, serv-
ing a limited local area, with little brand presence and modest marketing.
Contractor strengths are primarily technical. Trust of contractors by con-
sumers is low . Entry is relatively easy and deliberate. Exit is also easy
and often not deliberate. Growth is severely limited by capital availabil-
ity.
Utilities ha ve taken contractors for granted. Mostly con tractors are
ignored. Some progressive utilities have formed associations with con-
tractors for marketing and training. A few utilities have antagonized
contractors by starting up or purchasing operations to compete in the
residential and small commercial markets for energy services.