Rising Costs in HVAC and How That Affects You

There’s no denying that 2020 was one for the history books. Unprecedented disruption due to a global pandemic didn’t just extend to stay-home orders and mask mandates; it also created a host of supply chain issues. The HVAC industry is no exception. Demand is beginning to outstrip supply, resulting in price hikes and longer waits for things like AC unit installation and repair.

What’s the Deal with Supply Chain Disruptions?

Several factors ultimately contribute to rising costs in HVAC, one being low supply and high demand as we begin to return to something akin to normal.  If you’ve left the house or taken a glance at the news, you already know that just about everyone is offering sign-on bonuses and a host of perks to returning to pre-pandemic staffing levels. However, the diminished workforce is a pervasive issue affecting the manufacture and distribution of HVAC equipment.  A reeling global shipping industry is still struggling to keep up with demand in most industries, particularly those that rely upon foreign labor and supplies. New AC unit installation, for example, requires more hands on deck than just the installation and service expert. It’s reliant on captains moving ships containing vital equipment across the sea, truck drivers to transport those parts and train conductors. When materials arrive, and a new AC unit is manufactured, truck drivers are again required to get them to dealers, where trained workers must be waiting to do the work of AC unit installation. In addition, all these industries are now dealing with historic worker shortages, causing issues up and down the supply chain which then leads to rising costs in HVAC. 

How Supply and Demand Even Affect AC Unit Installation

While every industry involved in manufacturing and installing new air conditioners is suffering a lack of workers, a home-buying and home-building boom means there’s more demand than ever for AC unit installation. The ripple effects of worker and materials shortages combined mean less stock for more customers, which usually translates to rising costs in HVAC. Those costs are passed along to dealers and installation professionals, which can, in turn, be passed along to consumers.  Rising costs in HVAC repair and AC unit installation may be painful, but they are temporary. Our new warehouse allowed us to stock up on new units and parts before many of the major price increases hit, so if you need new unit installation or repairs, Sure-Fire Heating & AC can help.