“The data shows this will be a great year for HVAC service and replacement. This isn’t unbridled optimism or wishful thinking. It’s data. It’s math. Let’s work through it.
Last year, in 2019, manufacturers shipped 8,470,663 air conditioners and heat pumps. Since the U.S. Census reports that there were 1.29 million housing starts, then approximately 7.2 million of these were replacement systems.
The average life of an air conditioner is 15 years. Heat pumps die a little sooner, but for simplicity, we’ll use the same product life span since we’re combining air conditioners and heat pumps.
Fifteen years ago, in 2005, 8,607,501 air conditioners and heat pumps were installed. Whoa! That’s more than 2019. In 2005, the housing market was red hot. Combined with a strong replacement market, it made 2005 the best year in the history of the air conditioning industry.
All 8.6 million air conditioners and heat pumps installed in 2005 are due for replacement this year. That alone means 1.4 million more replacements than last year.”
Read more on this story here.
Perhaps the biggest impact on the expected service of HVAC units is the coronavirus. With so many people being out of work, money is scarce and homeowners may opt to defer service or replacement until next year. However, as the math suggests, 2020 may be the best time to absorb such a hit in the industry. A lot will depend on the summer season and the number of hot days and heatwaves that occur.
The technicians at Apple Valley Eagan Appliance offer a full range of HVAC heating and cooling services. New installation, repair, leak detection, ductless air conditioning to name a few. Call us at 952-953-0080 to learn more on how we can assist in your HVAC needs.