< Browse more articles

Each year in Q4 the AHR Expo and ASHRAE Journal conduct an “Annual Economic Outlook Survey.” This year’s results reflected what others in HVACR industry seem to be saying: They expect another good year of growth.

hrai7dec112019

According to the report, 79% of respondents indicated good or excellent predicted sales prospects as we cross into 2020.

When asked about 2019 sales, 34% of respondents reported an increase of 10% or more, and 70% indicated sales growth of at least 10%. Additionally, respondents reported expected growth in nearly all areas of the industry, with light commercial, health, and residential markets identified as having the highest potential in 2020 at 72%, 67%, and 64% respectively.

“The HVACR industry remains in a season of change, with innovation and advancement happening in all sectors,” said Mark Stevens, manager of AHR Expo. “The global market, changing customer demands, and new innovation demands are shaping product designs and the way we approach the built environment.”

DISTRIBUTORS ARE MORE CAUTIOUS

Meanwhile, a report in ACHR News contained some lower numbers and was more moderately positive. It reported that the Heating, Air-conditioning & Refrigeration Distributors International (HARDI) had released a monthly TRENDS report, showing the average sales performance by HARDI distributors.  The report quoted analyst Brian Loftus, who said: “Sales growth for four of the past six months has been 3% or less. This has cut the average annual growth rate in half from earlier this year. Many economic indicators are sagging also, but the slower sales growth has a lot to do with being compared to a very strong prior year.” The report also suggested that good employment levels and consumer spending may indicate a soft landing in 2020.