The housing market experienced a historic boom in 2019, fueled in part by millennials’ increased home investments. The industry was further buoyed by the COVID-19 pandemic in 2020. Tight supplies notwithstanding, the demand for housing is expected to remain high, or even, increase in the coming years.
HVAC businesses, both contractors and manufacturers, can benefit from the continued growth of the housing industry. That is if they’re prepared to take advantage of the opportunities and ensure the availability of their products and services while amping up sales efforts.
More Houses, More Demand for HVAC Solutions
New construction rates are high, thanks to first-time homeowners as well as older adults reaching retirement age and moving to warmer climates. Millennials are the group to watch. They are now in their late-20s and older—peak home-buying years. While millennials are famously resistant to the allure of homeownership, their attitudes could change due to certain factors. These include their desire to settle down and the need to find a suitable property that will function as a living and working space. According to a Goldman Sachs Global Investment Research report, millennials could be responsible for an additional surge in home sales.
Millennials and older adults who purchase homes will likely also be in the market for HVAC systems. Additionally, new construction of apartments and condominiums means more new furnaces, air-conditioning units and the like. Even those who don’t move out or purchase a home in the next few years are likely to consider existing HVAC system upgrades. Or, adding IAQ solutions. Indoor air quality and comfort are greater priorities now that individuals spend most of their time at home.
HVAC Online Sales and Digital Marketing
With most people using the internet for researching and making purchases, HVAC contractors need to prioritize their digital presence. This means emphasizing connections with your target audiences online. The convenience of online purchasing is something that even B2B consumers have come to expect. More than 70% of executives believe customer expectations for a personalized experience are much higher than they used to be, according to an Accenture report.
An HVAC sales consulting service provider will give B2B and B2C HVAC businesses the insight they need to maximize the unique opportunities that the housing boom presents. Sales consultants provide services that in-house sales management provides, but without the huge time and money investment. Additionally, they can advise businesses on next steps to successfully pivot from traditional to digital sales. And, earn housing market newcomers’ business.
HVAC Industry Changes
As the HVAC industry consolidates, existing companies will have to make adjustments and develop new capabilities. The result of this shake-up could be more opportunities and additional business for those that catch on early.
Energy-efficient building materials are another new trend worth noting. For instance, the installation of exterior insulation finishing systems allows builders to meet energy efficiency standards without compromising aesthetic and construction costs. The inherent flexibility of such products will likely give rise to new business models for both contractors and manufacturers in the near future. It also means that new building construction—and HVAC equipment purchases and installation—will continue for decades.
While industry consolidation may hurt current sales volumes, lower competition could open opportunities for sales consulting service providers who can assist with marketing strategies, customer engagement and lead generation processes … all crucial aspects to thrive in a difficult business environment.
KGG Consulting delivers end-to-end HVAC sales consulting, marketing and training solutions. For more information on how we can give your brand a competitive advantage, reach out to our team.