According to the latest study by the National Association of Home Builders (NAHB), the HVAC market is likely to face several changed following the economic disruption caused by the COVID-19 outbreak. The complete scenario of the impact on construction companies and contractors is still unknown, but the pandemic has significantly slowed down the new-home construction.
NAHB projects have increased in smaller markets as people and businesses are relocating to larger cities. NAHB also expects a slowdown in home construction in retirement areas as people are trying to stick to their jobs to cover up for the losses caused by the downturn in the stock market.
Shifting to Tech and Service Sector
Construction companies have started to enter the “Smart Home” market by providing technical support and installing home software in people’s houses. Moving to the service sector by providing technical support is a challenge because employees need to be trained to conduct and provide better service and assistance.
Expanding these services also means new marketing strategies, training, and advertising. Sending workers to homes every day is going to require a more streamlined dispatch system as well, and companies have started working on it already to educate people about the new services available.
As far as competition goes, most of it will come from moving to residential services from installation. The licensing process will limit the transition of other segments or trades to various states. Many demographic and climatic limitations also hinder the training and development process of these construction companies. Some experts claim that there are other ways to expand business in the HCAV sector that doesn’t require licensing, like employing handymen and repair personnel to keep the staff and other resources engaged.
According to Jonathan Duncklee, owner of Connecticut-based Duncklee Heating and Cooling, the outbreak served them with an excellent opportunity to re-evaluate and design their business processes. The lockdown gave them a lot of time to work on things that were pending and needed more attention. The company looked at ways to improve the digital marketing aspects and bringing more customers on board through telephonic conversations. The in-home services are also more streamlined and easier now as people are staying home.
Construction companies are still expecting a steady demand once the outbreak restrictions are relaxed. Consumers are also paying attention to revaluating their home environments and bringing changes in the interior and exterior designs so that working from home becomes more comfortable. Contractors also need to consider the new and innovative options regardless of any changes in the competitive landscape as the next disruption is quite uncertain.