Technicians must be specialized in their craft. It's harder to repair an air conditioner made with high-tech parts, so the contractor must charge more for air conditioner repairs. Demand for air conditioning parts, new units and repairs tends to increase when it gets warmer. And our industry is used to receiving price increases from manufacturers every year. However, this year, the COVID-19 pandemic has created a perfect storm that is making HVAC parts and equipment more expensive than usual this time of year.
The pandemic has reduced the supply of raw materials and created labor shortages in the factories that manufacture the parts and equipment we need. Here's what you should know about the many factors contributing to increased replacement and repair costs for heating, ventilation and air conditioning systems this summer. The cost of diesel has been high, meaning the fuel needed to carry our HVAC truck to your location to repair or repair your air conditioner. We stock our trucks with as many consumable HVAC parts, tools and supplies as possible to facilitate repairs.
Larger vehicles are needed to transport HVAC units and supplies when they need to be replaced. Diesel vehicles allow us to carry more weight with better fuel efficiency, and our trucks can also stay in service longer. Some HVAC companies may start to reduce the size of their service areas. It can also mean that travel rates go up.
The raw materials used to manufacture air conditioning parts and equipment are scarce and, in addition, they are increasingly expensive. The Bureau of Labor Statistics monitors the prices of products manufactured in the United States per month, so you can observe average prices as they change over time. The NASDAQ also documents commodity prices, and you can see the upward trend in prices over the past year. Copper pipes recovered from air conditioning units are ready to be recycled. Another way in which we can realize that prices are high is when we recycle parts of used air conditioning equipment.
Demand during the pandemic was low because factories were not operating at full capacity, meaning that prices were low. That has changed in recent months. Fortunately, well-maintained HVAC systems shouldn't need additional refrigerant. This is why a fully charged system should not need to “recharge”. If it does, it means that it has a leak, which needs to be repaired.
Semiconductor chips are found in the most efficient HVAC systems, such as variable speed HVAC units, multi-speed central air units, heat pumps, and the minisplits. Consumers love them because they're efficient, quiet and increase interior comfort. However, Newsweek reports that the chip shortage is affecting the manufacture of new cars, smartphones and computers. They also expect the chip shortage to extend to HVAC systems.
This means that we could see a smaller supply of high-end and optimally efficient HVAC units and parts. PC boards, the minicomputers that make them so efficient, can be harder to get and more expensive if you need to repair or replace them. The shortage of labor caused by the pandemic has been added to delays and a shortage of equipment. That's why, if we see the producer price index (PPI) of HVAC equipment rise from the U.S.
Bureau of Labor Statistics. UU. (as shown in the graphic below), HVAC service companies and consumers can also expect higher prices on air conditioners, heat pumps and parts spare. The producer price index “measures the average change over time in sales prices received by domestic producers of goods and services.
Staying informed allows customers to better understand why supplies of parts for air conditioners and heat pumps may be limited and why prices are higher than usual this time of year. A variety of factors, not just hot weather, contribute to increased demand and decreased supply of air conditioning equipment. According to government statistics, the inflation rate is trending higher than it has been for some time. This means that the value of a dollar is lower, meaning that a consumer may have to pay more for the same item.
Understanding all the market forces at play can help you plan and be patient if buying a part to repair an air conditioner takes longer than usual. Homeowners who know that their air conditioner may not last through summer and fall can start thinking about replacing it now, so they have more time to decide what type of system they want and what features are essential. Most people keep a central air conditioner for 12 to 17 years, so it's worth having what they want, since they may have it for a long time. Starting the HVAC replacement process before it's an emergency gives you more time to make a decision and explore funding if you want.
Facing expensive repair or replacement when temperatures are above 80°C, 90°C or higher isn't ideal. Starting that process earlier allows you to take charge and can reduce stress for everyone involved. An air conditioner malfunction in hot weather can be stressful. That's why we advocate for regular maintenance and keeping abreast of market conditions. This gives savvy customers options to stay comfortable in hot weather.
We want you to understand what is causing the increase in air conditioning prices. The cost of parts and materials is increasing. Everything is taking longer to arrive. The installation, service and maintenance of heating and air conditioning are becoming more expensive.
We have seen price increases from many of the manufacturers of HVAC parts and equipment, including Carrier, Trane, Lennox, Daikin, Ruud and others. But it was harmful to the environment, so the government passed laws, banned it, and HVAC companies moved out to 410a. A clogged air filter can restrict airflow and cause the HVAC system to work harder and consume more energy. If you answered “no” to any of these questions, it's probably a good idea to call a professional HVAC company.
When an air conditioning system starts to have problems, it's usually cheaper to repair it now than later, when the problem worsens. He earned his MBA from Seattle University and has worked for a major HVAC training and consulting firm. For example, one of the most important parts of the world of heating and air conditioning are semiconductors, which are used in variable speed HVAC units, mini-divisions and heat pumps, as well as in most electronic devices. Regular maintenance of air conditioning equipment is essential, regardless of whether a new system involves a future cost or not.
Oreos, iPhones, toilet paper, cars, Nike: everything has to go through a supply chain or a gradual process to reach you, a store or an air conditioning company. Consultants will help you evaluate your system to ensure that your current HVAC system keeps you comfortable and saves you money.
