The HVAC industry is seasonal and regional in nature. Approximately 20 percent of HVAC contractors fail across the industry every year, with 70 percent of new HVAC businesses failing in their first year of operation.
Approximately 20 percent of all HVAC companies fail across the industry every year. Over 70 percent of new HVAC companies fail in their first year of operation.
Cash flow problems and poor financial planning are major causes of failure. Many contractors fail because they don't fully transition into HVAC business owners. Seasonal demand fluctuations make managing cash flow critical. A shortage of skilled technicians can negatively impact service quality and growth.
It says that approximately 70 percent of new HVAC businesses fail in their first year of operation. From there, 20 percent of HVAC contractors fail across the industry every year. The important thing to keep in mind about statistics is that they can only tell you trends.
The global HVAC systems industry is forecast to grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031. The market was valued at $218.32 billion in 2024 and is on pace to reach $338.62 billion by 2031.
HVAC Technicians Are in High Demand
Fortunately, HVAC is one of those careers that is in steady demand. The Bureau of Labor Statistics projects that the jobs in this sector will grow by 9% by 2033. If you want to learn how to become an HVAC technician, this is the right time.
The data above shows the market share of the top 10 North American HVAC equipment manufacturers in 2020. The leading manufacturer in the market is Trane with a 22.8% market share, followed by Lennox with 16.5%. Carrier is in third place with 15.2%, followed by Rheem with 10.8% and York with 7.6%.
In 2015, the average employee turnover rate for service companies like those in the HVAC industry was 12.5% — and a whopping 70% of those turnovers were voluntary.
Commercial and residential HVAC is already in high demand, but with the increase in construction, more and more qualified technicians are needed to fill these positions. HVAC specialists earn more than $60,000 per year as of 2021, which is more than the national average.
In 2024, the average HVAC technician earns about $49,500 per year. However, a skilled HVAC technician can earn more than $100,000 per year if they work hard on their skills and knowledge.
Job Security – HVAC service can't be exported. Service jobs have never left the U.S. like some other industries have, and they never will. Become a Millionaire – A lot of contractors are young millionaires because HVAC is an industry where it's possible to go from mechanic to millionaire in less than a decade.
Poor airflow is one of the most common HVAC problems. Common culprits of poor airflow include clogged air filters, obstructed condenser units, blocked vents, thermostat issues, refrigerant leaks, and dirty coils.
HVAC can be a stressful job at times, especially during the peak demand season from May through to September. The HVAC industry can require you to work evenings and weekends at times to meet the extra demand of broken down air conditioning systems during the summer months.
Suppose an HVAC contractor installs a new system during a home remodel. An indoor air quality problem may be traced back to the improper installation or negligent maintenance of an HVAC system. In this case, a business or an injured party can sue an HVAC company.
If your goal is to make six figures while working as an HVAC tech, it is definitely within reach.
The HVAC industry is seasonal and regional in nature. Approximately 20 percent of HVAC contractors fail across the industry every year, with 70 percent of new HVAC businesses failing in their first year of operation.
It's a serious profession that requires training and licensure in most states. The pros of being an HVAC technician are many, including a good salary and a stable career. The cons are few but should still be considered before deciding on this career path.
The state of Louisiana claims the highest-paid individual HVAC technician who earns $111.54 per hour. Additionally, Connecticut, which ranks as the highest paying state for HVAC technicians also ranks among the top four states with the highest individual salary at $75per hour.
There's currently a shortage of 110,000 HVAC technicians, with about 25,000 technicians leaving their company each year.
The U.S. HVAC systems market size is expected to grow at a rate of 7.4% from 2024 to 2030. Researchers predict a 6.6% growth rate for the HVAC industry from 2024 to 2029. The U.S. HVAC industry has about 114,000 businesses and has grown by 2.1% from 2019 to 2024.
A heating or cooling system is a significant investment, and it only makes sense to get as much use out of it as possible. In general, most HVAC systems will last 15 to 25 years, but depending on the type of system and other contributing factors, that estimate can be highly variable.
Plumbers make a little more than HVAC Techs on average. The national average for plumbers is $55,000, and for HVAC techs it is $48,000. Some people do both, and the average salary for them is $60,000. Plumbers and HVAC technicians have comparable salaries.