The US HVAC Industry in 2018: Every Reason to be Optimistic

The 2008 recession hit HVAC hard. But the recovery has been solid with more momentum expected in the coming months.

HVAC sales are largely comprised of new commercial and residential installations and change outs of legacy systems with maintenance doing its part.

Real estate experts believe that 2018 will see at least 1.33 million residential housing starts. Coupled with the fact that a record number of housing permits have been issued from the municipal offices in 2017, the scenario bodes well for HVAC businesses.

The commercial sector will see growth as well, given the larger order values and the more expensive equipment. The 2.4% rise in construction in the hotel space and the 1.1% increase in industrial buildings will make significant contributions towards the net revenue of the sector.

Last but not the least, the anticipation around movement triggered HVAC and sensor enhanced systems (or smart HVAC systems) will imbue many households – especially those headed by Millennials – with purchase intent, even if the existing set-ups are satisfactory.

Alan Manufacturing’s Promise to HVAC Businesses:

Every obstacle is followed by opportunity.

As the lingering effects of recession dissipate, HVAC players now have the chance to present themselves as innovators and reliable partners for families and organizations alike.

Partners who work behind the scenes to make lives that much easier.

Alan Manufacturing Inc. has been assisting some of the most renowned names in HVAC for 25 years. We have designed thousands of custom products and offer excellent retrofitting, upgrade, replacement, repair and maintenance services. Collaborating with us is a “breeze”!

Contact us to learn more about how we can help your HVAC business. You can also follow our blog, Twitter and LinkedIn for pertinent industry updates.


2017 HVAC Industry Overview

As 2018 is on the horizon, we’re taking a look back at 2017 and all that both our business and the industry has accomplished throughout the past year. Topics that came from hot industry discussions and present matters at hand include: the effectiveness of HVAC systems, smart homes and technology, environmental and climate, YouTube video takeovers, and most recently, National Manufacturing Day.

From the start of the year, we’ve had our sights set on the smart homes industry. For the past several years, this has been a rapidly expanding industry. One of the biggest advancements in the field has been controlled settings through mobile/smart devices. We’ve all seen the commercials where you can control your garage doors, security systems, or light switches from miles and miles away. Now, this is applicable in regards to smart HVAC systems too. As HVAC systems and controls advance, they also become more efficient. Homeowners are now able to govern much more than what was capable in the past. And from the bottom up, HVAC systems are now being tied into the mechanical systems of a building.

Other initiatives that we took on this year were nationally recognized days like Earth Day and National Manufacturing Day. At Alan, we play a role in the design, creation, and implementation of energy efficient HVAC systems in commercial buildings. Ducts with air leaks can create polluted indoor air. This year our team has been exploring ways to make assemblies like this more robust and leak free.

Over Manufacturing Day (the first Friday of every October) we were able to address manufacturing industry-related issues that touch on the HVAC industry and all other industries across manufacturing. As field members, it is our duty to spread the word on causes like the skills gap, STEM education, and reshoring.

Our YouTube Videos on HVAC systems, equipment, services, and installation continued to receive bountiful views over the past 12 months. Alan experts speak to RF Zone Control Systems, Gladiola Control Kits, Retrofit Damper Installation Instructions, Zone Motorized Dampers, Wireless Zone Motorized Dampers featuring Radial Blades, Zone Motorized Dampers featuring Gasket Seals, ALAN Zone Round Power-Open Power-Close Modulating, and ALAN Zone Rectangular Frame Power-Open Power-Close, all in easily understandable video forms. Our experts also stressed the importance of fresh intake air handlers this year. This kind of system adds to the effectiveness of your business HVAC system.

Over the years our team has successfully designed over 1,000 different products including, but not limited to: HVAC dampers, HVAC hardware, duct supports, zone control systems, and custom projects. We are considered a leading supplier in the HVAC industry, and continually monitor the industry progressions within our field.

For more information, like services, support, and tips, from a well-trusted HVAC industry source continue to follow us on our blog, Twitter, and LinkedIn pages.

Have an HVAC question? We can answer it for you! Contact us today.

From Alan Manufacturing, we’d like to thank all of our loyal customers for a successful 2017. We wish you, your companies, and your families a very happy holiday season and we’ll see you next year!

HVAC Industry Updates

With the days short and the nights long you might think that there isn’t much to report to HVAC industry leaders and consumers on, but this couldn’t be further from the truth! The industry is a dynamic commerce that everyone relies on most days throughout the year. As we finish out the winter months, HVAC systems keep us warm right up until the change in seasons.  In the spring and summer months we turn to HVAC systems to keep us comfortable and cool.

The ever growing industry is in demand for new structure increases,  along with a need for the components that make up the system. A new report from Frost & Sullivan finds that the global HVAC market is expected to grow $108.93 billion in 2020, up from the $80.67 billion in earned revenues in 2014. The growth trends are attributed to smart technologies and energy efficient requirements.

A recent AHR Expo survey found that 86% of respondents are confident that business will be good in 2016. This optimism spread to expected sales growth and a positive outlook for the industry. The best overall outlook for market segments in the coming year are listed as data and telecom centers, hospitals, and healthcare facilities.

The HVAC industry seems to be in good shape and is expected to get even better as the year progresses forward. With construction starts picking up, the housing market continuing to recover, and the economy strengthening, we expect to see positive growth in equipment sales and systems.

As specialists in manufacturing customized products for the HVAC industry, Alan Manufacturing will be there to support the industry’s growth with the highest quality, 100% U.S. made components.

Contact us today to learn more about our products and services.

Positive Outlook for the HVAC Market

At Alan Manufacturing we are always watching the HVAC market and we recently read a new report that provides some positive news for the industry. The March Contractor Comfort Index (CCI) from the ACCA finds that HVAC contractors have a positive outlook about the short-term growth of the industry. The index was 79, which was up 6 points from 73 in March 2015 and was up 2 points from February 2015.

The CCI is calculated by surveying the association’s contractor members who are asked how positive they feel about new business prospects, existing business activity, and expected staffing decisions in the short-term future. Anything CCI of 50 or more reflects anticipated growth.

For our part, we have noticed an uptick in business and as we move into spring and summer we expect to remain busy. To better serve the HVAC industry we are developing new products and we look forward to sharing that news soon. Be sure to check our blog next month for more company news and visit our website to see all our HVAC products. We also actively post more HVAC industry news on our Twitter and LinkedIn.

Top 3 Frequently Asked Questions

As any manufacturer can tell you, there are certain questions that come up from current and prospective customers over and over again. While we welcome any questions at any time, we thought we’d make things easier for our readers by addressing some of the most common ones at the moment.

Frequently Asked Questions:

1)      In this new economy, where do distributors stand on inventory?

Like many in our industry, we value our distributors and work with them as much as possible. Many no longer want to keep as much inventory in stock as in the past, and we believe that customers throughout the country understand this. Many manufacturers these days are doing away with large stockpiles that take up space and cost money, and are providing just-in-time shipping, which is an efficient way to deliver inventory as needed. (Check out this article.) It’s one of the hottest and most practical trends in manufacturing right now.

2)      In your industry, what does air pressure have to do with zoning and ductwork?

We see this all the time—homeowners will put in their own zoning without understanding the importance of air pressure.  Without a bypass damper properly installed, air buildup can occur and cause a major problem, including burning up your furnace. While you don’t need to know A-Z about air flow, you should do research or hire a contractor who does. There are many online training resources that can help you, as well as software programs that make it easier to understand, and therefore avoid major problems.

3)      Is a wireless zoning damper actually wireless?

The short answer is no. While the damper itself is not wireless, it is wirelessly controlled with a remote. This is a convenient, easy way to control up to 32 dampers individually.  And while the motorized damper is not battery-operated, the remote control makes is a very handy product.