Top HVAC Business Trends To Expect In 2020
The HVAC industry, like all tech-centric businesses, undergoes constant changes. Changes in technology transform processes, while changing customer preferences bring changes to products and services. The fluid external environment impacts the business in many ways. Here are the top trends HVAC businesses need to count at the start of 2020.
1. The HVAC Industry is Growing Steadily
The HVAC industry is growing. Almost nine out of 10 HVAC players report good or excellent business in 2019. Many of them expect the growth rate of their business to exceed by 10% in 2020. Global demand for HVAC equipment will increase by 6% through 2020. One of the key reasons behind this growth is the increasing demand for automation and connected smart homes. (Source)
Growth comes with its own set of challenges;
- The changing technology demands your inventory system to transform and re-train your employees to scale up to the mark.
- Growing customer and product bases force you to scale-up your infrastructure to match the growing demand.
Related reading: Improve the Quality of Your HVAC Business using Checklists
Each challenge presents an opportunity:
- Smart HVAC businesses invest in scalable, agile systems to grow seamlessly.
- They explore innovative options to cope with the inventory churn.
- Lean management concepts take center stage to reduce inventory-related overheads.
- The cardinal principles of lean, such as creating visibility and accountability bode well for HVAC businesses trying to scale-up their infrastructure.
2. The Employee Churn Continues
The HVAC industry is one of the biggest employers. In 2017, the industry employed 1.2 million people in the U.S. alone. The total workforce size of the industry is growing at 5% annually. (Source)
But growth comes along with increased employee turnover and competition for top talent, increasing HR costs. The current generation of millennial employees focuses more on the work culture they are into. Rewards, recognition, empowerment, and the ability to develop matter the most for the new-gen workforce.
At this juncture, HVAC employers need to:
- Redesign employee retention strategies
- Adopt innovative technology and offer good reasons for top talents to stay
- Impart training to increase competency and boost retention
3. “Green” is Trending
The environmental impact of products and services consumed is a concern for many customers. Customers are largely seeking eco-friendly products and services that can reduce their carbon footprints.
Here is what HVAC businesses can try to spread the green cover:
- Geothermal heat pumps are becoming popular as an eco-friendly way of cooling or heating homes.
- Innovations based on technologies such as hydronic heating will become popular.
- The ever-popular solar panels will find more applications.
- Small, domestic wind turbines will match solar panels in popularity, in windy areas.
- Desiccant-Enhanced Evaporative Air Conditioner (DeVAP), a new HVAC technology offers scope for cost-effective air-conditioning.
- Off-the-grid homes allow buildings and people to be self-sufficient in terms of energy, water, and other utility requirements.
4. Internet of Things is Getting Deep-rooted
The Internet of Things (IoT) alters traditional paradigms of the HVAC industry. Data from Wi-Fi-enabled field sensors unlock deep insights that will support predictive and proactive maintenance. HVAC businesses should upgrade their infrastructure to co-opt IoT and invest in Big Data solutions and field service monitoring capabilities.
5. The Rise of Mobility
Smartphones make our work easy and communication immediate. Customers are highly preferring engagement through their mobile devices. Many of them like texting instead of making calls.
Smart HVAC companies employ mobile-based field management solutions accessible to field technicians, customers, and back-office reps through mobile devices. Mobile solutions in field service facilitate real-time collaboration and remote field management.
6. Digital Payments are Booming
Filling up invoices and collecting cheques affect productivity and performance in today’s high-speed digital age. HVAC companies need to deploy automated field management solution to generate invoices as soon as the work is complete. They need to equip their field agents and technicians to collect payments instantly through online payment modes such as cards, wallets, or digital money.
7. The Personal Touch has become Ubiquitous
Customization and personalization are the success mantras for businesses today. Customers research widely and compare your offers with your competitors before making a buying decision. They expect your customer service executives to answer their specific needs and questions.
The importance of analyzing customer and work-related data has become critical for the survival of HVAC companies. Top HVAC businesses strengthen their CRM capabilities to deliver personalized omnichannel experiences.
Related Reading: Field Service Software To Keep Small HVAC Business Competitive
Successful businesses not only adopt the in-vogue trends but also prepare to seize new opportunities and changes. ReachOut’s field service solutions allow HVAC businesses to cope with the changing trends effortlessly. Our highly scalable system co-opts emerging technologies such as mobility, delivers rich efficiency gains, and offers a host of other benefits. Get in touch with our expert to know more.
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