Have you noticed yourself spending a lot more money and getting the same amount lately? You’re not the only one. The effects of inflation are being felt in every industry. With rising fuel, refrigerant, and materials costs, the HVAC industry is feeling the effects now more than ever. Here is how the HVAC industry is being impacted by inflation.
Rising Refrigerant Costs
Costs for common refrigerants like R-410a are over four times the price that it was at the beginning of 2021. There is also a shortage of most refrigerants which has caused product delays and limited availability.
Rising Fuel Prices
Fuel prices have nearly doubled since the beginning of 2021. With most states averaging unleaded fuel near $5.00 and Diesel near $6.00, it costs almost twice the amount to get to the destination as it used to. Due to the rising fuel prices, HVAC companies have had to be very careful about fuel consumption and cutting out any non-mandatory driving. HVAC companies have also had to seek newer fuel-efficient vehicles and raise current rates to combat rising costs.
Parts & Materials Shortage/Delays
Due to supply chain issues, many parts and materials are in limited supply and may be on backorder. This can be an issue especially when a part is needed right away. HVAC companies have been tasked with ensuring that technicians have enough parts and the parts needed for service. They have also been tasked with rising parts costs and maintaining a strict parts and materials budget.
Vehicle Shortage
On top of rising costs for new and used vehicles, there is also currently a shortage of vehicles. Due to a micro-chip shortage, new vehicles are unable to be sold causing fewer new vehicles to be available. Used vehicles have seen much higher costs, which makes it more difficult for HVAC companies to afford them. This has caused many HVAC companies to hold on to older vehicles that may have been replaced otherwise.
Despite inflation and rising costs, we are committed to keeping our high-quality 24/7 HVAC/R services attainable for our customers. CMS Nextech has put new measures in place to help combat rising costs, and continue to provide for our customers.
