Emerson Climate Technologies, a business of Emerson, reports that, based on its most recent 13 SEER market survey, the majority of 10 SEER air conditioning systems have been installed.
The most recent survey shows that 77 percent of 10 SEER inventory has been used up. The survey also indicates a prediction that 97 percent of 10 SEER inventory will be used up by the end of 2006.
“Some contractors communicated through the survey that they had stocked up on 10 SEER inventory in anticipation of the 13 SEER transition,” says Karl Zellmer, vice president of air conditioning sales, Emerson Climate Technologies. “Their primary reasons for holding onto this inventory include staying competitive in case the competition stocks up on 10 SEER inventory, having prior new-construction commitments, and having some special needs applications.”
The survey also provides significant insight into the 13 SEER market trends regarding system repair and replacement for end-users with less efficient systems. According to this most recent Emerson 13 SEER survey, 48 percent of contractors are repairing systems more than they were in 2005. The primary reason for this increase is that repairs are more cost effective than system replacement. Fifty-seven percent of contractors surveyed said that the driving force for repairs is the lower upfront cost.
The survey also provides information regarding end-users’ 13 SEER buying trends, showing that contractors are successfully up-selling to 14+ SEER systems.
“Some industry leaders thought that the high-end market would shrink substantially with the implementation of 13 SEER regulations. However, this survey shows that the demand for 14+ SEER systems is surprisingly high,” Zellmer says. “There is a strong end-user demand for highly featured deluxe products, which 14+ SEER systems are able to provide.”
The reasons for up-selling include lower energy costs, improved benefits and features of higher SEER equipment and building codes.
According to Zellmer, these results are good news for the industry because they demonstrate the contractor's adoption of the 13 SEER world and his ability to up-sell in new ways.
The fifth 13 SEER survey is a part of the wrap-up to Emerson’s “Get SEERious” campaign, designed to educate contractors, distributors and homeowners on 13 SEER and help lead the HVAC industry through a smooth transition. To view the complete 13 SEER survey results, or to request a copy of the Get SEERious educational booklet, visit EmersonClimateContractor.com.