HVAC Gets Some Attention on Wall Street

May 18, 2010
A Dow Jones news article focused on the upturn in activity in the HVAC industry, as homeowners take advantage of energy tax credits.

The HVAC industry got some attention in the financial press recently, as an article on the Dow Jones Newswires spotlighted the industry's growth as a result of consumer tax credits for energy efficient equipment.

Familiar industry spokesmen were quoted in the article by Bob Tita on the increased demand for home comfort systems. Tax credits expire at the end of this year.

  • "The market has definitely turned the corner," said Karl Zellmer, vice president for air conditioning sales, Emerson Climate Technologies.
  • "There's a lot of pent-up demand," said Larry Taylor, president of AirRite Air Conditioning Co. in Fort Worth, Texas. "We've seen a big jump in sales. We're not back to 2008 levels yet, but it's better than 2009."
  • "Sales of the high-efficiency stuff are stronger than they would otherwise be because of the tax credit," said Francis Dietz, vice president of governmental affairs for the Air-Conditioning, Heating and Refrigeration Institute (AHRI)"It's actually a good sign to us that [consumers] have confidence to buy a bigger-ticket item."

Also contributing to the demand for new HVAC systems is the phase out of R-22 equipment, which is giving greater attention to R-410 systems and components.

Let's enjoy this while we can. Proposed cap and trade legislation, a proposed value-added tax, and health care related taxes would have a negative affect the industry and the entire U.S. economy in the coming year.

The entire article can be found at http://bit.ly/hvacinwsj