The HVAC labor shortage isn’t a future problem — it's already here. With over 480,000 skilled trade jobs currently unfilled in the U.S., HVAC businesses are feeling the impact. And with the industry projected to grow 6% from 2022-2032, demand for skilled workers is growing faster than supply.
As a result, contractors are responding by investing in both stronger hiring practices as well as better technology to maximize workforce efficiency.
Why the HVAC Labor Shortage Is Getting Worse
Did you know, the average HVAC tech is over 55 years old? That aging workforce is a major driver of the 42,500 HVACR job openings projected each year — many due to retirements or career changes.
Furthermore, the HVAC labor shortage is getting worse because younger generations are not entering the trades fast enough to replace retirees. Plus, a rising demand from electrification and energy efficiency retrofits are further widening the gap.
Contractors are facing more complex systems that require advanced technical skills. Most HVAC projects these days aren’t just “fix and replace” jobs. Instead, today’s HVAC jobs involve system optimization, retrofits and integration with smart home technology.
Even though retrofitting buildings is expected to create 1.3 million jobs, the HVAC labor shortage presents a huge challenge for the IEA’s net-zero emissions goal for 2050. In fact, 83% of energy efficiency employers are reporting hiring challenges.
How Top Contractors Are Attracting Talent
While the future might seem bleak, there are ways contracting businesses can attract top talent to help offset the HVAC labor shortage.
1. Pay Raises and Bonuses
It might seem obvious, but many HVAC businesses are raising pay and offering hiring bonuses to attract more talent. In 2025, the average pay increased roughly 3.5% across all HVAC skill levels.
Which means your contracting business must at least meet these pay raise averages to stay competitive and attract great talent.
2. Career Development and Mentorships
Forty percent of employee turnover is due to a lack of career development. Likewise, 82% of employees quit if their employer doesn’t offer career pathing. In addition, 77% of employees feel their employers aren’t offering career development. Meanwhile, only 30% of employees feel someone at their work encourages career development.
By providing clear career pathing and mentorship opportunities, you can stand out from other HVAC businesses in your area.
3. Strong Employer Branding
Only 2 in 10 employees feel connected to their company’s culture in the U.S. — resulting in a detached team with higher turnover.
A strong company culture simultaneously improves your labor shortage issues while helping your bottom line. Here’s how a strong company culture increases your key performance metrics:
Look at a few simple ways to reinforce your company culture:
- Provide paid time off and sick days;
- Host company events to create a sense of community;
- Recognize and reward employees for accomplishments and milestones; and
- Offer unique perks (e.g., snacks, parental leave, educational assistance, volunteer days, etc.)
4. Streamlined Onboarding Process
When it comes to lessening the impact of the HVAC labor shortage on your business, hiring speed is crucial. By moving candidates quickly through hiring, you reduce the risk of losing candidates to competitors.
5. Promotions
Many contractors promote their use of technology (like HVAC software) as a recruiting advantage. Plus, younger technicians want to work for tech-forward companies. In fact, 64% of Gen Z employees view emerging technology positively.
Building a Talent Pipeline Beyond Job Boards
Since the competition is too fierce in the HVACR industry, job boards alone aren’t enough anymore. To build a talent pipeline beyond job boards, it’s crucial to be proactive. These are a few key effective strategies HVACR businesses are using to combat the labor shortage:
- Local Networking: Build relationships with trade schools, start apprenticeship programs, and engage earlier with young talent; and/or
- Establish Partnerships: Host “Tech Days” or partner with local workforce development programs to get proactive in pipeline building.
Remember, building a pipeline allows your HVACR business to create warm candidates who are ready when you need to scale quickly during the busy season.
The Cost of Taking Too Long to Hire
The average HVAC technician generates between $200-650 in revenue per service call during peak seasons. And with most HVAC techs getting 10-12 service calls per day during the busy season, you could lose between $2,000-7,800 per day for an unfilled HVAC tech position.
Plus, there are implications for your HVAC business if you take too long to hire:
- Overworked teams lead to burnout, lower morale and higher turnover;
- Service delays lead to angry customers and bad reviews;
- Revenue opportunities are lost when companies can’t meet demand; and
- Competitors with faster hiring processes can poach candidates, new service contracts and even loyal customers.
Using Technology to Bridge the Gap
Contractors who are short-staffed are using technology to maximize efficiency. While HVAC software won’t solve the labor shortage, it can reduce friction and improve efficiency while you continue building your workforce.
Here are five ways successful HVAC businesses use software to stay efficient and meet demand:
- Easy Dispatching: Quickly assign techs to the right jobs based on their skillset and job location. Drag-and-drop scheduling features help reduce delays and boost job accuracy.
- Accounting Integration: Modern HVAC platforms often sync directly with accounting software, allowing seamless updates across field and office in real time — no duplicate entry required.
- Customer Management: Access full customer histories, service agreements, quotes, and equipment records in one place, so your techs can deliver consistent, high-quality service on every visit.
- Anywhere Invoicing: Enable techs to update invoices in the field, email them to customers, and accept payments on the spot — helping you reduce billing cycles and improve cash flow.
- Mobile App: Empowering techs to view work orders, complete forms, add job notes, and upload photos — all while on-site. This improves communication, accountability, and customer satisfaction.
Conclusion
Contractors who act now — by investing in their employer brand, hiring strategies, and technology — will be best positioned to succeed. The labor shortage isn’t temporary — it’s the new reality — businesses that can adapt to the HVACR hiring shortage will dominate in 2025 and beyond.
