Tariffs on imported HVACR equipment and components are driving up costs across the industry, placing new pressure on contractors, manufacturers, and distributors alike. As prices for key parts rise and supply chains grow increasingly unpredictable, many in the industry are rethinking their dependence on foreign manufacturing. This disruption has sparked renewed interest in reshoring — the process of bringing production back to the United States — as a long-term strategy for stabilizing supply, reducing lead times, and boosting domestic job growth.
Since the COVID-19 pandemic resulted in massive supply chain disruptions, many HVACR manufacturers have already spent the past few years diversifying their supply chains to become more resilient, as well as reinvesting in their American footprints.
This reinvestment is happening at the right time because the HVAC industry is expanding rapidly in the U.S. According to a report from ResearchandMarkets, the U.S. HVAC Equipment Market is expected to reach $41.22 billion by 2033, up from $22.44 billion in 2024, with a CAGR of 6.99% from 2025 to 2033.
Additionally, 2025 Deloitte study predicted that 40% of U.S. companies would relocate at least part of their supply chains to North America by 2026. However, nearshoring requires significant capital, and infrastructure gaps in countries like Mexico can cause delays.
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About the Author
Nicole Krawcke
Nicole Krawcke is the Editor-in-Chief of Contracting Business magazine. With over 10 years of B2B media experience across HVAC, plumbing, and mechanical markets, she has expertise in content creation, digital strategies, and project management. Nicole has more than 15 years of writing and editing experience and holds a bachelor’s degree in Journalism from Michigan State University.