EGIA's HVAC Contractor Survey Highlights 2026 Labor and Cost Pressures
Key Highlights
- Labor shortages, increased costs, and government regulation remain top external threats for HVAC contractors in 2026.
- Many contractors are shifting distributor relationships, with distributor territory managers being a key factor in decision-making.
- Nearly all surveyed companies have raised prices recently, indicating ongoing pressure on profit margins.
SACRAMENTO, California — The Electric & Gas Industries Association (EGIA) released its 2026 HVAC Contractor Survey Research Report, offering a data-driven snapshot of the residential HVAC market across the United States and Canada.
Compiled with market research firm Decision Analyst, the report is based on responses from hundreds of HVAC contractors across North America. It examines current business conditions, operational challenges, and growth priorities shaping the industry in 2026.
According to EGIA, labor shortages, increased costs, and government regulation remain the top external threats facing contractors, consistent with last year’s findings.
The report also found many contractors have switched distributors or equipment brands, or are considering doing so. Relationships with distributor territory managers ranked as the most important factor in those decisions.
Nearly all surveyed companies reported raising prices within the past year, reflecting continued pressure on margins and operating costs.
On the service side, more HVAC contractors said they have expanded into plumbing and electrical offerings, signaling continued interest in multi-trade growth strategies.
Internally, respondents identified hiring and retention, lead generation, and operations management as their biggest business challenges. The report also cited strong use of consumer financing and growing interest in artificial intelligence tools.
“This report gives contractors a clearer view of what is happening across the industry and where the market is headed,” said Bruce Matulich, chief executive officer of EGIA.
Julie Trujillo, senior vice president at Decision Analyst, said the research was designed to identify the challenges, priorities, and opportunities likely to influence contractor success in 2026 and beyond.
EGIA Contractor University and HVAC Distributor University members can access the full report through their member dashboard. Non-members can purchase the report through EGIA at EGIA.org/2026Survey.