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Guide for HVAC Contractors – Best States to Win Projects

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HVAC contracting works are in high demand in the United States during the previous years up to the present. This follows the rise in number of construction projects going on across the country. This opens a window for great opportunities for all HVAC subcontractors in all the states of America, whether they are startups or well-established companies.

Climate control is an important requisite for buildings these days. Businesses, industries, and residential owners are now required to have a reliable HVAC system in their properties. This is to ensure the health and comfort of building occupants as well as the proper preservation of food, equipment, facilities, medicines, and other types of perishable and valuable assets that are prone to weather-caused damages.

For other reasons why HVAC has become a necessity in buildings in the US:

  1. Indoor Comfort

Summer in the states can be excruciating and winter can be cruel. The only source of comfort that people can get during these days is indoors.

HVAC systems help buildings maintain a fresh and comfortable level of air, keeping the environment cooler during the Summer and warmer during the Winter. This then improves the productivity of occupants, which is a big advantage for business owners. 

HVAC also helps reduce pollutants, bacteria, and foul odor inside buildings so people can focus on their work and maintain their health. Good HVAC systems are even found effective for removing dust mites that cause eczema.

  1. Energy Efficiency

Energy efficiency is a challenging endeavor for most building owners. Commercial buildings used to have unreasonable energy bills they need to pay every month because of the use of fans, blowers, heaters, or old models of HVAC. These days, heating, ventilation, and air conditioning are put together in one for more cost-effective cooling and heating. The systems available in the market these days are using lesser and lesser energy while reducing costly inefficiencies.

And with a smarter system installation design, buildings are now able to save over 40 percent of energy.

  1. Preventive Maintenance

HVAC is a simple way to prevent the fast deterioration of buildings. Moist and molds are a common problem, most especially during the winter and rainy seasons. Modern HVAC systems are now equipped with humidifying functions. This helps buildings get rid of moisture and molds that can damage walls and ceilings and even cause respiratory illnesses to occupants. 

Demand for Better HVAC System Designs

The growing demand to have HVAC systems installed in buildings can be seen in the statistics that reveal commercial buildings account for over 35 percent of the total energy consumption in the U.S. And in these buildings, heating, ventilation, and air conditioning systems account for over 30 percent of their total energy use, which is still relatively high.

That said, there is a challenge for all HVAC subcontractors and building contractors as well as HVAC manufacturers to produce a structure that’s more energy-efficient. The goal is to further reduce the energy consumption of HVAC systems by using more modern units and coming up with more efficient system designs and installation.  

Need for HVAC Contractors and Technicians

In 2015, the HVAC/R Workforce Development Foundation released a report showing how the demand for skilled HVAC technicians is higher than the supply. And in 2019 that gap only increased further. The foundation estimates at least 115,000 additional HVAC technicians will be needed from 2020-2022. And this was confirmed by the Bureau of Labor Statistics in 2019.

What does this mean?

HVAC companies don’t need to look far to get an HVAC installation project. The need is everywhere, all they need to do is to search where the project is and submit their bids.

The growth in demand is reportedly due to the fast-changing technology in HVAC. This was according to the Air Conditioning Refrigeration News in 2018. Many HVAC subcontractors are now using digital technologies to improve their installation like BIM, Internet of Things (IoT), and subcontractor scheduling software

The cost of HVAC equipment is also decreasing, thanks to technology. Manufacturers are coming up with better unit designs that aren’t necessarily more expensive. This has made more building owners and homeowners able to afford an HVAC installation. 

Following these developments in the HVAC trades, a CNN analyst previously reported that the demand in HVAC services won’t see any downturn in the next couple of years. In fact, CNBC stated that the construction industry is on a spending spree, making HVAC projects continue to grow even beyond 2022.

Furthermore, Forbes analyzed the housing market in the United States and found out that it will remain stable through 2020. In fact, they expect over a million new single-family houses built by the end of 2021, hence meaning more projects for HVAC subcontractors. 

But the HVAC systems have now become more sophisticated. Components are automated and some functions are integrated with IoT. HVAC companies should then put more attention to their skilled worker recruitment, training, and remote crew member management.

Best Cities and States for HVAC Professionals

In this guide, we used the rate of new construction projects going on in the U.S. as collected by the Global Data. We used the numbers to explore the best cities that are providing new and many opportunities for HVAC contractors this year 2020.

Here are ten of the top states providing HVAC works:

  1. California

California has been suffering from devastating wildfires, mudslides, and flooding in recent years and still continue to see some incidents at the present times. This has made rebuilding a priority to the state. But apart from these rebuilds, California was also found out to have numerous ongoing mega projects in the infrastructure, energy, and utilities, which means more places to drop bids to for contractors and subcontractors including HVAC companies. 

  1. Texas

Texas seems to be a very unfortunate state when it comes to extreme weather conditions like hurricanes. In the past years, we’ve seen the state focusing its construction efforts in rebuilds, but being the leader in energy and utilities, Texas also has a bounty of new developments currently going on. Again, for HVAC contractors, this means big opportunities to grow their businesses.

  1. New York

New York is continuously evolving its “concrete jungle” by carrying out numerous major infrastructure projects. It is also expected that there will be a drastic increase in the number of residential projects, spanning from houses to condominiums and apartments. The city government even increased the funding dedicated to infrastructure projects. This only signifies the critical vitality of the construction and related trades industries in New York. 

  1. Florida

Like Texas, this coastal state is hard-hit by hurricanes, which required Florida to have a series of extensive rebuilding projects. The state is also increasing its funding for new education and healthcare facilities while there is also a boom in condominium projects and multi-family structures. All of which require new HVAC installations.

  1. Washington

The Department of Commerce in the state of Washington is actively funding infrastructure and capital construction projects. Several recreational, educational, healthcare, arts, and cultural facilities are also underway. This means every HVAC company in the state will have a chance to partake in one or two or more projects this year.

Apart from these states with the most ongoing construction projects, we also looked into the states and cities with the highest rate of employment of HVAC professionals, which is also an indicator of the high volume of HVAC installation and servicing projects.

  1. Atlanta Metropolitan Division

Atlanta, according to the BLS, has a skyrocketing rate of HVAC technicians and installers employed. The city is also recorded to have a rate of new construction, which explains the high demand for HVAC works.

  1. Orlando Metropolitan Division

Another big city calling out on all HVAC professionals in the U.S. is Orlando. The metropolitan is continuously growing, making its construction industry one of the biggest-earning industries in the city. That said, Orlando has a high rate of HVAC professionals employed and ranks near the top of most job opportunities in the city.

  1. Phoenix Metropolitan Division

Phoenix has a lot of new construction underway, which also means that there is a high te of HVAC technicians and installers employed in the city. Also, Arizona is among the states that rank highly for new job opportunities this 2020, and the demand for HVAC workers in the state has grown to over 40 percent since 2016.

  1. Nashville

The city is up for expansion that is why there is high growth in new construction projects in Nashville. Consequently, Tennessee is predicted to be among the states with the highest rate of new openings for HVAC professionals from mechanics to installers.

  1.   Chicago

Chicago is among the best provider of job opportunities to job hunters and HVAC and HVAC/R technicians and installers are no different. A high rate of professionals in the field are currently employed in the state, following the equally high rate of new construction projects going on in Chicago. It is also worth mentioning that the Springfield and Peoria areas offer a high pay rate, although the volume of HVAC job opportunities there is quite low.

In summary, the following states were found out to have the highest number of HVAC and HVAC/R professionals employed according to the Bureau of Labor Statistics:

  •         Florida: over 29,650 technicians and installers
  •         California: over 27,720 technicians and installers
  •         Texas: over 25,290 technicians and installers
  •         New York: over 19,160 technicians and installers
  •         Pennsylvania: over 15,330 technicians and installers
  •         North Carolina: over 14,370 technicians and installers
  •         Virginia: over 12,690 technicians and installers
  •         Ohio: over 11,130 technicians and installers
  •         Georgia: over 9,540 technicians and installers
  •         New Jersey: over 9,510 technicians and installers

Meanwhile, the Projections Central 2020 deems the following states to have the highest HVAC employment increase for both mechanics and installers until the year 2026:

  •         Utah: up to 42.3 percent projected increase
  •         Arizona: up to 41.7 percent projected increase
  •         Colorado: up to 38.3 percent projected increase
  •         Nevada: up to 31.8 percent projected increase
  •         Florida: up to 26.8 percent projected increase
  •         Texas: up to 23.5 percent projected increase
  •         Washington: up to 22.4 percent projected increase
  •         Montana: up to 22.2 percent projected increase
  •         Tennessee: up to 22.1 percent projected increase
  •         Wyoming: up to 22.0 percent projected increase

However, this ranking changes slightly when the projected increase is expressed in the absolute number of jobs rather in percentage. The states expected to have a soaring number of new HVAC job openings for both mechanics and installers then goes:

  •         Florida: estimates 8,740 new HVAC jobs
  •         Texas: estimates 6,190  new HVAC jobs
  •         California: estimates 5,600  new HVAC jobs
  •         Arizona: estimates 3,330  new HVAC jobs
  •         New York: estimates 2,700  new HVAC jobs
  •         North Carolina: estimates 2,150  new HVAC jobs
  •         Colorado: estimates 2,070  new HVAC jobs
  •         New Jersey: estimates 1,890  new HVAC jobs
  •         Tennessee: estimates 1,880  new HVAC jobs
  •         Ohio: estimates 1,770  new HVAC jobs

Final Words

The statistics we shared only proves that there is a great opportunity for HVAC subcontractors in every state this 2020. This is attracting more HVAC professionals to venture into the HVAC subcontracting business so don’t let your guard down and find ways to always stay on top of the competition. Embracing new technologies like subcontractor scheduling software, BIM, data analytics programs, and IoT, as well as other technologies like prefabrication, robotics, leakage detectors, and so much more will help you get an edge over the others. With these tools and the knowledge on which state you should be targeting to work at, any HVAC contractor can surely find success as a tradesperson.

 

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