Raw material shortages are causing higher prices across many industries, and the HVAC industry is no exception. For homeowners considering when to replace an older heating and cooling system this may mean moving up the purchase decision to avoid paying even more this summer and fall.
According to Ken Simonson, chief economist for Associated General Contractors of America (AGC), there are a variety of materials being affected by these shortages. They include steel, copper, pvc pipe and plumbing supplies, vinyl siding, paints, coatings, and even packaging such as the layers in corrugated boxes. Many of these are key components in the manufacture and installation of HVAC equipment.
Of course the COVID-19 pandemic has had a major role in these shortages, but you can also point to the February ice storms in Texas for some of the problems with plumbing supply production. Combine these natural forces with the increased demand from homeowners spending more time in their homes and it truly is a perfect storm of limited supply and higher demand.
As for when we expect to see availability return to normal, Simonson said that “some additional production capacity is expected to come online later this year, but industry analysts are not yet predicting when prices or delivery times will come down.”
What this means for you
What does this mean for homeowners with older furnaces or air conditioners wondering whether they should replace now or wait until their system fails?
The dramatic price increases being seen along the supply chain haven’t yet had a major impact on local HVAC companies. However, prices naturally rise each year with inflation, and 2021 does look like it will bring unusually high prices. Suppliers are reporting this will be especially true as we get into the peak demand season this summer.
It’s always better to replace a furnace and air conditioner system during slower seasons when prices are better, rebates are available, and HVAC companies have more freedom to work around your schedule.
So, if you have been thinking about upgrading an old HVAC system, this spring might be the ideal time to beat the rush and the rising prices on a new system that you won’t have to worry about for a very long time.
Want to look at your options?
If you’d like to find out what the best options would be for a new heating and cooling system in your home, we’re here to help. Fortunately we still have rebates available both from manufacturers and utility companies on higher efficiency systems. Contact us today to schedule a free no-obligation in-home estimate and our friendly project managers will help you design the ideal system for your home and your budget.