Cool breeze: Industry revenue will continue rising despite a high trade gap

In the five years to 2017, revenue for the Heating and Air Conditioning Equipment Manufacturing industry is expected to increase. During this period, the Canadian residential construction and real estate markets are expected to steadily grow due to strong underlying fundamentals, including an expanding, urbanizing and progressively wealthy population. This trend, in turn, has bolstered industry sales, as heating, air conditioning, ventilation and refrigeration (HVACR) equipment is typically installed in new buildings to regulate climate and provide ventilation for residential units and commercial venues. Moving forward, industry revenue is expected to expand slowly...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
5.8%
Forecast Growth 17-22
Profit
Employment
14,077
Businesses
693
Market Share of Companies

Industry Threats & Opportunities

  • Increases in employment and disposable income will help boost HVACR sales
  • This industry exhibits a high and increasing level of international trade
  • Higher disposable income and corporate profit will drive HVACR replacement demand
  • Industry Report - Starting a New Business Chapter

    The main barriers to entry include stiff competition from less expensive imports and the overall declining state of the Heating and Air-Conditioning Equipment Manufacturing industry. Like most manufacturing pursuits in the United States and Canada, this industry exhibits an ongoing state of decline. This trend is primarily due to imports' growing share of domestic demand. As steel prices have increased over the past five years, Canadian manufacturers experienced upward pressure on product prices. In an expanding economy, increasing costs can be passed onto downstream markets in the form of higher prices, as there are few substitute goods that can replace heating, ventilation, air conditioning and refrigeration (HVACR) equipment and the other types of goods this industry makes...purchase to read more.

    Additional Insights for the Heating & Air-Conditioning Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heating & Air-Conditioning Equipment Manufacturing Industry are

  • Ability to accommodate environmental requirements
  • Control of distribution arrangements
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Value of nonresidential construction in the Heating & Air-Conditioning Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Heating & Air-Conditioning Equipment Manufacturing Industry?

    This industry manufactures heating equipment, commercial refrigeration equipment, air conditioners, commercial and industrial fans, blowers, air purification equipment and electric and nonelectric heating and refrigeration equipment. Marine and motor vehicle systems are excluded, as are industrial process furnaces and small household appliances.

    Industry Products
  • Heating and commercial refrigeration equipment
  • Heating equipment (excluding warm-air furnaces)
  • Air-purification equipment
  • Industrial and commercial fans and blowers
  • Miscellaneous receipts
  • Industry Activities
  • Manufacturing air-conditioning, warm-air heating and refrigeration equipment
  • Manufacturing heating equipment (except warm-air furnaces)
  • Manufacturing commercial and industrial fans and blowers
  • Manufacturing air purification equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Value of nonresidential construction
  • Value of residential construction
  • Demand from heating and air-conditioning contractors

  • Current Performance
  • Downstream markets start strong
  • The importance of trade
  • Industry structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Continued strength in downstream demand
  • Trade movements
  • Energy conservation and regulations
  • Industry landscape
  • Table: Heating & Air-Conditioning Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heating & Air-Conditioning Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Homebuilders in Canada
  • Apartment & Condominium Construction in Canada
  • Plumbing, Heating & Air-Conditioning Equipment Wholesaling in Canada
  • Commercial Building Construction in Canada
  • Municipal Building Construction in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Electrical Equipment Manufacturing in Canada
  • Ferrous Metal Foundry Products in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Navigational Instrument Manufacturing in Canada
  • Screw, Nut & Bolt Manufacturing in Canada
  • Valve Manufacturing in Canada

  • Products & Services
  • Heating and commercial refrigeration equipment
  • Heating equipment (excluding warm-air furnaces)
  • Air-purification equipment
  • Industrial and commercial fans and blowers
  • Miscellaneous receipts
  • Chart: Heating & Air-Conditioning Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Replacement and remodelling markets
  • Residential and commercial construction
  • Food service and storage
  • Chart: Major Market Segmentation for the Heating & Air-Conditioning Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWage costsOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Heating & Air-Conditioning Equipment Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating & Air-Conditioning Equipment Manufacturing Industry

  • Industry Globalization
    Nortek Inc.,
  • Table: Nortek Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heating & Air-Conditioning Equipment Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heating & Air-Conditioning Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Canadian-dollar effective exchange rate index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Chlorofluorocarbons
  • A common type of refrigerant used in air-conditioning systems that is being phased out because it contributes to depleting the ozone layer; usually abbreviated as CFCs.
  • Hvacr
  • An abbreviation for heating, ventilation, air-conditioning and refrigeration equipment.
  • Hydrochlorofluorocarbons
  • A type of CFC, known in the industry as HCFC-22, that is considered more environmentally friendly but is still being phased out.
  • Refrigerant
  • A chemical compound or coolant used to achieve low temperatures in air-conditioning and refrigeration equipment.
  • What Our Customers Say

    Why buy this report?

    The Heating & Air-Conditioning Equipment Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heating & Air-Conditioning Equipment Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heating & Air-Conditioning Equipment Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heating & Air-Conditioning Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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