Your HVAC system is arguably one of the most expensive appliances in your home, and choosing to replace your unit is an investment. Over the years, installing a new HVAC system has become even more expensive. In this blog we are going to share some of the top reasons why HVAC prices are rising.
Labor Costs
Like many other industries, there is a shortage of skilled labor in the HVAC field. Contractors need more qualified HVAC technicians, and the demand for services exceeds the number of currently trained HVAC technicians. It takes HVAC companies time and resources to hire and train new technicians, which can also lead to longer wait times on installations and repairs. All of these factors have also led to increased labor costs and higher wages.
Inflation
Inflation has also played a role in the increased price of HVAC systems and services. Metals necessary for HVAC units, like copper and aluminum, have increased in price. Transportation costs, such as gas and logistics, have also risen. In order to keep up with inflation, manufacturers and HVAC companies have both been forced to increase their prices.
Shortages
Since COVID, there have been shortages in parts due to plant shutdowns and a decrease in production. This has caused shortages in HVAC components and systems. Manufacturers have had a challenging time keeping up, and any additional expenses have also been passed along to the consumer.
Phase-Out
Finally, the phase-out of R410-A has caused the cost of HVAC units to rise. R-410 is a commonly used refrigerant that is being phased out due to environmental regulations, and its global warming potential. This has caused contractors and consumers to transition to alternatives that are more suitable for the environment. Cooling systems that are manufactured starting in 2025 must use an alternative refrigerant, causing the price of HVAC units to go up.
Will costs continue to rise?
Though prices continuously fluctuate over time, trends predict that HVAC unit prices will remain high for the foreseeable future. Because labor costs, inflation, and this phase-out have increased costs, manufacturers are having to raise their prices to keep up with the changes. As new discoveries are made about our environment and the effect these refrigerants have on our atmosphere, it is impossible to know how cost will be impacted.
Advance Mechanical encourages you to plan ahead for your home. Stay on top of regular maintenance and schedule your yearly tune-ups on time to keep your unit running smoothly, saving you money in the long run. For any questions on the cost of new systems, repairs to old systems, or the phase-out, give us a call today, 252-355-9191.