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EMERSON CLIMATE TECHNOLOGIES LAU
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EMERSON SURVEY SHOWS
CONTRACTORS STILL HAVE TECHNICAL AND ECONOMIC CONCERNS AS INDUSTRY
TRANSITIONS TO 13 SEER
Final 13 SEER survey also
provides insight into contractors’ 13 SEER selling strategies
ST LOUIS, March 9, 2006 –
Emerson Climate Technologies, a business of Emerson (NYSE: EMR), today
announced that its final quarterly 13 SEER survey shows a majority of
HVAC contractors (56 percent) have serious economic and technical
concerns as the 13 SEER regulation goes into effect.
The survey, the final
installment in a series of 13 SEER market surveys that Emerson Climate
Technologies conducted in 2005, asks HVAC contractors and distributors
across the industry questions to gauge their awareness, planning,
actions and concerns regarding preparing for the 13 SEER regulation. The
purpose of the surveys is to help provide an accurate picture of the
market’s transition, which is paramount to maintaining uninterrupted
product delivery and high quality levels as original equipment
manufacturers (OEMs) release their new 13 SEER models to the industry.
The survey showed that 30
percent of participating contractors have serious economic concerns
regarding the 13 SEER transition. Cited concerns include the increased
selling price of the new units; reduced demand due to higher price;
competition undercutting on specifications and price; growing preference
for repair versus replace; and reduced margin on 13 SEER systems.
Twenty-six percent of the contractors surveyed expressed concerns
regarding technical issues, such as the size of the 13 SEER systems; the
possibility of mismatched systems; adequate training for technicians;
and the increased usage of R-410A systems.
"Rightly so, many contractors
still have specific concerns and questions regarding doing business in a
13 SEER world," said Karl Zellmer, vice president of sales for Copeland
Air Conditioning. "That’s why, now more than ever, it’s important that
contractors talk to their OEMs, wholesalers and even other contractors,
as well as take advantage of resources available, such as trade
associations, training classes, websites such as
EmersonClimateContractor.com,
trade publications and magazines."
The survey also provided
insight into contractors’ 13 SEER selling strategies, showing what
benefits and services they plan to promote to upsell homeowners in a 13
SEER world. These benefits and services include:
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Higher efficiency (14 SEER and above) 73 percent
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Quieter operation 68 percent
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Comfort (modulation, humidity control) 56 percent
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Blower type (variable speed/stepped) 56 percent
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Maintenance agreement/longer warranties 52 percent
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New refrigerants (R-410A) 50 percent
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Improved indoor air quality 47 percent
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Compressor type (scroll/reciprocating) 47 percent
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Diagnostics 30 percent
"It’s reassuring to see that many
contractors are now beginning to understand that with the minimum
efficiency at 13 SEER, they will need to adopt a selling strategy
focused on upselling benefits like comfort, indoor air quality and
reliability to continue to be successful," said Zellmer. "The
forward-thinking contractors who follow up their new business and
marketing strategy with improvements in selling skills focused on
differentiation, upselling benefits and new equipment training will be
the most successful during and after the transition."
Emerson Climate Technologies
has been encouraging contractors to understand the issues and
opportunities presented by the new 13 SEER standard, so they can offer
additional value with new products and continue to grow their business.
To help contractors gain a better understanding, Emerson has introduced
the Get SEERious™ educational booklet, which provides
information that helps contractors take advantage of upselling
opportunities. Emerson’s UltraTech Home Series™ line features
products like Comfort Alert™ Diagnostics, the Copeland Scroll
UltraTech™ two-stage compressor and the White-Rodgers®
90 Series™ thermostat, giving contractors many ways to offer
more benefits to homeowners.
The 13 SEER survey, along with
the Get SEERious educational booklet, is a part of Emerson’s Get
SEERious campaign, designed to educate contractors, distributors and
homeowners on 13 SEER and help lead the HVAC industry through a smooth
transition. To view the complete 13 SEER survey results, or to request a
copy of the Get SEERious educational booklet, visit
EmersonClimateContractor.com.
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About Emerson
Emerson (NYSE: EMR), based in St. Louis, is a global leader in bringing
technology and engineering together to provide innovative solutions to
customers through its network power, process management, industrial
automation, climate technologies, and appliance and tools businesses.
Sales in fiscal 2006 were $20.1 billion. For more information, visit
GoToEmerson.com.
About Emerson Climate Technologies
Emerson Climate Technologies, a business of
Emerson, is the world’s leading provider of heating, ventilation, air
conditioning and refrigeration solutions for residential, industrial and
commercial applications. The group combines best-in-class technology
with proven engineering, design, distribution, educational and
monitoring services to provide customized, integrated climate-control
solutions for customers worldwide. Emerson Climate Technologies’
innovative solutions, which include industry-leading brands such as
Copeland Scroll and White-Rodgers, improve human comfort, safeguard food
and protect the environment. For more information, visit
EmersonClimate.com.
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