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EMERSON CLIMATE TECHNOLOGIES LAU
EMERSON 13
SEER SURVEY SHOWS MOST OF 10 SEER INVENTORY INSTALLED
Survey
also provides insight into current product demand trends including
repair options and up-selling
ST LOUIS,
October 31, 2006 – Emerson
Climate Technologies, a business of Emerson (NYSE: EMR), today
announced that its most recent survey shows that the majority of 10
SEER inventory has been installed.
The survey,
the fifth installment in a series of 13 SEER market surveys that
Emerson Climate Technologies conducted in 2005 and 2006, asks HVAC
contractors and distributors across the industry questions to gauge
their awareness, planning, actions and concerns regarding the 13
SEER regulations. 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.
The most
recent survey shows that 77 percent of 10 SEER inventory has been
used up. The survey also indicates a prediction that 97 percent of
10 SEER inventory will be used up by the end of 2006.
"Some
contractors communicated through the survey that they had stocked up
on 10 SEER inventory in anticipation of the 13 SEER transition,"
said Karl Zellmer, vice president of sales for Copeland Air
Conditioning. "Their primary reasons for holding onto this inventory
include staying competitive in case the competition stocks up on 10
SEER inventory, having prior new-construction commitments, and
having some special needs applications."
The survey
also provides significant insight into the 13 SEER market trends
regarding system repair and replacement for end-users with less
efficient systems. According to this most recent Emerson 13 SEER
survey, 48 percent of contractors are repairing systems more than
they were in 2005. The primary reason for this increase is that
repairs are more cost effective than system replacement. Fifty-seven
percent of contractors surveyed said that the driving force for
repairs is the lower upfront cost.
The survey
also provides information regarding end-users’ 13 SEER buying
trends, showing that contractors are successfully up-selling to 14+
SEER systems.
"Some
industry leaders thought that the high-end market would shrink
substantially with the implementation of 13 SEER regulations.
However, this survey shows that the demand for 14+ SEER systems is
surprisingly high," Zellmer said. "There is a strong end-user demand
for highly featured deluxe products, which 14+ SEER systems are able
to provide."
The reasons
for up-selling include:
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Better Energy
costs |
25 percent |
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Improved
Benefits and features |
22 percent |
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Building
codes or other regulations |
4 percent |
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According
to Zellmer, these results are good news for the industry because
they demonstrate the contractor’s adoption of the 13 SEER world and
his ability to up-sell in new ways.
The fifth 13 SEER survey is a part of
the wrap-up to 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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