Opportunity for higher revenues and margins seen as upside of increasing efficiency standards
St. Louis, August 28, 2014 – While many HVAC contractors remain uninformed about changes in energy efficiency regulations coming in 2015, some are thinking ahead to how these changes will affect their businesses. A survey by Emerson Climate Technologies, Inc., a business of Emerson (NYSE: EMR), found that 40 percent of commercial contractors and 42 percent of residential contractors in the northern region foresee upsell opportunities, while only approximately 30 percent of residential contractors in the south and southwest look forward to higher revenue or higher margins. Some contractors surveyed were concerned that the new regulations would limit their ability to compete.
The survey of 618 contractors, conducted via email by Emerson Climate Technologies in early 2014, found many still were uninformed about the changing efficiency regulations. The new regulations affect regional standards for residential unitary air conditioning and heat pump systems, part-load efficiency requirements for light commercial split, package and rooftop systems, and chiller standards.
“There is a lot of uncertainty about these upcoming regulations. Contractors are right to be concerned about how these regulations will affect their companies, however, we agree with those in the industry who see upsell opportunities for greater efficiency and comfort,” said Frank Landwehr, vice president Air Conditioning Marketing, Emerson Climate Technologies. “During this change our job is to support our industry partners in helping to create technology options that will meet and exceed these regulations, and also to help educate both contractors and consumers with tools like our online resource AC and Heating Connect.”
The Emerson survey found that contractor awareness of the 2015 regulations is gradually improving. Of those residential contractors who were aware of the coming regulations, 35 percent have spoken with an OEM or distributor and attended product information meetings. More than 55 percent of commercial contractors have consulted with an OEM or distributor and attended product meetings.
For more information on how contractors can sell high efficiency systems and resources for homeowners, visit www.ac-heatingconnect.com
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2013 were $24.7 billion. For more information, visit www.Emerson.com
About Emerson Climate Technologies
Emerson Climate Technologies, a business segment of Emerson, is the world’s leading provider of heating, 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. The innovative solutions of Emerson Climate Technologies, 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 www.EmersonClimate.com
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