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New York, NY (PRWEB) December 25, 2013

Revenue for the Heating and Air Conditioning Wholesaling industry has been volatile over the past five years, largely due to declines in residential and commercial construction and private spending on home improvements. However, after substantial revenue losses in 2008 and 2009, the industry began to recover in 2010, according to IBISWorld Industry Analyst Stephen Morea. Consequently, revenue is expected to continue growing through 2013 to total $32.0 billion. However, this increase is not enough to outpace recessionary declines and so industry revenue is expected to decrease by an annualized 1.2% in the five years to 2013.

New home construction, which is measured by the number of US housing starts, began its recovery in 2010. This growth accelerated in 2012, when housing starts jumped 29.0% and is expected to increase an additional 16.7% in 2013. This is a crucial trend because many of these new residential structures will require heating or air conditioning equipment, boosting demand for the industry, says Morea. Demand from commercial building contractors also improved after the recession and these companies will provide new work, additions and repairs to offices and other structures. As a vital downstream market for industry wholesalers, rising demand from contractors will ultimately increase revenue an expected 2.7% in 2013.

In the five years to 2018, rising employment and disposable incomes will boost homeowner's spending ability. This, in turn, will lead to stronger demand for home improvements, which includes upgrades in heating and air conditioning equipment. The enforcement of several environmental regulations will also aid industry growth. For example the Environmental Protection Agency's plans to eliminate hydrochlorofluorocarbons (HCFCs) includes a 90.0% reduction in HCFC product consumption and production by 2015. This ruling will spur heating and air-conditioning replacement demand because HCFCs often occur as leakage from cooling appliances. Other incentives such as tax rebates and savings associated with buying new, energy-efficient equipment, will help industry revenue increase by 2018.

For more information, visit IBISWorlds Heating and Air Conditioning Wholesaling in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Wholesalers in this industry engage in buying, selling and distributing heating, ventilation and air conditioning (HVAC) equipment. This industry excludes in-room and in-window air conditioners (e.g. "swamp coolers," see IBISWorld report 42362) and hydronic equipment (see IBISWorld report 42372). Moreover, while installation is also excluded, service and repair work are part of this industry, accounting for less than 2.0% of industry revenue.

Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle Products & Markets Supply Chain Products & Services Major Markets Globalization & Trade Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Barriers to Entry Major Companies Operating Conditions Capital Intensity Key Statistics Industry Data Annual Change Key Ratios

About IBISWorld Inc. Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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