Steel Industry News
Tariffs and Trends in HVAC
As we head toward 2019, change is impacting the HVAC industry on several levels and it remains unclear how forces like tariffs, regulations, and trends in technology will ultimately balance out.
Superior Duct strives to keep our customers well informed about market trends and situations so that they might mitigate impact on their bottom line. This page will offer resources and news regarding the steel industry.
Our downloadable PDF letters are available here. We are also happy to provide job specific letters of explanation regarding steel costs as completely as we are able, given the volatile nature of the market at this time. Please request this through your salesmen.
As always Superior Duct Management is available to address questions and concerns.
LOOKING TO 2019...
The good news is that the domestic HVAC industry continues to grow. According to the HVAC Insider, HVACR manufacturers reported positive sales growth in 2018 and 87% of respondents expect continued growth across all market segments in 2019.
The U.S. Bureau of Labor Statistics predicts that the market for HVAC labor is set to grow by at least 9% over the next 8 years, which means adding upwards of 12,000 new jobs for sheet metal workers.
STEEL PRICES HAVE LEVELED OUT
Since the March 2018, Tarrif legislation was signed the steel industry has been in a a volatile state, however in final quarter of 2018 we have seen prices stabilize.
MANY FORCES AT PLAY IN HVAC MARKET
As always, there are forces at play in the HVAC market sure to have unforeseen consequences for both good and bad. The ones making the most headlines today are tariffs and trade wars. While international trade is a complex subject, reliable consequences of things like tariffs and trade wars include:
Volatility in the HVAC market
Greater difficulty in accurately quoting HVAC jobs
Passing increased costs on to the customer
SEVERE PRICE INCREASES FORCE SUPERIOR DUCT TO ADOPT NEW POLICY
Any project not yet awarded to Superior Duct Fabrication via Purchase Order will be subjected to the current market value.
We do realize that these adjusted prices may not reflect submitted bids and proposals you have made to your clients, but with the state of affairs as they are we have little choice in the matter. As always, we consider our customers, our service, and the quality of our product a top priority.