In survey by AHR Expo and ASHRAE, manufacturers globally are optimistic about economy and their businesses.
With the AHR Expo set to start next week in Chicago, optimism among HVACR manufacturers worldwide about economic conditions and the outlook for their own businesses has risen to record highs, according to the latest AHR Expo and ASHRAE Journal Annual Economic Outlook Survey,
In the survey, 89% of responders forecasted excellent or good growth, up 15% from the outlook in 2017.
That optimism also translated into higher 2018 sales forecasts for the industry, with 74% of respondents forecasting growth rates of greater than 5%, when compared to the 65% of responders who predicted high growth in 2017. In 2017, sales increased significantly (more than 10% year-on-year) for 34% of the responding organizations.
Business is better overall, with 69% reporting higher sales in 2017 versus 57% in 2016.
“With this overwhelmingly positive outlook for next year’s HVACR business, more and more industry professionals will need to search out the newest and best equipment and products available to them.”
– Clay Stevens, manager of the AHR Expo
“With this overwhelmingly positive outlook for next year’s HVACR business, more and more industry professionals will need to search out the newest and best equipment and products available to them,” said Clay Stevens, manager of the AHR Expo.
About two-thirds of the responding organizations reported they will be introducing new technology and products at this year’s expo. Co-sponsored by ASHRAE and AHRI, the AHR Expo will be held January 22-24, 2018 at McCormick Place, Chicago, and is held concurrently with ASHRAE’s Winter Conference
Drilling down into specific market segments, survey participants were the most bullish about the residential, light commercial, office buildings and manufacturing/industry sectors, with 70% forecasting excellent or good growth in those segments.
One shift in the 2018 outlook is that new construction was identified as the biggest market driver, as opposed to maintenance/replacement, which was seen as the biggest driver in 2017.
In terms of customer requirements, reliability was first, with initial costs and energy efficiency close runners-up as the factors expected to be the most influential in their 2018 buying decisions.