Strategic Questions for Choosing the Right Supplier
The heating, ventilation and air-conditioning (HVAC) construction and maintenance market has been flourishing in the past three years. Increased adoption and use of central air systems have pushed market revenue up 4.3% to $91.7 billion in 2017. HVAC systems are used throughout all industries to provide comfortable working and living conditions for occupants. Furthermore, many companies have been upgrading their AC systems to be more energy efficient, thereby spurring demand for these services.
Suppliers in this market often provide a range of services under the HVAC umbrella, such as system, filter and boiler inspection; preventive and emergency maintenance; and water treatment services. While in-house maintenance services can cover some aspects of HVAC maintenance, the importance and complexity of these systems often pressure buyers into seeking third-party service providers with strong credentials and experience. Such suppliers often reduce further expenses through preventive maintenance and greater technical experience.
The number of service providers for HVAC construction and maintenance typically correlates with trends in a region’s construction market. Most vendors have fewer than 20 employees and focus on small construction projects or building AC maintenance. Additionally, startup costs and barriers to entry are low in this market, which allows it to expand and contract alongside the overall construction market. ProcurementIQ estimates that there are more than 108,000 service providers operating in the HVAC construction and maintenance market in 2017. While market competition varies by region, it is generally high due to the breadth of available suppliers. Given the size of the market, buyers can often have difficulties choosing a vendor.
To assist in the selection process, ProcurementIQ has identified several key questions procurement professionals should ask when selecting an HVAC construction and maintenance service provider:
Sign up to our newsletter
Suez Canal Crash Further Destabilizes Global Supply Chains
While it’s unlikely to disturb this year’s projected economic growth, the Suez Canal blockage is yet another wake-up call to prioritize supply chain resilience.
Procurement and the Labor Market in 2021
Procurement professionals and hiring managers who closely follow trends in the labor market will be better equipped to contend with the growing deployment of a temporary workforce, increasing costs of attrition, mounting shortages of skilled labor and worsening labor market inequality.