We strive to provide the best prices for our customers. Unfortunately, the pandemic has compromised supply chains which has led to manufacturers needing to increase their prices. Today, we are looking into how supply chains work and their effects on pricing throughout the HVAC industry. 

No Industry Has Been Unaffected

The U.S. International Trade Commission provides information on trade relationships. After the pandemic became more widespread, job productivity, manufacturing and production, logistics, and overall business efficiency slowed and even halted. With the widespread threat of the coronavirus, multiple industries pivoted their day-to-day goals and some businesses were forced to close. We also pivoted our day-to-day business to ensur ethe safety of our staff and customers. You can see the steps we took to ensure our clients and employees were safe in this YouTube video. Depending on the severity and quickness of the spread, essential businesses that were able to open were (and are) unable to meet quota as a result of being understaffed. Inevitably, there is a domino effect. Some industries have been hit hard while others have flourished yet, no industry has been unaffected. 

The Largest Suppliers: China and Mexico

Looking at the diagram below, from the U.S. International Trade Commission, notice that Mexico and China are huge assets in providing equipment and parts to U.S. HVAC companies. 

This diagram puts into perspective how one sector within the HVAC industry (A/C Equipment and parts) is largely connected to the global market. Add in other sectors like heating equipment, air filters, electrical coils, and the supply chain challenges become even more complicated.

When Demand Exceeds Supply, Prices Rise 

 Demand is exceeding the supply available, and we are seeing prices rise as a result. Thankfully, with vaccine distributions making their way around the nation and globe, there is a light at the end of the tunnel. At some point, we can expect demand, supply, and prices to regulate.

Interconnected Industries

It is important to recognize what it means for all industries to be affected and demand largely exceeding supply across most industries. When thinking about HVAC, you may not  think immediately of shipping. However, the shipping industry is critical to the HVAC industry! HVAC components are imported from all over the world and so shipping is the mechanism that makes it possible. This means even when production has occurred, the consequences of the coronavirus in the shipping industry are imposing on the HVAC industry. Let’s widen this example. The shipping industry is dependent on fuel, whether it be gas, oil or electricity. With the escalated need for essential resources in hospitals, the demand for fuel is increasing too. Industries are interconnected, and in this case, prices are rising because demand is higher and readily available supplies are lower.

 Despite all of this news, our team is able to operate safely and conduct business in the midst of the pandemic. 

The health and safety of our customers is invaluable, and because we understand the importance of air purity in your home we are continuing to perform routine service checks and offer HVAC services to our Massachusetts residents. 

Plus, you’re always welcome to contact the trusted heating, cooling, and air quality experts at Total Temperature Control.

Whether you need 24-7 emergency service or a solution to improve your indoor comfort—at home and at work—call us at 781-224-2400 or submit a convenient contact form.

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