| SIC Codes: | |
| NAICS Codes: | 333413 333414 333415 |
Companies in this industry manufacture residential and commercial heating, ventilation, air-conditioning (HVAC), and air-purification equipment, as well as commercial refrigeration equipment. Major US companies include Goodman Global, Lennox, Nortek, Trane, and the climate control divisions of Johnson Controls and United Technologies.
Demand for HVAC equipment depends on replacement rates of existing equipment, residential and commercial real estate construction, and home sales, all of which can be cyclical. The profitability of individual companies depends on efficient operations and effective marketing. Large companies enjoy economies of scale in buying manufacturing equipment and raw materials. Small companies can compete effectively by specializing in product niches. The industry is concentrated: the top 50 companies account for about 70 percent of revenue.
Major product categories are air-conditioning and warm air heating equipment, and industrial and commercial refrigeration equipment (75 percent of industry revenue), heating equipment (10 percent), air purification equipment (10 percent), and industrial and commercial fans and blowers (5 percent).