Clearing the air: Revenue is rising, despite import competition heating up and profit cooling

The Heating, Cooling and Ventilation Equipment Manufacturing industry has benefited from increased non-residential, and multi-unit apartment and townhouse construction activity, and stronger demand for heating and cooling equipment over the past five years. Industry revenue is expected to increase at an annualised 3.2% over the five years through 2017-18, to reach $1.7 billion. This includes an estimated 1.5% drop in the current year, due to a large fall in multi-unit and townhouse construction, and low growth from non-residential building construction. In contrast, industry revenue surged by an estimated 26.7% in 2014-15, due to high demand growth from commercial building construction and supermarkets...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
3.2%
Forecast Growth 18-23
Profit
Employment
4,790
Businesses
331
Market Share of Companies

Industry Threats & Opportunities

  • Some domestic firms have outsourced production to Asia to cut costs and improve margins
  • Higher input costs and weak pricing growth have contributed to lower margins
  • Demand from multi-unit apartments is projected to increase over the next five years
  • Industry Report - Industry Investment Chapter

    The industry is moderately capital-intensive, with high labour costs and medium capital requirements for plant and machinery to manufacture goods. For each dollar spent on labour costs in 2017-18, an estimated $0.16 will be invested in capital plant, equipment and vehicles. The industry's capital intensity has declined over the past five years, despite an increase in capital investment. This lower capital intensity is due to a greater rise in wages as a proportion of revenue compared with the increase in capital investment.Although research and development costs are low in the industry, these are expected to rise over the five years through 2022-23. Gre...purchase to read more.

    Additional Insights for the Heating, Cooling and Ventilation Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heating, Cooling and Ventilation Equipment Manufacturing Industry are

  • Economies of scope
  • Effective quality control
  • Having marketing expertise
  • IBISWorld analysts also discuss how external factors such as Demand from non-residential building construction and Demand from air conditioning and heating services in the Heating, Cooling and Ventilation Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Heating, Cooling and Ventilation Equipment Manufacturing Industry?

    Companies in the industry manufacture commercial or industrial HVAC (heating, ventilation and air conditioning) equipment, including installed space heaters and refrigeration products. Air conditioning systems manufactured in the industry are of commercial strength and range from eight kilowatts to over 5,000 kilowatts. These exclude motor vehicle air conditioners. Firms that manufacture household and automotive air conditioning and heating units are not included in the industry.

    Industry Products
  • Commercial air conditioning units
  • Commercial refrigeration equipment
  • Commercial heating equipment
  • Commercial ventilation systems
  • Commercial reverse-cycle air conditioners
  • Other commercial HVAC equipment
  • Industry Activities
  • Air conditioning equipment
  • Air conditioning compressors and parts (excluding motor vehicles)
  • Beverage cooling and dispensing equipment
  • Coolroom refrigeration plant
  • Refrigeration equipment
  • Solar water heating system
  • Space heating systems
  • Refrigerated vending machine
  • Water cooler
  • Water heater
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from non-residential building construction
  • Demand from air conditioning and heating services
  • Domestic price of iron and steel
  • Trade-weighted index
  • Demand from multi-unit apartment and townhouse construction

  • Current Performance
  • Revenue and markets
  • Maintenance and climate change
  • International trade
  • Profit and establishments
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream construction activity
  • Energy efficiency
  • International trade
  • Profit and consolidation
  • Table: Heating, Cooling and Ventilation Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heating, Cooling and Ventilation Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Multi-Unit Apartment and Townhouse Construction
  • Air Conditioning and Heating Services
  • Commercial and Industrial Building Construction
  • Institutional Building Construction

  • Key Selling Industries
  • Iron and Steel Casting and Forging
  • Iron Smelting and Steel Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Commercial air conditioning units
  • Commercial refrigeration equipment
  • Commercial ventilation systems
  • Commercial reverse-cycle air conditioners
  • Commercial heating equipment
  • Other commercial HVAC equipment
  • Chart: Heating, Cooling and Ventilation Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other non-residential buildings
  • Hospitals and other medical centres
  • Multi-unit apartment buildings
  • Retail and wholesale buildings
  • Office buildings
  • Educational buildings
  • Warehouses and factories
  • Other industrial buildings
  • Chart: Major Market Segmentation for the Heating, Cooling and Ventilation Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Heating, Cooling and Ventilation Equipment Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heating, Cooling and Ventilation Equipment Manufacturing Industry

  • Industry Globalization
    Daikin Australia Pty Ltd, Rheem Australia Pty Limited,
  • Table: Daikin Australia Pty Ltd - financial performance
  • Table: Rheem Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heating, Cooling and Ventilation Equipment Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heating, Cooling and Ventilation Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Compressor
  • A part of an air conditioner that circulates refrigerant through the unit.
  • Condenser
  • A part of an air conditioner that expels heat from the unit.
  • Eer
  • Stands for energy efficiency ratio, which measures the level of output (in British thermal units per hour) to the level of input (watts).
  • Evaporator
  • A part of an air conditioner that extracts heat from the air.
  • Hcfc
  • Stands for hydrochlorofluorocarbons, which is a common type of refrigerant used in air conditioning systems and is commonly known as HCFC-22.
  • Hvac
  • Heating, ventilation and air conditioning, which refers to the systems and technology for developing indoor environmental comfort through temperature and humidity control.
  • Meps
  • Minimum Energy Performance Standards, as defined by the energy efficiency ratio.
  • What Our Customers Say

    Why buy this report?

    The Heating, Cooling and Ventilation Equipment Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heating, Cooling and Ventilation Equipment Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heating, Cooling and Ventilation Equipment Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heating, Cooling and Ventilation Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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