Changes in distribution

Implications: Trane will continue to lose share and increasing pressure on Rheem/Ruud is inevitable. The major winner in 2007 was Goodman who continued to gain share asCarrier and York traded partners this year as well as Bryant and Nordyne 

Analysis: It is becoming more difficult for the smaller brands like Rheem/Ruud and others to compete for the big players

Some people estimate that carrier lost $700 million in sales when it parted company with USACD. Part of that may come back as big blue tries to build its 22 stores in SoCal, but much of the commercial business is lost through arrogance and management myopia.

Trane is going to lose punch as IR takes responsibility for the HVAC side. The once powerful alignment of plumbing and A/C is going away, and companies like Fergusson cannot be left with uncompetitive products.

Goodman has continued to lead the way with price point, and in this world of 13 SEER and higher products, Goodman has adapted a Wal-Mart type strategy. They are offering "plain Jane" products at resonable prices.