HVAC new construction business outlook

Implications: As the statistics show, even though we have seen a slight rebound in new construction, we are still in a decline and have not hit bottom yet. This effects all aspects of the business including equipment, supplies and commodities. Currently the new construction segment of the hvac industry represents 25%-30% of the business.  The effects on the business are further mitigated by the lower margins this segment brings.  Another factor mitigating this downturn is the 13 Seer transition.

Analysis: 1)  The hvac new construction segment is still declining. 
2)  The effects on businesses focused heavily on this segment or on commodities and supplies may be substantial.
3) With the 13 Seer transition and several price increases over the last 18 months, performance needs to reviewed based on units and not dollars.