NEXGEN HVAC: Beating the National HVAC Part Shortage

Nationwide, HVAC companies are facing a parts and equipment shortage in the wake of the COVID-19 pandemic, shutdowns, and stay-at-home orders. Business had slowed in March and April of 2020 and plants were forced to shut down when outbreaks occurred. Many manufacturers had to follow CDC guidelines and shut down for two weeks at a time. At one time or another, all manufacturers were affected, nearly grinding production to a halt. Few predicted the uptick in demand this summer, or the supply chain situation that has taken shape in 2021. 

Defining the HVAC Part Shortage

 A nationwide supply chain problem is impacting the HVAC industry. From social distancing and mask-wearing to the vaccines that have helped somewhat with the pandemic, the current situation isn’t one of a lack of demand. Rather, new dilemmas have arisen on different fronts. Here is a breakdown of what the air conditioning industry is facing.

• HVAC shortage: Contractors saw record sales in May, June, and July 2020. Right now warehouse inventory is short, due to disruptions in factory operations. Shipments of parts and equipment from these facilities have therefore slowed down while demand has risen. Contractors have had to find alternatives at other stores, further heightening demand and straining supplies. A shortage of air conditioning units and parts has taken hold across the country.

• Material Shortage: A shortage of raw materials is having various rippling effects. This has caused metals to rise 20% to 30% in cost and plastics to go up as much as 300%. Shortages in steel, copper, aluminum, and plastics are causing prices to increase across the board. Products like paints, coatings, packaging, plumbing supplies, PVC pipe, and others are in short supply as well.

• Trucking Shortage: A truck driver shortage is causing shipping delays that have led to a lack of supplies and equipment. This, combined with computer chips and other shortages, has created a crisis situation in the HVAC and other industries. The pandemic, among other problems, has reduced labor force participation, while younger workers aren’t entering the industry at high enough rates to replace an aging workforce.

How NexGen HVAC Is Beating the Part Shortage

At NexGen, we have been closely monitoring the materials, parts, and equipment shortages.

"Our prediction is that shortages will persist until around December. We have, however, avoided the brunt of the storm, having ordered parts well ahead of time to make sure enough were in stock to last until we anticipate the shortage to be over", says Ismael Valdez, Founder of NEXGEN.

Predictions on the Shortage

In many cases, the demand for products and services has outpaced manufacturers’ ability to build, produce, and ship them. New closures and setbacks could lead to a more persistent shortage, so many experts are hesitant to predict exactly when supplies will be back to normal. Reports of increased intermodal rail origination, as well as processing at the Port of Los Angeles, are promising and driving some optimism. But summer demand can make it hard to restock shelves, while the impact of shortages vs. demand will vary with seasonal changes and regional requirements. Inevitably, the HVAC materials and parts shortage is expected to last several months. 

Contact NexGen 

NexGen is prepared to address any HVAC issues you have and install new parts and equipment. However, you can avoid needing replacements, and being without the AC on a hot day, by scheduling regular maintenance and tune-ups. We offer comprehensive maintenance plans that provide you with priority service and discounts, as well as convenient and flexible financing options. Feel free to book an appointment online or call us at 833-729-9735.