According to a new study, the heating, ventilation, air-conditioning and refrigeration (HVACR) industry has seen strong growth in recent years, with output bouncing back to pre-recession levels in 2015. The report was prepared for the Air-Conditioning, Heating, & Refrigeration Institute (AHRI) by the Manufacturing Institute’s Center for Manufacturing Research (in partnership with Inforum at the University of Maryland).
Among the key findings, the HVACR industry shipped $42.0 billion worth of products and equipment to consumers in the United States in 2015, the most recent year with data. Although manufacturers alone account for about 125,000 U.S. jobs, together with upstream suppliers, and downstream distributors, that number increases 883,100 U.S. jobs. In addition to these jobs, there are approximately 408,000 jobs associated with installation, construction, and maintenance related to HVACR which combine to bring the total number of jobs, including contractors, to nearly 1.3 million. The manufacturer jobs alone generated $15.5 billion of value added to the U.S. economy on $10.1 billion of labor compensation.
A state-by-state analysis found that the top three states in upstream (supplier) employment were Texas, California, and Tennessee. The top three states in downstream (distributor/contractor) economic impact were California, Texas, and Florida.
As with other U.S. manufacturing segments, direct HVACR and water heating manufacturing employment fell from 191,000 jobs in 2000 to 125,000 in 2009, where it has remained, essentially steady, since. The vast majority of the decline is due to productivity gains, which have increased at an average rate of 2.2 percent per year, rather than to a decline in output.