No industry has been left untouched by recent supply chain challenges. The three major supply chain troubles affecting the HVAC industry have been price increases, product shortages and increased lead times.
- Price increases— Materials such as steel, aluminum, copper and plastics are expected to rise between 20 and 30 percent in the coming months. Copper and steel price indexes are at record highs, while prices of goods in residential construction have increased nearly 10% in the last year according to the S. Bureau of Labor Statistics.
- Product shortages— Shortages in electrical components—like motors and compressors—and microchips have been reported throughout this last year. However, the MERV 13 Air Filtration filter shortage has been the most widely reported as hospitals, schools and other organizations are demanding high-quality air filtration systems to defend against COVID-19. As more businesses begin to open their doors, the demand could increase even more.
- Increased lead times— Transportation costs have increased significantly due to labor shortages that contribute to longer wait times. Demand is up, but the personnel required to fulfill that demand is down.
Best Mechanical is mitigating these challenges by communicating with our customers every step of the way. For more information on how Best Mechanical can help your organization during this time, contact one our HVAC experts today.