Contractors Face New Costs in Peak Cooling Season

A fresh wave of HVAC price increases is hitting contractors and distributors in the middle of the busiest part of the cooling season.

Manufacturers raised prices across equipment, coils, motors, ductwork, controls, fittings and other everyday HVAC products during the first two weeks of July.

The increases range from around 3% on some products to as much as 10% on others.

For contractors already juggling packed schedules, rising labor costs and price-sensitive homeowners, the timing could hardly be worse.

What Is Getting More Expensive?

Some of the most notable July increases include:

  • Advanced Distributor Products: Up to 3% on copper air handlers and up to 5% on copper evaporator coils.
  • Aspen Manufacturing: 5% to 6%.
  • Fujitsu: 7%.
  • Modular Metal Fabricators: 8% on flex duct.
  • Nidec–US Motors: 3% to 6.5%.
  • Quietflex Manufacturing: 6% to 8%.
  • Supco: An average of 3% to 5%.
  • Johns Manville: 6% to 8%.
  • JB Industries: 7.5% on several brass products and 10% on vacuum pump oil.
  • Tutco: 10%.

Other increases are still on the way.

CertainTeed is scheduled to raise prices 6% on July 20, while Heat Controller has announced increases of up to 8% on certain unitary equipment and accessories supplied by Allied, effective July 29.

The increases are not limited to one type of product or one part of the supply chain. They are showing up across the materials and components contractors use on routine service calls, changeouts and new installations.

The Percentage Is Not the Only Problem

A 5% increase may not look dramatic on paper.

But contractors rarely absorb only one increase.

The equipment may cost more. The coil may cost more. The flex duct, fittings, controls and installation materials may cost more. Labor, insurance, vehicles and financing costs have also moved higher.

Put all of that together and the cost of completing the same job can change quickly.

That creates a particular problem for contractors who quoted work using pricing from several weeks ago.

A replacement job sold in June may no longer carry the same margin when the equipment is picked up in July.

For companies operating on tight margins, absorbing even a few hundred dollars in unexpected costs across multiple jobs can turn a strong month into a disappointing one.

Old Price Books Are Becoming Dangerous

The industry’s pricing environment has become volatile enough that some distributors are warning customers that prices may change with little or no notice.

That means contractors can no longer assume a price entered into their system last month is still accurate today.

During peak season, it is easy to overlook.

Phones are ringing. Technicians are running calls. Comfort advisors are trying to close replacements quickly. Office teams are trying to keep up with estimates and equipment availability.

But using an outdated cost on a high-ticket replacement can wipe out the profit from several smaller service calls.

Contractors may need to review supplier pricing more frequently, shorten the period for which an estimate remains valid and confirm equipment costs before finalizing larger jobs.

The days of updating the price book once or twice a year appear to be over.

Homeowners Are Already Feeling Stretched

The increases are also arriving at a difficult time for consumers.

A homeowner with a failed air conditioner in July does not have the luxury of waiting several months for prices to settle. They need cooling restored quickly, often while dealing with an expense they did not plan for.

Higher prices can make the sales conversation harder.

Some homeowners may choose a lower-priced system. Others may repair older equipment instead of replacing it. Some may delay optional upgrades or rely more heavily on financing.

That puts contractors in the uncomfortable position of explaining why a replacement costs more than the homeowner expected—even when the contractor’s own margin has not increased.

Clear communication will matter.

Rather than apologizing for the price, contractors can explain what is included, show customers their options and focus the conversation on reliability, comfort, operating cost and long-term value.

Distributors Face a Different Challenge

For distributors, price increases create both an opportunity and a risk.

Inventory purchased before an increase may become more valuable. But replacing that inventory will cost more.

Branches must decide when to update customer pricing, how much notice to give contractors and how to handle products that arrive at different costs.

There is also the possibility that contractors begin switching between brands or product categories based on availability and pricing.

That could benefit manufacturers and distributors with inventory on the ground. It could hurt those dealing with longer lead times or steeper increases.

The result may be a more fluid market, with contractors becoming less loyal to a particular product when the price gap becomes difficult to justify to homeowners.

More Increases Are Coming in August

July is not the end of the story.

Distributor notices already show another round of increases scheduled for August.

Goodman, Daikin and Amana equipment are among the brands expected to see adjustments, alongside AprilAire, Bard, tekmar, Field Controls and several parts manufacturers.

Geary Pacific currently lists increases of up to 7% on Goodman, Daikin ductless, VRV and light-commercial products beginning August 3. Johnstone Supply has also posted upcoming August changes across several equipment and component manufacturers.

Contractors who have not reviewed their pricing recently may therefore be exposed to two rounds of cost changes in quick succession.

What Contractors Should Do Now

The practical response is not complicated, but it requires discipline.

Contractors should confirm current equipment costs before presenting major replacement proposals. Estimate expiration dates should be clearly stated. Price books and flat-rate systems should be reviewed more often.

Companies may also want to look carefully at jobs that have been sold but not yet installed.

The goal is not to raise prices blindly. It is to make sure increases are based on actual replacement costs and that the business is not unintentionally absorbing expenses it cannot afford.

Peak cooling season is when HVAC businesses expect to generate a significant share of their annual profit.

This year, contractors will need to make sure rising costs do not quietly take that profit back.