R22 and RHI legislation promise greatest growth
R22 replacement and domestic heating renewables are set to provide the greatest growth opportunities for the HVAC industry in 2014, says Peter Verkempynck, Managing Director of Daikin UK.
In his address to the market on key trends for 2014, Peter Verkempynck predicts: “The outlook for 2014 is conservative, with only 2-3% growth anticipated in the AC market this year. Competition is expected to be fierce, with continued pressure on margins for all participants.
“However, demand for R22 replacement could buck the trend and drive a new impetus in the market later in the year, ahead of January 2015’s ban on all R22 systems. With a large number of R22 systems still operational throughout the UK, the distress purchase of R22 upgrades and replacement solutions could flood the market, reversing the previous sluggish conditions and signalling a major opportunity to boost order books. For AC contractors, the key to meeting this surge in demand will be having equipment readily available and enough skilled installation capacity to service this requirement.”
For the domestic market, Peter Verkempynck went on to say: “Domestic renewables is another key area of growth, with the Renewable Heat Incentive (RHI) due to launch in the spring. Assuming the RHI launches as planned, it is expected to provide a serious boost for market conditions, delivering double digit market growth by stimulating demand from homeowners and social housing providers.
“For installers who have invested in the skills and MCS accreditation to fulfil domestic heating projects, the renewables market provides a major opportunity to increase turnover. But this opportunity will come with much greater and substantially different expectations for after-servicing, for which installers should be fully prepared.
“To take advantage of the major market opportunities for 2014, contractors and installers should study in detail the Government legislation on carbon reduction and energy efficiency in buildings – and consider how intelligent HVAC solutions can satisfy the need to reduce energy consumption and carbon emissions.”