Slowing Construction in Glens Falls, Queensbury Not Good For HVAC Business

Posted on February 19, 2012 by Kevin Raymond

Not surprisingly the local construction numbers in Glens Falls and Queensbury were down in 2011. The Post Star reported today that construction in both areas declined by roughly half the level of 2010.

From The Post Star:

The city issued building permits for $13.81 million of construction in 2011, compared with $25.26 million in 2010, according city Code Enforcement Office annual reports.

Queensbury experienced a similar decline in construction activity, dropping to $28.6 million in 2011 from $41.2 million in 2010, according to the town Community Development Office annual report.

We are seeing the same thing in our business with the majority of our work coming from people remodeling a room or basement, not building new homes. There is much less demand for full duct systems and more for furnace replacements or repairs. There has been minor demand for some movement of duct work for better air flow, upstairs heat or new additions. However, this has not been something to be counted on like it may have been in the past. The jobs are scare and competitive.

Because we focus on sheet metal fabrication along with heating and cooling installation, we have a good idea of what’s going on locally. Granted, we are very small in comparison to other companies. However, we have been in the area for over 20 years and know many companies that have been seeing the same things. Much of the trickle down fabrication for these companies comes our way and last year was much slower.

If the 2011 trends continue through 2012, business in the local residential HVAC market will continue to feel the pain of the last few years. I don’t see many of our customers on as regular a basis like before the financial crisis. Many have found jobs in other fields or signed on with larger companies in the area. This can hurt us a bit because a lot of our business comes from the micro business service and installation professionals.

We can only hope for a warm summer and good air conditioning sales because the mild winter has not helped the beginning of this year. A summer with last years cool temperatures and we could see some lower revenues through the middle of the year as well. Last year we noticed a lot of customers asking about widow units rather than a new central air system.

If that trend continues, it would not be good for business throughout 2012.

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My Memories of Gary ‘The Kid’ Carter

Posted on February 17, 2012 by Kevin Raymond

I was sad to read about the passing of Gary Carter on the twitter feed last night. My family and I are life long New York Mets fans and the teams with Gary Carter behind the plate were what I grew up with. I never missed a game.

Those Mets teams made me love the game of baseball.

I remember my cousin and I would play in the backyard, him as Gary Carter and me as Dwight ‘Doc’ Gooden. He was infatuated with Carter and I with Gooden. My cousin went so far as to model his batting stance and swing after ‘The Kid’ and used it all the way through high school. Every time we played against each other it was like watching a childlike Carter impersonator. I loved it.

We lived and died with those Mets teams and I loved watching Gary Carter play the sport. I was always the rough, hustle everything out type of player and I learned it from watching Gary Carter play day in and day out. He always looked like he was having fun playing a game that most little boys grow up wishing to play.

I never knew him as a person, but when you grow up watching and loving certain people and professionals, it’s tough not to feel like they are a part of your life. Everything I’ve ever heard or read about the man has lead me to believe he was a good person. I’m glad that a gentleman like Gary ‘The Kid’ Carter existed and he will obviously be missed in the baseball world.

Markets Crushed Again Today

Posted on August 8, 2011 by Kevin Raymond

From Bloomberg.com

I follow the markets pretty close and buy and sell for my own accounts. The markets performance over the last few weeks has been dismal and unless the government gets their act together, it doesn’t feel like it will be easing anytime soon. The only solace is the possible relief in the prices of gasoline and other commodities. A drop in our current metal prices could benefit us into the end of the year if business slows because of these moves in the major markets.

Senate Bill Could Bring More HVAC Business to The Northeast

Posted on April 4, 2011 by Kevin Raymond

One thing that could help jump start the HVAC business here in the Northeast is a bill being introduced to the Senate by Sen. Jeff Bingaman, D-N.M to update the efficiency standards for many appliances and building systems, including furnaces, heat pumps, and central air conditioners.

From achrnews.com
Titled the “Implementation of National Consensus Appliance Agreements Act of 2011,” or INCAAA, the bill (S. 398) divides the nation into three regions with different efficiency standards for each. It also recommends more stringent building codes for new construction.

The INCAAA bill is based on the consensus standards agreement signed in October 2009 by major industry associations, including the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) and more than a dozen individual furnace and air conditioner manufacturers.

The last time standards were changed here in the Northeast there was a number of customers who had to upgrade their cooling systems to 13-seer systems. This was good for many companies in town because some of these smaller upgrade jobs are a major source of business for many smaller firms in this area. This time the changes focus more on the % efficiency of your furnace and will mean that customers may need to change out their current furnace. This should provide a much needed uptick in smaller jobs for many micro and small HVAC contractors in the Northeast.

From achrnews.com
The INCAAA bill divides the United States into three regions: North, South, and Southwest. Specifically, the North region comprises states with population-weighted heating degree days (HDD) equal to or greater than 5,000; the South comprises states with population-weighted HDD less than 5,000; and the Southwest comprises Arizona, California, Nevada, and New Mexico.

According to an AHRI fact sheet, in the North region, most furnaces will be required to have an AFUE of 90 percent or more, an increase from the current national standard of 78 percent. In the South, central air conditioners will be required to have a SEER of 14, up from the present national requirement of 13 SEER. Heat pump and oil furnace standards will rise on a nationwide basis.

Also helping business would be the nationwide rise in standards for oil furnaces and heat pumps. Many customers here in the Northeast rely on oil as their main source of heat and are stuck with outdated furnace systems that would need to be changed.

The big question is if the bill that has been introduced will even pass. According to the article, if the bill was a rare standalone bill, it would pass without fail. However, if the bill is attached to something with some stronger opposition there could be complications getting the bill through the Senate. The next step, if the bill does pass the Senate is the House of Representatives before the bill could be signed and the standards would go into effect.

Read the full article HERE

Source:
Appliance Standards Introduced in Senate (achrnews.com)

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Category Archives: News

Slowing Construction in Glens Falls, Queensbury Not Good For HVAC Business

My Memories of Gary ‘The Kid’ Carter

Markets Crushed Again Today

Senate Bill Could Bring More HVAC Business to The Northeast

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