According to many economists and experts, we are currently in a recession or at the beginning of one. How does this affect consumers when purchasing an HVAC system and making decisions about repairing or replacing their heating and air conditioning equipment? in this video, Joshua Griffin goes through how decisions can change in a down economy when homeowners are already paying higher gas prices, inflated prices on everything, and worrying about what's next in their obstacles in creating a comfortable home.
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Chapters
0:00 Intro: Are we in a recession?
0:25 Repair or Replace
1:26 Interest rates
2:35 Labor Market changes
3:33 New business owners
4:56 Homeowners decisions
5:41 How I grew up and decisions
6:04 Your decisions
6:25 Housing Market
7:00 Outro
#recession #hvac #economy
For more information on Griffin Air, visit https://www.griffinair.net/
For more information on New HVAC Guide, visit https://www.newhvacguide.com/overview
*Need Financing for your HVAC? Visit https://www.newhvacguide.com/financing
*Own a Service Biz and want to grow? Visit https://www.newhvacguide.com/mastermindgroup
*Our favorite products?
Favorite Thermostat click here: https://amzn.to/3wt3Vwh
Favorite Air Cleaner here: https://amzn.to/3Nfxw27
Favorite Air Filter here: https://amzn.to/3vpVbWl
Air Tester/Monitor here: https://amzn.to/3oJ3LvD
Dehumidifier here: https://amzn.to/3Q4woPp
Humidifier here: https://amzn.to/3ilZ9vq
Smart Vent here: https://amzn.to/3JDfGDX
Soft Start USA: https://softstarthome.com/griffinair/
Griffin Air LLC is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Amazon offers a small commission on products sold through their affiliate links. Each of your purchases via our Amazon affiliation links supports our cause at no additional cost to you.
Chapters
0:00 Intro: Are we in a recession?
0:25 Repair or Replace
1:26 Interest rates
2:35 Labor Market changes
3:33 New business owners
4:56 Homeowners decisions
5:41 How I grew up and decisions
6:04 Your decisions
6:25 Housing Market
7:00 Outro
#recession #hvac #economy
Are we in a recession? Who knows. I'm not an economist I'm just a guy that can fix air conditioners. But I wanted to go real quick through a few things. Things that if we are in a recession that I have seen that could affect you and the heating and air industry in itself.
A lot of homeowners make different decisions when they are in what we would call a recession. If they you know think that prices are high or if they think that they're on some sort of bubble, something that would deal with the economy will sometimes see homeowners make different decisions. Maybe they'll repair instead of replace. they're heating and air system.
and I always think that in my career if a system can be repaired and it's The Logical decision. So if you can look at a system and you know just visually it looks like it has more life left then a lot of times it might be worth putting the extra investment into that system right? But when we're talking about, you know if you're in a recession or a down economy a lot of times homeowners will make that decision only to find that with within a year or two they're having another issue and had they known that you know if they knew that they were going to have more issues, maybe they would have made a different decision. But ultimately the reason they made that decision is because they believe that they're in some sort of down economy or a recession. So let's go through a few things that other than just repair versus replace that could affect your decision and buying a new heating and air system.
especially when you are in a recession. One thing that we're seeing right now in contrast to years past: I Remember years ago, we were in a a recession or you know, some sort of economic depression. Even then, I didn't see it quite as bad as it is now when it comes to interest rates, and this mostly affects only people that are going to finance that new heating and air system. If you know, if you don't need to finance, if you're able to pay for it outright, that's not something you need to worry about.
But one thing we'll see homeowners you know, do. Especially if the interest rates are higher and they need to finance, they'll make different decisions than they would have based on the high interest rates. Maybe they're going to do something to buy them some time. Whether it's make that repair, maybe it's you know, just plug in some space heaters if it's the winter time, or put a window unit in to get through the summer if it's getting close to the end of the season.
Well sometimes see folks make those sorts of decisions because of the high interest rates. You know, interest rates aren't just for folks that are buying homes or cars. When they're buying big purchase items for their home as well like a heating and air system, they may make a different decision than they would have if the interest rates were still good. Another thing we see in the industry when there's a down economy is the labor market itself changes. So you'll see heating and air companies do things like layoff employees. You know, if they're slow and they're they just you know, they just don't have as much business. They may lay off employees and things like that. I Can say thankfully.
uh, to date we've never had to do that at Griffin Air. I've always ran lean I've always made decisions for the best interests of my employees when it comes to if the economy were to tank or if the company were not doing quite as well, we would not have to lay employees off. But some companies don't operate that way. If they have a lot of business coming in they'll hire and if they are slow then they will lay folks off.
And I've seen companies here locally actually one in particular that it's like a roller coaster year in and year out. They're hiring and firing people every year depending on what time of the year it is. But the other interesting thing that a recession could cause is when the economy is really good, you'll see guys going out on their own. So you'll see guys that you know they would normally be working for a company and they you know things are going really well.
They've got a lot of if they do side work They've got a lot of side work, or maybe there's some other opportunity. some reason that they start their own business, they go out on their own. they become self-employed but when things get slow you'll see a lot of those guys may not make it. They may go back to a job they may you know make a different decision because things are slower than they were and you know being in a recession they have to figure out how to put food on their family's table and hang up the self-employment robe if you will.
That's like one of the scariest things for me personally would be having to ever do that I don't think I would ever do that I think I would figure something out. it's part of the reason I do this that I do things like YouTube you know, giving out secrets in our industry to homeowners and making videos on that because you know it's a little side income and it helps to where I can take care of our employees, take care of our family and make it to where I don't have to make those tough decisions that some folks have to make. when they you know things get slow, they have to decide what they're going to do to you know, create more income. and I think that also plays a role with homeowners right? So if things are slow so they might do things just to get by just to kind of get through the slow time that they normally wouldn't So I think it's really all boils down to decisions.
They make different decisions than they would have if things weren't quite so slow. But I Have seen this before where folks will just simply do without though instead of having a nice Central HVAC system and could be you know, just chugging out air conditioning and have a home that you're just running up the utility bill, keeping every room nice and comfortable. And if things get bad enough, you'll see folks either do without or you know. like I said, you know, put a window unit in one room and spend more time in that room than others. Honestly, that's how I grew up. We didn't have a very large house so I don't want to say we were like super poor. like you know, poor like you should feel sad for me. but we had to make decisions based on money a lot when I was a kid, right? and one of those decisions was Mom and Dad would put a window unit in one room and we spent more time I'm in that room then we would have otherwise.
So anyway, what are your thoughts? Are you making decisions differently? Because gas prices are high because inflation's High you know. I Don't want to make this a political video, but how much longer is this going to go? How much longer can we be in a down economy or a recession before it really starts to hurt? before it really starts to affect your decisions? I Had a lady I was talking to the other day who was saying how great the housing market still is despite all this inflation and despite all these higher prices on everything and she was telling us that the housing market is still cranking because there aren't enough houses for the people that are looking for houses out there. I Guess that's good in a way, but you know I think ultimately you have folks that they don't have the luxury of just being able to say well I need a house anyway, you know I Got to buy a house. So I'm going to spend even more money now.
Unfortunately with some folks, they have to make really tough decision. So are you in that position? Are you making a decision based on your current circumstances and affecting your decision on repairing or replacing your heating and air system? I'd love to hear about that comment down below. Hit that subscribe button. Hit that like button that always helps.
Thanks for watching. We'll see you next time.
I grew up in a Florida flat roof block house with 2 window units and as an HVAC tech now, it's crazy how good some people got it
Down economy? Our economy has grown even with interest rate rises.
Good stuff as always bro! Keep putting out the good content!
What do you think of Grand Aire versus American Standard? Service area Ottawa??
Prices are not going down! Ducane (Allied) just sent out another 10% price increase the beginning of January. Are you in Kanata ?
The average 401k dropped 36,000 dollars, when people see that they realize they wont be able to retire when they thought. Then add on the inflation and they realize they will probably drop dead working lol. My sales dropped on new equipment that they were just upgrading. Most new equipment now is for unrepairable breakdowns, exchangers and leaks. Everyone just wants it fixed and thats fine, I enjoy service work. As far as it getting better, nope its going to get a lot worse.
what about dropping of prices due to lack of demand by ac contractors?
With the high energy prices and government tax incentives you would think residential HVAC would have a several year boom.
The ducted heat pump conversions have slowed down. People are sticking with furnace replacements. If you have electric wall heaters getting a single ductless system for the main living space is worth it!! You need at least 1 comfortable area in your home, for heat and AC!!
In my area the last 2 months have been a bit slower for system replacements. We still have 0% through Wells Fargo for up to 72 months. For my area, the top North West corner of Washington, people seem to be sticking with Furnaces. You have to have heat in our area so furnace replacments are steady.
lol people will just sign up for american home shield, wait a month and a half and file a claim
I am stretching out the need for replacement until the economy and new regulations settle down. My 27-year-old carrier attic HVAC (have 2 systems) evaporator coil pan rusted out completely this summer and water is leaking and draining from the emergency drain pan. Made it through the last part of summer and I hope to do the same this coming summer. Service area Orleans??
HVAC systems are quite reliable if they were installed and serviced correctly. My last system was 28 years old when I sold the house its at and still going strong.. I kept the coils clean, and replaced the contactor every 2 to 3 years.. never added refrigerant.. cleaned blower wheel and motor every year and kept a clean filter in it,., oiled the fan motors and cleaned the drain pump… too many tech out there that dont know thier job or too lazy to do the work. selling service contracts is a great way to get and maintain customers. sell them 2 check and services a year and discount any repairs that may be needed. service is making alot more money right now than new home installs.. also home contractors grind for the lowest price possible and want you to install the system, then wait for your money., then theres the risk of theft. you have to win customers for life, thru competency, honesty, and punctuality… lots of companys run and giun in the summer , adding freon to a system they know has a leak, they get the money and haul ass, instead of scheduling with them to find and fix the leak when they get more time. I used to give the customer a checklist of everything we did. never push a new system on a customer, always give them options. if u sell them a maintenace contract, give them priority service. building trust with the customers is the hardest thing to do, but once you build it, they wont call anyone else.
ALSO when customers trust u , they ask who u would recommend for other jobs outside of your field.. so what I did was created a network of trusted companies, in different field. we all had a list of contractors for different trades printed on a sheet, that was given to a customer.. if we found out that a particular company ripped off a customer in our "network" they were removed from the list.. in this network, we offered mediation if a problem arose, but we never had to use it, because I found the contractors that were honest, reliable, and dependable. creatin a service provider network, generates a larger customer base for all involved.
Any normal thinking person always juggles costs depending on need! Only wish the government would do this!
Just read that New York will mandate heat pumps in all new homes very soon and all existing homes by 2030. Imagine a recession and its 2031, homeowner is retired, house paid for, income limited and the state/city requires them to go with heat pump which is going to cost them much more due to having to plumb for electricity where is hasn't been before and depending on the homes, some of those structures will require a new electric service box…another few thousand dollars. The average couple or person is going to be broke their remaining years to help political dreams for uninformed politicians. Existing structures should NOT have to be retrofitted…those structures got built legally, paid their fees, and taxes all along the way and should not be subjected to new laws for new homes. Not to mention, their heating/cooling bill will also go up due to the cost of New York power vs. gas/oil. From $150 a month in winter to $600 a month running an electric compressor in winter !
Just replace my old unit 29 years old but I was fortunate to get a home improvement loan and to lock it in at 9% rate but it still came down to choices of money and economy
I paid 10,000 for a new AC. I asked the company that did the job to break down the price for the unit and installation. Two companies have told me they cannot break down the price but a total cost for the job. WHY is it the AC companies do not break down the pricing for the unit and installation???? When I did my research on the unit installed Day & Night , the exact model was 1,500.00 for the unit . How is it possible that the unit was cheap but yet I paid 10,000 for the whole job. No crane needed to be use to install or any stucco work needed to be done. I am so upset, how they can just ripp-off the consumer this way. Please, explain to me why they don't brake down the price on the contract not just this company but all AC contractors charge you without any explanation of the unit price and installation. I need a second unit for my downstairs but refuse to purchase with any AC company. Maybe I should buy the unit thru Home Depot and Lowes, then have a contractor install the unit. Let me know what you think. Thank You in advance. Are you in Barrhaven ?
We need to replace our AC unit so my wife and I decided to replace both the furnace and the AC. BUT I couldn’t get the modulating Cadillac system that I wanted because of the cost. So we had to take a middle of the road set with the consideration of how long the energy savings turn around would take. We are blessed! We are still getting new units with higher seer/efficiency than we had with our old 17 year old system.
Prices are too high. People can’t afford HVAC, cars, gasoline, etc. BTW, your boss can’t give you a raise or bonus and he might be planning to lay you off. I quit my last job because I was furloughed twice and rumors were running rampant about layoffs in 2023. The layoffs were announced right after I left.
Unfortunately, the pain will continue as long as people keep voting for Marxists and election results are tainted by fraud and corruption.
Iv sign a proposal to have my 28 yr old HVAC unit replaced air handler in attic nothing wrong with it but the age is not on my side I feel I may be making a mistake by replacing it because of the economy is not good on the other side I don’t think the prices are going to go down and if I wait the price may be even more down the road any thoughts
Thanks