In an ongoing video series from Motili, the company highlights PropTech, CRE, multi-family, and single-family industry news. Motili’s latest video takes a look at the major factors and influences that are currently affecting HVAC pricing at Motili and in the entire HVAC sector.
As background, Motili is an integrative, HVAC technology platform that offers products and services nationwide. Motili is part of the Daikin Company, one of the largest HVAC manufacturers in the world, with access to over 2000 contractors and 1000 distribution centers, providing scalable HVAC solutions to customers.
HVAC Installation variables
Motili’s technology platform brings HVAC solutions to commercial, multi-family, and single-family property owners. Motili supports projects from 10 units to 10s of thousands of units with its platform.
Because of Motili’s ability to support complex projects, such as HVAC installations that require street closures, additional construction equipment, or permits, these variables will contribute to overall installation costs.
Purchasing one or more HVAC units is a big decision that brings with it many varying factors that can influence the price
Installation costs – what’s driving them up?
Purchasing one or more HVAC units is a big decision that brings with it many varying factors that will influence the final price. Units can cost anywhere from the higher 10s of thousands of dollars into the million-dollar-plus price range. It’s important to know the ‘why’ behind an HVAC project to optimize purchase and installation.
One of the biggest factors influencing price is resource availability. Right now there is a major shortage within the HVAC industry (as well as many others). For example, there are ongoing microchip, motor, and semi-conductor shortages. Raw materials such as copper, steel, and even plastic are all in short supply right now. These scarcities affect the bottom line of an HVAC project.
Labor and its effect on the cost
Labor is another significant cost factor. Currently, there is a major, nationwide labor shortage in the HVAC sector and it is likely to continue for the foreseeable future. What’s interesting is as HVAC technology modernizes and advances to be more ecologically friendly and efficient; the contractors needed to repair these units must possess additional skills to be able to perform maintenance on these newer systems.
Companies are paying a premium to attract and retain contractors who are educated and experienced on these newer HVAC systems coming to market. And that is an impact on the consumer’s final cost, as well.
One final factor - Motili has in-network coverage of independent contractors and their labor availability and costs depend on what state they are located in. These nationwide discrepancies also affect HVAC costs.
Motili’s simple, one-point contract solution figures out the most optimal costs for equipment and labor"
One point contact solution
“The good news here is that to ensure that our customers are always getting the best price quote, Motili has a dedicated help desk and project management team that review contractor job quotes to ensure customers are receiving the best price/ service combination for their job,” said Matthew Sallee, VP of Sales, Multi-Dwelling and Commercial, Motili.
“Motili’s simple, one-point contract solution saves our customers the headache of trying to figure out the most optimal costs for equipment and labor.”
Turn-key HVAC management solution
The combination of Motili’s relationship with one of the world’s largest HVAC manufacturers, and the scale of most of its projects, gives Motili the ability to offer favorable pricing when compared to the competition’s in-house techs and facility managers.
Motili offers a fully turn-key HVAC management solution, a major competitive advantage. Motili’s hands-off approach provides a single point of contact for all of a customer’s HVAC management needs.