“There are two types of contractors in the future, those on cloud-based software and those out of business.”
Why is it important to consider how technology influences all industries? Well, technology is the way of the future! Have users paid close attention to how technology has transformed other industries? For example, look at how it transformed the taxi industry. Uber and Lyft gave the taxi market a run for their money, and now, not many individuals call a taxi company when they want a ride.
Transforming HVAC industry
Think about how technology transformed search engines and copy machines. Now, what happened in other industries is happening in the HVAC industry! Do users have a plan to stay in business and dominate the competition?
Let’s dive into the challenges that arise with technology transforming the HVAC industry
Let’s dive into the challenges that arise with technology transforming the HVAC industry and how Payzerware makes it easier than ever to grow the business and dominate the market share! The HVAC market is limited, and the number of additional business entrants is declining year over year. That means users are fighting for market share in their area. In 2012, they saw a 6.8% growth in HVAC companies. The estimated growth rate is 2.1%, and that trend is estimated to continue through 2024.
Dominating market share
Industry revenue is following closely with many entrants into the market. What is their plan to stick out from the competition? The general public’s adoption of technology has influenced how users interact with their customers.
There are only so many homes in a neighborhood, and they can stand out from competitors by listening to homeowners’ demands. Technology allows users to streamline communications with their customers. Homeowners want to get notified when the technician is on the way, look at proposal comparisons, sign the invoice, and pay on the spot. Adopting technology and listening to homeowners’ needs will help them dominate the market share.
Labor supply shortage
In addition to competing for market share, users are also competing for technicians
In addition to competing for market share, users are also competing for technicians. It is no secret that the labor supply shortage is an issue for businesses all across the country. Labor force participation has been dropping for two decades.
Do users have a challenging time finding technicians to work for them? Using technology can help recruit new, young talent. Skilled labor is becoming harder to find, and businesses need to do more with fewer employees! In a tight labor market, employee time is at a premium. Having the business operating efficiently is crucial to drive tremendous growth in their HVAC business.
Market share retention
Where do users stand in competition against market share? Those on software are growing five times faster than those that are not. The HVAC industry will experience fragmentation and consolidation as all markets do. A fragmented market has lower barriers to entry, increased market competition, low market share, and lower operational expenses. As the market matures, it will be beneficial to consolidate. Barriers to entry will be heightened with increased expenses, and market share and growth will become stagnant. Technology is driving consolidation and creating higher barriers to entry.
As technology changes, companies must adapt and improve their processes to grow with the market
As technology changes, companies must adapt and improve their processes to grow with the market. If they don’t, they will end up closing down or get bought out. The increased operational expenses are influenced by technology. They need to improve their marketing tactics to stand out from the competition, which is an increased expense. They also have an increased customer and market share retention.
Cloud-Based software
So precisely how long do businesses without software have before businesses on software take away their market share? Technology is influencing the industry at a rapid rate, and it is not slowing down! In fact, it is accelerating faster and faster.
Two independent studies performed by Payzer showed that 29% of contractors had adopted modern HVAC software, and 71% were not using effective HVAC software at all! The contractors on HVAC software operate five times faster than contractors not on cloud-based software. This results in the ‘Doomsday Clock.’ The 29% of HVAC businesses on software are operating five times faster than the 79% of HVAC businesses using ineffective software or no software at all! That means HVAC businesses on software are getting to more jobs, operating more efficiently, and taking customers from their competitors that are not on software, who cannot get to these additional jobs each day.
Space without technology
They hope users have insight into how technology will enhance the business
How far away is the turning point? The calculations and studies show that they are 2.5 years away from when contractors cannot meet the space without technology. The landscape changed, and the market shifted. What are users' plan to stay in business?
They hope users have insight into how technology will enhance the business, keep them in business and drive efficiency. They can do more with the same resources they already have in the same amount of time. Technology is the answer to combat the prevailing trends of the shortage of labor, workforce participation, and productivity.
They highly recommend adopting cloud-based HVAC software to stay competitive in the market. If the company is already embracing technology and dominating the market share, continue to drive and fuel the business’s growth. If users haven’t adopted technology yet, what are they waiting for?
