New HVAC Efficiency Standards and Its Impact on Equipment Availability
Starting on January 1, 2023, the U.S. Department of Energy will raise its HVAC efficiency standards by 7%. Due to the increase, HVAC manufacturers must retool their plants to make new units that meet these standards. The pending regulatory change significantly impacts HVAC equipment availability and pricing.
What’s the Impact?
Since early summer, manufacturers have stopped building old-style units to prepare for the upcoming standard change. HVAC units are becoming increasingly scarce, with inventories steadily dwindling throughout the season. With a lead time of over 20 weeks to receive even simple package equipment, we don’t expect to receive equipment orders until at least February or March.
What are the Options?
As we wait for manufacturers to build 2023 efficient units, here are some options available to customers needing equipment installed or replaced:
- BMI Mechanical will try to find a unit that will work using available inventories. In some situations, we’re able to find close matches that can be modified in the installation.
- Customers can change the design to a ductless split system or a variable refrigeration flow split system. Since the systems are modular, multiple small units could handle larger applications. These technologies also already meet the 2023 energy efficiency standards, so there are no supply issues or lengthy lead times.
- Customers can approve package unit replacements now and receive the ordered equipment in 2023. Units will not arrive until February or March, but at least customers will have locked in the lead time and price (we expect prices for this equipment to increase significantly after January 1.).
At BMI Mechanical, we want our customers to be aware of this issue. For customers considering purchasing a new package unit, we advise them to contact us now to get ahead of the supply issues. For customers that already have a proposal from BMI for a unit installation or replacement, we advise them to check the proposal date since our proposals are only valid for 30 days.
Want to Avoid Equipment Delays?
Customers can also avoid supply issues with BMI’s proactive preventative maintenance. Our proactive preventive maintenance helps extend equipment lifetime and identify issues before they cause extensive equipment failures and unexpected damages.
Learn more about our proactive preventive maintenance today and see how our skilled technicians can increase the comfort of your building and prevent costly damages, all at a fixed cost!
If you operate with a 5% net profit, it would take $1,000,000 in additional revenue to pay for an unplannned $50,000 repair or replacement.
Thank You for the quality of service that you have given this division over the past 20 years. Any time we have called with an issue regarding our air conditioning units, you have responded very quickly and professionally. Under our maintenance agreement you have kept all of our units serviced and in excellent running condition. Your staff is professional and always available to meet our needs in a timely manner. Charlene White Production Assistance Berry Petroleum Company South Midway Sunset Asset Team division