We can all agree it’s been an absolute rollercoaster of a year. 2021 has kept the challenge of 2020 alive with a new copper shortage, and record-setting prices that could have a lasting effect on HVAC and multiple adjacent industries. Currently sitting at around $4.75 per pound, commodity analysts predict the price of copper to continue to trend upwards. Some estimate we could see prices reach $6.00 per pound before the end of the year. This brings up some glaring concerns; how do we adjust to these price hikes tied to supply constraints? What can our industry do to keep end users satisfied, and how will this affect our bottom line? Let’s look at the solutions and explore some of the options available.
A Top-Down Approach
Starting with HVAC manufacturers, the price of copper will most likely hold the largest impact on commercial
The obvious selling points wholesalers have for contractors starts with a look at the commodity and the cost efficiency of alternatives. Unlike with copper, aluminum tubing and fins do not have the risk of oxidation. This in turn means less corrosion as the equipment ages. The HVAC industry is fortunate to have an expendable relationship with copper, unlike other facets of the building industry. Because of this, aluminum alternatives are readily available and more cost-efficient to the manufacturers. It’s the job of the wholesalers to relay this shift down to the contractors. We have an opportunity to set the course of the HVAC market away from the copper demand, hopefully leading to its return to “normalcy” in future quarters, and allowing the supply of this precious metal to stabilize.
Push and Protect
Contractors have a unique opportunity in the HVAC industry with how they market their services and products
It’s sometimes an impossible task to convince the commercial market to make this switch due to performance constraints. Copper remains the best choice in conduction and heat transfer for large commercial units. These units also require an extreme amount of demand that the residential market is not used to seeing. Take the time to inform your staff and technicians about how to communicate these points to commercial end users.
The second path has more to do with the present-day situation. We still have millions of units installed that
Now is also the best time to stock up on readily available thermostat wire. With the price hike already hitting some wholesalers, copper plated wiring isn’t safe from the shortage. We carry a wide range of gauges and lengths for any jobsite requirement at Jackson Systems. Take control of your supply situation to minimize the stress on the end user’s wallet. Wire is unfortunately one of those products that currently doesn’t have many alternatives that omit copper.
The discussion about the copper shortage isn’t necessarily complex, but it requires everyone in the industry to be on the same page. It starts with manufacturers and works its way down to the end user. Though we all hope to see the price of copper stabilize, if it doesn’t, we need to be ready with the next wave of technology to address the problem. The best business owners are always informed and ready to shift the sails with the wind of the market, and this is no exception. I have no doubt our industry can adapt and find new ways to innovate, communicate, and adjust to the challenge ahead.