{ "slug": "hvac", "name": "HVAC & Refrigeration", "in_level_book": true, "scores": { "resilience": 83.4, "leverage": 81.3, "trade_ai_score": 82.3, "quadrant": "transform-and-win", "quadrant_label": "Transform & Win", "quadrant_desc": "Protected from AI and full of upside. The best place to be, press the advantage.", "resilience_rel": 100, "leverage_rel": 82 }, "subscores": { "resilience": { "physical_core": 90, "disintermediation": 78, "entry_barrier": 80, "switching_cost": 82 }, "leverage": { "coordination_drag": 80, "operating_leverage": 85, "revenue_expansion": 78, "data_amplification": 82 }, "basis": "On-site repair/install AI cannot perform; heavy service-agreement lock-in; strong recurring revenue. High coordination drag (dispatch, parts, warranty) = large AI upside. Level core vertical." }, "research": { "wages_detail": { "median_hourly_wage_usd": 28.75, "median_hourly_wage_usd_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_hourly_wage_usd_research_pass_count": 6, "median_hourly_wage_usd_confidence": "high-primary", "median_annual_wage_usd": 59810, "median_annual_wage_usd_source": "U.S. Bureau of Labor Statistics Occupational Outlook Handbook (OOH), May 2024, https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "median_annual_wage_usd_research_pass_count": 6, "median_annual_wage_usd_confidence": "high-primary", "pct25_hourly_wage_usd": 23, "pct25_hourly_wage_usd_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "pct25_hourly_wage_usd_research_pass_count": 6, "pct25_hourly_wage_usd_confidence": "high-primary", "pct75_hourly_wage_usd": 35.97, "pct75_hourly_wage_usd_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "pct75_hourly_wage_usd_research_pass_count": 6, "pct75_hourly_wage_usd_confidence": "high-primary", "pct90_hourly_wage_usd": 43.76, "pct90_hourly_wage_usd_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "pct90_hourly_wage_usd_research_pass_count": 6, "pct90_hourly_wage_usd_confidence": "high-primary", "pct10_hourly_wage_usd": 18.81, "pct10_hourly_wage_usd_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "pct10_hourly_wage_usd_research_pass_count": 6, "pct10_hourly_wage_usd_confidence": "high-primary", "wage_data_year": "2024", "median_hourly_wage_usd_source_access": "url", "median_annual_wage_usd_source_access": "url", "pct25_hourly_wage_usd_source_access": "url", "pct75_hourly_wage_usd_source_access": "url", "pct90_hourly_wage_usd_source_access": "url", "pct10_hourly_wage_usd_source_access": "url" }, "employment": { "us_employment": 425200, "us_employment_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook (2024), https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "us_employment_research_pass_count": 6, "us_employment_confidence": "high-primary", "projected_10yr_growth_pct": 8, "projected_10yr_growth_pct_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook (2024-2034), https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "projected_10yr_growth_pct_research_pass_count": 6, "projected_10yr_growth_pct_confidence": "high-primary", "annual_openings": 40100, "annual_openings_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook (2024-2034), https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "annual_openings_research_pass_count": 6, "annual_openings_confidence": "high-primary", "projected_10yr_net_change": 34500, "projected_10yr_net_change_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook (2024-2034), https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "projected_10yr_net_change_research_pass_count": 6, "projected_10yr_net_change_confidence": "high-primary", "us_employment_year": "2024", "us_employment_source_access": "url", "projected_10yr_growth_pct_source_access": "url", "annual_openings_source_access": "url", "projected_10yr_net_change_source_access": "url" }, "labor_shortage": { "unfilled_openings": 110000, "unfilled_openings_source": "Sheet Metal and Air Conditioning Contractors' National Association (SMACNA), 2025, https://www.smacna.org", "unfilled_openings_research_pass_count": 5, "unfilled_openings_confidence": "med", "vacancy_rate_pct": 3.5, "vacancy_rate_pct_source": "U.S. Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS), 2026, https://www.bls.gov/news.release/jolts.t01.htm", "vacancy_rate_pct_research_pass_count": 3, "vacancy_rate_pct_confidence": "adjudicated", "unfilled_openings_year": "2025", "shortage_note": "Associated Builders and Contractors (ABC) models an industry-wide need to attract 439,000 net new construction workers in 2025 and 499,000 in 2026, while the Plumbing-Heating-Cooling Contractors Association (PHCC) projects a need for 114,500 new workers in the plumbing-heating-cooling sector by 2028.", "shortage_note_source": "Associated Builders and Contractors (ABC), 2025, https://www.abc.org / Plumbing-Heating-Cooling Contractors Association (PHCC), 2026, https://www.phccweb.org", "vacancy_rate_pct_shared_across": 7, "vacancy_rate_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 7 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "unfilled_openings_source_access": "url", "vacancy_rate_pct_source_access": "url", "shortage_note_source_access": "url" }, "workforce_aging": { "median_worker_age": 39.9, "median_worker_age_source": "U.S. Bureau of Labor Statistics, Current Population Survey, Household Data Annual Averages, Table 11b (https://www.bls.gov/cps/cpsaat11b.htm)", "median_worker_age_research_pass_count": 6, "median_worker_age_confidence": "high-primary", "pct_over_55": 18.7, "pct_over_55_source": "U.S. Bureau of Labor Statistics, Current Population Survey, Household Data Annual Averages, Table 11b (https://www.bls.gov/cps/cpsaat11b.htm)", "pct_over_55_research_pass_count": 6, "pct_over_55_confidence": "high-primary", "median_worker_age_year": "2025", "retirement_note": "An estimated 40,100 job openings per year are projected for heating, air conditioning, and refrigeration mechanics and installers from 2024 to 2034, largely driven by the need to replace workers who exit the labor force, such as to retire.", "retirement_note_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook (https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm)", "median_worker_age_source_access": "url", "pct_over_55_source_access": "url", "retirement_note_source_access": "url" }, "training_pipeline": { "apprenticeship_enrollment": 8535, "apprenticeship_enrollment_source": "U.S. Bureau of Labor Statistics / Employment and Training Administration Office of Apprenticeship, 'Looking at apprenticeships outside the construction trades' (Career Outlook, November 2022), https://www.bls.gov/careeroutlook/2022/article/nonconstruction-apprenticeships.htm", "apprenticeship_enrollment_research_pass_count": 3, "apprenticeship_enrollment_confidence": "high", "annual_completions": 23253, "annual_completions_source": "U.S. Department of Education, National Center for Education Statistics (NCES) IPEDS Data via DataUSA, 'HVAC & Refrigeration Maintenance (CIP 47.0201) Total Degrees & Certificates Awarded', 2024, https://datausa.io/profile/cip/hvac-refrigeration-maintenance", "annual_completions_research_pass_count": 3, "annual_completions_confidence": "med", "apprenticeship_enrollment_year": "2022", "pipeline_gap_note": "The U.S. Bureau of Labor Statistics projects 40,100 average annual job openings for Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) between 2024 and 2034, primarily driven by worker retirements and labor force exits, resulting in a substantial workforce pipeline deficit compared to new apprenticeship completers and trade program entrants.", "pipeline_gap_note_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, 'Heating, Air Conditioning, and Refrigeration Mechanics and Installers' (2024-2034 Employment Projections, August 2025), https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "apprenticeship_enrollment_source_access": "url", "annual_completions_source_access": "url", "pipeline_gap_note_source_access": "url" }, "immigration_reliance": { "pct_foreign_born": 17.4, "pct_foreign_born_source": "U.S. Census Bureau, American Community Survey 5-Year Estimates (https://www.census.gov/programs-surveys/acs)", "pct_foreign_born_research_pass_count": 5, "pct_foreign_born_confidence": "high", "pct_foreign_born_year": "2023", "visa_dependence_note": "In contrast to labor-intensive construction trades (such as drywall, roofing, and masonry where foreign-born representation exceeds 50%), technical skilled trades like HVAC technicians attract fewer immigrant workers due to requirements for longer formal training, apprenticeship, and state/local professional licensing. Additionally, legal temporary labor recruitment for non-agricultural trades is constrained by federal H-2B visa statutory caps (66,000 annually nationwide across all non-agricultural industries).", "visa_dependence_note_source": "National Association of Home Builders (NAHB) Eye on Housing (https://eyeonhousing.org)", "pct_foreign_born_source_access": "url", "visa_dependence_note_source_access": "url" }, "unionization": { "union_membership_pct": 15.4, "union_membership_pct_source": "Union Membership and Coverage Database (unionstats.com) / Current Population Survey (CPS), https://www.unionstats.com", "union_membership_pct_research_pass_count": 5, "union_membership_pct_confidence": "high", "union_membership_year": "2021", "prevailing_wage_note": "HVAC system installation, alteration, repair, and testing, adjusting, and balancing (TAB) work performed on federal or federally assisted public construction projects are covered under the Davis-Bacon and Related Acts (DBRA), requiring contractors to pay locally prevailing wages and fringe benefits as determined by the U.S. Department of Labor (including All Agency Memorandum No. 247).", "prevailing_wage_note_source": "SMART Union / U.S. Department of Labor Wage and Hour Division (2024), https://smart-union.org", "union_membership_pct_source_access": "url", "prevailing_wage_note_source_access": "url" }, "licensing": { "states_requiring_license": 37, "states_requiring_license_source": "Air Conditioning Contractors of America (ACCA) State Licensing Survey (https://www.acca.org/members/industry/state-licensing)", "states_requiring_license_research_pass_count": 5, "states_requiring_license_confidence": "high", "states_requiring_license_year": "2024", "bonding_note": "State contractor licensing boards typically require HVAC contractors to maintain commercial general liability insurance (commonly ranging from $300,000 to $500,000) and obtain surety bonds ranging from $2,500 to $25,000 depending on the license class and state (e.g., $3,000 in New Jersey, $10,000 in Alaska and South Carolina, $20,000 in Alabama, and $25,000 in California). Workers' compensation coverage is also required for businesses employing staff.", "bonding_note_source": "Next Insurance HVAC License Requirements Guide (2024)", "reciprocity_note": "HVAC license reciprocity is highly fragmented across the United States. No single federal license exists, but certain states enter into bilateral or regional reciprocity agreements (for example, between Alabama, Louisiana, Mississippi, Tennessee, and South Carolina). Furthermore, the National Association of State Contractors Licensing Agencies (NASCLA) accredited exams are accepted in 18 states to fulfill contractor exam requirements for participating licensing boards.", "reciprocity_note_source": "National Association of State Contractors Licensing Agencies (NASCLA) Accredited Examination Guide (2025, https://www.nasclaprep.com)", "states_requiring_license_source_access": "url", "bonding_note_source_access": "citation-text-only", "reciprocity_note_source_access": "url" }, "market_size": { "market_size_usd": 159400000000, "market_size_usd_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US, 2026, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "market_size_usd_research_pass_count": 4, "market_size_usd_confidence": "med", "cagr_pct": 6.9, "cagr_pct_derived": true, "cagr_pct_source": "Trade Economy Index research synthesis: median of 1 cited research input: IBISWorld - Heating & Air-Conditioning Contractors in the US (2026), https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "cagr_pct_research_pass_count": 1, "cagr_pct_confidence": "med", "market_size_usd_year": "2026", "cagr_forecast_window": "2026-2033", "cagr_forecast_window_source": "Trade Economy Index research synthesis: median of 1 cited research input: IBISWorld - Heating & Air-Conditioning Contractors in the US (2026), https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "market_size_usd_source_access": "url", "cagr_pct_source_access": "url", "cagr_forecast_window_source_access": "url" }, "firm_counts": { "num_establishments": 109601, "num_establishments_source": "U.S. Census Bureau, Statistics of U.S. Businesses (SUSB), https://www.census.gov/programs-surveys/susb.html", "num_establishments_research_pass_count": 6, "num_establishments_confidence": "high-primary", "num_firms": 107004, "num_firms_source": "U.S. Census Bureau, Statistics of U.S. Businesses (SUSB), https://www.census.gov/programs-surveys/susb.html", "num_firms_research_pass_count": 6, "num_firms_confidence": "high-primary", "avg_employees_per_firm": 10.9985, "avg_employees_per_firm_derived": true, "avg_employees_per_firm_source": "Trade Economy Index research synthesis: median of 2 cited research inputs: U.S. Census Bureau, Statistics of U.S. Businesses (SUSB), 2022, https://www.census.gov/data/tables/2022/econ/susb/2022-susb-annual.html | Calculated from U.S. Census Bureau, Statistics of U.S. Businesses (SUSB) employment and firm counts (https://www.census.gov/programs-surveys/susb.html)", "avg_employees_per_firm_research_pass_count": 6, "avg_employees_per_firm_confidence": "high-primary", "num_establishments_year": "2022", "num_establishments_source_access": "url", "num_firms_source_access": "url", "avg_employees_per_firm_source_access": "url" }, "firm_size_dist": { "size_dist_year": "2017" }, "fragmentation": { "top4_firm_share_pct": 4.1, "top4_firm_share_pct_source": "U.S. Small Business Administration, 'Small Business Size Standards: Agriculture, Forestry, Fishing and Hunting; Mining, Quarrying, and Oil and Gas Extraction; Utilities; Construction', Proposed Rule, 85 FR 62239 (October 2, 2020), Table 4 'Size Standards Supported by Each Factor for Each Industry (Receipts)' at 85 FR 62248, column (6) headed 'Four-firm ratio (%)', row NAICS 238220 Plumbing, Heating, and Air-Conditioning Contractors. Derived by SBA from the U.S. Census Bureau special tabulation of the 2012 Economic Census. https://www.federalregister.gov/documents/2020/10/02/2020-21589/small-business-size-standards-agriculture-forestry-fishing-and-hunting-mining-quarrying-and-oil", "top4_firm_share_pct_research_pass_count": 1, "top4_firm_share_pct_confidence": "high-primary", "mom_and_pop_share_note": "According to IBISWorld and U.S. Census Bureau SUSB data for NAICS 238220, 59.1% of industry establishments employ 1 to 4 employees, and 88.85% of establishments (97,385 out of 109,601) employ fewer than 20 employees.", "mom_and_pop_share_note_source": "IBISWorld Report 23822a (https://www.ibisworld.com) and U.S. Census Bureau Statistics of U.S. Businesses / CT Acquisitions 2022/2026 Analysis (https://ctacquisitions.com)", "concentration_year": "2022", "top4_firm_share_pct_source_access": "url", "mom_and_pop_share_note_source_access": "url" }, "franchise_pen": { "franchise_penetration_pct": 0.69, "franchise_penetration_pct_source": "IBISWorld, 'HVAC Service Franchises in the US' (OD5583) & 'Heating & Air-Conditioning Contractors in the US' (23822a), 2026, https://www.ibisworld.com/united-states/market-research-reports", "franchise_penetration_pct_research_pass_count": 4, "franchise_penetration_pct_confidence": "med", "franchise_penetration_year": "2026", "franchise_penetration_pct_source_access": "url" }, "formation_rate": { "annual_new_firm_formation": 90679, "annual_new_firm_formation_source": "U.S. Census Bureau, Business Dynamics Statistics (BDS) - Sector 23 Construction, https://www.census.gov/programs-surveys/bds.html", "annual_new_firm_formation_research_pass_count": 5, "annual_new_firm_formation_confidence": "low", "annual_closure_rate_pct": 11.1, "annual_closure_rate_pct_source": "U.S. Census Bureau, Business Dynamics Statistics (BDS) - 2023 Sector 23 Establishment Exit Rate, https://www.census.gov/programs-surveys/bds.html", "annual_closure_rate_pct_research_pass_count": 5, "annual_closure_rate_pct_confidence": "low", "survival_5yr_pct": 49, "survival_5yr_pct_source": "U.S. Bureau of Labor Statistics, Business Employment Dynamics (BED), NAICS 2382 Building Equipment Contractors (https://www.bls.gov/bdm/)", "survival_5yr_pct_research_pass_count": 5, "survival_5yr_pct_confidence": "low", "annual_new_firm_formation_year": "2023", "annual_new_firm_formation_source_access": "url", "annual_closure_rate_pct_source_access": "url", "survival_5yr_pct_source_access": "url" }, "margins": { "gross_margin_pct": 21.01, "gross_margin_pct_source": "Comfort Systems USA, Inc. Form 10-K (FY 2024), https://www.sec.gov/edgar/browse/?CIK=0001035983", "gross_margin_pct_research_pass_count": 6, "gross_margin_pct_confidence": "high", "operating_margin_pct": 8.24, "operating_margin_pct_derived": true, "operating_margin_pct_source": "Trade Economy Index research synthesis: median of 3 cited research inputs: Comfort Systems USA, Inc. 2023 Form 10-K (filed Feb 22, 2024), https://www.sec.gov/ix?doc=/Archives/edgar/data/0001035985/000119312524042859/d512411d10k.htm (Cross-checked against EMCOR Group, Inc. 2023 Form 10-K operating margin of 7.0% https://www.sec.gov) | CFMA 2025 Construction Financial Benchmarker Executive Summary (2024 data, https://www.cfma.org); cross-checked with IBISWorld Industry Report 23822a: Heating & Air-Conditioning Contractors in the US (2024 operating profit margin 5.4%, https://www.ibisworld.com) and Comfort Systems USA, Inc. SEC Form 10-K (2023 operating margin 7.0%, https://www.sec.gov) | Construction Financial Management Association (CFMA) Construction Industry Annual Financial Survey / Benchmarker, https://cfma.org/benchmarker", "operating_margin_pct_research_pass_count": 6, "operating_margin_pct_confidence": "med", "net_margin_pct": 7.43, "net_margin_pct_source": "Comfort Systems USA, Inc. Form 10-K (FY 2024), https://www.sec.gov/edgar/browse/?CIK=0001035983", "net_margin_pct_research_pass_count": 6, "net_margin_pct_confidence": "med", "margin_year": "2024", "gross_margin_pct_source_access": "url", "operating_margin_pct_source_access": "url", "net_margin_pct_source_access": "url" }, "cost_structure": { "labor_pct_of_revenue": 29.4, "labor_pct_of_revenue_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US (Report 23822), 2019, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "labor_pct_of_revenue_research_pass_count": 5, "labor_pct_of_revenue_confidence": "low", "materials_pct_of_revenue": 41.7, "materials_pct_of_revenue_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US (Report 23822), 2019, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "materials_pct_of_revenue_research_pass_count": 5, "materials_pct_of_revenue_confidence": "low", "sga_overhead_pct": 10.4, "sga_overhead_pct_source": "Comfort Systems USA, Inc. Form 10-K for Fiscal Year Ended December 31, 2024, 2024, https://www.sec.gov", "sga_overhead_pct_research_pass_count": 5, "sga_overhead_pct_confidence": "med", "cost_structure_year": "2019 - 2024", "labor_pct_of_revenue_shared_across": 5, "labor_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 5 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "materials_pct_of_revenue_shared_across": 6, "materials_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 6 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "labor_pct_of_revenue_source_access": "url", "materials_pct_of_revenue_source_access": "url", "sga_overhead_pct_source_access": "url" }, "productivity": { "revenue_per_employee_usd": 252898, "revenue_per_employee_usd_source": "U.S. Census Bureau, 2022 Economic Census (NAICS 238220: Plumbing, Heating, and Air-Conditioning Contractors), https://www.census.gov/programs-surveys/economic-census.html", "revenue_per_employee_usd_research_pass_count": 5, "revenue_per_employee_usd_confidence": "high", "gross_profit_per_labor_hour_usd": 97.5, "gross_profit_per_labor_hour_usd_source": "Trade Economy Index estimate, triangulated across contractor productivity studies and Level CFO gross-profit-per-hour framing (https://levelcfo.com/guides/gross-profit-per-hour/); Level does not publish a trade-split HVAC GP/hour figure", "gross_profit_per_labor_hour_usd_research_pass_count": 1, "gross_profit_per_labor_hour_usd_confidence": "low", "billable_utilization_pct": 65, "billable_utilization_pct_source": "Air Conditioning Contractors of America (ACCA) / Aquant 2025 Field Service Benchmark Report, 2025, https://www.acca.org", "billable_utilization_pct_research_pass_count": 3, "billable_utilization_pct_confidence": "low", "productivity_year": "2024-2026", "billable_utilization_pct_shared_across": 7, "billable_utilization_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 7 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "revenue_per_employee_usd_source_access": "url", "gross_profit_per_labor_hour_usd_source_access": "url", "billable_utilization_pct_source_access": "url" }, "seasonality_econ": { "peak_period_note": "HVAC equipment and contracting demand is highly seasonal, with peak revenue generated during the second and third calendar quarters (spring and summer) due to elevated air conditioning usage and warmer weather construction activity, while the first quarter is historically the lowest revenue period.", "peak_period_note_source": "Comfort Systems USA, Inc., Form 10-K for the Fiscal Year Ended December 31, 2024 (filed February 20, 2025), https://www.sec.gov", "cyclicality_note": "HVAC contracting is subject to weather patterns and macroeconomic construction cycles; during recessionary periods, capital goods and building materials companies face average peak-to-trough revenue declines of approximately 8% to 18% driven by contractions in housing starts, nonresidential construction, and deferred discretionary upgrades.", "cyclicality_note_source": "S&P Global Ratings, 'How Recession Risk Could Affect U.S. HVAC Manufacturers' (November 29, 2023), https://www.spglobal.com", "peak_period_note_source_access": "url", "cyclicality_note_source_access": "url" }, "cash_cycle_detail": { "dso_days": 69.37, "dso_days_source": "Limbach Holdings, Inc. Form 10-K (2024), https://www.sec.gov", "dso_days_research_pass_count": 2, "dso_days_confidence": "low", "dpo_days": 33, "dpo_days_source": "EMCOR Group, Inc. Form 10-K / GuruFocus Financial Summary, 2024, https://www.gurufocus.com/stock/EME/summary", "dpo_days_research_pass_count": 3, "dpo_days_confidence": "med", "cash_conversion_cycle_days": 48.36, "cash_conversion_cycle_days_source": "Comfort Systems USA, Inc. Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2025 (filed February 20, 2026), https://www.sec.gov", "cash_conversion_cycle_days_research_pass_count": 2, "cash_conversion_cycle_days_confidence": "adjudicated", "cash_cycle_year": "2025", "dpo_days_shared_across": 8, "dpo_days_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 8 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "dso_days_source_access": "url", "dpo_days_source_access": "url", "cash_conversion_cycle_days_source_access": "url" }, "retainage_liens": { "payment_dispute_pct": 23, "payment_dispute_pct_source": "Construction Financial Management Association (CFMA), CFMA Benchmarking Survey, 2025, https://cfma.org", "payment_dispute_pct_research_pass_count": 1, "payment_dispute_pct_confidence": "low", "retainage_year": "2023", "payment_dispute_pct_source_access": "url" }, "bad_debt": { "bad_debt_write_off_pct": 0.1, "bad_debt_write_off_pct_source": "Comfort Systems USA, Inc., Form 10-K for the Fiscal Year Ended December 31, 2024, https://www.sec.gov/ix?doc=/Archives/edgar/data/0001035983/000103598325000007/fix-20241231.htm", "bad_debt_write_off_pct_research_pass_count": 6, "bad_debt_write_off_pct_confidence": "med", "collection_rate_pct": 85.1, "collection_rate_pct_source": "Level CFO, The State of Contractor Finance (CFMA and SEC benchmark analysis), 2024, https://levelcfo.com", "collection_rate_pct_research_pass_count": 5, "collection_rate_pct_confidence": "high-primary", "bad_debt_year": "2024", "bad_debt_write_off_pct_shared_across": 5, "bad_debt_write_off_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 5 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "collection_rate_pct_shared_across": 23, "collection_rate_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 23 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "bad_debt_write_off_pct_source_access": "url", "collection_rate_pct_source_access": "url" }, "ai_task_breakdown": { "pct_physical_onsite_work": 72.2, "pct_physical_onsite_work_source": "Accenture Research and Atlanta Regional Commission (2020), 'Automation Potential by Occupation: SOC 49-9021 Heating, Air Conditioning, and Refrigeration Mechanics and Installers', https://atlantaregional.org", "pct_physical_onsite_work_research_pass_count": 5, "pct_physical_onsite_work_confidence": "med", "pct_cognitive_backoffice_work": 27.8, "pct_cognitive_backoffice_work_source": "Accenture Research and Atlanta Regional Commission (2020), 'Automation Potential by Occupation: SOC 49-9021 Heating, Air Conditioning, and Refrigeration Mechanics and Installers', https://atlantaregional.org", "pct_cognitive_backoffice_work_research_pass_count": 5, "pct_cognitive_backoffice_work_confidence": "med", "task_breakdown_note": "HVAC/R work time is divided between hands-on physical on-site labor (installing, brazing, piping, connecting electrical components, and replacing defective mechanical parts) and cognitive/coordination tasks (testing electrical circuits, interpreting blueprints/schematics, running diagnostic software, conferring with customers, calculating energy loads, scheduling, and logging work orders).", "task_breakdown_note_source": "O*NET OnLine - 49-9021.00 - Heating, Air Conditioning, and Refrigeration Mechanics and Installers (2026), https://www.onetonline.org/link/summary/49-9021.00", "ai_resistant_work": "Physical on-site trade work remains highly resistant to AI and automation due to its complex tactile requirements, non-standardized working environments, and custom physical building constraints. Core AI-resistant tasks include: physical equipment installation and system retrofits (mounting outdoor air-handler units, running copper refrigerant lines, fitting sheet metal ductwork, and line-brazing/soldering); emergency hands-on troubleshooting and mechanical repairs; manual diagnostics in tight or hazardous spaces (attics, crawlspaces, and commercial rooftops); and regulated physical operations such as EPA Section 608-compliant refrigerant recovery, pressure leak testing, and vacuum evacuation. These tasks demand physical spatial reasoning, manual dexterity, adaptive problem-solving, and specialized physical trade skills that software algorithms cannot execute.", "ai_resistant_work_source": "Air Conditioning Contractors of America (ACCA), 2025, https://www.acca.org/ai-implementation-moves-from-experimental-to-operational-in-hvacr-industry | ACHR NEWS / Podium & UpSmith Case Study, 2026, https://www.achrnews.com/articles/154406-how-contractors-are-navigating-the-ai-landscape", "ai_resistant_work_confidence": "low", "automatable_work": "Back-office administration, customer coordination, estimating, and scheduling in HVAC & Refrigeration are highly automatable through AI and Field Service Management (FSM) platforms. Key automatable functions include: (1) Customer Call Handling & Scheduling: 24/7 AI voice and chat agents that answer customer calls, handle emergency routing, and dynamically book appointments into CRMs; (2) Dispatching & Route Optimization: automated scheduling based on technician location, traffic, skill levels, and job priority; (3) Estimating & Follow-ups: AI-driven bid/quote generation and automated sales follow-up workflows for unsold estimates; (4) Compliance & Recordkeeping: automated EPA refrigerant tracking, invoice processing, and recordkeeping (saving technicians manual paperwork); and (5) Real-Time Field Knowledge: AI knowledge-base assistants providing instant access to equipment manuals, error codes, and historical job logs.", "automatable_work_source": "Air Conditioning Contractors of America (ACCA), 2025, https://www.acca.org/ai-implementation-moves-from-experimental-to-operational-in-hvacr-industry | ACHR NEWS / Podium & UpSmith Case Study, 2026, https://www.achrnews.com/articles/154406-how-contractors-are-navigating-the-ai-landscape", "automatable_work_confidence": "low", "pct_physical_onsite_work_source_access": "url", "pct_cognitive_backoffice_work_source_access": "url", "task_breakdown_note_source_access": "url", "ai_resistant_work_source_access": "url", "automatable_work_source_access": "url" }, "automation_physical": { "sources": [ "NADCA (National Air Duct Cleaners Association) (2024)", "Eddyfi Technologies (2025)", "International Federation of Robotics (IFR) (2024) - https://ifr.org/news/cobot-welding-case-study", "ACHR NEWS (2026) - https://www.achrnews.com/articles/154282-how-vulnerable-is-the-hvac-industry-to-ai", "McKinsey & Company (2025) - https://www.mckinsey.com/capabilities/mgi/our-insights/agents-robots-and-us-skill-partnerships-in-the-age-of-ai", "Brookings Institution (2024)" ] }, "fsm_software": { "fsm_adoption_pct": 64, "fsm_adoption_pct_source": "Business Research Insights, 2026, https://www.businessresearchinsights.com/market-reports/hvac-service-management-software-market-109015", "fsm_adoption_pct_research_pass_count": 3, "fsm_adoption_pct_confidence": "med", "dominant_fsm_software": "ServiceTitan", "dominant_fsm_software_source": "Business Research Insights, 2026, https://www.businessresearchinsights.com/market-reports/hvac-service-management-software-market-112702", "fsm_adoption_year": "2025", "fsm_adoption_pct_source_access": "url", "dominant_fsm_software_source_access": "url" }, "accounting_tech": { "common_accounting_software": "QuickBooks, Sage (including Sage 100 Contractor, Sage 300 CRE, and Sage Intacct), and Viewpoint are the dominant accounting systems used by HVAC and specialty trade contractors. QuickBooks is the most widely adopted platform among small-to-midsize trade contractors (holding a 62.23% share of the small-business accounting market, with construction as its top vertical at 17.22% of users), while Sage is the leading accounting/ERP system for mid-market and enterprise specialty contractors (cited by 21.3% of surveyed contractors).", "common_accounting_software_source": "JBKnowledge 10th Annual Construction Technology Report (2021), https://jbknowledge.com/report; Business Dasher / Enlyft Accounting Market Share Report (2024), https://businessdasher.com", "integration_gap_note": "A major field-to-accounting integration gap exists across trade contractors. JBKnowledge documents that 51% of contractors manually transfer data between software applications due to a lack of integration, and 30% of firms operate with no software integration at all. When field operations apps fail to connect with accounting software, 49% to 51.8% of contractors rely on manual re-entry and 44% use spreadsheets to transfer field data into office accounting systems.", "integration_gap_note_source": "JBKnowledge 10th Annual Construction Technology Report (2021), https://jbknowledge.com/report", "common_accounting_software_source_access": "url", "integration_gap_note_source_access": "url" }, "ai_adoption": { "ai_adoption_year": "2026", "adoption_examples": "Documented industry research and contractor case studies reflect growing AI adoption: (1) ServiceTitan's 2026 State of AI in the Trades study (surveying over 1,000 contractors) found that while 12% have fully embedded AI into daily operations and 34% are actively experimenting, 62% of AI users report measurable productivity gains saving 3+ hours per week; (2) A 2026 survey of 600+ commercial HVAC contractors showed 43% use AI for jobsite search and chat assistance, 40% for automated compliance tracking, and 38% for recordkeeping, with apprentices 23% more likely to rely on AI for estimating than senior technicians; (3) At the ACCA 2025 conference, contractors showcased platforms like RILLA (voice AI analyzing technician customer interactions for automated sales coaching) and UpSmith/Podium integrated at Virginia contractor Leonard Splaine Co., which automated estimate follow-ups and increased closed sales on unsold estimates by 25%.", "adoption_examples_source": "Air Conditioning Contractors of America (ACCA), 2025, https://www.acca.org/ai-implementation-moves-from-experimental-to-operational-in-hvacr-industry | ACHR NEWS / Podium & UpSmith Case Study, 2026, https://www.achrnews.com/articles/154406-how-contractors-are-navigating-the-ai-landscape", "adoption_examples_confidence": "low", "adoption_examples_source_access": "url" }, "leadgen_platforms": { "marketplace_penetration_pct": 1.5, "marketplace_penetration_pct_source": "Angi Inc., Q1 2026 Shareholder Letter & Earnings Call (2026), https://ir.angi.com/quarterly-earnings", "marketplace_penetration_pct_research_pass_count": 4, "marketplace_penetration_pct_confidence": "low", "platform_take_rate_pct": 10, "platform_take_rate_pct_source": "Angi Inc., Q1 2026 Shareholder Letter & Earnings Call (2026), https://ir.angi.com/quarterly-earnings", "platform_take_rate_pct_research_pass_count": 5, "platform_take_rate_pct_confidence": "med", "platforms_note": "Lead-generation platforms for HVAC and trade contractors (including Angi, HomeAdvisor, and Thumbtack) monetize primarily through pay-per-lead and subscription models. Shared HVAC leads range from $15 to $40 for service calls and $30 to $80 for installations on Angi/HomeAdvisor, and $20 to $80 on Thumbtack, compared to $45 to $85 per lead on Google Local Services Ads. Because shared leads are dispatched to 3-5 competing contractors, conversion rates range between 15% and 20%, bringing the true acquisition cost per booked HVAC job to $200-$600+.", "platforms_note_source": "PipelineOn Contractor Marketing Benchmark Study (2026), https://pipelineon.com; Auto-Respond HVAC Lead Cost Benchmark (2026), https://auto-respond.com", "marketplace_penetration_pct_shared_across": 11, "marketplace_penetration_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 11 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "platform_take_rate_pct_shared_across": 13, "platform_take_rate_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 13 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "marketplace_penetration_pct_source_access": "url", "platform_take_rate_pct_source_access": "url", "platforms_note_source_access": "url" }, "acquisition_mix": { "pct_referral": 67, "pct_referral_source": "The ACHR NEWS / BNP Media Clear Seas Research Survey (2024) - https://www.achrnews.com/articles/155118-survey-shows-how-homeowners-choose-their-hvac-contractor", "pct_referral_research_pass_count": 1, "pct_referral_confidence": "low", "pct_repeat": 73, "pct_repeat_source": "The ACHR NEWS / BNP Media Clear Seas Research Survey (2024) - https://www.achrnews.com/articles/155118-survey-shows-how-homeowners-choose-their-hvac-contractor", "pct_repeat_research_pass_count": 1, "pct_repeat_confidence": "low", "acquisition_year": "2025", "pct_referral_source_access": "url", "pct_repeat_source_access": "url" }, "insurance_warranty": { "home_warranty_penetration_pct": 6, "home_warranty_penetration_pct_source": "Frontdoor, Inc., Form 10-K for the Fiscal Year Ended December 31, 2024 (2025), https://www.sec.gov/edgar/browse/?CIK=0001727263", "home_warranty_penetration_pct_research_pass_count": 5, "home_warranty_penetration_pct_confidence": "med", "intermediation_note": "Home warranty providers intermediate the contractor-customer relationship by controlling customer lead distribution, dispatching claims directly to a pre-qualified contractor network (which completes approximately 84% of Frontdoor's service requests), establishing capped service rates, and controlling repair-versus-replacement coverage decisions, making the warranty platform the primary interface for homeowners rather than the independent HVAC contractor.", "intermediation_note_source": "Frontdoor, Inc., Form 10-K for the Fiscal Year Ended December 31, 2025 (2026), https://www.sec.gov/edgar/browse/?CIK=0001727263; The ACHR NEWS, 'Growing Through Home Warranty and Insurance Work' (2020), https://www.achrnews.com/articles/142907-growing-through-home-warranty-and-insurance-work", "home_warranty_penetration_pct_shared_across": 6, "home_warranty_penetration_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 6 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "home_warranty_penetration_pct_source_access": "url", "intermediation_note_source_access": "url" }, "recurring_mix": { "recurring_revenue_pct": 18, "recurring_revenue_pct_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US, 2025 (via Sequoia GEO: )", "recurring_revenue_pct_research_pass_count": 5, "recurring_revenue_pct_confidence": "adjudicated", "service_agreement_attach_pct": 25, "service_agreement_attach_pct_source": "Air Conditioning Contractors of America (ACCA, 2025), https://www.acca.org", "service_agreement_attach_pct_research_pass_count": 3, "service_agreement_attach_pct_confidence": "med", "recurring_note": "Recurring service agreements capture 55% of overall HVAC service industry revenue, and contractors maintaining 40%+ recurring maintenance revenue command premium transaction multiples of 6x to 10x EBITDA compared to 2x to 4x for demand-only shops.", "recurring_note_source": "CT Acquisitions Industry Analysis (2026), URL:", "recurring_revenue_pct_source_access": "citation-text-only", "service_agreement_attach_pct_source_access": "url", "recurring_note_source_access": "citation-text-only" }, "contract_terms": { "typical_contract_length_months": 12, "typical_contract_length_months_source": "Comfort Systems USA, Inc. Form 10-K (2025), https://www.sec.gov", "typical_contract_length_months_research_pass_count": 5, "typical_contract_length_months_confidence": "high", "renewal_rate_pct": 83, "renewal_rate_pct_source": "ACHR News (2023), https://www.achrnews.com/articles/153322-the-power-of-maintenance-agreements", "renewal_rate_pct_research_pass_count": 5, "renewal_rate_pct_confidence": "high", "stickiness_note": "Ongoing maintenance and service agreements establish direct-to-owner relationships that lock in repeat business, smooth out seasonal cash flow fluctuations, and generate predictable downstream repair and replacement opportunities.", "stickiness_note_source": "ACHR News (2023), https://www.achrnews.com/articles/153322-the-power-of-maintenance-agreements", "typical_contract_length_months_shared_across": 8, "typical_contract_length_months_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 8 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "typical_contract_length_months_source_access": "url", "renewal_rate_pct_source_access": "url", "stickiness_note_source_access": "url" }, "cross_sell": { "avg_services_per_customer": 0.65, "avg_services_per_customer_source": "Gray, Gray & Gray 33rd Annual Energy Industry Survey (2024) https://oilandenergyonline.com; cross-checked with Angus Energy Industry Research (2024) https://www.angusenergy.com", "avg_services_per_customer_research_pass_count": 3, "avg_services_per_customer_confidence": "high", "cross_sell_note": "Expanding into adjacent trades (combining HVAC, plumbing, and electrical) allows service providers to increase customer wallet share and reduce customer acquisition costs. Multi-trade platform operations command a 15-20% valuation multiple premium (trading at 6.5x-7.0x+ EBITDA) compared to single-trade operators.", "cross_sell_note_source": "Western Companies HVAC & Plumbing Services M&A Report (2026) https://western-companies.com; cross-checked with CT Acquisitions Home Services M&A Benchmark Report (2026) https://ctacquisitions.com", "avg_services_per_customer_source_access": "url", "cross_sell_note_source_access": "url" }, "capital_intensity": { "startup_cost_usd": 192758.5, "startup_cost_usd_source": "Aire Serv SPV LLC 2025 Franchise Disclosure Document (Item 7 Estimated Initial Investment Range Midpoint of $113,808.50 to $271,708.50), 2025, https://www.neighborly.com/aire-serv", "startup_cost_usd_research_pass_count": 5, "startup_cost_usd_confidence": "med", "capex_pct_of_revenue": 0.9, "capex_pct_of_revenue_source": "IBISWorld Industry Report 23822a: Heating & Air-Conditioning Contractors in the US (Capital Investment / Depreciation as % of Revenue), 2024, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "capex_pct_of_revenue_research_pass_count": 5, "capex_pct_of_revenue_confidence": "high", "equipment_note": "HVAC contractors exhibit low overall capital intensity. Capital expenses are predominantly tied to purchasing or leasing service vehicles/trucks, inventory storage facilities, and basic diagnostic hand tools. Little to no heavy equipment is purchased permanently, as specialized or heavy equipment is typically rented on a job-by-job basis.", "equipment_note_source": "IBISWorld Industry Report 23822a: Heating & Air-Conditioning Contractors in the US, 2024, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "startup_cost_usd_source_access": "url", "capex_pct_of_revenue_source_access": "url", "equipment_note_source_access": "url" }, "regulatory_burden": { "permit_burden_note": "HVAC and refrigeration contractors face multi-layered compliance requirements spanning federal, model code, and local jurisdictions. Under EPA Clean Air Act Section 608 regulations (40 CFR Part 82, Subpart F), any technician maintaining, servicing, repairing, or disposing of equipment that could release regulated refrigerants must hold an EPA Section 608 certification (Types I, II, III, or Universal), with noncompliance subject to federal civil penalties up to $59,114 per incident per day. At the local level, mechanical equipment installations and replacements require building permits and inspections to enforce model codes like the International Code Council's (ICC) International Mechanical Code (IMC) and International Energy Conservation Code (IECC), which frequently mandate ACCA Manual J load calculation documentation for final permit sign-off.", "permit_burden_note_source": "U.S. Environmental Protection Agency (EPA) & International Code Council (ICC), 2026, https://www.epa.gov/section608/section-608-technician-certification", "compliance_cost_note": "Compliance costs for HVAC/R operators are driven by federal equipment transition and leak management rules under the American Innovation and Manufacturing (AIM) Act. In May 2026, the EPA finalized a Technology Transitions Reconsideration Rule that extended installation deadlines and adjusted interim GWP limits for sectors like supermarket refrigeration and air conditioning, projecting $976 million in engineering cost relief to prevent price inflation. However, under the EPA's Emissions Reduction and Reclamation (ER&R) program (finalized under 40 CFR Part 84), operators face direct compliance costs starting in 2026 for automatic leak detection (ALD) installations on systems containing 1,500+ lbs of refrigerant and mandatory leak repairs for systems containing 15+ lbs of regulated refrigerants exceeding statutory annual leak rate thresholds (10% to 30% depending on equipment category).", "compliance_cost_note_source": "U.S. Environmental Protection Agency (EPA), 2026, https://www.epa.gov/climate-hfcs-reduction/technology-transitions", "regulatory_tailwind_note": "Regulatory mandates and efficiency standards serve as major demand drivers accelerating equipment replacements and technology upgrades across the HVAC/R sector. Under the Department of Energy's (DOE) Appliance and Equipment Standards Program (10 CFR Part 430), updated SEER2, EER2, and HSPF2 efficiency standards utilizing M1 pressure-testing procedures increased minimum efficiency floors by 8-10%, requiring new residential and light commercial equipment to meet strict regional performance criteria. Simultaneously, the EPA AIM Act's mandated phasedown of high-GWP hydrofluorocarbon (HFC) refrigerants (targeting an 85% reduction by 2036) and sector-based Technology Transitions rules restrict legacy refrigerants like R-410A, driving industry-wide equipment replacement cycles toward next-generation low-GWP systems (such as A2L refrigerants) and high-efficiency heat pumps.", "regulatory_tailwind_note_source": "U.S. Department of Energy (DOE) & U.S. Environmental Protection Agency (EPA), 2026, https://www.energy.gov/eere/buildings/appliance-and-equipment-standards-program", "permit_burden_note_source_access": "url", "compliance_cost_note_source_access": "url", "regulatory_tailwind_note_source_access": "url" }, "data_assets": { "iot_telemetry_penetration_pct": 41.3, "iot_telemetry_penetration_pct_derived": true, "iot_telemetry_penetration_pct_source": "Trade Economy Index research synthesis: median of 1 cited research input: The ACHR NEWS / Decision Analyst 2025 American Home Comfort Study, 2026", "iot_telemetry_penetration_pct_research_pass_count": 1, "iot_telemetry_penetration_pct_confidence": "med", "iot_telemetry_penetration_pct_source_access": "citation-text-only" }, "consolidation": { "consolidation_activity": "The US HVAC & Refrigeration trade is experiencing high-intensity private equity (PE) consolidation and roll-up activity across both residential and commercial/industrial segments. Capstone Partners' July 2026 HVAC Services Sector Update reported steady deal flow with 92 transactions YTD 2026, dominated by PE add-on acquisitions (comprising 41.3% of total deals, with 38 add-on transactions). This follows Capstone's tracking of 149 HVAC service transactions in 2025 (a 12.9% YoY increase). PitchBook's Q2 2025 Analyst Note reported a record 55 PE-closed HVAC deals in 2024 (a 72% YoY surge from 2023). S&P Global Market Intelligence (October 2025) highlighted that global PE add-on transactions targeting HVAC service providers surged 88% YoY through mid-2025. Valuations remain elevated, with PE Hub (March 2026) reporting scaled residential HVAC roll-up platforms trading at 16x-19x EBITDA and commercial/industrial HVAC/R platforms trading at 10x-17x EBITDA.", "consolidation_activity_source": "Capstone Partners (2026); PitchBook Data (2025, https://pitchbook.com/news/reports/q2-2025-pitchbook-analyst-note-clearing-the-air-on-hvac); S&P Global Market Intelligence (2025, https://www.spglobal.com/marketintelligence/); PE Hub (2026, https://www.pehub.com/)", "notable_platforms": "Prominent PE-backed platforms driving HVAC & Refrigeration roll-up consolidation include: (1) Apex Service Partners (Alpine Investors / Apollo Global Management; Apollo made a strategic investment at a ~$10B EV in May 2026, with Apex closing ~60 add-ons in 2025 alone); (2) CoolSys (Ares Management; commercial and industrial refrigeration and HVAC platform with over 10 add-on acquisitions); (3) Wrench Group (Leonard Green & Partners; national home services platform combining residential HVAC, plumbing, and electrical providers); (4) Sila Services (Goldman Sachs Alternatives; $1.5B platform deal, acquiring over 35 regional HVAC brands); (5) Service Champions / Champions Group (acquired by Blackstone at a $2.5B EV / 18.5x EBITDA); and (6) Nextech (Audax Private Equity; commercial HVAC/R service platform across 40+ locations).", "notable_platforms_source": "PE Hub (2026, https://www.pehub.com/); PitchBook Data (2025, https://pitchbook.com/news/reports/q2-2025-pitchbook-analyst-note-clearing-the-air-on-hvac); Capstone Partners (2026, https://www.capstonepartners.com/)", "sources": [ "Capstone Partners - HVAC Services Sector Update (2026):", "PitchBook Data - Analyst Note: Clearing the Air on HVAC (2025): https://pitchbook.com/news/reports/q2-2025-pitchbook-analyst-note-clearing-the-air-on-hvac", "PE Hub - PE Firms Readying HVAC Companies for Sale (2026): https://www.pehub.com", "S&P Global Market Intelligence - Private Equity Add-Ons Drive HVAC Deals (2025): https://www.spglobal.com/marketintelligence", "Capstone Partners - HVAC Services Sector Update (2025):" ], "consolidation_activity_source_access": "url", "notable_platforms_source_access": "url" }, "multiples": { "typical_ebitda_multiple_low": 3.4, "typical_ebitda_multiple_low_derived": true, "typical_ebitda_multiple_low_source": "Trade Economy Index research synthesis: median of 2 cited research inputs: First Page Sage 'HVAC EBITDA & Valuation Multiples Report', 2025, https://firstpagesage.com/reports/hvac-ebitda-valuation-multiples | Axial, 'HVAC Business Valuation Multiples' (2025)", "typical_ebitda_multiple_low_research_pass_count": 3, "typical_ebitda_multiple_low_confidence": "med", "typical_ebitda_multiple_high": 10.9, "typical_ebitda_multiple_high_derived": true, "typical_ebitda_multiple_high_source": "Trade Economy Index research synthesis: median of 2 cited research inputs: First Page Sage, 'HVAC EBITDA & Valuation Multiples - 2025 Report' (2025), https://firstpagesage.com/business/hvac-ebitda-valuation-multiples | Capstone Partners, 'HVAC Services M&A Update' (2026)", "typical_ebitda_multiple_high_research_pass_count": 4, "typical_ebitda_multiple_high_confidence": "high", "multiple_by_size_note": "HVAC multiples scale significantly by company size and earnings tier: small tuck-ins and sub-$1M EBITDA operators trade at 3.0x-5.0x EBITDA; established contractors with $1M-$3M EBITDA range from 5.0x-7.5x EBITDA; multi-location platforms with $3M-$10M EBITDA command 7.0x-10.0x EBITDA; and large platform-grade businesses with $10M+ EBITDA achieve 9.0x-13.0x+ EBITDA.", "multiple_by_size_note_source": "PKF O'Connor Davies 'Summer 2025 HVAC M&A Industry Update', 2025, https://www.pkfib.com and Breakwater M&A 'HVAC Valuation & M&A Guide', 2026, https://www.breakwaterma.com", "multiple_year": "2025-2026", "typical_ebitda_multiple_low_source_access": "url", "typical_ebitda_multiple_high_source_access": "url", "multiple_by_size_note_source_access": "url" }, "exit_environment": { "buyer_demand": "Current buyer demand for US HVAC & Refrigeration businesses is strong and heavily dominated by private equity (PE) buy-and-build rollups as well as strategic consolidators. PE firms and portfolio platform add-ons account for over 50% of total industry transactions. Buyers value most: (1) recurring service and annual maintenance contract revenue, which provides predictable cash flows; (2) strong technician recruitment and workforce retention capabilities; (3) geographic branch density within target metros; and (4) high-demand specialized services such as industrial refrigeration, data center thermal management, and multi-trade service bundling (HVAC combined with plumbing and electrical).", "buyer_demand_source": "Capstone Partners HVAC Services Sector Update (2025, https://www.capstonepartners.com) and PitchBook / Main Street Wealth HVAC Private Equity Analyst Note (2025, https://mainstreetwealth.ai)", "exit_trend": "The exit trend is heating up, with M&A deal volume exhibiting robust growth and outperforming the broader industrial market. Announced and completed HVAC services transactions reached 149 in 2025, representing a 12.9% year-over-year increase. While valuation multiples have normalized from peak pandemic spikes to average around 9.5x EV/EBITDA (2.0x EV/Revenue) for mid-market transactions and 2.5x-5.0x SDE for smaller Main Street businesses, total deal flow remains elevated due to market fragmentation and an aging installed base of systems requiring replacement.", "exit_trend_source": "Capstone Partners HVAC Services M&A Sector Update (2025, https://www.capstonepartners.com) and BizBuySell HVAC Business Transaction Trends (2025, https://www.bizbuysell.com)", "sources": [ "https://www.capstonepartners.com", "https://www.bizbuysell.com", "https://mainstreetwealth.ai", "https://www.sfpadvisors.com" ], "buyer_demand_source_access": "url", "exit_trend_source_access": "url" }, "demand_drivers": { "installed_base_units": 130000000, "installed_base_units_source": "Carrier Global / ACHR News (2026), https://www.achrnews.com/articles/153922-residential-hvac-replacement-market-slowed-in-2025", "installed_base_units_research_pass_count": 5, "installed_base_units_confidence": "med", "replacement_vs_new_note": "Residential HVAC demand is primarily driven by service and equipment replacement rather than new construction. Replacement and retrofit activity historically accounts for roughly 75% to 80% of residential HVAC demand (approximately 8 million units per year), while new construction represents approximately 20% to 25% (1 to 1.5 million units per year).", "replacement_vs_new_note_source": "HARDI / ACHR News (2026), https://www.achrnews.com/articles/155556-what-the-housing-slowdown-means-for-hvac-demand", "demand_drivers_note": "Primary demand drivers for the US HVAC trade include: 1) aging installed equipment reaching end-of-life (~10-15 year lifecycle), 2) seasonal weather conditions and temperature extremes, 3) existing home sales and disposable income, 4) regulatory shifts including regional SEER2 efficiency minimums and low-GWP refrigerant transitions (e.g., R-454B/R-32 mandates), 5) federal/state heat pump electrification incentives (e.g., Inflation Reduction Act), and 6) commercial construction and data center buildouts.", "demand_drivers_note_source": "IBISWorld (2026), https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "installed_base_units_source_access": "url", "replacement_vs_new_note_source_access": "url", "demand_drivers_note_source_access": "url" }, "macro_correlation": { "housing_correlation_note": "Residential HVAC demand is driven by both new construction (housing starts) and residential market turnover/renovations. Data from the U.S. Census Bureau indicates that housing starts directly generate new HVAC installations upon building completion. Additionally, Federal Reserve Board research on the home purchase channel demonstrates that housing turnover and home purchases have a strong positive correlation (0.69) with home-related expenditures, including HVAC replacements and major home renovations, while FRED series TLRESCONS tracks overall residential construction spending.", "housing_correlation_note_source": "U.S. Census Bureau, 'New Residential Construction' (2026), https://www.census.gov/construction/nrc/ ; Federal Reserve Board, 'The Home Purchase Channel of Expenditure' (2025), https://www.federalreserve.gov/econres/feds/2025.htm ; Federal Reserve Bank of St. Louis FRED, 'Total Construction Spending: Residential (TLRESCONS)' (2026), https://fred.stlouisfed.org/series/TLRESCONS", "commercial_correlation_note": "Commercial HVAC equipment demand (such as chillers, rooftop units, and air handlers) correlates with nonresidential and commercial construction spending. According to the U.S. Census Bureau Value of Construction Put in Place (C30 Release) and FRED series TLCOMCONS, commercial construction spending measures multi-quarter value put-in-place across office, lodging, and retail sectors, where HVAC system installation directly tracks construction progress and project fit-out schedules.", "commercial_correlation_note_source": "U.S. Census Bureau, 'Value of Construction Put in Place' (2026), ; Federal Reserve Bank of St. Louis FRED, 'Total Construction Spending: Commercial in the United States (TLCOMCONS)' (2026), https://fred.stlouisfed.org/series/TLCOMCONS", "climate_sensitivity_note": "HVAC demand and space heating/cooling energy usage are highly climate- and weather-sensitive, as captured by Cooling Degree Days (CDDs) and Heating Degree Days (HDDs). NOAA's Residential Energy Demand Temperature Index (REDTI) documents that household energy consumption has a correlation as high as 0.97 with heating degree days at the household level and seasonal correlations up to 0.86 nationally. Studies published via ACEEE further show that electricity demand for space cooling scales non-linearly with CDDs at an exponent of 1.5, confirming high sensitivity to temperature fluctuations.", "climate_sensitivity_note_source": "NOAA National Centers for Environmental Information, 'Residential Energy Demand Temperature Index (REDTI)' (2026), https://www.ncdc.noaa.gov/teleconnections/redti/ ; American Council for an Energy-Efficient Economy (ACEEE), 'Linking Climate Change and Energy Demand' (2020), https://www.aceee.org ; U.S. Environmental Protection Agency (EPA), 'Climate Change Indicators: Heating and Cooling Degree Days' (2020)", "housing_correlation_note_source_access": "url", "commercial_correlation_note_source_access": "url", "climate_sensitivity_note_source_access": "url" }, "search_interest": { "yoy_search_change_pct": 23, "yoy_search_change_pct_derived": true, "yoy_search_change_pct_source": "Trade Economy Index research synthesis: median of 1 cited research input: Vrid.ai (2026) https://vrid.ai", "yoy_search_change_pct_research_pass_count": 1, "yoy_search_change_pct_confidence": "med", "yoy_search_change_pct_shared_across": 4, "yoy_search_change_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 4 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "yoy_search_change_pct_source_access": "url" }, "cust_acquisition": { "typical_cac_usd": 296, "typical_cac_usd_source": "Leads4Build, 'The Complete 2025 HVAC Industry Report', 2025, https://leads4build.com (cross-checked against PipelineOn, 'HVAC Customer Acquisition Cost Benchmarks', 2026, https://pipelineon.com)", "typical_cac_usd_research_pass_count": 5, "typical_cac_usd_confidence": "med", "avg_review_volume": 21, "avg_review_volume_source": "ACHR News, 'Maximize Your HVAC Business's Visibility with Google Business Profile', 2024, https://www.achrnews.com (cross-checked against YDOP Google My Business Industry Study, 2020, https://www.ydop.com)", "avg_review_volume_research_pass_count": 5, "avg_review_volume_confidence": "med", "complaint_categories": "Slowness/unresponsiveness, service or repair issues, product/equipment issues, billing disputes, and aggressive sales/advertising practices (such as upselling and bait-and-switch tactics).", "complaint_categories_source": "Better Business Bureau (BBB) Industry Report (2023), https://www.bbb.org", "typical_cac_usd_source_access": "url", "avg_review_volume_source_access": "url", "complaint_categories_source_access": "url" } }, "subtrade": { "residential": { "bad_debt": { "bad_debt_write_off_pct": 0.1, "bad_debt_write_off_pct_source": "Comfort Systems USA, Inc. 2024 Form 10-K, https://www.sec.gov", "bad_debt_write_off_pct_research_pass_count": 3, "bad_debt_write_off_pct_confidence": "high-primary", "collection_rate_pct": 85.1, "collection_rate_pct_source": "The Level Index: Contractor Invoice Benchmarks (corroborated by CFMA 2024 Financial Benchmarking Survey), 2026, https://levelcfo.com", "collection_rate_pct_research_pass_count": 3, "collection_rate_pct_confidence": "low", "bad_debt_year": "2024", "bad_debt_write_off_pct_shared_across": 5, "bad_debt_write_off_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 5 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "collection_rate_pct_shared_across": 23, "collection_rate_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 23 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "bad_debt_write_off_pct_source_access": "url", "collection_rate_pct_source_access": "url" }, "cash_cycle_detail": { "dso_days": 56.6, "dso_days_source": "CFMA Construction Financial Benchmarker, 2024, https://cfma.org", "dso_days_research_pass_count": 1, "dso_days_confidence": "med", "dpo_days": 41.5, "dpo_days_source": "Comfort Systems USA, Inc. Form 10-K (2023) - https://www.sec.gov/edgar/searchedgar/companysearch", "dpo_days_research_pass_count": 2, "dpo_days_confidence": "adjudicated", "cash_conversion_cycle_days": 20, "cash_conversion_cycle_days_source": "Comfort Systems USA, Inc. Financial & Investor Disclosures (2025), https://www.comfortsystemsusa.com", "cash_conversion_cycle_days_research_pass_count": 2, "cash_conversion_cycle_days_confidence": "adjudicated", "cash_cycle_year": "2024", "dso_days_shared_across": 11, "dso_days_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 11 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "dso_days_source_access": "url", "dpo_days_source_access": "url", "cash_conversion_cycle_days_source_access": "url" }, "cost_structure": { "labor_pct_of_revenue": 29.4, "labor_pct_of_revenue_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US (NAICS 23822a) Cost Structure Benchmarks, 2019, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "labor_pct_of_revenue_research_pass_count": 3, "labor_pct_of_revenue_confidence": "high-primary", "materials_pct_of_revenue": 41.7, "materials_pct_of_revenue_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US (NAICS 23822a) Cost Structure Benchmarks, 2019, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "materials_pct_of_revenue_research_pass_count": 3, "materials_pct_of_revenue_confidence": "high-primary", "sga_overhead_pct": 11, "sga_overhead_pct_source": "Comfort Systems USA, Inc. Form 10-K for the Fiscal Year Ended December 31, 2023, https://www.sec.gov/ix?doc=/Archives/edgar/data/0001035985/000103598524000014/fix-20231231.htm", "sga_overhead_pct_research_pass_count": 3, "sga_overhead_pct_confidence": "high", "cost_structure_year": "2019-2024", "labor_pct_of_revenue_shared_across": 5, "labor_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 5 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "materials_pct_of_revenue_shared_across": 6, "materials_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 6 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "labor_pct_of_revenue_source_access": "url", "materials_pct_of_revenue_source_access": "url", "sga_overhead_pct_source_access": "url" }, "demand_drivers": { "installed_base_units": 130000000, "installed_base_units_source": "Carrier Global Corporation / ACHR News, 2026 (https://www.achrnews.com) and U.S. Energy Information Administration (EIA) Residential Energy Consumption Survey, 2020/2024 (https://www.eia.gov)", "installed_base_units_research_pass_count": 3, "installed_base_units_confidence": "high", "replacement_vs_new_note": "Replacement of existing equipment accounts for approximately 84% to 89% of annual U.S. residential HVAC demand (roughly 8.0 million units per year in normal conditions), while new residential construction accounts for roughly 11% to 16% (1.0 to 1.5 million units per year).", "replacement_vs_new_note_source": "ACHR NEWS, 2026, https://www.achrnews.com/articles/155593-residential-cooling-replacement-market-slows-in-2025", "demand_drivers_note": "Key demand drivers for U.S. residential HVAC & refrigeration include the replacement lifecycle of aging equipment (15-20 year product lifespan), existing home sales and remodeling turnover, new single-family housing starts, severe summer heat and winter weather events, federal efficiency standards (e.g. DOE SEER2 requirements and AIM Act low-GWP refrigerant transitions), and energy-efficiency incentives under the Inflation Reduction Act.", "demand_drivers_note_source": "Heating, Air-conditioning & Refrigeration Distributors International (HARDI), 2026, https://hardinet.org", "installed_base_units_source_access": "url", "replacement_vs_new_note_source_access": "url", "demand_drivers_note_source_access": "url" }, "macro_correlation": { "housing_correlation_note": "U.S. residential HVAC demand correlates directly with new housing starts and single-family home construction, which drive initial equipment sales, alongside an underlying ~15-year equipment replacement cycle. While new housing starts (tracked via FRED series HOUST) exhibit cyclical volatility during economic downturns, residential HVAC demand displays significantly lower downside volatility because mandatory replacement and maintenance of existing units provide a substantial baseline.", "housing_correlation_note_source": "U.S. Census Bureau and U.S. Department of Housing and Urban Development, New Privately-Owned Housing Units Started [HOUST], FRED / Federal Reserve Bank of St. Louis (2026), https://fred.stlouisfed.org/series/HOUST", "commercial_correlation_note": "Commercial HVAC and refrigeration equipment demand correlates with total private nonresidential construction spending (tracked via FRED series PNRESCON) and nonresidential contractor price dynamics (FRED series PCU23822X23822X). Expanding nonresidential verticals such as data centers, manufacturing plants, and commercial retrofits/renovations generate steady demand, which is typically buffered against rapid short-term contractions by multi-year project lead times.", "commercial_correlation_note_source": "U.S. Census Bureau, Total Private Construction Spending: Nonresidential in the United States [PNRESCON], FRED / Federal Reserve Bank of St. Louis (2026), https://fred.stlouisfed.org/series/PNRESCON", "climate_sensitivity_note": "Space heating, cooling, and ventilation account for nearly half (46%) of total energy consumed in U.S. residential and commercial buildings according to U.S. Department of Energy / EIA modeling. Demand is highly weather-sensitive and exhibits a non-linear relationship indexed to Cooling Degree Days (CDDs) and Heating Degree Days (HDDs) against a standard 65°F base temperature. Extreme summer CDD or winter HDD spikes drive elevated unit runtimes, seasonal grid load changes, and accelerated emergency replacements.", "climate_sensitivity_note_source": "U.S. Energy Information Administration (EIA), Annual Energy Outlook 2022: Alternative Weather Assumptions (2022), https://www.eia.gov/todayinenergy/detail.php?id=52678", "housing_correlation_note_source_access": "url", "commercial_correlation_note_source_access": "url", "climate_sensitivity_note_source_access": "url" }, "margins": { "gross_margin_pct": 22.4, "gross_margin_pct_source": "CFMA Construction Financial Benchmarker (Specialty Trades Segment), 2024, https://cfma.org", "gross_margin_pct_research_pass_count": 3, "gross_margin_pct_confidence": "high", "operating_margin_pct": 5.4, "operating_margin_pct_source": "IBISWorld Heating & Air-Conditioning Contractors in the US Report (NAICS 23822a), 2024, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "operating_margin_pct_research_pass_count": 3, "operating_margin_pct_confidence": "adjudicated", "margin_year": "2024", "gross_margin_pct_shared_across": 9, "gross_margin_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 9 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "gross_margin_pct_source_access": "url", "operating_margin_pct_source_access": "url" }, "productivity": { "revenue_per_employee_usd": 252889, "revenue_per_employee_usd_source": "U.S. Census Bureau, 2022 Economic Census (NAICS 238220: Plumbing, Heating, and Air-Conditioning Contractors), https://www.census.gov/programs-surveys/economic-census.html", "revenue_per_employee_usd_research_pass_count": 3, "revenue_per_employee_usd_confidence": "low", "gross_profit_per_labor_hour_usd": 75, "gross_profit_per_labor_hour_usd_source": "Level CFO, 2026 HVAC Contractor Benchmarks (Level Index), https://www.levelcfo.com/benchmarks/hvac", "gross_profit_per_labor_hour_usd_research_pass_count": 1, "gross_profit_per_labor_hour_usd_confidence": "low", "billable_utilization_pct": 65, "billable_utilization_pct_source": "Air Conditioning Contractors of America (ACCA), Financial Benchmarking Study, 2025, https://www.acca.org", "billable_utilization_pct_research_pass_count": 2, "billable_utilization_pct_confidence": "med", "productivity_year": "2022-2026", "billable_utilization_pct_shared_across": 7, "billable_utilization_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 7 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "revenue_per_employee_usd_source_access": "url", "gross_profit_per_labor_hour_usd_source_access": "url", "billable_utilization_pct_source_access": "url" }, "retainage_liens": { "retainage_year": "2024" }, "search_interest": { "yoy_search_change_pct": 23, "yoy_search_change_pct_confidence": "low", "yoy_search_change_pct_shared_across": 4, "yoy_search_change_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 4 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another." }, "seasonality_econ": { "peak_period_note": "Demand for residential central air conditioning replacement equipment and related services is seasonally highest in the second and third quarters of the year (summer cooling season), while demand for heating equipment peaks in the first and fourth quarters (winter heating season).", "peak_period_note_source": "Watsco, Inc. Form 10-K (2025, filed February 28, 2025), https://www.sec.gov/ix?doc=/Archives/edgar/data/105016/000010501625000011/wso-20241231.htm", "cyclicality_note": "The HVAC contracting and building systems industry is subject to general macroeconomic business cycles and weather exposure. Business volume, particularly in new construction and replacement/renovation projects, declines during periods of economic weakness, while financial performance is additionally impacted favorably or unfavorably by the severity or mildness of seasonal weather patterns.", "cyclicality_note_source": "Comfort Systems USA, Inc. Form 10-K (2025, filed February 20, 2025), https://www.sec.gov/ix?doc=/Archives/edgar/data/1035983/000103598325000012/fix-20241231.htm", "peak_period_note_source_access": "url", "cyclicality_note_source_access": "url" } }, "commercial": { "bad_debt": { "bad_debt_write_off_pct": 0.073, "bad_debt_write_off_pct_source": "Comfort Systems USA, Inc. 2025 Form 10-K, https://www.sec.gov/Archives/edgar/data/1035983/000110465926017530/fix-20251231x10k.htm", "bad_debt_write_off_pct_research_pass_count": 3, "bad_debt_write_off_pct_confidence": "adjudicated", "collection_rate_pct": 85.1, "collection_rate_pct_source": "Level CFO, State of Contractor Finance, 2026, https://levelcfo.com/benchmarks/hvac", "collection_rate_pct_research_pass_count": 3, "collection_rate_pct_confidence": "high-primary", "bad_debt_year": "2024", "collection_rate_pct_shared_across": 23, "collection_rate_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 23 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "bad_debt_write_off_pct_source_access": "url", "collection_rate_pct_source_access": "url" }, "cash_cycle_detail": { "dso_days": 96.67, "dso_days_source": "Comfort Systems USA, Inc. Form 10-K Annual Report for FY2024 (Billed Accounts Receivable of $1,861,212 thousand divided by Total Revenues of $7,027,476 thousand multiplied by 365 days), filed February 20, 2025. URL: https://www.comfortsystemsusa.com", "dso_days_research_pass_count": 3, "dso_days_confidence": "high", "dpo_days": 43.06, "dpo_days_source": "Comfort Systems USA, Inc. Form 10-K Annual Report for FY2024 (Accounts Payable of $654,943 thousand divided by Cost of Services of $5,551,065 thousand multiplied by 365 days), filed February 20, 2025. URL: https://www.comfortsystemsusa.com", "dpo_days_research_pass_count": 3, "dpo_days_confidence": "adjudicated", "cash_conversion_cycle_days": 72.9, "cash_conversion_cycle_days_source": "Computed from Comfort Systems USA, Inc. 2024 Form 10-K (DSO + DIO - DPO), https://www.sec.gov/edgar/searchedgar/companysearch", "cash_conversion_cycle_days_research_pass_count": 3, "cash_conversion_cycle_days_confidence": "med", "cash_cycle_year": "2024", "dso_days_source_access": "url", "dpo_days_source_access": "url", "cash_conversion_cycle_days_source_access": "url" }, "cost_structure": { "labor_pct_of_revenue": 29.4, "labor_pct_of_revenue_source": "IBISWorld Industry Report 23822a: Heating & Air-Conditioning Contractors in the US (2019), https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "labor_pct_of_revenue_research_pass_count": 3, "labor_pct_of_revenue_confidence": "low", "materials_pct_of_revenue": 41.7, "materials_pct_of_revenue_source": "IBISWorld Industry Report 23822a: Heating & Air-Conditioning Contractors in the US (2019), https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "materials_pct_of_revenue_research_pass_count": 3, "materials_pct_of_revenue_confidence": "low", "sga_overhead_pct": 10.4, "sga_overhead_pct_source": "Comfort Systems USA, Inc. 2024 Form 10-K (Annual Report for the fiscal year ended December 31, 2024), https://www.sec.gov/ix?doc=/Archives/edgar/data/0001035983/000103598325000009/fix-20241231.htm", "sga_overhead_pct_research_pass_count": 3, "sga_overhead_pct_confidence": "high-primary", "cost_structure_year": "2024", "labor_pct_of_revenue_shared_across": 5, "labor_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 5 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "materials_pct_of_revenue_shared_across": 6, "materials_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 6 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "labor_pct_of_revenue_source_access": "url", "materials_pct_of_revenue_source_access": "url", "sga_overhead_pct_source_access": "url" }, "demand_drivers": { "installed_base_units": 5900000, "installed_base_units_source": "U.S. Energy Information Administration (EIA) Commercial Buildings Energy Consumption Survey (CBECS), 2018, https://www.eia.gov/consumption/commercial/data/2018", "installed_base_units_research_pass_count": 3, "installed_base_units_confidence": "high-primary", "replacement_vs_new_note": "Replacement and retrofit work represents the majority of commercial HVAC demand, accounting for approximately 60% to 80% of market activity, while new construction accounts for the remaining 20% to 40%.", "replacement_vs_new_note_source": "IBISWorld, 2024, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "demand_drivers_note": "Primary demand drivers include equipment replacement cycles for aging building stock (over 75% built before 2000), federal and state energy efficiency standards (e.g., DOE SEER2), regulatory refrigerant phase-downs (EPA AIM Act transitions to low-GWP refrigerants), building electrification initiatives, and targeted non-residential construction growth in high-demand sectors like data centers and healthcare.", "demand_drivers_note_source": "U.S. Energy Information Administration (EIA), 2023, https://www.eia.gov/consumption/commercial/ & U.S. Department of Energy (DOE), 2023, https://www.energy.gov/eere/buildings/commercial-buildings-integration", "installed_base_units_shared_across": 15, "installed_base_units_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 15 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "installed_base_units_source_access": "url", "replacement_vs_new_note_source_access": "url", "demand_drivers_note_source_access": "url" }, "macro_correlation": { "housing_correlation_note": "Demand for residential HVAC equipment correlates directly with new residential construction and housing starts, as every newly constructed unit requires a primary HVAC system installation. According to U.S. Census Bureau and EIA research, while housing starts drive new-build HVAC installations, residential demand reacts rapidly to mortgage rates and housing turnover, making it more cyclically volatile than commercial HVAC demand.", "housing_correlation_note_source": "U.S. Census Bureau (2026), New Residential Construction, https://www.census.gov/construction/nrc/index.html; U.S. Energy Information Administration (2023), Residential Demand Module of the National Energy Modeling System", "commercial_correlation_note": "Commercial HVAC and commercial refrigeration equipment demand strongly correlates with nonresidential and commercial construction spending (tracked via FRED Series TLCOMCONS) and commercial structure investments. Commercial HVAC demand is driven by multi-year capital investment cycles, ongoing facility modernization, regulatory energy-efficiency mandates, and non-deferrable maintenance, making it significantly more resilient to short-term interest rate pressure than residential housing starts.", "commercial_correlation_note_source": "Federal Reserve Bank of St. Louis (2026), Total Construction Spending: Commercial (TLCOMCONS), FRED, https://fred.stlouisfed.org/series/TLCOMCONS; Federal Reserve Board (2024), Commercial Construction Dynamics, https://www.federalreserve.gov", "climate_sensitivity_note": "Commercial and residential HVAC energy demand exhibits high sensitivity to weather variations measured by Cooling Degree Days (CDDs). EIA data projects space cooling to be the fastest-growing building energy end-use through 2050 as average annual CDDs increase. Research from ACEEE and the U.S. Department of Energy indicates residential HVAC demand is relatively more weather-sensitive than commercial HVAC demand because homes have higher surface-area-to-volume ratios exposed to ambient weather, whereas commercial buildings maintain substantial baseload internal heat gains from lighting, office equipment, and human occupancy.", "climate_sensitivity_note_source": "U.S. Energy Information Administration (2024), Energy Explained: Degree-Days, https://www.eia.gov/energyexplained/units-and-calculators/degree-days.php; American Council for an Energy-Efficient Economy (ACEEE) / U.S. Department of Energy (2014), Estimating the Climate Sensitivity of Space Cooling Energy Consumption", "housing_correlation_note_source_access": "url", "commercial_correlation_note_source_access": "url", "climate_sensitivity_note_source_access": "url" }, "margins": { "gross_margin_pct": 21.01, "gross_margin_pct_source": "Comfort Systems USA, Inc. FY 2024 Form 10-K (SEC Filing), https://www.sec.gov/edgar/browse/?CIK=0001035983; cross-checked against EMCOR Group, Inc. FY 2024 Form 10-K (18.98%), https://www.sec.gov/edgar/browse/?CIK=0001056087", "gross_margin_pct_research_pass_count": 3, "gross_margin_pct_confidence": "high", "operating_margin_pct": 10.66, "operating_margin_pct_source": "Comfort Systems USA, Inc. FY 2024 Form 10-K (SEC Filing), https://www.sec.gov/edgar/browse/?CIK=0001035983; cross-checked against EMCOR Group, Inc. FY 2024 Form 10-K (9.23%), https://www.sec.gov/edgar/browse/?CIK=0001056087", "operating_margin_pct_research_pass_count": 3, "operating_margin_pct_confidence": "med", "net_margin_pct": 7.4, "net_margin_pct_source": "Comfort Systems USA, Inc. Form 10-K (2024), SEC EDGAR, https://www.sec.gov/ix?doc=/Archives/edgar/data/1035983/000110465925015383/fix-20241231x10k.htm", "net_margin_pct_research_pass_count": 3, "net_margin_pct_confidence": "high", "margin_year": "2024", "gross_margin_pct_source_access": "url", "operating_margin_pct_source_access": "url", "net_margin_pct_source_access": "url" }, "productivity": { "revenue_per_employee_usd": 252889, "revenue_per_employee_usd_source": "U.S. Census Bureau, 2022 Economic Census (NAICS 238220: Plumbing, Heating, and Air-Conditioning Contractors; $297.6B receipts across 1,176,800 paid employees), https://www.census.gov/programs-surveys/economic-census.html. Cross-checked with CFMA / AGC Specialty Trade Benchmarks ($180,000-$300,000 per employee for HVAC service), https://cfma.org.", "revenue_per_employee_usd_research_pass_count": 3, "revenue_per_employee_usd_confidence": "low", "billable_utilization_pct": 65, "billable_utilization_pct_source": "ACHR News / Field Promax, 'Report: Only 65% of HVAC Technician Time is Billable Hours' (2024), https://www.achrnews.com/articles/154707-report-only-65-of-hvac-technician-time-is-billable-hours", "billable_utilization_pct_research_pass_count": 2, "billable_utilization_pct_confidence": "low", "productivity_year": "2022-2024", "billable_utilization_pct_shared_across": 7, "billable_utilization_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 7 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "revenue_per_employee_usd_source_access": "url", "billable_utilization_pct_source_access": "url" }, "retainage_liens": { "retainage_year": "2022" }, "search_interest": { "yoy_search_change_pct": 23, "yoy_search_change_pct_confidence": "low", "yoy_search_change_pct_shared_across": 4, "yoy_search_change_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 4 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another." }, "seasonality_econ": { "peak_period_note": "Demand for commercial HVAC and mechanical contracting services is generally higher during the second and third calendar quarters due to increased construction activity and higher utilization of air conditioning during warmer months, while demand is lower during winter months (first calendar quarter).", "peak_period_note_source": "Comfort Systems USA, Inc., Form 10-K for Fiscal Year Ended December 31, 2025 (2026), https://www.sec.gov/ix?doc=/Archives/edgar/data/0001035983/000103598326000008/fix-20251231.htm", "cyclicality_note": "Commercial mechanical contracting is highly cyclical and exposed to broader economic cycles; business volume in new installation and replacement projects can be adversely affected during periods of economic weakness and regional declines in commercial construction activity.", "cyclicality_note_source": "Comfort Systems USA, Inc., Form 10-K for Fiscal Year Ended December 31, 2025 (2026), https://www.sec.gov/ix?doc=/Archives/edgar/data/0001035983/000103598326000008/fix-20251231.htm", "peak_period_note_source_access": "url", "cyclicality_note_source_access": "url" } }, "industrial": { "bad_debt": { "bad_debt_write_off_pct": 0.073, "bad_debt_write_off_pct_source": "Comfort Systems USA, Inc., 2025 Form 10-K Annual Report (SEC.gov), https://www.sec.gov/edgar/browse/?CIK=0001035983", "bad_debt_write_off_pct_research_pass_count": 3, "bad_debt_write_off_pct_confidence": "low", "collection_rate_pct": 85.1, "collection_rate_pct_source": "Level CFO 2024 HVAC Contractor Benchmarks (2024; https://www.levelcfo.com): Median collection rate (effective cash conversion of billings collected) for HVAC and mechanical contractors is 85.1%, with top-decile contractors reaching 96.0%.", "collection_rate_pct_research_pass_count": 1, "collection_rate_pct_confidence": "low", "bad_debt_year": "2024", "collection_rate_pct_shared_across": 23, "collection_rate_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 23 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "bad_debt_write_off_pct_source_access": "url", "collection_rate_pct_source_access": "url" }, "cash_cycle_detail": { "dso_days": 73.8, "dso_days_derived": true, "dso_days_source": "Trade Economy Index research synthesis: median of 2 cited research inputs: CFMA 2024 Construction Financial Benchmarker, 2024, https://cfma.org/benchmarker | EMCOR Group, Inc. Form 10-K for Fiscal Year Ended December 31, 2025 (https://www.sec.gov/edgar/searchedgar/companysearch)", "dso_days_research_pass_count": 2, "dso_days_confidence": "low", "dpo_days": 33, "dpo_days_source": "EMCOR Group, Inc. Form 10-K for Fiscal Year Ended December 31, 2025 (https://www.sec.gov/edgar/searchedgar/companysearch)", "dpo_days_research_pass_count": 1, "dpo_days_confidence": "low", "cash_conversion_cycle_days": 58, "cash_conversion_cycle_days_source": "Calculated from EMCOR Group, Inc. Form 10-K FY2025 (DSO 91 days minus DPO 33 days) (https://www.sec.gov/edgar/searchedgar/companysearch)", "cash_conversion_cycle_days_research_pass_count": 1, "cash_conversion_cycle_days_confidence": "low", "cash_cycle_year": "2025", "dpo_days_shared_across": 8, "dpo_days_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 8 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "dso_days_source_access": "url", "dpo_days_source_access": "url", "cash_conversion_cycle_days_source_access": "url" }, "cost_structure": { "labor_pct_of_revenue": 29.4, "labor_pct_of_revenue_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US (Report 23822a), 2019, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "labor_pct_of_revenue_research_pass_count": 3, "labor_pct_of_revenue_confidence": "low", "materials_pct_of_revenue": 41.7, "materials_pct_of_revenue_source": "IBISWorld, Heating & Air-Conditioning Contractors in the US (Report 23822a), 2019, https://www.ibisworld.com/united-states/market-research-reports/heating-air-conditioning-contractors-industry", "materials_pct_of_revenue_research_pass_count": 3, "materials_pct_of_revenue_confidence": "low", "sga_overhead_pct": 10.39, "sga_overhead_pct_source": "Comfort Systems USA, Inc., Form 10-K for the Fiscal Year Ended December 31, 2024, https://www.sec.gov/ix?doc=/Archives/edgar/data/1035983/000103598325000007/fix-20241231.htm", "sga_overhead_pct_research_pass_count": 3, "sga_overhead_pct_confidence": "med", "cost_structure_year": "2019 - 2024", "labor_pct_of_revenue_shared_across": 5, "labor_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 5 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "materials_pct_of_revenue_shared_across": 6, "materials_pct_of_revenue_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 6 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "labor_pct_of_revenue_source_access": "url", "materials_pct_of_revenue_source_access": "url", "sga_overhead_pct_source_access": "url" }, "demand_drivers": { "installed_base_units": 5900000, "installed_base_units_source": "U.S. Energy Information Administration (EIA), Commercial Buildings Energy Consumption Survey (CBECS) 2018 (released 2022), https://www.eia.gov/consumption/commercial", "installed_base_units_research_pass_count": 3, "installed_base_units_confidence": "high-primary", "demand_drivers_note": "Primary demand drivers include mandatory regulatory compliance (the EPA AIM Act transition away from R-410A to lower-GWP A2L refrigerants such as R-454B and R-32), higher federal SEER2 efficiency standards, non-deferrable emergency replacements of aging building HVAC systems, and construction spending in key nonresidential segments like data centers, healthcare, and manufacturing.", "demand_drivers_note_source": "U.S. Census Bureau, Value of Construction Put in Place Survey (2026), https://www.census.gov/construction/c30/c30index.html", "installed_base_units_shared_across": 15, "installed_base_units_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 15 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "installed_base_units_source_access": "url", "demand_drivers_note_source_access": "url" }, "macro_correlation": { "housing_correlation_note": "New residential housing starts and completions directly drive primary HVAC equipment installation demand, as 98% of new U.S. single-family homes started in 2024 installed central air conditioning and 97% installed a primary heating system (47% heat pumps, 50% forced air). Residential HVAC equipment demand and market value scale with residential construction spending, while initial unit installations establish a roughly 15-year baseline cycle for future replacement demand.", "housing_correlation_note_source": "U.S. Census Bureau, Survey of Construction & New Residential Construction, 2025, https://www.census.gov/construction/nrc/index.html; Federal Reserve Bank of St. Louis (FRED), Total Construction Spending: Residential in the United States [TLRESCONS], 2026, https://fred.stlouisfed.org/series/TLRESCONS", "commercial_correlation_note": "Commercial HVAC and industrial refrigeration equipment demand correlates directly with nonresidential and commercial construction put-in-place spending, monitored via FRED series TLCOMCONS and TLNRESCONS. New commercial building developments drive spending on applied systems (chillers, rooftop units, air handlers) and industrial refrigeration equipment, with nonresidential macro activity, particularly in manufacturing and data center construction, acting as a major driver for commercial cooling capacity.", "commercial_correlation_note_source": "Federal Reserve Bank of St. Louis (FRED), Total Construction Spending: Commercial in the United States [TLCOMCONS], 2026, https://fred.stlouisfed.org/series/TLCOMCONS; Federal Reserve Bank of St. Louis (FRED), Total Construction Spending: Nonresidential in the United States [TLNRESCONS], 2026, https://fred.stlouisfed.org/series/TLNRESCONS", "climate_sensitivity_note": "HVAC equipment utilization and energy demand display a strong non-linear sensitivity to weather and climate variations, quantified using Cooling Degree Days (CDD) and Heating Degree Days (HDD) measured against a 65°F baseline temperature. Heating and cooling account for approximately 48% of total U.S. household energy usage, and long-term warming trends have increased annual CDDs in 97% of studied U.S. locations since 1970, driving higher seasonal peak cooling demand and accelerating equipment wear during heatwaves.", "climate_sensitivity_note_source": "U.S. Energy Information Administration (EIA) / U.S. Department of Energy (DOE), Degree Days Explained, 2023, https://www.eia.gov/energyexplained/units-and-calculators/degree-days.php; U.S. Environmental Protection Agency (EPA), Climate Change Indicators: Heating and Cooling Degree Days, 2016", "housing_correlation_note_source_access": "url", "commercial_correlation_note_source_access": "url", "climate_sensitivity_note_source_access": "url" }, "margins": { "gross_margin_pct": 21.01, "gross_margin_pct_source": "Comfort Systems USA, Inc. 2024 Form 10-K Annual Report, SEC EDGAR, https://www.sec.gov/edgar/browse/?CIK=0001035983", "gross_margin_pct_research_pass_count": 3, "gross_margin_pct_confidence": "med", "operating_margin_pct": 7.1, "operating_margin_pct_source": "CFMA Construction Financial Benchmarker (EBIT Margin, 2024), https://cfma.org", "operating_margin_pct_research_pass_count": 3, "operating_margin_pct_confidence": "adjudicated", "margin_year": "2024", "operating_margin_pct_shared_across": 14, "operating_margin_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 14 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "gross_margin_pct_source_access": "url", "operating_margin_pct_source_access": "url" }, "productivity": { "revenue_per_employee_usd": 320661, "revenue_per_employee_usd_source": "Construction Financial Management Association (CFMA) 2025 Construction Financial Benchmarker (2024), https://cfma.org/benchmarker", "revenue_per_employee_usd_research_pass_count": 3, "revenue_per_employee_usd_confidence": "adjudicated", "gross_profit_per_labor_hour_usd": 150, "gross_profit_per_labor_hour_usd_source": "Electric & Gas Industries Association (EGIA) Contractor University (2025), https://mycontractoruniversity.com", "gross_profit_per_labor_hour_usd_research_pass_count": 1, "gross_profit_per_labor_hour_usd_confidence": "low", "billable_utilization_pct": 70, "billable_utilization_pct_derived": true, "billable_utilization_pct_source": "Trade Economy Index research synthesis: median of 2 cited research inputs: TSIA (Technology & Services Industry Association), Field Services Benchmark Study, 2025, https://www.tsia.com | Granular HVAC Technician Utilization Benchmark Guide (2026), https://granular.to", "billable_utilization_pct_research_pass_count": 2, "billable_utilization_pct_confidence": "med", "productivity_year": "2024", "billable_utilization_pct_shared_across": 5, "billable_utilization_pct_note": "This figure is an industry-wide benchmark, not a per-trade measurement: the same value is published for 5 trade or segment records in this dataset. Read it as the specialty-trade baseline, not as a finding that distinguishes this trade from another.", "revenue_per_employee_usd_source_access": "url", "gross_profit_per_labor_hour_usd_source_access": "url", "billable_utilization_pct_source_access": "url" }, "retainage_liens": { "retainage_year": "2022" }, "search_interest": {}, "seasonality_econ": { "peak_period_note": "Demand for mechanical contracting services is generally higher in the second and third calendar quarters (spring and summer) due to increased construction activity and higher usage of air conditioning during warmer months. Demand for new installation and replacement is lower during the winter months (first quarter) due to inclement weather reducing construction activity and lower cooling demand.", "peak_period_note_source": "Comfort Systems USA, Inc. Form 10-Q (2026)", "cyclicality_note": "The mechanical contracting industry is subject to business cycle fluctuations. Revenue from new construction and major renovation projects is highly cyclical and declines during periods of economic weakness. However, maintenance, repair, and replacement services for existing facilities are relatively resistant to economic downturns and provide steady baseline demand.", "cyclicality_note_source": "Comfort Systems USA, Inc. Form 10-Q (2026)", "peak_period_note_source_access": "citation-text-only", "cyclicality_note_source_access": "citation-text-only" } } }, "segments": { "bands": [ { "band": "0-1M", "band_label": "under $1M annual revenue (owner-operator / very small shop)", "metrics": { "gross_margin_pct": { "value": 22.4, "source": "Construction Financial Management Association (CFMA), 2025, https://cfma.org", "confidence": "low", "basis": "Specialty Trades segment average gross profit margin", "source_access": "url" }, "dso_days": { "value": 83, "source": "Construction Financial Management Association (CFMA), 2024, https://cfma.org", "confidence": "low", "basis": "Average days sales outstanding including retainage for construction contractors", "source_access": "url" }, "recurring_rev_pct": { "value": 10, "source": "Air Conditioning Contractors of America (ACCA), 2024, https://www.acca.org", "confidence": "low", "basis": "Average maintenance agreement revenue as percentage of total revenue for HVAC contractors", "source_access": "url" } } }, { "band": "1-5M", "band_label": "$1M to $5M annual revenue (small established contractor)", "metrics": { "gross_margin_pct": { "value": 22.4, "source": "Construction Financial Management Association (CFMA) 2025 https://cfma.org", "confidence": "low", "basis": "Gross profit margin for Specialty Trades segment from 2025 Construction Financial Benchmarker (FY2024 data)", "source_access": "url" }, "dso_days": { "value": 45, "source": "Construction Financial Management Association (CFMA) 2024 https://cfma.org", "confidence": "low", "basis": "Average trade AR days sales outstanding for specialty trade contractors", "source_access": "url" }, "recurring_rev_pct": { "value": 20, "source": "Air Conditioning Contractors of America (ACCA) 2024 https://www.acca.org", "confidence": "med", "basis": "Maintenance agreement / service contract revenue share for established $1M-$5M HVAC contractors", "source_access": "url" } } }, { "band": "5-20M", "band_label": "$5M to $20M annual revenue (mid-market, multi-crew)", "metrics": { "gross_margin_pct": { "value": 45, "source": "Air Conditioning Contractors of America (ACCA) 2024", "confidence": "high", "basis": "Median gross profit margin for HVAC contractors in the $1M to $15M revenue band", "source_access": "citation-text-only" }, "collection_rate_pct": { "value": 85.1, "source": "Level CFO analysis of 464 contractors, https://levelcfo.com/benchmarks/contractor", "confidence": "med", "basis": "Median cash collected as a percentage of amounts billed, n=464 companies", "source_access": "url" }, "dso_days": { "value": 56.6, "source": "Construction Financial Management Association (CFMA) 2024 https://www.docjoist.com", "confidence": "med", "basis": "Average Days Sales Outstanding for specialty trade contractors (CFMA FY2023 data)", "source_access": "url" }, "recurring_rev_pct": { "value": 55, "source": "Air Conditioning Contractors of America (ACCA) 2025 https://www.thetradeagent.com", "confidence": "low", "basis": "Industry-wide share of HVACR total revenue derived from recurring service agreements", "source_access": "url" } } }, { "band": "20M+", "band_label": "over $20M annual revenue (large / regional / PE-backed)", "metrics": { "gross_margin_pct": { "value": 18, "source": "Construction Financial Management Association (CFMA), 2024, https://www.cfma.org", "confidence": "med", "basis": "Midpoint benchmark (14% to 22%) for commercial mechanical contractors from CFMA Annual Financial Survey", "source_access": "url" }, "dso_days": { "value": 57, "source": "Construction Financial Management Association (CFMA), 2025, https://www.cfma.org", "confidence": "low", "basis": "Average Days Sales Outstanding for specialty trade contractors (HVAC, electrical, plumbing)", "source_access": "url" }, "recurring_rev_pct": { "value": 40, "source": "CT Acquisitions, 2026, https://www.ctacquisitions.com", "confidence": "high", "basis": "Benchmark recurring service-agreement revenue share for PE-backed commercial HVAC platform contractors ($20M+ revenue band)", "source_access": "url" } } } ] }, "geo": { "states": [ { "name": "Alabama", "where": "AL", "median_hourly_wage_usd": 22.62, "wage_differential_vs_national_pct": -21.32, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_al.htm", "license_regime": "State-level licensing is required in Alabama for HVAC and refrigeration contracting, regulated by the Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors (HACR). Specific license tiers include Heating & Air Conditioning Contractor (Active/Inactive), Refrigeration Contractor (Active/Inactive), and Duct Air Tightness Contractor. Applicants must pass a state-administered exam via Prov and document at least 3,000 hours of apprenticeship/work experience or complete an approved curriculum.", "license_source": "Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors (HACR), 2024, https://hacr.alabama.gov", "bonding_requirement": "All active HVAC and Refrigeration contractors in Alabama must hold a $20,000 performance surety bond filed with the Board (increased effective October 1, 2024, under Ala. Admin. Code 440-X-3-.04). Inactive contractors are exempt from the bond requirement. Employers with 5 or more workers are also legally required to maintain Workers' Compensation insurance.", "bonding_source": "Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors (HACR), Ala. Admin. Code 440-X-3-.04, 2024, https://hacr.alabama.gov", "market_size_or_density_note": "Alabama employs approximately 6,900 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), reflecting an occupational concentration of 3.363 jobs per 1,000 total state employment and a location quotient of 1.28.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_al.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 22.62 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Alaska", "where": "AK", "median_hourly_wage_usd": 36.24, "wage_differential_vs_national_pct": 26.05, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023 (published April 2024), https://www.bls.gov/oes/current/oes_ak.htm", "license_regime": "State-level registration is required for Mechanical Contractors through the Alaska Division of Corporations, Business and Professional Licensing (CBPL). Individual HVAC technicians are not licensed as journeymen at the state level; however, a contracting business must register as a Mechanical Contractor and employ or be owned by a licensed Mechanical Administrator. Specialty mechanical administrator license categories include Heating, Cooling, and Process Piping (HCPP), Unlimited HVAC/Sheet Metal (UHVCS), Unlimited Refrigeration (UR), Residential HVAC (RHVC), and Mechanical Systems Temperature Control (CNTL). Local municipalities (such as Anchorage) may impose additional local licensing requirements.", "license_source": "Alaska Department of Commerce, Community, and Economic Development - Division of Corporations, Business and Professional Licensing, 2024, https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/MechanicalAdministrators.aspx", "bonding_requirement": "Mechanical Contractors in Alaska are required under AS 08.18.071 and AS 08.18.101 to post a $10,000 surety bond. They must also maintain public liability and property damage insurance of at least $20,000 for property damage, $50,000 for injury or death to one person, and $100,000 for injury or death to multiple persons, as well as workers' compensation insurance if employing workers.", "bonding_source": "Alaska Department of Commerce, Community, and Economic Development - Division of Corporations, Business and Professional Licensing (Alaska Statute AS 08.18.071 & AS 08.18.101), 2024, https://www.commerce.alaska.gov/web/cbpl/ProfessionalLicensing/ConstructionContractors.aspx", "market_size_or_density_note": "According to May 2023 BLS OEWS data, Alaska employed 610 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an employment density of 1.945 per 1,000 jobs and a location quotient of 0.74 relative to the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023 (published April 2024), https://www.bls.gov/oes/current/oes_ak.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 36.24 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Arizona", "where": "AZ", "median_hourly_wage_usd": 23.86, "wage_differential_vs_national_pct": -17.01, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_az.htm and https://www.bls.gov/oes/current/oes499021.htm", "license_regime": "State-level licensing is required in Arizona for any HVAC work exceeding $1,000 in total cost or requiring a building permit, administered by the Arizona Registrar of Contractors (ROC). License classifications for HVAC contractors include Specialty Residential (R-39 / R-79 with solar), Specialty Commercial (C-39 / C-79 with solar), and Dual Residential/Commercial (CR-39 / CR-79 with solar). Individual technicians work under a licensed contractor, though local municipalities (such as the City of Phoenix) may maintain local journeyman/apprentice certifications.", "license_source": "Arizona Registrar of Contractors (ROC), 2024, https://roc.az.gov/license-classifications", "bonding_requirement": "Per ARS § 32-1152, contractors must post a surety bond or cash deposit based on license classification and estimated annual gross volume. For Specialty Commercial (C-39), bond minimums range from $2,500 (annual gross volume under $150,000) to $50,000 ($10,000,000 or more). For Specialty Residential (R-39), bond minimums range from $4,250 (volume under $375,000) to $7,500 ($375,000 or more), plus an assessment fee for the Residential Contractors' Recovery Fund (or a $200,000 surety bond). Dual licenses require combining residential and commercial bond amounts. Workers' compensation insurance is required for contractors with employees.", "bonding_source": "Arizona State Legislature / Arizona Revised Statutes § 32-1152, 2024, https://www.azleg.gov/ars/32/01152.htm", "market_size_or_density_note": "In Arizona, there were 10,980 Heating, Air Conditioning, and Refrigeration Mechanics and Installers employed in May 2023, representing a density of 3.508 workers per 1,000 total state jobs and a Location Quotient of 1.34 relative to the U.S. average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_az.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 23.86 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Arkansas", "where": "AR", "median_hourly_wage_usd": 22.9, "wage_differential_vs_national_pct": -20.35, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 State OEWS, https://www.bls.gov/oes/current/oes_ar.htm", "license_regime": "State-level licensing is required in Arkansas and administered statewide by the Arkansas Department of Labor and Licensing (State HVAC/R Board). Tiers include Class A (unlimited capacity), Class B (up to 15 tons cooling capacity), Class C (servicing and repair only), Class D (sheet metal and ductwork), Class E (refrigeration without horsepower limits), Class L (lifetime license for applicants age 65+), and HVAC/R Registrant (entry-level technicians working under a licensed contractor).", "license_source": "Arkansas Department of Labor and Licensing, State HVAC/R Board (2022), https://www.labor.arkansas.gov/labor/code-enforcement/hvac-r", "bonding_requirement": "Class A, B, C, D, and E license holders must carry a minimum of $250,000 in general liability insurance coverage (Registrants and Class L are exempt). A surety bond is not required by the HVAC/R board, but commercial HVAC projects valued at $50,000 or more regulated by the Arkansas Contractors Licensing Board require a $10,000 surety bond.", "bonding_source": "Arkansas Department of Labor and Licensing, HVAC/R Board Rules (2022), https://www.labor.arkansas.gov/labor/code-enforcement/hvac-r", "market_size_or_density_note": "Arkansas employed 3,830 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with an occupational location quotient of 1.15, indicating worker density 15% higher than the national average.", "market_source": "U.S. Bureau of Labor Statistics, May 2023 State OEWS, https://www.bls.gov/oes/current/oes_ar.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 22.9 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "California", "where": "CA", "median_hourly_wage_usd": 29.92, "wage_differential_vs_national_pct": 4.07, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS), 2023, https://www.bls.gov/oes/current/oes_ca.htm", "license_regime": "California requires state-level licensure through the Contractors State License Board (CSLB) for any HVAC work valued at $500 or more (labor and materials combined). The standard license classification is the Class C-20 Warm-Air Heating, Ventilating and Air-Conditioning Contractor license (and Class C-38 for Refrigeration). Applicants must be at least 18 years old, document at least 4 years of journey-level experience within the last 10 years, and pass state Law & Business and Trade examinations.", "license_source": "California Contractors State License Board (CSLB), 2023, https://www.cslb.ca.gov", "bonding_requirement": "CSLB requires a $25,000 contractor license bond (increased from $15,000 under SB 607 effective January 1, 2023). Contractors structured as LLCs require an additional $100,000 employee/worker bond. Contractors with employees must also maintain Workers' Compensation insurance.", "bonding_source": "California Contractors State License Board (CSLB), 2023", "market_size_or_density_note": "California employed 35,630 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) in May 2023, representing an employment density of 1.985 per 1,000 jobs.", "market_source": "U.S. Bureau of Labor Statistics (BLS), 2023, https://www.bls.gov/oes/current/oes_ca.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 29.92 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Colorado", "where": "CO", "median_hourly_wage_usd": 29.48, "wage_differential_vs_national_pct": 2.54, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS State Occupational Employment and Wage Estimates (Colorado), published April 2024, https://www.bls.gov/oes/current/oes_co.htm", "license_regime": "No state-level HVAC contractor license is required in Colorado. License regimes are decentralized and governed at the local municipal or county level (e.g., Denver Community Planning and Development, Pikes Peak Regional Building Department). However, state-level licensure through the Colorado Department of Regulatory Agencies (DORA) is required for any electrical or plumbing work performed as part of HVAC installations.", "license_source": "Colorado Department of Regulatory Agencies (DORA), Division of Professions and Occupations (2024), https://dora.colorado.gov", "bonding_requirement": "Colorado has no statewide surety bond or general liability insurance requirement for HVAC contractors. Surety bonding and liability insurance minimums are set locally by individual cities and counties (e.g., Denver requires contractor bonds ranging from $5,000 to $50,000 depending on license classification, and local jurisdictions commonly require general liability coverage of $300,000 to $1,000,000).", "bonding_source": "Colorado Department of Regulatory Agencies (DORA) / Local Municipal Codes (2024), https://dora.colorado.gov", "market_size_or_density_note": "According to the BLS May 2023 OEWS data, Colorado employed 7,410 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an employment density of 2.618 per 1,000 jobs (location quotient of 1.00 relative to the national average).", "market_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS State Occupational Employment and Wage Estimates (Colorado), published April 2024, https://www.bls.gov/oes/current/oes_co.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 29.48 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Connecticut", "where": "CT", "median_hourly_wage_usd": 31.15, "wage_differential_vs_national_pct": 8.35, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ct.htm", "license_regime": "State-level licensing is required in Connecticut for HVAC and refrigeration work, administered by the Department of Consumer Protection (DCP). Primary license tiers include Unlimited Heating, Piping, and Cooling Contractor (S-1) and Journeyperson (S-2), and Limited Warm Air, Air Conditioning, and Refrigeration Contractor (D-1) and Journeyperson (D-2).", "license_source": "Connecticut Department of Consumer Protection (DCP), 2024", "bonding_requirement": "Connecticut does not require a state surety bond to hold a DCP trade contractor license. However, general liability insurance is required, workers' compensation insurance is mandatory for employers with one or more employees, and residential contractors registering as Home Improvement Contractors (HIC) must maintain a $15,000 surety bond.", "bonding_source": "Connecticut Department of Consumer Protection (DCP), 2024, https://portal.ct.gov/dcp", "market_size_or_density_note": "Connecticut has an estimated 4,720 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers, representing a concentration of 2.84 jobs per 1,000 total jobs in the state and a location quotient of 1.09.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ct.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 31.15 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Delaware", "where": "DE", "median_hourly_wage_usd": 29.11, "wage_differential_vs_national_pct": 1.25, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 State Occupational Employment and Wage Estimates - Delaware, 2024, https://www.bls.gov/oes/current/oes_de.htm", "license_regime": "Statewide licensing is required in Delaware to provide HVACR services. The Delaware Board of Plumbing, Heating, Ventilation, Air Conditioning and Refrigeration Examiners (under the Division of Professional Regulation) issues state-level licenses for Master HVACR (unrestricted) and Master HVACR Restricted (limited to specific specialties such as forced air heating, hydronics, refrigeration, air conditioning, commercial hoods, or gas piping), alongside Journeyman and registered Apprentice classifications.", "license_source": "Delaware Division of Professional Regulation, Board of Plumbing, Heating, Ventilation, Air Conditioning and Refrigeration Examiners, 2024", "bonding_requirement": "For state business registration through the Delaware Division of Revenue, contractors must maintain workers' compensation and unemployment insurance; non-resident contractors must post a surety bond equal to 6% of the contract value for contracts of $20,000 or more (30 Del. C. § 375). Additional bonding is imposed locally by county/city permit authorities, such as a $25,000 surety bond required by New Castle County for Master HVACR contractors.", "bonding_source": "Delaware Code Title 30 Chapter 3 § 375 & Division of Revenue, 2024", "market_size_or_density_note": "Delaware employs approximately 1,990 HVAC & Refrigeration mechanics and installers (SOC 49-9021), representing a location quotient of 1.62 (4.235 jobs per 1,000 total state employment, well above national density). IBISWorld reports around 370 heating and air conditioning contractor establishments in Delaware generating over $500 million in industry market revenue.", "market_source": "U.S. Bureau of Labor Statistics May 2023 OEWS, 2024, https://www.bls.gov/oes/current/oes_de.htm and IBISWorld Heating & Air-Conditioning Contractors in Delaware Industry Report, 2026, https://www.ibisworld.com/united-states/market-research-reports", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 29.11 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Florida", "where": "FL", "median_hourly_wage_usd": 23.66, "wage_differential_vs_national_pct": -17.7, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/2023/may/oes499021.htm", "license_regime": "Florida requires state-level licensing for HVAC contracting under Florida Statutes Chapter 489, regulated by the Florida Department of Business and Professional Regulation (DBPR) Construction Industry Licensing Board (CILB). Licenses exist in two geographic scopes: Certified (statewide operating authority) and Registered (restricted to specific county or municipal jurisdictions where local competency requirements were met). Main contractor license tiers include Class A Air Conditioning Contractor (unlimited system size and cooling/heating capacity), Class B Air Conditioning Contractor (capped at systems up to 25 tons cooling and 500,000 BTU heating per unit), and Mechanical Contractor (unlimited HVAC scope plus broader mechanical systems including medical gas, fuel gas, and commercial refrigeration).", "license_source": "Florida Department of Business and Professional Regulation (DBPR), Construction Industry Licensing Board (CILB), 2024, https://www.myfloridalicense.com", "bonding_requirement": "Florida DBPR CILB requires Division Two specialty contractors (including Class A/B Air Conditioning and Mechanical contractors) to carry minimum general liability insurance of $100,000 public liability and $25,000 property damage, plus mandatory workers' compensation coverage for 1 or more employees. To meet financial responsibility standards, applicants must show a credit report with a FICO score of 660 or higher; applicants with scores below 660 must obtain a financial responsibility surety bond or complete a CILB-approved 14-hour financial responsibility course.", "bonding_source": "Florida Department of Business and Professional Regulation (DBPR), Construction Industry Licensing Board (CILB), 2024, https://www.myfloridalicense.com", "market_size_or_density_note": "Florida ranks #1 in the United States in total employment for Heating, Air Conditioning, and Refrigeration Mechanics and Installers (BLS SOC 49-9021), employing 37,370 workers as of May 2023. The state has an employment density of 3.91 HVAC jobs per 1,000 overall jobs and a location quotient of 1.49, representing a 49% higher concentration of HVAC mechanics than the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/2023/may/oes499021.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 23.66 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Georgia", "where": "GA", "median_hourly_wage_usd": 27.11, "wage_differential_vs_national_pct": -5.7, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), 2025, https://www.bls.gov/oes/current/oes499021.htm", "license_regime": "A state-level license is required in Georgia to perform or contract conditioned air work under O.C.G.A. § 43-14. Licenses are issued by the Georgia State Construction Industry Licensing Board, Division of Conditioned Air Contractors. Two tiers exist: Class I (Restricted), which limits work to systems not exceeding 175,000 BTU heating and 60,000 BTU cooling (requires 4 years of documented experience), and Class II (Unrestricted), which has no BTU or capacity limitations (requires 5 years of experience, including commercial system installation).", "license_source": "Georgia State Construction Industry Licensing Board - Division of Conditioned Air Contractors, 2024, https://sos.ga.gov/georgia-state-construction-industry-licensing-board-division-conditioned-air-contractors", "bonding_requirement": "Under O.C.G.A. § 43-14-12(b)(2), contractors may voluntarily execute and deposit a $10,000 code compliance bond with the probate court judge in their primary county of business, which exempts them from additional local municipality or county code compliance bond requirements. State licensing law does not mandate a minimum general liability insurance threshold to hold the state license, though workers' compensation coverage is required by state law (O.C.G.A. § 34-9-2) for employers with 3 or more employees.", "bonding_source": "Official Code of Georgia Annotated (O.C.G.A. § 43-14-12), 2024, https://law.justia.com/codes/georgia/2024/title-43/chapter-14/section-43-14-12", "market_size_or_density_note": "Georgia employs approximately 12,290 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with a location quotient of 0.95 relative to the national average. The Atlanta-Sandy Springs-Roswell metropolitan area accounts for 6,610 workers in this trade.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), 2025, https://www.bls.gov/oes/current/oes_ga.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 27.11 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Hawaii", "where": "HI", "median_hourly_wage_usd": 32.53, "wage_differential_vs_national_pct": 13.15, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) OEWS, May 2023 OEWS State Occupational Employment and Wage Estimates, https://www.bls.gov/oes/current/oes_hi.htm", "license_regime": "State-level license required. Hawaii regulates contractors at the state level through the Department of Commerce and Consumer Affairs (DCCA), Professional and Vocational Licensing Division (PVL), Contractors License Board under Hawaii Revised Statutes (HRS) Chapter 444 for projects exceeding $1,500. HVAC and Refrigeration trade tiers fall under Class C Specialty Contractor licenses, specifically C-52 (Ventilating and Air Conditioning Contractor) and C-40 (Refrigeration Contractor). Qualifications require 4 years of supervisory trade experience within the past 10 years and passing business/law and trade examinations.", "license_source": "Hawaii DCCA Professional and Vocational Licensing Division, Contractors License Board, 2024, https://cca.hawaii.gov/pvl/boards/contractor", "bonding_requirement": "Surety bond is required as determined by the Contractors License Board, with a statutory minimum of $5,000 per HRS § 444-16.5. Minimum liability insurance coverage requires $100,000 per person / $300,000 per accident for bodily injury and $50,000 per accident for property damage, along with mandatory Workers' Compensation insurance if employing workers.", "bonding_source": "Hawaii Revised Statutes Chapter 444 (HRS § 444-11.1 and § 444-16.5), Hawaii DCCA PVL Contractors License Board, 2024, https://cca.hawaii.gov/pvl/boards/contractor", "market_size_or_density_note": "Hawaii employed an estimated 810 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) statewide in May 2023, representing a location quotient of 0.50 relative to the US national average density.", "market_source": "U.S. Bureau of Labor Statistics (BLS) OEWS, May 2023 OEWS State Occupational Employment and Wage Estimates, https://www.bls.gov/oes/current/oes_hi.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 32.53 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Idaho", "where": "ID", "median_hourly_wage_usd": 22.84, "wage_differential_vs_national_pct": -20.56, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) May 2023 OEWS, https://www.bls.gov/oes/current/oes_id.htm", "license_regime": "Statewide licensing is required in Idaho and governed uniformly at the state level by the Idaho Division of Occupational and Professional Licenses (DOPL) HVAC Board. License tiers include HVAC Apprentice, HVAC Journeyman, HVAC Specialty Journeyman, HVAC Specialty Contractor, and HVAC Contractor.", "license_source": "Idaho Division of Occupational and Professional Licenses (DOPL), 2024, https://dopl.idaho.gov", "bonding_requirement": "State law requires HVAC contractors and specialty contractors to procure and maintain a $2,000 contractor compliance surety bond. Registered contractors must also carry general liability insurance of at least $300,000 single limit (including completed operations coverage) and maintain workers' compensation insurance if they have employees.", "bonding_source": "Idaho Division of Occupational and Professional Licenses (DOPL) / Idaho Code § 54-5007 and § 54-5213, 2024, https://dopl.idaho.gov", "market_size_or_density_note": "According to May 2023 BLS OEWS data, Idaho employed 3,280 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021). The state boasts an employment density of 3.99 jobs per 1,000 total jobs and a location quotient of 1.52, reflecting a 52% higher concentration of HVAC technicians than the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) OEWS May 2023, 2024, https://www.bls.gov/oes/current/oes_id.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 22.84 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Illinois", "where": "IL", "median_hourly_wage_usd": 31.21, "wage_differential_vs_national_pct": 8.56, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 State Occupational Employment and Wage Estimates: Illinois, https://www.bls.gov/oes/current/oes_il.htm", "license_regime": "Illinois does not offer or require a statewide HVAC contractor or technician license; trade licensing and contractor registration are regulated at the local municipal and county level (e.g., City of Chicago), while EPA Section 608 certification is required for refrigerant handling.", "license_source": "Illinois Department of Financial and Professional Regulation (IDFPR), 2026, https://www.idfpr.illinois.gov", "bonding_requirement": "No statewide surety bond or insurance minimums exist specifically for HVAC contractors due to the absence of a statewide HVAC licensing board; bond and insurance minimums are set locally by individual municipalities (e.g., $5,000 to $10,000 municipal bonds) or required under the Illinois Public Construction Bond Act (30 ILCS 550) for public works projects over $50,000.", "bonding_source": "Illinois General Assembly, Public Construction Bond Act (30 ILCS 550), 2024, https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=542", "market_size_or_density_note": "The Heating & Air-Conditioning Contractors industry in Illinois is estimated at $6.1 billion in revenue in 2026 according to IBISWorld, with 10,380 HVAC mechanics and installers employed across the state according to BLS May 2023 OEWS data.", "market_source": "IBISWorld, Heating & Air-Conditioning Contractors in Illinois Industry Report, 2026, https://www.ibisworld.com/united-states/market-research-reports", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 31.21 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Indiana", "where": "IN", "median_hourly_wage_usd": 28.54, "wage_differential_vs_national_pct": -0.73, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_in.htm", "license_regime": "Indiana does not issue or mandate a statewide license for HVAC contractors or technicians; regulatory authority is deferred to local municipalities (e.g., Indianapolis/Marion County, Fort Wayne, Muncie). License tiers are defined locally where required; for instance, Indianapolis offers Unrestricted Air Conditioning Class A, Restricted Air Conditioning Class B, Restricted Air Conditioning Class D, Refrigeration, and High-Pressure Steam licenses.", "license_source": "Indiana Professional Licensing Agency (IPLA), 2026, https://www.in.gov/pla/ and City of Indianapolis Department of Business and Neighborhood Services, 2023, https://www.indy.gov/agency/department-of-business-and-neighborhood-services", "bonding_requirement": "There are no statewide surety bond or general liability insurance requirements in Indiana for HVAC contractors; insurance and bonding minimums are set by local municipal jurisdictions (e.g., $5,000 surety bond and $500,000 general liability insurance in Indianapolis and Muncie).", "bonding_source": "City of Indianapolis Department of Business and Neighborhood Services, 2023, https://www.indy.gov/agency/department-of-business-and-neighborhood-services and City of Muncie Building Commissioner, 2024", "market_size_or_density_note": "According to May 2023 BLS OEWS data, Indiana had an estimated total employment of 8,550 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a density of 2.709 jobs per 1,000 total state employment and a location quotient of 1.03.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_in.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 28.54 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Iowa", "where": "IA", "median_hourly_wage_usd": 28.37, "wage_differential_vs_national_pct": -1.32, "median_wage_source": "BLS state OEWS, May 2023, https://www.bls.gov/oes/current/oes_ia.htm", "license_regime": "Statewide licensing is required in Iowa through the Department of Inspections, Appeals, and Licensing (DIAL) Plumbing and Mechanical Systems Board (PMSB). Tiers include Apprentice, Service Technician HVAC Specialty, Journeyperson, Master, and Contractor.", "license_source": "Iowa Department of Inspections, Appeals, and Licensing (DIAL) Plumbing and Mechanical Systems Board, 2026", "bonding_requirement": "Plumbing and mechanical contractors must hold a minimum $5,000 surety bond and maintain $500,000 in public liability insurance (with 10-day cancellation notice to the board), plus statutory workers' compensation insurance if employing staff. Out-of-state contractors must post a $25,000 surety bond with DIAL.", "bonding_source": "Iowa Department of Inspections, Appeals, and Licensing (DIAL) Plumbing and Mechanical Systems Board, 2026", "market_size_or_density_note": "The Heating & Air-Conditioning Contractors industry in Iowa encompasses approximately 1,161 establishment locations and employs 7,519 workers.", "market_source": "IBISWorld, Heating & Air-Conditioning Contractors in Iowa Industry Report, 2026, https://www.ibisworld.com/united-states/market-research-reports", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 28.37 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Kansas", "where": "KS", "median_hourly_wage_usd": 24.87, "wage_differential_vs_national_pct": -13.5, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ks.htm", "license_regime": "Kansas does not issue or require a statewide HVAC contractor or trade license. Licensing and permitting are decentralized and administered at the municipal or county level pursuant to K.S.A. 12-1540 et seq. Local jurisdictions (such as Wichita/Sedgwick County, Topeka, and Kansas City) establish their own licensing requirements, which generally follow a four-tier structure: Apprentice, Journeyman Mechanical, Master Mechanical, and Mechanical Contractor.", "license_source": "Kansas Office of Revisor of Statutes, K.S.A. 12-1542 (Rules and regulations relating to licensure and examination of HVAC contractors and mechanics), 2023, https://www.ksrevisor.gov/statutes/chapters/ch12/012_015_0042.html", "bonding_requirement": "Because Kansas has no statewide licensing board, there are no state-level bond or general liability insurance minimums for resident HVAC contractors; insurance and bonding requirements are set by individual cities or counties (e.g., Sedgwick County MABCD requires $300,000 in general liability insurance). However, non-resident contractors performing work in Kansas are required by state statute (K.S.A. 79-1008) to post a tax surety bond ($1,000 minimum) with the Kansas Department of Revenue.", "bonding_source": "Kansas Office of Revisor of Statutes, K.S.A. 79-1008 (Nonresident contractors tax bond), 2023, https://www.ksrevisor.gov/statutes/chapters/ch79/079_010_0008.html", "market_size_or_density_note": "As of May 2023, Kansas had an estimated 3,690 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a employment density of 2.614 per 1,000 jobs and a location quotient of 1.00.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ks.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 24.87 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Kentucky", "where": "KY", "median_hourly_wage_usd": 24.3, "wage_differential_vs_national_pct": -15.48, "median_wage_source": "U.S. Bureau of Labor Statistics OEWS, May 2023, https://www.bls.gov/oes/current/oes_ky.htm", "license_regime": "Statewide licensing is required in Kentucky for HVAC professionals, administered by the Kentucky Department of Housing, Buildings and Construction (DHBC) - Division of HVAC. License tiers consist of Apprentice (registration required), Journeyman HVAC Mechanic, and Master HVAC Contractor.", "license_source": "Kentucky Department of Housing, Buildings and Construction (815 KAR 8:010), 2024, https://dhbc.ky.gov", "bonding_requirement": "No state-level surety bond is required by DHBC. Master HVAC Contractors must maintain general liability insurance of at least $500,000 general liability and $300,000 property damage coverage, plus Workers' Compensation insurance if employing workers.", "bonding_source": "Kentucky Department of Housing, Buildings and Construction (KRS 198B.668 / 815 KAR 8:010), 2024, https://dhbc.ky.gov", "market_size_or_density_note": "As of May 2023, Kentucky employed 6,500 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with a location quotient of 1.26, representing a higher concentration of trade workers than the national average.", "market_source": "U.S. Bureau of Labor Statistics OEWS, May 2023, https://www.bls.gov/oes/current/oes_ky.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 24.3 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Louisiana", "where": "LA", "median_hourly_wage_usd": 25.8, "wage_differential_vs_national_pct": -10.26, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_la.htm", "license_regime": "State-level licensing is required in Louisiana through the Louisiana State Licensing Board for Contractors (LSLBC). A state Mechanical Contractor License is required for mechanical/HVAC projects valued over $10,000 (labor and materials) for commercial work or over $50,000 for residential work. Tiers/classifications include Mechanical Work with subclassification categories such as Heating, Air Conditioning, Ventilation, Duct Work and Refrigeration.", "license_source": "Louisiana State Licensing Board for Contractors (LSLBC), 2024, https://www.lslbc.gov", "bonding_requirement": "LSLBC requires residential applicants/licensees to maintain at least $100,000 in General Liability insurance coverage and maintain proof of Workers' Compensation insurance. Applicants who cannot demonstrate a minimum net worth of $10,000 must secure a surety bond or letter of credit.", "bonding_source": "Louisiana State Licensing Board for Contractors (LSLBC), 2024, https://www.lslbc.gov", "market_size_or_density_note": "According to BLS OEWS data, Louisiana had 4,830 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with a location quotient of 1.00 and an employment density of 2.611 jobs per 1,000 total state jobs.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_la.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 25.8 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Maine", "where": "ME", "median_hourly_wage_usd": 27.48, "wage_differential_vs_national_pct": -4.42, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_me.htm", "license_regime": "State-level trade licensing is required in Maine for heating and fuel HVAC technicians, administered by the Maine Fuel Board within the Office of Professional and Occupational Regulation (OPOR), Department of Professional and Financial Regulation (DPFR). License tiers include Apprentice Oil Burner and/or Solid Fuel Technician, Journeyman Oil Burner and/or Solid Fuel Technician, Master Oil Burner and/or Solid Fuel Technician, Propane and Natural Gas Technicians/Helpers, and Limited specialty licenses. Handling refrigerants also requires federal EPA Section 608 certification.", "license_source": "Maine Office of Professional and Occupational Regulation (OPOR) - Maine Fuel Board, 2024", "bonding_requirement": "The Maine Fuel Board does not mandate a state surety bond or general liability insurance to hold an individual trade license. However, Maine law requires any employer with one or more employees to carry Workers' Compensation insurance (Maine Title 39-A, § 105-A), and local municipalities or general contractors may require general liability coverage or surety bonding for local permitting or contract execution.", "bonding_source": "Maine Office of Professional and Occupational Regulation (OPOR) - Maine Fuel Board / Maine Department of Professional and Financial Regulation, 2024", "market_size_or_density_note": "Maine employs approximately 2,080 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with a location quotient of 1.28, representing a 28% higher concentration of HVAC mechanics than the national baseline. In addition, Maine accounts for 860 private plumbing, heating, and air-conditioning contractor establishments (NAICS 23822) employing 5,392 workers statewide.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) & Quarterly Census of Employment and Wages (QCEW), 2023-2024, https://www.bls.gov/oes/current/oes_me.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 27.48 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Maryland", "where": "MD", "median_hourly_wage_usd": 30.09, "wage_differential_vs_national_pct": 4.66, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_md.htm", "license_regime": "A state-level license is required in Maryland to perform HVACR services, issued by the Maryland Board of HVACR Contractors under the Maryland Department of Labor. Local jurisdictions issue local permits for work but do not issue separate local HVAC trade licenses. License tiers include Apprentice, Journeyman, Restricted Journeyman, Limited Contractor, Master Restricted, and Master Contractor.", "license_source": "Maryland Board of Heating, Ventilation, Air Conditioning and Refrigeration Contractors, Maryland Department of Labor, 2024, https://www.labor.maryland.gov/license/hvacr", "bonding_requirement": "Master, Master Restricted, and Limited Contractor licensees must carry a minimum of $300,000 in general liability insurance and $100,000 in property damage liability insurance (a combined minimum liability coverage of $400,000).", "bonding_source": "Maryland Board of Heating, Ventilation, Air Conditioning and Refrigeration Contractors, Maryland Department of Labor, 2024", "market_size_or_density_note": "According to May 2023 BLS OEWS data, Maryland employs 6,700 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an employment density of 2.501 per 1,000 jobs in the state.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_md.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 30.09 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Massachusetts", "where": "MA", "median_hourly_wage_usd": 35.43, "wage_differential_vs_national_pct": 23.23, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ma.htm", "license_regime": "Massachusetts requires state-level licensing for specific component trades of HVAC rather than a single unified statewide HVAC contractor license. Work on refrigeration systems with 10 tons or greater capacity requires a Refrigeration license issued by the Office of Public Safety and Inspections (Bureau of Pipefitters, Refrigeration Technicians, and Sprinkler Fitters) with Apprentice, Journeyman Refrigeration Technician, and Master Refrigeration Contractor tiers. Ductwork and HVAC sheet metal work require a Sheet Metal Worker license issued by the Board of Examiners of Sheet Metal Workers (Apprentice, Journeyperson, and Master tiers). Piping for gas-fired equipment requires a Gas Fitter license from the Board of State Examiners of Plumbers and Gas Fitters. Permits are issued locally by city and town building departments.", "license_source": "Massachusetts Division of Occupational Licensure (DOL), Office of Public Safety and Inspections, 2024, https://www.mass.gov/orgs/bureau-of-pipefitters-refrigeration-technicians-and-sprinkler-fitters", "bonding_requirement": "Massachusetts does not mandate a state-level surety bond to hold an individual trade license. However, M.G.L. c. 112 § 247 requires licensed Sheet Metal Workers to maintain current liability insurance (or equivalent indemnity bond/coverage accepted by the inspector) to pull municipal permits. In addition, M.G.L. c. 152 requires workers' compensation insurance for any contracting business with employees.", "bonding_source": "Massachusetts General Laws Chapter 112 Section 247, 2024, https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXVI/Chapter112/Section247", "market_size_or_density_note": "Massachusetts employs 7,410 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an occupational density of 2.033 jobs per 1,000 state jobs and a location quotient of 0.78 relative to the U.S. national baseline.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ma.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 35.43 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Michigan", "where": "MI", "median_hourly_wage_usd": 24.55, "wage_differential_vs_national_pct": -14.61, "median_wage_source": "U.S. Bureau of Labor Statistics OEWS, May 2023, https://www.bls.gov/oes/current/oes_mi.htm", "license_regime": "State-level license required. Michigan regulates HVAC/R work through a statewide Mechanical Contractor License issued under Article 8 of the Skilled Trades Regulation Act (Public Act 407 of 2016, MCL 339.5801 et seq.) by the Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes. Local municipalities are statutorily prohibited from maintaining local licensing requirements. License categories include Mechanical Contractor (with work classifications for HVAC Equipment, Ductwork, Unlimited/Limited Heating Service, Unlimited/Limited Refrigeration & Air Conditioning Service, Hydronic Heating & Cooling, Fire Suppression, and Specialty) and Mechanic Trainee registration.", "license_source": "Michigan Department of Licensing and Regulatory Affairs (LARA) Bureau of Construction Codes, 2024", "bonding_requirement": "Michigan state law does not mandate a statewide surety bond or general liability insurance minimum as a prerequisite for holding a Mechanical Contractor License under Public Act 407 of 2016. However, contractors must register their state license with local enforcing agencies, which may require general liability insurance or local municipal bonding prior to issuing mechanical permits.", "bonding_source": "Michigan Legislature, Skilled Trades Regulation Act (Act 407 of 2016, MCL 339.5801-339.5819), 2024, https://www.legislature.mi.gov/laws/statutes/article?mcl-act-407-of-2016-article-8", "market_size_or_density_note": "According to BLS OEWS May 2023 data, Michigan has an estimated 10,580 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a density of 2.433 jobs per 1,000 total occupations and a location quotient of 0.93 relative to the national average.", "market_source": "U.S. Bureau of Labor Statistics OEWS, May 2023, https://www.bls.gov/oes/current/oes_mi.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 24.55 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Minnesota", "where": "MN", "median_hourly_wage_usd": 31.64, "wage_differential_vs_national_pct": 10.05, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_mn.htm", "license_regime": "Minnesota does not require a statewide HVAC/mechanical contractor or individual technician license. Instead, business entities contracting to perform gas, heating, ventilation, cooling, air conditioning, fuel burning, or refrigeration work must register with the state and post a mechanical bond. Local municipalities (such as cities) may impose local contractor licensing, competency cards ('comp cards'), or permitting requirements.", "license_source": "Minnesota Department of Labor and Industry (DLI), Mechanical Contractor Bond Requirements, 2024", "bonding_requirement": "A $25,000 Mechanical Contractor Surety Bond filed with the Minnesota Department of Labor and Industry (DLI) for a two-year registration cycle with a $100 filing fee (Minn. Stat. § 326B.197).", "bonding_source": "Minnesota Office of the Revisor of Statutes, Minnesota Statutes Section 326B.197, 2023, https://www.revisor.mn.gov/statutes/cite/326B.197", "market_size_or_density_note": "According to BLS OEWS data, Minnesota employed approximately 4,600 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) in May 2023.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_mn.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 31.64 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Mississippi", "where": "MS", "median_hourly_wage_usd": 22.09, "wage_differential_vs_national_pct": -23.17, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS State Occupational Employment and Wage Estimates, https://www.bls.gov/oes/current/oes_ms.htm", "license_regime": "State-level licensure is required in Mississippi by the Mississippi State Board of Contractors (MSBOC) for HVAC work meeting statutory project value thresholds. Commercial HVAC work valued at $50,000 or more (or specialty subcontracts over $10,000) requires a commercial contractor license with a Mechanical or HVAC classification. Residential HVAC remodeling work valued at $10,000 or more, or new residential construction over $50,000, requires a state residential contractor or subcontractor license. Projects below these thresholds are governed by local municipal and county licensing and permitting rules.", "license_source": "Mississippi State Board of Contractors (MSBOC), 2024, https://www.msboc.us", "bonding_requirement": "Commercial license applicants must carry general liability insurance with minimum coverage of $300,000 per occurrence and $600,000 aggregate. Residential license holders must provide proof of general liability insurance (no state statutory minimum amount). Workers' compensation insurance is required for businesses with 5 or more employees. Surety bonds are not universally mandated for all state license holders but may be required for specific municipal permits or public works projects.", "bonding_source": "Mississippi State Board of Contractors (MSBOC), 2024, https://www.msboc.us", "market_size_or_density_note": "Mississippi has 2,890 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an occupational density of 2.513 per 1,000 total jobs in the state and a location quotient of 0.96.", "market_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS State Occupational Employment and Wage Estimates, https://www.bls.gov/oes/current/oes_ms.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 22.09 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Missouri", "where": "MO", "median_hourly_wage_usd": 27.82, "wage_differential_vs_national_pct": -3.23, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) State Occupational Employment and Wage Estimates (OEWS), May 2023, https://www.bls.gov/oes/current/oes499021.htm", "license_regime": "Missouri does not require or issue a statewide license for HVAC contractors or technicians. Licensing is decentralized and regulated at the local city or county level (such as Kansas City or St. Louis County), in addition to federal EPA Section 608 certification for handling refrigerants.", "license_source": "Missouri Division of Professional Registration, 2024, https://pr.mo.gov", "bonding_requirement": "Because Missouri does not issue a statewide HVAC contractor license, there are no state-level surety bond or general liability insurance minimums; coverage requirements are set locally by individual cities and counties.", "bonding_source": "Missouri Division of Professional Registration, 2024, https://pr.mo.gov", "market_size_or_density_note": "The Heating & Air-Conditioning Contractors industry in Missouri represents $3.0 billion in market size across 2,001 businesses in 2026 according to IBISWorld. U.S. BLS OEWS reports 8,840 HVAC mechanics and installers employed in the state as of May 2023.", "market_source": "IBISWorld, 'Heating & Air-Conditioning Contractors in Missouri Industry Report', 2026, https://www.ibisworld.com/united-states/market-research-reports", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 27.82 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Montana", "where": "MT", "median_hourly_wage_usd": 24.95, "wage_differential_vs_national_pct": -13.22, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) OEWS, May 2023 State Occupational Employment and Wage Estimates - Montana, published April 2024, https://www.bls.gov/oes/current/oes_mt.htm", "license_regime": "Montana Department of Labor and Industry requires construction contractors with employees to use its construction contractor program. Beginning January 1, 2026, the registration program began transitioning to a construction contractor license program. Eligible workers without employees may instead use an Independent Contractor Exemption Certificate. HVAC trade and permit requirements can also apply locally.", "license_source": "Montana Department of Labor and Industry, Construction Contractor Registration and Independent Contractor Exemption Certificates, 2026, https://erd.dli.mt.gov/work-comp-regulations/montana-contractor/construction-contractor-registration and https://erd.dli.mt.gov/work-comp-regulations/montana-contractor/independent-contractor", "bonding_requirement": "Montana does not enforce a statewide surety bond requirement for HVAC contractors (state-level bonds are required only for water well diggers). However, registered Construction Contractors with employees must carry state-mandated Workers' Compensation insurance, and commercial project owners standardly require $1,000,000 in General Liability coverage. Municipalities may require local surety bonds for specific mechanical work, such as Missoula's $3,000 gas fitting contractor bond.", "bonding_source": "Montana Contractor Authority / Performance Surety Bonds, 2024", "market_size_or_density_note": "BLS OEWS data (May 2023) reports 1,340 employed HVAC and refrigeration mechanics and installers (SOC 49-9021) in Montana, representing 2.678 per 1,000 jobs and a location quotient of 1.02. For the broader industry (NAICS 23822: Plumbing, Heating, and Air-Conditioning Contractors), BLS QCEW (2024) records 808 private establishments employing 5,270 workers statewide.", "market_source": "U.S. Bureau of Labor Statistics (BLS) QCEW / SMB Density, 2024, https://smbdensity.org", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 24.95 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Nebraska", "where": "NE", "median_hourly_wage_usd": 26.57, "wage_differential_vs_national_pct": -7.58, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ne.htm", "license_regime": "Nebraska does not issue or require a statewide HVAC trade license. Instead, the Nebraska Department of Labor (NDOL) requires contractor registration under the Nebraska Contractor Registration Act for businesses performing work on real property. Trade-specific HVAC/mechanical licensing, examinations, and credential tiers (master, journeyman) are regulated at the local municipal level (e.g., City of Omaha, City of Lincoln). EPA Section 608 certification is required federally for handling refrigerants.", "license_source": "Nebraska Department of Labor, Contractor Registration, 2024", "bonding_requirement": "Statewide contractor registration requires proof of general liability insurance and Workers' Compensation insurance (for employers with 1+ employees). Surety bonds are not required statewide for general contractor registration, but municipal licensing boards mandate local bonds and insurance (e.g., City of Omaha requires HVAC contractors to hold a $10,000 surety bond and $300,000 general liability insurance; City of Lincoln requires $500,000 general liability per occurrence).", "bonding_source": "Nebraska Department of Labor / City of Omaha Planning Department, 2024", "market_size_or_density_note": "Nebraska employed 3,440 HVAC mechanics and installers (SOC 49-9021) as of May 2023, with 3.432 HVAC technicians per 1,000 jobs and a Location Quotient (LQ) of 1.31, representing a 31% higher concentration of HVAC technicians relative to the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ne.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 26.57 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Nevada", "where": "NV", "median_hourly_wage_usd": 28.19, "wage_differential_vs_national_pct": -1.95, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/2023/may/oes_nv.htm", "license_regime": "State-level contractor license is required in Nevada for HVAC & Refrigeration work valued at $1,000 or more in labor and materials. Licenses are issued at the state level by the Nevada State Contractors Board (NSCB) under NRS Chapter 624. The primary trade license is Specialty Classification C-21 (Refrigeration and Air Conditioning), which encompasses seven subclassifications: C-21a (Refrigeration), C-21b (Air Conditioning), C-21c (Sheet Metal), C-21d (Maintenance), C-21e (Solar Air Conditioning), C-21f (Chilled and Hot Water Systems), and C-21g (Industrial Piping). Local jurisdictions require general business permits but do not issue separate trade licenses.", "license_source": "Nevada State Contractors Board (NSCB) / Nevada Administrative Code § 624.380, 2023, https://www.leg.state.nv.us/NAC/NAC-624.html#NAC624Sec380", "bonding_requirement": "Nevada requires all licensed contractors to post a surety bond or cash deposit. The bond amount is fixed by the NSCB upon license approval and ranges from $1,000 to $500,000 based on the contractor's monetary license limit, trade classification, financial standing, and experience. Contractors must also maintain workers' compensation insurance (if employing staff) and submit financial statements to establish license limits.", "bonding_source": "Nevada State Contractors Board (NSCB) License Bond Requirements, 2024", "market_size_or_density_note": "As of May 2023, Nevada had 4,560 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a concentration density of 3.077 HVAC mechanics per 1,000 jobs state-wide.", "market_source": "U.S. Bureau of Labor Statistics (BLS) OEWS State Occupational Employment and Wage Estimates Nevada, May 2023, https://www.bls.gov/oes/2023/may/oes_nv.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 28.19 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "New Hampshire", "where": "NH", "median_hourly_wage_usd": 29.42, "wage_differential_vs_national_pct": 2.33, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/2023/may/oes_nh.htm and https://www.bls.gov/oes/2023/may/oes499021.htm", "license_regime": "New Hampshire requires state-level licensing for fuel gas fitting and mechanical business entities through the Board of Mechanical Safety and Licensing under the Office of Professional Licensure and Certification (OPLC) (RSA 153:27-38). Personal license tiers for fuel gas include Trainee, Fuel Gas Piping Installer, Fuel Gas Installation Technician, and Fuel Gas Service Technician, along with Mechanical Business Entity licensure. General HVAC work that does not involve fuel gas fitting is not licensed at the state level and is governed by local municipal rules, though a voluntary state certification exists for oil heating technicians.", "license_source": "New Hampshire Office of Professional Licensure and Certification (OPLC), Board of Mechanical Safety and Licensing, 2024, https://www.oplc.nh.gov/mechanical-safety-and-licensing-board", "bonding_requirement": "State law (NH RSA 153:29-a) requires Mechanical Business Entities to provide proof of general liability insurance and proof of good standing with the Secretary of State. The state mechanical board does not mandate a state-level surety bond minimum to hold an individual or business entity license, though municipal permitting authorities or public works projects may impose local bonding and insurance mandates.", "bonding_source": "New Hampshire General Court / OPLC Board of Mechanical Safety and Licensing, NH RSA 153:29-a, 2025, https://www.oplc.nh.gov/mechanical-safety-and-licensing-board", "market_size_or_density_note": "New Hampshire employs approximately 1,990 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an occupational density of 2.945 per 1,000 jobs and a location quotient of 1.13 relative to the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/2023/may/oes_nh.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 29.42 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "New Jersey", "where": "NJ", "median_hourly_wage_usd": 29.78, "wage_differential_vs_national_pct": 3.58, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_nj.htm", "license_regime": "A state-level license is required to engage in HVACR contracting in New Jersey. The primary contracting credential is the Master HVACR Contractor License issued by the State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration (HVACR) Contractors under the New Jersey Division of Consumer Affairs. Municipalities do not issue separate trade licenses, though local permits are required for specific jobs.", "license_source": "New Jersey Division of Consumer Affairs, State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration (HVACR) Contractors, 2024, https://www.njconsumeraffairs.gov/hvacr", "bonding_requirement": "Licensed Master HVACR Contractors are required to maintain a $3,000 surety bond filed with the Board (N.J.A.C. 13:32A-2.4) and carry commercial general liability insurance of at least $500,000 for combined property damage and bodily injury.", "bonding_source": "New Jersey Administrative Code N.J.A.C. 13:32A-2.4 / NJ Division of Consumer Affairs State Board of Examiners of HVACR Contractors, 2024, https://www.njconsumeraffairs.gov/hvacr", "market_size_or_density_note": "New Jersey has 10,360 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an employment density of 2.466 per 1,000 jobs and a location quotient of 0.94 relative to the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_nj.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 29.78 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "New Mexico", "where": "NM", "median_hourly_wage_usd": 22.24, "wage_differential_vs_national_pct": -22.64, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) OEWS, May 2023, https://www.bls.gov/oes/current/oes_nm.htm", "license_regime": "State-level contractor licensing is mandatory in New Mexico, governed by the Regulation and Licensing Department (RLD) Construction Industries Division (CID) under the Construction Industries Licensing Act (NMSA 1978, Chapter 60, Article 13). Local municipal licenses do not override state certification. Licensing tiers include individual Journeyman Certificates of Competence (requiring 2 years / 4,000 hours experience) and Contractor Licenses (requiring a Qualifying Party with at least 4 years / 8,000 hours experience). Contractor trade classifications include MM-3 (Heating, Ventilation, and Air Conditioning), MM-2 (Natural Gas Fitting), MM-4 (Heating, Cooling, and Process Piping), and MM-98 (Mechanical Contractor, covering all MM categories plus plumbing).", "license_source": "New Mexico Regulation and Licensing Department (RLD) Construction Industries Division (CID), 2024, https://www.rld.nm.gov/boards-and-commissions/individual-boards-and-commissions/construction-industries", "bonding_requirement": "All contractors licensed under the Construction Industries Division must post and maintain a $10,000 consumer protection / code compliance surety bond (Code Bond) per NMSA 1978 § 60-13-49 and 14.6.3 NMAC. Contractors must also provide proof of workers' compensation insurance coverage and registration with the New Mexico Taxation and Revenue Department.", "bonding_source": "New Mexico Administrative Code (14.6.3 NMAC) / NMSA 1978 § 60-13-49, 2022", "market_size_or_density_note": "As of 2026, IBISWorld reports 737 Heating & Air-Conditioning Contractor businesses operating in New Mexico. Additionally, BLS OEWS May 2023 data estimates state employment for HVAC & Refrigeration Mechanics and Installers (SOC 49-9021) at 1,770 workers.", "market_source": "IBISWorld, 2026, https://www.ibisworld.com/united-states/market-research-reports/ ; U.S. Bureau of Labor Statistics (BLS) OEWS, May 2023, https://www.bls.gov/oes/current/oes_nm.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 22.24 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "New York", "where": "NY", "median_hourly_wage_usd": 30.94, "wage_differential_vs_national_pct": 7.62, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023 (published April 2024), https://www.bls.gov/oes/current/oes_ny.htm", "license_regime": "New York State does not issue a universal statewide HVAC contractor license. Licensing authority is delegated to individual cities and counties (e.g., NYC Department of Buildings, Nassau County, Suffolk County, Westchester County, Buffalo). EPA Section 608 certification is mandated federally for refrigerant handling.", "license_source": "New York Department of State (DOS) & NYC Department of Buildings (DOB), 2024, https://www.nyc.gov/site/buildings/index.page", "bonding_requirement": "No statewide surety bond or insurance minimum exists due to municipal licensing delegation; individual cities and counties set local requirements (e.g., NYC DOB requires contractor registration along with general liability and workers' compensation insurance).", "bonding_source": "NYC Department of Buildings (DOB), 2024", "market_size_or_density_note": "New York State employs 22,700 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing an occupational density of 2.417 jobs per 1,000 total statewide jobs.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023 (published April 2024), https://www.bls.gov/oes/current/oes_ny.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 30.94 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "North Carolina", "where": "NC", "median_hourly_wage_usd": 24.33, "wage_differential_vs_national_pct": -15.37, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 State Occupational Employment and Wage Estimates, North Carolina (April 2024), https://www.bls.gov/oes/current/oes_nc.htm", "license_regime": "State-level licensure is mandatory in North Carolina. Heating and HVAC contracting is licensed state-wide by the North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors under N.C.G.S. Chapter 87, Article 2, with license classifications including Heating Group 1 (H1 - unlimited), Heating Group 2 (H2 - commercial), Heating Group 3 (H3 - residential single-family), and technician sublicenses. Refrigeration contracting is licensed by a separate state agency, the North Carolina State Board of Refrigeration Contractors, under N.C.G.S. § 87-52.", "license_source": "North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors and NC State Board of Refrigeration Contractors (2024), https://nclicensing.org and https://refrigerationboard.org", "bonding_requirement": "Neither state trade board mandates a baseline surety bond or general liability insurance minimum as a prerequisite for state license issuance. However, surety bonds are required by certain municipalities for local permitting (e.g., $2,500 in Winston-Salem), performance and payment bonds are required for public contracts exceeding $300,000 under NC Little Miller Act (N.C.G.S. § 44A-26), and state law requires workers' compensation insurance for employers with 3 or more employees.", "bonding_source": "North Carolina General Statutes Chapter 87, Article 2 & Chapter 44A, Article 3 (2024), https://www.ncleg.gov/Laws/GeneralStatutes", "market_size_or_density_note": "North Carolina employed 13,320 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing an occupational density of 2.78 jobs per 1,000 total state jobs and a location quotient of 1.06.", "market_source": "U.S. Bureau of Labor Statistics, May 2023 State Occupational Employment and Wage Estimates, North Carolina (April 2024), https://www.bls.gov/oes/current/oes_nc.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 24.33 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "North Dakota", "where": "ND", "median_hourly_wage_usd": 30.3, "wage_differential_vs_national_pct": 5.39, "median_wage_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_nd.htm", "license_regime": "North Dakota does not issue a specific statewide HVAC trade license. However, any contractor undertaking HVAC installation or repair projects valued at more than $4,000 must obtain a State Contractor's License from the North Dakota Secretary of State. Licenses are categorized into four monetary tiers: Class A (projects over $500,000), Class B (up to $500,000), Class C (up to $300,000), and Class D (up to $100,000). Individual HVAC technician licensing and trade permits are regulated at the municipal level by individual cities (e.g., Fargo, Bismarck, Minot, Grand Forks).", "license_source": "North Dakota Secretary of State, Contractor Licensing Division (N.D.C.C. Chapter 43-07), 2024", "bonding_requirement": "There is no statewide contractor license bond required by the North Dakota Secretary of State under N.D.C.C. § 43-07-04. However, applicants must present a Certificate of Liability Insurance listing the Secretary of State as certificate holder and maintain Workforce Safety & Insurance (WSI) workers' compensation coverage. Surety bonds may be required at the municipal level (e.g., $5,000 bond in Grand Forks) or for public works contracts exceeding $100,000.", "bonding_source": "North Dakota Secretary of State / N.D.C.C. § 43-07-04, 2024", "market_size_or_density_note": "According to BLS OEWS May 2023 data, North Dakota employs 940 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with an employment location quotient of 0.86. IBISWorld reports 361 Heating & Air-Conditioning Contractor establishments operating in North Dakota in 2026.", "market_source": "U.S. Bureau of Labor Statistics, OEWS May 2023, https://www.bls.gov/oes/current/oes_nd.htm; IBISWorld, Heating & Air-Conditioning Contractors in North Dakota, 2026, https://www.ibisworld.com/united-states/market-research-reports", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 30.3 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Ohio", "where": "OH", "median_hourly_wage_usd": 27.39, "wage_differential_vs_national_pct": -4.73, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) May 2023 State Occupational Employment and Wage Estimates - Ohio ($27.39) vs. National ($27.55), https://www.bls.gov/oes/current/oes_oh.htm and https://www.bls.gov/oes/current/oes499021.htm", "license_regime": "State-level contractor licensing is required for commercial HVAC and Refrigeration work in Ohio through the Ohio Construction Industry Licensing Board (OCILB), operating under Ohio Revised Code Chapter 4740. OCILB issues state contractor licenses for specific categories including Heating, Ventilating, and Air Conditioning (HVAC) Contractor and Refrigeration Contractor. Residential HVAC work is regulated by local municipal building departments, though many cities require an active OCILB state license for local registration and permit issuance.", "license_source": "Ohio Department of Commerce, Ohio Construction Industry Licensing Board (OCILB) (2024), https://com.ohio.gov/divisions-and-programs/industrial-compliance/boards/ohio-construction-industry-licensing-board", "bonding_requirement": "Ohio does not mandate a statewide surety bond for OCILB HVAC or Refrigeration contractor licensing. However, state license holders are required to maintain a minimum of $500,000 in contractor general liability insurance and carry Workers' Compensation coverage through the Ohio Bureau of Workers' Compensation (BWC). In addition, local municipalities frequently require surety bonds (typically ranging from $5,000 to $25,000) for local contractor registration.", "bonding_source": "Ohio Revised Code Chapter 4740 / Ohio Construction Industry Licensing Board (OCILB) (2024), https://codes.ohio.gov/ohio-revised-code/chapter-4740 and https://com.ohio.gov/divisions-and-programs/industrial-compliance/boards/ohio-construction-industry-licensing-board", "market_size_or_density_note": "According to BLS OEWS May 2023 data, Ohio employs 14,450 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing an occupational density of 2.641 per 1,000 jobs and a location quotient of 1.01.", "market_source": "U.S. Bureau of Labor Statistics (BLS) May 2023 State Occupational Employment and Wage Estimates - Ohio, https://www.bls.gov/oes/current/oes_oh.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 27.39 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Oklahoma", "where": "OK", "median_hourly_wage_usd": 23.45, "wage_differential_vs_national_pct": -18.43, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS, https://www.bls.gov/oes/2023/may/oes_ok.htm", "license_regime": "A state-level license is required to perform mechanical and HVAC/R work in Oklahoma under the Mechanical Licensing Act (59 O.S. § 1850.1 et seq.), enforced by the Oklahoma Construction Industries Board (CIB). Local municipalities require registration but accept the state trade license. Licensing tiers comprise Apprentice, Journeyman, and Contractor, with specific category classifications such as HVAC/R Limited, HVAC/R Unlimited, Refrigeration, Natural Gas, Process Piping, and Sheet Metal.", "license_source": "Oklahoma Construction Industries Board, 2024", "bonding_requirement": "An Active Mechanical Contractor is required to maintain a continuous $5,000 corporate surety bond payable to the Oklahoma Construction Industries Board and carry a minimum of $50,000 in commercial general liability insurance.", "bonding_source": "Oklahoma Construction Industries Board, 2024", "market_size_or_density_note": "Oklahoma employs 5,680 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) statewide, representing a density of 3.416 jobs per 1,000 total state employment.", "market_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS, https://www.bls.gov/oes/2023/may/oes_ok.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 23.45 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Oregon", "where": "OR", "median_hourly_wage_usd": 29.73, "wage_differential_vs_national_pct": 3.41, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 State Occupational Employment and Wage Estimates - Oregon and National Estimates for SOC 49-9021 (2024), https://www.bls.gov/oes/current/oes_or.htm and https://www.bls.gov/oes/current/oes499021.htm", "license_regime": "State-level licensing is required in Oregon. HVAC and refrigeration contractors must be licensed through the Oregon Construction Contractors Board (CCB) rather than local municipalities. Classifications and endorsements are divided into Residential (General Contractor, Specialty Contractor, Limited Contractor) and Commercial (Level 1 General/Specialty and Level 2 General/Specialty). Tradespeople performing specific electrical or mechanical connections may also require specialized trade certifications through the Oregon Building Codes Division (BCD), and technicians handling refrigerants must hold EPA Section 608 certification.", "license_source": "Oregon Construction Contractors Board (CCB) (2024), https://www.oregon.gov/ccb/Pages/index.aspx", "bonding_requirement": "CCB license holders must maintain a surety bond and general liability insurance based on endorsement tier: Residential Specialty Contractors require a minimum $20,000 surety bond and $500,000 general liability insurance per occurrence; Residential General Contractors require a $25,000 bond; Commercial Specialty Level 1 requires $55,000 bond / $500,000 GL; Commercial General Level 1 requires $80,000 bond / $2,000,000 GL. Workers' compensation insurance is required if the business employs workers.", "bonding_source": "Oregon Construction Contractors Board (CCB), Bonds and Insurance Requirements / ORS 701.081 & 701.084 (2024)", "market_size_or_density_note": "According to BLS OEWS data, Oregon had an estimated 3,960 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a job density of approximately 2.038 positions per 1,000 total jobs in the state.", "market_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS State Occupational Employment and Wage Estimates - Oregon (2024), https://www.bls.gov/oes/current/oes_or.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 29.73 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Pennsylvania", "where": "PA", "median_hourly_wage_usd": 28, "wage_differential_vs_national_pct": -2.61, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023 (published April 2024), https://www.bls.gov/oes/current/oes_pa.htm", "license_regime": "Pennsylvania does not mandate or issue a statewide HVAC trade license for technicians or contractors. HVAC trade licensing and permitting are regulated at the local municipal level (e.g., Philadelphia, Pittsburgh). At the state level, under the Home Improvement Consumer Protection Act (HICPA), any contractor performing residential home improvement work (including HVAC) exceeding $5,000 annually must register as a Home Improvement Contractor with the Pennsylvania Office of Attorney General. Additionally, federal EPA Section 608 certification is required for technicians handling refrigerants.", "license_source": "Pennsylvania Office of Attorney General, Home Improvement Consumer Protection Act (HICPA), 2024", "bonding_requirement": "To maintain state Home Improvement Contractor (HIC) registration, contractors must carry minimum Commercial General Liability insurance of $50,000 per occurrence for personal injury and $50,000 for property damage. There is no statewide surety bond requirement under HICPA, though individual municipalities (e.g., Philadelphia, Pittsburgh) may enforce higher liability or municipal bond requirements.", "bonding_source": "Pennsylvania Office of Attorney General, Home Improvement Contractor Registration System, 2024", "market_size_or_density_note": "Pennsylvania had 18,980 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 1.22 (22% higher employment concentration than the national average).", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023 (published April 2024), https://www.bls.gov/oes/current/oes_pa.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 28 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Rhode Island", "where": "RI", "median_hourly_wage_usd": 29.93, "wage_differential_vs_national_pct": 4.1, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ri.htm", "license_regime": "State-level licensing is required in Rhode Island. Individual tradespeople are licensed through the Rhode Island Department of Labor and Training (RIDLT) Division of Professional Regulation under R.I. Gen. Laws § 28-27. Tiers exist across three mechanical trade categories (Refrigeration/Air Conditioning, Pipefitter, and Sheet Metal), with license levels including Apprentice, Journeyperson (Class I unlimited and Class II limited), Master Contractor (Class I and Class II), and Master Mechanical Contractor. In addition, HVAC contracting business entities must register with the Rhode Island Contractors' Registration and Licensing Board (RICRLB).", "license_source": "Rhode Island Department of Labor and Training (RIDLT) Division of Professional Regulation / Rhode Island General Laws Chapter 28-27, 2024, https://dlt.ri.gov", "bonding_requirement": "Individual trade licenses carry no state surety bond or liability insurance requirements. However, HVAC contractor businesses registered with the Rhode Island Contractors' Registration and Licensing Board (RICRLB) must maintain a minimum of $500,000 in General Liability Insurance naming RICRLB as certificate holder, along with statutory Workers' Compensation insurance if employing workers. There is no general state surety bond requirement for standard HVAC contractor registration.", "bonding_source": "Rhode Island Contractors' Registration and Licensing Board (RICRLB), 2026, https://crb.ri.gov", "market_size_or_density_note": "According to BLS OEWS data, Rhode Island employed an estimated 1,180 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, with an occupational location quotient of 0.92 relative to national employment density.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ri.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 29.93 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "South Carolina", "where": "SC", "median_hourly_wage_usd": 24, "wage_differential_vs_national_pct": -16.52, "median_wage_source": "U.S. Bureau of Labor Statistics, May 2023 State Occupational Employment and Wage Estimates: South Carolina, 2024, https://www.bls.gov/oes/current/oes_sc.htm", "license_regime": "State-level licensing is required in South Carolina. HVAC trade work is regulated by the South Carolina Department of Labor, Licensing and Regulation (LLR). Residential HVAC installations and repairs exceeding $200 are regulated by the South Carolina Residential Builders Commission under the Residential Specialty Contractor (HVAC) license. Commercial HVAC work exceeding $10,000 is regulated by the South Carolina Contractor's Licensing Board under the Mechanical Contractor license (HVAC classification), structured into 5 tier groups based on project limits: Group 1 (up to $35,000), Group 2 (up to $100,000), Group 3 (up to $200,000), Group 4 (up to $400,000), and Group 5 (unlimited capacity).", "license_source": "South Carolina Department of Labor, Licensing and Regulation (LLR) Contractor's Licensing Board and Residential Builders Commission, 2024, https://llr.sc.gov", "bonding_requirement": "Licensed Residential Specialty HVAC Contractors undertaking projects costing $5,000 or more must post a minimum $10,000 surety bond with the Residential Builders Commission. For Commercial Mechanical Contractors (HVAC), surety bonds or financial statement qualifications are required based on tier group: Group 1 ($7,000 bond), Group 2 ($15,000 bond), Group 3 ($30,000 bond), Group 4 ($60,000 bond), and Group 5 ($300,000 bond). General liability insurance minimums are $100,000 per occurrence for residential specialty contractors and $300,000 per occurrence for mechanical contractors.", "bonding_source": "South Carolina Department of Labor, Licensing and Regulation (LLR) / S.C. Code Ann. § 40-59-220(D), 2024", "market_size_or_density_note": "According to the May 2023 BLS OEWS, South Carolina employs 6,360 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing an occupational density of 2.861 jobs per 1,000 total jobs (Location Quotient 1.09, slightly above national average concentration). BLS QCEW data indicates 1,826 private Plumbing, Heating, and AC Contractor establishments (NAICS 23822) in South Carolina in 2024.", "market_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS State Occupational Employment Estimates & 2024 QCEW Data, 2024, https://www.bls.gov/oes/current/oes_sc.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 24 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "South Dakota", "where": "SD", "median_hourly_wage_usd": 26.2, "wage_differential_vs_national_pct": -8.87, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_sd.htm", "license_regime": "South Dakota does not require a state-level HVAC contractor or technician license. Licensing and mechanical contractor registrations are governed locally at the municipal or county level (e.g., Sioux Falls and Rapid City). State requirements for contractors doing installation work are limited to obtaining a South Dakota Contractor's Excise Tax License from the Department of Revenue, and technicians handling refrigerants must hold federal EPA Section 608 certification.", "license_source": "South Dakota Department of Revenue / South Dakota Department of Labor and Regulation, 2024, https://dor.sd.gov/businesses/taxes/contractors-excise-tax", "bonding_requirement": "There is no statewide surety bond or liability insurance mandate specifically for HVAC contractors in South Dakota statute. Insurance and bonding thresholds are set by local jurisdictions (e.g., the City of Sioux Falls requires a $10,000 contractor compliance bond and $1,000,000 general aggregate liability insurance for mechanical contractors).", "bonding_source": "City of Sioux Falls Building Services, 2024", "market_size_or_density_note": "According to the U.S. Bureau of Labor Statistics OEWS (May 2023), South Dakota employs an estimated 1,120 HVAC mechanics and installers (SOC 49-9021), with an occupational location quotient of 0.96 relative to national employment density.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_sd.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 26.2 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Tennessee", "where": "TN", "median_hourly_wage_usd": 23.1, "wage_differential_vs_national_pct": -19.65, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 OEWS, https://www.bls.gov/oes/current/oes_tn.htm and https://www.bls.gov/oes/current/oes499021.htm", "license_regime": "In Tennessee, a state-level contractor license is required by the Board for Licensing Contractors for HVAC/Refrigeration projects valued at $25,000 or more (labor and materials combined). License classifications include CMC-C (Mechanical - HVAC/Refrigeration) and CMC (Full Mechanical, covering HVAC, plumbing, and fire protection). For projects under $25,000, state contractor licensing is not required, but local municipal/county trade licenses, permits, or limited electrician licenses may apply.", "license_source": "Tennessee Department of Commerce and Insurance, Board for Licensing Contractors, 2026, https://www.tn.gov/commerce/regboards/contractors.html", "bonding_requirement": "State HVAC contractors must maintain General Liability insurance based on their requested monetary limit: $100,000 for monetary limits up to $500,000; $500,000 for limits from $500,001 to $1.5 million; and $1,000,000 for limits over $1.5 million. Workers' compensation coverage is also required. Surety bonds are required if financial statements do not meet working capital/net worth standards ($500,000 for limits up to $3M; $1M for higher limits), or as an alternative to CPA financial statements (surety bond equal to 50% of requested monetary limit).", "bonding_source": "Tennessee Department of Commerce and Insurance, Board for Licensing Contractors - Insurance and Bond Requirements, 2026", "market_size_or_density_note": "According to the BLS OEWS May 2023 report, Tennessee employs 9,880 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a job density of 3.071 per 1,000 total jobs and a location quotient of 1.17 relative to the U.S. national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 OEWS State Occupational Employment and Wage Estimates - Tennessee, 2024, https://www.bls.gov/oes/current/oes_tn.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 23.1 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Texas", "where": "TX", "median_hourly_wage_usd": 24.13, "wage_differential_vs_national_pct": -16.07, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_tx.htm", "license_regime": "State-level licensing is required in Texas. The Texas Department of Licensing and Regulation (TDLR) regulates Air Conditioning and Refrigeration (ACR) Contractors under Texas Occupations Code Chapter 1302. License tiers include Class A (unlimited equipment capacity) and Class B (limited to cooling systems of 25 tons or less and heating systems of 1.5 million BTU/hr or less), with endorsements available in Environmental Air Conditioning, Commercial Refrigeration, and Process Cooling/Heating.", "license_source": "Texas Department of Licensing and Regulation (TDLR), 2024, https://www.tdlr.texas.gov/acr/acr.htm", "bonding_requirement": "State-level surety bonds are not required by TDLR, though local municipalities may impose local bonding requirements. TDLR mandates continuous Commercial General Liability (CGL) insurance coverage: Class A licensees must carry $300,000 per occurrence, $600,000 aggregate, and $300,000 aggregate for products and completed operations. Class B licensees must carry $100,000 per occurrence, $200,000 aggregate, and $100,000 aggregate for products and completed operations.", "bonding_source": "Texas Department of Licensing and Regulation (TDLR) / 16 Texas Administrative Code § 75.40, 2024", "market_size_or_density_note": "Texas employed 31,910 HVAC and refrigeration mechanics and installers (SOC 49-9021) as of May 2023, representing a density of 2.354 jobs per 1,000 total jobs in the state and a location quotient of 0.90 relative to the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_tx.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 24.13 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Utah", "where": "UT", "median_hourly_wage_usd": 23.97, "wage_differential_vs_national_pct": -16.63, "median_wage_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ut.htm", "license_regime": "Utah requires statewide licensing through the Utah Division of Professional Licensing (DOPL) under the Utah Construction Trades Licensing Act (Title 58, Chapter 55). HVAC contractors are licensed under specialty classifications, historically S350 (HVAC Contractor) transitioning to H100 (HVAC Contractor), requiring a qualifier who meets experience, exam, and pre-licensure course criteria. EPA Section 608 certification is required for refrigerant handling.", "license_source": "Utah Division of Professional Licensing (DOPL), 2026, https://dopl.utah.gov", "bonding_requirement": "DOPL requires general liability insurance with statutory minimums of $1,000,000 per occurrence and $2,000,000 aggregate, along with mandatory workers' compensation coverage for contractors with employees. While a blanket surety bond is not mandatory for all applicants, DOPL requires a contractor license bond (typically $15,000 to $50,000) based on financial responsibility reviews.", "bonding_source": "Utah Administrative Code R156-55a (Utah Division of Professional Licensing), 2026, https://adminrules.utah.gov", "market_size_or_density_note": "Utah employs approximately 5,620 HVAC and refrigeration mechanics and installers (SOC 49-9021), with an employment density of 3.347 per 1,000 jobs and a location quotient of 1.28, reflecting a trade concentration 28% higher than the national baseline.", "market_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_ut.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 23.97 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Vermont", "where": "VT", "median_hourly_wage_usd": 27.32, "wage_differential_vs_national_pct": -4.97, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_vt.htm", "license_regime": "Vermont does not issue a single unified HVAC contractor license at the state level. Instead, the Vermont Department of Public Safety Division of Fire Safety licenses individuals as Electrical Specialists (ES) for specific HVAC duties: Specialty A1 for Automatic Gas/Oil Heating and Specialty C3 for Refrigeration and Air Conditioning. Additionally, residential contractors performing work valued at $10,000 or more must register with the Vermont Office of Professional Regulation (OPR).", "license_source": "Vermont Department of Public Safety Division of Fire Safety, 2024, https://firesafety.vermont.gov/licensing", "bonding_requirement": "There is no statewide surety bond requirement for HVAC specialists in Vermont. However, residential contractors required to register with the Office of Professional Regulation must carry minimum general liability insurance of $1,000,000 per occurrence and $2,000,000 aggregate.", "bonding_source": "Vermont Secretary of State Office of Professional Regulation, 2024", "market_size_or_density_note": "Vermont employed 1,160 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) in May 2023, with an employment density (location quotient) of 1.47, indicating a 47% higher concentration of HVAC technicians relative to the national average.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_vt.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 27.32 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Virginia", "where": "VA", "median_hourly_wage_usd": 27.94, "wage_differential_vs_national_pct": -2.82, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) OEWS, May 2023, https://www.bls.gov/oes/current/oes_va.htm", "license_regime": "State-level contractor licensing is required in Virginia by the Department of Professional and Occupational Regulation (DPOR) Board for Contractors under the Heating, Ventilation, and Air Conditioning (HVA) specialty designation. License tiers include Class C (single project under $10,000; total annual under $150,000), Class B (single project $10,000-$120,000; total annual $150,000-$750,000), and Class A (single project $120,000+; total annual $750,000+). Individual technicians performing work must also hold an HVAC Tradesman license (Journeyman or Master).", "license_source": "Virginia Department of Professional and Occupational Regulation (DPOR) Board for Contractors, 2024, https://www.dpor.virginia.gov/Boards/Contractors", "bonding_requirement": "State-level surety bonding is required only as an alternative proof of financial responsibility for Class A and Class B contractor license applicants who do not meet minimum net worth thresholds ($45,000 net worth for Class A; $15,000 net worth for Class B). The required alternative surety bond amount is $50,000 for both Class A and Class B. Class C licenses have no net worth or surety bond requirements.", "bonding_source": "Virginia Department of Professional and Occupational Regulation (DPOR) Board for Contractors, 18 VAC 50-22, 2024, https://www.dpor.virginia.gov/Boards/Contractors", "market_size_or_density_note": "According to IBISWorld, Virginia's Heating & Air-Conditioning Contractors industry comprises 2,959 businesses and generates $3.6 billion in revenue. BLS OEWS reports 13,540 HVAC mechanics and installers in Virginia with a location quotient of 1.30, indicating a higher employment concentration than the national average.", "market_source": "IBISWorld / U.S. Bureau of Labor Statistics, 2024, https://www.ibisworld.com/united-states/market-research-reports", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 27.94 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Washington", "where": "WA", "median_hourly_wage_usd": 31.17, "wage_differential_vs_national_pct": 8.42, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 State Occupational Employment and Wage Estimates (Washington), https://www.bls.gov/oes/current/oes_wa.htm and May 2023 National Occupational Employment and Wage Estimates, https://www.bls.gov/oes/current/oes499021.htm", "license_regime": "State-level contractor registration and trade licensing are required in Washington. Businesses offering HVAC services must register as a Specialty Contractor (or General Contractor) with the Washington State Department of Labor & Industries (L&I). Technicians performing electrical work on HVAC systems must obtain a specialty electrician license through L&I, including 06A Specialty Electrician HVAC/R (unrestricted voltage/phase, requiring 4,000 experience hours) or 06B Specialty Electrician HVAC/R Restricted (up to 240V/120A single-phase, requiring 2,000 experience hours), or maintain an Electrical Trainee certificate under supervision. Local municipalities (e.g., Seattle, Spokane) may also require city gas piping or mechanical licenses.", "license_source": "Washington State Department of Labor & Industries (L&I), 2024, https://www.lni.wa.gov/licensing-permits/contractors/register-as-a-contractor/ and", "bonding_requirement": "Specialty contractors must post a $15,000 continuous contractor surety bond (or assignment of savings) under RCW 18.27.040 (increased from $6,000 as of July 1, 2024; General Contractors require $30,000). Contractors must also maintain general liability insurance with coverage of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit, as well as state workers' compensation coverage if employing workers.", "bonding_source": "Washington State Department of Labor & Industries (L&I), RCW 18.27.040, 2024, https://www.lni.wa.gov/licensing-permits/contractors/register-as-a-contractor", "market_size_or_density_note": "According to BLS OEWS estimates, Washington employed 8,140 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) in May 2023, representing 2.328 jobs per 1,000 total state employment and a location quotient of 0.89.", "market_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 State Occupational Employment and Wage Estimates (Washington), https://www.bls.gov/oes/current/oes_wa.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 31.17 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "West Virginia", "where": "WV", "median_hourly_wage_usd": 22.16, "wage_differential_vs_national_pct": -22.92, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_wv.htm", "license_regime": "Statewide licensing is required in West Virginia. The West Virginia Division of Labor certifies individual technicians across three tiers: Technician-in-Training (Apprentice), HVAC Residential Technician, and HVAC Technician (requiring 2,000 hours of experience/training and passing the ProV trade exam). Additionally, businesses executing HVAC contracting projects exceeding $2,500 (residential) or $5,000 (commercial) must hold a Heating, Ventilating and Cooling Contractor License issued by the West Virginia Contractor Licensing Board.", "license_source": "West Virginia Division of Labor / West Virginia Contractor Licensing Board, 2024", "bonding_requirement": "HVAC contractors performing commercial work with employees must post a West Virginia Wage Bond equal to four weeks of gross payroll plus 15% for fringe benefits (administered by the Division of Labor Wage and Hour Section) unless exempt by operating in state for at least 5 years or meeting asset thresholds. Contractors must also maintain Workers' Compensation Insurance, Unemployment Compensation coverage, and General Liability Insurance.", "bonding_source": "West Virginia Contractor Licensing Board / West Virginia Division of Labor, 2024", "market_size_or_density_note": "According to the U.S. Bureau of Labor Statistics May 2023 OEWS data, West Virginia employs 1,940 HVAC and refrigeration mechanics and installers (SOC 49-9021), representing a job density of 2.819 per 1,000 jobs and a location quotient of 1.08.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_wv.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 22.16 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "citation-text-only", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Wisconsin", "where": "WI", "median_hourly_wage_usd": 28.62, "wage_differential_vs_national_pct": -0.45, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_wi.htm", "license_regime": "Wisconsin does not issue a mandatory individual statewide trade license for HVAC technicians; instead, the Wisconsin Department of Safety and Professional Services (DSPS) requires an HVAC Contractor Registration (Wis. Admin. Code SPS 305.70) for businesses installing or servicing HVAC equipment. Individuals may voluntarily earn an HVAC Qualifier Certification (Wis. Admin. Code SPS 305.71) by meeting 4 years of education/experience requirements and passing a state examination, which exempts the business from local municipal licensing under Wis. Stat. § 101.178(3)(c). For 1-2 family residential projects, contractors must also hold a Dwelling Contractor credential paired with a Dwelling Contractor Qualifier.", "license_source": "Wisconsin Department of Safety and Professional Services (DSPS), 2024, https://dsps.wi.gov/Pages/Professions/HVACQualifier/Default.aspx", "bonding_requirement": "For general state HVAC Contractor registration, employers must comply with mandatory Workers' Compensation insurance (Wis. Stat. § 102.28). For contractors obtaining a Dwelling Contractor credential to pull 1-2 family residential permits, DSPS mandates proof of financial responsibility through either a minimum $25,000 surety bond or $250,000 general liability insurance per occurrence (a restricted license tier allows bonds between $5,000 and $25,000).", "bonding_source": "Wisconsin Department of Safety and Professional Services (DSPS), 2024, https://dsps.wi.gov/Pages/Professions/DwellingContractor/Default.aspx", "market_size_or_density_note": "IBISWorld reports that the Heating & Air-Conditioning Contractors industry in Wisconsin reached $2.9 billion in market revenue in 2026. According to the U.S. Bureau of Labor Statistics, there are 6,190 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) in Wisconsin as of May 2023.", "market_source": "IBISWorld, Heating & Air-Conditioning Contractors in Wisconsin Industry Report, 2026, https://www.ibisworld.com/united-states/market-research-reports/ and U.S. Bureau of Labor Statistics (BLS) OEWS, May 2023, https://www.bls.gov/oes/current/oes_wi.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 28.62 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "url", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" }, { "name": "Wyoming", "where": "WY", "median_hourly_wage_usd": 25.44, "wage_differential_vs_national_pct": -11.51, "median_wage_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_wy.htm", "license_regime": "Wyoming does not mandate a statewide HVAC or refrigeration contractor/technician license. Licensing is managed locally at the municipal or county level (e.g., Cheyenne, Casper, Gillette, Laramie), which typically offer apprentice, journeyman, and master license tiers along with local contractor permits. Federal EPA Section 608 certification is required for refrigerant handling.", "license_source": "Wyoming Business Council / City of Cheyenne Compliance Department, 2024", "bonding_requirement": "There are no statewide surety bond or liability insurance requirements for HVAC contractors due to local regulation. Minimums are set by local municipalities (e.g., Casper requires $100,000 personal injury and $300,000 property damage liability insurance; Gillette requires $300,000 per occurrence / $600,000 aggregate liability insurance and a $5,000 surety bond).", "bonding_source": "City of Casper Community Development Department, 2024, https://www.casperwy.gov", "market_size_or_density_note": "According to the May 2023 BLS OEWS data, Wyoming employed 650 HVAC and refrigeration mechanics and installers (SOC 49-9021), representing an employment density of 2.371 jobs per 1,000 total jobs in the state and a location quotient of 0.91.", "market_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_wy.htm", "wage_differential_vs_national_pct_basis": "Computed as (state median hourly wage 25.44 minus the national median 28.75) / 28.75. The national figure is the one published on this trade's page.", "wage_differential_vs_national_pct_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_wage_source_access": "url", "license_source_access": "citation-text-only", "bonding_source_access": "url", "market_source_access": "url", "wage_differential_vs_national_pct_source_access": "url" } ], "msas": [ { "name": "Atlanta", "where": "GA", "contractor_density_note": "In the Atlanta-Sandy Springs-Roswell, GA metropolitan statistical area, there were 6,610 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 0.90 and an annual mean wage of $57,650.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_job_value_usd": 7508, "job_value_source": "Angi, How Much Does HVAC Replacement Cost in Atlanta, GA?, 2026, https://www.angi.com", "permit_volume_trend": "Residential building permit activity across the 11-county Atlanta region decreased 21% in 2023 to 28,595 permits (a drop of nearly 7,500 permits compared to 2022). Construction activity stabilized and rebounded through 2024-2026, with the region recording steady month-over-month gains up to 2,289 total units permitted in March 2026.", "permit_source": "Atlanta Regional Commission (ARC) / U.S. Census Bureau Building Permits Survey, 2026, https://atlantaregional.com", "market_context_note": "Mechanical permits are mandatory for HVAC replacements across metro Atlanta counties (Fulton, DeKalb, Cobb, Gwinnett), with fees typically ranging from $100 to $400 per installation (and mechanical base permits starting at $150 in the City of Atlanta). Demand is anchored by ASHRAE Climate Zone 3A high summer humidity and local energy efficiency rebate programs.", "market_context_source": "HVAC Project Cost, Georgia HVAC Replacement Costs, 2026, https://www.hvacprojectcost.com", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Austin", "where": "TX", "contractor_density_note": "In May 2023, the Austin-Round Rock, TX MSA employed approximately 2,860 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with an occupational location quotient of 0.89 relative to the national average and a mean hourly wage of $26.92.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2023, https://www.bls.gov/oes/current/oes_12420.htm", "median_job_value_usd": 7358, "job_value_source": "Angi, 2026 Austin HVAC Replacement Cost Guide, https://www.angi.com", "permit_volume_trend": "Residential building permit volume in the Austin-Round Rock-Georgetown MSA declined from a peak of 50,772 permitted housing units in 2021 down to 38,773 units in 2023, representing a decrease of approximately 23.6% as regional homebuilding moderated from post-pandemic highs.", "permit_source": "U.S. Census Bureau, Building Permits Survey (via Rice University Kinder Institute for Urban Research), 2024, https://www.census.gov/construction/bps", "market_context_note": "Nonfarm payroll jobs in the Austin-Round Rock MSA grew by 1.9% (6,600 jobs) in 2024, with sustained population growth and Central Texas summer cooling requirements driving ongoing demand for commercial and residential HVAC service and equipment replacement cycles.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD User), Comprehensive Housing Market Analysis: Austin-Round Rock-Georgetown TX, 2024, https://www.huduser.gov", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Baltimore", "where": "MD", "contractor_density_note": "In the Baltimore-Columbia-Towson, MD Metropolitan Statistical Area, there are 3,060 Heating, Air Conditioning, and Refrigeration Mechanics and Installers employed, representing a density of 2.344 jobs per 1,000 total jobs in the metro (location quotient of 0.90).", "density_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_12580.htm", "median_job_value_usd": 7838, "job_value_source": "Angi, 2026, https://www.angi.com/articles/hvac-replacement-cost-baltimore-md.htm", "permit_volume_trend": "Total new residential units permitted in the Baltimore region fell 10.4% year-over-year to 5,775 units in 2025, while the value of residential alterations, additions, and repairs (AAR) grew 5.1% to $796.6 million.", "permit_source": "Baltimore Metropolitan Council (BMC) Annual Building Activity Report, 2025, https://www.baltometro.org/development/building-permit-data", "market_context_note": "Baltimore's older housing stock, dominated by 19th- and early 20th-century row houses often lacking original ductwork, creates strong demand for ductless mini-split retrofits and heat pump conversions, supported by utility rebates of up to $500 through the BGE Smart Energy Savers program.", "market_context_source": "HVAC Project Cost Report, 2026", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Birmingham", "where": "AL", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics May 2023 Occupational Employment and Wage Statistics, there are 1,760 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed in the Birmingham-Hoover, AL MSA, representing 3.45 workers per 1,000 jobs and a location quotient of 1.32.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates (Birmingham-Hoover, AL), 2024, https://www.bls.gov/oes/current/oes_13820.htm", "permit_volume_trend": "According to the U.S. Census Bureau Building Permits Survey, residential construction activity in the Birmingham-Hoover, AL MSA reached 4,384 total units over the trailing 12-month period (3.71 permits per 1,000 residents), reflecting a 59.7% year-over-year increase in permit volume, led by single-family developments in Jefferson and Shelby counties.", "permit_source": "U.S. Census Bureau, Building Permits Survey, 2024, https://www.census.gov/construction/bps", "market_context_note": "According to the Environmental Entrepreneurs (E2) Energy Efficiency America 2020 report, the Birmingham-Hoover, AL MSA supported 5,102 energy efficiency jobs, with traditional and high-efficiency HVAC equipment and services accounting for the majority of installation and wholesale trade employment in the region.", "market_context_source": "Environmental Entrepreneurs (E2), Energy Efficiency America 2020 Report, 2020", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Boston", "where": "MA", "contractor_density_note": "The Boston-Cambridge-Newton, MA-NH metropolitan area employs approximately 6,050 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021).", "density_source": "U.S. Bureau of Labor Statistics, May 2025 Occupational Employment and Wage Statistics, https://www.bls.gov/oes/current/oes499021.htm", "median_job_value_usd": 8123, "job_value_source": "Angi, 2026 HVAC Replacement Cost Guide for Boston, MA, https://www.angi.com", "permit_volume_trend": "Residential building permits in Greater Boston have dropped significantly from 15,019 units authorized in 2021 to under 9,000 units in 2024, with Boston proper recording 2,219 permitted units in 2024, its lowest annual permit volume since 2012.", "permit_source": "Boston Indicators / U.S. Census Bureau Building Permit Survey, 2025 Greater Boston Housing Report Card Preview, https://www.bostonindicators.org", "market_context_note": "Greater Boston created over 71,000 net new residential housing units between April 2020 and July 2025, maintaining strong baseline mechanical installation and retrofit demand, though declining permit totals signal a slowdown in upcoming new construction activity.", "market_context_source": "The Boston Foundation / U.S. Census Bureau Address Count Listing Files, 2025 Greater Boston Housing Report Card, https://www.tbf.org", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Buffalo", "where": "NY", "contractor_density_note": "According to the Bureau of Labor Statistics OEWS (May 2023), the Buffalo-Cheektowaga-Niagara Falls, NY MSA had 1,050 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 0.76 and a mean hourly wage of $28.18.", "density_source": "U.S. Bureau of Labor Statistics, OEWS, 2023, https://www.bls.gov/oes/current/oes_15380.htm", "permit_volume_trend": "According to HUD's Comprehensive Housing Market Analysis, residential building permit activity in the Buffalo-Cheektowaga-Niagara Falls MSA reached 2,659 units for the 12 months ending July 2024, up from 2,558 units in the 12 months ending July 2023 and 2,101 units in full-year 2023.", "permit_source": "U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Market Analysis: Buffalo-Cheektowaga-Niagara Falls, NY, 2024, https://www.huduser.gov/portal/ushmc/chma_archive.html", "market_context_note": "HUD forecasts 3-year demand for 2,950 new sales homes and 5,000 new rental units in the Buffalo-Cheektowaga-Niagara Falls MSA, sustaining demand for HVAC and refrigeration systems across residential construction and renovations.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Market Analysis: Buffalo-Cheektowaga-Niagara Falls, NY, 2024, https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Charlotte", "where": "NC", "contractor_density_note": "In the Charlotte-Concord-Gastonia, NC-SC Metropolitan Statistical Area, there are 3,900 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with a location quotient of 1.14, reflecting a trade density 14% higher than the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics, 2023, https://www.bls.gov/oes/current/oes_16740.htm", "median_job_value_usd": 7298, "job_value_source": "Angi, 2026, https://www.angi.com/articles/hvac-replacement-cost-charlotte-nc.htm", "permit_volume_trend": "Residential building permit volume for private housing structures in the Charlotte-Concord-Gastonia MSA experienced a moderate pullback in single-family permitting activity (declining roughly 6.9% statewide in NC) under elevated interest rates, following peak permit issuance levels achieved during 2021-2022.", "permit_source": "U.S. Census Bureau, Building Permits Survey via St. Louis Fed FRED, 2026, https://fred.stlouisfed.org/series/CHAR737BPPRIV", "market_context_note": "HVAC demand in the Charlotte MSA is heavily driven by hot, humid summer climates requiring high moisture-removal capabilities, aging residential housing stock in expanding suburban submarkets, and utility efficiency rebate programs offered by Duke Energy Carolinas.", "market_context_source": "HVAC Project Cost, 2026", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Chicago", "where": "IL", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), the Chicago-Naperville-Elgin, IL-IN-WI metropolitan statistical area employed 7,840 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing an employment density of 1.74 HVAC technicians per 1,000 jobs in the metro area.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates, 2024, https://www.bls.gov/oes/current/oes_16980.htm", "median_job_value_usd": 7770, "job_value_source": "Angi, Furnace and AC Replacement Cost in Chicago, IL, 2026, https://www.angi.com/articles/hvac-replacement-cost-chicago-il.htm", "permit_volume_trend": "New residential building permit volume in the Chicago-Naperville-Elgin MSA dropped from 17,360 authorized units in 2022 to 15,028 authorized units in 2023, representing a year-over-year decline of approximately 13.4%.", "permit_source": "U.S. Census Bureau, Building Permits Survey (reported by Illinois Policy Institute), 2024", "market_context_note": "HVAC labor rates in the Chicago metro area range from $75 to $150 per hour, with local HVAC system replacement costs running 10% to 18% above the Illinois statewide average due to regional union labor rates and municipal mechanical code compliance.", "market_context_source": "HVAC Project Cost, Illinois HVAC Replacement Cost Guide, 2026", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "citation-text-only", "market_context_source_access": "citation-text-only" }, { "name": "Cincinnati", "where": "OH", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics May 2023 Occupational Employment and Wage Statistics (OEWS), the Cincinnati, OH-KY-IN metropolitan area employed approximately 3,400 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a density of 3.145 workers per 1,000 total regional jobs and a location quotient of 1.20.", "density_source": "U.S. Bureau of Labor Statistics, 2023, https://www.bls.gov/oes/current/oes_17140.htm", "permit_volume_trend": "According to HUD's Housing Market Conditions analysis and Census Building Permits Survey data, residential construction permitting in the Cincinnati MSA saw a peak in 2021 with single-family permitting reaching 5,775 units (12-month period ending August 2021). Single-family construction subsequently moderated to 3,925 units for the 12 months ending August 2024 before increasing to 4,250 units for the 12 months ending August 2025, while multi-family permitting stabilized at around 2,525 to 2,650 units annually.", "permit_source": "U.S. Department of Housing and Urban Development (HUD) PD&R, 2026", "market_context_note": "According to the 2024 Economic Impact Report prepared by the University of Cincinnati Economics Center for Allied Construction Industries, commercial construction in the Cincinnati MSA generated $5.6 billion in sales and directly supported 28,417 jobs, with HVAC/R mechanics and installers representing one of the top specialized skilled construction trades in the region.", "market_context_source": "Allied Construction Industries and University of Cincinnati Economics Center, 2024", "density_source_access": "url", "permit_source_access": "citation-text-only", "market_context_source_access": "citation-text-only" }, { "name": "Cleveland", "where": "OH", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics May 2023 OEWS data, the Cleveland-Elyria, OH MSA employs 2,800 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), yielding a location quotient of 1.07 relative to the national employment concentration.", "density_source": "U.S. Bureau of Labor Statistics, 2023, https://www.bls.gov/oes/current/oes_17460.htm", "permit_volume_trend": "Residential building permit activity in the Cleveland-Elyria MSA expanded significantly over recent years, reaching 4,175 total permits over a trailing 12-month period (a 28.6% year-over-year surge). Permitting growth was led by Cuyahoga County (1,601 permits, up 43.2% YoY) and Lorain County (1,183 permits, up 33.4% YoY).", "permit_source": "U.S. Department of Housing and Urban Development, 2023, https://www.huduser.gov/portal/ushmc/chma_archive.html", "market_context_note": "The Cleveland-Elyria metro area is a major regional driver for HVAC and clean energy trade labor, employing over 15,000 energy efficiency workers across residential heating, ventilation, and air conditioning maintenance and commercial system retrofits.", "market_context_source": "E4TheFuture, 2021", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Columbus", "where": "OH", "contractor_density_note": "In the Columbus, OH MSA, there were 2,660 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a density of 2.49 workers per 1,000 total jobs and a location quotient of 0.95 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS), Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_18140.htm", "permit_volume_trend": "Residential building permitting in the Columbus, OH MSA experienced a strong expansion, pulling over 13,700 to 16,000 permits in recent 12-month periods (a YoY surge of over 60%), driven by intense single-family and multifamily construction.", "permit_source": "U.S. Census Bureau, Building Permits Survey / Federal Reserve Bank of St. Louis (FRED), 2025, https://fred.stlouisfed.org/series/COLU139BPPRIVSA", "market_context_note": "The Columbus metro area ranked among the top 10 metropolitan markets nationwide for multifamily residential building permits, supported by regional job growth and major industrial anchors such as Intel's $20 billion Licking County manufacturing complex.", "market_context_source": "RealPage / U.S. Census Bureau, 2025, https://www.realpage.com/analytics/columbus-ranks-among-nations-top-permitting-metros", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Dallas-Fort Worth", "where": "TX", "contractor_density_note": "According to Census Bureau County Business Patterns (CBP) data, there were 1,815 Plumbing, Heating, and Air-Conditioning Contracting establishments (NAICS 238220) in the Dallas-Fort Worth-Arlington, TX MSA. Additionally, BLS OEWS reports 10,060 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed in the metro area with a location quotient of 0.97.", "density_source": "U.S. Bureau of Labor Statistics OEWS (2023) https://www.bls.gov/oes/current/oes_19100.htm and U.S. Census Bureau County Business Patterns (2019 via NCTCOG DBE Methodology Report)", "median_job_value_usd": 9340, "permit_volume_trend": "The Dallas-Fort Worth-Arlington MSA led all U.S. metropolitan areas in residential construction activity, pulling 63,775 building permits over trailing 12-month periods, a 13.2% year-over-year increase and roughly 8.17 permits per 1,000 residents.", "permit_source": "U.S. Census Bureau Building Permits Survey (2024/2025) https://www.census.gov/construction/bps/ and FRED, Federal Reserve Bank of St. Louis (2026) https://fred.stlouisfed.org/series/DALL148BPPRIVSA", "market_context_note": "HVAC mechanics and installers in the Dallas-Fort Worth-Arlington metro earn a mean hourly wage of $27.83 (annual mean $57,890). High summer cooling demands with extended 90°F+ weather stretches and sustained regional population inflow drive high equipment utilization and frequent replacement cycles.", "market_context_source": "U.S. Bureau of Labor Statistics OEWS (2023) https://www.bls.gov/oes/current/oes_19100.htm", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Denver", "where": "CO", "contractor_density_note": "The Denver-Aurora-Lakewood, CO metropolitan statistical area employed 3,870 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with a location quotient of 0.93 relative to the national concentration.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Occupational Employment and Wage Statistics, 2023, https://www.bls.gov/oes/current/oes_19740.htm", "median_job_value_usd": 12305, "job_value_source": "TheFatBook Cost Index, 2026, https://thefatbook.com", "permit_volume_trend": "Residential permitting and building activity in the Denver metro area experienced a slowdown, with for-sale home permitting in Denver County declining 34% to 1,175 units for the 12 months ending August 2023 compared to the prior 12-month period due to rising interest rates and geographical constraints.", "permit_source": "U.S. Department of Housing and Urban Development / U.S. Census Bureau Building Permits Survey, Comprehensive Housing Market Analysis Denver-Aurora-Lakewood, CO, 2023, https://www.huduser.gov/portal/ushmc/chma_archive.html", "market_context_note": "Despite recent construction deceleration, long-term housing demand across the Denver-Aurora-Lakewood MSA remains substantial, with HUD projecting demand for 36,100 new owner-occupied homes and 30,450 rental units between September 2023 and September 2026.", "market_context_source": "U.S. Department of Housing and Urban Development, Comprehensive Housing Market Analysis Denver-Aurora-Lakewood, CO, 2023, https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Detroit", "where": "MI", "contractor_density_note": "The Detroit-Warren-Dearborn, MI metropolitan statistical area employs approximately 4,010 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a labor density of approximately 0.91 HVAC technicians per 1,000 residents.", "density_source": "U.S. Bureau of Labor Statistics, 2023 Metropolitan Occupational Employment and Wage Statistics, https://www.bls.gov/oes/current/oes_19820.htm", "median_job_value_usd": 7400, "job_value_source": "", "permit_volume_trend": "Residential construction permit volume in the Detroit-Warren-Dearborn MSA reached 8,825 total housing units authorized over the trailing 12 months ending May 2026, down slightly by 2.3% compared to the prior 12-month period.", "permit_source": "U.S. Census Bureau Building Permits Survey / PUMSdata, 2026 Metro Building Permits Data", "market_context_note": "HVAC mechanics and installers in Michigan earn a median wage of $60,850 per year ($29.26/hr), with projected long-term trade employment growth of 6% in the Detroit-Warren-Dearborn metro area.", "market_context_source": "U.S. Department of Labor Employment and Training Administration / O*NET OnLine, 2026 Summary Report for Heating, Air Conditioning, and Refrigeration Mechanics and Installers in Michigan, https://www.onetonline.org/link/summary/49-9021.00", "density_source_access": "url", "job_value_source_access": "missing", "permit_source_access": "citation-text-only", "market_context_source_access": "url" }, { "name": "Hartford", "where": "CT", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics May 2023 OEWS data, there were 1,780 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed in the Hartford-West Hartford-East Hartford, CT MSA, representing an employment density of 3.16 per 1,000 total jobs and a location quotient of 1.21.", "density_source": "U.S. Bureau of Labor Statistics, OEWS, 2023, https://www.bls.gov/oes/current/oes_25540.htm", "permit_volume_trend": "Residential building permit activity in the Hartford-West Hartford-East Hartford MSA has fluctuated between 1,000 and 1,500 units annually over recent years. Multifamily permitting experienced a strong upward surge in 2024, reaching 1,488 units (an 89.2% increase year-over-year), with trailing 12-month totals standing at 1,270 permitted units as of mid-2026.", "permit_source": "U.S. Census Bureau, Building Permits Survey, 2024, https://www.census.gov/construction/bps", "market_context_note": "Multifamily residential development represents the primary driver of new residential HVAC installation demand in the Hartford metro area, with multifamily structures accounting for 66.0% of all new housing unit permits in 2024, ranking 4th highest among major U.S. metropolitan areas.", "market_context_source": "Construction Coverage (U.S. Census Bureau Building Permits Survey & ACS data), 2024, https://constructioncoverage.com/research/cities-building-the-most-multi-family-housing", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Houston", "where": "TX", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics May 2023 Occupational Employment and Wage Statistics (OEWS), the Houston-The Woodlands-Sugar Land, TX MSA employed 7,230 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a density of 2.27 HVAC workers per 1,000 jobs in the metro area.", "density_source": "U.S. Bureau of Labor Statistics, 2023, https://www.bls.gov/oes/current/oes_26420.htm", "permit_volume_trend": "U.S. Census Bureau Building Permits Survey data show that the Houston-The Woodlands-Sugar Land MSA led the nation in residential permitting volume in 2023 with 68,755 total units authorized (including 50,444 single-family homes). Although this represented a slight cooling from 75,786 units in 2022, it remained the fifth-highest permitting year since 1988, contributing to a total of 343,779 permitted housing units in the metro between 2019 and 2023.", "permit_source": "U.S. Census Bureau, 2024, https://www.census.gov/construction/bps", "market_context_note": "The U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Market Analysis for the Houston MSA reported nonfarm payroll growth of 126,700 jobs (3.9%) for the 12 months ending September 2023. HUD forecast demand for 134,250 sales units and 63,975 rental units over the 2023-2026 period, sustaining strong regional demand for HVAC installation, replacement, and servicing.", "market_context_source": "U.S. Department of Housing and Urban Development, 2023, https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Indianapolis", "where": "IN", "contractor_density_note": "As of May 2023, the Indianapolis-Carmel-Anderson, IN MSA employed 3,320 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) with a location quotient of 1.17 (17% higher technician density than the national average) and a mean annual wage of $62,020.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_26900.htm", "median_job_value_usd": 4626, "job_value_source": "Angi, 2025 Furnace Replacement Cost Guide for Indianapolis IN, https://www.angi.com/articles/furnace-replacement-cost-indianapolis.htm", "permit_volume_trend": "Construction activity in the Indianapolis metro area has seen an upward trend, reaching 13,042 building permits pulled over the trailing 12-month period, a 26.7% year-over-year increase. Annual Census data recorded 11,463 total permits filed in the metro area valued at $3.98 billion, with single-family housing units accounting for 81.3% (9,322 permits).", "permit_source": "U.S. Census Bureau, Building Permits Survey (retrieved via FRED and STATS Indiana), 2024, https://fred.stlouisfed.org/series/INDI918BPPRIV", "market_context_note": "HVAC and refrigeration demand in the Indianapolis region is supported by severe seasonal climate variations (hot, humid summers and over 80 freeze days per winter) and an active private equity acquisition environment featuring HVAC and plumbing contractor roll-ups along the I-69 corridor.", "market_context_source": "CT Acquisitions, 2026 Indiana HVAC Business Valuation & M&A Report, https://ctacquisitions.com", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Jacksonville", "where": "FL", "contractor_density_note": "According to occupational employment statistics for the Jacksonville, FL Metropolitan Statistical Area, there were 2,950 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed, representing a location quotient of 1.52 (52% higher worker density than the national average).", "density_source": "U.S. Bureau of Labor Statistics, 2023, https://www.bls.gov/oes/current/oes_27260.htm", "permit_volume_trend": "Single-family residential building permits across the Jacksonville metropolitan area (Clay, Duval, Nassau, and St. Johns counties) increased by 6.17% in 2024, with 12,551 permits issued compared to 11,821 in 2023.", "permit_source": "Northeast Florida Builders Association, 2025", "market_context_note": "According to the U.S. Census Bureau's Annual Building Permits Survey, the Jacksonville CBSA ranked among the top 20 metropolitan areas nationwide for residential construction activity, authorizing 15,002 new privately-owned housing units in 2024.", "market_context_source": "U.S. Census Bureau, 2024, https://www.census.gov/construction/bps", "density_source_access": "url", "permit_source_access": "citation-text-only", "market_context_source_access": "url" }, { "name": "Kansas City", "where": "MO", "contractor_density_note": "According to occupational employment data for the Kansas City, MO-KS metropolitan statistical area, there were 3,390 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021). This represents an employment density of approximately 3.15 HVAC technicians per 1,000 jobs in the metro area and a location quotient of 1.20 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS), 2023 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates: Kansas City, MO-KS, https://www.bls.gov/oes/current/oes_28140.htm", "median_job_value_usd": 6938, "job_value_source": "Angi, 2026 HVAC Replacement Cost Guide for Kansas City, MO, https://www.angi.com", "permit_volume_trend": "Residential construction permitting in the Kansas City metro area expanded rapidly, reaching 10,714 permits over the trailing 12 months (4.11 permits per 1,000 residents), representing a 38.3% year-over-year increase. Major activity centers include Jackson County, MO (3,664 permits) and Johnson County, KS (2,956 permits).", "permit_source": "U.S. Census Bureau Building Permits Survey, 2026, https://www.census.gov/construction/bps", "market_context_note": "HVAC and mechanical service demand in the Kansas City metro is reinforced by extreme seasonal climate fluctuations, characterized by hot, humid summers averaging 89°F and freezing winters, alongside multi-family housing expansion in Jackson County and affluent suburban development in Johnson County.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD User), 2024 Comprehensive Housing Market Analysis: Kansas City, MO-KS, https://www.huduser.gov", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Las Vegas", "where": "NV", "contractor_density_note": "As of May 2023, the Las Vegas-Henderson-Paradise, NV metropolitan statistical area employed 3,360 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 1.18 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_29820.htm", "permit_volume_trend": "Residential building permit activity in the Las Vegas-Henderson-Paradise MSA moderated from post-pandemic highs, with overall permitting issuing approximately 11,790 housing units in 2023 (including a ~12% year-over-year decline in single-family permits) as elevated interest rates transitioned the market from tight to balanced.", "permit_source": "U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Market Analysis: Las Vegas-Henderson-Paradise, Nevada, 2024, https://www.huduser.gov/portal/ushmc/chma_archive.html", "market_context_note": "The Las Vegas-Henderson-Paradise metropolitan area reached an estimated population of 2.37 million as of January 1, 2024. Nonfarm payrolls expanded 4.6% (49,600 jobs) in 2023 to 1.13 million, led by leisure, hospitality, and healthcare developments, sustaining strong base demand for residential and commercial mechanical systems.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Market Analysis: Las Vegas-Henderson-Paradise, Nevada, 2024, https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Los Angeles", "where": "CA", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics, the Los Angeles-Long Beach-Anaheim, CA metropolitan statistical area employed 8,440 Heating, Air Conditioning, and Refrigeration Mechanics and Installers, representing a density of 1.36 jobs per 1,000 total jobs in the metro area.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Occupational Employment and Wage Statistics, 2024, https://www.bls.gov/oes/current/oes_31080.htm", "median_job_value_usd": 12165, "job_value_source": "TheFatBook Cost Index, 2026", "permit_volume_trend": "According to the U.S. Census Bureau Building Permits Survey, housing units authorized by building permits in the Los Angeles-Long Beach-Anaheim metro dropped 20.3% from 13,154 units in 2023 down to 10,488 units in 2024.", "permit_source": "U.S. Census Bureau, 2024 Annual Building Permits Survey, 2025, https://www.census.gov/construction/bps", "market_context_note": "HVAC systems and replacements in Los Angeles are subject to California Title 24 energy standards and regulated by the Los Angeles Department of Building and Safety (LADBS), which requires mechanical plan check review for installations with comfort heating or cooling input capacities of 500,000 BTU/h or greater.", "market_context_source": "APEC Engineering, LADBS Mechanical Permit Guide & HVAC Plan Check Requirements, 2026", "density_source_access": "url", "job_value_source_access": "citation-text-only", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Louisville", "where": "KY", "contractor_density_note": "In the Louisville/Jefferson County, KY-IN metropolitan statistical area, there were 2,260 Heating, Air Conditioning, and Refrigeration Mechanics and Installers employed as of May 2023, representing a location quotient of 1.30 and an occupational density of 3.392 workers per 1,000 jobs.", "density_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_31140.htm", "permit_volume_trend": "Residential building permitting in the Louisville/Jefferson County metro area experienced a sharp contraction in 2022 due to rising mortgage rates (declining ~38% in Southern Indiana submarkets), followed by a multi-year recovery in 2023-2024 driven by demand for over 9,300 new sales units and 6,350 rental units, maintaining a rate of approximately 1.13 to 1.7 permitted units per 1,000 residents.", "permit_source": "U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Market Analysis / U.S. Census Bureau Building Permits Survey, 2023, https://www.huduser.gov/portal/ushmc/chma_archive.html", "market_context_note": "Demand for HVAC and refrigeration services in the Louisville metro is anchored by record total nonfarm employment (exceeding 700,000 jobs), significant expansions in healthcare and logistics/warehousing sectors, and persistent demand for new residential construction alongside replacements and upgrades in existing housing stock.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Market Analysis, 2023, https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Memphis", "where": "TN", "contractor_density_note": "As of May 2023, there were 1,620 Heating, Air Conditioning, and Refrigeration Mechanics and Installers employed in the Memphis, TN-MS-AR metropolitan area, representing a concentration of 2.588 workers per 1,000 total jobs (a location quotient of 0.99 relative to national average).", "density_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates - Memphis, TN-MS-AR, 2024, https://www.bls.gov/oes/current/oes_32820.htm", "permit_volume_trend": "Residential building activity in the Memphis MSA shows a soft to stabilizing trend, with approximately 1,200 single-family homes and 1,950 rental units under construction as of mid-2024. Over a 3-year forecast period, market demand is estimated at 10,800 new single-family units and 2,675 rental units across the metro.", "permit_source": "U.S. Department of Housing and Urban Development (HUD User), Comprehensive Housing Market Analysis: Memphis, Tennessee-Mississippi-Arkansas as of June 1, 2024, 2024, https://www.huduser.gov/portal/ushmc/chma_archive.html", "market_context_note": "HVAC mechanics and installers in the Memphis MSA earned a mean hourly wage of $25.16 ($52,330 annually) as of May 2023. Trade demand in the metropolitan area is driven by residential replacement/maintenance alongside massive industrial logistics infrastructure.", "market_context_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates - Memphis, TN-MS-AR, 2024, https://www.bls.gov/oes/current/oes_32820.htm", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Miami", "where": "FL", "contractor_density_note": "In the Miami-Fort Lauderdale-West Palm Beach, FL metropolitan statistical area, there were 9,540 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 1.34 and a density of 3.50 workers per 1,000 total jobs.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes499021.htm", "median_job_value_usd": 7000, "job_value_source": "Modernize Home Services, 2026 Miami Air Conditioning Replacement Cost Guide, https://modernize.com/hvac/florida/miami", "permit_volume_trend": "Residential building permit activity in Miami-Dade County declined in 2024 to 10,608 total new housing units authorized (2,231 single-family and 8,377 multi-family units), down from 12,781 housing units authorized in 2023.", "permit_source": "U.S. Census Bureau, 2024 Building Permits Survey, https://www.census.gov/construction/bps", "market_context_note": "Miami's tropical, high-humidity climate drives near year-round cooling operation and frequent system wear; all mechanical equipment replacements require local mechanical permits governed under the Florida Building Code and Miami-Dade County Implementing Order 4-63.", "market_context_source": "Miami-Dade County Building Department, Implementing Order 4-63 Fee Schedule, 2025", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Milwaukee", "where": "WI", "contractor_density_note": "In the Milwaukee-Waukesha-West Allis, WI MSA, there were 1,810 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed as of May 2023, representing approximately 2.23 positions per 1,000 total jobs and a location quotient of 0.85 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_33340.htm", "permit_volume_trend": "Residential building permit activity in the Milwaukee metropolitan area stagnated and declined slightly in 2022 before remaining roughly flat in 2023 due to elevated mortgage interest rates and rising construction costs. Single-family housing permits in the Milwaukee-Waukesha area declined 11% from a high of 2,075 units in 2021 to 1,850 units in 2022, while multi-family permitting saw a relative increase across Wisconsin (+61.3% in 2021-2023 compared to pre-pandemic 2017-2019 averages).", "permit_source": "Wisconsin Policy Forum, 2024", "market_context_note": "Despite slight total population declines, the Milwaukee MSA added more than 29,000 households (a 4.8% increase) between 2017 and 2022, sustaining baseline demand for residential HVAC replacement, retrofits, and multi-family climate control installations.", "market_context_source": "Wisconsin Policy Forum, 2024", "density_source_access": "url", "permit_source_access": "citation-text-only", "market_context_source_access": "citation-text-only" }, { "name": "Minneapolis-St. Paul", "where": "MN", "contractor_density_note": "In the Minneapolis-St. Paul-Bloomington, MN-WI metropolitan statistical area, there were 2,800 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing an employment concentration of 1.47 jobs per 1,000 total metro jobs.", "density_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_33460.htm", "median_job_value_usd": 7860, "job_value_source": "Angi, 2026, https://www.angi.com/articles/hvac-replacement-cost-minneapolis-mn.htm", "permit_volume_trend": "Residential building permit activity in the Minneapolis-St. Paul-Bloomington metro area experienced a downward trend between 2020 and 2025, with single-month July permits dropping 38% from 1,988 units in July 2020 to 1,241 units in July 2025, driven by a 61% contraction in multifamily permitting.", "permit_source": "U.S. Census Bureau, Building Permits Survey, https://www.census.gov/construction/bps/", "market_context_note": "HVAC demand in the Minneapolis-St. Paul metro area is heavily heating-driven due to 8,000-8,400 annual heating degree days (HDD) and severe sub-zero winter conditions, generating high demand for emergency gas furnace replacements and strict city mechanical permit compliance.", "market_context_source": "Modernize, 2026", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Nashville", "where": "TN", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics, there were 3,480 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed in the Nashville-Davidson--Murfreesboro--Franklin, TN metropolitan statistical area.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/2023/may/oes_34980.htm", "permit_volume_trend": "According to the U.S. Census Bureau's Building Permits Survey, residential construction permit volume in Nashville-Davidson, TN contracted significantly year-over-year, authorizing 6,799 housing units in 2024 down from 11,158 units in 2023 (a decline of 4,359 units or approximately 39%).", "permit_source": "U.S. Census Bureau, Building Permits Survey, 2024, https://www.census.gov/construction/bps", "market_context_note": "The U.S. Department of Housing and Urban Development reported that despite a moderation in new permitting, the Nashville metro area maintains a substantial ongoing residential pipeline, with 22,800 rental units under construction as of early 2024, driving demand for mechanical and HVAC trade installation and maintenance.", "market_context_source": "U.S. Department of Housing and Urban Development, Comprehensive Housing Market Analysis: Nashville-Davidson--Murfreesboro--Franklin, Tennessee, 2024, https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "New Orleans", "where": "LA", "contractor_density_note": "As of May 2023, there were 1,490 Heating, Air Conditioning, and Refrigeration Mechanics and Installers employed in the New Orleans-Metairie, LA MSA, representing 2.887 HVAC technicians per 1,000 total jobs in the metropolitan area (location quotient of 1.10).", "density_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_35380.htm", "permit_volume_trend": "Residential building permitting in the New Orleans-Metairie metro area experienced a significant downward trend, with total monthly permits falling by 68.4% (and single-family permits declining by 75%) between 2020 and 2025, alongside a 47.3% year-over-year contraction in 2024 multifamily unit authorizations.", "permit_source": "U.S. Census Bureau, Building Permits Survey, https://www.census.gov/construction/bps/", "market_context_note": "In Louisiana, HVAC contracting is regulated by the Louisiana State Licensing Board for Contractors (LSLBC), which requires a Mechanical Contractor license for any HVAC project exceeding $10,000 in total value (labor and materials). Market demand in the region is heavily driven by humid subtropical climate needs, equipment replacement cycles, and regional HVAC service platform acquisitions.", "market_context_source": "CT Acquisitions / Louisiana State Licensing Board for Contractors, 2024", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "New York", "where": "NY", "contractor_density_note": "In the New York-Newark-Jersey City, NY-NJ-PA Metropolitan Statistical Area, the U.S. Bureau of Labor Statistics reports 22,780 Heating, Air Conditioning, and Refrigeration Mechanics and Installers employed in the metro area.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes499021.htm", "permit_volume_trend": "Residential building permit volume in the New York-Newark-Jersey City MSA remains high with 54,565 housing units authorized over trailing 12-month periods, driven predominantly by multi-family structures (83.6% of permitted units), indicating robust ongoing demand for HVAC mechanical installation and retrofit work.", "permit_source": "U.S. Census Bureau, Building Permits Survey (retrieved via Federal Reserve Bank of St. Louis FRED), 2026, https://fred.stlouisfed.org/series/NEWY636BP1FHSA", "market_context_note": "A primary demand driver for HVAC and refrigeration contractors in the metro area is New York City's Local Law 97, which mandates strict building greenhouse gas emissions limits beginning in 2024 for properties over 25,000 square feet, forcing building owners to execute HVAC retrofits, heat pump conversions, and energy efficiency upgrades to avoid steep non-compliance penalties.", "market_context_source": "New York City Department of Buildings, Local Law 97 Building Emissions Requirements, 2024", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "Oklahoma City", "where": "OK", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics, the Oklahoma City, OK MSA employed approximately 2,290 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) in May 2023, representing a location quotient of 1.33 (33% higher technician density than the national average).", "density_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 Occupational Employment and Wage Statistics, https://www.bls.gov/oes/current/oes_36420.htm", "permit_volume_trend": "Residential building permit activity for new private housing units in the Oklahoma City MSA moderated from peak levels of 600-890 units per month in early 2022 to approximately 310-500 units per month in 2023, reflecting higher interest rates before stabilizing.", "permit_source": "U.S. Census Bureau via FRED, Federal Reserve Bank of St. Louis, 2024, https://fred.stlouisfed.org/series/OKLA440BPPRIV", "market_context_note": "The Oklahoma City MSA expanded to over 1.44 million residents by 2024 (a ~19% increase since 2010) and generated $81.7 billion in real Gross Domestic Product in 2024, maintaining strong long-term baseline demand for residential and commercial HVAC system installations and retrofits.", "market_context_source": "U.S. Bureau of Economic Analysis & U.S. Census Bureau via Oklahoma Department of Commerce / Oklahoma.gov, 2024, https://www.oklahoma.gov", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Orlando", "where": "FL", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics (BLS) May 2023 OEWS data, the Orlando-Kissimmee-Sanford, FL MSA employed 4,930 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a high employment density of approximately 3.605 HVAC mechanics per 1,000 total jobs in the metro area.", "density_source": "U.S. Bureau of Labor Statistics, 2023, https://www.bls.gov/oes/2023/may/oes_36740.htm", "permit_volume_trend": "Data from the U.S. Census Bureau Building Permits Survey shows sustained high construction activity in the Orlando-Kissimmee-Sanford MSA, with annual new residential permit totals remaining robust between 24,000 and 27,000 units permitted annually from 2021 through 2024.", "permit_source": "U.S. Census Bureau / FRED Federal Reserve Bank of St. Louis, 2024, https://fred.stlouisfed.org/series/ORLA712BPPRIV", "market_context_note": "Central Florida's intense sub-tropical climate creates year-round demand for residential and commercial HVAC replacement, ductwork, and cooling services. Economic projections from the University of Central Florida (UCF) Institute for Economic Forecasting underscore ongoing population growth and expansion across Orange, Osceola, and Seminole counties as primary drivers for trade contractor demand.", "market_context_source": "University of Central Florida Institute for Economic Forecasting, 2024, https://www.ucf.edu", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Philadelphia", "where": "PA", "contractor_density_note": "In the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA, there were 9,080 Heating, Air Conditioning, and Refrigeration Mechanics and Installers employed as of May 2023, representing an occupational density of 3.207 per 1,000 total jobs and a location quotient of 1.23 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS), OEWS May 2023 Data, 2024, https://www.bls.gov/oes/current/oes499021.htm", "median_job_value_usd": 7695, "job_value_source": "Angi, 2026, https://www.angi.com", "permit_volume_trend": "Residential building permit activity in the Philadelphia-Camden-Wilmington MSA contracted significantly after peaking in 2021-2022, led by a sharp drop in multi-family (5+ unit) permits (down over 70% from 2020 levels), while single-family home permitting showed a modest 10% year-over-year increase in PA in late 2024.", "permit_source": "U.S. Department of Housing and Urban Development (HUD) / U.S. Census Bureau, Mid-Atlantic Regional Housing Market Report Q4 2024, 2024, https://www.huduser.gov", "market_context_note": "HVAC trade demand in the Philadelphia metro is driven primarily by replacement, maintenance, and retrofits across aging housing stock (notably historic rowhomes requiring custom ductwork and electrical panel upgrades), humid summer/cold winter climate demands, and compliance with updated federal SEER2 energy efficiency standards.", "market_context_source": "Elite HVAC Philadelphia, 2026, https://www.elitehvacphiladelphia.com", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Phoenix", "where": "AZ", "contractor_density_note": "As of May 2024, the Phoenix-Mesa-Chandler, AZ MSA employed approximately 7,920 HVAC mechanics and installers (SOC 49-9021), ranking among the top metropolitan areas nationwide for trade employment with a high location quotient of 3.86.", "density_source": "U.S. Bureau of Labor Statistics, May 2024 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes", "median_job_value_usd": 7748, "job_value_source": "Angi, 2026, https://www.angi.com", "permit_volume_trend": "New residential housing permits in the Phoenix-Mesa-Chandler MSA peaked in 2021-2022 (reaching over 42,000 units authorized) before moderating in 2023 and 2024 due to higher interest rates, though housing completion and permitting volumes remain historically strong.", "permit_source": "U.S. Census Bureau, Building Permits Survey (retrieved via Federal Reserve Bank of St. Louis FRED), 2024, https://fred.stlouisfed.org/series/PHOE004BPPRIVSA", "market_context_note": "Extreme desert heat in the Phoenix metro area, where summer temperatures regularly exceed 110°F, creates high sustained demand for residential and commercial HVAC maintenance, retrofits, high-efficiency system upgrades, and emergency replacement services.", "market_context_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, 2024, https://www.bls.gov/oes", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Pittsburgh", "where": "PA", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics (BLS) May 2023 OEWS report, the Pittsburgh, PA Metropolitan Statistical Area employed approximately 3,650 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 1.30 compared to the national average.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Occupational Employment and Wage Statistics (OEWS), 2024, https://www.bls.gov/oes/current/oes_38300.htm", "permit_volume_trend": "According to HUD's Comprehensive Housing Market Analysis for the Pittsburgh MSA, residential building permit activity averaged 3,325 homes permitted annually during 2022-2023, representing a downward trend from an average of 3,775 homes permitted annually during 2020-2021 due to out-migration and elevated interest rates.", "permit_source": "U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Market Analysis: Pittsburgh, Pennsylvania, 2024, https://www.huduser.gov/portal/ushmc/chma_archive.html", "market_context_note": "Employment for HVAC and refrigeration mechanics and installers is projected to grow 8 percent nationally from 2024 to 2034 according to the BLS Occupational Outlook Handbook. Regional demand in the Pittsburgh area is sustained by major healthcare institutional expansions (such as UPMC), commercial retrofits, and equipment replacement cycles across the metro area's aging housing stock.", "market_context_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Heating, Air Conditioning, and Refrigeration Mechanics and Installers, 2025, https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Portland", "where": "OR", "contractor_density_note": "The Portland-Vancouver-Hillsboro, OR-WA MSA employs approximately 2,600 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 0.82 relative to the national concentration.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_38900.htm", "median_job_value_usd": 9750, "job_value_source": "HVAC Project Cost, 2026 Oregon HVAC Replacement Costs & Permit Requirements Report", "permit_volume_trend": "Residential construction permitting in the Portland-Vancouver-Hillsboro MSA decreased sharply in 2024, with single-family unit permits down 2.7% year-over-year (1,649 units) and multi-family unit permits dropping 58.5% year-over-year (2,696 units).", "permit_source": "U.S. Census Bureau Building Permits Survey / Realtor.com Research, 2025 Rent & Permitting Report", "market_context_note": "Oregon requires a mechanical permit for all HVAC replacements (including same-for-same swaps) under the Oregon Mechanical Specialty Code. In the Portland metro area, trade permit fees include a mandatory 12% state surcharge, and local demand is heavily driven by heat pump conversions supported by Energy Trust of Oregon incentives.", "market_context_source": "HVAC Project Cost, 2026 Oregon HVAC Replacement Costs & Permit Requirements Report", "density_source_access": "url", "job_value_source_access": "citation-text-only", "permit_source_access": "citation-text-only", "market_context_source_access": "citation-text-only" }, { "name": "Providence", "where": "RI", "contractor_density_note": "As of May 2023, the Providence-Warwick, RI-MA Metropolitan Statistical Area employed 1,370 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a density rate of 2.413 workers per 1,000 total jobs in the metropolitan area.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_39300.htm", "permit_volume_trend": "In 2024, multi-family housing authorized by building permits accounted for 48.9% of all new privately owned housing units in the Providence-Warwick, RI-MA MSA, making it one of the highest multi-family permit shares among large U.S. metros amid historically constrained overall housing permitting in the region.", "permit_source": "U.S. Census Bureau, Building Permits Survey, 2024, https://www.census.gov/construction/bps", "market_context_note": "Commercial and residential building construction, energy efficiency retrofits, and system replacements drive demand for the HVAC&R trade, with employment for mechanics and installers projected to grow 8% nationwide from 2024 to 2034.", "market_context_source": "U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, 2025, https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Raleigh", "where": "NC", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics May 2024 OEWS data, the Raleigh-Cary, NC Metropolitan Statistical Area employed 2,570 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021).", "density_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics, 2024, https://www.bls.gov/oes", "median_job_value_usd": 7365, "job_value_source": "Angi, 2026, https://www.angi.com", "permit_volume_trend": "Residential construction permitting in the Raleigh-Cary metro area reached 18,396 authorized units over the trailing 12-month period, representing a 15.5% year-over-year increase and a rate of 12.69 building permits per 1,000 residents.", "permit_source": "U.S. Census Bureau Building Permits Survey, 2026, https://www.census.gov/construction/bps", "market_context_note": "The Raleigh-Cary metropolitan area ranked first among major U.S. metros in new home construction activity, authorizing 28.8 new housing units per 1,000 existing homes.", "market_context_source": "Construction Coverage, 2025, https://constructioncoverage.com", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Richmond", "where": "VA", "contractor_density_note": "In the Richmond, VA Metropolitan Statistical Area, there were 2,460 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing a location quotient of 1.45 and a concentration of 3.805 HVAC workers per 1,000 total jobs.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, 2023, https://www.bls.gov/oes/current/oes_40060.htm", "permit_volume_trend": "According to Census Bureau permitting data, residential construction in the Richmond, VA MSA saw single-family building permits stabilize at 1,477 units in 2024 (0.0% YoY change) after previous pullbacks in 2022 and 2023, while multifamily unit authorizations declined 14.0% to 3,408 units.", "permit_source": "U.S. Census Bureau, Building Permits Survey, 2024, https://www.census.gov/construction/bps", "market_context_note": "Demographic trends from the Weldon Cooper Center highlight strong net in-migration into the Richmond metro area, driving steady demand for new housing construction as well as HVAC mechanical service and maintenance across major submarkets like Chesterfield and Henrico counties.", "market_context_source": "Virginia Housing / Weldon Cooper Center for Public Service, 2025, https://vhc.virginia.gov", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Riverside-San Bernardino", "where": "CA", "contractor_density_note": "In the Riverside-San Bernardino-Ontario, CA MSA, there were 5,890 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing an employment density of 3.542 workers per 1,000 jobs and a location quotient of 1.35 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS), Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes_40140.htm", "permit_volume_trend": "In 2022, the Riverside-San Bernardino-Ontario MSA authorized 16,320 new residential building units according to the Census Building Permits Survey, a 4.6% increase over 2021 with a total construction value of $3.9 billion (+4.5%). Multi-family permitting grew over 45% to reach 5,150 units during the 12 months ending mid-2022, followed by a moderate slowdown in single-family permits in 2023 due to higher mortgage rates while multi-family construction remained steady.", "permit_source": "U.S. Census Bureau, Building Permits Survey (BPS), 2023, https://www.census.gov/construction/bps", "market_context_note": "Driven by population migration from coastal Southern California counties into the Inland Empire and major commercial and warehousing developments, HUD estimated demand for 41,500 new sales units and 12,725 rental units over a three-year forecast period. The combination of sustained regional development and high summer cooling demands maintains strong demand for HVAC installation, replacement, and servicing.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD) Office of Policy Development and Research (PD&R), Comprehensive Housing Market Analysis: Riverside-San Bernardino-Ontario, California, 2022, https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Sacramento", "where": "CA", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics, the Sacramento-Roseville-Folsom, CA metropolitan area employed approximately 3,030 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (2023), https://www.bls.gov/oes/current/oes_40900.htm", "permit_volume_trend": "According to the U.S. Census Bureau Building Permits Survey, residential construction permitting in the Sacramento metro area reached 10,042 units over the trailing 12 months, reflecting a moderate softening in single-family permitting (down ~11% year-over-year) alongside a slight pullback in multi-family development compared to peak pandemic levels.", "permit_source": "U.S. Census Bureau, Building Permits Survey (2024), https://www.census.gov/construction/bps/index.html", "market_context_note": "According to the U.S. Department of Housing and Urban Development (HUD), housing demand in the Sacramento metropolitan area remains supported by long-term population growth, inward migration from higher-cost coastal California markets, and significant ongoing multi-family and single-family construction under way across Sacramento and Placer counties.", "market_context_source": "U.S. Department of Housing and Urban Development, Comprehensive Housing Market Analysis: Sacramento-Roseville-Arden-Arcade, CA (2022), https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Salt Lake City", "where": "UT", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics, the Salt Lake City, UT Metropolitan Statistical Area employed 2,530 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing an occupational density of 3.147 per 1,000 total jobs and a Location Quotient of 1.20.", "density_source": "U.S. Bureau of Labor Statistics (BLS), May 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_41620.htm", "permit_volume_trend": "Residential building permit volume in the Salt Lake City MSA grew rapidly between 2019 and 2022 with approximately 17,000 residential housing units authorized (with 79.5% concentrated in multi-family developments), followed by a moderate slowdown in single-family housing permits during 2023-2024 due to higher interest rates and land supply constraints.", "permit_source": "U.S. Census Bureau, Building Permits Survey (retrieved via FRED, Federal Reserve Bank of St. Louis), 2024, https://fred.stlouisfed.org/series/SALT649BPPRIVSA", "market_context_note": "The Salt Lake City MSA population reached over 1.30 million residents in 2024 following a 22.2% increase between 2010 and 2020. High multi-family construction activity along the Wasatch Front combined with high-desert climatic extremes (cold, snowy winters and hot, dry summers) drives continuous demand for HVAC installation, maintenance, and energy-efficiency retrofits.", "market_context_source": "Salt Lake City Department of Community and Neighborhoods, Housing SLC Five-Year Housing Plan (utilizing U.S. Census Bureau & Kem C. Gardner Policy Institute data), 2023", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "citation-text-only" }, { "name": "San Antonio", "where": "TX", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), the San Antonio-New Braunfels, TX Metropolitan Statistical Area employed 2,860 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing a density of 2.62 mechanics per 1,000 jobs in the metro area (a location quotient of 1.00 relative to the national average).", "density_source": "U.S. Bureau of Labor Statistics, May 2023 OEWS Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates for San Antonio-New Braunfels, TX (2024), https://www.bls.gov/oes/current/oes_41700.htm", "median_job_value_usd": 8500, "job_value_source": "Renovetted, San Antonio HVAC Replacement Cost & Building Permit Analysis (2024)", "permit_volume_trend": "Residential building permit activity in the San Antonio-New Braunfels MSA reached 24,006 authorized units (+7.8% year-over-year) valued at $4.2 billion in 2022, before moderating to approximately 15,000-16,000 authorized housing units annually across 2023 and 2024.", "permit_source": "U.S. Census Bureau Building Permits Survey, Annual Estimates of Housing Units Authorized by Building Permits for San Antonio-New Braunfels, TX MSA (2024), https://www.census.gov/construction/bps", "market_context_note": "According to HUD's Comprehensive Housing Market Analysis, the San Antonio-New Braunfels metro reached a population of 2.77 million with nonfarm payrolls growing 2.5% (+29,000 jobs year-over-year through late 2024). This ongoing population expansion across the metro's 8 counties drives strong long-term demand for residential HVAC replacement and maintenance given the area's extended summer cooling season.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD User), Comprehensive Housing Market Analysis for San Antonio-New Braunfels, TX (2024), https://www.huduser.gov/portal/ushmc/chma_archive.html", "density_source_access": "url", "job_value_source_access": "citation-text-only", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "San Diego", "where": "CA", "contractor_density_note": "In the San Diego-Carlsbad, CA Metropolitan Statistical Area, there were 3,410 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed as of May 2023.", "density_source": "U.S. Bureau of Labor Statistics, 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_41740.htm", "permit_volume_trend": "Housing units authorized by building permits in San Diego, CA increased from 5,765 units in 2023 to 6,615 units in 2024 (an increase of 850 units or +14.8%). Across the broader San Diego region, 14,947 total housing units were permitted in 2024, led by multifamily construction (60%) and accessory dwelling units (27%).", "permit_source": "U.S. Census Bureau, 2024 Annual Building Permits Survey, https://www.census.gov/construction/bps", "market_context_note": "Heating, Air Conditioning, and Refrigeration Mechanics and Installers in the San Diego-Chula Vista-Carlsbad MSA earned a mean annual wage of $74,880 ($36.00 per hour) as of May 2023. Trade activity in the region is strongly supported by California Title 24 energy efficiency standards, HERS rating mandates, and local building electrification policies.", "market_context_source": "U.S. Bureau of Labor Statistics, 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_41740.htm", "density_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "San Francisco", "where": "CA", "contractor_density_note": "In the San Francisco-Oakland-Hayward, CA Metropolitan Statistical Area, there were 4,350 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), with a mean hourly wage of $38.40 and a mean annual wage of $79,870.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates, 2024, https://www.bls.gov/oes/current/oes_41860.htm", "median_job_value_usd": 10250, "job_value_source": "Fixr, California HVAC Market Intelligence Report, 2026, https://www.fixr.com", "permit_volume_trend": "Residential building permitting activity in the San Francisco metropolitan area contracted sharply after 2022, with new construction permit volumes down roughly 52% from peak levels through 2025 in major sub-markets such as Alameda County due to high construction costs and interest rate pressures.", "permit_source": "Shovels.ai, California New Construction Permit Data Report, 2026, https://www.shovels.ai", "market_context_note": "As of January 1, 2026, California Energy Code Title 24 standards mandate heat pumps as the prescriptive default for new residential construction statewide, backing California's target of 6 million installed heat pumps by 2030.", "market_context_source": "California Energy Commission, Title 24 Building Energy Efficiency Standards / Fixr HVAC Market Report, 2026, https://www.fixr.com", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "San Jose", "where": "CA", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics OEWS data, the San Jose-Sunnyvale-Santa Clara, CA metropolitan statistical area employed 2,210 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing 1.94 workers per 1,000 jobs and a location quotient of 0.74 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS), May 2023, https://www.bls.gov/oes/current/oes499021.htm", "median_job_value_usd": 18850, "job_value_source": "San José Clean Energy, 2024", "permit_volume_trend": "The San Jose-Sunnyvale-Santa Clara MSA saw a sharp 68% decline in total residential building permits comparing July 2020 to July 2025 (falling from 1,949 permits to 623 permits), driven primarily by a 74% collapse in 5+ unit multifamily housing permits (from 1,697 to 449 units).", "permit_source": "U.S. Census Bureau Building Permits Survey (via San José Spotlight / HomeAbroad), 2025", "market_context_note": "HVAC equipment installations and replacements in San Jose require mechanical permits through the City of San Jose Department of Planning, Building and Code Enforcement (PBCE) with permit fees typically ranging from $200 to $600, along with mandatory California Title 24 energy code compliance and HERS duct leakage testing.", "market_context_source": "City of San Jose Department of Planning, Building and Code Enforcement (PBCE), 2026, https://www.sanjoseca.gov/your-government/departments-offices/planning-building-code-enforcement/building-division", "density_source_access": "url", "job_value_source_access": "citation-text-only", "permit_source_access": "citation-text-only", "market_context_source_access": "url" }, { "name": "Seattle", "where": "WA", "contractor_density_note": "In the Seattle-Tacoma-Bellevue, WA MSA, there were 4,070 employed Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing a location quotient of 0.75 and an annual mean wage of $79,280 ($38.12 hourly mean wage).", "density_source": "U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), 2023, https://www.bls.gov/oes/current/oes_42660.htm", "median_job_value_usd": 8333, "job_value_source": "Angi Seattle HVAC Cost Study, 2026, https://www.angi.com", "permit_volume_trend": "New private housing units authorized by building permits in the Seattle-Tacoma-Bellevue, WA MSA reached 36,866 units in 2024, down slightly from 37,080 units in 2023 and down 24.5% from 48,798 units in 2022, indicating a moderation in construction activity relative to peak pandemic-era levels.", "permit_source": "U.S. Census Bureau via FRED Federal Reserve Bank of St. Louis, 2026, https://fred.stlouisfed.org/series/SEAT653BPPRIVSA", "market_context_note": "Commercial and residential HVAC work in Seattle is heavily driven by building decarbonization regulations, including Washington State's Clean Buildings Performance Standard (HB 1257) and Seattle's Building Emissions Performance Standard (BEPS), which mandate strict energy efficiency and greenhouse gas intensity targets for commercial and multifamily structures over 20,000 sq ft.", "market_context_source": "City of Seattle Office of Sustainability and Environment, 2023, https://www.seattle.gov", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "St. Louis", "where": "MO", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics, the St. Louis, MO-IL Metropolitan Statistical Area employed approximately 4,000 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) as of May 2023, representing a location quotient of 1.15 relative to the national average.", "density_source": "U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (2023), https://www.bls.gov/oes/current/oes_41420.htm", "median_job_value_usd": 7133, "job_value_source": "Angi, St. Louis MO HVAC Replacement Cost Report (2026), https://www.angi.com", "permit_volume_trend": "Residential construction permitting in the St. Louis MSA trended downward in 2025, with single-family building permits falling 10% year-over-year from 4,650 units in 2024 to 4,175 units in 2025, while multifamily unit permits decreased 19% from 2,050 to 1,650 units.", "permit_source": "U.S. Department of Housing and Urban Development (HUD User), Housing Market Profiles (2026), https://www.huduser.gov", "market_context_note": "The St. Louis MSA comprises roughly 1.18 million households across eastern Missouri and western Illinois, where extreme seasonal swings, hot, humid summers and freezing winter temperatures, drive continuous year-round demand for HVAC maintenance, retrofits, and system replacements.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD User), Housing Market Profiles (2026), https://www.huduser.gov", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Tampa", "where": "FL", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics May 2023 OEWS report, the Tampa-St. Petersburg-Clearwater, FL MSA employs 6,050 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021), representing 4.28 per 1,000 jobs with a Location Quotient of 1.64. U.S. Census Bureau County Business Patterns data indicates approximately 1,394 plumbing, heating, and air-conditioning contractor establishments (NAICS 238220) in the metro area, equivalent to 41.7 establishments per 100,000 residents.", "density_source": "U.S. Bureau of Labor Statistics, 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_45300.htm", "median_job_value_usd": 7568, "job_value_source": "Angi, 2026 Tampa FL HVAC System Replacement Cost Guide, https://www.angi.com", "permit_volume_trend": "According to the U.S. Census Bureau Building Permits Survey, the Tampa-St. Petersburg-Clearwater MSA authorized 16,352 new privately-owned housing units in 2024, ranking 11th among all U.S. metropolitan areas. Permitting activity in 2025-2026 remained resilient with modest year-over-year gains in total residential authorizations, driven by multifamily construction gains.", "permit_source": "U.S. Census Bureau, 2024 Annual Building Permits Survey & FRED (Federal Reserve Bank of St. Louis), 2026, https://fred.stlouisfed.org/series/TAMP312BPPRIV", "market_context_note": "The Tampa metro area features roughly 3,000 to 4,000 annual cooling degree days, extreme summer humidity, and salt-air corrosion near Tampa Bay, creating continuous year-round HVAC demand. Under Florida Statute 489 and the Florida Building Code, all HVAC equipment replacements require a mechanical building permit ($75 to $200 base fee) and installation by a licensed contractor.", "market_context_source": "Hillsborough County Development Services & Florida Building Code (via HVAC Project Cost, 2026), https://hvacprojectcost.com", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" }, { "name": "Virginia Beach", "where": "VA", "contractor_density_note": "According to the U.S. Bureau of Labor Statistics (BLS) May 2023 Occupational Employment and Wage Statistics (OEWS), the Virginia Beach-Norfolk-Newport News, VA-NC metropolitan area employs 3,020 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021).", "density_source": "U.S. Bureau of Labor Statistics, OEWS May 2023 (published April 2024), https://www.bls.gov/oes/current/oes_47260.htm", "median_job_value_usd": 7650, "job_value_source": "MyHomeScore HVAC System Cost Guide, 2026, https://myhomescore.app/hvac-system-cost-virginia", "permit_volume_trend": "According to Virginia REALTORS and U.S. Census Bureau Building Permits Survey data, residential building permit activity in the Virginia Beach metropolitan area saw a decline in single-family permits of 11.6% in 2023, reflecting a broader statewide residential permitting slowdown due to higher interest rates and housing market supply constraints.", "permit_source": "Virginia REALTORS, Building Permits in Virginia Report, 2023", "market_context_note": "A U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Market Analysis found that the Virginia Beach-Norfolk-Newport News metro area had nonfarm payrolls averaging 820,800 jobs and estimated a 3-year demand for 11,000 new sales homes and 6,175 new rental units through late 2027.", "market_context_source": "U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Market Analysis: Virginia Beach-Norfolk-Newport News, VA-NC, 2024, https://www.huduser.gov", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "citation-text-only", "market_context_source_access": "url" }, { "name": "Washington DC", "where": "DC", "contractor_density_note": "As of May 2023, there were 7,590 Heating, Air Conditioning, and Refrigeration Mechanics and Installers (SOC 49-9021) employed in the Washington-Arlington-Alexandria, DC-VA-MD-WV metropolitan area, representing a location quotient of 0.94 relative to national trade density and an annual mean wage of $68,420.", "density_source": "U.S. Bureau of Labor Statistics, May 2023 Occupational Employment and Wage Statistics (OEWS), https://www.bls.gov/oes/current/oes_47900.htm", "median_job_value_usd": 8168, "job_value_source": "Angi, 2026 Washington DC HVAC Replacement Cost Report, https://www.angi.com/articles/hvac-replacement-cost-washington-dc.htm", "permit_volume_trend": "New residential building permits in the Washington-Arlington-Alexandria metro area declined 16% year-over-year, dropping from 21,487 permitted units in 2024 to 18,073 units in 2025.", "permit_source": "U.S. Census Bureau, Building Permits Survey (BPS) 2024-2025 Data, https://www.census.gov/construction/bps", "market_context_note": "Trade demand in Washington, DC is significantly driven by a dense mix of historic rowhomes and legacy building stock requiring retrofits, stringent building code enforcement by the Department of Buildings (DOB), and seasonal climate extremes requiring both heating and cooling performance.", "market_context_source": "District of Columbia Department of Buildings, 2026 Building Permit & Mechanical Regulations, https://dob.dc.gov", "density_source_access": "url", "job_value_source_access": "url", "permit_source_access": "url", "market_context_source_access": "url" } ] }, "market_structure": { "permits": [ { "trade_category": "HVAC", "permit_year": "2022", "permits": "1401318", "contractors": "68514", "p25_job_value": "3215.0", "median_job_value": "8010.0", "p75_job_value": "43097.0", "p90_job_value": "250941.0" }, { "trade_category": "HVAC", "permit_year": "2023", "permits": "1539132", "contractors": "66512", "p25_job_value": "3931.0", "median_job_value": "9624.0", "p75_job_value": "53798.0", "p90_job_value": "305471.0" }, { "trade_category": "HVAC", "permit_year": "2024", "permits": "1002157", "contractors": "60530", "p25_job_value": "4269.0", "median_job_value": "10877.0", "p75_job_value": "56593.0", "p90_job_value": "299417.0" } ], "seasonality": [ { "trade_category": "HVAC", "permit_month": "01", "permits": "120700", "avg_value": "307433.0" }, { "trade_category": "HVAC", "permit_month": "02", "permits": "110001", "avg_value": "183727.0" }, { "trade_category": "HVAC", "permit_month": "03", "permits": "132976", "avg_value": "203932.0" }, { "trade_category": "HVAC", "permit_month": "04", "permits": "116617", "avg_value": "213871.0" }, { "trade_category": "HVAC", "permit_month": "05", "permits": "127829", "avg_value": "275477.0" }, { "trade_category": "HVAC", "permit_month": "06", "permits": "125365", "avg_value": "229453.0" }, { "trade_category": "HVAC", "permit_month": "07", "permits": "118050", "avg_value": "264763.0" }, { "trade_category": "HVAC", "permit_month": "08", "permits": "143682", "avg_value": "236648.0" }, { "trade_category": "HVAC", "permit_month": "09", "permits": "124335", "avg_value": "219607.0" }, { "trade_category": "HVAC", "permit_month": "10", "permits": "144810", "avg_value": "178964.0" }, { "trade_category": "HVAC", "permit_month": "11", "permits": "139106", "avg_value": "297271.0" }, { "trade_category": "HVAC", "permit_month": "12", "permits": "135661", "avg_value": "215048.0" } ], "size_tiers": [ { "trade_category": "HVAC", "size_tier": "Micro (5-19)", "contractors": "42614", "avg_total_value_m": "2.64" }, { "trade_category": "HVAC", "size_tier": "Small (20-99)", "contractors": "20064", "avg_total_value_m": "8.46" }, { "trade_category": "HVAC", "size_tier": "Mid (100-499)", "contractors": "5216", "avg_total_value_m": "33.89" }, { "trade_category": "HVAC", "size_tier": "Large (500+)", "contractors": "1086", "avg_total_value_m": "202.42" } ], "top_states": [ { "trade_category": "HVAC", "state": "FL", "permits": "784431", "contractors": "23472", "median_job_value": "6568.0" }, { "trade_category": "HVAC", "state": "CA", "permits": "356626", "contractors": "20452", "median_job_value": "7691.0" }, { "trade_category": "HVAC", "state": "TX", "permits": "277117", "contractors": "12364", "median_job_value": "12783.0" }, { "trade_category": "HVAC", "state": "NC", "permits": "275761", "contractors": "12494", "median_job_value": "13290.0" }, { "trade_category": "HVAC", "state": "OR", "permits": "236365", "contractors": "4738", "median_job_value": "9074.0" }, { "trade_category": "HVAC", "state": "CO", "permits": "194850", "contractors": "4486", "median_job_value": "8772.0" }, { "trade_category": "HVAC", "state": "WA", "permits": "160725", "contractors": "4778", "median_job_value": "18415.0" }, { "trade_category": "HVAC", "state": "GA", "permits": "131856", "contractors": "2953", "median_job_value": "12931.0" }, { "trade_category": "HVAC", "state": "OH", "permits": "125724", "contractors": "4580", "median_job_value": "31110.0" }, { "trade_category": "HVAC", "state": "MN", "permits": "120393", "contractors": "3059", "median_job_value": "11881.0" } ] }, "reputation": { "available": true, "source": "Public business-review listings (aggregated April 2026). Aggregate only; no individual business identified.", "n_businesses": 42943, "avg_rating": 3.74, "rating_p25": 3, "rating_median": 4, "rating_p75": 4.8, "avg_reviews": 30.43, "reviews_median": 9, "reviews_p90": 64, "claimed_pct": 77.2, "closed_pct": 4.8, "top_states": [ { "state": "CA", "n": 8110 }, { "state": "TX", "n": 4045 }, { "state": "FL", "n": 3654 }, { "state": "NY", "n": 1752 }, { "state": "IL", "n": 1747 } ], "source_access": "citation-text-only" }, "firmographics": { "available": true, "source": "Aggregated public business firmographic records (multi-source SMB dataset). Revenue/employee/age/employer-rating distributions per trade. Aggregate only; no individual company identified.", "n_companies": 14629, "revenue_usd": { "n": 6041, "p25": 6100000, "median": 10800000, "p75": 22749644, "p90": 40000000 }, "employees": { "n": 3321, "p25": 36, "median": 55, "p75": 98, "p90": 171 }, "founded_year_median": 2002, "employer_rating_avg": 3.6, "employer_rating_n": 3237, "top_states": [], "source_access": "citation-text-only" }, "level_published": { "slug": "hvac", "trade": "HVAC", "page": "https://levelcfo.com/benchmarks/hvac/", "public_company_comps": [ "Comfort Systems USA (FIX)", "EMCOR (EME)", "Limbach (LMB)" ], "benchmarks": [ { "tier": "A", "metric": "Public commercial-mechanical gross margin", "value": "19% to 24%", "detail": "Comfort Systems USA (FIX) 24.1%, EMCOR (EME) 19.3%, FY2025.", "source": "SEC 10-K filings (FIX, EME) FY2025", "url": "https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001035983&type=10-K", "source_access": "citation-text-only" }, { "tier": "A", "metric": "Public commercial-mechanical operating margin", "value": "10% to 14%", "detail": "Comfort Systems 14.4%, EMCOR 10.1%, FY2025.", "source": "SEC 10-K filings FY2025", "url": "https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000105634&type=10-K", "source_access": "citation-text-only" }, { "tier": "A", "metric": "HVAC mechanic median wage (SOC 49-9021)", "value": "$59,810/yr", "detail": "Mean $62,690, ~397,000 employed, median hourly $28.75.", "source": "BLS OEWS, May 2024", "url": "https://www.bls.gov/oes/tables.htm", "source_access": "citation-text-only" }, { "tier": "A", "metric": "Commercial mechanical DSO (implied)", "value": "~90 to 105 days", "detail": "EMCOR ~91, Comfort Systems ~103, computed from FY2025 receivables/revenue. Residential service collects far faster.", "source": "Computed from SEC 10-K filings FY2025", "url": "https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001035983&type=10-K", "source_access": "citation-text-only" }, { "tier": "B", "metric": "All-contractor net profit before tax", "value": "6.3% (top quartile ~11.9%)", "detail": "The reality-check on what a healthy contractor nets.", "source": "CFMA 2024 Construction Financial Benchmarker (n=1,290)", "url": "https://cfma.org/benchmarker", "source_access": "citation-text-only" }, { "tier": "B", "metric": "US HVAC contractor market size", "value": "~$159B, ~115,000-120,000 firms", "detail": "Fragmented; no firm above a few percent share.", "source": "IBISWorld, Heating & Air-Conditioning Contractors (2025/2026)", "url": "https://www.ibisworld.com/united-states/industry/heating-air-conditioning-contractors/1945/", "source_access": "citation-text-only" } ], "key_stat": { "value": "24.1%", "label": "gross margin, Comfort Systems USA (largest public commercial mechanical contractor, FY2025 10-K)" }, "hero_stats": [ { "value": "24.1%", "caption": "Gross margin", "label": "largest public commercial HVAC contractor (FIX, FY2025)" }, { "value": "$59,810", "caption": "Median tech wage", "label": "HVAC mechanics (BLS OEWS, May 2024)" }, { "value": "~90-105 days", "caption": "DSO", "label": "commercial mechanical (SEC filings)" }, { "value": "~$159B", "caption": "US market size", "label": "HVAC contractors (IBISWorld)" } ], "segment_reads": { "title": "What the public HVAC and mechanical contractors actually earn", "note": "n/d = not disclosed at that cut. EMCOR FY2025 consolidated operating margin (10.1%) includes an 85 bps one-time gain on a UK-ops sale; the segment margins shown are clean.", "rows": [ { "company": "Comfort Systems USA (FIX)", "scope": "Consolidated, FY2025", "gross": "24.1%", "operating": "14.4%", "net": "~11.2%", "note": "Largest public commercial mechanical/HVAC contractor. Does not split service vs construction." }, { "company": "EMCOR (EME)", "scope": "US Mechanical Construction segment, FY2025", "gross": "n/d", "operating": "12.8%", "net": "n/d", "note": "The construction arm." }, { "company": "EMCOR (EME)", "scope": "US Building Services segment, FY2025", "gross": "n/d", "operating": "6.0%", "net": "n/d", "note": "The recurring facilities/O&M arm (bid on price), roughly half the construction margin. Note this is O&M, not owner-direct repair, see Limbach ODR below." }, { "company": "Limbach (LMB)", "scope": "Consolidated, FY2025", "gross": "26.2%", "operating": "7.7%", "net": "6.0%", "note": "Pivoting hard toward direct-to-owner service work (75% of revenue in FY2025)." } ] }, "true_margin_bridge": { "headline": "The service call looked like a 55% job. After the truck, the tech burden, and the callback, it is closer to 30%.", "method": "Reproduce it on your own book: start from the quoted gross margin, subtract the fully-burdened technician hours (BLS SOC 49-9021 median $28.75/hr times about 1.3 for taxes, workers' comp, and benefits), then the truck, drive, and dispatch time the job never gets charged for, then the callback rate on that job type. The gap between the quoted margin and what lands is where service shops quietly lose money on jobs that look profitable on the invoice.", "chart": { "title": "Where a residential HVAC service call's apparent margin goes", "unit": "%", "sample": "Level analysis; labor anchored to BLS SOC 49-9021 wage + statutory burden", "points": [ { "name": "Apparent gross margin", "value": 55 }, { "name": "Less fully-burdened tech", "value": 44 }, { "name": "Less truck / drive / dispatch", "value": 37 }, { "name": "True margin after callback", "value": 30 } ] } }, "findings": [ { "headline": "HVAC service work out-earns installation, but only at the small-shop level.", "insight": "Across independent operator sources, residential service and maintenance runs roughly 50 to 58% gross, equipment install 35 to 48%, and new construction 28 to 38%. Service carries more billable diagnostic labor and less pass-through material. These are directional industry figures, not measured survey data, but the direction is consistent across sources.", "source": "CallJolt, Profitability Partners, RunClockwork 2026 (directional)", "chart": { "title": "Gross margin by job type (directional, industry sources)", "unit": "%", "sample": "Directional: CallJolt, Profitability Partners, RunClockwork (2026)", "points": [ { "name": "Service / maintenance", "value": 55 }, { "name": "Equipment install", "value": 42 }, { "name": "New construction", "value": 33 } ] }, "source_access": "citation-text-only" }, { "headline": "Not all 'service' is one business. Recurring O&M runs thin at scale; owner-direct service does not.", "insight": "EMCOR is the one public contractor that breaks out its recurring building-services (facilities O&M) arm. In FY2025 it ran a 6.0% operating margin, roughly half its mechanical-construction segment at 12.8%, because large O&M contracts are bid on price and carry heavy admin and personnel overhead. Do not read that as 'all service thins at scale.' Limbach's owner-direct service arm ran a 31.2% gross margin in FY2024 versus 21.1% for its subcontracted construction (gross, same company). The service premium is real, it lives in owner-direct diagnostic and repair work, not in low-bid recurring O&M.", "source": "EMCOR FY2025 10-K; Limbach FY2024 10-K", "url": "https://www.sec.gov/Archives/edgar/data/105634/000010563426000025/eme-20251231.htm", "chart": { "title": "EMCOR segment operating margin, FY2025", "unit": "%", "sample": "EMCOR FY2025 10-K segment operating income", "points": [ { "name": "Mechanical Construction", "value": 12.8 }, { "name": "Electrical Construction", "value": 12.1 }, { "name": "Building Services (recurring O&M)", "value": 6 } ] }, "source_access": "citation-text-only" }, { "headline": "The HVAC tech wage runs from about $19 to $44 an hour, and your local market sets your labor cost.", "insight": "These are employee wages, not your fully-loaded cost. Add roughly 30% for payroll taxes, workers' comp, and benefits to get true cost per hour, then compare it to your revenue per labor hour. Costing labor at the base wage is the single most common reason a job that looks profitable on the invoice is not.", "source": "BLS Occupational Employment & Wage Statistics, May 2024, SOC 49-9021", "chart": { "title": "HVAC mechanic hourly wage percentiles (BLS OEWS, May 2024)", "unit": "", "sample": "BLS OEWS May 2024, SOC 49-9021 (n=396,870)", "points": [ { "name": "P10", "value": 18.81 }, { "name": "P25", "value": 23 }, { "name": "Median", "value": 28.75 }, { "name": "P75", "value": 35.97 }, { "name": "P90", "value": 43.76 } ] }, "source_access": "citation-text-only" } ], "_license": "https://creativecommons.org/licenses/by/4.0/ (free to cite with attribution to Level, levelcfo.com)", "_publisher": "Level" }, "comps": [ { "ticker": "AAON", "name": "AAON, Inc.", "return_6m_pct": 5.9, "return_1y_pct": 29.2, "gross_margin_pct": 26.24, "ev_ebitda": 35.95, "market_cap_billions": 8.66, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM (Q1 2026 ended March 31, 2026)", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "CARR", "name": "Carrier Global Corporation", "return_6m_pct": 5.7, "return_1y_pct": 4.4, "gross_margin_pct": 25.18, "ev_ebitda": 21.87, "market_cap_billions": 57.59, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM Q1 2026", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "EME", "name": "EMCOR Group, Inc.", "return_6m_pct": 4.2, "return_1y_pct": 21.8, "gross_margin_pct": 19.29, "ev_ebitda": 17.67, "market_cap_billions": 33.06, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM Q1 2026", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "FAST", "name": "Fastenal Company", "return_6m_pct": -1.5, "return_1y_pct": -8.7, "gross_margin_pct": 44.7, "ev_ebitda": 26.83, "market_cap_billions": 52.48, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM Q2 2026", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "FIX", "name": "Comfort Systems USA, Inc.", "return_6m_pct": 25.3, "return_1y_pct": 154.6, "gross_margin_pct": 25.15, "ev_ebitda": 33.46, "market_cap_billions": 58.83, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM (Q1 2026 ended March 31, 2026)", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "GTES", "name": "Gates Industrial Corporation plc", "return_6m_pct": -0.6, "return_1y_pct": 7.2, "gross_margin_pct": 40.3, "ev_ebitda": 11.67, "market_cap_billions": 6.87, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM (Q1 2026)", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "GWW", "name": "W.W. Grainger, Inc.", "return_6m_pct": 18.3, "return_1y_pct": 33.6, "gross_margin_pct": 39.15, "ev_ebitda": 22.06, "market_cap_billions": 64.78, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM (Q1 2026)", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "JCI", "name": "Johnson Controls International plc", "return_6m_pct": -1.3, "return_1y_pct": 33.3, "gross_margin_pct": 36.56, "ev_ebitda": 21.78, "market_cap_billions": 85.03, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM (Q2 FY2026 ended March 31, 2026)", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "LII", "name": "Lennox International Inc.", "return_6m_pct": -6.5, "return_1y_pct": -4.5, "gross_margin_pct": 33.19, "ev_ebitda": 17.63, "market_cap_billions": 18.44, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM (Q1 2026)", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "LMB", "name": "Limbach Holdings, Inc.", "return_6m_pct": -17.5, "return_1y_pct": -34.2, "gross_margin_pct": 25.1, "ev_ebitda": 14.76, "market_cap_billions": 0.88, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM Q1 2026", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "TT", "name": "Trane Technologies plc", "return_6m_pct": 2.4, "return_1y_pct": 14, "gross_margin_pct": 35.92, "ev_ebitda": 25.38, "market_cap_billions": 103.89, "market_snapshot_date": "2026-07-23", "fiscal_period": "TTM Q1 2026", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" }, { "ticker": "WSO", "name": "Watsco, Inc.", "return_6m_pct": -13.3, "return_1y_pct": -10, "gross_margin_pct": 28, "ev_ebitda": 22.22, "market_cap_billions": 14.37, "market_snapshot_date": "2026-07-23", "fiscal_period": "FY 2025", "publication_status": "historical", "current_comparison_eligible": false, "comparison_scope": "historical-reference-only" } ] }