How to Avoid Rising Costs Sinking Your Business
Industry experts have pointed to a rising trend in home services that more and more repair calls are being scheduled over replacements. This can be attributed to a tightening economic situation, but for contractors, rising costs of repair goods may shrink their bottom line.
On episode 25 of Matt Chatts, Matthew Bratsis explained that after talking to multiple different sources in the industry, that repair calls will become more common in 2024.
"I have a lot to say about this," started industry insider Scott Carreiro of Daikin Comfort Technologies, North America. "We are seeing tightening in the credit markets, and that's driving more repair over replacement."
Carreiro continued by saying that it was announced that starting January 1, there will be a 40% reduction in the production of R410A, otherwise known as AZ-20, EcoFluor R410, Forane 410A, Genetron R410A, Puron or Suva 410A. This reduction will drive up the cost of the essential refrigerant, and along with it drive up the cost of fulfilling a repair as a contractor.
"The baseline for that reduction percentage was on a very conservative industry number," explained Carreiro. "So it's gonna be tight. Refrigerant is gonna be expensive and probably difficult to get your hands on."
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