"2020 vision"
This article appears in HVAC&R Nation, February 2020
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"2020 vision"
This article appears in HVAC&R Nation, February 2020
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The Simmonds team. |
Hedge: We are expecting improved confidence in 2020 – noting that there has definitely been varying confidence through the country in 2019. We have definitely witnessed changes in behaviour throughout the market, evident by product choice and capital expenditure.
Simmonds: We are hoping to be involved in a lot more commercial work, and steering away from builder work, which was a big focus in the past few years. Walsh: 2020 is expected to be another competitive year. There will be continued focus from larger companies to seek more sustainable lower-GWP products for R22 replacement, with a focus on high efficiency. We have budgeted for continued growth in 2020, along with innovative product introductions across various segments. |
It seems like business confidence might be improving then?Jensen: Confidence depends on whom you talk to. Clearly those entities able to provide future‑proof solutions are less concerned about the future than those entities and individuals whose future business prospects depend solely on HFC refrigerants and equipment utilising these working fluids.
The federal government cannot rely entirely on interest rate cuts by the Reserve Bank to deliver necessary economic stimulus. The energy conservation potential generally within HVAC&R applications is enormous. With current technologies, it is possible to halve the energy consumption of the sector. The federal government has a significant role to play with respect to incentivising this change. A very good start would be massive training initiatives at all levels of the industry from trade levels to engineering. Simmonds: In our opinion, it is improving. The feedback we get from various contractors/customers, as well as the general public is that the demand for more energy‑efficient systems and programs naturally assists our trade, and the demand for upgrades reflects this. Walsh: General market confidence remains flat, with many areas such as new homes, apartments and infrastructure down. Over the past few months some areas of the HVAC industry have seen an increase; however, the market looks to remain tough for a while yet. |
Jensen: Our general prediction for 2020 is that there will be an increasing element of plant replacements. The drivers for these replacements will be reductions in energy consumption, improvements in plant reliability and minimisation of maintenance costs. Some interest is also starting to emerge in new ownership models where refrigeration plant users no longer own plant outright but pay for the conversion of electrical energy to cooling. For very high energy efficiency solutions, these types of ownership models are attractive both for end-users, but also for financiers. It is a pre-requisite, however, that the provider of the plant has a track record and can predict annualised energy efficiency with a high degree of statistical certainty.
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