TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION xi
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Environment 4
Demographic Trends 8
Population 9
Households 12
Consumer Trends 12
Personal Income & Expenditures 13
Consumer Financing 15
Building Construction 19
Residential 21
New Housing 24
Housing Stock 28
Improvements & Repairs 31
Nonresidential 32
Office & Commercial Construction 35
Institutional Construction 36
Industrial Construction 37
Improvements & Repairs 37
Regulations & Standards 39
Refrigerants 39
Efficiency 41
Pricing Trends 43
World Market 46
Foreign Trade 50
Exports 51
Imports 55
III. HEATING & COOLING FUEL TYPE 58
General 58
Electricity 60
Natural Gas 63
Heating Oil 66
Geothermal Energy 69
Others 72
IV. HEATING EQUIPMENT 74
General 74
Supply & Demand 75
Shipments by Type 78
Heat Pumps 81
Supply & Demand 81
Types 84
Air Source 86
Operation 88
New Technologies 90
Geothermal 91
Operation 92
Types 93
Warm Air Furnaces 94
Supply & Demand 95
Types 97
Natural Gas 99
Electric 101
Heating Oil 104
Boilers 107
Supply & Demand 108
Types 110
Cast Iron Boilers 111
Characteristics 113
Manufacturers 115
Steel Boilers 115
Humidifiers 118
Supply & Demand 119
Characteristics 121
Manufacturers 123
Room & Zone Heating Equipment 123
Supply & Demand 124
Types 126
Manufacturers 127
V. COOLING EQUIPMENT 128
General 128
Supply & Demand 129
Shipments by Type 131
Unitary Air Conditioners 135
Supply & Demand 135
Characteristics 137
Types 139
Manufacturers 141
Room Air Conditioners 142
Supply & Demand 142
Characteristics 145
Types 147
Manufacturers 148
Chillers 149
Supply & Demand 149
Characteristics 151
Absorptive Liquid Chilling Systems 152
Supply & Demand 153
Characteristics 154
Dehumidifiers 155
Supply & Demand 155
Characteristics 157
Manufacturers 159
Packaged Terminal Air Conditioners 159
VI. MARKETS 162
General 162
Residential 165
New Building 168
Cooling Equipment 170
Heating Equipment 172
Replacement & Improvement 174
Cooling Equipment 177
Heating Equipment 178
Nonresidential 179
New Building 184
Replacement & Improvement 187
VII. INDUSTRY STRUCTURE 191
General 191
Industry Composition 191
Market Share 195
United Technologies 197
American Standard 197
Lennox International 198
Goodman Global Holdings 199
Other Leaders 200
Competitive Strategies 202
Research & Development 204
Distribution 205
Marketing 208
Mergers & Acquisitions 211
Cooperative Agreements 214
Company Profiles 217
AAON Incorporated 218
AdobeAir Incorporated 220
Advanced Distributor Products, see Lennox International
Incorporated
AIRE-FLO Heating and Cooling, see Lennox International
Incorporated
Alliance Compressors LLC, see American Standard Companies
Incorporated, Emerson Electric Company and Lennox
International Incorporated
Allied Air Enterprises, see Lennox International
Incorporated
American Standard Companies Incorporated 222
Argo Technology Incorporated, see ECR International
Incorporated
Beacon/Morris, see Mestek Incorporated
Berjaya Corporation Berhad 226
Bradford White Corporation 228
Broan-NuTone LLC, see Nortek Incorporated
Bryant Heating and Cooling Incorporated, see United
Technologies Corporation
Burnham Holdings Incorporated 230
Carlyle Compressor Company, see United Technologies
Corporation
Carrier Corporation, see United Technologies Corporation
Circul-Aire Incorporated, see Dectron Internationale
Incorporated
Crown Boiler Company, see Burnham Holdings Incorporated
Daikin Industries Limited 234
Danfoss A/S 237
Dectron Internationale Incorporated 240
DESA LLC 242
Ducane Air Conditioning and Heating, see Lennox
International Incorporated
Dunham-Bush Incorporated, see Berjaya Corporation Berhad
Dunkirk, see ECR International Incorporated
ECR International Incorporated 243
Electrolux AB 246
Emerson Electric Company 247
Enviromaster International LLC, see ECR International
Incorporated
Fedders Corporation 251
Friedrich Air Conditioning Company 253
Fusite, see Emerson Electric Company
Goodman Global Holdings Incorporated 255
Governair Corporation, see Nortek Incorporated
Governale Company Incorporated, see Burnham Holdings
Incorporated
Haier Group Company 257
International Comfort Products, see United Technologies
Incorporated
Johnson Controls Incorporated 258
LAARS Heating Systems Company, see Bradford White
Corporation
Lennox International Incorporated 262
LG Electronics Incorporated 266
Mammoth Incorporated, see Nortek Incorporated
Matsushita Electric Industrial Company Limited 267
Maytag Corporation, see Whirlpool Corporation
McQuay International Incorporated, see Daikin Industries
Limited
Mestek Incorporated 269
Modine Manufacturing Company 272
New Yorker Boiler Company Incorporated, see Burnham
Holdings Incorporated
Nordyne Incorporated, see Nortek Incorporated
Nortek Incorporated 274
Olsen/Airco Heating & Cooling Products, see ECR
International Incorporated
Oneida Royal, see ECR International Incorporated
OYL Industries Berhad, see Daikin Industries Limited
Paloma Industries Limited 277
Payne Heating and Cooling, see United Technologies
Corporation
Pennco, see ECR International Incorporated
Qinbao Refrigeration Equipment Company Limited,
see Danfoss A/S
RefPlus Incorporated, see Dectron Internationale
Incorporated
Rheem Manufacturing Company, see Paloma Industries
Limited
Samsung Electronics Company Limited 281
SANYO Electric Company Limited 282
Scroll Technologies, see Danfoss A/S
Sharp Corporation 283
SpacePak, see Mestek Incorporated
Tecumseh Products Company 284
Thermo-O-Disc Incorporated, see Emerson Electric
Company
Thermoplus Aire Incorporated, see Dectron Internationale
Incorporated
Thermo Products LLC, see Burnham Holdings Incorporated
Trane Company, see American Standard Companies
Incorporated
United Technologies Corporation 287
Webco Incorporated, see Nortek Incorporated
Whirlpool Corporation 292
White-Rodgers, see Emerson Electric Company
York International Corporation, see Johnson Controls
Incorporated
Other Companies Mentioned in Study 295
LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 8
2 Population & Households 9
3 Personal Income & Expenditures 15
4 Consumer Financing Environment 19
5 Building Construction Expenditures 21
6 Residential Building Construction Expenditures 24
7 New Housing Units 28
8 Housing Stock 30
9 Residential Improvement & Repair Expenditures 32
10 Nonresidential Building Construction Expenditures 35
11 Nonresidential Improvement & Repair Expenditures 38
12 HVAC Equipment Prices 46
13 US Foreign Trade in HVAC Equipment 51
SECTION III -- HEATING & COOLING FUEL TYPE
1 HVAC Equipment Demand by Fuel 59
2 Electric HVAC Equipment Demand 63
3 Natural Gas-Burning HVAC Equipment Demand 66
4 Heating Oil-Burning HVAC Equipment Demand 69
5 Geothermal HVAC Equipment Demand 71
6 Demand for HVAC Equipment Powered by Other Energy 73
SECTION IV -- HEATING EQUIPMENT
1 Heating Equipment Supply & Demand 78
2 Heating Equipment Shipments by Type 79
3 Heat Pump Supply & Demand 84
4 Heat Pump Shipments by Type 86
5 Air Source Heat Pump Shipments 88
6 Geothermal Heat Pump Shipments 92
7 Warm Air Furnace Supply & Demand 97
8 Warm Air Furnace Shipments by Type 98
9 Natural Gas-Burning Warm Air Furnace Shipments 101
10 Electric-Powered Warm Air Furnace Shipments 104
11 Heating Oil-Burning Warm Air Furnace Shipments 107
12 Boiler Supply & Demand 110
13 Boiler Shipments by Type 111
14 Cast Iron Boiler Shipments by Fuel 113
15 Steel Boiler Shipments by Fuel 118
16 Humidifier Supply & Demand 121
17 Room & Zone Heating Supply & Demand 126
SECTION V -- COOLING EQUIPMENT
1 Cooling Equipment Supply & Demand 131
2 Cooling Equipment Shipments by Type 133
3 Unitary Air Conditioner Supply & Demand 137
4 Room Air Conditioner Supply & Demand 145
5 Chiller Supply & Demand 151
6 Absorptive Liquid Chilling System Supply & Demand 154
7 Dehumidifier Supply & Demand 157
8 Packaged Terminal Air Conditioner Supply & Demand 161
SECTION VI -- MARKETS
1 HVAC Equipment Demand by Segment & Market 164
2 Residential HVAC Equipment Demand 167
3 New Building Residential HVAC Equipment Demand 170
4 Replacement & Improvement Residential HVAC Equipment
Demand 177
5 Nonresidential HVAC Equipment Demand 183
6 New Building Nonresidential HVAC Equipment Demand 186
7 Replacement & Improvement Nonresidential HVAC Equipment
Demand 190
SECTION VII -- INDUSTRY STRUCTURE
1 US HVAC Equipment Sales by Company, 2006 194
2 Selected Acquisitions & Divestitures 213
3 Selected Cooperative Agreements 216
LIST OF CHARTS
CHART NUMBER PAGE
SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2006 31
2 Value of US-Exported HVAC Systems by Destination, 2006 54
3 US HVAC System Exports by Destination, 1996-2006 54
4 Value of US-Imported HVAC Systems by Source, 2006 56
5 US HVAC System Imports by Source, 1996-2006 57
SECTION III -- HEATING & COOLING FUEL TYPE
1 HVAC Equipment Demand by Fuel, 2006 60
SECTION IV -- HEATING EQUIPMENT
1 Heating Equipment Shipments by Type in Value & Unit
Terms, 2006 80
SECTION V -- COOLING EQUIPMENT
1 Cooling Equipment Shipments by Type in Value & Unit
Terms, 2006 134
SECTION VI -- MARKETS
1 HVAC Equipment Demand by Market 165
2 Residential HVAC Equipment Demand by Market 168
3 Share of New Housing Units with a Central Cooling
System, 1996-2006 172
4 Heating Equipment Installed in New Single Unit Housing
by Type, 2006 174
5 Nonresidential HVAC Equipment Demand by Market 184
SECTION VII -- INDUSTRY STRUCTURE
1 US HVAC Equipment Market Share, 2006 196
