Key Trends for P-H-C Contractors to Know in 2025

Plumbing-Heating-Cooling Contractors Association - Staff Award

Economic forecasting is essential for p-h-c contracting businesses as it allows them to plan for market fluctuations, manage costs, and make informed strategic decisions. By analyzing economic trends such as inflation, interest rates, and construction activity, businesses can anticipate demand for new installations, retrofits, and maintenance services, and determine when to invest in expansion, workforce development, or new technology.

Key Findings of the 2025 Environmental Scan:

  • U.S. Economy & Construction: The economy will grow modestly, with residential construction declining until 2027-2028. Nonresidential construction, especially manufacturing, will grow, while office, healthcare, and education sectors will remain stable.

  • Legislative Outlook: Congress will introduce energy, tax, and workforce legislation, with potential budget cuts to Inflation Reduction Act programs.

  • Refrigerant Transition: Starting January 2025, high GWP refrigerants will be restricted. HVAC contractors must follow new regulations, with a similar transition for VRF systems in 2026.

  • Labor Shortages: Labor shortages will persist, requiring contractors to focus on attracting, training, and retaining talent.

  • Private Equity & Consolidation: Private equity acquisitions of plumbing and HVAC businesses continue, creating competition for smaller contractors. Service and employee training will be key to staying competitive.

Read the full document here...