Air Conditioner Prices in 2022
There have been many global supply chain changes in the last few years which have left lasting effects on countless industries, including the HVAC industry. Therefore, customers inevitably experience the trickle-down effects of such global events. Fortunately, Magnolia Heating and Cooling is equipped with the information to help best explain the current air conditioner prices in 2022 for those seeking to get their chill on this year.
Heating and Air Conditioning Prices Have Risen
It’s no secret that those who have purchased their AC system prior to 2020 will have saved money compared to those looking to purchase a new HVAC system in 2022. Some manufacturers have increased prices by as much as 38%. In the 71 years that Magnolia has been in business, we’ve never seen air conditioning prices rise so high so quickly.
Historically, new HVAC equipment costs increase between 5 and 10% every year. In 2022, multiple manufacturers have already had multiple price increases due to the various bottlenecks in the supply chain. These increases are not regional or unique to our company; price increases span the entire air conditioning industry to companies of all sizes. In fact, multiple smaller air conditioning companies can’t even manage to find equipment for units this year due to the shortages. Thanks to our quality relationships with our reliable manufacturers and the sheer number of HVAC units and parts that we purchase, we’ve been able to secure both equipment and AC units for 2022.
Air Conditioner Prices in 2022 Will Continue to Increase
In a usual new year, announcements about price increases will occur in the previous year in the middle of December. However, in March of 2022, Trane announced another 10% price increase on top of the December-January announcement effective immediately on their equipment. The same company said that their air conditioner prices would increase another 12% by the end of this year. Other manufacturers like Daikin/Goodman, Lennox, Carrier, and Mitsubishi are expected to increase their pricing to match. At the current rate of increasing prices, new air conditioner prices in 2022 are estimated to be as high as 56% higher. As always, Magnolia Heating and Cooling will continue to provide customers with the best AC deals possible for their needs and availability.
HVAC Systems Made in the USA are Impacted
Air conditioning equipment that is manufactured in China or Mexico faces multiple shipping hurdles when attempting to deliver to America. Even when clearing US Customs, the current labor shortage prevents them from always getting to suppliers intact or on time. Customers and contractors in-turn are then faced with backorder wait times for new furnaces and air conditioning units.
Unfortunately, the equipment and brands that are made in the United States are not much better off. Earlier in 2022, Lennox informed their suppliers of severe supply chain problems that prevents them from getting equipment out on schedule. Lennox representatives have stated that even getting the cardboard boxes for packaging their equipment has been difficult.
Internet Memes Don’t Show the Full Picture
You might have seen one or two memes circulating around social media regarding products made in the United States not getting stuck on cargo ships. However, this is simply not the case. For example, Goodman/Daikin AC, who usually boasts that their equipment is built in the United States, is having a difficult time getting the equipment that they need even though their manufacturing facilities in Texas are primarily supplied from nearby California. That’s because even though their air conditioning units are assembled in the USA, Daikin depends largely on parts that are manufactured in Asia and even in Europe in order to finish their units’ assembly. For these reasons, it’s logical to expect that even domestic air conditioner prices in 2022 will continue to increase.
Air Conditioner Prices in 2022 – Will They Go Back Down?
Nothing will dictate price fluctuations more than supply and demand; this is true regardless if discussing air conditioners or cars. Naturally, there will be other factors at play, but the primary dictator will always be supply and demand. Keeping that in mind, multiple manufacturers have announced that they expect shortages that will go on well into 2022 with little chance for improvements. Several claim that they are also severely understaffed and having a difficult time cultivating a workforce that can properly operate their manufacturing plants. Combined with backlogs at major shipping ports, microchip shortages, and other supply chain delays, it’s no secret that acquiring a new air conditioning unit has become multiple times more difficult for both small-scale and large-scale contractors alike. Therefore, expecting AC prices in 2022 to decrease is unrealistic, though we’d be more than happy to be wrong.
Our Advice Based on Decades in the HVAC Industry
If your home’s central air system is not performing well or you know that you’ll need a replacement sooner than later, do it now. We understand that while we make a living selling air conditioners, there has never been a time when we weren’t upfront and honest with our loyal clients. It’s for that reason that we wish to notify everyone that waitlists, backorders, and price increases are only likely to become worse in the near future.
If you have newer air conditioning equipment, make sure that it is properly cleaned and serviced in order to minimize issues that put you behind the curve. In some instances, critical parts for larger systems approach the cost of some smaller new units. Preventative maintenance is therefore a smart strategy rather than waiting for an emergency repair.
Buying a New Air Conditioner in 2022
We all need air conditioning and heating as the summers get hotter and the winters get colder. Our advice to people looking for a new air conditioning unit in 2022 is not to wait for prices to go even higher. If your system is on its last legs, is older than 15 years, or is difficult to find parts for, don’t think that prices will go down anytime soon. Reach out to Magnolia Heating and Cooling for the best air conditioning and heating information in the industry to find the right solution for your unique situation.