In the recent years, Heating, Ventilating, and Air-Conditioning (HVAC) business has witnessed an exponential demand in the market followed by a significant ripple effect that has left many professionals and business owners wondering about the future of their trade. A central issue is the undervaluation of HVAC services, threatening the profession’s pride and standing. The consequences of losing the trade pride, and the need for a collective effort to restore the industry’s dignity is the need of the hour. To comprehend the key factors contributing to the under valuation of HVAC services particularly in India, it is imperative to deep dive into the subject matter.
The Shift to Semiliterate and Untrained Labour
One of the key causes of undervaluation of HVAC services is the growing trend of hiring undereducated and unskilled workers in the industry. This shift has been driven by the desire to cut the labour costs and enhance profitability. While the intention is to reduce employee expenses, the outcome turned into a compromise on the work quality.
Unskilled labourers do not possess the necessary training and adequate expertise to perform complex tasks efficiently, leading to subpar results and a negative impact on the industry’s reputation.
A recent survey conducted in India revealed that nearly 88% of HVAC contractors, dealers and service providers have resorted to hiring least educated and unskilled individuals to fill gaps in their workforce. This trend is particularly prevalent in small to medium-sized enterprises, where the pressure to reduce costs is often more pronounced. While these companies may enjoy short-term benefits, the long-term consequences of this approach are far from desirable.
To make matters worse, the lack of skilled labour has led to a brain drain in the industry. This brain drain has not only resulted in a shortage of skilled labour – but also in the declination in the industry’s overall work quality. The compromised work quality delivered by semiliterate & undereducated technicians, including inferior installations, maintenance, and repairs have resulted in posing the risk to consumers & end-users, who are continuously exposed to substandard services.
Economising to Win Orders
Another significant contributor to the under valuation of HVAC services is the practice of compromising on profit margins by HVAC organisations to bag orders. In a bid to outcompete their rivals, many HVAC contractors, dealers and entrepreneurs are sacrificing their profit margins to secure contracts. This approach seems appealing in the short term, but ultimately it is leading to a brutal cycle of cutting corners and sacrificing job quality.
A study conducted found that nearly 72% of HVAC companies have reduced their profit margins in the last two decades to stay competitive. This trend has become widespread across various sectors. However, this is not healthy – particularly to the HVAC industry as the consequences of this approach are severe.
When companies sacrifice their profit margins, they are forced to compensate by reducing the job quality. The practice of degrading job quality includes using inferior quality materials, compromising on installation standards, and even taking short cuts during maintenance & service. When consumers or end users receive such poor-quality services, they are put at risk, and as a result, their trust is damaged, making it challenging for companies to retain them. As a result, the industry’s reputation suffers over time.
The Underpaid Technical Staff Attrition
The underpayment of technical staff is another critical factor contributing to the under valuation of HVAC services. In a race to cut down manpower costs, many HVAC companies are paying their technical staff minimum wages and offer subpar benefits. This approach seems appealing, but it has severe consequences, including a brain drain and a lack of skilled labour.
A study conducted found that nearly 85% of the most privileged and eligible HVAC technicians reported feeling underpaid and undervalued in their roles. This sentiment is echoed by many industry professionals, who argue that the lack of fair compensation is a major contributor to the industry’s brain drain. The impact of underpayment is affecting not only the individual technicians but also the industry.
When technical staff feel undervalued, either they change their profession or else they turn up into immature contractors. Experienced technicians, who are essential to delivering high-quality services, are leaving the sector in masses due to the lack of opportunities and fair compensation, taking their skills and expertise with them. This migration has created a vacuum that is being filled by unskilled labourers, further exacerbating the under valuation of HVAC services.
The Neglect of HVAC Consultants
In the world of building construction and design, there are only two professionals who are highly respected by building owners and HVAC consumers. These two professionals are none other than architects and the interior designers whose services are mostly prioritised over those of other experts, including HVAC consultants.
This prioritisation is given to architects and interior designers because of giving importance to aesthetics and building looks. Building owners and consumers are often willing to spend large sums of money on fancy interior designs and high-end finishes, but they often neglect to consider the significance of HVAC services.
HVAC consultants are experts responsible for designing and overseeing the installation of heating, ventilating, and air-conditioning systems. They play a crucial role in ensuring that buildings are safe, healthy, and environmentally friendly.
HVAC consultants, have the specialised knowledge and expertise to design and check HVAC systems installation that are efficient, reliable, and safe. They are trained to consider factors such as building size, layout, climate, and occupancy levels when designing HVAC systems, ensuring that the system is tailored to the specific needs of the building.
They are also familiar with local building codes and regulations. HVAC systems designed and commissioned by consultants can guarantee an energy saving of up to 40% or even more compared to those that were not. This is because HVAC consultants are trained to identify and eliminate energy-wasting opportunities in building design and operation.
However, despite their significant contributions, HVAC consultants are frequently undervalued by building owners and imprudent consumers because of giving more preference to Architect & Interior designers. Despite the significant role played by an HVAC consultant in delivering high-end HVAC system designs, they are given least priority in the construction sector because of the narrow-minded building owners as they treat the consultation fees as an unnecessary expenditure.
The consequences of ignoring the importance of hiring qualified and practised HVAC consultants is mostly overlooked initially. Because of this conservative minded approach of the builders, unprofessional local contractors who lack basic knowledge about HVAC systems are appointed in exchange to designing the HVAC system free of cost. Builders & consumers feel that by avoiding the appointment of an HVAC consultant for their project, they save a huge amount of money. But the fact is that by avoiding the appointment of HVAC consultant for their projects, they invite lifetime troubles.
A recent survey revealed that 91% of architects and 95% of interior designers acknowledged that they lack the necessary knowledge and skills to properly design and oversee the installation of HVAC systems. This deficiency in understanding often results in poor HVAC system choices, unreliable designs, and can even pose health risks to occupants.
Many luxury property owners invest significantly in interior design packages, yet fail to allocate even a modest budget for a well-designed and properly installed HVAC system. Consequently, numerous buildings face escalating energy costs, frequent equipment malfunctions, and ongoing health issues stemming from subpar indoor air quality. When a property owner engages a contractor to create his/her HVAC system and relies on architects or interior designers for HVAC-related decisions, he/she often ends up with a system that is inadequately chosen and installed, resulting in soaring energy expenses and recurring equipment breakdowns.
Unsuspecting consumers and property owners tend to blame the HVAC system and underestimate the value of HVAC services due to their negative experiences with inefficient system performance, which is often the result of the misguided actions of inexperienced contractors, architects, and interior designers.
The Rise of Unqualified HVAC Contractors
Regrettably, the transition of skilled and qualified technicians has resulted in an increase in unqualified HVAC contractors. These proficient technicians, upon realising they are not receiving fair compensation, often enter the market with minimal financial investments. They foster trust with clients through their local connections and relationships, attempting to secure contracts directly from consumers without possessing essential infrastructure. A study revealed that 62% of HVAC contractors indicated they do not have the required tools and equipment for HVAC maintenance or installation.
This deficiency in tools and instruments results in HVAC systems that are inefficient, unreliable, and potentially dangerous. Employing financially unqualified HVAC contractors can pose significant risks for building owners and consumers alike. Furthermore, unqualified HVAC contractors are unable to provide the necessary documentation and certification for HVAC systems, which exacerbates the problem and leads to compliance challenges.
Negating System Commissioning Agent’s Role
The commissioning of HVAC systems in a building guarantee that heating, ventilation, and air conditioning units are properly installed, calibrated, and functioning as designed. In the absence of this oversight, these systems are more prone to underperformance, frequent breakdowns, and ongoing corrective maintenance. Typically, building owners and HVAC users tend to forgo hiring a commissioning agent, viewing this step as an unnecessary expense. When HVAC commissioning is overlooked, several common issues can arise: inadequate airflow, inconsistent temperatures, excessive energy consumption, failure to meet ventilation requirements, and premature wear on equipment.
These complications can diminish occupant comfort, lower indoor air quality, and increase utility-maintenance expenses. Consequently, building owners and managers may find themselves dealing with repeated service calls, emergency fixes, and possibly the need for partial or complete system replacements sooner than anticipated. While the decision to not hire a commissioning agent for an HVAC system in a building is ultimately the consumer’s choice – a conscious decision – the negative consequences of this choice are often attributed to the HVAC system itself.
Conclusion
The under valuation of HVAC services is a pressing concern that requires immediate attention by the industry professionals and business owners. The shift to undereducated and unskilled labour, the practice of compromising on profit margins, and the underpayment of technical staff are all contributing factors to this phenomenon.
To restore the industry’s integrity and regain customer trust, HVAC companies must adopt a holistic approach that prioritises job quality, skill development of technical staff, and fair compensation. This may involve investing in training programs, increasing wages & benefits to technical staff, and enhancing the quality of work.
The consequences of under valuation are severe, affecting not only the industry but also the consumers who rely on these services. By working together to address this issue, HVAC professionals and business owners can restore the industry’s integrity, regain customer trust, and ensure the long-term sustainability of the sector.
In conclusion, the significance of HVAC consultants cannot be overstated. Building owners often underestimate the role of HVAC consultants in their projects and, as a result, fail to hire certified professionals. This oversight often traps them in a cycle of poor decision-making. Instead, they should seek qualified and experienced HVAC consultants who can design and install systems tailored to the specific needs of the building. Builders and HVAC consumers should move away from a mindset of mediocrity and engage the right consultant for their projects or buildings.
Many consumers fail to ask for references or case studies from previous clients and neglect to verify the experience of their chosen contractor. By depending on unqualified local contractors for the design and selection of HVAC systems, building owners and HVAC consumers risk not receiving value for the money they invest in their projects.
Prioritising aesthetics over functionality and hiring unqualified HVAC contractors can lead to systems that are inefficient, unreliable, and potentially hazardous to occupants’ health. Additionally, building owners and consumers should consider hiring a commissioning agent to oversee the installation and testing of the HVAC system. By taking these steps, they can ensure that their buildings are not only visually appealing but also functional, efficient, and safe for occupants.
S. Rao holds a degree in Mechanical Engineering and has penned several technical books. With a rich background of 27 years in the HVAC field, he has worked both in India and abroad, notably in Bahrain. He has been designated as a Certified Energy Manager by the Bureau of Energy Efficiency, and also qualified as a Certified Engineering Professional by ISHRAE. In addition to his professional engagements, Rao has imparted his knowledge and insights through numerous distinguished lectures to various chapters of ISHRAE and AEE western region focusing on HVAC systems & energy conservation strategies.
