Page 26 - Climate Control News magazine March 2022

Commercial Air Conditioning
Falling revenues
Rdue to COVID-19
Over the past few years industry profit margins have narrowed.
COVID-19 HAS HAD A SIGNIFICANT IMPACT ON AUSTRALIA’S AIR CONDITIONING AND HEATING MARKET WITH REVENUE SET TO FALL 7.5 PER CENT DURING THE 2021/22 FINANCIAL YEAR.
ESEARCH FIRM IBISWORLD the installation of sophisticated climate-control predicts revenue will fall to $8.4 bil- systems in large-scale non-residential building lion this financial year due to weak- and apartment developments,” the report said. er demand for industry services on “The economic fallout from the COVID-19 pan- new building projects. demic is expected to contribute to a significant
According to a report entitled ‘Reverse Cycle: decline in the industry's performance leading to a
The effects of the COVID-19 pandemic have re- duced industry revenue’ most industry revenue is derived from installation and maintenance work in the non-residential property market, al- though the apartment construction market is emerging as an important source of demand.
“For much of the past five years, the industry's performance has been supported by demand for
decrease in industry revenue at an annualised 2.8 per cent, over the five years through 2021-22.”
The report noted that this includes an antici- pated decline by 7.5 per cent during the current year in response to the contraction in building construction and the subsequent decline in de- mand for the installation of heating, ventilation and air conditioning (HVAC) systems.
CLIMATECONTROLNEWS.COM.AU
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