Saturday, 24 December 2016

HVAC Industry: SWOT Analysis



STRENGTHS:
·         Generally, the consumers across the world regard HVAC as a 'must-have' in most segments in the global markets. It has direct relation in improving the productivity of the users and profitability of commercial sectors. Therefore, HVAC is one of the CORE industry globally.
·         The importance of HVAC to some important business sectors:-
                      I.        IT Sector
                    II.        Telecom Sector
                   III.        Hospital Sector
                  IV.        Food Industry
                   V.        Real Estate & Infrastructure

WEEKNESS:
·         Almost 70% of the building energy cost can be attributed to AC system.
(Infact, this creates an opportunity in a new sector i.e. HVAC control closely related with Building Automation- HVAC Control, Fire Detection and Alarm System, Access Control System and CCTV Surveillance System, Public Address System, Gas Suppression System)

·         Initially a huge investment of around 20% of the cost of the building in HVAC equipment
·         Skilled man-power in HVAC Design and Drafting is scarced.
·         Un-balanced demand due to different geographical locations for eg. Major focus on Refrigeration/ AC in countries like India, whereas focus on Heating in economies like Canada
·         Generally organizations consider AC and Heating as LUXURY
OPPORTUNITY:
·         Global HVAC industry is expected to grow consistently at the rate of 5 ~ 6% annually for the next 05 years
·         In all major regions of the world, the industry is yet to be matured and therefore there is a huge demand of HVAC equipment.
·         The present growth rate has a potential to match the growth of global IT industry
·         The current scenario will lead to the development of more Energy efficient HVAC equipment, globally
·         New opportunities are emerging due to concepts like Green Building, Carbon Credits, Energy Recovery, Building Management System, District Cooling etc
·         Convergence of various disciplines like Mechanical, Electrical, Architecture, Civil, Electronics, IT and Instrumentation, leading to new & exciting careers

THREATS:

·         Use of Chloro Fluro Carbons (CFC) as refrigerants has now resulted in an Ozone hole thereby threatening the environment
·         Growth is directly related to sectors like Real Estate development
·         Global Warming & Pollution through excess carbon release are some of the other aftermaths
·         Soaring Energy cost can bring in uncertainness in the growth pattern
·         Man power shortages on account of Multi-disciplined job requirements in HVAC industry

For more information Kindly contact Ms. Usha Nishad @ Sofcon Group, 9873630785

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