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Will the price increase of central air conditioners become an irrefutable fact in 2021?
Jan 13,2021 14:27CST
The content below was translated by Tencent automatically for reference.

With the improvement of housing economic conditions, most consumers advocate the installation of central air-conditioning products, after all, central air-conditioning fashion, beautiful, can coordinate with a variety of decoration styles. Even if the middle households have a lot of rigid demand customers with limited decoration budget, the most basic will choose customers to install duct machine products. But consumers don't understand! Why did the price of equipment go up? Increase in the price of installation materials? So does the price increase mean that these manufacturers are really making more money? We might as well take a look at the market information of the relevant industries first.

Raw materials rise

In addition to the original relationship between supply and demand in the market, environmental protection has also contributed to the increase in the price of various raw materials in 2020. Spare parts enterprises of core components such as compressors, motors and heat exchangers have raised prices one after another. Even refrigerants that were previously unnoticed are starting to rise in price.

In the upstream trend of rising prices of raw materials, the profits of the upstream and downstream of the central air conditioning industry will also be affected. First of all, the production cost of central air-conditioning equipment manufacturers will increase; secondly, if the price of raw materials continues to rise, it will also cause some pressure on the procurement costs and cash flow of enterprises.

Installation materials rise

Copper is the main material for the installation of central air conditioners. But the best part of the rise in copper prices went on and on: from April to December 2020, copper prices rose by 45%, according to the data. In January 2021, copper prices skyrocketed again, and on January 8, copper prices exceeded 60,000!

It is no secret that the price of non-ferrous metals has skyrocketed this year, even one price a day in the market, but the increase in the cost of copper is self-evident when it is widely used in HVAC equipment.

The cost of installation process is rising.

With the national advocacy of environmental protection and energy-saving policies, central air-conditioning equipment is constantly upgrading. At the same time, it also puts forward higher requirements for the installation technology of air conditioners.

Fashionable, beautiful, high-quality air-conditioning installation technology is the premise of energy-saving, power-saving and long-term air-conditioning equipment. It is also to meet the needs of consumers for quality and comfortable life. The industry needs innovative installation process, innovative installation process needs high quality and leading products and technology to achieve, so the second reason for the price increase is the increase in process costs.

Labor costs go up.

As the national and industry standards for the installation of central air conditioners become more and more standardized, the already scarce air conditioning installers have become more and more difficult. However, only by training standardized installation craftsmen can we standardize and standardize the installation and ensure the safety of people in high-risk industries. therefore, the labor cost of air-conditioning installation will also rise.

In addition, when it comes to the peak installation season, the number of air-conditioning installations increases sharply. Installation workers have a heavy workload, and labor costs will rise as well.

The significance of price increase: with the deepening of the national "supply-side" reform, consumers have paid more attention to product quality, functional satisfaction and experience services than simple price or promotion.

The sharp rise in the price of raw materials has enhanced the urgency of upgrading the product structure of enterprises. There is an abnormal situation of great differences in sales prices between different brands in the air-conditioning industry. A reasonable increase in prices is conducive to the return to rationality of industry competition, is conducive to the optimization and adjustment of product structure, and is conducive to the transformation of air-conditioning manufacturing enterprises and circulation channels from their business focus to the structure of high-value products.

Air conditioners
rising prices

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