The recent supply chain shortages have led to price increases and longer lead times on HVAC supplies. HVAC contractors rely on the global supply chain and there are delays in shipping because of the lack of workers. Seven percent of manufacturing labor was lost due to COVID-19, and not replenished after last summer’s shutdowns. Specialty products like control boards have a lead time of three weeks or longer.

To make things worse, price increases on raw materials like copper, steel and aluminum have doubled in price. Specialty products like control boards that involve semiconductors have increased in price 10-30 percent. Major manufacturers have announced prices increases 5-9 percent.

· Communicate with customers. When talking to customers, contactors should discuss product availability and timing of when the product will come in. If a delay in shipping happens, the contractor should be transparent with the customer. Most customers are understanding, as they are already familiar with shortages affecting other areas of our economy. 

· Build your relationship with your suppliers. Distributors lead times are at an all-time high since the 1980s. Collaborating with suppliers directly to understand lead times and prices increases will help ease the effect of these shortages. Contractors that identify a supplier that has product in stock can ease the inconvenience of having to wait for product. Contractors can build relationships with new suppliers to make sure to have the product for their customers.

· Order and stockpile product. Contractors are ordering product like filters and stockpiling them for when they need them. But the contractor needs to be cautious to ensure they do not get stuck with extra product.