Increasing diversification of HVAC system distribution in PolandMore information on this topic is presented in the PMR report:
When making the decision where to buy HVAC products from, installation companies increasingly turn to local distributors or decide to buy products directly from manufacturers, to a great extent owing to the price factor. As a result, installation companies are less and less dependent on builders merchants, which, however, will remain the leading distribution channel for the HVAC market.
For the purposes of the report “HVAC market in Poland 2016 − Development forecasts for 2016-2021”, the research company PMR conducted the third wave of the survey of more than 300 construction companies whose business involves installation of heating, ventilating or air-conditioning systems. The results of the latest survey show that more than three-quarters of the installation companies indicated wholesalers as the main source to buy HVAC products. Companies specialised in heating and ventilating systems were found to choose wholesalers most often (82% and 76% of responses, respectively). Moreover, smaller companies with up to 10 employees tend to purchase HVAC products from wholesalers (79% of indications compared to 55% of larger companies with at least 10 employees).
However, what can be noted is the increasing diversification of distribution channels and the growth in importance of channels other than wholesalers. One out of every five companies stated that they installed products purchased directly from HVAC manufacturers. This is double the popularity of the category recorded in the previous wave of the survey. Direct purchasing from manufacturers was declared by a staggering 36% of the companies specialised in ventilating work and 34% companies employing at least ten members of staff.
Local distributors are chosen by one out of every five companies surveyed (19%, up 8 pps compared to the previous wave of the survey), with a proviso that as many as 37% of the companies focused on the installation of air-conditioning equipment tend to choose local distributors.
From a global point of view, a competitive price level remains the key factor when deciding to choose a specific place to buy HVAC systems from. This response was indicated by six out of every ten companies surveyed (62%, up 5 pps compared to the previous wave of the survey). Favourable prices is definitely the most important factor taken into consideration by companies which tend to purchase HVAC systems directly from manufacturers (76%). Attractive price levels, underpinned by lower margins, were the main driver behind the doubling of this distribution channel’s popularity over the past three years.
The second most important factor, which affects the choice of supplies, is the large variety of products offered (29%, up 14 pps compared to the 2013 survey). On the other hand, this factor has marginal significance to companies which purchase HVAC systems from the manufacturers (11% compared to 32% for companies buying from local distributors and 29% for those which tend to choose builders merchants).
Almost one out of every four companies choose a specific source of supply because of a convenient location, while one-fifth of them are guided by the quality of products offered. A convenient location is particularly relevant to companies purchasing HVAC solutions from wholesalers (25%) and local distributors (19%), while it has marginal significance to those which purchase HVAC products directly from manufacturers.
As indicated by the results of the latest survey, the heating segment is becoming more and more specialised, i.e. installation companies focus on a single type of business rather than offer a wide range of services that also includes ventilation and air-conditioning.
On the other hand, companies whose core business is the installation of ventilating devices strive to diversify their business – more than half of them are also involved in the installation of air-conditioning (57%) or heating systems (53%).
Interestingly, almost all major ventilation installation companies also offer the installation of air-conditioning systems (95% compared to 56% of smaller companies).
Companies whose core business is the installation of air-conditioning systems are also often active in the installation ventilation systems (75% of the cases). This result comes as no surprise because these two types of work are closely related to each other. Additionally, one out of every three companies (30%) also offer the installation of heating systems.
More information on this topic is presented in the PMR report:
HVAC market in Poland 2016. Market analysis and development forecasts for 2016-2021