How Does the R-22 Phase Out Effect You?

April 11, 2017
3 min read

A recent article on talked about a hot topic for HVAC companies these days: the R-22 phase out. The elimination of production of R-22 is now only two years away.  This coolant has been linked to ozone layer damage and is being substituted by more environmentally friendly alternatives.

What does this mean for the HVAC industry and your business?

Supply and demand: The price to repair an R—22 AC has risen as the production of this coolant slows.  By the year 2020, there will be no production of R-22 making the demand for this product completely outweigh the supply. Some contractors are stocking up on the refrigerant at today’s price to ensure they have access to the product and a stable price – until the supply runs out. Availability is becoming an issue. You must have a plan B.

Repair or replace/keep consumers informed: It is up to the contractors to educate their customers on the long-term vs short-term costs so they can make informed decisions on whether investing in a new, more environmentally friendly system would be the best choice.  Replacing the whole system would be more costly than simply repairing it, but consumers must be aware of the environmental issues with R-22, its decreasing supply, and the end of its availability in just a few short years. While reclaimed R-22 refrigerant will still be available, it will be in high demand, and its cost will be high. Ultimately, the R-22 phase out shows the evolution of the HVAC industry. New products are better and safer.

Prospective sales for contractors: The end of R-22 allows for great upselling opportunities.  Customers who are in need of recharges may be persuaded to replace their system with a new, environmentally friendly piece of equipment. Obviously, the R-22 phase out gives contractors a great opportunity to upsell. Walk into a repair; walk out with a new install. Government regulation, supply and demand, and environmental concern support replacement. When you educate your customers about this industry shift, they will recognize the need to follow. It’s not simply upselling, but rather making the move now rather than later.

How is your company responding to the R-22 phase out? How are your customers responding? Are you taking advantage of the opportunity for new system sales, or devising a way to support R-22 demand? Whichever way you decide to go, a comprehensive field service management software offers the resources you need to run a successful contracting/service business. From marketing assistance to increased customer visibility to all the hot leads that will increase your revenue, the right software can be your business toolbox.

Contact FIELDBOSS to learn more.

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