November Franchise Discovery Newsletter: The Recession-Resistant & Lucrative World of HVAC and Plumbing
- Ruth Terray
- Nov 13, 2024
- 4 min read
Updated: May 5
In a challenging job environment more people are turning to entrepreneurship and franchising. In this newsletter we take a deeper look at recession resistant franchises like HVAC and Plumbing.
Read more in our November 2024 newsletter.
The Franchise Discovery Vol. 16
The Recession-Resistant & Lucrative World of HVAC and Plumbing
Few businesses are as indispensable as local plumbing, heating, and air conditioning companies. Especially in areas with extreme climates like Arizona, Nevada, Florida, and Texas — known for having some of the hottest cities in the United States. Phoenix experienced an average summer temperature of 99°F in 2024. Situated in the desert and affected by the urban environment, the city had 113 consecutive days of temperatures exceeding 100°F in 2024. Additionally, there were 70 days exceeding 110°F. In such conditions, a functioning air conditioner isn't just a comfort—it's a necessity for survival. As a needs-based, recession-resistant, essential service, these businesses have gained the attention of entrepreneurs.
A New Class of Millionaires Emerging
Private equity firms have been increasingly targeting skilled trades companies like HVAC, plumbing, and electrical businesses for acquisition and consolidation. According to the Wall Street Journal, private equity investors have acquired nearly 800 companies in these industries since 2022.
This wave of investment is giving rise to a new class of millionaires across the country, significantly boosting the attractiveness of careers in the skilled trades.
This influx of capital is reshaping the industry, as small-business owners capitalize on opportunities to scale their operations and reach wider markets. The trades are now being viewed not just as stable professions but as potential launching pads for those with entrepreneurial aspirations. As Brian Rassel, a partner at Huron Capital, stated in the Wall Street Journal, “You don’t need to go to Silicon Valley to have a successful career and entrepreneurial opportunities.”
The rising interest in skilled trades is also reflected in education trends. The National Student Clearinghouse Research Center reported a 16% increase in enrollment at vocational-focused community colleges from 2022 to 2023. Fields such as HVAC repair and installation are seeing significant upticks in young people pursuing these careers.
The Vital Role of Essential Services in Extreme Climates
Especially in hot states, reliable plumbing and HVAC services are crucial. Residents depend on these systems to maintain comfortable and safe living conditions. When an air conditioner fails in the peak of summer heat, or when plumbing issues disrupt daily life, skilled technicians are the heroes who come to the rescue.
Plumbing and HVAC businesses are considered recession-resistant. No matter the economic situation, people need functioning plumbing and climate control in their homes and businesses. This constant demand provides a stable foundation for business owners—even during economic downturns. Yet many people still overlook the potential in these industries, often focusing instead on more traditional sectors like food or fitness.
Summer 2024 Was Hottest to Date
NASA's Goddard Institute for Space Studies revealed that August 2024 set a new monthly temperature record, making the summer of 2024 the hottest since global records began in 1880. “Data from multiple record-keepers show that the warming of the past two years may be neck and neck, but it is well above anything seen in years prior,” said Gavin Schmidt, director of the institute. This trend has increased the demand for efficient cooling systems and reliable HVAC services.
No Experience, No Problem
One of the advantages of owning a plumbing or HVAC franchise is the ability to hire licensed tradespeople to perform the work. Many franchisees who are new to the industry choose to bring on a General Manager who holds the license and supplies the technical knowledge. The franchise system provides the support needed to recruit and retain skilled technicians, ensuring that your business delivers high-quality services.
Building a Business Empire
As climate change continues to drive temperatures higher, the demand for reliable plumbing and HVAC services will only intensify. This growing need presents a unique opportunity for entrepreneurs to make a significant impact while building a profitable, recession-resistant business.
Franchises like Benjamin Franklin Plumbing and One Hour Heating & Air Conditioning offer a clear pathway to success in these essential industries—even without prior technical experience. With the home services market projected to exceed $1 trillion by 2026, there's significant growth potential. By hiring licensed professionals and leveraging the training, support, and brand recognition these franchises offer, you can focus on growing your business and meeting your community's needs.
Seize the Opportunity
If you're ready to take the next step toward business ownership in the skilled trades, now is the perfect time. The combination of increasing demand, technological advancements like AI, and the support of reputable franchises creates an environment ripe for success.
Don’t miss out on the chance to build a business that not only offers substantial financial rewards but also provides essential services that truly make a difference in people’s lives.
Get Started with The YOU Network
At The YOU Network, we're here to guide you through every step of your franchising journey. Whether you're interested in plumbing, HVAC, or another sector, our experts can help you find the perfect opportunity to match your goals and strengths.
Join the ranks of successful entrepreneurs making a difference in their communities while securing their financial future. The tools, support, and opportunities are within your reach—embrace the possibilities and start building your business empire today.
Download the November Franchise Discovery newsletter below!
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