Service Lifecycle Management For HVAC And Controls: Competition Heats Up For Service Contracts

The battle continues for service contracts in the HVAC and Controls markets. The rules of competition have changed for companies servicing heating, ventilation, and airconditioning (HVAC) and related control systems over the last several years. The clean separation between installing and maintaining the mechanical components of the equipment — such as air handlers and chillers — and the control systems has dissolved. The customer now has more options for service. Mechanical contractors are competing with controls providers, controls technicians are competing with mechanical contractors, and increasingly everyone is competing with manufacturers who are beginning to capitalize on their product lines to offer service for their own equipment — and for equipment from others.

Increased competition is good for service customers, particularly for industrial customers and large chains. These larger customers can now benefit by consolidating their service spending to a smaller number of suppliers. By working with fewer suppliers, they can gain economies of scale and contract negotiating leverage. Beyond cost advantages, the customer can now expect to gain a more consolidated view of their operations and service needs by looking at service trends, spending and performance across multiple sites and types of equipment.