For the first time since Homesense has been around, our equipment suppliers are raising prices in the middle of the season.
We’ve been advised of a 4-6% increase in equipment cost across the board for the most expensive things home owners purchase, which will mean hundreds of dollars more on each new piece of equipment replaced by our team moving forward.
For homeowners with older systems close to failure, we are strongly encouraging them to consider making a purchase in June to avoid these frustrating increases in prices.
Why is it happening?
The steel and aluminum tariffs being enacted by President Trump seem to be the sole driver for this unprecedented mid-season price increase. His rationale is that “Our friends and enemies have taken advantage of the U.S. for many years. Our steel and aluminum industries are dead.”
The particulars of these tariffs that hit HVAC, largely directed at China (now Mexico and Canada), are detailed out from the ACCA (Air Conditioning Contractors of America) here. The entirety of the tariff language can be found here.
No one loves change. The decline of US manufacturing is well documented, and has impacted the U.S. in permanent ways. Protectionism isn’t the answer. While under the premise of helping, this move will in fact hurt many people in the steel and aluminum industries, the users of steel and aluminum in equipment and parts, and ultimately end-users will pay the bill. Creative destruction through a free market is an unfortunate consequence of innovation, and while there may be an active role for government to play to lessen its impact, contraction is a necessary and healthy part of an efficient economy.
While we as Homesense have little platform to impact this move, we want all homeowners (Homesense customers or not) to understand the price increases quickly on the way.
Have any questions? Call us at 317.670.0171