Fuel Oil News

Fuel Oil News February 2017

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www.fueloilnews.com | FUEL OIL NEWS | FEBRUARY 2017 37 international markets. The residential, light commercial, heavy commercial, schools, lodging and international market catego- ries all received a greater percentage of "excellent" ratings when compared to 2016's survey. Additionally in comparison to 2016's responses, the non-school institutional, manufacturing/ industrial, hospitals/healthcare and restaurants/hospitality mar- kets all received a higher percentage of "good" ratings for 2017. Overall, the light commercial market was identified as offering the most promising outlook for 2017, with 74% of respondents rating it as excellent or good. The hospitals/ healthcare market followed, receiving a combined total of 71% excellent and good ratings, and the heavy commercial market came in at a close third, with a combined 70% of excellent and good ratings. Laboratory and cleanroom applications repre- sented the category of least anticipated growth next year, with less than half (46%) of respondents indicating either an excellent or good business outlook in its regard. Respondents were also asked to weigh in on the anticipated importance of energy efficiency, indoor air quality (IAQ), main- tenance, first costs, sustainability, reliability and comfort to their customers in 2017. Reliability led in significance, with 77% of respondents denoting it as "very important" to custom- ers, reflecting similar results from survey respondents in 2016. While the previous year's survey reflected a 10% higher (87%) response regarding reliability as "very important," this year's sur- vey denoted a 10% jump in "somewhat important" responses, equating to the same number of combined respondents indicat- ing reliability as either "very" or "somewhat" important for both 2016 and 2017. From this, it is expected that manufacturers will continue to engineer product and systems solutions to deliver on improved reliability in the coming year. Of additional significance was maintenance, first costs and energy efficiency, which received combined "very" and "some- what" important responses of 98%, 96% and 92%, respectively. Within these categories, there was a 3% increase in those indi- cating first costs as "very important" when compared to the previous year's survey results. Indoor air quality (IAQ) followed with a combined 89% of respondents indicating this category as either "very important" (48%) or "somewhat important" (41%) to their customers in 2017. Most notably, 12% more respondents denoted IAQ as "very important" for 2017, when compared to 2016 survey results. IAQ is subsequently expected to be a category of keen interest, and one on which manufacturers will place an increasing emphasis around research and development in the coming year. Sustainability and comfort, with combined "very" and "somewhat" important respective percentages of 88 and 87, rounded out the responses regarding factors of importance for customers in 2017. When compared to 2016 survey results, sus- tainability increased in overall importance (i.e. combined "very" and "somewhat" important responses) by 6%, while comfort slightly decreased in overall importance by 3%. Similar to years past, this survey's results indicated contin- ued industry growth as 61% of AHR Expo exhibitors said they planned to introduce a new product at the 2017 Show in Las Vegas. Additionally, 43% of respondents shared that the new products they introduce would in some way improve energy efficiency. Provided with the opportunity to share their thoughts in an open-ended answer to the question "What do you see as the most important trend or issue in the HVACR industry," respon- dents were candid in sharing a variety of opinions. While the range and scope of answers was wide, 36% of respondents were unanimous in their belief that energy efficiency remained a key focus for 2017. This reflects a similar trend in survey responses for 2016, and is anticipated to indicate further advancements across the HVACR manufacturing landscape around improved efficiency performance. In a similar vein, several respondents indicated sustain- ability and emissions reduction as important areas of focus in the coming year. One respondent particularly indicated the importance of keeping efficient equipment and overall build- ing operations running properly, so that mechanical systems can operate at the optimal levels originally intended by the mechanical engineer. Fifteen percent of open-ended responses in some way addressed the issue of connectivity, improved equipment inte- gration and technology platform protocols, and the increasing role played by the Internet of Things (IoT) across the HVACR indus- try. Within these, specific remarks were made on the importance of advancing smart controls, and capabilities such as occupancy- sensing/controlled mechanical systems, in the coming year. Customer concerns around first costs were indicated by 11% of respondents as a major issue for 2017, with particular responses addressing: the balance between quality and cost- effectiveness; the need for clearly defined return on investment (ROI) calculations; and cautionary measures regarding cheaply produced products and parts. An additional 9% of respondents shared their belief that recruiting the next generation of HVACR industry professionals, as well as ensuring their proper education and training, would be of utmost importance as a focus for the coming year. Recognizing the impact of the U.S. economy and political landscape on the HVACR industry at-large, 13% of respondents remarked on governmental regulations, a revitalized economy, and the results of the 2016 U.S. presidential election as expected to notably affect the industry in 2017. Further factors such as fuel costs, the reliability of the U.S. util- ity grid, increased application of heat recovery, VRF and ductless systems, movement from tube-and-fin to microchannel solutions, and increased awareness/use of push-to-connect fittings were also mentioned as important trends for the coming year. The International Air-Conditioning, Heating, Refrigerating Exposition (AHR Expo), began more than 85 years ago as a heat- ing and ventilation show, and is now one of the world's largest HVACR events. The Exposition is held annually in key markets and major cities across the U.S., hosting close to 2,000 exhibitors and drawing approximately 60,000 industry professionals. The Show provides a forum for the HVACR community to share new products, technologies, and ideas. The event is co-sponsored by ASHRAE and AHRI, and is held concurrently with ASHRAE's Winter Conference. l F O N International Exposition Company (IEC) is a Westport, Conn.- based trade show management company.

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