Market Intelligence
2025 State of the Channel: Voice of Contractor Survey Highlights
February 20, 2025 | 3 minute read
Procurement Patterns in HVACR: Analysis from HARDI's 2024 Voice of Contractor Survey
The 2024 HARDI Voice of Contractor survey, conducted in October-November 2024, gathered responses from nearly 1,100 contractors across the United States, offering a comprehensive view of how contractors approach their distributor relationships and purchasing decisions.
Channel Distribution Dynamics of HVACR Contractor Purchases
Analysis of contractor purchasing patterns reveals the continued dominance of wholesale distribution, with defined variations between market segments. Survey respondents indicate that 82 percent of their residential HVAC purchases flow through wholesale distribution, whereas wholesale distributors receive just 63 percent of their nonresidential HVAC purchases. Contractors serving the nonresidential market rely less on wholesale distribution and rely far more on manufacturer-controlled options (e.g. factory-owned and direct). They also match the buying rates of residential contractors in the purchases made through online marketplaces and big box/retail stores. When investigating the use of different purchasing channels, we found that contractors mainly resort to their distributors for routine purchases but may opt for additional sources for special circumstances.
One residential service contractor said:
HVACR Distributor Relationship Patterns
More than half (51 percent) of nonresidential contractors responding to our survey report making purchases from 5+ distributors, while 55 percent of residential contractors purchase from 3 to 4 distributors. Overall, contractors demonstrate a strong preference for maintaining multiple distributor partnerships, with 83 percent working with three or more suppliers and one-third engaging with five or more distributors.
HVACR Contractor Purchase Concentration
Despite maintaining multiple supplier relationships, contractors typically aren’t splitting their purchases evenly across their networks. The average contractor places 68 percent (68 percent for nonresidential and 65 percent for residential) of their purchases with their primary distributor, indicating they still recognize the value of having a main strategic partner while maintaining alternative sources. This concentration of spending with primary distributors likely helps contractors balance the benefits of preferred pricing and service levels while maintaining flexibility through secondary relationships. This mirrors patterns seen in HARDI's Voice of Distributor research, where we found that distributors are broadly committed to their primary suppliers, while still recognizing the need to mitigate risks from being overly reliant on a single supplier.
One distributor noted:
Looking Ahead: HARDI's State of the Channel Report Insights
Where and why contractors make their purchases have significant implications for HARDI members. For a deeper understanding of these trends and additional insights from the Voice of Contractor survey look for HARDI's comprehensive 2025 State of the Channel report.
The Voice of Contractor survey is part of HARDI's ongoing commitment to providing members with actionable market intelligence. The complete findings and analysis will be available in the 2025 State of the Channel report.
Order Your Copy of HARDI's State of the Channel Report
Grace Helser
As a Research Analyst on HARDI's Market Intelligence team, Grace leverages her education in business and economics from the Ohio State University to provide industry insights and benchmarking programs for HARDI membership. She has a strong foundation in analysis and statistical methods, which she utilizes through in-depth survey work to develop comprehensive membership insights.
