Is Alabama the Best State to Own or Buy an HVAC Company?
Let’s be clear. Alabama is a great state if you want to buy or sell a heating and air company.
Alabama has been a hidden gem for entrepreneurs in the HVAC business, but not anymore. A variety of market forces have propelled the state to the top of the list for aspiring owners.
“It’s a hot market,” says Patrick Lange, business broker with Business Modification Group. “I get calls all the time from buyers wanting to own a heating and air company in the state. As of now, there are more buyers than sellers in the area so I’m actively looking for HVAC owners ready to sell their business.”
So why is Alabama so interesting to HVAC buyers?
In a 2020 article, Area Development Magazine researched markets across the United States and ranked the most business-friendly states to do business. The publication scored states cost of doing business, workforce training programs, and energy costs among other criteria.
Alabama was ranked #6. Pretty impressive.
Lange cites other more specific factors that make Alabama a great place to own or buy a heating and air company. “I’ve always liked Alabama because of the combination of climate and lack of competition.”
The data supports his statement. In major cities like Montgomery, Huntsville, Mobile, and Birmingham, temperatures hit a toasty 90+ degrees in the summertime and freezing temps in the wintertime.
If there is anything 2020 taught us, it’s that people want to be comfortable and are willing to make lots of sacrifices before it comes to being too hot or cold. Advantage HVAC business.
Regarding competition, Alabama has fewer HVAC companies (SIC 1711-17) than neighboring Florida, Georgia, and Tennessee too so there is plenty of room for growth.
- Florida 5,432 HVAC companies
- Georgia 1,884 HVAC companies
- Tennessee 1,424 HVAC companies
- Alabama 1,182 HVAC companies
Another lesser-known advantage of owning an HVAC business in Alabama is the excellent labor pool and state-sponsored Alabama Industrial Development Training (AIDT) workforce training program. With 6 locations around the state, the training facility continually churns out the next generation of HVAC talent. This is a huge advantage of HVAC owners across the state considering finding technicians is consistently among the industry’s top challenges.
The labor is affordable too. According to ZipRecruiter, the average salary for an entry-level HVAC technician is just $28,322 and 4th lowest in the USA. That’s well below the national average of $35,322 and good news for HVAC owner profitability.
Need more reasons to own or buy a heating and air company in Alabama? How about energy costs? Area Development Magazine scored Alabama as the 6th best place in the USA for the cost of energy. That means customers are generous when setting thermostats and using their HVAC units often.
It won’t take much to keep your trucks on the road either, because AAA consistently has Alabama in the top 5 states in gas cost per gallon.
Lange concludes, “I think the secret is out about the opportunity that exists in Alabama for heating and air companies. The owners that are already there are in really good shape when they want to sell their businesses. The demand for ownership far exceeds the supply of companies listed. That usually translates to a fast sale with competitive offers. ”
The data proves the HVAC industry is strong in Alabama and significant potential exists for both owners and sellers. You just have to know where to look for it.
Patrick Lange is an experienced HVAC specific business broker with Business Modification Group based in Horseshoe Beach, Florida. He has a unique background in financial planning and has even owned an HVAC business himself. This makes him well suited to working with some of the most successful HVAC business owners in the country. Specializing in companies with 1-10 million dollars in revenue, he maintains a network of buyers and sellers in the industry. He has sold more HVAC businesses than any other broker in the United States over the last 12 months and is currently the Vice President of the Business Brokers of Florida (North Florida District.)