[PRICING] PPI Report: HVAC Input Costs Are Climbing Again
The March Producer Price Index shows HVAC material costs picking up steam after a brief flat stretch. Aluminum mill shapes jumped 34.1% year over year and 1.2% in a single month; copper and brass mill shapes are up 21.3% YoY. Finished HVAC equipment prices held roughly flat in March, but analysts say that gap between stable sticker prices and rising input costs won't last — manufacturer price increases are already stacking up for April and May.
⚡ Why it matters: Your distributor's prices are about to move. If you've got jobs quoted without escalation clauses, you're eating the difference between what you bid and what the equipment actually costs when it ships.
🔗 ACHR News (~3 min read)
[PRICING] Section 232 Shake-Up Hits HVACR Imports Hard
New Section 232 tariff rules that took effect April 6 changed how duties are calculated on steel, aluminum, and copper — and HVACR contractors are feeling it. HVACR products from Mexico previously faced an effective tariff rate of roughly 8% because most of the metal content qualified as U.S.-origin. Under the new rules, the exemption is gone, and the full product value is now taxed at 25%. Some contractors are already reporting 15–30% cost increases on equipment before it even reaches the supply house.
⚡ Why it matters: If you're buying equipment or materials that touch copper, aluminum, or steel — which is basically everything — your cost structure shifted two weeks ago. This isn't theoretical anymore; it's on your next invoice.
🔗 ACHR News (~4 min read)
[PRICING] Class Action Lawsuit Accuses 7 Major HVAC OEMs of Rigging Prices Since 2020
A federal class action filed in Michigan — Berg v. Robert Bosch, LLC, et al. — alleges that Trane, Carrier, Daikin, Bosch, Lennox, Rheem, and AAON coordinated price increases dating back to January 2020. Together, these seven companies control over 90% of the U.S. HVAC equipment market. The complaint claims manufacturers used COVID-19 disruptions, the SEER2 transition, and the AIM Act HFC phasedown as cover for price hikes that went well beyond actual cost pressures, with AHRI meetings allegedly used to share competitive pricing data.
⚡ Why it matters: If the lawsuit succeeds, contractors who purchased equipment between 2020 and 2026 could be in line for rebates or settlements — worth watching, and worth documenting your equipment purchases now while records are fresh.
🔗 Contracting Business (~4 min read)
[PRICING] Plumbing & Mechanical Materials: April Price Increases Are Stacking Up
The PHCP-PVF sector is seeing a wave of targeted increases this spring. Charlotte Pipe raised PVC and CPVC plastic pipe 10% effective March 26. Matco-Norca bumped all products 2.5% effective April 1. Several other fittings suppliers have announced double-digit increases on plastic pipe and continued upward pressure on copper and brass products. PHCC president Danielle Pritchard warned the increases "may affect consumer demand" and slow discretionary project volume.
⚡ Why it matters: If you're a plumbing shop carrying jobs quoted in February or March, double-check your materials costs before you order — what you priced may no longer match what your supplier will charge.
🔗 Plumbing & Mechanical (~3 min read)
[REGULATORY] DOL's New Independent Contractor Rule: You Have 8 Days to Comment
The Department of Labor published a proposed rule on February 27 that would scrap the Biden-era six-factor worker classification test and replace it with the simpler Trump 2021 two-factor "economic reality" test. Under the new approach, two questions drive the determination: does the worker control how and when they work, and do they have real opportunity for profit or loss? The comment period closes April 28, 2026. For trade contractors who use 1099 subs for seasonal overflow or specialty work, the new framework is more forgiving — but it doesn't give you a free pass if your subs are really functioning as employees.
⚡ Why it matters: Misclassifying a W-2 employee as a 1099 sub is still the #1 IRS and DOL audit risk for small shops. The new rule makes compliance clearer, but if you want the final rule to reflect trade industry realities, now is your chance to weigh in before April 28.
🔗 ACHR News (~4 min read)
[BUSINESS OPS] 2026 HVAC Contractor Survey: Busy Shops, Thin Margins
Contractor Magazine's annual survey of HVAC shop owners reveals a widening gap between high performers and the rest of the field. The average HVAC shop is running net margins of just 2.5–5%, while process-driven businesses with structured pricing systems are landing 15–25% net. The survey found that most owners report feeling "busy but squeezed" — high call volume, but little to show for it at the end of the month. Top-performing shops shared one common trait: a defined pricing methodology, not gut-feel estimates.
⚡ Why it matters: Busyness is not the same as profitability. If you don't know your actual cost per job and you're not pricing against it systematically, you're financing your customers' repairs out of your own pocket.
🔗 Contractor Magazine (~5 min read)
📊 Stat of the Day: Aluminum mill shapes are up 34.1% year over year as of March 2026. Every coil, condenser cabinet, and refrigerant line in your shop is made from a metal that costs a third more than it did 12 months ago.
🛠️ One Thing To Do: Add a 14-day expiration date to every quote you send this week — and consider adding a materials escalation clause for jobs that won't start for 30+ days. With copper and aluminum moving this fast, an open-ended quote is a liability.