Key Takeaways
- Major capacity constraints related to the transition to R-454 / R-32.
- Sales of older units are still ongoing through '24.
- Demand for newer units is skyrocketing.
Navigating the HVAC Refrigerant Transition #
According to an ACHRNews refrigerant guide, in 2025 the HVAC industry will undergo a significant regulatory shift due to the implementation of new environmental standards for refrigerants. The EPA’s AIM Act of 2020 mandates a transition away from high GWP refrigerants like R-410A to R-454 / R-32. It also notes A2L refrigerants, such as R-454B, are classified as mildly flammable and require specific handling procedures.
Flexe’s team has recently spoken with organizations in the HVAC space and learned they are dealing with serious capacity constraints related to the transition to R-454 / R-32 and the phase out of R-410A. Sales of older units are still ongoing through '24 however those experts are already seeing higher than expected demand on newer units. Also noted is that inventory builds necessary to meet '25 demand will cause warehouses to fill up quickly.
The Flexe Recommendations: #
- Move excess inventory into offsite storage to keep standard operations running smoothly
- Scale your network to handle opportunistic bulk buys or net new volume that is hitting the network
Flexe provides Flexible Warehousing Infrastructure: tech-enabled warehouse services that allow enterprises to evolve, optimize and prepare networks for long-term strategic growth. A single technology integration opens access to 700+ warehouse operators and ~3,000 warehouses across the U.S. and Canada.
With our model, HVAC manufacturers and distributors can stand up facilities in a matter of weeks, with term lengths that make sense for their business needs.
Plan for everything, be ready for anything. Prepare, optimize, and evolve your supply chain with Flexe.
Let us help you with your refrigerant transition.
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