Tariffs, regulatory changes, supply chain disruptions, and an unpredictable economy. Any one of these challenges can make it difficult to manage a business, let alone a seasonal one. We sat down with FTL's President, Todd Grzybinski, to get his perspective on economic uncertainty and how to stay focused on your goals and growth.

Financial Challenges HVAC Contractors Face During Times of Economic Uncertainty

"One of the most important challenges," Todd says, "is demand for products. If there is uncertainty in the economy, big purchases are usually put on hold. This could mean consumers choose to repair rather than to replace units."

FTL Finance data shows that many consumers are opting to pay for repairs rather than replacing their units. Over 24 months, through December 2024, applications for equipment finished seven percent below the previous year, but service work applications jumped 37 percent during that same time period. "Whether people are financing a repair or a replacement, offering financing is one way to combat this issue," says Todd.

Most Americans are worried about the U.S. economy, and that drives their behavior. According to the SSRS Economic Attitudes Tracker, 81% of Americans report cutting back on spending. In fact, 67% of Americans across all income brackets, education level, and professions report living paycheck-to-paycheck, so an unexpected expense is not exactly a welcome surprise. Because you never know what a homeowner's financial situation might be, we encourage you to offer financing to all of your clients.

Lessons Learned from Challenging Times

Todd is no stranger to leading a company through economic uncertainty. With over 20 years as President of FTL, he has weathered some storms, like the 2008 recession and COVID-19. We asked him what he learned from those experiences.

"Discipline," says Todd. "Stay disciplined and true to your core business values. Do not change course unless you have the data or experience to maneuver through it."

In terms of changing market conditions, he recommends maintaining a positive cash flow.

"You may want to delay any big expenses or improvements to your facility or equipment that would require lots of cash. Come up with other services that could increase revenue, and if you do not offer financing, find a lender that fits your needs and start offering it."

If you do offer financing, let customers know! Almost 80% of consumers would like to finance part, if not all, of their home improvement projects.

There are several ways to let homeowners know that you offer financing:

• Advertise it on your website
• Create truck decals or other physical signage
• Include it in your estimates or quotes
• Have a direct conversation with homeowners

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