U.S. HVAC Equipment Plants Bring $1.2 Billion in Potential Capital Investments

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

HVAC equipment manufacturers are building new plants and renovating existing structures in the U.S., with manufacturers establishing their first U.S. manufacturing operations.

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Constant Need, Steady Demand

Heating and cooling equipment, whether for residential or commercial applications is a necessary part of life in much the U.S. With climates ranging from summer temperatures in the Arizona desert to frosty winters on the North Dakota plains, heating, ventilation and air conditioning (HVAC) equipment plays an important role in millions of U.S. homes and businesses.

U.S. manufacturers of HVAC equipment are keeping up with ever-present demand through a number of current and planned capital projects. Industrial Info Resources data show more than $1.2 billion worth of current and planned U.S. capital HVAC manufacturing projects on the books, ranging from commercial-scale boiler and chiller manufacturing to residential systems.

While revamps of existing plants weigh in heaviest for current spending, grassroot projects dominate future U.S. HVAC equipment construction, weighing in with nearly $470 million worth of anticipated spending for new-build plants.

Revamps & Renovations of Existing Facilities

Revamps and renovations constitute a substantial amount of current U.S. HVAC spending, and one of the biggest of these projects comes in Kentucky from Mitsubishi Electric. Mitsubishi Electric is completely repurposing a plant in Maysville, Kentucky, where it has previously manufactured automotive components ranging from audio systems to ignition coils. In 2024, Mitsubishi announced it would transition the plant to manufacture high-efficiency heat pump compressors for HVAC systems.

There is an element of the company reshoring manufacturing to a U.S. plant with the plant's change of purpose. In a December 2024 press release, Mitsubishi Electric stated 90% of the twin-rotary, variable-speed compressors that will be made at the Kentucky plant were currently produced in China and other Asian countries.

Mitsubishi kicked off the revamp last year and is expected to begin ramping up production in late 2027. Subscribers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Another fairly substantial renovation job is underway in central Colorado, where ACCO Engineered Systems Incorporated is repurposing a warehousing facility into an HVAC equipment manufacturing plant. While the exact lineup of what will be produced remains open, ACCO's products are primarily mechanical systems and assemblies for industrial and commercial HVAC systems. These include sheet metal systems such as ductwork, piping and mechanical assemblies.

Future HVAC equipment plant renovations are on the books for North Carolina and Blaine, Minnesota, where nVent Electric plc plans to focus on liquid cooling systems for data centers.

Grassroot HVAC Construction

Grassroot HVAC manufacturing construction brings spending to the U.S. both now and in the future. There is an element not so much of reshoring so much as a new expansion into the U.S. manufacturing sector as Canadian HVAC equipment company Cancoil is underway with establishing its first U.S. manufacturing plant in Jacksonville, Texas. Cancoil is making the move to place its manufacturing closer to its U.S. customers, among other reasons. The company manufactures heat transfer systems such as the finned-tube coils used in HVAC systems and refrigerated warehousing.

In a similar line, Italian HVAC equipment producer Aermec SpA, which produces items such as chillers, heat pumps and air-handling units, is making its first manufacturing foray into the U.S. after serving North American customers for more two decades. The company just held the groundbreaking ceremony for its new plant in Dekalb, Illinois, earlier this month. Construction of the new facility is expected to last well into 2027.

Maintenance Coverage

Industrial Info Resources also is tracking 64 planned maintenance events at U.S. HVAC equipment manufacturing plants through 2028, with Oklahoma and Texas weighing in with the highest spending and highest project counts.

Key Takeaways

• HVAC equipment manufacturers have more than $1.2 billion worth of capital spending on the books.
• At least two companies are establishing their first U.S. manufacturing facilities, while another company is gearing up to produce HVAC typically produced in Asia.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).