The economic climate has become increasingly unpredictable, with news this month of stock market fluctuations and tariff talks affecting plumbing and HVAC contractors. PHCC is closely monitoring the situation to help you make smart decisions for your business during uncertain times.

“It’s important to stay calm and informed in times like these,” says PHCC President Dan Callies. “PHCC has received feedback from contractors across the country indicating that there have been notable price increases at the wholesale level of up to 5% or more. However, there has yet to be any significant adverse impacts on business activity. As these conditions evolve, PHCC remains a steady partner, offering guidance, tools, and support to help members.”

First Steps: Guidance From the Experts

• Track Industry Pricing: Quality Service Contractors (QSC) Program Director Beth Dobkin encourages members to track industry pricing weekly and adjust frequently to avoid loss in profitability. Staying in regular contact with wholesalers and suppliers is essential to avoid surprises. Offer customer specials to move current inventory that was purchased at lower prices to increase opportunities.
• Communicate With Customers: Keep your customers updated on the latest pricing trends; advise them on the best time to make purchases, and urge them not to delay important repairs and replacements. “I suggest developing a ‘talk track’ that allows the customer to see you as their hero,” Dobkin says. She provides this example: “As costs increase, we are committed to supporting our customers by maintaining our current pricing on items we already have in inventory, helping to prevent increased costs to you.” This creates a sense of scarcity/urgency and encourages the customer to take action.
• Rally Your Team: Dobkin also recommends communicating regularly with your employees and gauging how they are handling any stress. Gauge how your team is being affected by and managing the economic uncertainty. Ask about their experiences with the customer, and monitor if the conversations are shifting so adjustments can be made quickly.
• Monitor Economic Indicators: PHCC Educational Foundation Instructor and Purdue University Professor Emeritus Kirk Alter suggests closely monitoring input pricing trends to understand manufacturer cost pressures.
• Negotiate: Alter also advises to watch for inflated material prices under the guise of tariffs, and to negotiate based on actual input costs to protect your business. Read more here.
• Establish Timelines: Watch your timelines on quotations, both from your vendors and to your clients. If your suppliers will honor pricing for 10 days, your quotes need to reflect this back to the consumer.

Make Your Voice Heard. Tap Into PHCC Resources.

• PHCC Legislative Conference: It’s an ideal time to maintain access to policymakers and keep them informed about how their decisions impact your business. Share your stories at the PHCC Legislative Conference, May 20-21, in Washington, D.C. Click here for details.
• Business Coaches: QSC has a team of qualified business experts available for consultation. For tailored coaching, visit phccweb.org/qsc or contact QSC Program Director Beth Dobkin at dobkin@naphcc.org. In fact, any PHCC member can receive a complimentary, one-hour virtual business evaluation.
• Education & Training: New Online PHCC Academy® Courses, including Finance Management and Business Leadership Essentials, are designed to help you better manage your business, especially in times of economic uncertainty.
• CONNECT 2025: CONNECT will help you find solutions and develop strategies that will help you thrive, regardless of economic disruptions. Join us in Grand Rapids, Michigan, Oct. 27-30.

“PHCC is here to keep you informed and prepared,” says Callies. “Be sure to let us know of any economic changes you are experiencing, such as price increases, customer hesitations, etc. This will help us convey real-life stories to lawmakers and ensure we provide you with the most relevant resources, education, and solutions.”

For recent comments on industry impact from PHCC and other groups, check out the articles below:

Updated: Most Higher Tariffs Paused for 90 Days | ACHR News

Trump Tariffs Bring Angst, Uncertainty to Mechanical Contracting Industry | CONTRACTOR

UPDATED: Metals Tariffs Set; Trump Backs Off Higher Rate for Canada | ACHR News

Trump Pauses Tariffs — HVACR Associations React to Industry-Wide Impact | Contracting Business