The HVAC sector is undergoing a significant amount of change. Many industry participants will remember the consolidation wave from a few years back. We are clearly entering another. HVAC (as well as sister industries such as plumbing, refrigeration, etc) is an industry well suited for gains through scale. Although the industry tends to be geographically based, rolling up a series of firms serves to reduce overhead (think insurance costs, HR and health care costs, as well as other back office tasks).

With stress to certain segments of the industry due to the housing market downturn, the rate of acceleration is going to increase. Read more in this quarter's HVAC M&A Update.