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Heat pumps: rising prices and stock shortages

With temperatures falling as winter sets in and more people choosing to work from home, consumer demand for heat pumps is soaring! We interviewed a local Auckland heat pump installer, who said they had been exceptionally busy lately. Many customers want a heat pump installed before the depths of winter, leaving suppliers of numerous brands unable to complete installations within customers' expected timeframes because of stock shortages. 

Across the global air-conditioning market, the pandemic has affected upstream and downstream supply chains to varying degrees. As raw material prices rise, some manufacturers have had to pass cost pressures on to finished products, so higher retail prices are hardly surprising.

Builders' urgent predicament

“Out of stock” seems to have become a buzzword in this year's home improvement market. Amid the pandemic, Auckland's red-hot housing market, which has resisted attempts to cool it, has repeatedly faced severe shortages of building materials, appliances and other supplies.

New Zealand Certified Builders Association chair Mike Craig said some smaller builders work on just one house at a time. But if building materials, appliances, and kitchen and bathroom fittings all face supply chain shortages, what are workers supposed to do? He said this could create a real domino effect: workers have no work, builders have no cash flow, and they could go bankrupt because they lack sufficient funds. 

Concerns about survival extend beyond small New Zealand building firms. The same problem has emerged globally, with increased demand delaying product shipments. Craig noted that Europe's usual waiting period of 12–14 weeks had stretched to 6 months. In New Zealand, some builders are waiting three times as long for products. This is a very, very serious problem. During the pandemic, suppliers' stock levels and delivery speeds can determine whether developers and builders survive.

Midea heat pump group-buy offer

Although fluctuating raw material prices and other factors have affected many overseas air-conditioning businesses to varying degrees, industry leaders such as Midea are strengthening their position as major players become ever stronger in overseas markets. Two authoritative databases, Euromonitor International and ChinaIOL, show that Midea, Gree and Haier are the world's top three air-conditioning brands by sales volume. 

This winter, Argus Engineering, Midea Group's exclusive New Zealand commercial distributor, is offering group-buy savings to local New Zealand builders: order 10 Midea heat pumps in a single purchase to enjoy an exceptionally low group-buy price.

A friendly reminder from the editorial team:

With severe heat pump shortages and soaring sea freight costs, monthly price fluctuations have become the norm. This exceptionally low group-buy price is available only this month — a rare opportunity.

Pre-orders welcome: pay just a small deposit when ordering to secure the same exceptionally low special price offered for in-stock purchases. Once the group-buy promotion ends, this special price will no longer be available for in-stock purchases.

You do not have to be a builder or developer to take part. Anyone who meets the minimum order quantity can enjoy the exceptionally low group-buy price. After all, heat pumps are essential for homes and businesses alike, so get your friends together and place a group order.