BIG DROPS – Inflation is hitting the wallets of many consumers across the country, while hitting plumbers even harder.
“It primarily affects customers because the price of water heaters and furnaces, the price of piping and fittings are all going up,” said Michael Wadsworth, owner of 911 Heating and Plumbing in Great Falls.
Affect Wadsworth’s results as it provides service to customers.
911 Plumbing and Heating generally purchases its pipes and fittings in bulk. Wadsworth thinks that as a wholesale buyer, the company should get a discount; it’s not. Most of the products he buys come from the same manufacturer: PVC, fittings and pex. The products he buys are already the most profitable and of the highest quality, leaving no other options.
“We’re going to have to catch up somehow in order to stay in business. So eventually we will have to raise our prices.
He also says that customers are not happy with their estimates and when they find quotes elsewhere, their price is usually the desirable option.
With the way the economy and the world are changing, inflated prices are more likely than not to be here to stay.
The new Inflation Reduction Act offers several rebates to boost energy efficiency across the country. Starting in 2023, it will provide homeowners with tax credits of 30% or $1,200 per year, eligible for the cost of homeowner improvements – a $700 increase in credit.
The IRA also offers another tax credit of 30% or up to $2,000 for the purchase of new heat pumps, water heaters, biomass stoves and boilers.
Heat pump rebates are also offered to “low to middle income” households. Families earning less than 80% of a region’s median income can benefit from a rebate of up to $8,000 for a heat pump. Households earning between 81% and 150% of the region’s median income may qualify for a rebate of up to $4,000 for a heat pump. The discount also applies to heat pump water heaters, electric stoves, insulation or electrical wiring.
All of this information courtesy of Rainaldi Home Services website.
Rainaldi Home Services also reports that many programs don’t start until early 2023. The law also extends a $300 tax credit on high-efficiency heat pumps, which can be claimed on the home’s tax return. ‘Next year. They also note that the cost of HVAC equipment is expected to increase by 25-30% in the new year. Buy pipes sooner rather than later while the market remains constant.
For consumers, says Wadsworth, “…there really aren’t a lot of options for anyone at this point who will have to go without or pay the price.”
The Inflation Reduction Act is a temporary solution to what appears to be a long-term problem.