Monday, October 18, 2010

Regime Uncertainty

To review, the original intent of the law that was enacted as of January 1 of this year was to eliminate the manufacture of any residential A/C that contained the refrigerant R-22. Unfortunately the law was written poorly, and quickly the Chinese manufacturers flooded the market with air conditioners that were shipped dry, meant to be charged with R-22 in the field. R-22 is still available at relatively low prices.

Last week in Chicago I attended a lecture by the head of a large HVAC trade group. Apparently the DOE (Department of Energy) is frowning upon this loophole and may be doing something to not allow the dry units to be sold.

Meanwhile, several of the major manufacturers are (as of this writing) gearing up production for dry R-22 units.

So what to do. Jump in and risk the units being outlawed at a later date (as is what most think will happen) or sit here and let my competitors get a leg up on the thing?

Business is hard enough without having to jump through hoops trying to guess what government will regulate next.

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