The behavior of the Colombian HVAC market is on the right track, although there are many things to improve in the area of regulation. by Duván Chaverra Agudelo
Our experience tells us that more and more foreigners are looking to enter the Colombian market. When asked about the reasons, most investors agree that this country has a growing infrastructure, where industries such as construction shows good results and other areas such as the industrial sector are investing in technology. This no longer seems to be a novelty, because if we look at about 5 or 6 years ago, the opinions about the Colombian market do not differ much from those of now, although there is a detail: today there are many more strong players participating in this market. Is this positive? Apparently so. The figures support this and the prospects for the end of this year and for years to come is hopeful enough to indicate that Colombia continues to potentiate itself as a strong consumer of the HVAC/R market, and with it grows its position in Latin America. The most recent figures revealed by the Colombian Association of Air Conditioning and Refrigeration (Acaire), indicate that in 2012 the sale of air conditioning and refrigeration equipment in that country presented a sectoral growth of 10% and made imports that reached 65%. In addition, 35% of the equipment is assembled in Colombia, which results in more than 60,000 people working for about 5,000 companies in the sector, according to data from the National Association of Distributors of the Refrigeration and Air Conditioning Industry (Andira). The executive director of Acaire, Claudia Sánchez, revealed that these figures are especially given by the good present of the construction sector, especially in the hotel sector and by a better control that is being done in the food industry. The executive added that Colombia in 2012 was a market that yielded figures of around US $ 250 million, a value that will grow in the coming years. China, the big supplier
Analyzing this year regarding the issue of import of units or articles for air conditioning, window, wall and autonomous systems, China remains the most important country for Colombia in this regard. According to the statistics site Datamyne, in 2012 the Asian country dominated the market with 87% of total imports that meant US $ 56,959,863. 
In 2013, between January and April, China exported US$24,558,369 to Colombia, which means a market share of 85%. The country that follows the eastern giant in these two periods is South Korea with a share in 2012 of 5% for US $ 3,551,621, while in 2013 it has 7% of the market for US $ 2,101,322. The United States is third in the ranking, importing so far this year 3% of the total for US $ 842,649.
Companies with good movements
Datamyne has also registered interesting movements in terms of imports, so far this year, among some of the most important manufacturing companies in the world and that have a stake in Colombia. Regarding units or articles for window, wall and autonomous air conditioning systems, the multinational company LG Electronics Colombia, between January and April, has 27% of the total imports to Colombia made by companies, for a total of US $ 8,002,791. LG continues to strengthen its presence in Colombia, even recently touring some cities in that country to present its latest line of products with Inverter technology. "We present in a complete way the new technological developments in air conditioning, very interesting for the current architectural demands in the market: space saving, energy saving, ecological equipment, greater degree of comfort, aestheticism, etc," said the account manager of LG Electronics Colombia, Oscar Mauricio Higuita.
In the ranking presented by the statistics site, the second place is occupied by Samsung Electronics Colombia, which until April 2013 has taken 11% of total imports with a value of US $ 3,210,164. Industry Opinions
The companies consulted seem to agree on the good expectations presented by the market for the end of the current year. For example, engineer Gabriel Jimenez, general manager of HVAC Consulting, commented that 2013 started very well, and that the second half is expected to be even better. "We have better expectations than in 2012, so far there are more projects on the market compared to the same period last year; for this 2013 we have already projected a growth of 30% and may reach 50%," said the businessman. Jiménez recognizes that the Colombian market has undergone an important transformation with the arrival of major brands. "Our country is in clear growth, and this is being perceived by all market players, starting with suppliers, as we see the arrival of new brands with a global trajectory that had not ventured into our country, which generates better prices for customers; you also see a lot of new contractor companies." For his part, Rodolfo Delgado, CEO of Carvel, indicated that his company has high hopes for business development for the second half of 2013: "We are very satisfied with the increase in business during the first half and we remain optimistic for the second period of 2013. The expectations are very interesting, since we believe in the development of the industrial area with a rebound for the second half, a segment that involves our most important market."
Delgado also highlights that one of the shortcomings that must improve the HVAC sector in Colombia to increase its economy has to do with the massive support for local producers. "We detected that in Colombia consultants do not participate in the protection of national production, because they close themselves to rigid compliance with standards; however, the domestic industry is demonstrating high quality, responsibility and good service, and is getting closer and closer to meeting international certifications." On this same aspect, Gabriel Jiménez emphasizes on the issue of standards: "The lack of regulations for the exercise of the profession is key, since it is a market that is not regulated in its actors; at this moment anyone creates a contractor or consulting company and enters to compete from you to you with professionals and companies that have not only prepared properly but make significant investments in infrastructure, personnel and equipment. This lack of regulation for the exercise means that clients have no problem hiring any company when executing a design or a project, and they are simply guided by the price." For that reason, the engineer Jiménez insists on supporting initiatives that improve the guild in all its aspects. "We must support Acaire to achieve as a guild a regulation that regulates the exercise of the profession, and certify technicians, professionals and companies, because this way we will have a much more organized market, with better margins for all, since it is sad to see that in a market that is in a very good moment there are constant price wars in the projects and that companies have to work with very low margins that put in jeopardizes its sustainability." For the general director of Carvel, the process is on the right track: "The industry is providing information and training for engineers and technicians who are updated in design, selection of national equipment vs. imported equipment and improvement of facilities and service for all customers in the country. These activities are complemented by those offered by the CIAR, which brings together numerous specialists with great knowledge and who will present the development of new air conditioning technologies". In summary, everything indicates that 2013 will be a satisfactory year for many companies in the sector. We will wait for the final results, which will surely be as positive as those presented in this article by our guests and by the statistical figures.
