Las vegas being unbearably hot for many during the day leads to a good business for the summer–repair of air conditioning systems.   This business is somewhat cyclical with unlimited demand on peak hot days and virtually no work on other days.  While the air conditioning business could rely on the weather as a predictor of work–those days may be over.

The financial crisis and subsequent high number of foreclosed homes in las vegas has destroyed any ability to predict work.  The market forces are being skewed by banks and government policy to maximize the money banks will receive.  Everybody knows that the banks are essentially underwater at today’s home prices and so they cannot afford to sell foreclosed homes.  This leaves many paying really high rents and many unwilling to invest.   As always the rich speculators and not ordinary people looking for a place to live will benefit from the misery.

In the wake of the home building collapse, the biggest company in las vegas air conditioning–Interstate–went into bankruptcy.  This left the market wide open, but the problem is no one knows what the market is anymore.   Government policies heavily influence whether people will buy or upgrade air conditioning through direct energy efficiency subsidies and indirectly by affecting the health of the market.

Many of the smaller air conditioning companies are on the verge of bankruptcy or will be filling for bankruptcy.

I for one look forward to retirement this summer and hope it will be a good year.  But all the signs are that the work will be sporadic and light.  There are hopeful signs too.

I see two two new companies rising from the ashes.   Las Vegas Air Conditioning Repair is looking to help the homeowner with affordable air conditioning repair services.    They only started late last year and were cobbled together by people laid off from AC companies that could not survive.

Another newer air conditioning company-Air Conditioning Las Vegas– is gambling on small business needs.   They focus on the air conditioning needs of small and mid-size businesses.   They also were cobbled together from down-sized air conditioning companies.

But on the whole, there are fewer air conditioning companies and the ones that exist are smaller.  The flip side of all this negativity is that the remaining air conditioning companies probably provide higher quality services and a faster turn around.   Although there is little any small air conditioning company can do about the rising cost of equipment, parts, and gasoline.