Industry: Hot Times in a Cool Business

Hell hath no fury like a woman scorched. That is to say, husbands who spend the torrid days of summer in air-conditioned offices reached by air-conditioned cars, buses or trains find it difficult to say no when overheated wives demand air conditioning at home. As a result, cooling units have become the smartest-selling home appliances after refrigerators and washing machines.

Last year 2,200,000 U.S. families tried air conditioning for the first time. This year the industry expects to sell 3,500,000 window units or central home air conditioners worth $1.6 billion. Sales have doubled in five years, and on window units alone are up 140%.

One reason for the increase is a technical breakthrough. The introduction of smaller, more efficient compressors four years ago has led to a sharp drop in sales prices and to easier installation. Where it once took a crew of technicians to install an air conditioner, the average woman can now take one home and start it cooling in five minutes. Another reason for the rush, manufacturers say, is propaganda and pressure on parents from their children. Says William B. Clemmens, manager of General Electric’s room-air-conditioner division: “Our children are raised in an air-conditioned culture. They attend air-conditioned schools, ride air-conditioned buses. You can’t really expect them to live in a home that isn’t air-conditioned.” The result is that 18 million American homes, or 31% of the total, have some sort of air conditioning today v. only 9% a decade ago.

Moving North. Home air conditioning began in hot Southern states, which still lead in sales. Texas ranks first both in the total (1,880,000) and percentage (58.3%) of air-conditioned homes. The trend has gradually worked north; New York ranks second in the number of airconditioned homes. Furthermore, when . it comes to window units, families seldom stop at one. Most buy an air conditioner for the master bedroom, later decide that the children ought to have one, too, and so should the kitchen. “They’re like peanuts,” says a Westinghouse executive. “If you have one, you’ve got to have another.”

The ease and adaptability of air conditioning make it more desirable to have. Fedders has introduced a $100-extra electronic filter for window units that blocks out 95% of all dirt, smoke and pollutants. Air conditioners in automobiles have become almost a routine item. Currently 44% of all new cars are equipped with units v. 14% in 1963. Another 650,000 units are being sold to car owners each year in what Detroit calls the “after market.”

Manufacturers are already ‘looking for other sales. Exports last year climbed to 395,000 units worth $62 million. And William P. Balthrop, president of Chrysler Corp.’s Airtemp division, predicts that boat owners will soon be buying air conditioners in volume.

Power Failures. The increase in airconditioner sales has been a bonanza for everyone involved. Power companies have to contend with frequent distribution problems as people go home from work on hot days and turn on battalions of air conditioners at the same time, occasionally causing power failures. But as long as they have adequate generating capacity, the utilities find that air conditioners make the summer power load equal to winter’s and thus bring higher profits. Manufacturers are deep in capital spending for the growing market. Carrier is spending $60 million over a three-year period for improvements on four plants and construction of five new ones. Chrysler Airtemp will soon start work on a new Bowling Green, Ky., plant that will employ 1,000 people. G.E. increased its Louisville capacity by 50%, and Westinghouse plans to operate its Columbus, Ohio, plant on two shifts, even during winter.

Air conditioning is also having an effect on labor-management relations. The Teamsters Union, as part of its latest model contract, insists that union members drive air-conditioned cabs and spend overnight stops in air-conditioned motels or hotels.

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