Commercial Air Conditioning: Glimpsing the Rise of Machines

As with most modern conveniences, the luxury of air conditioning in the home stems from the demands of earlier business requirements. In the late 19th century, American engineers launched the first wave of commercial air conditioning equipment. Designed to control indoor air quality in moisture-sensitive industrial settings, America’s first air handlers commanded incredible prices for both installation and operation.

However, the potential of regulated heating and cooling was quickly released from the confines of purely industrial application. By the 1920s, the usefulness of air conditioning technology had secured a place in the commercial comfort market.

Commercial Indoor Air Management Quickly Shifts Into the Indoor Air Quality Comfort Zone

Shortly after initial development for industrial purposes, the basics of commercial indoor air regulation caught the attention of retail industries, indoor movie theaters, and commercial owners. Retail department stores have also reaped the benefits of comfortable indoor living. Any business that could encourage more consumer spending by providing better amenities recognized the increased value of air-conditioned structures.

But the cost was high. For more than forty years, benefits versus installation and operating costs limited the widespread use of residential HVAC applications. Commercial landlords running large apartment complexes could justify the expense and an increase in rental rates. They dominated the air conditioning market, even over industrial users. Fifty years of commercial and retail control over the use of indoor air quality management shaped the technical development, marketing practices, and pricing of the heating and cooling industry.

Regional demand and the size of available markets set the rate of diffusion. Economic conditions clearly defined the main force behind the development and deployment of air conditioning technology. A focus on short-term profits often overshadowed the profit potential associated with modern residential HVAC sales, installation, and services.

In a 2010 white paper published by Jeff E. Biddle of Michigan State University, the author presents three economic factors that played a major role in the spread of commercial air conditioning equipment. The problems, according to Biddle, are as follows:

• Factors directly related to a company’s concept of how the air conditioner might influence consumers to give preference to that supplier’s products or services.
• Profit margins when aligned with market and industry characteristics that promote an increase in demand for products or services
• And HVAC installation and operation costs.

Prior to the 1960s, purchasing retail, industrial, or commercial air conditioning equipment involved a serious balance between expense and the practical relationship between the goods or services being delivered. In essence, the commercial installation of heating and cooling equipment focused very much on how long a consumer could actually enjoy the benefits of managed indoor air quality. Thus, movie theaters, restaurants, and commercial housing developments saw the highest return on investment.

Climate: A Driving Force Behind the Growth of Residential Heating and Cooling

As written in a 2009 report prepared by the Edison Foundation, electrical energy consumption in the US has quadrupled since the first study in 1940. Furthermore, the study defines electrical energy as a “key driver of growth economy and productivity.

Drawing on data collected through the 1940 Edison Electric Institute survey, Biddle makes a compelling argument about the relationship between demographics, economic conditions, and regional climate. The correlation between the growth and application of modern air conditioning and global warming cannot be ignored. In addition, the expansion of the HVAC installation is directly related to the previous and current cost of electrical energy.

It started as an industrial project, but commercial air conditioning has given rise to a new type of machine. It is not a terminator of people, but rather a terminator of rising energy costs. When installed correctly, modern HVAC equipment can lower your electric bill, provide better heating and cooling services at lower costs, and reduce the environmental damage that continues to create extraordinary global climate changes.