Buggy-Whip Marketing 101:The R-22 Phaseout

A buggy whip is a horsewhip that buggy drivers once used. When cars replaced buggies, the buggy whip became a symbol for anything that is hopelessly outmoded. Some buggy whip manufacturers went out of business because the industry of transportation went through a major change with the invention of the car. Although there wasn't a regulated “phaseout” of the buggy whip as there is with R-22, there was certainly a period when buggy whip distributors had to decide how to replace the lost sales and phase out their buggy whip inventory. Maybe the distributors decided to sell auto replacement parts, which required a greater level of understanding of technology.

In the next few years, distributors and manufacturers will have choices to make regarding phasing out of the current inventory and production of R-22 dependent products. They can decide to participate in the transition in the refrigerant market, or they can decide to change their business strategy and get out of the refrigerant product business. For those who stay in the business, there will need to be an adjustment in business strategy over the next few months and years in order to deal with product specifications that involve equipment using R-22 versus the newer replacement refrigerants.

A distributor with a proactive marketing program can help influence specifications by providing education to specifying engineers, contractors and facility owners and managers about the facts of the R-22 phaseout.

The Phaseout Facts

Jan. 1, 2010: There will be a ban on production and import of HCFC-22 and HCFC-142b except for ongoing servicing needs in equipment manufactured before Jan. 1, 2010. After 2010, chemical manufacturers may still produce R-22 to service existing equipment but not for use in new equipment. As a result, heating, ventilation and air-conditioning equipment manufacturers will only be able to use pre-existing supplies of R-22 to produce new air conditioners and heat pumps. These existing supplies would include R-22 recovered from existing equipment and recycled.

Jan. 1, 2015: Ban on introduction into interstate commerce or use of HCFCs except where the HCFCs are used as a refrigerant in appliances manufactured before Jan. 1, 2020.

Ban on production or import of HCFCs except where the HCFCs are used as a refrigerant in appliances manufactured prior to Jan. 1, 2020.

Jan. 1, 2020: Ban on remaining production and import of HCFC-22 and HCFC-142b. Use of existing refrigerant, including refrigerant that has been recovered and recycled, will be allowed beyond 2020 to service existing systems, but chemical manufacturers will no longer be able to produce R-22 to service existing air conditioners and heat pumps.

Jan. 1, 2030: Ban on remaining production and import of all other HCFCs.

Product Life Expectancy — Do the Math

One decision that a customer of refrigerant-using products needs to consider is the typical life expectancy of a product and the total cost of owning that equipment during that time period when experts predict the cost of R-22 will rise significantly as the supply diminishes. It may make more sense to buy products that use the newer, yet less-efficient, refrigerant, which may be higher in initial cost yet have a lower total cost of ownership. Below are some industry-standard life expectancy estimates of refrigerant-using products:

• Freezers, compact: 12 Years (2009 + 12 = 2021 replacement year)
• Freezers, standard: 16 Years (2009 + 16 = 2025 replacement year)
• Refrigerators, compact: 14 Years (2009 + 14 = 2023 replacement year)
• Refrigerators, standard: 17 Years (2009 + 17 = 2026 replacement year)
• Central air-conditioning unit: 15 Years (2009 + 15 = 2024 replacement year)
• Window air-conditioning unit: 10 Years (2009 + 10 = 2019 replacement year)
• Air conditioner compressor: 15 Years (2009 + 15 = 2024 replacement year)
• Rooftop air conditioners: 15 years (2009 + 15 = 2024 replacement year)