Decarbonization | Electrification

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Contractors and engineers see a marketplace that is stabilizing, even if margins remain tight. “We remain cautiously optimistic about plumbing industry market conditions in 2026,” says Jason Pritchard, president of the Plumbing-Heating-Contractors—National Association (PHCC). He notes that while uncertainty remains, moderate growth is expected for plumbing and HVAC contractors, though high prices driven by tariffs and inflation will continue to shape consumer behavior.

Driven by advancements in refrigerants, controls and system design, modern heat pumps are taking on applications once thought beyond their reach — from food service and healthcare to district energy and industrial processes. This evolution is creating new opportunities for engineers, facility owners and contractors to rethink how buildings are heated, cooled and powered.

In 2016, Natural Resources Canada ("NRCan") released Amendment 18 to the Energy Efficiency Regulations, enhancing energy efficiency and water conservation. It introduces new product categories, updates existing requirements, and allows automatic adoption of future U.S. Department of Energy updates.

Designing and managing buildings today means thinking beyond individual systems: it’s about creating integrated environments that are equally efficient, adaptable, and sustainable. Connected buildings are reshaping system integration, but what does that mean for engineers, and how can smart design choices today future-proof buildings for tomorrow?

Building codes are becoming stricter, carbon targets are becoming law, and there’s more funding available for compliance. For those in plumbing and mechanical trades, system design now involves meeting emissions goals, leveraging incentives, and navigating changing regulations.

Hybrid systems offer a critical bridge in the transition from fossil fuel reliance to full electrification. For contractors working in colder climates or retrofitting older homes, all-electric heat pump systems can be a tough sell. Hybrid units, however, deliver measurable emission reductions while preserving consistent output and adaptability.

One of the most powerful parts of the trip was witnessing how personal stories and local successes resonate with policymakers. Whether it was a community's struggle with water quality or the adoption of cutting-edge conservation practices, these conversations helped bridge the gap between policy and lived experience.

Plumbing contractors are engaging directly with legislators to promote policies for clean water, workforce development, and resilient plumbing. Over 100 PHCC members, leaders, and industry stakeholders met in Washington from May 20–21 to support industry issues.

As the second Trump administration gets underway, it has taken an aggressive approach to reducing the energy efficiency and water conservation federal regulations that have been the subject of numerous United States (U.S.) rulemakings and court cases over the last few decades.

As electrification reshapes the HVAC market, hydronic-based heating and cooling systems stand ready to offer many design and performance benefits. One of them is the potential for thermal storage. After all, water is one of the best materials on earth for storing sensible heat.