To all Wittichen Customers:
What is going on with R22?
Why the sudden price increases?
Why the sudden shortages?
Is this just something the manufacturers have cooked up to try and drive the prices up?
I am sure all of you have asked these questions & more a thousand times over the last few days. I am going to try and answer them & give you some information to help you stay on top of the situation.
On October 17, 2014, the EPA issued their final rule for the phase-out of R22 from 2015 – 2019. This final rule calls for:
- A whopping 57% reduction in R22 consumption allowances from 2014 to 2015.
- Declining consumption allowances each year through 2019.
- Zero consumption allowances starting in 2020.
When word of this hit the streets, it created panic-buying everywhere, and Distributor Inventories (which were low because of the off-season anyway) were quickly depleted. As Distributors scrambled to buy more, Manufacturer’s inventories were also quickly depleted because they were already scaling back production for 2014. All 3 U.S. manufacturers quickly raised prices and limited what distributors could order, in an effort to curtail the panic-buying. This plan, however, backfired, and made matters even worse.
What does all of this mean? There will definitely be much less R22 available in the U. S. in 2015 than there was in 2014, and much less than projected demand calls for. What is available will cost much more than it did this year, and the price is going to continue to rise. But, if we are smart in our management of this situation, we can all get through it together. The absolute worst thing anyone can do is panic-buy MORE R22 than they NEED! Wittichen Supply Company is committed to taking care of our loyal customers by having the R22 you NEED. Over the next 2 – 3 months as we work to secure more R22 and while things settle down some, we might have to limit the amount we will sell you at one time based on your previous purchase history from us. We are only doing this to keep some from buying way more than they actually NEED, so we can have enough to take care of all of you.
There are 4 things YOU can do to help us all get through this:
- Buy only what you NEED. Trying to buy more than you NEED is only going to make things worse, and drive the price from manufacturers even higher, as they try to stop this panic-buying.
- Recover! Recover! Recover! We need your used, recovered R22. Every pound of recovered gas we can get from you and return to DuPont increases the amount of virgin R22 we can buy, and the more we will have available for you. You enable us to take care of your R22 needs in 2015 and beyond by returning every ounce of recovered R22 to us that you possibly can. Every time you do a unit change-out where you are replacing an old R22 unit, recover the gas and bring it to us.
- Let us show you DuPont’s MO99, which is a great alternative to R22 in Refrigeration and Air Conditioning Applications. This refrigerant requires no oil change, which makes for an easy retrofit, and performance characteristics are extremely close. MO99 is also now priced well below R22, and that difference will continue to grow. We can supply you with all of the literature you need to show you how easy it is to retrofit an R22 system to MO99. DuPont also has a great video to show you how easy this product is to use. (See below)
- Carefully guard your R22 inventory. This stuff is liquid gold, and will walk off if left unattended.
The events of the past few days have created some challenges for our industry. But, we want to assure you that Wittichen Supply Company is working hard behind the scenes to make this as painless as possible for you. With your help in the 4 areas above, we will all be successful in making that happen.
Please take a moment to read this important article from Dupont regarding the EPA’s Final Rule on R-22 for 2015-2019.
Thank you so much for your support.