Sourcing at a crossroads

Against a backdrop of rising geopolitical tensions and supply chain disruptions, the HVACR sector is adjusting to a new normal. Chinese-manufactured equipment, once chosen primarily for cost advantages, are now being scrutinised through a more complex lens, including long-term performance, brand credibility, cost and perception.

Strategic stockpiling and smart partnerships

Distributors like Nia, which supplies the GREE brand in the UAE, have responded to ongoing volatility with robust contingency planning. Kamran Khan, CEO, Nia, says: “Global trade uncertainties have posed significant challenges, including increased cost of shipments and fluctuating costs. To maintain business continuity, we build a strategic inventory buffer for all key finished goods units and spare parts.”

Beyond inventory management, Nia has invested in logistics flexibility, choosing multi-port routing and even air freight for critical items. The company has also intensified partnerships with freight forwarders and keeps a close watch on trade policies to minimise disruption.

These actions are part of what Khan describes as “proactive procurement planning” – a foundation enabling resilience even when material costs spike or semiconductors face lead-time bottlenecks.

To manage customer expectations in such a climate, Nia focuses on transparent communication, long-term pricing contracts and a Total Cost of Ownership (TCO) narrative that highlights lifetime savings over upfront costs.

To mitigate pricing volatility and ensure long-term customer value, distributors are increasingly turning to manufacturing partners that invest in process optimisation and product innovation. Kamran says, GREE, for instance, is adopting new strategies to offset the effects of rising material costs and extended lead times.

Careful calibration of risk and performance

From the consultant’s desk, the view is similarly pragmatic. Elie Faysal, Senior Mechanical Engineer, AZZ Architectural Engineering Consultants, points out that while Chinese HVAC equipment is not always a first choice, it remains viable in certain applications. “In certain scenarios, yes, I do recommend Chinese HVAC equipment, particularly when the product meets the technical requirements and performance standards of the project,” he says. “This is especially relevant in budget-sensitive or non-critical applications, where a balance between cost-effectiveness, compliance and functional performance is essential.”

Faysal’s evaluation is metric-driven, with key performance indicators including energy certifications, like ASHRAE or Eurovent; IAQ performance; climate durability and serviceability, especially for remote sites or fast-track projects.

Faysal emphasises that Chinese equipment continue to offer a notable pricing advantage, especially during value engineering (VE) stages that often reveal “these cost differences can still be substantial enough to warrant consideration – provided that life-cycle value and performance are not compromised”.

However, he says, it is essential to assess the manufacturer’s local support, warranty coverage, spare parts availability and track record in similar projects or climates.

Still, he cautions that not all brands are equal. “Concerns typically include long-term reliability, after-sales service limitations and client perception, especially in premium or brand-sensitive projects,” he says.

To mitigate risk, Faysal recommends the importance of validating local support; requesting regional project references, preferably within the GCC region or similar environments; using mock-up testing or performance guarantees, where feasible; and avoiding lesser-known brands without international certifications

He also recommends adopting hybrid specifications, such as considering using Chinese products for secondary systems, such as ventilation units and exhaust fans, while retaining critical systems, such as chillers, VRFs and AHUs from premium brands.

The factors driving sourcing decisions

While cost remains an important consideration in the decision to specify or distribute Chinese HVACR products, Faysal and Khan emphasise that performance reliability and post-sales support are increasingly influencing procurement choices.

While Faysal recommends a selective, metric-driven approach when specifying Chinese HVACR products, particularly in non-critical or budget-sensitive applications, distributors like Khan point to another critical factor – implementation.

Khan highlights that product selection is only part of the equation. Even high-quality equipment can underperform if it is poorly installed, improperly commissioned or not maintained correctly, he says. These issues, he says, have been among the most common reasons for early system failure and performance gaps in the field. Installation and commissioning, he says, remain a weak link in the value chain, often determining whether high-performance products deliver in real-world conditions or not.

To address the issues, Nia and its partner-brand, GREE have developed a comprehensive support structure designed to ensure proper handling across all project phases. This includes technical training programmes for contractors, field supervision during installation, on-site mobile service units and remote diagnostics via IoT-enabled equipment. In addition, user-friendly mobile apps and multilingual hotlines provide customers and technicians with real-time access to installation guides, warranty status and service updates.

By investing in product innovation and on-the-ground support, distributors like Nia aim to close the gap between factory-grade performance and real-world outcomes. As a result, the conversation is evolving; from one focused purely on pricing to a more strategic approach that prioritises installation quality, operational reliability and customer confidence.

Digital tools and regulatory compliance

Khan says GREE, one of Nia’s flagship partners, is also banking on smart HVAC to meet market demand. “Digital tools, like AI, IoT and smart diagnostics, are no longer niche in GREE’s product portfolio; they are becoming standard across most product lines, especially in mid-to-high-end residential and all commercial and industrial offerings,” he says.

From AI climate control and cold plasma purification to smart ventilation, GREE’s R&D is geared towards systems that are efficient, intelligent and globally compliant, Khan says.

China’s evolving domestic codes – covering energy efficiency, Indoor Air Quality (IAQ) standards, electrical safety standards and HFC phase-downs – have helped elevate Chinese products to international benchmarks. These standards, Khan notes, now align with or even exceed global norms like CE marking (EU), UL certification (USA), CCC (China), AHRI Performance and Eurovent.

The balance is shifting

While cost is no longer the sole driver, it still plays a crucial role in procurement decisions. What’s changing is the rigour of due diligence, the weight placed on local support and the value assigned to innovation. Faysal says, “This balanced, performance-based approach enables smart cost control without compromising technical compliance, operational reliability or client confidence.”