A brief discussion on salaries in the HVAC industry

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I’ve noticed that many friends are very interested in the income levels in this industry, so from the perspective of a newcomer, I’d like to explain how income is structured in our field. I have been working in this industry for several years; I’ve worked in research institutes, as well as in compressor manufacturing plants, and I’ve also been involved in sales and technical support at central air conditioning manufacturers. In addition, I have experience working with foreign engineering companies. For reference only. There will be inaccuracies. Overall, the income level in this industry is not high. The first type is design institutes. As a recent graduate, it’s very fortunate to be able to work at some well-known design institutes. Although the salary isn’t high—around 1,000 yuan at first—the work is easy, and one can build a solid foundation there. After a few years of experience, when I started taking on large projects on my own, I earned a lot of extra money; in short, it was quite easy. Income starts low, becomes moderate after a few years, and increases as one gets older. There’s a designer in his fifties I know who works for the Ministry of Electronics Industry; he owns a private car and a villa. The second category is engineering companies; in China, unless you are a contractor, as a newcomer your earnings are low and the work is tough. But exercise the most. Foreign engineering companies, which also act as general contractors for design work, have different types of income: 1) In Taiwan, the starting salary for new employees generally does not exceed 2000 yuan, with 1500 yuan being more common (in the Shanghai area). The income level in the next tier of cities might be even lower. Those with longer experience earn around 3,000. Companies from Europe, the United States, Japan, and South Korea. I used to work at TKS (Atmosphere Inc.) in Japan; it was quite tough there, with frequent overtime, but overtime pay was provided. The monthly salary was around 6,000 yuan on average. Some of the more well-known Japanese and Korean air-conditioning EPC companies include Takasago, Hitachi, Daisuki, Shimizu, Samsung, Hyundai, and Daliem. It’s hard work, but the income is high. And it’s very good for training a person. But the level of localization is generally very low, with few Chinese employees. The same is true for European and American engineering design firms: their level of localization is very low, but they represent the most convenient option in our industry. It’s basically impossible for a newcomer to get into these companies. Unless you work at a well-known design firm for ten or eight years first, and then master a foreign language! The income level at engineering companies in Europe and the United States is generally around 10,000 per month. There are offices in Shanghai, as well as in Beijing and Suzhou. I know a female designer who works full-time in HVAC at a very renowned design company in the United States; her monthly salary is around 80,000 yuan! The third is the manufacturing plant. In factories, the average salary is around 2,000 yuan; even if it’s a multinational company trying to set up operations there, it’s more or less the same. The salary for senior design engineers might be higher; YORK once offered 6,000 yuan to recruit staff. The job related to machine room air conditioning comes with the highest earnings in the manufacturing industry, with typical after-sales service salaries around 6,000 yuan. Around 5,000 units are sold. No commission. But there is a bonus. But most of it is done by **agency companies. Better ones include Liebert, Denco, APC, etc. In the field of home central air conditioning, aside from a few companies that are the regional agents for foreign trading firms in China – such as Jim for Goodman, which is represented by Meishi Foreign Trade Company, and Rheem represented by Shanghai Xilaikez – with revenues of around 5,000 units, the revenues of the rest are not high. For new sales staff in domestic companies, the salary is usually around 1,000, and business expenses are strictly controlled, making it difficult to succeed in this role. A few foreign brands such as TRANE, YORK, Daikin, etc. cost around 2,000 yuan. There is a certain commission, but the tasks are demanding and the pressure is high. It can be easily fired. The average annual income is around 30,000 to 40,000. (Newcomer). The number of senior employees is about twice as high. Finally, there is the sales of large central air conditioning units. Companies with relatively high salaries include YORK, TRANE, MCQUARRY, CARRIER, RC, DUNHAN-MBUSH, Mitsubishi Electric/Heavy Industries, Daikin, etc. The starting salary for newcomers is usually around 2000, but it is said that last month a certain office in the central region of YORK offered a new low starting salary of 1000 for sales positions, with commissions included as well. Not high. Generally, new employees earn around 30,000 per year. Business expenses are quite flexible. The veteran employees are much better. For places like YORK, the income can be 80,000 to 90,000 per year. The salary of office managers is generally around 10,000 yuan. Everyone at the headquarters earns a high salary; those with official titles earn around 10,000 yuan per month. The localization is very high. Generally, most foreigners are not included; TRANE and YORK are considered better options. There aren’t many foreigners among them, and the majority are from **Mainland China and Taiwan. Those who can understand materials in a foreign language, have a bachelor’s degree in HVAC, and have one year of work experience all have a chance. Domestic manufacturers such as some Taiwanese brands, Tsinghua Tongfang, and Korean brands earn around 1,000 yuan per month; however, the commission rates are high and the policies are flexible. The downside is that business expenses are strict and it’s difficult to break into the market, with operations mainly focused at the retail level. The markets for screw compressors and centrifuges are essentially dominated by the three major American companies, while the multi-unit and vRV markets are dominated by Japanese manufacturers. The above are just some of the situations I have encountered in my work; if anyone has any comments, feel free to add them.