Financial History 157 Spring/Summer 2026 | Page 38

conditioning systems for buildings including New York’ s Rivoli Theatre( 1922), Fresno’ s T. W. Patterson Building( 1926) and San Antonio’ s Milam Building( 1928). They were among the earliest of their type to boast of having an effective air conditioning system, indeed of creating“ manufactured weather” within their walls.
In 1929, after years of studying the problem and debating various solutions, the United States Congress hired Carrier to install air conditioning in both the House and Senate chambers. That same year, the Frigidaire division of General Motors developed a split-system room cooler meant to look like a radio cabinet and designed for use in office buildings, banks and restaurants. In 1930, both General Electric and Carrier introduced their versions of a similar appliance. The latter used a new refrigerant, Freon, to replace the poisonous and explosive refrigerants sulfur dioxide and methyl chloride. In 1932, engineers H. H. Schultz and J. Q. Sherman patented an air conditioner better suited to an individual room and capable of fitting on a windowsill. Early adopters purchased small numbers of each of the aforementioned products, suggesting at least a decent level of demand even during the Great Depression.
In 1932, the new 36-story headquarters of the Philadelphia Savings Fund Society( PSFS) in Philadelphia was the first of a new generation of skyscrapers to feature air conditioning throughout the building. Manufacturers sold $ 8 million worth of commercial air conditioning systems that year. In 1936, Heating, Piping and Air Conditioning documented the use of air conditioning in 76 % of Chicago’ s movie theaters. In a 1939 survey, Chain Store Age found air conditioning in 30 % of drug stores, 21 % of restaurants and 15 % of shoe and apparel stores. Also that year, Willis Carrier himself dedicated the“ Carrier Igloo of Tomorrow” display at the New York World’ s Fair. That air-conditioned exhibit exposed many Americans to this cooling technique for the first time. In 1940, the Edison Electric Institute suggested that 90 % of the country’ s air conditioning capacity involved commercial comfort cooling, rather than industrial process cooling. Despite the growth of air conditioning in various business establishments, by the end of 1941 none of the dozen companies offering those systems had produced a practical, efficient and
Carrier Corporation
Portrait of Willis Carrier, 1915. His company, Carrier Engineering Corporation( CEC), was the leader in developing air conditioning systems.
cost-effective appliance to cool and dehumidify the typical home.
Early in 1942, War Production Board Order L-38 strictly controlled what was already a limited production of both commercial and residential air conditioners. The Board asked major retailers and other commercial establishments to lend 7,000 tons of air conditioning equipment to factories making war materials. During the war years, Carrier Corporation and others generated about half their revenue from providing air conditioning systems for factories, mines and blast-iron furnaces. They also developed specialized products for temperature-sensitive sections of submarines and battleships. Meanwhile, the limited availability of refrigerants and spare parts caused commercial establishments and consumers with existing air conditioning units to renew their interest in ice.
Air Conditioning in Post-War America
The manufacturers of air conditioning products certainly participated in the post-war economic boom. But studies examining the rate of diffusion across business sectors and geographic locations show how that technology spread unevenly across the country.
Retailers that experienced meaningful sales declines in the summer months and those that typically involved a leisurely visit by the consumer adopted air conditioning more quickly than other stores. By 1955, the prevalence of air conditioning in restaurants exceeded 75 %. At that time, surveys suggested that only 25 % of grocery stores and 15 % of hardware stores were air conditioned.
Only 10 % of office buildings were air conditioned in 1941. That rose to 16 % in 1951 as architects and builders began to develop new methods and materials to retrofit existing buildings with air conditioning and equip new construction with that feature. By 1955, air conditioning was present in about 30 % of office buildings nationwide. Offering personal comfort enabled workers to become more productive, so having central air conditioning started its decades-long shift from being a competitive advantage to an absolute necessity.
In 1946, homeowners purchased 48,000 window air conditioners. Manufacturers such as Carrier, Frigidaire and Fedders introduced improved models in the early 1950s. The industry sold one million units in 1953 and twice that number in 1957. Central home air conditioning evolved in a slow but steady manner. When Levitt & Sons built its Levittown housing development on Long Island between 1947 and 1951, they did not find much demand for that option. In planning the second Levittown to be built in 1955 in Bucks County, PA, however, Levitt made a Carrier central air system a standard feature.
Geographically, air conditioning spread more quickly in the South than in other sections of the country. By 1955, one in 22 homes nationwide had it; in the South, the ratio was closer to one in 10. By 1960, 12 % of all homes nationwide had either a window unit or central air; in the South, about 18 % had one or the other. In Washington, DC, the ownership rate was 21 %. Indeed, that capital city had more air conditioning units per capita than any other metropolis, possibly because of the extensive use of central air by the federal government. In 1956, after conducting a study of its impact on worker productivity, the General Services Administration( GSA) had mandated the addition of central air to all new federal buildings.
From Luxury to Necessity
In 1959, the chairman of Carrier Corporation opined that after a lengthy period of adolescence, air conditioning was finally ready to“ come of age.” Throughout the
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