Who Makes Rheem AC Units—and What It Means for You

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Hey folks, Mike Sanders here. You know I like to keep things real — no overcomplicated jargon, no gimmicks, just straight talk about HVAC systems and what you need to know to make the right choice for your home.

Today we’re going to dig deep into one of the most common questions I hear from homeowners: who makes Rheem AC units, who makes Rheem AC, and who makes Rheem air conditioners. Whether you’ve seen their name on a neighbor’s condenser unit, on a contractor’s truck, or in a home improvement store, there’s a good chance Rheem has popped up in your search for a new air conditioner.

Before we get too far down the rabbit hole, let me get my one pillar-page mention out of the way. If you’re looking for a reliable, efficient, and modern system, the Goodman 3-Ton 14.5 SEER2 R-32 Bundle is a great example of performance meeting value. Now, back to Rheem.

The Short Answer

If you want the quick version: Rheem AC units are made by Rheem Manufacturing Company, headquartered in Atlanta, Georgia, and owned by Paloma Industries, a privately held company from Nagoya, Japan.

So when you’re asking who makes Rheem AC, you’re really talking about a U.S. brand with deep roots in American manufacturing, backed by global resources and technology from its parent company.

The Full Story: Rheem’s Origins

Rheem got its start way back in 1925 when brothers Richard and Donald Rheem founded the company in Emeryville, California. The early days were all about water heaters and steel drums.

It wasn’t until the 1950s that Rheem expanded into air conditioning, and from there, they steadily grew into one of the biggest names in HVAC. In 1988, Paloma Industries acquired Rheem, giving them the financial backing and global reach to take their products to a whole new level.

If you want to see the full history, the Rheem corporate history page does a great job walking through their timeline, milestones, and innovations over the years.

Where Are Rheem Air Conditioners Made?

A big part of the who makes Rheem air conditioners conversation is where they’re actually built. While some brands have shifted most of their production overseas, Rheem still maintains a strong U.S. manufacturing presence.

Major U.S. facilities include:

Fort Smith, Arkansas – The largest Rheem HVAC plant, producing residential and light commercial systems.
Montgomery, Alabama – Specializes in water heating and some HVAC production.
Oxnard, California – West Coast distribution and assembly.
Eagan, Minnesota – Focused on commercial HVAC.

On top of these, Rheem operates manufacturing plants in Australia, Canada, Mexico, Brazil, and Singapore.

If you’re curious about exactly what’s made where, Who’s Query lays out a detailed breakdown of Rheem’s manufacturing locations.

Who Owns Rheem?

Rheem’s parent company, Paloma Industries, is a Japanese manufacturer best known for its water heating systems. Paloma bought Rheem in 1988, and the move gave Rheem access to more advanced manufacturing technologies and a stronger international distribution network.

Despite the Japanese ownership, Rheem still manufactures a significant portion of its products in the United States, which helps keep quality control tight and supports American jobs.

The Rheem Brand Family

A lot of homeowners are surprised to learn that Rheem isn’t just Rheem — it’s part of a larger brand family. The most notable sibling brand is Ruud, which is essentially Rheem equipment with a different nameplate.

According to GreenyPlace, the company also owns:

Raypak – Specializing in commercial boilers and water heaters.
Richmond – Known for residential water heating.
Russell and Kramer – Refrigeration brands used in commercial applications.

This multi-brand approach allows Rheem to target different market segments while leveraging the same core engineering.

How Rheem Stacks Up in the Market

Now that we’ve covered who makes Rheem AC units, let’s talk about where they fit in the bigger HVAC picture. Rheem is generally considered a mid-range brand. That means you get good performance, solid efficiency, and decent warranties without paying the premium prices that come with luxury-tier brands like Trane or Carrier.

Strengths of Rheem AC Units

Good Efficiency Options – Many models hit SEER2 ratings in the mid-to-high teens, with top models exceeding 20 SEER2.
Quiet Operation – Especially in variable-speed systems.
Solid Warranty – Many models come with 10-year parts warranties.
Technician-Friendly – Good service access and readily available parts.

For an easy-to-read breakdown of cost, efficiency, and reliability, Today’s Homeowner’s Rheem AC review is a solid resource.

Comparing Rheem to the Competition

If you’re in the market for a new AC, Rheem will likely be on the same shortlist as Goodman, Trane, Carrier, and Lennox. Here’s how they compare:

Goodman – Often more affordable, with a reputation for simple, durable design.
Trane – Premium pricing with top-tier engineering and longevity.
Carrier – Known for innovation and high-end efficiency, but also at a higher price.
Lennox – Focuses on ultra-high efficiency, but parts and service can be costly.

Rheem fits comfortably between budget and premium brands, offering a balance of value and performance.

Technology and Features in Rheem AC Units

When you’re asking who makes Rheem air conditioners, you might also be wondering what kind of technology they put inside them. Here are some highlights:

EcoNet® Smart Monitoring – Lets you control and monitor your system from a smartphone.
Variable Speed Compressors – Improve efficiency and comfort by adjusting output based on demand.
Enhanced Coil Design – Uses rifled copper tubing and aluminum fins for better heat transfer.
Powder-Coated Cabinets – Better corrosion resistance for longer lifespan.

Is Rheem Right for You?

Choosing the right HVAC system comes down to your budget, efficiency goals, and how long you plan to stay in your home. If you want a dependable, American-made system that doesn’t break the bank, Rheem is worth serious consideration.