A system and method for installing a section of heat shrink tubing on a wire is disclosed. The system includes an infeed guide that receives the continuous length of tubing and initially opens the tubing from a compressed condition. The continuous length of tubing is received in a cutting guide and cut to a desired length. After cutting, a pair of spaced support jaws move together to open the cut section of tubing. A funnel having a first opening and a second opening is moved into engagement with the section of tubing such that the second opening is received within the section of tubing. A wire is inserted into the funnel which guides the wire into the cut section of tubing. Once the wire is received within the cut section of tubing, the funnel and support jaws are removed and the wire is removed with the section of support tubing installed thereon.