HVACR Business July 2019 by HVACR Business

High-Performance Building Market Transformation Pete Grasso 5

Why Worry About Airflow? Randy F. Petit 12

Educate Your Customers on System Care Joel Frederick 15

Are Your Financial Statements Wrong? Ruth King 17

Reasons We’re Failing to Attract Millennials Dillon Collier 19

HVACRBUSINESS.COM JULY 2019 / VOL.14 / NO.7

CONNECTED HOMES: YOUR KEY TO MORE PROFITS Page 8

ALSO INSIDE » Industry News ..........................................................6 Product Focus ............................................................21 20 Questions with Rory Richardson & Mike Hastings, Owners of Cardinal Heating & Air in Kirkland, Wash. ..................................................22

“

They said they were art collectors.

”

YOU HAVE ENOUGH THINGS TO WORRY ABOUT. UNRELIABLE PRODUCTS SHOULDN’T BE ONE OF THEM.

For generations American Standard has made some of the most-awarded and well-engineered heating and air conditioning products available. From our dealer-focused product innovations, to our large network of distributors—we focus on you, so you can keep an eye on everything else.

Find a distributor in your area at AmericanStandardAirDealers.com

CONTENTS

JULY 2019 / VOL.14 / NO.7

F E AT U R E S

Connected Homes: Your Key to More Profits Many manufacturers now offer smart thermostats that integrate with various connected homes platforms, and smart contractors are cashing in on this consumer-driven demand. By Pete Grasso

D E PA R T M E N T S

Why Worry About Airflow? The air surrounding us can be measured, filtered, circulated, cooled, heated, de-humidified and humidified; but first, HVACR professionals should understand it. By Randy F. Petit

Educate Your Customers on System Care The more your customers understand about their system and your business, the better the relationship you will have. By Joel Frederick

C O LU M N S

17 How to Tell if Your Financial Statements are Wrong

Editor’s Notebook Danfoss inspires industry change by gathering experts to discuss real problems and solutions. By Pete Grasso

Industry News

Product Focus

20 Questions with Rory Richardson & Mike Hastings Owners of Cardinal Heating & Air in Kirkland, Wash.

Accurate financial statements are critical to ensure that the business is profitable or to give owners the information they need to take steps to make it profitable. By Ruth King

Four Reasons We’re Failing to Attract Millennials It’s difficult to attract someone, much less top talent, when they have absolutely no clue you exist or what your industry is all about. By Dillon Collier

PREMIUM DYE. POWERFUL SEALANT. 2-IN-1 Solution 24/7 Performance OEM GRADE Fluorescent Dye NON-POLYMER Sealant MULTIPLE Delivery Methods

21 IN

Solution

FOR MORE INFORMATION, SCAN QR CODE OR VISIT WWW.SPECTROLINE.COM

Opt

for better

Choose the smart choice for a big change with OpteonTM refrigerants. Opteon™ portfolio of low global warming potential (GWP) refrigerants provide the optimal balance of cost, performance and sustainability. opteon.com

©2019 The Chemours Company FC, LLC. Opteon™ and any associated logos are trademarks or copyrights of The Chemours Company FC, LLC. Chemours™ and the Chemours Logo are trademarks of The Chemours Company.

EDITOR’S NOTEBOOK

BY PETE GRASSO THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

ADVERTISING STAFF EAST COAST/SOUTHEAST JIM Clifford Regional Sales Manager Tel 201-362-5561 Fax 201-334-9186 jclifford@hvacrbusiness.com MIDWEST ERIC Hagerman Regional Sales Manager Tel 216-409-3246 Fax 440-731-8750 ehagerman@hvacrbusiness.com WEST COAST TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 ttanker@hvacrbusiness.com

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S. The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information. Copyright©2019 by JFT Properties LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions: 1 year $48; 2 years $75; 3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www.hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Copyright © 2019 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440-731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Fax: (440) 731-8750 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

www.hvacrbusiness.com www.HVACRBUSINESS.com www.hvacrbusiness.com www.hvacrbusiness.com

High-Performance Building Market Transformation

hroughout my career, as an editor for this publication as well as a couple of others, I’ve attended dozens of industry meetings, conferences, seminars and trade shows. Some have been informative, and many have been quite educational.

in Washington, D.C.; and Majestic Lane, deputy of staff for the Pittsburgh Office of the Mayor.

The common format for almost every one has been nearly identical: attendees sit in a room and listen to a speaker (or panel of speakers) talk on a given topic. Occasionally there are questions from the audience that are addressed hastily either during the talk or, more commonly, at the end of the talk when there isn’t really enough time left for a good discussion.

We discussed the fiscally responsible and socially equitable approach New York is taking to face climate change challenges in the city’s neighborhoods.

Don’t get me wrong; these sessions have value. Whether you’re looking to learn more about a particular way to run a more profitable business or educate yourself on a new product or service, these industry meetings are a great way to better yourself as a business owner.

Each presented a fascinating case study about the status, aspiration and operational vision of their office as it pertains to transformational building energy retrofits.

We explored how Washington, D.C. is adapting a netzero building code for commercial buildings by 2026 and the challenge of connecting this effort to what really matters to people. And we learned about Pittsburgh’s four Ps: People, Place, Planet and Performance.

Danfoss inspires industry change by gathering experts to discuss real problems and solutions.

Recently, however, I had an opportunity to participate (and I do mean “participate”) in a meaningful, in-depth discussion that has huge potential to affect positive change. The annual Danfoss EnVisioneering Symposium is a unique roundtable discussion that brings together a cross-section of thought leaders on critical issues and trends that impact the HVACR industry. Though the EnVisioneering Symposia Series was launched in 2006, this was the first time I’ve been able to attend one — and my first reaction was a longing to go back in time and take part in every single one since its inception. Over the past 10 years, the Symposia Series has convened 30 roundtable discussions on topics ranging from net-zero buildings and the smart grid to the economics of energy efficiency and the future of refrigerants. The theme for this year’s Symposium was Deep Retrofits: Resilience, Efficiency and the Path to Sustainability. More than 40 of us sat around a long, U-shaped table set-up in a conference room of the Willard Intercontinental Hotel in downtown Washington, D.C. (a mere two blocks from The White House) and discussed the implications of emerging industry trends and the impact on various stakeholders. Split into three, two-hour blocks, each one began with a brief presentation from two or three speakers before a lively, meaningful discussion ensued from everyone around the table. In the morning, we heard from Eric Wilson, deputy director for the New York City Mayor’s Office of Resilience; Kate Johnson, chief of Green Building and Climate Branch

As we dove into the next topic of Resilience, Efficiency and Electrical Power, Lois Arena, director of Passive House Services for Steven Winter Associates, educated us on the Passive House movement and it’s similarities to LEED. Brad Pappal, general manager for Tustin Energy Solutions, presented a riveting case study of a small Pennsylvania farm that has found an indirect and new way to contribute to building efficiency and electrical power. The question he posed was: Will the rate of change increase by demonstrating alternative means of success? While a dynamic discussion ensued to try and answer this question, I couldn’t help but think how this simple question can be applied beyond the discussion. You can most certainly ask this question about anything, and in many cases the answer turns out to be “yes.” Think about ductless and variable refrigerant flow (VRF) technology. As more and more manufacturers and contractors have adapted and used this technology to demonstrate alternative means of success, has the rate of change increased? Or, take for example the subject of this month’s cover story (pg. 8) on connected homes. I spoke with many contractors around the country to get their thoughts on this emerging trend. As the technology has become available for your customers to control their comfort (and other aspects of their homes) in an alternative means of success, the rate of change has increased exponentially. There are more smart thermostats available today than even just a year ago, with many more ancillary products being introduced all the time. If you’re not willing and able to adapt to change, you may be left behind. u HVACR BUSINESS JULY 2019

INDUSTRY NEWS » Danfoss Names Public and Industry Affairs Director

LG Commits to Carbon Neutrality By 2030

BALTIMORE — Danfoss has announced the appointment of John Sheff as its new director of public and industry affairs for North America. Sheff will succeed Mark Menzer in the role when Menzer retires in July.

SEOUL — LG Electronics (LG) has launched its aggressive Zero Carbon 2030 initiative, committing to achieving net-zero carbon emissions from its global operations within 12 years.

Sheff previously was business development manager for Danfoss in North America, leading cross-business initiatives within buildings, including strengthening engagement with utilities and Danfoss partners to leverage incentive rebates to improve energy efficiency in existing buildings.

In line with its larger sustainable business strategy, LG will look to reduce carbon emissions from its global operations by 50 percent compared to a 2017 baseline by implementing various carbon reduction and renewable energy initiatives. This effort will help bring LG closer to reaching its ultimate goal of carbon neutrality, achieving a net-zero carbon emissions footprint by balancing carbon emissions with carbon removal.

John joined Danfoss five years ago as part of its two-year Post Graduate Program after earning an MBA from the University of Maryland’s Robert H. Smith School of Business. He also holds a second master’s degree from the University of Maryland’s School of Architecture in real estate development and sustainable urban development. He previously worked as a policy analyst for the office of former Maryland Governor Martin O’Malley, where he evaluated and developed energy efficiency and renewal energy plans for the State of Maryland.

John Sheff

Mark Menzer Sheff succeeds Mark Menzer, who is preparing to retire after five years at Danfoss and 35 years in the industry, having successfully helped to raise the voice of Danfoss and its industry partners in crucial discussions throughout Washington, D.C., and within key industry associations. In 2018, Mark was recognized by the Air-Conditioning, Heating, & Refrigeration Institute (AHRI) with its Richard C. Schulze award for distinguished service and commitment.

Through a variety of strategic initiatives, the company will cut carbon emissions across its global production sites from nearly 2 million tons recorded in 2017 to 960,000 tons by the end of 2030. LG is looking to expand its high-efficiency facilities and technologies targeting greenhouse gas reduction, alleviating the creation of carbon emissions during the production process. LG will expand renewable energy installations using solar energy products and actively utilize its own business-to-business technology solutions such as high-efficiency chillers and Energy Management Systems (EMS) to reduce carbon emissions. >> lge.com

>> danfoss.com

HVACR BUSINESS JULY 2019

www.hvacrbusiness.com

NEW

Daikin EMURA Form. Function. Redesigned. As awarded by The Chicago Athenaeum: Museum of Architecture and Design.

What does your ideal comfort zone look like? With the Daikin EMURA, now available in a single-zone application, you can transform any room into your own personal paradise. 2019

Learn more at daikincomfort.com/go/emura

CONNECTED HOMES: YOUR KEY TO MORE PROFITS

Many manufacturers now offer smart thermostats that integrate with various connected homes platforms, and smart contractors are cashing in on this consumer-driven demand.

BY PETE GRASSO

t’s an on-demand world and your customers want to be able to control just about everything with a touchscreen or even their voice — including their comfort. According to findings released from connected home studies that were fielded by Kelton Global and Research Now in the U.S., 81 percent of Americans either own or are interested in purchasing a connected home product in the next year. This — the rise of connected homes — could be a big business opportunity for you, the HVACR contractor. Consumers want this technology and these products and they’re going to buy them, no matter what. It’s up to you to ensure your customer base knows they can purchase a smart, Internet of Things (IoT) thermostat and, more importantly, have it installed properly by you, rather than purchasing from Amazon or a big box store and doing

HVACR BUSINESS JULY 2019

“While we would rather not have our technicians become IT support staff, we understand it’s important to be sure the equipment we sell is properly setup and functions to meet the expectations of our customers.” — Greg Mericle it themselves. And therein lies your challenge. You may already offer smart thermostats and other connected home products, but so does everyone else (both inside the industry and out). The burden is on you to educate your customers on why your company is the best option for these purchases. I recently interviewed a panel of top contractors from around the country to get their thoughts on smart thermostats and the contractor’s role in connected home services.

The panel includes Tim Cropp, president of CroppMetcalfe Services in Fairfax, Va.; Ken Goodrich, CEO of Goettl Air Conditioning in Las Vegas; Greg Mericle, president of Hurlburt Heating, Cooling & Plumbing in Durand, Wisc.; Michael Rosenberg, president of Rosenberg Indoor Comfort in San Antonio; Konrad Rybak, owner of Air Blue Heating and Cooling in Wheeling, Ill.; and Brian Stack, president of Stack Heating & Cooling in Avon, Ohio. Here’s what they had to say.

What kind of smart thermostat do you offer customers? Cropp: Sensi by Emerson, Aprilaire, Carrier Infinity and Rheem Econet. We chose these based on our existing relationships with these manufacturers. Goodrich: We offer the Emerson Sensi Touch smart thermostat to our customers. We align with the leaders of technology in our industry, Emerson clearly fits that role. The Sensi Touch is the most user friendly and intuitive programming of all the smart thermostats. It looks good too. Mericle: Two of our offerings are Honeywell and the other two are Lennox. As a Lennox dealer, the Lennox thermostats are a way for us to stay in the family and differentiate from offerings by our competitors. The Honeywell thermostats are easy to program and extremely versatile for many different situations. Rosenberg: We have always sold both the Honeywell and Emerson brand

www.hvacrbusiness.com

thermostats, even before they became WiFi enabled. They have always been reliable, so we trust those brands. We just started selling the Ecobee brand because of the extra features it offers. Rybak: Ecobee, Nest and Carrier line. We wanted to have multiple options that are eligible for utility discounts and they have a nice, sleek design. Stack: We use Nest, Honeywell and Lennox. We are a Lennox dealer so that is why we use that one. Honeywell also has a nice Wi-Fi/smart thermostat on the market with a trusted name. We did not start using Nest until last year. The newest generation is much more reliable and the amount of complimentary products to the Nest thermostat make it a great choice.

do not want the system to run. This helps energy savings — you can easily change the program on a bunch of thermostats with the press of a button. Rybak: We use ServiceTitan software with pictures to present multiple pricing options or have technicians bring the thermostats to show the quality and design.

TIM CROPP,

president of CroppMetcalfe Services in Fairfax, Va.

Stack: We offer them with all replacement equipment quotes. Our service technicians also mention the thermostats, along with doorbells, smoke/ CO detectors and cameras.

KEN GOODRICH,

CEO of Goettl Air Conditioning in Las Vegas

Who helps your customer set up the smart thermostat? Cropp: Our installers, technicians and sales representatives are all able to help set them up.

“I believe there is some opportunity for contractors to sell these products to loyal customers that don’t mind paying a little bit more to a contractor to have it professionally installed.”

GREG MERICLE,

president of Hurlburt Heating, Cooling & Plumbing in Durand, Wisc.

— Michael Rosenberg

How do you sell smart thermostats? Cropp: We sell them as part of a new system, and as technicians notice old thermostats they simply offer a state-of-the-art thermostat. Goodrich: We present smart thermostats as one of our product offerings in our mass media marketing. We describe the features and benefits of the product and refer to it as a smart phone thermostat. Our technicians are trained regularly on the benefits of upgrading to a smart thermostat and present them on every service call. We also include smart thermostats as part of the package of our top two highest quality system replacements. Mericle: We offer smart thermostats on every equipment sales call and do our best to offer them on service calls as well. Rosenberg: We talk about the following benefits: The thermostat can be accessed away from the home or office and changes to settings can be made; The status of your system can be looked at very easily from your iPhone or computer; You can set up vacation and holidays that you

www.hvacrbusiness.com

Goodrich: All of our technicians and installation teams are trained on the Emerson Sensi Touch thermostat and set them up while at customers’ homes. Mericle: While we would rather not have our technicians become IT support staff, we understand it’s important to be sure the equipment we sell is properly setup and functions to meet the expectations of our customers. For this reason, our technicians ensure that everything is set up on the customer’s phone/tablet and the customer understands how to use it. Rosenberg: We set it up when we install the thermostat and we show them how to use the thermostat. We also give them a support line for the manufacturer if they need future help. Rybak: Service technicians do all initial set up, then ask the client for their comfort levels and schedule. Once the technician leaves, it is all programmed and ready to go. Stack: Our technicians walk through the complete setup of the thermostat with

MICHAEL ROSENBERG,

president of Rosenberg Indoor Comfort in San Antonio

KONRAD RYBAK,

owner of Air Blue Heating and Cooling in Wheeling, Ill

BRIAN STACK,

president of Stack Heating & Cooling in Avon, Ohio

continued on page 11

HVACR BUSINESS JULY 2019

EASY

INSTALLATION. HARD TO BEAT. Built for faster, more efficient installation. This system was built with installation ease in mind. Our new CITY MULTI® N-Generation with VRF technology requires minimal to no ductwork, making installation a breeze. Learn more at NextGenVRF.com

CITYMULTI® N-GENERATION

Has the availability of smart thermostats and connected home devices at big box stores and online helped or hurt your ability to provide these as an upsell or add-on item?

continued from page 9

the customer. Once in a while you will find a homeowner who likes to do the setup portions themselves.

What kind of training do you provide technicians on selling/ setting up smart thermostats? Cropp: We teach soft skills during technician meetings and ride-alongs. Goodrich: Training technicians on using and installing the Emerson Sensi Touch smart thermostat is part of our ongoing weekly training routine. The Emerson representative also comes to our operations at least once per month and provides training. The smart phone thermostat is also included as a SPIFF to our technicians so they can use them in their home to understand them better. Mericle: Many of our technicians and installers have a smart thermostat in their own home so this certainly helps them sell. We use Lennox training for their thermostats and generally provide in-house for the Honeywell devices. Rosenberg: We provide both technical and sales training to our technicians. We do this in-house. Ecobee provides a sales training class, where they go over the benefits of the thermostat for our sales team and technicians. Rybak: We power up all thermostat in the training room and have training on them individually. When necessary, we send technicians to an all day class at a local vendor. Stack: We have done some hands-on training and video training with some of the technicians, however quite a few of them figured the installation out on their own without a problem. We continue to work with them to find ways to better communicate with the customer about the advantages to having a smart thermostat.

Do you offer any other connected home devices? Cropp: Yes, the Sensi-Predict system monitoring.

“Unfortunately, connected home devices are very easy to install by most people. The thermostat is the one device that will keep us connected to the smart home.” into this arena and compete with the likes of Amazon and Google who are severally ramping up their offerings and lowering fees. Rosenberg: At this time, we do not but we are looking into others that might make sense to sell. We have not jumped into it fully due to the licensing requirements in Texas for certain smart home devices, such as alarm systems that require a security license or a water main shutoff device which requires a plumbing license. I have been told that smart camera installs require a security license as well. Rybak: We offer COR which is a Carrier line for home security and automation that comes with a module that can handle a lot of items such as automatic blinds, thermostat, cameras and door security. Stack: We also offer cameras, doorbells, Nest Protect and water sensors.

Do you believe the smart/ connected home category will continue to grow? Cropp: Yes. Goodrich: Yes, we believe it will grow and other businesses will emerge in the market to sell and install products. Mericle: No doubt about it! Those who don’t have it, want it; those who have some, want more! Rosenberg: I do believe it will grow, but many customers will continue to go to big box stores like Home Depot and Best Buy to purchase them and then do it themselves. Rybak: I do believe it will grow to make things easier to operate. We have to get familiar with it all to stay in the game.

Goodrich: Yes, we offer connected carbon monoxide detectors.

Stack: Yes, and we need to be able to offer all of the devices that go with it, not simply the thermostat.

Mericle: We have looked very closely on multiple occasions at the Honeywell connected offerings. I’m hesitant to jump

If contractors are only offering one part, the homeowner will find someone else who is able to offer the complete package.

www.hvacrbusiness.com

Cropp: It has created more awareness of the products and made it easier to sell them, however, we also need to explain retail pricing vs. installed pricing.

— Brian Stack

Do you see this as an opportunity for HVACR contractors? Cropp: Yes … within limits, not as a prime line of business. We do electrical and I can see us installing smart switches and plugs. Price point for many of the products is too low for us to install. Additionally, most of the products have become simple enough to install so that most homeowners can do it themselves. Goodrich: We don’t recommend other HVACR companies focus on this until they are in the top three in their market. They should focus on their core competency before adding additional products. Mericle: I personally haven’t found a long-term sustainable opportunity. I feel as though Google and Amazon, not to mention Apple, Ring and numerous other companies, are making a huge push in this space and I’m not seeing a way to compete and make money at it in the long term. If there is an HVACR company who is killing it in the connected home space, please show me how. I hope we’re not missing the boat. Rosenberg: I believe there is some opportunity for contractors to sell these products to loyal customers that don’t mind paying a little bit more to a contractor to have it professionally installed. Rybak: Customers who want to add automation to their house don’t necessarily think of HVACR contractors to get this done. It’s all about mentioning and informing the clients that we could potentially get this done for them. I think it could develop into another section of our business that will bring revenue to our bottom line. We should maximize our opportunities we have while we are already in customers’ homes and have set relationships. Stack: Yes.

Goodrich: Neither. Our view is there is no smart thermostat market, we create the market with every customer interaction and service we do. We educate the customer about the product and the solution it provides to them. Mericle: Without a doubt, these other channels negatively affect the sales of these devices to some degree, however, most folks are willing to pay for the expertise offered by a professional to not only make the correct thermostat choice but also correctly wire and install it. When it comes to many smart home devices, they’re largely plug and play. Amazon devices generally show up to your door already registered to your account. Amazon is a 10,000lb Gorilla and I’m just a monkey. Rosenberg: It hurts because consumers know how much these products cost and when you add a fair mark-up, some consumers question what you charge. This makes it very challenging. Rybak: It helped our line. Some clients that are handy get it done and that’s fine, they have that option. On the other hand, we do constantly go out and fix the wiring or furnaces due to bad installation. Many times we end up selling a different thermostat at that time. Stack: Unfortunately, connected home devices are very easy to install by most people. As technology continues to improve, these systems become easier and easier to install. Just a few years ago you needed all kinds of wires to connect cameras around your home. Now, battery powered Wi-Fi cameras can be placed anywhere with ease! The thermostat is the one device that will keep us connected to the smart home. u

Pete Grasso is the editor of HVACR Business magazine. Email pgrasso@hvacrbusiness.com and let him know your thoughts on connected homes.

HVACR BUSINESS JULY 2019

WHY WORRY ABOUT AIRFLOW?

The air surrounding us can be measured, filtered, circulated, cooled, heated, de-humidified and humidified; but first, HVACR professionals should understand it. BY RANDY F. PETIT

irflow is one of the most overlooked functions of heating and cooling systems. System efficiency and comfort is compromised without the proper indoor airflow. A technician cannot properly charge an air conditioning system using the system superheat or subcooling methods when there is improper airflow. A heating system without proper airflow may operate at an unsafe temperature or short cycle, reducing the efficiency and life of the furnace. The quantity of air flowing across the evaporator changes the sensible to latent heat ratio of the air conditioning system, in turn changing the amount of moisture the system can remove. Nominal airflow for a central air conditioning system is 400 cubic feet per minute (CFM) per ton of cooling capacity.

HVACR BUSINESS JULY 2019

To understand how and why airflow is based on load calculations, we must understand air properties. Depending on ambient air conditions for a location, the quantity of air required across the evaporator for moisture removal could be as low as 325 CFM per ton. The airflow may be high as 450 CFM for environments with low humidity. System efficiency, air filtering, sound levels and most important of all, human comfort, are all influenced by system airflow. The airflow required for each room in a building is determined by doing a room-by-room load calculation. If a load calculation is not preformed then it’s all guesswork.

AIR PROPERTIES To understand how and why airflow is

based on load calculations, we must understand air properties. The properties of air are constantly changing with any change in temperature, humidity level or altitude. Common properties of air are normally listed at sea level conditions, 1 atmosphere of barometric pressure and 68F. The following are two air properties used in general calculations made by HVAC technicians: Density = 0.075 lbs. per cu. Ft. Specific heat = 0.24 Btu Using these two properties of air (density, specific heat) and time, we can derive a factor used to calculate airflow. The factor, Btuh and temperature

difference are used to calculate the airflow volume required for heating and cooling. This is a sensible heat factor used to calculate the volume of air based on the Btuh heating or cooling required for each room and the total Btuh for the structure. A room-by-room load calculation is the only acceptable method for determining required airflow for heating and cooling in each room. Some contractors guess by using the square footage or volume of a room. That does not work! Let’s say we have two rooms 12’ x 12’ x 8’. The rooms are side by side with one on the corner of the house. The loads for the floor and ceiling should be the same, but the load on the walls will be different. Room (a) has 96 Sq. Ft. of exposed wall and Room (b) has 192 sq. ft. The room (b) on the corner has twice the load on

www.hvacrbusiness.com

the wall and with a window in each wall the total can be a lot more. This means it must have more air entering for heat and cooling.

HOW THE NUMBERS WORK Remember I said the Sensible Heat Factor for air is used in the calculation. This is how numbers work. The properties for air at standard conditions are; Specific heat 0.24 Btu, Density 0.75 lbs. per cu. ft. and 60 minutes per hour. When multiplied we obtain a sensible heat factor of 1.08 (Some books round up to 1.1). 0.24 x 0.075 x 60 = 1.08 Let’s say room (a) has a load of 3,144 Btu and room (b) has a load of 3,288 Btu without adding Btuh loss for windows. Using the formula: CFM = Btuh ÷ (1.08 x ΔT), we can figure the amount of air required for each room. The temperature difference is determined using the sensible and latent loads calculated for the building. The sensible heat ratio is the sensible load divided by the total load of the building. Based on the sensible heat ratio (SHR) these are the recommended temperature difference across the evaporator.

Now we plug the numbers into the formula for CFM. Room (a) 3,144Btuh ÷ (1.08 x 19F) = 153 CFM Room (b) 3,288Btuh ÷ (1.08 x 19F) = 160 CFM When we look at the total airflow for the system, three scenarios can occur. For the same system, one contractor may use the 400 CFM per ton rule and adjust the blower for 1,200 CFM. The second contractor may use the proper method and adjust the blower for 1,437 CFM and the next contractor may base the airflow on the total Btuh for the system and adjust the blower for 1,754 CFM. In our example for the rooms, there is only a 7 CFM difference in airflow. It doesn’t seem like it would make that much difference but it does. The temperature split though the evaporator and how long the system operates determines the amount of moisture that will be removed from the air, making the home comfortable, dry or humid. With the nominal airflow of 400 CFM per ton which is the lower amount from

THE FACTS

ABOUT R-22 IN THE U.S. FACT 1: R-22 is readily available. FACT 2: R-22 will be available for years to come. FACT 3: R-22 pricing has decreased, so consider the high cost of replacement. FACT 4: R-22 is still the best choice for R-22 equipment. FACT 5: Forane® 427A is a leading R-22 alternative for retrofit. To learn more about all our offerings, go to our website: www.forane.com

Some contractors guess by using the square footage or volume of a room. That does not work! SHR Air ΔT 0.75 To 0.79 21F 0.80 To 0.84 19F 0.85 To 0.90 17F If we use for our cooling load, a sensible load of 29,479 Btuh and latent load of 6,471 Btuh we will have a total load of 35,950 Btu. The sensible heat ratio will be 29,479 Btuh ÷ 35,950 = 0.82, which gives us a 19F ΔT.

www.hvacrbusiness.com

our example. The air conditioning system will need to move tons of air a day in order to maintain set conditions. At standard conditions, air weighs 0.075 pounds per cubic foot. A three-ton air conditioning system, moving 400 CFM per ton, will have 1,200 CFM of air flowing through the system. 1,200 CFM multiplied by 0.075 lbs. per cubic feet equals 90 lbs. delivered each minute. Ninety pounds times continued on page 14

forane.com

HVACR BUSINESS JULY 2019

continued from page 13

60 minutes per hour equal 5,400 pounds of air. If the system runs for 20 hours per day, we are looking at 108,000 lbs. or 54 tons of air moving through the system by a ⅛ to ¼ hp blower motor. We usually

do not think about how much work the blower motor has to perform.

INCREASED EFFICIENCY Over the years, manufacturers have changed their design parameters in order

If Time Is Money, Meet Your Newest Money Maker.

to increase equipment efficiency to meet the Seasonal Energy Efficiency Standards (SEER). In the 1970s the evaporator design temperature started to climb from 40F to 45F and now as high as 50F. With

larger

condensers,

larger

This means when installing or servicing a system, matching the airflow with the sensible and latent loads is vital with high efficiency systems to get the proper moisture removal. An analogy I used when teaching technicians pertains to the automotive industry. When you bring your car or truck in for service, you expect the job to be done right. Spark plugs gaped to specs, right air pressure in tires, proper oil level etc.

D E S I G N

THE EASIEST DUCTLESS TO INSTALL, CLEAN AND SERVICE

40%

FASTER*

TO INSTALL

45%

FASTER* TO CLEAN

evaporators and smaller compressors the compression ratio is reduced requiring less electrical energy to do the same work in Btuh as the older units. The problem is the older systems with a 40F evaporator had close to a 30 percent latent capacity enabling high humidity removal and the newer systems average 20 percent latent capacity. This makes it more important than ever to have the airflow right.

When installing or servicing a system, matching the airflow with the sensible and latent loads is vital with high efficiency systems to get the proper moisture removal. If your gas mileage drops after the vehicle is serviced, you would complain, bring it back to the dealer and demand it be serviced at no cost to you. It is a lot harder for our customers to tell if their air conditioning system is operating at peak efficiency. They must depend on us to preform equipment service and installations, as they should be, to render efficiency and the comfort in their home you would expect. u

50%

FASTER*

TO SERVICE

NEW Floating Air® Pro & Premier Series Friedrich FastPro design makes installation easier and gives you the fastest access to the parts and components that typically require cleaning and service.

Randy F. Petit, CMHE, is vice president of program development for HVAC Excellence. He began his career as an HVACR field technician and later owned a refrigeration contracting firm. Petit spent 23 years in HVACR education with the Louisiana Technical College System as a teacher and program chair for Technology Programs. For additional

MAKE MORE MONEY ON DUCTLESS! Visit info.friedrich.com/fastpro or call 1-866-623-7822 *Faster than similar installation, cleaning and service performed on standard ductless wall-mounted units.

Friedrich_ACHR News_July.indd 1

HVACR BUSINESS JULY 2019

6/5/2019 1:38:18 PM

www.hvacrbusiness.com

EDUCATE YOUR CUSTOMERS ON SYSTEM CARE

The more your customers understand about their system and your business, the better the relationship you will have.

BY JOEL FREDERICK

ven the most skilled HVACR technicians know that becoming well educated in the field takes time, hard-work and does not simply happen overnight. Many of the clients we service on a day-to-day basis are unfamiliar with the industry and are looking to us, the experts, to provide more. Educating our customer where we can is a great way to build the relationship, establish trust and provide transparency. It all boils down to customer service. Itâ&#x20AC;&#x2122;s the number one priority for any service driven business. Our technicians do what they can out on the job to make sure that the customers receiving services are confident and comfortable when we leave. A part of making sure we deliver a quality job is providing the client with base level knowledge of their HVACR status and how to best take care of their system when

www.hvacrbusiness.com

At the end of the day, the work we provide is important to the customer, be they a homeowner or commercial landlord. The more transparency we can provide while educating the client, the better levels of customer satisfaction we can achieve.

By educating the customer on how to care for their systems, we can garner greater customer satisfaction as we place the power back in their hands. we are not on site. By educating the customer on how to care for their systems, we can garner greater customer satisfaction as we place the power back in their hands.

PROVIDE TIPS There are some tips about owning an HVACR system that every homeowner should know. Surprisingly, not many folks have ever had the opportunity to have that knowledge shared with them, especially from a source as reliable as a technician. Tips such as keeping your system clear

of debris, periodically changing the filter and bi-annual routine maintenance are all pieces of information technicians can offer that homeowners should know. Another way to further educate the customer is to explain in laymanâ&#x20AC;&#x2122;s terms any work that was provided during the service. Information such as the status of their systems and an overview of any services that were provided during a visit can make the client feel like your company is being transparent and going the extra mile to make sure the customers are in the loop.

Lastly, recommend resources that your customer can tap into after your visit. Recommending books or websites that have relevant and useful information gives your client the opportunity to learn more on their own time, should they choose to do so.

PREVENTATIVE MAINTENANCE DEALS Preventive and routine maintenance deals are a part of many of our business models. continued on page 16

HVACR BUSINESS JULY 2019

continued from page 15

These deals are valuable to homeowners and commercial property owners in establishing good rapport. Providing discounts on services is a way to demonstrate the business is willing to accommodate budgets of all kinds.

They also give your customers the opportunity to participate in discounted programs that offer recurring services, such as purchasing two bi-annual routine visits at a discounted rate. In this manner, sales are able to happen upfront and the customer is able to save

money through taking advantage of a discounted rate.

clients how to asses and care for their own systems.

RECOMMEND SOCIAL MEDIA

For example, if a technician finds a particular video online they think does a thorough job of explaining maintenance tips, then they can easily refer the video to a client so they can look into it themselves. It serves as something that can be referenced even after the technician has left the site.

One of the easiest and modern ways to educate your customers is to use social media. Video tutorials and instructional videos are valuable tools in teaching

Dependability meets availablity QuickTop Zone Valve™ • Lasts up to 60% longer than leading synchronous motor zone valves • Quick release actuator • Wire from either side

Another way to educate your customers on proper maintenance is to post general tips on your company social media account and website. This strategy is an easy, convenient, affordable way to teach and tell customers how to care for their appliances once you leave. Additionally, this method has the potential to increase your social media following and therefore increase your brand awareness.

Providing discounts on services is a way to demonstrate the business is willing to accommodate budgets of all kinds. The relationship between us and our customers is one we respect, and we show this through providing top-notch customer service. We hope you are able to take these tools and implement them into your next jobs. u

Zone Sentry® Zone Valves

Heat Motor Zone Valves •

Proven performance – millions installed

•

Silent operation

•

Twist off head for easy serviceability

•

Industry-leading energy efficiency and ease-of-installation

•

Flexible valve and actuator installation positions

•

Snap-in quick connects for fast wiring

Expect more with the full line of zone valves from Taco Comfort Solutions®. With the introduction of the new QuickTop Zone Valve, even more Taco-dependable options are available. Choose Taco quality & reliability for all of your zoning projects.

As president of Quarter Moon Plumbing & AC, Joel Frederick leads a great team that has been committed to serving the San Antonio community and surrounding Texas areas for over thirty years. Joel actively supports his community and dedicates much of his free time to volunteerism and service work. For additional information about Quarter Moon Plumbing & AC, visit quartermoonplumbing.com.

www.TacoComfort.com

HVACR BUSINESS JULY 2019

www.hvacrbusiness.com

FINANCE

BY RUTH KING

How to Tell if Your Financial Statements are Wrong

s owners and managers, your responsibility is to review accurate financial statements on a timely basis. This allows you to make good business decisions and spot minor issues before they become major crises. Here are seven, easy-to-spot things to look for when analyzing your financial statements. 1. Negative Cash on Your Balance Sheet. A business cannot have negative cash in the bank. Bankers will return any check to its sender without payment if there is not enough money in that account to cover the amount of the check. Normally when I see negative cash, it

Accurate financial statements are critical to ensure that the business is profitable or to give owners the information they need to take steps to make it profitable. means that a contractor’s bookkeeper is lazy. She printed all the checks that have to be paid for the time period and is holding them until there is enough cash in your checking account to cover the checks. With negative cash in the bank, a business owner doesn’t have an accurate picture of cash or accounts payable, so he can’t make good business decisions.

2. An Even Inventory Number — or No Inventory. There is less than a one in one million chance that a business’ inventory is exactly $20,000 or $3,500. When I see this I know inventory is not being properly tracked and that material cost is usually not accurate either. Or, if I see no inventory at all, I know the statements are wrong.

Inventory is a bet. A company owner has bet his hard earned dollars that when the company buys a part or piece of equipment that it can sell it soon. Making good bets is critical! Look at inventory in warehouses and on trucks. How much inventory has been sitting on the shelves for more than a year? Those are bad bets. 3. Balance Sheet that Doesn’t Balance. The definition of a balance sheet is that assets equal, or balance, liabilities plus net worth. If a company’s balance sheet doesn’t balance, then someone has incorrectly entered information into the accounting software. continued on page 18

Dynatemp Refrigerants Is Your One-Stop Shop for R22 Alternatives. Featuring R22 Alternatives R-422B and R-422D! We also carry: R-421A, R427A, RS-44b, RS-45, R421B

For more information call: (800) 791-9232 or visit our website: dynatempintl.com/r22alt/ Scan To Find A Distributor Near You!

TWITTER:

@dynatempintl

HVACR ad_9.25x3.75.indd 1

www.hvacrbusiness.com

INSTAGRAM:

Dynatemp Refrigerants

LINKEDIN: Dynatemp Refrigerants Company

FACEBOOK: Dynatemp Refrigerants Company

5/22/19 3:08 PM

HVACR BUSINESS JULY 2019

Company owners cannot make any good decisions about their business when the balance sheet doesn’t balance.

owes the company who borrowed money for a loan. Banks don’t owe companies unless the company has overpaid the loan and usually this is a very small amount due to a miscalculation at the last loan payment.

payment against the loan. Part of the monthly loan payment is principal reduction of the loan amount and part is interest the bank is charging for the privilege of obtaining that loan.

4. Negative Loan Balances. A negative loan balance means that the bank

Generally when I see this, a bookkeeper has entered the entire monthly loan

The interest is an expense to the business and is shown on its profit and loss

continued from page 17

No Sleepers on the Job! Support Rooftop Pipelines & Equipment with

statement. The loan principal reduction is shown on its balance sheet. 5. Negative Payroll Taxes Payable. Like negative loan balances, it is unlikely that the Internal Revenue service or your state revenue department owes the company money. Normally this is an incorrect entry from payroll. 6. No Rent, Utility Bill, etc. (or Extremely High Rent, Utility Bill, etc.). These are seen in the overhead segment of your profit and loss statement. The company pays rent every month. It pays the electric bill every month. If there is a month with no rent or extremely high rent, the likelihood is that the bookkeeper didn’t put the expense in one month and doubled the expense in another month. Both give inaccurate profit and loss statements. 7. Inconsistent Gross Margins. If the company is pricing its services and products the same every time, then the gross margins should be the same. Different departments and different classifications of work can have different margins. For example, the margin on replacing a fan motor is probably different than the margin on replacing a whole air conditioning system. The fan motor repair margin, however, should be the same each time (with rare exceptions). Differing gross margins is the first clue that labor productivity is up or down. Or, the accounting is wrong — the company has revenue in one month and the expenses against that revenue in a different month. Either way, owners cannot make good financial decisions when gross margins are inconsistent.

The use of wood sleepers for rooftop support of pipelines and HVAC equipment is on the way out. Even treated wood deteriorates from weathering and biological attack, causing pipelines to sag and HVAC equipment to tilt. KnuckleHead rooftop supports install just as easily as wood blocks — they can be loose laid but also attached where needed — and they will not deteriorate from weathering or UV exposure. Further, they are height adjustable by simply rotating the head and each can support up to 600 lbs. For pipes, struts, pavers — KnuckleHead supports are engineered to last the life of the roof — and they are economical.

Visit us at greenlinkengineering.com for details

888.672.9897 18

HVACR BUSINESS JULY 2019

Spotting these financial statement mistakes gives company owners a good idea that the company’s financial statements are wrong. Accurate financial statements are critical to ensure that the business is profitable or to give owners the information they need to take steps to make it profitable. u

Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv.

www.hvacrbusiness.com

RECRUITMENT

BY DILLON COLLIER

Four Reasons We’re Failing to Attract Millennials

t is a known fact that by 2020, Millennials will make up half of the global workforce. But what does this mean? It means, just like your customer base will shift, so will your pool of employees. Attracting quality help from any age demographic is difficult, so sometimes attracting Millennials can feel more like herding unicorns than sorting through applications (probably because there aren’t any). Why is this? The pay is good and there are always positions open, so why aren’t smart young people lining the sidewalk of your business for an interview? Here are four reasons we as an industry are not doing a good job of attracting

are drowning in student debt and are underemployed. That’s all good stuff but how do we change it?

APPEAL This may come as a surprise to some, but what Millennials want from work is not that different from what every other generation has wanted.

This kills two birds with one stone. It creates awareness for potential customers, as well as potential employees. It creates a clear call to action. Many times we view human resources and marketing separately, however, to gain the competitive edge they must be a joint effort.

• We want to work for a company we can be proud of, “an industry leader.”

Talented young people are still out there — and you can catch those elusive unicorns — you simply need to know where the unicorns live and play today.

• We want to be the best at what we do.

COOPERATION

• We want to be treated well economically and interpersonally.

Lastly, as an industry, we need to do more. The highly competitive nature of this business makes cooperation between different contractors difficult, to say the

• We want work/life balance.

least. We need to come together to fix this problem. If you’re not a member of your local HVACR association, you should be. If you are great, through these associations we need to push for more trade programs to open in our high schools and community colleges. u

Dillon is a HVACR advertising and Marketing professional for Effective Media Solutions. He can be reached at dillon@myeffectivemedia. com, or visit myeffectivemedia.com for additional information.

It’s difficult to attract someone, much less top talent, when they have absolutely no clue you exist or what your industry is all about. younger talent to the trade. Believe it or not your recruitment efforts better go hand and hand with your marketing. Keep in mind large outfits and corporations are paying big bucks to capture the most qualified Millennials.

MILLENNIALS DON’T KNOW HVACR When my friends ask me what I do for work I usually say something like “I create marketing plans for HVACR companies.” A common response I get is: “What’s HVACR?” They just don’t know. If I were to say “I’m a solutions architect” or “I’m a software engineer,” I wouldn’t get asked to explain. I’d get asked for whom. It’s difficult to attract someone, much less top talent, when they have absolutely no clue you exist or what your industry is all about. Which is sad because many of us www.hvacrbusiness.com

Mind blowing, right? Think about each of these points, and then think about how your organization fosters these within your company. If the answers come quickly and easily, then your company will win the war for qualified talent in your market.

ATTRACTION This is where your marketing and human resources efforts merge. We simply need to show Millennials that these rewarding opportunities are available through the proper channels. Where does one go to catch the unicorns? The Internet. A simple way could be to make a video demonstrating how your organization fosters the points mentioned above (the more visually appealing the better). Then distribute that through various social media channels with a link back to your website’s career page further explaining the benefits of working for your company.

WHEN TOOLS WORK BETTER TECHS DO, TOO.

THE NEW P51 TITAN™ DIGITAL MANIFOLD: DIGITAL PRECISION MEETS TOUCH-SCREEN CONVENIENCE. 4.3" full-color touch-screen display Connects to smartphone via Bluetooth® and ManTooth™ app Measures high- and low-side pressures and temps Displays saturation and evaporation temps

Superheat and subcooling calculations On-board data logging Choose from 126 refrigerant proﬁles Vacuum sensor and manifold hoses included

www.yellowjacket.com

HVACR BUSINESS JULY 2019

MEET ZOOMLOCK

FLAME-FREE REFRIGERANT FITTINGS

10 SECONDS. CONNECTED. MAKE MONEY USING

TEN-SECOND LEAK-PROOF REFRIGERANT FITTING • Increase your capacity for sales growth. • Install systems safer and cleaner. • No brazing. No flame. No fire watch required.

Visit www.zoomlock to calculate how much money ZoomLock Flame-Free Refrigerant Fittings will put on your bottom line and to get a free 10-second demo. Labor and time saving solutions from Parker Sporlan - helping your business win MORE business.™

zoomlock.com

PRODUCT FOCUS »

LG MULTI V™ S

A.O. SMITH

BOSCH THERMOTECHNOLOGY

NORTEK GLOBAL

LG’s Multi V™ S is a compact and lightweight 5-ton heat recovery unit that only requires single-phase power, making it the first of its kind in the U.S. market. In the smallest footprint available for a VRF, heat recovery system, the Multi V S provides simultaneous heating and cooling for up to twelve indoor units, ensuring user comfort and providing a viable heat recovery solution for residential and light commercial applications. Featuring LG’s high efficiency inverter scroll compressor, the Multi V S boasts a wide operating range with cooling capabilities in ambient temperatures up to 122°F as well as heating operation down to -13°F making it a great solution for year-round comfort.

The Cyclone LV is a large volume commercial water heater, which rounds out A.O. Smith’s industry-leading Cyclone family of high-efficiency gas products.

The Bosch Inverter Ducted Packaged Unit air-source heat pump provides superior efficiency, with a seasonal energy efficiency ratio (SEER) rating of up to 19, and a heating seasonal performance factor (HSPF) of 8.5.

The W-Series of air conditioning and heat pump equipment for residential and light commercial applications completes the final phase of an overall redesign of Gibson, NuTone and Frigidaire branded 1.5 to 5-ton, single-phase air conditioning units and heat pumps.

>> lghvac.com

>> hotwater.com

>> boschheatingandcooling.com

NU-CALGON

RESIDEO TECHNOLOGIES

TACO

VENSTAR

Nu-Calgon has launched a new UV light-activated, self-adhesive repair patch designed for use in HVACR, plumbing and a variety of other applications. Called the Quick Seal Repair Patch, the fiberglass-reinforced patch is made of polyester/plastic that bonds to all types of pipes and condensate pans.

The new T10 Pro Smart Thermostat features wireless RedLINK sensors with a range of up to 200 feet, helping provide whole-home comfort. The new sensors monitor temperature, humidity, and motion; helping balance hot and cold spots in a home, and offer advanced features, including: people detection capabilities, Unmatched range up to 200 feet and a simple user experience and set up.

Taco Comfort Solutions’ 0018e high-efficiency, Bluetooth-enabled circulator brings a new level of control to residential and light commercial hydronic systems.

Compatible with Venstar’s ColorTouch, Explorer and Explorer Mini Wi-Fi connected thermostats, the new mini Wi-Fi sensor enables users to remotely measure indoor and outdoor air temperatures. Using two AAA batteries, the mini sensor is expected to last longer than a year, assuming solid Wi-Fi connection.

Extremely durable, flexible and waterproof, Quick Seal Repair Patch cures when exposed to UV light or sunlight. It can be drilled, tapped, sanded or painted in less than an hour, and it is resistant to many chemicals, solvents and oils. Quick Seal Repair Patch comes in three sizes and can be cut to size, resealing any extra material in its original package.

A. O. Smith created the LV model to serve the needs of facilities that require large storage for jobs with critical load requirements. The Cyclone LV model’s modulating process adjusts the burner’s firing rate to a specific demand, which allows for a highly efficient performance of up to 96 percent thermal efficiency while dramatically lowering operating costs. Cyclone LV products feature advanced electronic control with built-in diagnostics and free iCOMM remote monitoring.

Resideo enhanced the full-color touch display on the thermostat, allowing for full on-device setup and Wi-Fi connection using intuitive gesture controls, such as tap and swipe up/down. >> customer.resideo.com

With a fully modulating inverter drive that precisely matches the heating and cooling load, and a multispeed, electronically commutated motor (ECM) x13 blower for enhanced humidity control and quiet operation, the IDP is an ideal choice for residential and light commercial applications. The IDP’s 85-step compressor offers 25 to 110 percent capacity, with modulation in one percent increments.

The ECM-powered 0018e is a solution for contractors who want the durability, efficiency and simplicity of other Taco ECM circulators, while looking for more system feedback and control than has been previously available. The circulator features Bluetooth communication to a mobile app, providing real time control, diagnostics and reporting, such as installation history, power consumption, performance and runtime.

The W-Series’ air conditioning (WSA) is available in 13, 14 and 16-SEER models and the heat pump (WSH) in 14 and 16SEER models. Standard features include Copeland scroll compressors and a liquid line filter-drier for field installation in an accessible position to facilitate easy periodic change-outs. >> nortekhvac.com

With Venstar’s new Wi-Fi Mini Temperature Sensor, users can remotely measure air temperatures to ensure the most balanced and comfortable indoor environments. >> venstar.com

>> tacocomfort.com

>> nucalgon.com www.hvacrbusiness.com

HVACR BUSINESS JULY 2019

20QUESTIONS

with RORY RICHARDSON & >> MIKE HASTINGS

We sat down with Rory Richardson and Mike Hastings, owners of Cardinal Heating & Air in Kirkland, Wash., a 2019 Tops in Trucks Fleet Design Contest winner. Rory and Mike discussed making their mark, learning to lead and the importance of company culture. 1. Can you tell us about your background? Rory: We both started in construction. I started in the mid-80s installing solar heating systems and solar domestic hot water systems for a smaller solar company. Once the tax breaks ran out, I jumped in with a large HVACR company here in Redmond. Mike: I grew up back east and went to Wentworth Institute, a technical college in Boston, and got my associates degree, mechanical. I worked in New England for a few years doing industrial refrigeration and large systems. 2. Mike, what brought you to Washington? Mike: I decided to go back to school to finish my degree, and I decided to come out to the University of Washington. 3. What made you decide to go on your own? Rory: I worked my way into sales and decided, “I think we can do this on our own.” So, I joined up with Mike and we started chasing lumber trucks, following them around, trying to find jobs. What got us going was we had a pretty good connection doing tract homes, and I thought we would really make our mark doing tract homes in the area. 4. What was that like? Rory: I remember getting an opportunity to possibly do a couple hundred tract homes, and I just thought we were going to become millionaires overnight … until I put the numbers together, and they told me we were a little high. We’re working out of a 10x10 shed in Mike’s backyard. How could we be high? That burst my bubble. We realized tract homes weren’t where we’re going to make our mark. 5. So, where did you make your mark? Rory: We got introduced to a job from a friend of ours who was in the radiant industry. He was building a custom home that was going all radiant, but they didn’t have a forced air contractor. So Mike and I approached this contractor and got the opportunity to do this house, and that’s what got us into these big, large custom homes. That’s where we’ve pretty much made our niche here … the very high-end homes with heating systems ranging from $50,000 to $1 million. 6. How do you split roles as owners? Mike: I’m more of the type that likes to design and then install a system. Rory is more sales and marketing and gets the jobs, and then I take them and figure them out and get them in. 7. How long before you started to grow? Mike: I’d say the first five years were difficult. We were, essentially, just reinvesting in the company, and we had two or three guys with us. And then, we took on radiant heating as part of our product line, so we did radiant and forced-air under one roof. From there, that gave us the boost of volume because there weren’t that many players able to do both.

HVACR BUSINESS JULY 2019

8. What’s your business mix now? Mike: We’ve got new construction division, which is probably 40 percent of our sales. And then we’ve got retrofit and service, which makes up the difference. 9. What’s recruitment like? Mike: Very difficult. There’s a program in Seattle at CITC, which is a non-union apprenticeship program, so we’ve got two or three guys in each year. We’ve been, essentially, training our crew. 10. What’s your leadership style? Mike: I’d say Rory and I have a good cop, bad cop [laughs]. I’m the more calm and mellow approach and lead by example versus the iron-fist type, come down on people. Not that Rory does that. I’m more of a lead-by-example type guy, and it seems to work. 11. How is managing Millennials different? Mike: The way we were brought up is you get out of your truck and you start working. When they’re working, they’re great, but they tend to take breaks and look on their phone a lot, so we’re trying to figure out how to manage that. For the most part, if they’ve got good leadership they work hard. 12. How has your leadership changed as you’ve grown? Rory: One of the things we’ve really done over the last five or six years is to put department heads, managers of each department — our service manager, our retrofit manager, our construction manager — and give them the ability to manage their team and set up incentives. I think we’ve done a pretty good job of setting expectations for our employees. 13. How do you ensure you’re getting the quality you expect from your team? Mike: I’m on the road a lot. I’m personally bouncing around to the projects quite a bit, either helping technically or just reviewing. And we’ve got a few good lead journeymen that know the game, and they keep a good eye on things. Rory: It’s also constantly instilling our company culture.

14. What is your company culture? Rory: One of the things we hear a lot when we’re having a company meeting is, “Hey, that’s not the Cardinal way.” I’ve said this, “What is the Cardinal way?” To me, it’s really having integrity on a job site. I preach this forever, that integrity, to me, is doing what’s right when no one’s looking, constantly doing the best you can. 15. How do you motivate your team? Rory: I think people see that we’re always trying to keep morale up. Sometimes, it’s hard in the grind, just day in and day out. Some of these guys just feel like, “Boy, we’re just doing the same thing.” So we’re trying to come up with ways of mixing it up. Once a month, during our weekly safety meeting, Mike and I decided we’d make breakfast for the company. But now, making breakfast for 55 people means waking up at 3 a.m. to get here and scramble eggs. 16. What lead to the decision to redesign your trucks? Mike: We brought on Kevin Breiwick as general manager, and he came from a pure retrofit company, so all they did was replacement-type equipment. He was up to speed on the marketing and getting recognition with, essentially, the rolling billboards. He and my wife, Cindy, worked together on re-energizing things as far as logo and getting the new, fresh look out there. 17. What’s your favorite aspect of the design? Rory: That it makes you turn your head, look at it, and go, “What is that?” Every day I come into work, I drive by and look at our vans, and I take another look. At first, I’ll admit, I thought it was just too much. But, I’ve heard more in the last six months, “I’ve seen your vans. Wow, what a change. Congrats on your new logo!” It’s just amazing, the brand awareness it’s bringing to us. 18. What did your vans look like before? Mike: There wasn’t even a cardinal incorporated in it. It was just an oval that said “Cardinal Heating and AC.” Pretty basic. Rory: White van, red letters. 19. How receptive has your team been to the new design? Rory: The younger guys thought the wraps were the coolest thing in the world. What a great change. Some of our older technicians, however, fought it, like, “I don’t want to drive in that thing!” Now, I show them this magazine and they’re like, “Wow. Somebody did take notice.” 20. Is this part of a larger branding effort? Rory: Yes, in the last six months we’ve completely changed all of our uniforms and logo-wear.

www.hvacrbusiness.com

The

BEST

PEOPLE

for PORTABLE

COOLING BEAT THE HEAT WHEREVER YOU ARE Dealing with summer heat is a breeze with Spot Coolers! We provide portable cooling units that will keep your people and your facility cool and comfortable through the hottest days of summer. Our people are trained to help you find the best solutions to your cooling problems. So, donâ&#x20AC;&#x2122;t lose your cool! Call Spot Coolers today!

PORTABLE AIR CONDITIONING AND HEATING

RENTALS & SALES

800.367.8675 www.spot-coolers.com

MovinCool, SpotCool, Office Pro and Climate Pro are registered trademarks of DENSO Corporation.

DUSTIN HUFSEY AZLE, TX Franchisee

When I considered renaming a 30-year legacy... I certainly felt uncomfortable, but when it came down to simple priorities, the chance of continual and greater success won out. Just talking to One Hour opened my eyes to options I didn’t even know were out there. You’ll see my One Hour branded trucks now, but “Winner” is the real underlying name! And it all started with just a conversation...Shouldn’t you be talking? 866.370.8302

The information presented in this advertisement is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for general information purposes only. An offer is made only through delivery of a Franchise Disclosure Document that has been registered with and approved by the appropriate agency in your state, if your state requires such registration (unless an exemption applies). If you are a resident of, or wish to acquire a franchise to be located in a state requiring registration, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. One Hour Air Conditioning Franchising, L.L.C., 12 Greenway Plaza, Suite 250, Houston, TX 77046. Call 1-866-370-8302. ©2018 Clockwork IP, LLC. All rights reserved.