HVACR October 2019 by HVACR Business

Have a Clear Vision for Your Company Pete Grasso 5

Improve Your Communication Megan Jackson 10

Advances in Boiler Design John Kopf 13

You Can’t Take Percentage to Bank Ruth King 16

Soft Skills Benefit Whole Company Don Rackler 17

How Do YOU Define Success? Ron Smith 18

HVACRBUSINESS.COM OCTOBER 2019 / VOL.14 / NO.10

AVOID

TIME

WASTE

Strategic diagnosing and troubleshooting reduces both callbacks and time wasted accomplishing nothing. ALSO INSIDE » Product Focus ............................................................. 19 Differentiate Your Company .......................... 20 20 Questions with Jeff Nusz President of Reitmeier in Tualatin, Ore. …............... 22

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CONTENTS

OCTOBER 2019 / VOL.14 / NO.10

F E AT U R E S

Avoid Time Waste Strategic diagnosing and troubleshooting reduces both call backs and time wasted accomplishing nothing. By Jamie Kitchen

D E PA R T M E N T S

Editor’s Notebook You must decide where you want your company to go, and what sacrifices you’re willing to make to get there. By Pete Grasso

Improve Your Communication

Advances in Boiler Construction and Design

Product Focus

Today’s boilers feature advanced controls, efficient heating and are easily integrated into existing boiler systems to provide lower energy costs for facility managers and building owners. By John Kopf

Sponsored Content: Differentiating Your HVAC Company

Practice proper listening and communication to become a better leader. By Megan Jackson

C O LU M N S

You Can’t Take a Percentage to the Bank

Soft Skills Can Benefit Your Whole Company

How Do YOU Define Success?

Comparisons of gross margins among companies are unreliable. Gross margin is defined as gross profit divided by sales. By Ruth King

20 Questions with Jeff Nusz

President of Reitmeier in Tualatin, Ore

Make sure your technicians are making homeowners feel respected and that their concerns are genuinely being considered. By Don Rackler Regardless of the size and years of experience, there is certain information that is appropriate for all contractors when defining success. By Ron Smith

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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

Have a Clear Vision for Your Company

hile sitting on a plane recently, waiting our turn to take off from the crowded runway, I picked up a copy of Southwest Magazine and began flipping through the pages. I didn’t get far into the magazine before I stopped to read the editorial from Southwest Chairman and CEO Gary Kelly. Kelly talked about the importance of building a winning team and how he always looks forward to bringing his leadership team together each fall for a day of learning, inspiration and fellowship. Last year, Southwest brought in a legendary football coach to provide motivation to the team: Lou Holtz. Holtz was so inspiring, Southwest is bringing him back again this year. As a lifelong Notre Dame fan, this is what caught my attention and I read on.

HAVE A PASSION TO WIN “You can evaluate your passion to win by what you are willing to sacrifice,” Holtz says. “Focus on why you can win; no on why you can’t.” If you’re not in it to win it, you’re not going to win at all. You have to develop a passion to win and be successful and, if you do, then no obstacle will get in your way. You must decide where you want your company to go, and what sacrifices you’re willing to make to get there.

You must decide where you want your company to go, and what sacrifices you’re willing to make to get there.

According to Kelly, Holtz provided three simple rules that he sets for his teams and they embody the direction Southwest has for its team as well: 1) Do what’s right; 2) Do everything to the best of your ability; and 3) Show your team you care. It seems so simple. Common sense, really. But often it’s the simple things that get overlooked when you’re bogged down with running a business. It’s good to get a reminder every once in a while to take a step back and focus on what’s important. Many years ago, I picked up Holtz’s autobiography, “Wins, Losses and Lessons,” and couldn’t put it down. It remains one of the most fascinating biographies I’ve ever read. Since his astounding success on the sidelines and as an analyst, Holtz has continued to coach and inspire through his motivational speeches. After I landed, I began to research some of Holtz’s other words of wisdom and came across his five keys to success that are so relevant to life and business.

CHOOSE YOUR ATTITUDE “You cannot let other people determine your attitude,” Holtz says. “Life is 10 percent what happens to you and 90 percent how you respond to it.” As a business owner, you no doubt face problems on a daily basis. Life isn’t easy; but it’s up to you how you respond to adversity. The choice is yours. How you respond to rejection and how you approach life is determined by you — no one else. Successful people are self-disciplined and enthusiastic about everything they do.

UNDERSTAND YOUR PURPOSE “If you’re bored with life — you don’t get up every morning with a burning desire to do things — you don’t have enough goals,” Holtz says. “I can’t believe that God put us on this earth to be ordinary.”

Your purpose is your WHY — the reason why you do what you do and why you’re pursuing the goals you’ve set. You need to have clear objectives, and have a team ready to help you move toward your goals.

BE A DREAMER “Don’t maintain where you are — everything is either growing or dying,” Holtz says. “Don’t be a spectator. Don’t let life pass you by.” Your purpose should be connected to your dream. Use your dream to identify your goals and share it with your team. In this month’s 20 Questions interview (pg. 22), Jeff Nusz says it was important after 2008 to create a new vision for the company and gain the trust back from his employees by communicating that plan.

LIFT PEOPLE UP “Do right. Do your best. Treat others as you want to be treated,” Holtz says. “If you burn your neighbor’s house down, it doesn’t make your house look any better.” This isn’t just good advice, it’s the Golden Rule. I’ve spoke with many successful contractors over the years who subscribe to this way of thinking. In the end, they all have the same view when it comes to training and education: Make the industry better. What benefits the industry will also benefit your company. Be a positive influence on your team, your customers, your community and this industry. Success will undoubtedly follow. u HVACR BUSINESS OCTOBER 2019

BUILDING A HIGHER STANDARD. ONE DEALER AT A TIME. GENE LUCAS Owner

American Standard is all about doing what’s right for our customers. But we can’t do it alone. That’s why we created the Building a Higher Standard distinguished dealer award, to honor those dealers who have the same commitment to their employees, customers, and communities. Congratulations to Hospitality Heating & Air Conditioning Inc. of Rock Hill, South Carolina for being one of four outstanding 2019 winners. See how you can become a dealer at amsd.us

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Strategic diagnosing and troubleshooting reduces both call backs and time wasted accomplishing nothing. BY JAMIE KITCHEN

ne of the main points of an effective and strategic troubleshooting program is reducing callbacks.

It also is important, however, to reduce time wasted on activities that do not benefit a technicianâ&#x20AC;&#x2122;s ability to efficiently arrive at the core problem and then solve it. Worse yet is the additional time wasted to apply ineffective solutions that can require even more time to remedy. For example, adding additional refrigerant charge when it may not be required can result in serious damage to the system down the road â&#x20AC;&#x201D; and losing a compressor a few weeks after a servicing visit is not likely to reflect well on the contractor in the eyes of the customer. The good news is that an effective onsite procedure will reduce both call backs and time wasted accomplishing nothing of value. www.hvacrbusiness.com

Any program must be flexible enough to allow for the technician to apply their own knowledge rather than just blindly following a paint-by-number approach. THE SERVICE CHECKLIST To effectively reduce the chance of spending time onsite with little accomplishment to show for it, a strategic approach that guides the technician and provides an effective routine is essential. At the same time, any program must be flexible enough to allow for the technician to apply their own knowledge rather than just blindly following a paint-by-number approach. Ultimately, the goal should be to allow the technician to arrive and gather key value points along with several observations that together will provide insight into how the system is performing. In the case a system is not operational, the right strategy will allow for the proper

component replacement and start-up procedure so that the true underlying reason for the failure can be corrected, giving the system the best chance of meeting performance expectations. The foundation for this is the service checklist and, its partner, the startup and commissioning checklist. The purpose of these checklists is to ensure that all relevant points and observations about a job are noted so that a complete picture of the service call is obtained. The necessity of this stems from the simple fact that just because a system is operating and blowing cold air does not mean it is removing moisture which can

also be a big part of the load. Alternatively, just because it is obvious that a compressor is dead does not mean that simply replacing it will fix the leak, poor oil return or low voltage that killed it in the first place. There are key things that can be noted and acted upon to improve operation and/ or guarantee that the system will operate for years to come after the compressor is replaced. Poor dehumidification when corrected will result in far better comfort for the system owner, and eliminating a call back on a compressor replaced months ago will only benefit business and referrals. Doing it correctly the first time will save a lot of time both at the time of service and in the future. For this program to be truly effective and yield the most value, however, there continued on page 8

HVACR BUSINESS OCTOBER 2019

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must be more effort put forth than just the creation of a sheet with points to check and then making sure that each technician carries one in their truck. Rather, a concerted effort must be made to educate and inform each technician so that they fully understand the value of each of the checklist points and how they impact the success of a job on system operation.

A concerted effort must be made to educate and inform each technician so that they fully understand the value of each of the checklist points and how they impact the success of a job on system operation.

When a technician understands the relevance of a measurement, they are more likely to take the time to measure correctly. If you have more than one or two technicians on staff, chances are that they will fall along a varying spectrum concerning skills and experience. To address this and ensure that technicians benefit as much as possible, technicians should undergo training that addresses three key skills:

Another valuable tool is the use of Bluetooth-enabled sensors combined with a tablet that can display a variety of refrigerant and air side pressures and temperatures as well as voltage and current values. This allows one technician to simultaneously monitor different areas of the system, which is particularly useful when dealing with large split systems with remote components.

• Diagnosis of the problem(s). • Proper installation and commissioning practices.

These skills, along with the use of the service form, will help ensure that the time spent on the job site from start to finish is spent in the most productive manner possible. This program works because all aspects of it are closely tied together by the methodology used to execute them. This means that a program based on a core system of measurements and procedures can greatly help bring technicians up to speed and reduce the chance that they overlook or incorrectly interpret symptoms. It is a hidden training program that teaches the skills that schools do not have time to cover and ensures that you reap the benefits from it as quickly as possible. If we use an example to make the point, it would go something like this: When the technician shows up onsite, they should discuss with the customer what issues they are experiencing, asking strategic questions like when the issue first took place and if there were any circumstances that occurred right before

The ability to monitor several parameters in equipment such as vending machines and restaurant equipment before a technician can get onsite can provide key information very quickly and allow for a shorter servicing time since less time will need to be spent on diagnosis. This is especially important in terms of gaining an accurate and detailed history of how the equipment was performing before it stopped working.

TRAINING

• Proper documentation of a job, so that there is a recorded history of what took place.

the ability to access smart devices using the Internet of Things, while around for quite a while in food retail/supermarket applications, it is also becoming more common in commercial refrigeration as well.

such as prior service, etc. Next, they should do a visual inspection of the unit noting anything that stands out. While this would include obvious points, such as the type of metering device — TXV, piston EEV, etc., it could also even extend to things like excess foliage from bushes growing around the outdoor unit or anything else that may affect performance. From this point, the service call should continue to follow the strategy of gaining as much information as possible. What is the voltage value to the unit? If the system is operating, what are the refrigerant temperatures and pressures? Is the airflow through the condenser and evaporator at the recommended values? If the unit is not operating, is it due to a component failure or something like a pressure control that is set to an incorrect value? Once this point is reached, if the unit is operating, there should be sufficient information to ascertain how well it is operating. If it is not working, there should be enough information to identify what

HVACR BUSINESS OCTOBER 2019

is immediately causing the unit to not operate, such as an open control transformer. Aside from failed components, it can also offer some indications to any external causes like airflow issues that may be causing excessive discharge pressures or 186 volts to a 230-volt compressor. At this point, the correct servicing options should be clear and implemented — eliminating potential wasted time replacing parts that shouldn’t be or missing key pieces of information that would have led to a proper diagnosis. In addition and complementary to the service checklist, technicians should be encouraged to utilize the latest online tools to access manufacturers’ information such as data sheets, performance data, and installation and servicing notes.

DIFFERENT VALUES OF TIME It is important to not confuse reducing time waste with spending less time on a task; rushing is never a good way to reduce time waste unless you are in the business of doing as many jobs as possible regardless of the results achieved. To save a few extra minutes onsite, consider what can be done before a technician and the truck head out for the day — notably through a little preparation, taking advantage of new truck stock opportunities and minimizing time in traffic. For example, consider whether the truck stock of required tools and supplies are all on-board in a way that allows quick access?

Smart phones and tablets can be preloaded with the latest apps and links, and updated as needed to ensure quick access to valuable data. Making a phone call or searching online for information that should be readily available is a great example of time waste.

Dedicated truck stock components for servicing is just one good opportunity for saving time. If servicing ice machines is part of doing business, a universal ice machine TXV kit will save the drive to a wholesaler. It also reflects well on your technician, and therefore your business, when the TXV can be replaced on the spot and the restaurant can return to making ice in record time.

Remote monitoring of systems and

The same premise goes for residential www.hvacrbusiness.com

air-conditioning and commercial refrigeration businesses. Keeping stock of dedicated, universal kits will allow for more time spent repairing equipment and finishing a job than driving to and from suppliers. It is hard to overestimate the amount of time these can save in large metro areas. While the service documentation and step-by-step procedure lists are important, they can only serve as a guide. The technician must understand the importance and relevance of each of the steps as well as how best to effectively take measurements. Doing the exact required steps how and when they should be will save time and allow the technician to properly prepare a course of action. Furthermore, if they know what is required, they will make sure they have what is needed and save needless trips to the truck. Guiding your technicians through the system and highlighting how the various

The technician must understand the importance and relevance of each of the steps as well as how best to effectively take measurements. values are measured will help ensure that when it comes time to do it, they are up and at it and getting it done. Measuring the values of superheat and subcooling are a prime example as is measuring static pressure. It is important to measure correctly and at the right time so to avoid measuring at points and times that can give a false reading. In closing, to reduce time waste, focus your servicing strategy on: • Both the theory of how systems operate and what influences their performance. Never underestimate a comprehensive understanding of the basics of superheat and subcooling. These values, along with airflow and temperature, can effectively

communicate everything that is going on in a system. • The importance of taking a strategic step-by-step approach to troubleshooting and start-up and commissioning. This will both catch key information that will prevent premature component failure and will also eliminate time wasted on unnecessary actions that provide little benefit. • A goal of spending as much quality time as possible by minimizing time spent going to suppliers, making return trips to the shop and relying on outside technical support.

communication such as asking all of the right questions. Focus on air flow pressure and temperature, refrigerant P&T, electrical measurements and doing a quick but thorough general inspection. As systems get smarter and diagnostics and troubleshooting techniques improve, you’ll see the results in your bottom line. u

Jamie Kitchen is an account manager for Danfoss. He previously was the training manager for Danfoss in North America. Jamie has worked in several positions around the world to develop an expertise on the various considerations each region requires to achieve its air treatment needs — whether through refrigeration, air conditioning, heating or humidification. For additional information, visit danfoss.us.

• Proper onsite information collection, including thorough customer

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HVACR BUSINESS OCTOBER 2019

IMPROVE YOUR COMMUNICATION

Practice proper listening and communication to become a better leader. BY MEGAN JACKSON

t least once in every person’s life they will find themselves in a situation of total embarrassment, a situation where they understood or heard one thing, while the reality was something completely different. Our ability to listen and process information is key to navigating thru life’s twists and turns. For me, one of the most embarrassing moments of my life, and career, would prove to be an opening for my path in life. Back in September of 2007 I found myself unemployed and struggling in many areas of my life. I had the opportunity to interview at a local HVACR company thanks to a family member at the time, and while I didn’t have any direct experience with the field, I had worked for three years in a Property Management Company in Maryland that exposed me to many different trades. The position was for an Administrative

Face-to-face communication also avoids the temptation to multi-task while listening, which inevitably causes missed communication, mistakes and can be misconstrued as showing a lack of respect. Assistant and I knew that no matter what the field, I had plenty experience in computers and office processes and procedures. The interview went well, I thought, and I walked away under the assumption that the job was mine, I just needed to let the owner know of my intentions. Now we all know how well assumptions work … needless to say, I was a little off the mark. I let the family member, who was the current service manager, know of my intentions to start the Tuesday after the holiday and asked him to please notify the owner. Tuesday morning, I walked in with my lunch and all of my office/computer stuff.

HVACR BUSINESS OCTOBER 2019

I walked right to the only available desk, which I assumed was supposed to be mine, and started formatting the computer to my preferences and setting up all of my office materials. I left to go put my lunch in the fridge, and little did I know that while I was gone, the owner and the service manager began a game of “who hired Megan?” When it became apparent that neither of them had officially hired me, it became obvious that I had hired myself. Needless to say, no one in the HISTORY of the working world has ever had a more awkward first day then I did. Thankfully, the owner was gracious enough to let me stay with the

understanding that if at any time during the trial employment period of 90 days, if either he or myself thought that I wasn’t a good fit, we would part ways and there would be no hard feelings. That was 12 years ago last month.

CLEAN AND EFFICIENT COMMUNICATION My example and experience may have been humorous but not all situations of miscommunication end this well. As in all professions, clean and efficient communication and understanding is key to not only success, but also survival. Proper training and preparation are paramount. When faced with a generation where technology seems to be king, what are the answers to instilling proper communication? Research shows there are many different ways to communicate. People make hundreds of thousands of dollars each year continued on page 12

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teaching seminar’s on how to be a better leader, a better communicator or even a better listener. And while each of these instructors have their own “proven” methods, in the end the steps to proper listening and communication are simple.

FIND THE RIGHT TIME Understand there is a time and place to handle certain conversations or instructions. This can greatly improve one’s

Be forward and clear with your message to avoid confusion. ability to both concentrate and retain the information being shared.

SHOW RESPECT We’ve all been guilty of playing the telephone game, where a simple phrase becomes grossly confused and twisted due to lack of paying proper attention. Faceto-face communication in which eye contact is held can greatly increase the level of

CONTRACTORS As an HVACR contractor, you need every competitive advantage possible. By employing NATE-certified technicians, you’re making a statement to your customers that you value quality and recognize best practices.

Step Up with NATE Certify Your Technicians Integrating NATE is a great way to set the bar for excellence within your organization. Not sure where to start? Check out the following tips:

➤ Use NATE’s four-step career path, in-person and online resources to set up a training program for your techs.

respect between individuals as well as allowing the person giving the instructions the opportunity to ensure that everyone is paying attention and receiving the same message or instruction. Face-to-face communication also avoids the temptation to multi-task while listening, which inevitably causes missed communication, mistakes and can be misconstrued as showing a lack of respect.

TEACH BY EXAMPLE When communicating with another individual it’s important to treat and speak to that person in the same manner you wish to be spoken to. Screaming and hollering, no matter whether at a child or an adult, is a sure way to cause a break in the flow of information and communication.

LISTEN AND REPEAT When instructing or teaching another individual it’s important to not only speak clearly but to verify that the others involved understood what was being said. A simple request to have the information repeated back can avoid costly misunderstandings and confusion.

ENCOURAGE TAKING NOTES

As a qualifying member of the NATE Consumer Contractor Connection (C3) program, you are connected with consumers seeking contractors who employ NATE-certified technicians.

Communication is key but memory and the ability to return back to key points can lead to a higher level of success and avoid simple mistakes. Which is why it’s important whenever you are learning something new to take notes so that you can return to them whenever needed to double check your work and processes.

Boost your NATE Marketing

AVOID CONFUSION

➤ Use the NATE logo in all your advertising—website, literature,

Be forward and clear with your message to avoid confusion. Its very easy today for adults to be become side tracked or even “squirrel” when communicating with others around them. When instructing another individual it is important to stay on track and make sure to avoid side comments or opinions until after the initial conversation has been completed.

➤ Check with manufacturers to see if they offer compensation for technician testing and training.

➤ Find a testing organization online.

Get Listed on NATE’s Contractor Locator

business cards, quotes, ads, direct mail, clothing, and more.

➤ Brand your vans and even your shop. Find patches, promotional items, and more online!

they are saying rather than mentally preparing your next point. This fact holds true in every aspect of life where communication is involved. To properly communicate you must also be able to properly listen. One’s ability to clearly share information and instructions can help avoid simple mistakes and pitfalls in life.

KNOW YOUR AUDIENCE The methods of communication are almost as diverse as the different personality types that exist today. Generational differences coupled with your basic language barriers and the simple fact that some individuals are book learners where some are visual learners means that knowing the audience of those you are speaking with or teaching can make the difference between successful communication and a case of missed communication.

KEEP IT POSITIVE No one wants to listen to a Debbie Downer when receiving important information or when receiving instructions. While life can throw curve balls at any moment it is helpful to try and keep a positive outlook, specially when speaking with others around you. All news whether good or bad is easier to swallow and handle when laced with a little honey and a smile. Lack of proper communication is a burden that every person, business, industry, etc. deals with. This is a problem that knows no boundaries or exceptions and when left untrained can cause devastation and destruction in its wake. But all hope is not loss as we move forward in the future of not only the industry but for society as a whole. The steps are simple and once implemented properly the level of communication should over time increase and improve. u

Megan Jackson is the office manager for Redlaw Mechanical Inc., a community-minded air conditioning and heating maintenance and installation in Lancaster, Va. For additional information, visit redlawmechanical.com.

LISTEN AS YOU SPEAK asknate@natex.org 877-420-6283 natex.org

HVACR BUSINESS OCTOBER 2019

Better listeners make better communicators. Any couples therapist will tell you that whenever you are speaking with your spouse it is important to listen to what

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ADVANCES IN BOILER CONSTRUCTION AND DESIGN Today’s boilers feature advanced controls, efficient heating and are easily integrated into existing boiler systems to provide lower energy costs for facility managers and building owners. BY JOHN KOPF

ontractors, architects, engineers and others who specify commercial and industrial boilers continually seek systems that are more cost-effective, energy efficient and environmentally-friendly. The boiler industry has responded by making significant advances in both construction and design, with new systems offering greater efficiencies, cutting-edge technologies, advanced controls and the ability to integrate with renewable energy.

CONDENSING BOILERS GAINING MOMENTUM The boiler market has been slowly shifting from standard, non-condensing boilers to more efficient condensing units over the last couple of decades. Reasons for the switch to condensing technology include a desire for operating efficiencies that result in lower operating costs, increased awareness of energy efficient products and the growing number of governmental policies

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The benefits of building automation are improved occupant comfort, efficient operation of building HVAC systems and reduction in energy consumption and operating costs. and incentive programs. Energy-efficient condensing boilers first appeared in the U.S. market in the late 1990’s and their sales have grown exponentially. The movement accelerated when the energy crisis several years ago spiked fuel costs. The shift toward green building design and LEED certifications for installing high efficiency equipment has also driven the trend Many predicted that condensing boilers would make up half of the market by 2016, but the trend has been slower than anticipated. This delay is attributed to a couple of factors. For one, North American economies are not growing as

quickly as anticipated, making it more difficult for some businesses and homeowners to approve an investment in more advanced, pricier boiler technology. Additionally, federal rebates, which play a major role in encouraging installation of condensing technology, are no longer available. Some state and local municipalities offer rebates to help offset first boiler installation costs, but the lack of federal incentives has slowed growth. Though the market today is still dominated by cast iron non-condensing boilers — which make up about 60 percent of installations — it’s likely that condensing boilers will continue to experience growth

and play an even larger role in the hydronic heating industry.

GREATER EFFICIENCIES KEY DRIVER With an operating life measured in decades, purchasing a new or replacement condensing or non-condensing boiler is a significant decision. Most specifying engineers today seek the most energy efficient heating design. Since September 2012, the minimum boiler efficiency requirement or AFUE in the United States is 82 percent for gas hot water boilers and 84 percent for oil hot water boilers. Some jurisdictions in the U.S. have building or energy codes that require the reporting of the efficiency ratings of boilers and other heating products. Standard efficiency is anything below 90 percent annual fuel utilization efficiency (AFUE) while more than 90 percent is continued on page 14

HVACR BUSINESS OCTOBER 2019

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considered high efficiency. To reach levels above 90 percent, specifiers should consider installing a condensing boiler, as these units offer the greatest thermal efficiencies. Typical aluminum or stainless steel condensing models offer efficiencies greater than 90 percent AFUE. A condensing boiler extracts additional heat from the exhaust gases by condensing its hot water vapor to liquid water, thus recovering its latent heat of vaporization. By capturing some of the waste heat, the condensing boiler heat exchanger can be up to 10 percent more efficient than a conventional boiler operating in the proper conditions. Maintaining optimum boiler efficiency is critically important to minimizing carbon dioxide emissions, conserving fuel resources and lowering building operating costs.

ADVANCED CONTROLS DRIVING GROWTH Boiler manufacturers are re-gaining HVAC market shares by offering systems with more powerful and advanced controls. Condensing boilers feature significant advancements in ease of installation and controls when compared to traditional non-condensing boilers. Setup wizards offer simple, intuitive controls that help walk the contractor through menus during the installation process. Multiple preset systems are another popular new boiler control feature. These units feature pre-set heating systems for typical operating conditions built into the controller so installers don’t have to enter specific supply or return temperatures during installation. The contractor only inputs the specific application — such as radiant heat, snow removal or domestic hot water — which reduces installation costs and time while increasing reliability. In addition to ease of installation, condensing boilers feature significant advancements in boiler control that include remote control and diagnostics, boiler-to-boiler communications, modulating from maximum input to minimum input, rotating lead lag and integration with building automation systems (BAS). Facility managers want immediate access and control of a mechanical room no matter the location. Boilers today can

The future of boiler design is integration with renewable heating sources such as solar energy, geothermal, wind and biomass. be controlled through an iPhone and Android phone, computers and tablets and other devices, allowing an operator to change and optimize settings, review alarms and adjust parameters to changes in weather. Modern condensing boilers also have the ability to communicate with building automation systems. The benefits of building automation are improved occupant comfort, efficient operation of building HVAC systems and reduction in energy consumption and operating costs.

IMPROVEMENTS IN BOILER MAINTENANCE The ease of cleaning and maintenance of condensing boilers varies based on the type of technology and material design. Stainless steel condensing boilers feature either a water tube or fire tube heat exchanger. The water tube stainless steel heat exchanger consists of water inside a spiral tube with the flue gases on the outside. These units can be more difficult to clean due to the spiral design. The fire tube, on the other hand, features the flue gases on the inside and water on the outside. These are typically straight tubes and a facility manager can easily access them by opening the lid and cleaning them. As a result, fire tubes are becoming more popular in stainless steel condensing technology than water tubes. When HVAC equipment fails, it can be a building owner’s and facility manager’s worse nightmare. Heating units are typically down when they are running and needed the most. Also, there often isn’t a repair budget in place because the failure wasn’t anticipated. Therefore, facility managers today seek preventative maintenance options to avoid an expensive critical failure. One new trend in boiler maintenance that meets this demand is predictive maintenance. With this new advancement, maintenance personnel can receive a predictive analysis of what may happen to a boiler over a specific length of time such as the next six to 12 months. Manufacturers have developed this technology by factoring a certain set of

HVACR BUSINESS OCTOBER 2019

parameters and based on changes in those factors can predict when specific maintenance procedures — such as cleaning tubes or a heat exchanger — should occur to prevent catastrophic failure.

BOILER DESIGN DURABILITY Condensing is a fairly new technology, so it’s difficult to prove the durability of these units. With proper maintenance, it’s likely that these units can last anywhere from 15 to 20 years. Annual efficiency monitoring of the heat transfer fluid in condensing boilers with aluminum or stainless steel heat exchangers is recommended. Depending on the results, action can be taken to improve boiler efficiencies, resulting in lower annual operating costs. Standard, cast-iron boilers, on the other hand, can have a longevity advantage. It’s not uncommon for a cast iron boiler to have a useful life between 30 and 50 years. These conventional boilers are also designed to access tight spaces such as narrow hallways and small elevators, often a key factor in retrofit applications — which make up 90 percent of boiler installations. The installer can bring one cast iron section at a time where a complete boiler assembly is too large for the available entryway. Another new development in improving the life of condensing heat exchangers is the development of a non-metallic condensate base, which greatly reduces heat exchanger corrosion. While highly durable composite bases are not affected by acidic condensate, aluminum or stainless steel bottoms are affected. A non-metallic heat exchanger base protects against corrosion due to aggressive condensate resulting in longlasting service.

A solar water heater typically will not provide enough heated water by itself, but it can increase the energy efficiency of the system and work in tandem with a boiler. When water temperature drops below a certain level the boiler is activated to provide supplemental heat. In mild climates, such as on the East Coast or in the South, geothermal energy is becoming more prevalent. This application uses ground source heat pumps for heating and for cooling. Geothermal heat pumps use the natural warmth of the ground several feet below the soil to preheat water. A geothermal heating method can reduce the amount of natural gas, electricity or oil that a boiler uses to save energy. When more heat is needed, an electric or a conventional hydronic boiler is activated. The use of boilers installed in combination with renewable technologies and eco-friendly heating systems to improve efficiencies is on the rise. Modern boilers have come a long way in design and technology. Today’s boilers feature advanced controls, efficient heating and are easily integrated into existing boiler systems to provide lower energy costs for facility managers and building owners. u

John Kopf is senior product manager with Weil-McLain, a leading North American designer and manufacturer of hydronic comfort heating systems for residential, commercial and institutional buildings. Founded in 1881, Weil-McLain is based in the Chicago suburb of Burr Ridge, Ill., with manufacturing facilities in Michigan City, Ind. and Eden, N.C., and regional sales offices throughout the United States. Visit weil-mclain.com for additional information.

THE FUTURE OF BOILER DESIGN The future of boiler design is integration with renewable heating sources such as solar energy, geothermal, wind and biomass. Solar energy, for example, is popular in western U.S. states to pre-heat water tanks. www.hvacrbusiness.com

MEET YOUR DUCTLESS DREAM TEAM. Trane and Mitsubishi Electric have teamed up to offer ductless and variable refrigerant flow (VRF) systems that give you the best of both — advanced technology combined with the building expertise, service and support you expect from Trane.

FINANCE

BY RUTH KING

You Can’t Take a Percentage to the Bank

hear contractors brag about their bottom line percentage or their gross margin percentage. Neither of these percentages really matter. What matters is the bottom line dollars or that the gross margins are consistent.

BOTTOM LINE PERCENTAGES Those who talk about bottom line percentages turn those percentages into dollars in their minds. What were the actual bottom line dollars? That’s what they really care about. They can’t take the percentage to the bank. They can only take dollars to the bank. Go one step further: What was the actual net profit per billable hour? This is the number that really matters. Net profit per hour comparisons are the most accurate company comparisons. When owner’s compensation is added back to net profit, then net profit per hour comparisons truly define which company is most profitable. Let’s look at three companies, see chart below. All three companies have the same net profit percentage. Company B is the most profitable. It has the highest net profit per hour. Company C with half the revenues as Company A, is more profitable than Company A. The percentage doesn’t matter. The net profit dollars do.

GROSS MARGIN PERCENTAGES Comparisons of gross margins among companies are unreliable. Gross margin is

Comparisons of gross margins among companies are unreliable. Gross margin is defined as gross profit divided by sales. defined as gross profit divided by sales. Gross profit is revenue minus direct expenses or cost of goods sold (i.e. an expense you incur because you sold something). Gross margins vary widely depending on what expenses are put in direct cost and what expenses are put in overhead costs. There are three major variables: labor, sales person compensation and truck expenses. Labor expense is the greatest variable. Contractors can include only the direct cost of labor to perform a job or provide service in cost of goods sold. Or, they might put all labor expenses in cost of goods sold. This includes vacation, holidays, meeting time, and non-billable time. The next choice is to break out all unbillable or unapplied time and put it in overhead (including vacations, etc.) The fourth choice is to include benefits in cost of goods sold including FICA, medicare, worker’s compensation, etc. For union contractors, the choice is simple. They must pay the benefits package for each hour worked. All goes in cost of goods sold. For non-union contractors, most do

not include unbillable time or benefits in cost of goods sold. This makes it easier to track direct cost and overhead costs. Some contractors divide overhead costs into overhead compensation costs and other overhead. All benefits and unbillable time go in overhead compensation costs. Sales person compensation is the second variable. If a sales person is paid a salary plus commission, then the entire compensation can go in cost of goods sold or only the commission put in cost of goods sold. Truck expense is the third variable. Some contractors put truck expenses in cost of goods sold. Contractors who put all of the costs listed above in cost of goods sold, will have a lower gross margin than those contractors who only put hourly cost for installation or service and commissions in cost of goods sold. They will also have a lower overhead cost than those companies who do not put all of the costs listed above in cost of goods sold. If a contractor brags that their company’s gross margin is 60 percent then it is likely that only labor and material

Revenue

Net Profit

Net Profit %

Billable Hours

Net Profit/Hr

COMPANY A

$2,000,000

$200,000

10%

10,000

$20/hr

COMPANY B

$2,000,000

$200,000

10%

8,000

$25/hr

COMPANY C

$1,000,000

$100,000

10%

4,500

$22.22/hr

HVACR BUSINESS OCTOBER 2019

expenses are included in cost of goods sold. Another contractor might have a gross margin of 28 percent. Without knowing what is included in cost of goods sold, it is impossible to accurately compare the profitability of each company. The key is for gross margins to be consistent. If they are consistent, owners know that their pricing and the costs to produce those sales are consistent. They also know that the profit and loss statement is probably accurate with all revenues matching expenses incurred producing those revenues in one month. If gross margins are negative, that means that the company purchased goods/labor and sold it for less than it purchased them for. This isn’t likely. Usually when this occurs, revenues are in one month and the expenses incurred producing those revenues are put in another month. It is imperative to match revenues and expenses so owners can make sure pricing is correct. Percentages don’t matter. Dollars do.

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. She is president of HVAC Channel TV and holds a Class II (unrestricted) contractors license in Georgia. Contact Ruth at ruthking@hvacchannel.tv or 770.729.0258.

www.hvacrbusiness.com

COMMUNICATION

BY DON RACKLER

Soft Skills Can Benefit Your Whole Company

hat is the first day like for a newly hired technician in your company? Does the technician start working in the field on Day One? Will the technician receive any technical training prior to working? At Jon Wayne we take a different approach to onboarding our technicians. Regardless of their skill level, newly hired technicians will spend their first week or two learning about Jon Wayne culture and practicing pivotal skills required to be successful, such as soft skills. Soft skills are “personal attributes that enable someone to interact efficiently and harmoniously with other people.” At Jon Wayne we know our company’s success is dependent upon our technician’s ability to teach and interact with our customers. Each interaction a Jon Wayne employee has with a customer is an opportunity to improve a customers’ perceptions and reinforce the brand equity of our company. By deploying technicians with strong soft skills, we’re maximizing the customer experience and increasing the likelihood of maintaining them as a loyal customer. We strive to ensure that every interaction a customer has with our company is as consistent as possible. Developing a technician’s soft skills is simple but takes time. Ultimately, a technician will be reliant upon the employer to teach them how to interact with the customers. At Jon Wayne we emphasize two major principles to help technicians develop their soft skills:

TAKE AN INTEREST IN YOUR CUSTOMER This is simple but powerful. We stress to our technicians the importance of being engaged and genuine when interacting with customers. www.hvacrbusiness.com

We strive to ensure that every interaction a customer has with our company is as consistent as possible. This starts with a proper attitude, putting the customer’s needs before our own and building a relationship through genuine conversations.

and can take an interest in your customers by putting them first. Ultimately, customers will not remember what the technician told them.

Customers can tell when a technician is asking leading questions to generate a sale rather than taking a sincere interest in the customer. By being engaged and taking a real interest in your customer you are providing exceptional service which will help differentiate your company and technicians from the others in your market.

The customer will remember how that individual or that company made them feel. Make sure your technicians are making homeowners feel respected and that their concerns are genuinely being considered. It all starts with a firm handshake,

solid eye contact and taking the time to learn what the customer wants accomplished. u

Don Rackler is founder at Jon Wayne Service Company, a leading San Antonio plumber and the largest residential heating and air conditioning company in San Antonio. For additional information, please visit jonwayneair.com.

ALWAYS TELL THE TRUTH Customers deserve to hear both good and bad news. We rely on our technicians to properly convey issues and solutions to the customer. If a technician has to relay bad news, we expect the technician to communicate the concern to the homeowner effectively, offer a remedy to fix the problem and then proceed to fix the issue. Companies run into trouble when their technicians are already thinking about the next call, are eager to remove themselves from the situation or are not being transparent with the customer. In other words, they are thinking about themselves first and not others.

YOUR PHONE HAS IT. YOUR TABLET HAS IT. NOW YOUR MANIFOLD HAS IT TOO.

Our technician’s ability to communicate clearly to our customers is what has turned us into the largest residential HVAC company in San Antonio.

TOUCH-SCREEN TECHNOLOGY COMES TO HVAC/R SYSTEM MEASUREMENT.

An exceptional technician will have great technical skills and soft skills. A person can have all of the technical knowledge and ability in the world, but if they cannot sell themselves, it doesn’t really help anybody. As a business owner or manager, it is up to you to make sure you hire technicians who are able to communicate efficiently

P51-870 TITAN™ DIGITAL MANIFOLD 4.3” full color, touch-screen display Connects to smartphone via Bluetooth® and the ManTooth® app On-board data logging Vacuum sensor, hoses and carrying backpack included www.yellowjacket.com

HVACR BUSINESS OCTOBER 2019

LEADERSHIP

BY RON SMITH

How Do YOU Define Success?

’m often asked, after all of these years, this question by a contractor or a group of contractors: “What does my company need to do to be successful?” I learned many years ago that its important to know as much as I can about my audience, regardless of whether it is only one person or a large group of people, before I answer this question. For example: Are these smaller and newer contractors? Are they midsize contractors with a few years of experience? Are they large and highly successful

Regardless of the size and years of experience, there is certain information that is appropriate for all contractors when defining success. contractors that have been in business for several years? If I know my audience, I can tailor not only the answer to the question posed to me, but also to my presentation. Regardless of the size and years of

experience, however, there is certain information that is appropriate for all contractors, such as: Recognizing that there is a worker shortage. Are you diligent in your hiring decisions? Better hiring decisions result in less expensive de-hiring decisions. Do you have an ongoing training program for all coworkers?

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION (Requestor Publications Only) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Publication Title: HVACR Business Publication Number: 25431 Filing Date: 10/1/2019 Issue Frequency: Monthly Number of Issues Published Annually: 12 Annual Subscription Price: Free to Qualified Complete Mailing Address of Known Office of Publication (Not Printer): JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039; Contact Person: Barbara Kerr Telephone: 440-731-8600 Complete Mailing Address of Headquarters or General Business Office of Publisher (Not Printer) JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor Publisher: Terry Tanker, JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039; Editor: Pete Grasso, JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039; Managing Editor: N/A Owner – Full name and complete mailing address: JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of bonds, Mortgages, or Other Securities: None Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) (Check one) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: N/A Average No. Copies No. Copies of Single Publication Title: HVACR Business Each Issue During Issue Published Nearest to Issue Date for Circulation Data Below: September 2019 Proceeding 12 months Filing Date Extent and Nature of Circulation a. Total Number of Copies (Net Press Run) 27606 28213 b. Legitimate Paid and/or Requested Distributor (By Mail and Outside the Mail) (1) Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541 (Include direct 24287 23176 written request from recipients, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.) (2) In-County Paid/Requested Mail Subscriptions stated on PS From 3541 (Include direct written 0 0 request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies) 0 0 (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other paid or Requested Distribution Outside USPS 0 0 (4) Requested Copies Distributed by Other Mail Classes Through the USPS (e.g. First-Class Mail) c. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4) 24287 23176 d. Nonrequested Distribution (by Mail and Outside the Mail) (1) Outside County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, 3191 4931 Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources). 0 0 (2) In-County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests

Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources). (3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail (e.g. First-Class mail, Nonrequestor Copies mailed in excess of 10% Limit mailed at Standard Mail or Package Services Rates) (4) Nonrequested Copies Distributed Outside the Mail (Include Pickup Stands, Trade Shows, Showrooms and Other Sources) e. Total Nonrequested Distribution (Sum of 15d (1), (2), and (3) f. Total Distribution (Sum of 15c and e) g. Copies not Distributed h. Total (Sum of 15f and g) i. Percent Paid and/or Requested Circulation 16. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the October 2019 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager or Owner Terrence Tanker, Publisher 10/1/2019

3191 27478 108 27586 88%

4931 28107 105 28212 82%

I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

HVACR BUSINESS OCTOBER 2019

Does everyone in your company realize that regardless of their position they are also in sales? There are three ways every employee can contribute to sales: 1. Actually make sales and you will provide them the information and training to do so. 2. Furnish sales leads so other coworkers can make the presentations. 3. Say positive things about your company out in the community. Are you continually developing processes and then training the coworkers on how to use them? Having processes in place results in everybody doing certain things in the same way. The very first process might be how you answer the company phone. Using football as an analogy — first learn how to block and tackle. There is nothing wrong with “three yards and a cloud of dust.” We can throw long forward passes later. Remember that when you throw a long forward pass, three things can happen and two of them are not good. Do you make it a point to recognize coworkers when they do things well?

Do you practice MBWA? “Management by walking around” is very effective. Do not be a lone wolf. Join a contractor alliance (the very best is Service Roundtable which has tons of archived information, is always on top of the industry and is very affordable). Join a local community civic club such as Rotary, Kiwanis or Lions. In most cases the clubs meet once weekly for either breakfast or lunch. Be a regular attender and form relationships. It will result in sales. And don’t forget about your guerrilla marketing tactics: • Company business cards for all coworkers (remember, your coworkers should always give the recipient two cards). • Door hangers (the three houses across the street and the two houses next door). • Lawn or yard signs. • Stickers on competed jobs on the outdoor unit, indoor unit or furnace and electrical panel. • Thermostats with your company name and phone number. • And, this is very important: The most cost effective form of marketing is the condition and appearance of your vehicles. They are traveling billboards. Look at your trucks every day. u

Ron Smith is a well-known authority in the HVACR business with more than 50 years of experience as a contractor, franchisor, consolidator, and consultant. He is the author of HVAC Spells Wealth, More and New HVAC Spells Wealth and HVAC Light Commercial Service Agreements. Contact Ron at 615-791-8474 or visit ronsmithhvac.com.

www.hvacrbusiness.com

PRODUCT FOCUS »

DANFOSS

LENNOX

MITSUBISHI ELECTRIC TRANE

NORTEK GLOBAL

Danfoss Turbocor compressors to achieve the highest compressor efficiencies for water-cooled, evaporative cooled and air-cooled HVAC applications.

The Lennox Healthy Climate Carbon Clean 16 combines industry-leading MERV 16 filtration with activated, carbon-coated fibers to remove allergyaggravating particles from your home’s air. It provides powerful filtration without restricting the airflow of your comfort system.

Mitsubishi Electric Trane HVAC US LLC (METUS), a leading supplier of Zoned Comfort Solutions and Variable Refrigerant Flow (VRF) heating and cooling systems, introduces the new single-zone SUZ model universal outdoor unit.

Nortek Global HVAC has added the R7DA, a combination dedication outdoor air system (DOAS) and conventional space conditioning rooftop unit (RTU), to the Reznor and Mammoth branded R7 Platform product lines for optimum indoor air quality (IAQ) and space comfort in commercial applications.

Magnetic bearings, two stage centrifugal compression, a variable speed permanent magnet motor and intelligent electronic controls combine to create a sustainable energy efficient solution that is compact, lightweight and quiet. Combining these proven technologies, Danfoss Turbocor oil-free centrifugal compressor offers expanded capabilities in energy efficiency. Reliability is proven with over 45,000 compressors running in the field.

The Carbon Clean 16 helps prolong the life of your heating and cooling system by keeping it free from dirt and dust buildup. It’s compatible with any system, and no additional power source is needed to keep it running. >> lennox.com

The single zone outdoor unit is part of the M-Series product line from METUS, which includes indoor unit, outdoor unit and control options for residential and light commercial applications. The unit is unique in its ability to match with a variety of indoor units with differing sizes and designs.

The low cost R7DA is the industry’s only direct expansion (DX) package DOAS/ RTU offering a drop-in replacement that fits many existing RTU brand roof curbs. >> nortekhvac.com

>> mitsubishicomfort.com

>> danfoss.us

PARKER SPORLAN

RESIDEO TECHNOLOGIES

RHEEM

SIEMENS

The Sporlan Division of Parker Hannifin Corporation launched its FR Series thermostatic expansion valves (TEV) for smaller capacity refrigeration cases, reach-ins, and other food service applications.

The T10 Pro Smart Thermostat features wireless RedLINK sensors with a range of up to 200 feet, helping provide wholehome 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.

Rheem’s Renaissance Commercial Line, which includes 7.5 –12.5 Ton Gas Electric and AC package units and 7.5 –10 Ton Heat Pump package units, provides commercial specifiers with customizable solutions to suit their exact needs and is 30 percent more energy-efficient than competitors.

Siemens is introducing the new Sinamics G120X drive, a simple, seamless and easy-to-use drive, designed for use in pump, fan and compressor applications in industries such as water/wastewater, HVAC/R, irrigation/agriculture and in industrial environments.

The modulating thermostatic expansion valves precisely control superheat under varying loads and conditions. Maintaining precise superheat control improves operational efficiency and can lead to reduced refrigerant charge and equipment cost due to evaporator optimization. >> sporlanonline.com

The thermostat also makes use of the same UWP standard wall plate as the remainder of Honeywell Home T-Series thermostats to reduce training requirements and deliver a consistent installation experience.

Equipped with robust performance features, the Renaissance line includes Rheem’s exclusive, industry-first PlusOne HumidiDry technology with a built-in VFD operating at a lower speed on firststage cooling when in reheat mode and when in occupied fan mode.

Sinamics G120X meets all the latest and upcoming UL, NEMA and EN/IEC standards for 2019 and beyond and offers up to 100 kA short-circuit current rating (SCCR) ensuring enhanced product safety and energy efficiency. >> siemens.com

>> rheem.com

>> customer.resideo.com

www.hvacrbusiness.com

HVACR BUSINESS OCTOBER 2019

S PON S ORE D C ON TENT

Differentiating YOUR HVAC COMPANY

s an HVAC professional, you know that good technicians are the lifeblood of your business. They are on the front line every day working directly with customers. You rely on them to get the job done and to be a positive representation of your company. In today’s competitive environment, an HVAC company must separate itself from the competition to grow sales and attract the best talent.

One strategy you may not have considered is to implement a uniform rental program to help technicians make a positive first impression, improve employee morale and make a positive impact on business results. BUILD YOUR BRAND, STAND OUT FROM THE COMPETITION A team of technicians without clean, consistent uniforms – or without uniforms entirely – represents a missed opportunity for your HVAC business to build your brand. In fact, according to a national survey, 81% of adults would be more likely to trust a home service professional wearing a uniform.1 Giving service technicians clean, professional uniforms customized with your company name or logo is a cost-effective way to project a positive brand image – at every job.

BOOST YOUR BOTTOM-LINE WITH NO UPFRONT COSTS By implementing a reliable uniform rental program, you can avoid taking the sudden financial hit that comes with purchasing uniforms outright. Instead, you can spread the cost across the lifetime of the plan, which often covers other costly items like garment repairs and replacements. Uniform programs also promote flexibility for managers to outfit newly hired techs and remove them when they leave. Instead of purchasing uniforms intermittently and in bulk, a uniform program allows you to more easily forecast how uniforms fit into monthly and annual budgets.

IMPROVE TECHNICIAN MORALE, AID IN RECRUITING AND RETENTION One reason you may not have considered a uniform program is the idea that uniforms are typically boring, stiff, and uncomfortable. Largely, this is no longer true – many uniform companies have taken a retail-inspired approach to their garments – creating products your techs would be proud to wear. In fact, a uniform program can boost morale and help techs feel like part of a team. In a high-turnover industry, keeping employees engaged and satisfied can be another competitive advantage – and a uniform program can be another great benefit to help reduce tech turnover. HVAC businesses of any size stand to gain considerably from implementing a first-rate uniform rental program. From retaining employees to improving brand image, partnering with a trustworthy uniform provider can provide key competitive advantages to help your HVAC company grow.

Survey conducted by The Harris Poll, November 10, 2014

HVACR BUSINESS OCTOBER 2019

www.hvacrbusiness.com

STAND OUT FROM YOUR COMPETITION – TO BOTH YOUR CUSTOMERS AND YOUR TECHNICIANS

STRETCH RIPSTOP FABRIC

Your techs are the face of your business. Inspire them to make a great impression with the Carhartt® Rugged Flex® rental line, exclusively from Cintas. Your customers will appreciate the peace of mind that comes with professional-looking service techs, and your employees will appreciate the benefit of wearing Carhartt® to work with a convenient laundry service from Cintas.

97%

FRONT ZIPPER POCKET

of the public believes uniforms make employees easier to recognize

70%

of customers feel uniforms make employees look neater and more professional

DURABLE STRETCH FABRIC

Visit cintas.com/HVACRBusiness *Survey conducted by J.D. Power

“ The Carhartt Rugged Flex garments are a great morale booster and helped my team stand out from our competitors“.

20QUESTIONS >>

with JEFF NUSZ

We sat down with Jeff Nusz, president of Reitmeier, a mechanical HVACR contractor in Tualatin, Ore. Jeff discussed training the future workforce, learning to run a company and the importance of company culture. 1. How did you get started in this industry? We moved to Washington, D.C. when I was 18. We were the first house in a new development and across the street was the assistant service manager for Calvert-Jones, one of the largest HVAC government contractors in D.C. I walked over there and I said, “I’d like to learn HVAC.” He said, “Show up on Monday.” 2. Is that where you learned the trade? I went through the Associated Builders and Contractors’ training program for four years, and got to work with one of the best technician mechanics that I’ve ever experienced. Carried his tools, cleaned his truck, started from the bottom. Then my field supervisor went to another company that did automation and energy management. He brought me over as his assistant manager. 3. How did you go from D.C. to Portland? I met my wife on a flight to Portland … she was the flight attendant. One day, we’re sitting in our backyard in Virginia and she asks when we’re going to move to Portland. I said, “I don’t know. How about August of ‘97?” I didn’t think she’d hold me to that, but she did. 4. What pushed you? My mother-in-law from Portland saw an ad in the Oregonian that said five years experience for Reitmeier. I packed everything up, drove crosscountry, bought a house and walked into Gerald Reitmeier’s office, who started the company in 1984, and said, “Well, I just bought a house, so I think I need a job.” He said, “Let’s talk.” 5. I take it you got the job? Two hours later, he made me an offer for more money than I was making in Washington, D.C. At that time, we had about 12 people total in the company. He wanted me to do service management, which I said I didn’t know how to do. But he simply said he’d teach me. 6. How did you progress in the company? I did that for a period of about eight months and then he came to me and he says, “I want you to sell.” I tell him I don’t know how, but he simply says he’ll teach me. We set a goal for $1 million of new sales. I hit it. I actually hit it. Then, probably a year later, he came to me and says, “My wife has cancer and I want to take care of her. I need you to run the company.” 7. What was that like? He disappeared for nine months. I spoke to him on the phone on occasion, but he had an old school kind of management style. But I have a different style. I like to enable people, get out of their way. We started growing. I added six technicians, two salespeople and we were more profitable than his company had ever been.

HVACR BUSINESS OCTOBER 2019

8. What happened when he came back? When he came back, he was grumpy, of course. He had lost his wife. But when he came back, it was evident that something had to change because everybody was still coming to me. I was like, “No, no, no. You’ve got to go to the old man.” They didn’t want to walk through that door because I had changed the culture, not on purpose, but just naturally. 9. How did he react to the culture shift? One night we’re sitting in the conference room, Gerald and I, on the whiteboard and he’d show me, “this is balance sheets, this is P&L, this is how much gross margin you need to have to run the business …” We’d be in there until 9 p.m. most nights. Then he says, “You know what? I think we need to do something here and I think you need to own this company.” 10. How did you make that work? I called my dad, who was a retired process engineer, and told him I had an opportunity in Portland and wanted him to be a part of it. I said, “How about you come to Portland, bring lots of money, and let’s do this?” He says, “Well, let me talk to your mom.” An hour later he called to say they’re putting both houses up on the market and coming out to Portland. We didn’t even have a deal for the company yet.

vision being a business owner. I wanted to be the biggest, baddest boy on the block. More trucks, more tools, more clients, more buildings. It was wrong. I hired a business consultant, a marketing firm. I had to get the trust back in my people that I’ve got this … that we’ve got a plan. 14. What’s the company like now? We operate on the premise of finding that work/ life balance is key to me, that everybody can find that balance. I looked at all industries through this soul-searching process and I tried to peel out the best parts of those industries and apply them to mine. We look at this as we want to be a really great company that just so happens to be really good at HVACR. 15. How’s business today? We’re sold through in special projects through Q2 of next year. I’m up to 500 maintenance contract customers and I just closed a deal with Nike for 85 buildings. Yeah, I’d say business is outstanding. 16. What’s the current challenge in the industry? A lot of the older generation is out and I had to look and the Millennials were my biggest pool. I had to shift my thoughts and my management style to deal with Millennials because they’re a handful and they’re different.

11. What made you want to own the company? We negotiated for about a year and a half. I knew the potential was a lot greater than the company was doing. We didn’t know what we didn’t know, but the potential was there and the potential is in the people and that’s my greatest asset is the people and I saw the potential.

17. How are you finding technicians? We’re growing our own and getting them young, getting them in, and training them up. They’re all in mentorship programs and we created our own university, a two-year program. We just got accredited for the State of Oregon to actually get our guys licensed.

12. What was that transition like? We went at this on a shoestring, 12 people to start, and we went hard at it and we started growing about 30 percent year over year. That’s not really sustainable. Here we are in 2008 and I’m building condos, I’m doing new construction, mid- rise, high-rise. I got 80 people running around. Then it stopped. Everything stopped on a dime. I had some carry out to 2009, but we ended up probably laying off 40 people.

18. How do you ensure quality employees? It’s about a four-interview process to get in our door and we make them do homework as they’re interviewing. If they don’t do that homework, we already know that that’s probably not the one that we want to hire.

13. How did you recover? I had to rethink this whole thing. I had the wrong

19. What’s the key to recruitment? The main thing that attracts my recruits is the education. That’s key. They really are thirsty to learn. You couple that with hands on and then you couple that with, you’re in a passenger seat with a journeyman, and he’s also your mentor. Then we’re going to meet monthly and tick goals and tell you what you’re doing great at and tell you where we need you to work at and you got to put in the work. 20. Have you solved your labor problem? It’s just we’re very green as far as labor goes, but they all have a support system from their service manager, to the mentor. Giving them that support system gives them confidence to reach out, knowing that they’re not going to be left on an island. Yeah, we’re working at it just like everybody else. www.hvacrbusiness.com

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