HVACR Business February 2018 by HVACR Business

The Importance of Onboarding By Pete Grasso 5

Build Your Pricing Around Net Profit Per Hour By Ruth King 8

The Problem isn’t Turnover; it’s Retention By Lance Sinclair 16

Be a Leader for Your Millennial Team Members By Bob McEwan 17

The Partner in Vendor-Partner By David Heimer 19

FEBRUARY 2018 / VOL.13 / NO.2

BECOME A

MONEY MAKING MACHINE

Page 10 When to Seek Outside Training Help Page 12 Attract & Retain the Next Generation of Employees Page 14

ALSO INSIDE » Featured Entrepreneur: Karen Lamy DeSousa, owner & president of Advance Air & Heat Co., Inc..........................................6 Product Focus: Commercial Rooftop Systems & Residential Geothermal Systems....................................20 20 Questions with Linda Couch COO at Parrish Services in Manassas, Va. .............22

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FEATURES

CONTENTS 10 Become A Money Making Machine

Calculate your market share and generate more money in your business.

FEBRUARY 2018/ VOL.13 / NO.2

12 When to Seek Outside Training Help

By Terry Nicholson

Stay ahead of the game with a strategic partner you can trust.

14 Attract & Retain the Next Generation of Employees

Millennials are not a lazy generation; you simply have to know how to lead them.

By Mike Moore

By Taylor Hill & Carter Harkins

C O LU M N S

D E PA R T M E N T S

8 Build Your Pricing Around Net Profit Per Hour

5 Editor’s Notebook

16 The Problem isn’t Turnover; it’s Retention

6 Featured Entrepreneur

The key to pricing using net profit per hour is that you must estimate labor hours correctly. By Ruth King Millennials place a great value on in-house training and anything that will advance their careers. By Lance Sinclair

17 Be a Leader for Your Millennial Team Members

We need to support, encourage and unleash this generation to be the best they can be By Bob McEwan

19 The Partner in Vendor-Partner

The vendor-partner should be a source of useful information, to help you solve problems. By David Heimer

For new employees to truly become part of your team, put as much effort into onboarding them as you did in finding them. Karen Lamy DeSousa, owner & president of Advance Air & Heat Co., Inc in East Freetown, Mass.

20 Product Focus

Commercial Rooftop Systems & Residential Geothermal Systems

22 20 Questions with Linda Couch

COO at Parrish Services in Manasses, Va.

M A R K E T WAT C H

Stock Index: The HVACR Business Stock Index left the major markets in the dust, jumping 126.23 points, or 7.94 percent, and ending at 1716.84, a second consecutive index record. Visit hvacrbusiness.com/stock-index to read this month’s analysis.

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HVACR BUSINESS FEBRUARY 2018

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THE HVACR MANAGEMENT MAGAZINE TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com JIM McDermott Editorial Advisor jmcdermott@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 440-471-7810 Fax 440-471-7943 ehagerman@hvacrbusiness.com WEST COAST TERRY Tanker Publisher Tel 440-471-7810 Fax 440-471-7943 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 refrigerating (HVACR) industry primarily in the USA. 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©2018 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, 24651 Center Ridge Road, Suite 425, Westlake, Ohio, 44145 or call (440) 471-7810; or visit our Web site at www.hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Published monthly by JFT Properties LLC., 24651 Center Ridge Road, Suite 425, Westlake, Ohio, 44145. POSTMASTER: Send address changes to HVACR Business, 24651 Center Ridge Road, Suite 425, Westlake, Ohio, 44145. Postage paid at Cleveland, OH and additional mailing offices. (USPS 025-431)

24651 Center Ridge Road, Suite 425 Westlake, OH 44145 Tel: (440) 471-7810 Fax: (440) 471-7943 Website: www.hvacrbusiness.com (ISSN: 2153-2877)

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EDITOR’S NOTEBOOK

BY PETE GRASSO

The Importance of Onboarding

hroughout the past few years, I’ve spoken with countless contractors, manufacturers, distributors and consultants in this industry. In nearly every conversation, I inquire about the challenges they face. The response I get is almost always the same: Recruitment. That is, finding and keeping talented people. This isn’t a big revelation. You probably have this exact concern with your business. So, what do you do? You focus on finding quality people to hire. Either you’re looking for people with experience or — and this is what a lot of the successful companies do — you’re looking for great people who you can train to be great employees. You’ve probably dedicated a decent portion of your operating budget to finding these people. And, believe me, that’s a good start. But what happens when you do find them and they join your company?

involved in his deception. Once he’s shown to his small office, he’s given the “Pensky file” to work on and he’s then left alone. Sitting at his desk in his isolated office, George quickly flips through the file then drops it on the desk and awaits the end of the day. And so it goes the rest of the week. He comes in, socializes with the rest of the office employees, and spends the bulk of his day sitting alone in his office doing nothing. The only thing he actually accomplishes, other than “ensconcing” himself, is he transfers the contents of the “Pensky file” to an accordion style folder.

If you want these people to truly become a part of your team, you have to put as much effort into onboarding them as you did in finding them.

That’s when the real work begins because, if you want these people to truly become a part of your team, you have to put as much effort into onboarding them as you did in finding them.

Here’s an example of what I mean. In the Seinfeld episode, “The Barber,” George Costanza is interviewing for a job. As the interview wraps up, Mr. Tuttle says, “I want you to have this job. Of course …” and then he’s interrupted by a phone call. He tells George he has to take the call and tells him he’s glad he came in. George then is left to wonder what the rest of that sentence was going to be: “I want you to have this job. Of course …” So, in typical Costanza fashion, he simply decides to show up the following Monday and pretend he got the job. His reasoning? “The guy’s on vacation. If I have the job, it’s fine. If I don’t have the job, by the time he comes back, I’m ensconced.” When he arrives at the office then on Monday, he’s all smiles, greeting everyone with a confident “Hello. Good morning.” Then he introduces himself to the receptionist, tells her he’s starting work there today and asks where his office is. No one was aware that he’d actually been hired, but no one really questions it either. He’s offered one of two offices — a big one down the hall or a smaller one. George insists on the smaller office, so as not to raise suspicion and get more people

Of course, when Mr. Tuttle arrives back from vacation the following Monday, the jig is up. Now, I realize this is a far-fetched, humorous example of the point I’m trying to make — but the lesson is valid.

Forget the ambiguity around whether or not George was actually offered the job at the end of the interview. Once he showed up as a new employee, there should have been a formal onboarding procedure to “ensconce” him into the company culture the right way. The recruitment process doesn’t end when you make the job offer. You have to nurture your new employees, make them feel welcome and clearly define what is expected of them — as well as what they should expect from you and your company. Instead of simply hiring a new employee, introducing them to a few coworkers and then leaving them to fend for themselves, you need to treat employee onboarding as a vital part of your company’s process. New hires who experience badly planned and executed onboarding may conclude your business is poorly managed and decide it was a mistake to take the job — and then you have to start the process all over again. If employees have a clear path for growth and advancement within your company, they will thrive and become contributors to your overall success. They will become loyal to your business. And, the more loyal employees you have, the less need you’ll have to recruit. Of course ... u

HVACR BUSINESS FEBRUARY 2018

Featured

ENTREPRENEUR

Focus on Teamwork BY PETE GRASSO

K KAREN LAMY DESOUSA TITLE: Owner & President COMPANY: Advance Air & Heat Co., Inc. WEBSITE: advanceair.net YEAR FOUNDED: 1986, incorporated in 1988 HEADQUARTERS: East Freetown, Mass. WORK PERFORMED: Commercial HVACR service, maintenance & installation; building automation service NO. OF EMPLOYEES: 20 ANNUAL REVENUE: $4 million VENDOR-PARTNERS: Trane, Carrier, Honeywell, Mitsubishi, Daikin, F.W. Webb, Plumbers Supply, DCNE, Control Consultants, Homans and United Refrigeration AFFILIATIONS: Women in HVACR (board member), Mechanical Contractors Association of America (MCAA), Mechanical Service Contractors of America (MSCA), NEMCA, United Association Local 51, Sheet Metal Local 17 CERTIFICATIONS: Mass. licenses for refrigeration contractor, sheet metal, oil burner, gas fitter contractor, EPA Universal and OSHA 10 hour; R.I. licenses for refrigeration, pipefitter and contractor

HVACR HVACRBUSINESS BUSINESS FEBRUARY FEBRUARY2018 2018

aren Lamy DeSousa’s father started his commercial HVACR contracting firm, Advance Air and Heat, out of the dining room of the family’s home when she was 11 years old. Her mother was the “back office” of the operation, while her father did everything else. “At first, I had no interest in joining the family business,” she says. “I wanted to be President of the United States.” As the business continued to grow, DeSousa developed her management skills running a program at a small non-profit organization. Then, something unthinkable happened with her dad’s business. A devastating theft by one of the employees left the company in a difficult financial position and without an office manager. “It was a dark moment when I decided to join the family business,” she remembers. “I don’t think I realized at the time what a risk that move might have been.” What followed was an incredible commitment of teamwork from the entire company, and the business was able to pull through and continue to grow and thrive. And, with her father as her mentor, DeSousa continued to learn the HVACR business. “He’s still my go-to person for advice, although he’s been retired for a couple of years now,” she says. Because she doesn’t have a technical background in HVACR, DeSousa knew she had to make the most of the 10 years she’d have of working with her father before he retired — a time frame that isn’t nearly long enough to learn both how to run a business and how to be a technician. She had to make a choice, so she decided to focus on learning as much about the business as possible, while squeezing in technical knowledge when she could. “Most of my technical knowledge comes from asking a million questions, writing an HVACR blog which I call, ‘Confessions of an HVAC Chick,’ reading technical journals and working with lots of building automation software,” she says. And although she’s taken many HVACR classes, she has almost no hands-on field experience. “That lack of practical technical knowledge means I cannot help to cover emergency

service calls when it gets busy,” she says. “I hate sitting on the sidelines while others are pulling long hard hours in the field. It makes me crazy.” Still, it doesn’t stop her from running a growing, profitable business — she knows where her strengths are and how to use them best for her company. “The HVACR field is so broad and constantly changing and advancing,” DeSousa says. “Whether your interest is mechanical, computer technology, environmental, customer service, mathematical or creative, you can find something in this field that fits your interest. “Or do all of the above on a daily basis,” she adds. “That’s what I love about it — I can explore all of these areas from one place.” Today, Advance Air and Heat is a Certified Woman-Owned Business that specializes in solving commercial HVACR and control issues in a way that is environmentally friendly, economical and makes sense for the individual business needs. “We strive for a true team approach to management and we realize our success as a company depends on our ability to work efficiently and productively together to be the best HVACR contractor we can be for our customers as well as our employees.” Like many contractors, DeSousa believes the greatest challenge right now is a lack of qualified technicians. She’s made it Advance Air and Heat’s mission to focus its efforts on investing in education and support for young and inexperienced people who show great promise and help them grow into strong, confident, well-rounded, experienced technicians. Since she has taken the reigns of the company, it has continued to grow and thrive, but one thing remains the same — it still operates out of her childhood home. “Albeit now, it operates out of a large addition and a series of garages,” she says. u

Pete Grasso is the editor of HVACR Business magazine. Email him at pgrasso@hvacrbusiness.com.

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BY RUTH KING

Build Your Pricing Around Net Profit Per Hour

ast month I wrote about net profit per hour, one of the four metrics (key performance indicators) I track every month. This metric answers the question, “For every billable hour, how many dollars of profit are you generating?” It’s not a percentage. It’s a dollar amount.

Why put yourself through all hassles and stress to bring home only $10 per billable hour?

Unfortunately when establishing pricing, most contractors look at their gross margin to calculate their prices. Percentages don’t matter. Real dollars do. Another mistake most contractors make is to look at their net profit percentage. This doesn’t tell the real story either. The percentage doesn’t matter as much as the number of dollars you take to the bank. Take a look at the example to the right. Even though Contractor

Contractor A

Contractor B

Revenue

$1,000,000

$5,000,000

Net Profit %

10%

Net Profit Dollars

$100,000

$500,000

Billable hours

10,000

40,000

Net Profit per hour

$10

$12.50

A and Contractor B have the same net profit percentage, Contractor B is actually more profitable than Contractor A since his company’s net profit per hour is $12.50 whereas Contractor A’s net profit is $10 per hour.

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HVACR BUSINESS FEBRUARY 2018

You can earn almost as much working for a fast food company. Here’s how to establish your pricing using net profit per hour. 1. Determine your billable hours last year. These are revenue producing hours. Do not include vacation, holiday, training, meeting, sick, personal time off, or unapplied hours. 2. Determine what profit you want to earn. Don’t have a clue? Here are some industry averages: • Service: $75 net profit per hour • Low efficiency residential equipment: $100 net profit per hour • High efficiency residential equipment: $200 net profit per hour Commercial is totally dependent on high material or high labor jobs. High material jobs can have huge net profits per hour (over $1,000). High labor jobs can be as low as $20 per hour. 3. Determine your overhead cost per hour. Overhead cost per hour is your year end overhead cost divided by the billable hours. Overhead cost per hour can be departmentalized. 4. Add overhead cost per hour and net profit per hour. This is the gross profit per hour you need.

5. Multiply the gross profit per hour by the number of hours for the job. If you are calculating service rates, the multiplier is 1 since you are calculating the hourly rate for one technician. Make sure you use your highest paid technician when calculating your service rates. 6. Add the direct cost of labor, materials, sales tax, permits, subcontractors, financing, commission, maintenance agreement, etc. 7. This is your job cost. When calculating service rates, there are two more steps: 8. Determine the percentage of billable hours per day. This is one of the only times I will use a percentage when calculating pricing. Assuming that your technicians bill 6 out of 8 hours divide the number you derived in Step 7 by 75%. This is your hourly rate for maintenance clients. 9. To get your hourly rate for non-maintenance clients, divide the number you derived in the last step by your discount. For example, if you give maintenance customers a 15% discount on repairs, divide by 0.85 to arrive at your non-maintenance service rate. The key to pricing using net profit per hour is that you must estimate labor hours correctly. I have found over the years that once contractors start using this method of pricing, their field labor becomes much more efficient and they usually get the jobs done in the estimated hours. Those who can’t complete the jobs in the required number of hours usually don’t stay. And, sales people who underestimate hours to get the jobs don’t stay either. u Ruth King is president of HVAC Channel TV and holds a Class II (unrestricted) contractors license in Georgia. She has more than 25 years of experience in the HVACR industry, helping contractors, distributors and manufacturers grow their companies. Contact her at ruthking@hvacchannel.tv.

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BECOME A MONEY MAKING MACHINE

Calculate your market share and generate more money in your business BY TERRY NICHOLSON

ith the New Year upon us, it’s critical now more than ever to use your most powerful indicators of success to generate more money in your business and become more productive. Start with calculating one measurement, and you will find, when done properly, you’ll be well on your path to planning growth. The market share of your business is simply its dollar sales in a given time period, expressed as a percentage of the total market sales volume.

When done properly, calculating your market share will put you well on your path to growth. To calculate your market share, take your company’s sales revenue in a specific period and divide it by the total sales revenue of all HVACR residential service companies in your service area over the same period. If the total market sales revenue is unknown, you can estimate the total market revenue by multiplying $660 by the number of residential

HVACR BUSINESS FEBRUARY 2018

homes in your service area. For example, if your service community consists of 70,000 homes, multiply by $660 per home and the total market revenue is approximately $46,200,000. If your company generated $2,000,000 in revenue in 2017 in this service area, your market share is approximately 4.3 percent. It’s

amazing

how

many

companies ignore market share and measure success by comparing their revenue to their competitors’ revenue. Or worse, they do it by comparing the number of trucks they have, compared to the number of trucks of their competitors. In reality, a much more meaningful method of measuring success is comparing what percentage of market share has been captured of the markets’ total revenue. Avoid these mistakes at all costs if you truly want to examine your business and increase profitability.

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MEASURE BY MARKET SHARE While market share certainly does not guarantee success, it is an indicator of success. Here are some very powerful reasons to focus on market share. Profit: It is widely recognized that one of the main determinants of business profitability is market share. Under most circumstances, companies that have achieved a high market share are considerably more profitable than their smallershare rivals. Market Power: Greater size permits a company to gain bargaining power in dealing with suppliers. As market share grows, economies of scale are achieved to a much greater degree resulting in cost savings in purchasing. Companies with small market share pay significantly higher prices on purchases. Marketing Cost Decreases: As market share increases, there is some tendency for marketing costs, as a percentage of sales, to decline. This reflects true scale economies,

MARKET SHARE & SIZE PROFIT INDICATOR PROFIT PERCENTAGE 25% 20% 15%

In summary, market share is one of the most important factors you should measure to determine your success. Determine your total market sales revenue, identify the percentage you have captured, set your target market share percentage you wish to achieve, and develop a plan to achieve it.

10% 5% 0%

10% 20% 30% 40% 50% 60% MARKET SHARE PERCENTAGE

While market share certainly does not guarantee success, it is an indicator of success. including the spreading of fixed marketing costs and the ability of large-share businesses to utilize more efficient media and marketing methods.

Consumers feel more comfortable buying from companies with larger market share when acquiring an infrequently purchased product such as a new system. Since there is a bigger risk inherent in a wrong choice, the purchaser is often willing to pay a premium for assured quality.

Visibility Brings Comfort: Companies with larger market share benefit from the “bandwagon effect” from greater visibility. Larger brings a peace of comfort.

And that’s how you become a money-making machine. u

Terry Nicholson is chief success officer and leading HVACR expert at PRAXIS S-10, the fastest growing success college for contractors. Visit praxiss10. com for additional information.

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HVACR BUSINESS FEBRUARY 2018

WHEN TO SEEK

OUTSIDE TRAINING HELP

Stay ahead of the game with a strategic partner you can trust

BY MIKE MOORE

hange is inevitable. Your technologies are changing. Your employees are changing. Your customers are changing. Understanding this changing environment boils down to understanding the new tools, products, services, techniques and more to ensure that you are providing the best products and services possible. Making the time to stay informed and trained can be difficult. But the only way to effectively adapt to change and keep up with your customers and competition is by prioritizing training and learning in your own organization. Like most HVACR companies, you are strapped for the time and resources to invest in training. You want your people working and producing income and not sitting in a classroom. And the experts that would be needed to teach the classes are your most valuable and overworked employees. As a result, training keeps getting pushed to the back burner. So what can you do if you want an ongoing training program, but doing it all in-house is not practical? The answer is to find a strategic partner. One you can trust and is as committed to seeing you succeed as you are. A partner with

Find a partner with the resources in people and course offerings, industry and technology knowledge and state-of-the-art training methodologies to ensure your training investment will produce increased sales, happier employees and more satisfied customers. the resources in people and course offerings, industry and technology knowledge and state-of-the-art training methodologies to ensure that your training investment will produce increased sales, happier employees and more satisfied customers. For maximum results, you need to commit to an organized and comprehensive program. Your business can then decide exactly what training will be conducted in-house and what training will be taken on by individuals or companies outside of the organization. There are a few things to consider when a company is thinking about outsourcing your training and employee development. Let’s take a look at some of them.

CUSTOMER IMPROVEMENT First things first, your customers are your lifeline. Customers are

HVACR BUSINESS FEBRUARY 2018

always important, but customer retention is paramount for your continued success. But keeping a happy customer is easier said than done. So long as your technicians know what they are talking about and can effectively address your customers’ issues, you are ahead of the game, but it doesn’t stop there. Your customers start judging your company as soon as one of your employees picks up the phone, so make sure your greeting is a positive one. Customers typically judge their service provider by multiple criteria, including friendliness, eagerness, appearance, the time it took to resolve their issue and the overall price/benefit ratio. If these things are properly managed, customer retention is probably inevitable. But given the amount of work that must be delegated to accomplish any sort of progress in these areas, approaching

this with an in-house training method can be difficult or even impossible. Your technicians and other key employees have to be convinced of the need to change their customer interactions and then have to learn and practice their new techniques.

Your training partner should have experience dealing with all types of customer service issues. In addition to the expected technical training, they should provide specialized training in the nuances of dealing with customers in difficult situations, such as when there has been an error or a misunderstanding, or a deadline or commitment has been missed, or a follow-up forgotten. Your training partner should be able to deliver quality training for all of these issues and more. And their training should include roleplay and other exercises to give your employees the opportunity to learn in simulated situations instead of on your customers’ doorsteps.

EMPLOYEE PERFORMANCE So your customer relations are taken care of … what about your employees? Most organizations realize the importance of providing the proper training and education for their employees. Employees who feel

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inadequate, underachieving, or unsupported are unhappy. They aren’t satisfied in their work, which can cause them to underperform, make mistakes and care little about their work product. When employees are well trained, they put more effort into their jobs, which leads to better results and improved customer satisfaction. Employee retention is also just as important as it is for customers. Studies have shown that replacing HVACR employees can be very costly and financially detrimental to your company’s bottom line. It also takes a lot of time and energy away from other tasks when companies have to focus on hiring new talent. You would never hire an unqualified employee. But sometimes employees can become under-qualified due to changing technology or the development of new tools and techniques. Your employees are a critical part of what makes your business thrive, but your management team and supervisors are usually busy handling the daily operations of the business and don’t have the time to train. Your strategic training partner can relieve you of this burden and give you the freedom to focus solely on developing your products and bringing them to market. Your training partner should offer courses that give your employees the opportunity to keep up with the changes in the industry and feel more confident in their abilities. And when employees feel they are worthy of your investment, they generally act like it.

GAINING UNIQUE PERSPECTIVES Keeping everything in-house does help to maintain a consistent work environment. But it’s important to stay open to fresh ideas and new viewpoints. Just because you have always done things a certain way, doesn’t necessarily mean it’s the most efficient way to get things done. Whether it’s sales training, technical training, customer service, or your business and management practices, you and your employees can benefit from learning the latest tools, techniques and methodologies. Your training partner should be

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When you are working with training professionals who are themselves experts in their specialized field, your employees will benefit from information that is more up-to-date and detail-oriented, allowing them to focus on more specific tasks. able to present you with a variety of courses and training options in all of these important functional areas. The company you hire to carry out your training needs will have individuals on staff with the advanced knowledge and expertise to train your employees to be better salespeople, better technicians, better customer service people and better managers and supervisors. Pick a training partner that knows your business and your industry. Your training partner should know HVACR and thoroughly understand its technologies and products. The right training partner can give you the opportunity to maximize on different areas of knowledge and expertise that your business might not otherwise be exposed to.

IMPROVING QUALITY OF SERVICE Training in different environments under trainers with new perspectives can also affect the quality of service your employees or technicians present. Learning new concepts and how to apply new technologies, tools and methods helps employees perfect their craft. In HVACR terms, this means better installations, more comprehensive service and more thorough maintenance, which result in a more successful business. When you are working with training professionals who are themselves experts in their specialized field, your employees will benefit from information that is more up-to-date and detail-oriented, allowing them to focus on more specific tasks. As a result, your people can learn to spot potential problems faster and develop more comprehensive solutions than before. Your training partner should have trainers who are experts in all the areas that are critical to your success and provide different ways of delivering their

expertise to your employees.

EXPERTISE & EXPERIENCE The truth is many training experts specialize in training — while you and your company specialize in HVACR products. The two are different, yet both very important. It is both cost-effective and most productive to outsource the training you need to the experts in both training and HVACR. The most cost effective training partner will offer the best of both.

COST EFFICIENCY & INNOVATIVE PROGRAMS Outsourcing your training programs is generally cheaper than hosting the same services in-house. On average, businesses will spend 20 to 35 percent less when they decide to use outside vendors. This is because when companies try to house the training on the inside, they tend to separate their programs into small units or regions. This approach becomes costly and is not as efficient as the extensive and focused approach that training programs can provide across multiple business groups. When your business can have better control over the cost of training expenses, leadership teams can work with the outside training organizations to develop comprehensive plans and establish a budget that fits with the company’s mission, vision and objectives. Your strategic training partner should offer a wide variety of relevant business, sales, technical and technology offerings and have the size and capability to deliver these courses on-site, off-site, or over the Internet.

PREPARING FOR THE FUTURE Outside training should always be designed to help your business improve their professional results. The training should occur after a

comprehensive analysis of the business has been performed. A complete and thorough analysis will ensure that your business gets the most out of the program. But if you’re like any other growing business, you’re also looking to prepare for the future. We’re living in a digital age. Technology is changing fast and so is the way we do things. The HVACR trade is an established and well-developed industry, with the average technician age to be 57. But new talent is on the market. Young people are now entering the workforce with a very different understanding about how to survive in an industry like this. This generational rift can create knowledge gaps where there were none before. It’s important to bridge these knowledge gaps with new technologies and strategies. There are plenty of benefits that outside consulting can provide that may help your company better plan for situations like this. Your training partner should understand this problem and have proven solutions to deal with it. If you’re running a successful business it’s easy to feel like you can do it all. But some tasks are better left to the experts. Businesses should always delegate ample time to improving their product and serving their customers. This leaves little time for adequate training on the inside. And if your company’s professional growth and development are top priority, your future self will thank you. When in doubt, outsource, but pick a training provider with your long-term in mind: a training partnership for your future success. u

Mike Moore isn’t just an HVACR expert; he also knows a thing or two about HVACR employee training. As one of HVAC Learning Solutions founders and director of training, his biggest goal is to help HVACR leaders and technicians grow their business and build lasting skills. Visit hvacls.com for additional information.

HVACR BUSINESS FEBRUARY 2018

ATTRACT & RETAIN Next Generation of Employees

Millennials are not a lazy generation; you simply have to know what they want in a company and how to lead them BY TAYLOR HILL & CARTER HARKINS

etween the skills gap, the growing drug epidemic and a lack of loyalty and work ethic, HVACR business owners have become increasingly desperate for good, clean, hardworking employees. While there’s not a lot we can do about drug abuse other than encourage those who struggle with addiction to get help, good news is on the horizon. Culturally, we’re beginning to see the err of our “college or bust” mentality and realize the importance of trades and developing these valuable skills in the newer generations. While it will take some time and concentrated efforts to get the younger generation out into trucks and on the job, being aware of what younger employees are looking for in a blue collar career can give you a hiring advantage over your competitors in the short and long run. Additionally, the latest surveys and research into the minds of working Millennials reveals that this generation isn’t lazy, you simply have to know what they want in a company and how to lead them. So what can you do to attract, retain and better lead the Millennial generation? Think hard about how you present the job.

Culturally, we’re beginning to see the err of our “college or bust” mentality and realize the importance of trades and developing these valuable skills in the newer generations. A lot of assumptions are made about the Millennial generation, but here’s a fact: this generation of employees wants to work for companies that offer value and provide opportunities to make a difference. According to the 2017 Deloitte Millennial Survey, “employees who feel their jobs have meaning, or that they are able to make a difference, exhibit greater levels of loyalty.” In other words, contrary to popular opinion, Millennials are not lazy. But if they’re going to commit 40plus hours a week to doing something, they want that something to make a difference, to matter. That desire doesn’t make them special snowflakes who are somehow strangely different from the previous generations, it simply makes them human. So consider how potential hires will see your company and the position for which you’re hiring. Make sure you are showing a culture of respect and value and clearly

HVACR BUSINESS FEBRUARY 2018

communicating purpose, mission and core values to potential hires. Once you do bring someone on, regularly communicate the importance of their work and remind them of how much value they bring to the community. Doing so will help you attract the best this generation has to offer and keep your employees motivated and driven to do better and be better. Also realize that this generation, through no fault of their own, may not have been exposed to the skills they will need to do the job at hand. As trade schools have closed and high schools have turned away from teaching the trades, a hole has been left in basic training. This means that you may have to fill in the gap with state-of-the-art training at every level. Don’t look at this as an unfair burden on you as the business owner; instead, use it as your number one strategy for differentiating yourself as the company to work for in your area.

If you’re putting up ads on Craigslist that say nothing about the company, the job, or the type of person you’re looking for other than “must have own vehicle” or “must be able to lift 50 plus pounds,” you’re going to have a hard time finding employees who are a good fit. Here’s why: when you present the job in this way, you communicate that transportation and physical fitness are the only requirements that matter. Poor work ethic? Drug problem? Baseline morals? No problem. You’ve already told them right there in the ad that those things don’t matter and you’ve also communicated that there’s nothing about your company worth mentioning or knowing. While this type of ad may bring you a large pool of potential hires to choose from, it won’t bring you the best people. Instead of inviting just about anyone to apply to a meaningless job in a faceless company, give potential employees a good idea of what your company stands for, what they can expect, what you have to offer and what you expect them to bring to the table. Don’t wait until you’ve set aside valuable time to interview them and train them before letting them know at

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what high level you expect employees to perform. Be selective and take the time to really determine whether or not a potential employee aligns with the way you do things, the values and standards you hold and the why behind your company.

INVEST Millennials want to be invested in and to work for leaders who are willing to form connections with them. They want to be led by inclusive, transparent leaders. In regards to the impact of different management styles, the 2017 Deloitte Millennial Survey found that, “organizations taking an inclusive approach, rather than an authoritarian/rules-based approach, are less likely to lose people.” Are you the type of leader who involves your employees in your mission, purpose and vision? Are you throwing down rules from on high or investing in your employees and asking for their input? How you lead will greatly influence how attractive your company is to potential hires and how loyal your employees are. Many leaders are hesitant to invest in and involve employees, develop their leadership skills and hand over any responsibility or sense of ownership because they’re afraid that an empowered, educated and autonomous employee will eventually leave and start their own

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Be selective and take the time to really determine whether or not a potential employee aligns with your company’s values and standards. business. While that is a possibility, you stand to gain so much more than you stand to lose when you invest in and involve each member of your team. For one, you’ll have employees who are energized and who care about their work, the company itself and the customers being served. And energized, caring employees treat customers better, have higher productivity rates and make better employees all around. Foster loyalty by making sure your employees know they’re valued and by providing the type of growth opportunities, work environment and leadership style that makes them want to stay.

WAIT IT OUT Sometimes, you need a replacement fast, but in most cases, the cost of hiring the wrong person far outweighs the cost of putting off hires until you find the right person, so be patient and get it right. Does waiting it out scare you? Consider which is worse for your bottom line: postponing a job until you can get to it or sending a new hire with a drug problem and poor customer service to your client’s home?

We live in the age of social media and a poor customer experience and a damaged brand reputation can cost you dearly — much more so than a lost job — so don’t hire just anyone.

HIRE FOR CULTURE, NOT SKILL You may think culture doesn’t matter all that much, but the poor personal values and bad attitudes your employees bring to work will inevitably affect your other employees, your company culture, your customers and your work environment. If you have to choose between hiring someone with experience who is not a culture fit and someone with no experience who is a culture fit, you’re much better off choosing the latter. Protecting your company culture is that important. Yes, training an inexperienced employee takes time, but there are a couple of perks to doing so. First off, with no previous training or experience, there are no bad habits to break; you can train the new employee to do things exactly how you’d like them to be done so you know the results are to your standards.

Secondly, by investing in training, you’ll end up with an employee who feels invested in your company and is more loyal to you. And finally, you won’t have to worry about your new hire coming in and creating a toxic workplace, bringing a poor work ethic, taking short cuts, or delivering poor customer service. You’ll know that if mistakes are made or problems occur, they can be traced back to the training, which can help you identify holes in your systems so you can make your business better and more efficient at training future employees. If you find it more difficult to find, train and retain employees than ever before, you’re not alone — but you’re also not powerless. Take a step back and look at your company and the way you’re presenting the job to potential hires. Ask yourself if you’ve built the kind of company you’d want to work for. u

Taylor Hill and Carter Harkins are the co-hosts of the Blue Collar Proud (BCP) Show, a podcast that’s all about having and living the blue collar dream, and co-authors of the book Blue Collar Proud: 10 Principles for Building a Kickass Business You Love. Visit bcpshow.com/contact for additional information.

HVACR BUSINESS FEBRUARY 2018

EMPLOYEE RETENTION

BY LANCE SINCLAIR

The Problem isn’t Turnover; it’s Retention

f we didn’t lose so many good employees, we wouldn’t have to recruit so many new employees. Most companies focus on hiring practices, a structured interview process and assessments in the hiring and selection process. After all, it’s so difficult “to find good people.” I get it. That is an important part of the retention equation. But, let’s think outside the box. Is it possible this view is more about focusing on the symptom and not on the cure? In a recent survey by Mercer, a global consulting leader in advancing health, wealth and careers, of 3,000 U.S. workers, the majority of workers are seriously considering leaving their jobs. This includes many who say they are satisfied with their work: • 45 percent of employees who are satisfied with their organizations are considering leaving • 42 percent of employees who are satisfied with their jobs are considering leaving • 37 percent of employees are seriously considering leaving their jobs These statistics should not surprise you if your workforce is comprised of Millennials. Why? Millennial employees are often happy with their workplace but place a high value on transitions and pursuing other opportunities. Sixty percent of Millennials stay at a job for less than three years. Tom Zender, a Phoenix-based professional CEO mentor and author of two books about business ethics, presents some interesting facts about turnover and retention. The cost of employee retention is less than the cost of replacing them. Much less. • Fact one: the average wage of a U.S. employee is approximately $50,000. • Fact two: voluntary termination is above 10 percent per year.

may contribute, but nothing beats face-to-face communication.

HIRE TRAIN REWARD

RETAIN

By the way, Millennials define face-to-face communication as streaming video or audio conferencing — not necessarily in person. To a Millennial, there is no such thing as too much communication. This is a generation of info junkies.

VALUE

Millennials place a great value on in-house training, help pay for community college and university courses, anything that will advance their careers — and quickly. • Fact three: the average total cost of replacing an employee ranges from 25 percent to 250 percent of their base salary, depending upon their role. Therefore, if the average cost of replacing a good employee is 50 percent of $50,000, then the cost is $25,000 per average voluntary turnover. If you lose one good person out of 10, that is $25,000 off your bottom line. Compare that to the possibility of investing in retention. This would calculate to spending $25,000 to all 10 employees or, $2,500 per employee. Let us assume you have a business and the largest generation in the workforce is Millennials. Only one question remains. How could you spend it on retention?

SELF-DEVELOPMENT According to a recent survey, training and development is the number one benefit Millennials seek when evaluating prospective employers. They place a great value on in-house training, help pay for community college and university courses, anything that will advance their careers — and quickly.

HVACR BUSINESS FEBRUARY 2018

This is a generation of knowledge seekers. Millennials recognize that professional development is the pathway to success.

FLEXIBILITY Boomers have a real issue with embracing the idea of flexible work hours or even working from home. Boomers even expect employees to show up at the start of the day, say 8:00 a.m. If you want to extend the tenure of a millennial, you had better offer flexible hours or even days available to work from home.

POSITIVE REINFORCEMENT This one is easy and very low cost. Tell your employees you appreciate their work but you must be sincere. Recognition programs are very important. Examples would be employee of the month, birthday gift card or non-cash incentives. A non-cash incentive would be a dinner for the employee and spouse and, better yet, if they have children, provide free babysitting.

COMMUNICATION Every generation has a natural desire to “be in the know.” Company e-newsletters and company blogs

Being part of the community is important. No longer having the desire to being defined by work, Millennials value volunteer opportunities for a simple reason: to make the world a better place. Even better are community activities as a department, as a company. The added bonus is team building.

BREAK ALL THE RULES Rules? Rules are for boomers. A constant challenge to think differently is more important than process and procedure. If there is a better way, do it. If there is a faster way, do it. If there is a smarter way, do it. Do not play by the rules — make the rules as you go. Innovation. Change. That is good for business. If we did not lose so many good employees, we would not have to recruit so many new employees. u

Lance Sinclair had 17 years operational experience before joining Direct Energy/Success Academy in 2004. In his current role at Success Academy, he is responsible for the development, design, delivery and evaluation of training and education for the franchise system consisting of instructor led training, web based training and online self-directed training. Visit clockworkfranchise.com for additional information.

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LEADERSHIP

BY BOB MCEWAN

Be a Leader for Your Millennial Team Members

o much is written these days about the Millennial generation — those children born in the 80s and 90s. As a father of three of them, I have my own opinion on how they think and in what kind of workplace they thrive. Rather than explain who or what Millennials are — there’s plenty of information out there on that subject — here’s an outline for how we, collectively, should lead and support this amazing group of future leaders. Pew research says Millennials are team-oriented, confident, knowledgeable, achieving, feel special, sheltered, conventional, pressured and the list goes on. Most of their parents are Baby Boomers, and they number around 75 million. In my book, “5 Fundamentals to Unleash Millennial Talent,” I share my leadership journey across three generations — as a Baby Boomer leading my organizations, or supporting Gen Xers stepping into a leadership role or a Millennial finding and establishing his or her career path. I tried to help guide and provide insight for both managing and climbing the corporate ladder. We need this generation to be the best they can be. We need to support, encourage and unleash this group. This generation wants and expects to work in a great place, be challenged and feel like they’re making a difference. They want to use their knowledge and work in a team-oriented environments that delivers results which leads to success. Doesn’t that sound like a wonderful place to work? Of course it does — Millennials are demanding that our companies change both in the private and public sector. And this is a good thing. Here are a few ideas you can use to help unleash this generation’s talent as leaders.

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LISTEN AND SHARE Leaders must be transparent and create an open collaborative environment. Have regular updates and give your team as much information as possible, communicate the business objectives and metrics often using all the digital tools. Keep your door open and make sure it is known up and down the organization. People must feel comfortable approaching you with issues. When people stop coming to you and stop telling you about issues and concerns you have lost their trust.

We need this generation to be the best they can be. We need to support, encourage and unleash this group. CULTURE OF TRUST Integrity and compliance start at the top. Companies that have this culture will win customers, suppliers and attract great employees. Sadly distrust is fairly common in todays workplace — VW emissions scandal, the 2008 financial crisis, GM ignition switch and Flint City water system are a few examples. You must build an environment of trust and transparency. Your actions speak so much louder than words. It is time we changed.

IDENTIFY AND GROW TALENT Employees today are knowledgeable within their skill discipline. The digital tools for learning have made this possible. Millennials want to contribute and feel like they are making a difference. Their job responsibility needs to mean something — it must have impact. Get to know your folks, give them big assignments; don’t be afraid of stretching them. Stay close and support them so they will success.

BUILD YOUR TEAM Engaging your team is critical

to success of the organization. Be the coach who is aware of how each person on your team is doing. Tell them they are valued and you want to know their ideas. Having a personal presence with your team is extremely powerful. Remember, you’re one of the members. All generations want to feel a part of success, great leaders know how to inspire and empower. It’s time for leaders to share the leading with the team.

VALUE DIVERSITY Diversity is not just checking a box to meet some regulatory criteria. It goes way beyond race and gender; it includes diversity of thought. I was fortunate to manage thousands of people around the world. People from different backgrounds see the world differently. They bring new innovative ideas. As a leader you must create a workplace that promotes inclusion and diversity. Millennials are the most diverse group of any generation, thus diversity must be part of your companies DNA.

POSITIVE ENERGY Bring positive energy everyday. Enjoy and celebrate the small things, while having fun doing it. Recognize and reward people frequently. If you can do it publicly in these settings, it makes it even more impactful. Great leaders know how to energize an organization. Here are a few takeaways from my book regarding engagement of people no matter what the generation, it’s important to engage with your team. Know them. Grow them. Inspire them. Involve them. And reward them. It’s all about setting up a great workplace. This generation wants to be challenged, feel like they impact the bottom line. Constantly using their skills in a team oriented environment. Reward, recognize and have fun. They will lead the world to new levels of success. u

Bob McEwan, who retired as the general manager of GE Aviation’s global supply chain, continues to consult with GE Aviation, its partners and other aerospace companies in engineering and supply chain management. He also conducts leadership seminars for executives and corporate staffs. For additional information, visit mcewanleadership.com.

HVACR BUSINESS FEBRUARY 2018

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OPERATIONS

BY DAVID HEIMER

The Partner in Vendor-Partner

arly in my career, I had a friend who worked in purchasing for a manufacturing company. He described the adversarial process he and his team followed for dealing with vendors. They’d get three or more vendors to bid on the “opportunity,” meet with each vendor, beat up the vendor verbally about price and quality, negotiate really hard, squeeze them for every last penny and then take the lowest bidder. They followed this process every year and changed vendors regularly. There was no loyalty; it was all about price and delivery. I know some people still follow this adversarial model of vendor relationships, but I think it’s a mistake. In our company, we intentionally call our vendors, “Vendor-Partners,” because it describes a significant difference in the relationship. We think of our vendors as business partners — companies and people who can help us grow. The phrase also implies a reciprocal responsibility to them — we want them to be successful, too. Your vendor-partner should be much more than an entity that supplies you with products. Think of your vendor-partner as a consultant who has your best interests at heart. The vendor-partner should be a source of useful information, help you solve problems, help you find the best prices, help you with buying programs and help you maximize any rebates available to you. To get to this level of mutual benefit, you must operate in an atmosphere of honesty and transparency. Share your goals, problems and aspirations with your vendor-partner. Make your meetings with your vendor-partner productive. You used to be happy when a vendor showed up with doughnuts for the team and a few jokes. Times have changed. Raise the bar!

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The vendor-partner should help you solve problems, help you find the best prices, help you with any buying programs and help you maximize any rebates available to you. Your vendor-partners need to bring you more. Set your vendor-partners’ expectation appropriately for a professional meeting. They need to make an appointment to see you (no more unexpected drop-ins and drop-offs) and they need to bring value. They could provide: Ideas and products to improve your business. What do they offer that will substantially improve your business? Market information. Vendorpartners have access to good information about the market. How’s it going? Are industry shipments up? If so (or not) why? What do they see that you don’t? Customers and new business. Your vendor-partners know people who need your products and services. Do your vendor-partner employees live near you? Do they need HVAC services? Could your vendor-partner help with marketing to get more business for you? Training. Your vendor-partners should offer you and your team training. Not JUST product training on their products, but also training on how to SELL their products, and how to market their products. Information about competitors. Vendor-partners have competitive information that you don’t. They should be able to give you information about your competitors and the competitive landscape. Employee leads. You need good employees. Can your vendor-partner help you find good employees? Do they have contacts you don’t? Ask them for referrals and contacts.

Other vendors & products. Your vendor-partner may know about other products and services you could use or should be offering. A vendor-partner relationship is a two way street; you need to give just as you get. One good way to start is just to ask your vendor-partner what you can do for them. Here are some other ways to be a good partner to your vendor: Pay what’s owed on time. This is kind of a basic rule, but many people don’t think about this. Not paying on time raises the costs for your vendor-partner as well as placing you in the category of a customer who is on shaky ground. If you want to be treated well, if you want the best pricing, if you want great service, pay on time! Don’t beat them up on price, but insist on fairness — they need to make a profit too! Do you ever get the feeling that some people would be happiest if they could get a price from their vendor-partner that was lower than the vendor-partner’s cost? What a greedy, self-centered attitude. Your vendor-partner deserves to make a profit. If he/she doesn’t make a profit they’ll go out of business and won’t be able to serve you in the future. How can they earn more of your business? Just like you, your vendor-partner wants to grow. Is there a larger opportunity with you? What would they need to do to earn more of that opportunity? Treat the vendor-partner with respect. Be nice. Don’t be a jerk. Help them increase their business. Look for opportunities

for your vendor-partners. Give them referrals and sales leads. Be willing to provide testimonials. Offer to take calls from prospective customers. Help them grow! Send complimentary emails and recommendations. If someone in your vendor-partner’s organization has done a good job for you, be sure to send a quick thank you email, and copy his/her boss. Positive reinforcement is a powerful thing! Be honest about their issues (but in a constructive way). We all have problems in our businesses. Sometimes we don’t know what problems we have. Don’t ignore the problems you see in your vendor-partner’s business. Strive for continuous improvement with your vendor-partners. Many small improvements compounded over time will yield massive positive results for you and for your vendor-partners. Last year I read, “Driving Honda: Inside the World’s Most Innovative Car Company,” by Jeffrey Rothfeder. One of the interesting take-a-ways for me was the incredible level of support and interaction Honda has with its vendor-partners. They don’t have an adversarial relationship, they want their vendor-partners to succeed, and they will exert amazing efforts to help their vendor-partners. It pays off in so many big ways for Honda, and that same type of vendor-partner relationship will pay off for you, too. u

David Heimer is a founder and the chief operating officer of Service Nation Inc. He earned a Master of Business Administration from Southern Methodist University and a Bachelor of Science in computer science from Texas Christian University. Visit serviceroundtable. com or servicenationalliance.com for additional information.

HVACR BUSINESS FEBRUARY 2018

PRODUCT FOCUS »

Residential Geothermal Systems

BARD

CARRIER

MODINE

The GEO-TRIO is a three-piece, multi-position heating and cooling system that delivers economical year-round comfort by utilizing nature’s most abundant and efficient solar energy collector — the earth. They are designed for low water flow rates and exceptional cooling and heating efficiencies.

The Infinity GC model combines high-efficiency closed- or openloop systems with the Infinity Touch control. These forced-air or water-to-air systems offer the quiet, comfortable benefits of two-stage and variable-speed operation, the versatile capabilities of Infinity Touch, and the superior energy savings of geothermal.

GS/ES split geothermal system with matching GA/EA air handler or cased/uncased air coil are available for those looking to add geothermal HVAC solutions into a new or retrofitted location. The air handler or A-coil and split mechanical sections can be easily installed when paired together. Modine has five models from which to choose.

These all-in-one forced-air or water-to-air systems can provide comfort more efficiently than ordinary systems. Included is the company’s highest rated geothermal unit designed to deliver ultra-high efficiency and total-home comfort all year-round.

Controller setup is not required for commissioning. The system utilizes standard thermostat wire connections between the air handler and split system. The unit also includes 18-gauge cabinet construction and a 4-inch filter rack on the air handler.

bardhvac.com

carrier.com

modine.com

BOSCH

CLIMATEMASTER

TRANE

The Greensource CDi Series SM Model geothermal heat pump split system comes in two parts that can individually replace and work with your existing HVAC system or both can be used in tandem for a full solution. Each come equipped with the quality and innovative technology that only Bosch can provide.

ClimateMaster Trilogy Packaged Systems are the most technologically advanced geothermal heating and cooling systems available for both new construction and retrofit applications.

Because the units can be setup in a variety of ways, GEO-TRIO gives installers more options to fit tight spaces, including crawl spaces, attics or closets. Together, the GEO-TRIO’s three components add up to one solid unit that provides energy efficiency, comfort and Bard’s unparalleled reliability.

Versatile and compact design adapts to replacement, relocation or new construction, while the two-stage scroll compressor operates in harmony with the earth’s temperature extending service life and saving money. Standard 10 year limited warranty on all parts and labor. bosch-climate.us

BRYANT For the ultimate in quiet operation and comfort, consider the versatile and feature-rich Evolution Series GC models with two-stage compressor operation and variable-speed blower. When installed with the Evolution Connex control you’ll receive optimal summer dehumidification and even temperatures.

They incorporate a “Trilogy” of precision components (variable speed compressor, variable speed fan and variable speed water pump), the iGate Smart Water Tank and the iGate Connect web enabled thermostat to provide the lowest operating cost of any heating and cooling solution. climatemaster.com

GEOCOMFORT The GeoComfort Navigator Series is advanced geothermal to meet your changing needs. Each unit is built to the high standards of quality you expect from GeoComfort. This premier system is the ultimate solution for increased efficiency, exceptional reliability and unsurpassed comfort.

Two-stage scroll compressor operation allows longer, more consistent cycles in lower stage for savings and comfort. The Evolution System continuously monitors indoor and outdoor conditions to give you the best balance of comfort and efficiency, all at your command.

Navigator Series Vertical Packaged systems provide forced air heating and cooling like most conventional systems — but the similarities end there. GeoComfort has utilized the most advanced geothermal technology, resulting in a heat pump that is built tough to perform season after season and so quiet that you may not even realize it’s running.

bryant.com

enertechgeo.com

HVACR BUSINESS FEBRUARY 2018

Trane Split Geothermal Cooling and Heating Systems use a ground loop connected to a refrigerant loop to absorb or dissipate heat. They work more like a traditional heating and cooling system to keep your customers comfortable inside their homes. With up to 25.1 EER, this geothermal HVAC system offers the comfort of two-stage heating and cooling. Trane EnviroWise Geothermal Cooling and Heating Systems provide consistent, even temperatures every day of the year, and all are built with quality materials and true craftsmanship, and backed with robust warranties. trane.com

WATERFURNACE The 7 Series 700A11 provides homeowners the ultimate in comfort and performance and represents our finest products. This line is for those who accept only the best and is built using the latest technologies and highest standards. The 700A11 signifies groundbreaking innovations on multiple fronts—most notably as the geothermal industry’s first launched variable capacity residential unit and the only unit to surpass both the 41 EER and 5.3 COP efficiency barriers. These ratings are vastly greater than ordinary conditioning systems and 30 percent higher than current two-stage geothermal heat pumps. waterfurnace.com

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PRODUCT FOCUS »

Commercial Rooftop Systems

DAIKIN

MAMMOTH

THYBAR

Rebel commercial packaged rooftop systems give building owners the lowest total cost of ownership for any commercial rooftop system. With a variable speed inverter scroll compressor, variable speed heat pump and direct-drive variable speed ECM or VFD fan motors, Daikin’s advanced technologies propel performance and energy savings to uncommon levels.

Mammoth 3-phase model R8HE, available in 208/230 and 460 VAC, is the only 95 percent efficient gas electric packaged system in the industry, providing lower total energy costs for light commercial buildings.

Thybar fabricates custom designed and competitively priced Seismic Rated Vibration Isolation Curbs for your rooftop units. Curbs are designed to withstand both seismic and/or wind loads that are being specified in today’s building codes and feature adjustable spring isolators and roof curb in a single unit.

Intelligent Equipment is a control solution that connects directly with your Rebel commercial packaged rooftop unit to monitor energy consumption at the equipment level. For less than it costs to run your smart phone, Intelligent Equipment provides real-time, direct access to 150 data points on a Rebel unit.

The benefits of using Nortek Global HVAC’s Mammoth model R8HE include: MicroChannel all-aluminum coils (both indoor and outdoor) for optimized heat transfer, minimized size and weight, decreased refrigerant volume and increased durability and reliability; easy compressor access; externally accessible ports give quick access for refrigerant monitoring and service; Igniter board with SmartLite technology that increases igniter life; proven hot surface igniter provides years of reliable service.

daikinapplied.com

mammothlc.com

JOHNSON CONTROLS

MITSUBISHI

Featuring a capacity range from 3 to 150 tons, the single-packaged Rooftop Unit from Johnson Controls is easy to customize with fast installation, low operating costs, the flexibility of heating options and cooling options and it’s Smart Equipment Controls (SEC) package.

The CITY MULTI L-Generation Air Source outdoor unit has achieved significantly improved efficiency due to HexiCoil technology, a zinc-aluminum flat tube heat exchanger that maximizes heat transfer capability through its unique fin shape.

Select Johnson Controls Rooftop Units are Smart Equipment enabled, meaning they already have controls embedded and can seamlessly connect to a controls system and self-discover other Smart Equipment. Rooftop units in the 5, 10, 12R, 20 and 40 series are Smart Equipment enabled or Smart Equipment optional.

The unit boasts a 30 percent smaller footprint than previous models, making the system ideal for tight mechanical spaces, and up to 50 percent reduction in system refrigerant charge. Quiet operation and increased efficiencies across all categories make this outdoor unit ideal for projects with efficiency goals such as LEED certification or net-zero status.

johnsoncontrols.com

mitsubishipro.com

LG Multi V 5 is the flagship product in LG’s state-of-the-art airsource VRF systems. Representing the next generation in the popular LG Multi V family, Multi V 5 is available from 6 to 42 tons, with a choice of three-phase 208V-230V or 460V electrical power as heat recovery/heat pump outdoor units.

REZNOR

New to the Multi V line-up are the single frame 16, 18, and 20-ton units. The 20-ton unit represents the largest tonnage single frame on the market today. It’s biomimetic fan design enables the unit to operate more efficiently and increase airflow while reducing the perceived noise level by approximately 20 percent.

The Reznor Z Series can recover more than 80 percent of the exhaust air energy year-round, far beyond the capabilities of conventional heat recovery wheels. In cooling mode the energy efficiency ratio (EER) is greater than 17. In heating mode the coefficient of performance (COP) is greater than 6.

lg-vrf.com

reznorhvac.com

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The Reznor Z Series hybrid ventilation unit maintains pace with the ever-changing standards of acceptable levels of IAQ. This unique, patented system integrates an energy recovery wheel into a dedicated heat pump system for precise ventilation and temperature control.

Typically shipped fully assembled, rooftop units can be set immediately after curbs are installed and curb roofed in later without disturbing the rooftop unit. A flexible counter flashing, for a weather tight installation, is provided for installation after curb is roofed in and springs have been activated. Options include: 1-, 2-, or 3-inch deflection springs; duct attachment channels and/or airtight plenum; fabrication to match roof slope. thybar.com.

TRANE Through a combination of innovative technologies and expert engineering, Trane IntelliPak systems run efficiently, quietly and reliably — lowering your operating costs and reducing the hassle of unplanned maintenance. Each unit features a state-of the-art direct digital unit control module that is pre-configured and provides accurate and reliable performance right away. IntelliPak packaged rooftop systems are suited for a broad range of applications including large office buildings, restaurants, retail centers, industrial facilities and institutional buildings used for healthcare and education. trane.com/ipak1/

YORK The York Direct Fit rooftop replacement solution from Johnson Controls now includes a full line of 3- to 8.5-ton packaged heat pumps. Like other products in the Direct Fit series, the heat pumps feature an exact-fit replacement design that matches the units to footprints of other manufacturers’ units and reduces installation time, cost and complexity by eliminating the need for a curb adapter. The system’s advanced design also offers an optional Mobile Access Portal (MAP) Gateway that provides access to the SE control system using a smartphone, tablet, laptop or remote PC. york.com/directfit

HVACR BUSINESS FEBRUARY 2018

20QUESTIONS >>

with LINDA Couch

We sat down with Linda Couch, chief operating officer for Parrish Services in Manassas, Va., and board member for the Air Conditioning Contractors of America (ACCA). Couch discussed the importance of tapping into Millennial talent, communicating with an unconventional workforce and the challenge of commoditization. 1. Can you tell us about your impressive educational background? I enjoy education. I love learning. I have an associate’s degree in engineering, a bachelor’s degree in mathematics and an MBA. I’ve been a doctoral student in the University of Maryland’s management program. 2. What’s your background in this industry? I was working for IBM and ended up in a division where I led projects to design and build data centers.With data centers, you’re cooling yearround and I learned a lot about the technologies applied to do that — I just found it fascinating. 3. How did you make the leap over to HVACR? I met Alan Givens, the owner and founder of Parrish Services. Even though our meeting was social, I couldn’t help but pepper him with a lot of questions about his business, and I was hooked. 4. So, how did you transition over to working for Parrish? (laughs) Well, we were both hooked on more than that because two years later we got married. I worked at IBM for the first couple of years of our marriage, but Alan’s business was growing rapidly and he needed someone with business management experience to run his business. 5. Were there any concerns about working together? We thought it was at least worth a shot. That was nine years ago — we’re both still here and we’re both still married. 6. What is your management philosophy? I like to try and figure out what people’s talents are and what they like to do, and then build my organization around my people, rather than the other way around. This is especially important with a small company where there’s not a lot of upward mobility. 7. What do you view as the most important aspect of your job? This type of business requires three different skill sets. You need someone who understands what you’re doing, so in this case, a technician. You also need a business person and you need somebody who’s an entrepreneur, a visionary. I’m the business person. I’m the one who brings structure and organization to the entrepreneur’s vision and the technician’s effort. 8. You have a unique office structure — could you tell us about it? All of my office personnel, with the exception of two people, work from home. That was objective number one for me when I went to work at Parrish, in part because I had been working at home as an IT professional for many years, and I wasn’t about to go into the office every day, especially with traffic in northern Virginia. 9. How do you make that work? We really rely on great communication between everyone, using internal instant messaging and text messages throughout the day. It’s really no different a challenge than communicating with technicians in the field. 10. What’s recruiting like in your area? It’s extremely competitive. I could throw a rock and hit five HVACR companies. So, not only is that an added challenge when it comes to finding new employees, but we’ve found that people with Parrish on their resume seem to be a hot commodity because of the level of training they get from working here.

HVACR BUSINESS FEBRUARY 2018

11. How do you combat that? We do everything we can to create a great working environment and create loyalty. We create an environment such that people don’t want to leave. For office employees, it’s quite easy because our people work from home. I think my shortest tenured CSR is probably six years. 12. And what about the technicians? We’re big on training. Every employee gets a training allowance and Alan works in the field, so he’s actually out there training young people. We hire a lot of unskilled people, so they come in and this is the first place they learn it. Then they love it and feel like they’re a part of this here. 13. What’s the biggest misconception about the current workforce? People have a lot of negative things to say about Millennials. But one of the things Millennials maybe have right is that they’re actually trying to enjoy their lives more. They’re trying to live in the moment and be mindful. And when you look at what our business is, that’s what we do. 14. How do you translate that to recruiting Millennials? We provide a place that’s comfortable, safe, enjoyable and worry-free for our customers. We help people so they don’t have to suffer with poor air quality, so they can do something about their allergies. This industry helps people enjoy their lives, and Millennials want to be a part of that. 15. What challenges do you see in the next few years? The single biggest threat we have as an industry is the commoditization of our services. It’s a problem when a customer’s reaction after you price something for them is, “I went on Amazon and that part was only two cents!” 16. That is a common criticism these days — how do you address it? As an industry, we have to learn to say to those people, “You’re not paying for my part. You’re not even paying for my labor. You’re paying for my expertise, among other things.” We need to be better at articulating the value that we bring. 17. Where do you see the most significant growth? People laugh at me, but I’m serious — the legalization of marijuana presents an incredibly huge opportunity for us. When you look at legalization, people aren’t growing this stuff outside. It’s in facilities that need a lot of environmental controls. You’re talking about a commercial environment where people will pay a premium for quality service. It could potentially become a specialty for contractors, much like data centers have. 18. How do you measure success? There are two big things that matter: employee morale and client satisfaction. If you don’t have these two things — and of course they go together — you aren’t successful. 19. What do you find most rewarding about your job? I love helping people. I love business and technology, and I get to do all of those things here at Parrish. 20. Who’s been your biggest role model? My father was an executive in the wholesale grocery business and so he taught me a lot about work ethic. As a child, my father would take my sister and me to work with him in the warehouse on weekends.

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