Contracting Business - January 2024

Trane Awarded Generation 4 Contract, p. 16

JANUARY 2024 contractingbusiness.com

HELPING HVACR MANAGERS RUN BETTER BUSINESSES SINCE 1944

Chicago Awaits

G. Stevens AH

R

AHR Expo welcomes a year that will be filled with challenges, changes and opportunities.

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ALSO IN THIS ISSUE:

6/8 Remembering Ron Smith 30 The Greats: Leland Smith 38 CB Influencers: Putnam, Keyworth 5078069 © Anthony Aneese Totah Jr | Dreamstime.com

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ACCA 2024 CONFERENCE & EXPO

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JANUARY 2024 | VOLUME 81, NUMBER 1

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The best AHR location in the nation (our opinion) awaits the 2024 AHR Expo at Chicago’s McCormick Place.

COLUMNISTS

6 First Word | Terry McIver 38 CB Influencers | Danielle Putnam, Colleen Keyworth 40 The Rant | Matt Michel

8 COVER STORY

DEPARTMENTS

20 2024 AHR Expo Preview:

It promises to be a Happy & Hectic New Year, as the AHR Expo greets a year that will be filled with challenges, changes and opportunities.

4 What’s New Online 8 From the Field 12 Products 16 Manufacturer News 39 Ad Index

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34

RESIDENTIAL HVAC

28 HOME-X: Bigger, Better in 2024

The HOME-X strategy of acquisitions and technology incorporation will continue into the New Year.

THE GREATS OF HVAC

30 Leland Smith: HVAC ‘Champion’

12

Our series on the great HVAC entrepreneurs continues, with a look at a West Coast quiet giant.

COMMERCIAL HVAC

34 Viewpoints on Preventive Maintenance

PM programs establish your firm as a leader in workplace environmental care and keeps the team busy and learning.

CELEBRATING 80 YEARS

36 We begin our year-long retrospective of this publication’s history with a look at its early years as a commercial refrigeration publishing leader.

Connect with us: contractingbusiness.com @contractingbiz https://www.facebook.com/CBMag https://bit.ly/CBonLinkedin

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contractingbusiness.com New DIGITAL CONTENT

Popular Stories in Contracting Business

Issue Highlights

Three Big Events Ring Out 2023 https://contractingbusiness.com/21279339

HOME-X: Better Tech for HVAC Techs

Editor-In-Chief, Terry McIver, tmciver@endeavorb2b.com

https://contractingbusiness.com/21277566

Art Director, Julie Whitty

Benefits of Video Marketing

Production Manager, Sam Schulenberg

https://contractingbusiness.com/21277536

News @ Press Time Ron Smith Dies at 87

https://contractingbusiness.com/21279757

Heritage Distribution Acquires Webb Supply

https://contractingbusiness.com/21279641

Heatcraft Price Increase

https://contractingbusiness.com/21279654

Contracting Business Success

4 Requirements of Success

https://contractingbusiness.com/21256089 Good News!

Group Editorial Director Buildings & Construction, Mike Eby

Digital Editions Now Go Back 12 Years:

Dispersion is Weakness

https://contractingbusiness.com/21255530

eNewsletter Update

HVAC INTELLIGENCE eNEWSLETTER Derailing Duct Renovations Be aware of four equipment specs that can derail your duct renovations.

https://contractingbusiness.com/21279040 To receive HVAC Intelligence and other newsletters, visit:

bit.ly/CBnewslettersubscribe

Visit the EGIA Resource Library Searchable database can be found at

mycontractoruniversity.com.

bit.ly/CBDigitalArchive

Popular Online Galleries

Rheem Cuts a Ribbon

https://contractingbusiness.com/21275471

Ad Services Manager, Deanna O’Byrne

Final Events for 2023

https://contractingbusiness.com/21279339

CEO, Chris Ferrell President, June Griffin COO, Patrick Rains CRO, Reggie Lawrence Chief Digital Officer, Jacquie Niemiec Chief Administrative and Legal Officer, Tracy Kane EVP, Building/Lighting/Technology, Lester Craft

Contracting Business (USPS Permit 010-480, ISSN 0279-4071 print, ISSN 2771-652X online) is published monthly by Endeavor Business Media, LLC. 1233 Janesville Ave., Fort Atkinson, WI 53538.

Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Contracting Business, PO Box 3257, Northbrook, IL 60065-3257.

SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. ($ 105.00); Canada/Mexico ($ 137.50); All other countries ($ 157.50). All subscriptions are payable in U.S. funds. Send subscription inquiries to Contracting Business, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached tollfree at 877-382-9187 or at contractingbusiness@ omeda.com for magazine subscription assistance or questions.

Printed in the USA. Copyright 2024 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.

4 | CONTRACTING BUSINESS | JANUARY 2024

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FIRST WORD BY TERRY MCIVER, EDITOR-IN-CHIEF

N

Smith: Common Name, Uncommon Man

R Ron Smith was a one-of-a-kind human being and educator.

EDITORIAL ADVISORY BOARD TOM CASEY

Climate Partners Griffin Service

MIKE CONLEY

Pioneer Heating & AC

VINCE DIFILIPPO

DiFilippo’s Service Co.

DOMINICK GUARINO

National Comfort Institute

LOUIS HOBAICA Hobaica Services

MATT MICHEL Author

BRIAN STACK

Stack Heating & Cooling

on Smith, the father of the modern HVAC service business, died on Thursday, Dec. 22 at the age of 87. Many of his friends knew that Ron was in failing health, and so were on guard for the sad news to eventually arrive.

Ron Smith started his first company in 1965, with $500. By 1984, Modern Air Conditioning had become a $15 million business that grew between $1.5 to $5 million each year thereafter. Later, he purchased, significantly grew, and then sold three similar air conditioning and heating companies in the Louisiana and Florida markets.

In 1985 he founded Service America, based in Atlanta, GA, as the first national HVAC franchiser.

In less than four years the firm had over 100 franchisees. It was later sold to a Swiss public company, purchased back from them two years later, and sold the second time in 1991 to Roto-Rooter. The accolades for Ron Smith are endless.

Ron wrote “HVAC Spells Wealth,” where he put down for posterity the best practices to follow when running an HVAC service company.

Some testimonials we have received: Matt Michel: “By the time I first heard about Ron Smith, he was already an icon. In the mid-1980s, I was a young marketing grunt working in the corporate offices of Lennox Industries. Ron Smith was a legendary contractor, single-handedly reinventing the business of HVAC contracting. Today, we accept the basic contracting business model Ron created as a matter of course, but when Ron started it was radical.

“Counter to conventional wisdom, Ron built a big, profitable company through nothing but service, replacement, and add-on work. A $15 million contracting service and replacement contracting company is nothing to sneeze at today. In the mid eighties, it was beyond comprehension. Ron Smith built one.” (Matt’s entire testimonial to Ron Smith can be found on ContractingBusiness.com) Drew Cameron: “Ron Smith was a great friend, savant, trendsetter, and industry colleague. He shared many talks and insights, hired me at Service Experts in 1998, and even gave me me plug in his industry-success blueprint book HVAC Spells Wealth.

He was always growing others. I appreciate his impact on me.

“Ron was a one-of-a-kind human being and educator. He has had a great impact on so many firsthand and so many more beyond, with his rippleeffect reach, who never knew him. That is his legacy.

The HVAC industry and everyone who benefits from it in any walk of life is better off today because of Ron Smith. I appreciate him for who he was and all he did for others. HVAC spells wealth, but Ron Smith spells HVAC, and that’s all we need to know.”

Tom Piscitelli: “’Hi Tom, I’m Ron Smith’”, he said, as he extended his hand to shake mine. Of course I knew who he was. What startled me was that he knew who I was. We were both exhibiting at Comfortech in January, 2007, so there were hundreds of people around us, but all I heard were his words. He had his HVAC Spells Wealth book in his hand. ‘Here’, he said, ‘let me show you something.’

He turned to page 273 and handed it to me. He had listed three sales trainers, Charlie Greer, Drew Cameron and me. I was flattered, of course, and a bit stunned that he had essentially endorsed me and my training without having met or heard me speak.

What a gift! A very generous gift. That reference proved to be all I needed with future clients who hadn’t previously known me.

“Several years later, Ron invited me to create and co-train a new curriculum which we titled, How to Thrive in a Challenging Economy. This was a combination of his book and my sales training materials which we turned into a two-day seminar and a two-disc audio CD. The time we spent together developing the curriculum and delivering the workshop was another gift to me.

“We will all remember lots of things about Ron, ‘Get and keep customers’, ‘Customers, Coworkers, Company’, KPI’s and so much more. Most of all, for me, I’ll remember his desire to help others, as he did for me.”

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Charlie Greer: Ron Smith was the best boss a salesman could ever have. If he still owned Modern Air Conditioning in Fort Myers, Florida, and he still ran it the way he did in the 1980s, I’d still be working there as a salesman and would be very happy doing it. He’s considered a genius in the contracting world. He started as a one-man shop and grew it into a 200-employee company that literally ran by itself. His real genius was in his recruiting. He recruited John Young, Tom McCart, Ruth King (Service America), and me, as well as many great managers and co-workers that never sought national recognition, but did their jobs so well that we didn’t need him around. He was a decent, honest man, and will be greatly missed.”

We’ll share more Ron Smith testimonials as we receive them. Send yours to: tmciver@endeavorb2b.com.

6 | CONTRACTING BUSINESS | JANUARY 2024

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FROM THE FIELD COMPILED BY TERRY MCIVER, EDITOR-IN-CHIEF

Ron Smith, HVAC Service Business Innovator, Dies at 87

R

on Smith, viewed by many as the father of the modern air conditioing service business, died on Thursday, December 21 in Cumming, Georiga at the age of 87.

Ron Smith began Modern Air Conditioning, Inc. in 1965, with $500 of working capital. By 1984, the company had achieved $15 million in sales volume.

From 1979 to 1984, Modern’s service business grew from $1.5 milllion to $5 million each year.

Ron and Betty Smith at a Ron Smith Appreciation event, March 29, 2022., presented by ServiceNation.

MIchael Keating

In 1985 he founded Service America, based in Atlanta, GA, the first national HVAC franchiser. In less than four years the firm had over 100 franchisees. It was later sold to a Swiss public company, purchased back from them two years later, and sold the second time in 1991 to Roto-Rooter.

Ron wanted to share his ideas with other contractors so that they too would build prosperous businesses. He founded Ron Smith & Associates (RS&A), an HVAC exclusive training and consulting company based in Roswell, GA in 1991. RS&A, with its focus on operations, systems, processes, and disciplines soon was one of the industry’s leading training and consulting firms. Ron developed and then over the next several years personally presented his Dominant Market Share yearlong training program to over seventy distributor groups with well over 1900 contractor attendees.

He sold the company in 1997.

In 1997 Smith joined Service Experts in Brentwood, TN, an HVAC consolidator and public company, as chief operating officer and served in that position until after the company was sold to Lennox Industries.

When it sold in early 2000 it had 116 locations across the U.S after making more than 200 acquisitions, and with annual revenues of over $600 million.

“It is a sad day for those of us who knew Ron. This is no small number,” said Matt Michel, co-founder and ex-CEO of ServiceNation, and one of Smith’s closest friends and strongest supporters.

“Ron personally improved the lives of thousands of people in the HVAC industry and many more than that through his innovations, writing, and speaking.

Literally, everyone who works in the entire residential service and replacement side of the business has been impacted by Ron Smith,” Michel said.

“By the time I first heard about Ron Smith, he was already an icon. In the mid-1980s, I was a young marketing grunt working in the corporate offices of Lennox Industries. Ron Smith was a legendary contractor,” Michel shared. “Ron was single-handedly reinventing the business of HVAC contracting. Today, we accept the basic contracting business model Ron created as a matter of course, but when Ron started it was radical.

Before Ron Smith came along, Michel said, most HVAC contractors viewed service as an imposition. “The replacement market was in its infancy. The action was in new construction and add-ons.

Conventional wisdom said the way to build a big, profitable contracting company was to play in the field of residential new construction. Ron turned this notion, and the industry, on its head.”

“Ron built a big, profitable company through nothing but service, replacement, and add-on work. A $15 million contracting service and replacement contracting company is nothing to sneeze at today. In the mid-eighties, it was beyond comprehension. Ron Smith built one.”

One of Smith’s Service Experts hires was Drew Cameron, president, Flow Odyssey and Energy Design Systems, LLC.

“Ron Smith was a great friend, savant, trendsetter, and industry colleague. He shared many talks and insights, hired me at Service Experts in 1998, and even gave me me a plug in your industry-success blueprint book “HVAC Spells Wealth.’ He was always growing others. I appreciate his impact on me,” Cameron said.

“Ron was a one-of-a-kind human being and educator. He has had a great impact on so many firsthand and so many more beyond, with his ripple-effect reach, who never knew him. That is his legacy. The HVAC industry and everyone who benefits from it in any walk of life is better off today because of Ron Smith. I appreciate him for who he was and all he did for others.

HVAC spells wealth, but Ron Smith spells HVAC, and that’s all we need to know,” said Cameron.

“The HVAC Industry lost a real hero in December,” said Mike Weil, editor of Contracting Business from 2004-2014.

“Ron Smith was an entrepreneur who started a small HVAC contracting business in the mid-1960s, which he grew, then sold, and then spent the rest of his life building wealth and teaching others how to do it, too,” Weil said.

“Ron is credited for being the father of the HVAC Service Agreement. He is credited for training some of this industry’s other superstars, including people like Tom McCart and Charlie Greer.

“I met Ron early in my career at Contracting Business magazine. We soon became good friends, and he taught me a lot about the HVAC industry. He willingly became part of my editorial advisory team, wrote articles for me, gave me leads for others, helped my team build HVAC Comfortech into the powerhouse residential HVAC trade show that it was, and was generous with his time helping this thick-headed kid to understand not only the importance of this industry but the people in it as well.

“He was honest, sometimes ruggedly direct in his advice and criticism, and always kind when you did a service for him or the industry. His impact on my career was profound, and my heart is broken at his loss,” concluded Weil.

C h m

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G l p w n y i

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FROM THE FIELD

Ron Smith was inducted into the Contracting Business HVAC Hall of Fame in 1994.

He served many years on the Florida Construction Industry Licensing Board, and also served on the Florida Governor’s Conference on Small Business. In 1979 he was chosen “Free Enterprise Citizen of the Year” in Ft. Myers/Lee County, FL. In 1980/81 he graduated from Harvard Business School’s Executive Education Program, Managing Organizational Effectiveness.

Ron Smith’s civic work included involvement as area coordinator in a South Florida youth drug abuse program for several years, and chairing a huge five-year church construction project in Ft. Myers, FL on both the Planning Committee and the Building Committee.

He and his wife, Betty, did church mission work in foreign countries and were very active in their church.

In 2014, Contracting Business magazine published an article titled “The 22 Most Influential People in the HVACR Industry”.

Ron Smith was third on the list after Willis Carrier and John Copeland.

A “Ron Smith Appreciation Day” event was held in 2021 near Atlanta, spear-headed by Matt Michel and ServiceNation. Read about the event at bit.ly.ronsmithday.

Orion Group Partners with Owens Companies

Orion Group, a commercial facility services business, announced in July, 2023 that it had partnered with Owens Companies, a leading commercial HVAC services company based in Minneapolis, MN. Owens Companies is Orion’s latest investment in the commercial HVAC industry. Orion plans to build a national platform by partnering with exceptional family-owned facility services businesses and providing resources to help fuel their next chapter of growth.

Owens joins a growing portfolio of heavy mechanical focused businesses across the United States and its first investment in the Twin Cities John Owens area. Owens Companies is a fully integrated, single source mechanical contractor performing Commercial and Residential HVAC for the Twin Cities, employing the highest-skilled HVAC technicians in the region. Founded in 1957 by the late Robert H. Owens, Owens Companies has flourished by focusing on robust preventive maintenance procedures on the most complex equipment in the region. Bob’s son, John Owens, joined the company in 1978 as a salesman and served most recently as president & CEO, continuing to develop its capabilities, customer base, and Owens’ strong relationship with its workforce.

“Owens Companies is proud to announce we are taking our business to the next level with the Orion Services Group. Orion recognizes the long tradition of excellence at Owens and the quality and strength of the Owens Team. Bob Owens was a pioneer in our industry and set the standards for others to follow. I have spent 45 years working to carry on his legacy and honor his memory, along with that of my late brother Jim, who was a vice president of the company,” said John Owens. “I am confident with

Orion our loyal customers will continue to receive the quality of service they have come to expect from Owens Companies.”

Julie Kirby, Owens Companies’ CFO since 2021, has been promoted to president and will lead the company’s operations. “With a 66-year-old reputation in the Twin Cities as the premier provider of heating and cooling services, Owens has been able to attract and retain customers for decades. They have a relentless focus on customer and technician needs while maintaining a tight-knit, family-owned culture. We could not be more excited to partner with John, Julie, and the entire team at Owens Companies,” said Scott Ingold, Group President of Orion.

Orion Group is a commercial facility services company seeking to partner with market leading family-owned service providers.

For more information, visit orionservicesgroup.com.

Owens Companies brings over six decades of experience to each building we service. It is a leading fully integrated, single-source mechanical contractor in the Twin Cities, previously recognized as the Contracting Business 1996 Commercial Contractor of the Year.

IEI Advisors Adds Wilken as Partner

IEI Advisors, a leading mergers and acquisitions firm based in Richmond, VA, recently announced it had added retired TDIndustries executive Bob Wilken as a consulting partner.

Peter Flippen, managing partner at IEI Advisors, said IEI will often hear from a company that they are not ready to discuss selling until a number of years down the road.

“Then we had an ‘Aha!’ moment when reconnecting with Bob Wilken,” Flippen said. “After discussing Bob’s interest in sharing his knowledge through advisory and board relationships, we knew that a semi-retired Bob could make a fantastic consultant. It helped that Bob had served on the board of TDIndustries, was curBob Wilken rently on the board of two HVAC companies, and IEI Advisors had experience in an HVAC consulting role,” Flippen said.

Flippen said after partnering with Wilken at IEI, they immediately started introducing him to business owners, with good results.

“We’ve brought Bob on as an IEI Advisors consulting partner to help him get connected to the Peter Flippen right owners. Our hope is that Bob can support IEI Advisors owners in achieving their goals and ultimately help them grow the value of their business,” Flippen added.

During his 27-year career at TDIndustries, Wilken helped grow its service business from $20 million to $170 million, rose to become president of TDI’s mechanical service group, and trained and developed leaders for multiple business units. Wilkens entire commercial HVAC career covers 46 years, including time with Honeywell. He served in leadership roles for many businesses, including service, energy solutions, building controls, multifamily construction, facilities management services, high purity piping, the TDI Arizona office start-up, and the Service Leadership Forum. He also led, grew, and transitioned several business units to new leadership.

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EDITOR’S NOTEBOOK: PRODUCTS

Rheem, AHR EXPO Booth S-7569

The Rheem® Endeavor™ Line Prestige® Series iM Heat Pump (RP18AZ) is backed by patented industry-first features, 360+1 design and makes for a versatile solution for every home. The EcoNet® enabled unit features super-efficient technology, outstanding durability and qualifies for substantial tax credits and rebates. The inverter driven and variable speed compressor technology promotes ideal cooling operation between 40% and 100% of capacity, with overdrive capability up to 115% in extreme conditions, to meet ever-changing heating and cooling needs.

This unit is ENERGY STAR® certified (up to 20 SEER2 / 12.5 EER2 / 8.5 HSPF2), provides precise temperature control, advanced humidity control and greater efficiency, making it an ideal solution for every home. Crafted with curved louvered panels, rugged corner posts, corrosionresistant composite Rheem Prestige heat pump base pan and a powder coat paint system, the unit is durable and sustainable.

Designed with home comfort and acoustics at the top of the list, the RP18AZ features sound-dampening attributes such as refrigerant tubing design, fan blade approach, composite base pan and innovative compressor and drive technologies to ensure that as efficiency goes up, sound levels stay low. The RP18AZ boasts a sound ranking as low as 58 dB.

Daikin Applied, AHR Booth S-7549

While there are other low-GWP refrigerants on the market, the low-GWP plus high capacity and efficiency of R-32 is a leading combination for decarbonization. With R-32, Trailblazer AGZ-F delivers 10% greater capacity and efficiency versus previous models, with the potential to provide cost savings and reduce carbon emissions. Also, with a 33% reduced footprint and 10% reduced weight, AGZ-F presents a more compact solution for engineers, contractors, and building owners and operators cognizant of limited space.

With a 30- to 240-ton range, AGZ-F features composite condenser fan blades as well for a simpler mechanical design with less potential for parts failures and related maintenance spend.

Daikin’s new Trailblazer (model AGZ-F) is one of the first chillers available in North America with low-global warming potential (GWP) and highly efficient R-32 refrigerant. The company has also added a closed-loop version of the Pathfinder with Free Cooling (model AWV) to its portfolio.

Ideal for data centers and other energy-intense applications, this chiller delivers the efficiency benefits of an integrated

G.Stevens AHR

water-side economizer, commonly known as “free cooling,” while eliminating the need to use glycol in the building water loop as an antifreeze.

As data centers continue to scale exponentially, there has been increasing customer interest in HVAC systems that don’t require an antifreeze in the facility water loop. The Pathfinder AWV with Closed-Looped Free Cooling eliminates the need to add glycol to the building’s water loop to prevent freezing in colder climates. By pairing an intermediate heat exchanger with the chiller, glycol can be used outdoors in the chiller, but remains isolated from the building water loop, which reduces any potential impact to performance and maintenance inside the facility.

Carrier Commercial, AHR Booth S-7510

Carrier is introducing a new, more compact model of its awardwinning 19MV with proven EquiDrive™ two-stage magnetic bearing compressor design for more performance per square foot.

The 19MV is available with the choice of low global warming potential R-513A or R-515B refrigerant. It combines the Greenspeed® intelligence variable frequency drive to enable enhanced performance at off-design conditions and the SmartVu™ control panel for intelligent control and easier tracking and analysis of operational data. The 19MV is designed to make buildings better by allowing for optimization of HVAC systems. It can also take full advantage of cold condenser water, chilled water reset and other energy-saving practices to further improve building performance.

Carrier Residential, AHR Booth S-7510

The Infinity 24 heat pump with Greenspeed® intelligence takes Carrier’s most advanced technology to the next level. If it looks like next-gen technology, that’s because it is.

Greenspeed intelligence is created by pairing adaptablespeed technology with the Infinity® System Control. The unique, variable-speed compressor of this unit, allows it to literally adapt its output to the needs of the home. With tiny adjustments between 25 and 100% capacity, it gives the home only the amount of cooling or heating necessary.

This allows the system to operate longer at steadier, lower capacities, which ensures incredible energy efficiency and quiet operation with tighter temperature control than standard systems.

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Software

Sera Systems, Inc., now offers integration of its field service management software with Service Finance Company, LLC’s financing options. Service Finance, a wholly owned subsidiary of Truist Bank, is a nationally licensed finance provider that works with contractors to provide financing solutions to their customers for home improvement and repair.

HVAC, plumbing, electrical, and other home service contractors can instantly present multiple lending options for their customers without leaving the Sera app. Customers can then apply for financing for repair and replacement projects through Sera’s software.

Service technicians can offer financing at competitive rates while they are on customers’ premises, which helps close more sales. Consumers can get finance approval in seconds to make necessary repairs or have whole new HVAC systems, water heaters, or other equipment installed—without getting out of their chairs.

Contractors can offer a wide range of financing options, including low interest, no interest, and no money down options to meet each customer’s specific preference and financial requirements. Fast loan approval gets work started sooner, which improves cash flow.

Chris Meseke, Head of Product for Sera, said a key benefit of the Sera/Service Finance integration for contractors is the ability to stay in the Sera FSM software application throughout a service call.

Meseke “Service technicians view offers and calculate financing options in the Sera Tech App,” Meseke said. “It’s all in the app— every plan’s regular and promotional terms and interest rate.

This integration results in a seamless process that improves efficiency and confidence for techs.”

Contractor managers now can use Sera to select from the list of financing plans offered. Plans can be applied to departments and turned on and off to allow flexibility in sales methods in the field.

In addition, clicking the Update button in Sera will instantly update the rates and terms for existing plans and add new offers, as well. Financing plans come with pre-established minimum and maximum amounts, but contractors can override the pre-set minimum amount to set higher price thresholds if that better serves their business.

Sera Systems opens a new era of field service management software that is increasing margins by more than 50% for smallto-midsize companies within six months of implementation.

Sera focuses on managing time, profit margin, cash flow, and membership plans using each client’s own data to boost financial performance and establish long-term business viability and growth.

Light Commercial Comfort

Oxbox™, endorsed by Trane®, announced expansion of its product and service offerings to help meet customers’ changing needs. The expanded offering, which the company has dubbed “Oxbox 2.0,” features a new light commercial packaged

unit—its first ever introduction in the commercial space, a new furnace line and an improved warranty option. The improvements underscore Oxbox’s commitment to adapting to the marketplace as its customers’ needs evolve.

With easy installation, Oxbox’s new Light Commercial Packaged Unit offers a turnkey solution for commercial customers. The LCU fits on a variety of competitor footprints with no adapter curb needed—saving install time and money.

It meets DOE 2023 efficiency requirements, has an energy efficiency rating up to 14.8 IEER and convertible airflow. The new units, which have cabinetry and component layouts designed to enhance serviceability of key systems, may be ordered now via Oxcart, the company’s ecommerce platform, for shipment from the company’s distribution centers beginning February 2024.

Additionally, Oxbox is simplifying its portfolio with a newly available line of furnaces featuring expanded and optimized dual fuel ratings*. The furnaces are high quality, 100% fire tested, with efficient and variable speed ECM motors. With less SKUs to manage, the streamlined portfolio makes it even easier for customers and vendor partners to do business with Oxbox.

Rounding out the improvements, the company is now offering an improved, extended warranty option that is next to none in the value HVAC market. Not only does it feature a competitive length of coverage, it also covers multi-family applications, has a one-year replacement pledge, and stays with the home (not the homeowner), eliminating the need for transfer paperwork or related fees. *Not yet available in California

Refrigeration Valves

Mueller Refrigeration’s streamline refrigeration ball valves have copper press/FTG connections. They turn refrigerant flow on and off to allow for repairs or to recharge refrigerant. These ball valves are compatible with CFC, HCFC, HFC, and HFO refrigerants and oils. The valve stem is encapsulated to prevent rupturing.

Parker refrigeration valves consist of solenoid valves for liquid, suction and hot gas defrost application requirements.

The valves are compatible with virtually all of today’s commercially available CFC, HCFC and HFC refrigerants and blends. The Parker refrigeration valves meet a broad range of system needs including refrigeration, air conditioning and freezing applications. From small fractional tonnage to large systems.

White Rodgers BV series welded refrigeration ball (With Access Valve), connection size 1-3/8-in. isolates suction, discharge and liquid line pipe work during maintenance ahutdown Valve features: forged brass body; compact, lightweight, hermetic design; compatible with HCFC and HFC refrigerants and lubricants including R-410A and carbon dioxide. it has a full flow design, bi-directional flow characteristics and a valve stem cap that is retained by a strap attached to the main body.

All product claims are made by the manufacturers.

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AHR Expo’s Decarbonization Success Stories Parker, Booth S-7136

Heating Homes with Zero Carbon Emissions: Parker’s Heatric Heat Exchanger (PCHE) is a key component in Electro-Thermal Energy Storage (ETES) systems. This technology is being used to decarbonize the heat supply of Esbjerg, Denmark, where the port city’s thriving offshore wind infrastructure enables the use of renewable power as a source for the generation of heating energy. Due to the location of Port of Esbjerg, renewable power from nearby wind farms and seawater will be used as a heat source for the generation of heating energy, guaranteeing an emission-free alternative to the city’s current coal-fired power plant. Featuring two ETES heat-pump systems, it will supply around 100,000 residences with approximately 235,000 MWh of heat annually. Parker’s Heatric PCHE enables commercialscale, sustainable clean energy systems by maximizing the output generated by renewables. Compared to energy-related coal burning each year, it eliminates NOx /SOx pollutants and 100,000 metric tons of CO2 from the atmosphere.

Bosch Home Comfort, Booth S-8188

Bosch Home Comfort is bringing its innovative water source heat pumps to one of the most iconic buildings in Seattle—the Columbia Center. All 2,500 units in the building are being

replaced with Bosch QV Series and LM Series heat pumps over the course of 7-10 years. The installation team is replacing the equipment floor-by-floor for all 76 floors of the building, which boasts 1.5 million square feet. Two other recent examples include two solutions that we will be featuring at AHR: the GreenTronic 7000 T Hybrid Electric Water Heater and the IDS Ultra Heat Pump, which recently met the DOE’s Cold Climate Heat Pump Challenge.

Danfoss, Booth N-2510

When it began ‘raining’ in the Towson Court House a leaky roof was assumed to be the culprit, according to project leaders at the Maryland Department of General Services (DGS), the state’s property manager. For Courtney League, DGS’s Chief of the Facilities Engineering Division, and Harry Hughes, Project Manager for Design, Construction and Energy, the truth turned out to be much stranger.

There was such negative air pressure in the building from the HVAC system that outside water was literally being sucked in through the perimeter walls and joints,” said League. “Ceiling tiles were visibly billowing and warping even though the roof itself was fine.” All of this hinted at the ongoing internal climate battle the building team faced. With outside air constantly flowing into the building, it became impossible to maintain temperatures at comfortable levels; residents consistently complained about pockets of hot and cold air, as well as humidity and dampness throughout the building.

At first, DGS took a traditional approach to fixing the building, focusing on individual pieces of equipment like chillers, pumps and air handlers. DGS’ maintenance team replaced air handling units, many of which were several decades old. When that didn’t solve the comfort issues, the DGS engineering team invited Jae Chon, Director of Strategic Markets at Chesapeake Systems, a Maryland-based HVAC consultant and equipment distributor, to evaluate the building system. Chon discovered it wasn’t a few pieces of old and faulty equipment; the entire HVAC system was completely unbalanced, with dampers blowing into empty ceiling spaces, vital equipment plated up, control switches inexplicably disconnected, tarps hidden in crawl spaces to redirect water and more. Each “fix” to a seemingly isolated part of the system was, in fact, impacting the entire building. Chon, League and Hughes determined that simply replacing the existing equipment would not heal this sick building. A more holistic approach was necessary, one in which each piece of equipment was viewed as a node in a larger, synergistic system. The solution was found in a Synchronized Hydronic Loop by Danfoss.

Bell & Gossett, Booth S-7145

As part of the Harvard University Allston extension and its commitment to environmental sustainability, the campus includes an energy-efficient 58,000-square-foot in-house utility plant. The campus also features a 1.3-million-gallon thermal 14 | CONTRACTING BUSINESS | JANUARY 2024

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How Building Decarbonization Can Transform HVAC Excerpt from article in ASHRAE Journal, Vol. 63, number 9, by Peter Rumsey, P.E., founder and CEO of Point Energy Innovations in San Francisco and cofounder of the Stanford Building Decarbonization Learning Accelerator in Stanford, Calif., Jorlyn Le Garrec, project engineer, and Avril Levasseur, P.E., associate engineer at Point Energy Innovations in San Francisco.

By the end of 2050, 12 states and 160 cities have official goals to get 100% of their electricity from clean sources. California cities are leading the nation in building electrification legislation, with 28 cities having adopted all-electric requirements for new construction; 50 additional cities and counties have pending electrification legislation as of this writing. Much of the southeast U.S., where heating loads are light, already uses electric sources of heating. And, in moderate and cold climates a surge of interest exists in heat pump systems, which provide an efficient alternative to electric resistance for heating. This article explores heat pump systems as one way building decarbonization can transform HVAC. Buildings in the U.S. account for 40% of carbon emissions.

Eighty percent of that is from electricity use and the remainder is from the combustion of fossil fuels for heating and other uses at the building. Many states, utilities, and large corporations are moving to get electricity from clean, carbon neutral sources. The authors support electricity as the carbon free choice of energy

for many in the U.S. Buildings that use natural gas and other fossil fuels for heating will be stuck producing carbon emissions, as electricity becomes increasingly carbon free. For that reason, many are starting to look at all-electric options for providing heat to buildings. An all electric building coupled with a renewable or carbon-free source of electricity is considered to be decarbonized in its operation. In addition to operational carbon, buildings have embodied carbon. Embodied carbon is the total greenhouse gas emissions from the materials and the construction process throughout the life cycle of the building. While both embodied and operational carbon emissions must be reduced in a decarbonization effort, embodied carbon is a one-time carbon emission during the construction process. Operational carbon, on the other hand, is continuously emitted and significantly outweighs the embodied carbon over a 50-year lifetime of a building. This article addresses operational carbon, which is where the responsibility of those in ASHRAE lies.

The authors claim building HVAC systems, water heating and even cooking will be transformed by the move to decarbonized buildings. ASHRAE Members have free access to the full-text PDF of this article as well as the complete ASHRAE Journal archives back to 1997 in the Free Member Access Area. https://www. ashrae.org/technical-resources/technology-portal

storage tank with a total capacity equivalent to 9 megawatt hours that stores chilled water to cool buildings on campus.

The utilization of Bell & Gossett’s highly efficient VSX and HSC pumps and their robust hydraulic capabilities helps meet energy demand efficiently.

An age-old technology with a modern twist reduces natural gas or propane fuel usage by up to 50% and could save homeowners as much in fuel costs, offering a strong solution to a difficult environmental problem. Anesi’s Gas Heat Pump (GHP) uses natural gas or propane, not electricity, for energy.

Except this version—re-engineered for modern times and made in the USA—boasts an AFUE rating of 140%!

Bell & Gossett sources report customers will be warm and comfortable with this heat pump, even during cold winter nights. It needs no backup, down to minus 40 degrees.

Anesi, Booth S-8196

Replacing a gas furnace and a gas water heater? Anesi’s Heat Pump System offers simple installation and requires minimal home upgrades, sources say. With its custom hydronic airhandling unit (AH1400), also made by Anesi, the system offers the lowest cost of space and water heating for your customer compared to anything else on the market. That’s because it uses 30-50% less natural gas than a furnace or boiler. It is also more affordable to operate for winter heat than electric heat pumps. The Anesi Heat Pump System offers immediate environmental benefits through reductions in fuel use, with a lower carbon footprint than EHPs in most cool & cold climate zones.

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MANUFACTURER NEWS COMPILED BY TERRY MCIVER, EDITOR-IN-CHIEF

Trane® Awarded Generation 4 Contract with Department of Energy Federal Management Program Trane®—by Trane Technologies has been awarded the Department of Energy’s Generation 4 Indefinite Delivery Indefinite Quantity (IDIQ) energy savings performance contract (ESPC). This government-wide vehicle allows Federal agencies to leverage private capital and utility cost savings to reduce energy consumption, decarbonize, and enhance the resilience of Federal facilities. Trane has held a DOE IDIQ contract for 25 years.

The Gen4 contract carries a $5 billion contract ceiling over 10 years. On the previous contracts, Trane has executed several ESPC projects at Federal Facilities, resulting in: total energy savings of nearly $350 million • total fuel savings of 15,062,285 MBTU, or the annual energy use of 394 homes* • total water savings of 1,472,309k Gals of water, the equivalent of 3,004 Olympic swimming pools • average consumer baseline energy consumption reduction of 32.2 percent.

“Trane is ready to deepen our longstanding relationships and expand to additional Federal agencies to help them accelerate their transition to clean energy and assure their missions,” said

Jody Wilkens, Vice President, Federal, Trane. “This most recent IDIQ clears the way for projects through the end of the decade and further supports Trane Technologies’ 2030 Sustainability Commitments.”

To learn more about the energy efficiency solutions offered by Trane, visit bit.ly/tranetechnologyblog. *Calculated using the EPA’s Greenhouse Gas Equivalencies Calculator

Chemours Announces F-Gas Lifecycle Program The Chemours Company announced in November the creation of an international F-gas Lifecycle Program across the Americas, Asia, and Europe. The program aims to advance safe, global recovery, reclaim, and reuse of fluorinated gases (F-gases) across its low global warming potential (GWP) Opteon™ products, Freon™ refrigerants, and FM-200™ portfolios.

The program began as region and country-specific initiatives, and now includes global oversight to drive additional adoption,

Viewpoint: Top 5 Benefits of the Right Equity Partner by Richard Lewis In the HVAC industry today, there are a variety of ways for business owners to exit their companies when the time is right.

But this has not always been the case. In the past, the most common path to leave a business was to sell it outright, 100%, and move on or retire.

Now, there are more options—including selling a majority stake of the business to an ‘equity partner’ and remaining with the company as it grows. With the HVAC Industry expected to reach over $150 billion in 2023, equity partnerships will like remain popular.

Here are the top five reasons why this path has become so popular (and potentially lucrative) for business owners who find the right equity partner for their needs.

1) Allows business owners to take chips off the table (and de-risk their lives) while also allowing them to remain with the business. The brand, culture and team all stay the same but the responsibilities of owning the business become shared with the new owner.

2) Enables owners to share the weight and responsibility of the business

with someone else (the equity partner).

Equity partners spread the burden of owning the business and allow you to lean into their expertise to help grow while sharing the workload.

3) Empowers businesses to grow faster with the resources and support of a sophisticated partner. A good equity partner brings a lot to the table including coaching, purchasing programs, access to capital and operational support that businesses may not have access to otherwise.

4) Ability to leverage the equity partners’ balance sheet to super-charge growth, including capital for tuck-in acquisitions, new equipment, additional vehicles and more. With a strong balance sheet and consistently reinvested profits, businesses can reach their full growth potential.

5) Offers owners a built-in exit plan for when they are ready to fully move on or retire. Every deal is different but equity partnerships give owners more choices and a strategic exit plan for their role within the business. ​​

When it comes to equity partnerships, not all partners are created equal. It’s important to do your homework and reach out to businesses within a partner portfolio to get a feel for the management team and company culture. Research on the front end of the deal can reduce risks and ensure the partnership is set up for success from the beginning. Successful equity partnerships can be a win/win solution to accelerate growth and help businesses reach their full potential.

Richard Lewis is the CEO and Founder of Redwood Services. Before forming Redwood, Richard spent nearly 12 years in a variety of operating and leadership roles at The ServiceMaster Company, working with some of the world’s most iconic and successful service brands, including Terminix, TruGreen, Merry Maids and more.

Richard began his career as an Analyst at Bear Stearns with an MBA from Emory University and earned his in Business from Yeshiva University. Learn more: https:// redwoodservices.com.

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partnerships, and reclamation. Chemours will complete a global review to identify opportunities for expansion and increased collaboration. The announcement reinforces Chemours’ commitment to supporting a global circular economy and the United Nations’ Sustainable Development Goals, as outlined in its recent Chemours Sustainability Report. It also advances the net zero

Appointments Darren Gibula recently returned to LG Air Conditioning Technologies as Vice President, Operations. Darren has direct oversight of business systems, operations, training, aftermarket support and technical support call center. Darren will also work Gibula to provide the best possible customer experience and anticipates working cross-functionally with LGEAI, HQ, and others on many continuous improvement initiatives.

Throughout his 30-year-career, Gibula has excelled in various roles, highlighting his expertise in operations, manufacturing, sales, distribution, ERP systems, and financial planning and analysis.

objectives of Chemours, broader industry, and global legislative bodies through overall emission reduction, sources report.

Chemours’ international F-gas Lifecycle Program includes agreements across the Americas (Canada and the United States); in the Asia Pacific (Japan); and in Europe (all 27 countries in the European Union and the United Kingdom).

“At Chemours, we are dedicated to harnessing the power of our chemistry to create a more sustainable and circular future,” said Joe Martinko president of Thermal & Specialized Solutions (TSS) at Chemours. “We have committed to, and are advancing, significant emission reduction within our gates. Now, we’re expanding our focus to emission reduction throughout the product lifecycle. F-gases—unlike so-called ‘natural’ alternatives—can be recovered, reclaimed, and reused across multiple applications, maximizing resource efficiency, minimizing waste, and lowering emissions. This international F-gas Lifecycle Program will help advance circularity and sustainability around the world, ultimately supporting global climate targets and minimizing impact on our shared planet.”

Learn more about this program or Chemours’s commitment to circularity, at circularity@chemours.com or visit TheWorldNeedsF-gases.com or Opteon.com.

+

METUS Thanks DSG SUWANEE, Ga.—Mitsubishi Electric Trane US LLC (METUS) recently celebrated the contributions of its Diamond Service Group (DSG) members during the 2023 Diamond Service Group Conference in Atlanta. The year 2023 marks the 20th anniversary of the implementation of the DSG network.

The DSG network encompasses 398 independent distributors that deliver technical service support in North America, Latin America and the Caribbean.

Independent DSG members serve as the local customer contact for troubleshooting and offer support and training for all Mitsubishi Electric systems sold and installed through the DSG network.

During the two-part conference, METUS leadership thanked DSG network members for their participation. These distributors were also given extensive technical instruction on current and future products in an effort to allow those distributors to deliver faster, quality service support and resolution for HVAC contractors within their local markets. Approximately 225 participants attended the conference.

METUS leadership, including Mark Kuntz, chief executive officer, Constant,

The 2023 Mitsubishi Diamond Service Group.

Brian Derry, manager of Service Programs, and business unit technical service managers, presented the Business Unit DSG Distributor of the Year Award to companies in each business unit. METUS recognized the following individuals and companies for their achievements: • John Zdon and Andrew Berry, Ferguson HVAC, King of Prussia, Pa., Mid-Atlantic Business Unit.

• Ralph Wolf and Al Taylor, Ferguson HVAC, Newport News, Va., Southern Business Unit.

• Dan Murray, Trane U.S. Inc., Willowbrook, Ill., Central Business Unit.

• Justin Sanders, Kyle Sooter, Scott Shipley, Grant Hendrick and Marlin

Koslowsky, Trane U.S. Inc., Lenexa, Kan., Southwest Business Unit.

• Mauro Rodriguez, Trane, S.A. DE C.V., Naucalpan De Juarez, Mexico.

• Ethan Smith, The Gustave A. Larson Company, Salt Lake City, Utah, Western Business Unit.

• Mike Lumia, Andre Correia, Peter Pavlov, Craig Johnson, Tat Yuen, Justin Heinzman, Robert Killion, Dave Carrette, Timothy Williams, and Bryan Warren, Homans Associates, Wilmington, Mass., Northeast Business Unit.

Homans Associates and its team also received the distinction of being the DSG Distributor of the Year Award winner. www. metahvac.com.

OP

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AHR EXPO 2024 | BY STEPHEN YUREK, GINGER SCOGGINS, GREG WALKER, ANDY MCMILLAN, TALBOT GEE

Welcome to a Happy & Hectic New Year in HVACR

T

Chicago’s McCormick Place

Photo 66917646 © Eugene F | Dreamstime.com

he HVACR industry’s main event—the Air Conditioning, Heating and Refrigeration Exposition—will be presented at McCormick Place, Chicago, IL, Jan. 21-24, 2024. You’ll see more products related to electrification and decarbonization and hear lots of talk about new A2L refrigerants that eventually will replace diminishing supplies of HFC refrigerants.

2023 was another year of recovery, as the industry still seeks to regain the vigor it lost during the past three years of COVID panic and over-reaction, which resulted in supply chain issues and a dimished workforce.

AHR commentators say the supply chain is stable, but A2L refrigerants will pose challenges. Heat pumps will be more in demand, and it remains to be seen if the nation’s electric grids can manage increasing loads during peak usage, and perform as promised. The new heat pumps are also a more sophisticated technology. Workforce needs continue, with increased numbers of recruiting and training initiatives, to equip technicians and retain them as employees. The following are comments by industry leaders featured in the AHR 2024 Trend Report. - Terry McIver, editor-in-chief

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Stephen Yurek, president/ CEO, Air Conditioning, Heating and Refrigeration Institute (AHRI).

The global refrigerant transition, led by the United States, is well underway, and will prove to be a seamless transition when all is said and done.

Decarbonization has highlighted our industry as a solution to emission and energy use reductions.

Manufacturing Trends Heat Pumps: AHRI members pioneered the entire realm of heat pump technologies and remains committed to providing heat pumps to all who wish to have them installed in homes and businesses. IAQ: The pandemic placed a spotlight on the importance of indoor air quality, and the fact that AHRI members have the solutions to keep homes, schools, health care facilities, and commercial buildings safe for human occupancy. Supply Chain Projections: Supply chain issues have eased compared to the past few years, although trouble spots remain.

Ginger Scoggins, 2023-2024 president, ASHRAE A Changing Industry: The HVACR industry is undergoing a remarkable transformation driven by technological advancements and a heightened focus on sustainability. As the world grapples with the effects of climate change, the industry has shifted its gaze towards developing innovative solutions that not only provide optimal comfort, but also significantly reduce greenhouse gas emissions.

• Building decarbonization has emerged as a pivotal trend, pushing HVACR professionals to integrate renewable energy sources, such as solar and geothermal systems, into their designs.

• Smart and connected HVACR systems have gained traction, enabling remote monitoring, predictive maintenance, and energy optimization.

• The integration of artificial intelligence and machine learning is revolutionizing system efficiency by analyzing data patterns to make real-time adjustments.

As the urgency of building decarbonization and the impact of climate change continue to drive change, the HVACR industry stands at the forefront of efforts to develop efficient, sustainable built environment solutions.

Decarbonization: ASHRAE had taken a proactive approach to advancing building decarbonization efforts through the development of comprehensive standards and guidance. The ASHRAE Task Force on Building Decarbonization published the “Building Performance Standards: A Technical Resource Guide”, which was developed to provide a technical basis for policymakers, building owners, practitioners and other stakeholders interested in developing and implementing a BPS policy.

G.Stevens AHR

Electrification & Heat Pumps: ASHRAE has actively championed the adoption of electric technologies such as the integration of electric heat pumps, electric boilers and other solutions that not only enhance energy efficiency but align with sustainable practices.

Refrigeration/Regulations: ASHRAE is addressing the greenhouse gas emissions of refrigerants in Standards 15 (Safety Standard for Refrigeration Systems) and 34 (Designation and Safety Classification of Refrigerants). Refrigerant leakage is a huge contributor to greenhouse gas emissions each year and our Task Force for Building Decarbonization is discussing how to address this issue.

Living Healthy & Indoor Air Quality: Evidence linking poorly ventilated buildings to heightened risks of airborne infection transmission and subsequent respiratory and cardiovascular health issues, prompted a thorough reevaluation of existing IAQ standards. ASHRAE released its groundbreaking, highly anticipated publication, Standard 241, Control of Infectious Aerosols.

The standard establishes minimum requirements for control of infectious aerosols to reduce risk of disease transmission in the occupiable space of new, existing, or majorly renovated buildings and includes requirements for outdoor air system and air cleaning systems design, installation, commissioning, operation and maintenance, areas not similarly covered in existing IAQ standards or codes for buildings.

Green Transistion: ASHRAE has released a new standard to measure zero net carbon and energy goals in buildings.

ANSI/ASHRAE Standard 228-2023, Standard Method of Evaluating Zero Net Energy and Zero Net Carbon Building Performance, sets requirements for evaluating whether a building or group of buildings meets a definition of “zero net energy” or a definition of “zero net carbon” during building operation. The standard draws from ASHRAE Standard 105, among others, to address energy and carbon flows across a site boundary, their measurement and their balance.

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Opportunities Ahead: The HVACR industry is on the brink of a compeling era with abundant opportunities for innovation and growth. As buildings become more technologically advanced, the demand for skilled HVACR and built environment professionals who can navigate this evolving landscape will increaes. This creates a prime opportunity for expanded training and education, as well as collaboration to meet the needs of our growing industry.

Greg Walker, president/CEO, Association for Smarter Homes & Buildings (ASHB).

A Changing Industry: The industry is undergoing a profound transformation, combining cutting-edge technology and environmental responsibility. In the short term, smart systems are revolutionizing efficiency and comfort, utilizing data-driven insights for optimal performance. Long term, a shift towards eco-friendly refrigerants and sustainable practices is reshaping the industry’s landscape, prioritizing a greener footprint.

As global awareness of climate change intensifies, the HVACR sector is adapting, spearheading innovation to create a more energy-efficient, interconnected, and environmentally conscious future.

Industry Trends: In the realm of smart buildings, the HVACR industry is abuzz with transformative trends. IoT integration and data analytics optimize energy use, while AI-driven insights enhance system performance. Building automation streamlines operations and a heightened focus on energy efficiency aligns with sustainability goals. Indoor air quality solutions prioritize occupant health, and the shift towards electrification and decarbonization gains momentum.

Demand response programs aid grid stability, and remote monitoring ensures prompt issue resolution. Edge computing boosts real-time control, while sustainability certifications underscore the industry’s commitment to greener practices.

These trends collectively define the dynamic landscape of smart HVACR systems, shaping efficient, intelligent, and eco-conscious buildings.

Industry Impacts: Innovations in smart HVACR systems that integrate IoT, AI, and data analytics hold immense potential.

These systems optimize energy usage, predict maintenance needs, and enhance user comfort. Another impactful innovation is the adoption of eco-friendly refrigerants and heat pump technology, contributing to decarbonization efforts.

Additionally, advancements in indoor air quality solutions, such as advanced filtration and purification technologies, address growing concerns about health and well-being.

Andy McMillan, president/Managing Director, Building Automation and Control Network (BACnet) A Changing Industry: Previously independent building systems had little need to communicate with other systems or the outside

world. Each system used their own communications protocol and did not worry about cybersecurity, as they relied on obscurity for security. That approach is no longer sustainable, so the industry is adapting. Cybersecurity is being designed into building automation systems to support the overall cybersecurity goals of building owners and operators. Every piece of equipment going into a building will soon have to be reviewed for its cybersecurity threat surface and defenses.

Industry Updates: Advanced connectivity and cybersecurity capability is reaching deeper into buildings and systems. With regulations and energy costs increasing, advanced capabilities are finding their ways into even end of line devices as we see manufacturers answer this demand.

Major Shifts: Demand for simple connectivity is waning in favor for more complex connectivity with inherent cybersecurity.

Building Automation is more strongly focused on value.

Predictions: Cybersecurity attacks will become more common and building owners and operators will look to their suppliers to provide solutions.

Challenges: Building Automation struggles with not thinking big enough. A traditional focus on inbuilding equipment slows the adoption of sophisticated integration and cloud solutions.

The past few years have presented the industry many things to worry about. Regardless of whatever the industry focuses on, the need to embrace an expanding, open, scalable, and secure base is paramount. Being able to communicate with multiple manufactures and systems with a common protocol is key.

Talbot Gee, CEO, Heating, Airconditioning & Refrigeration Distributors International After two years of historic residential replacement rates, 2023 and 2024 are the return of a repair market which means the companies with the highest system replacement rates are winning.

Heat pumps continue their gradual growth in overall unitary share and the impacts of the A2L transition will begin being felt by midyear 2024. More HVACR companies are expanding into adjacent verticals and we are seeing more new hires from outside our industry putting a premium on members’ on-boarding and training capabilities Electrification: Definitely a trend, but not an even one as nearly half the country has passed state-wide prohibitions on local gas bans.

Workforce Development: Winning at recruiting, on-boarding, training, and developing new talent without HVACR or wholesale distribution backgrounds.

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AHR EXPO 2024

The A2L transition will continue to make the equipment market and availability hard to forecast and decipher. The companies with cash and capacity win in such times of uncertainty.

boiling down the mountains of information hitting our members into digestible, clear, actionable steps required to do this effectively and efficiently.

Refrigeration & Regulation Updates: The A2L transition is especially complicated for HVACR distributors so our focus is on

Positive Note: We’re already seeing new, more talent attracted to our industry and we want to see that continue and our

AHR 2024 Innovation Award Winners assure healthy air quality conditions, lower operating costs, and increase operating revenue.

Building Automation: The 75F HyperStat Split enables contractors to upgrade RTUs with advanced rooftop control with unprecedented ease. Using only two existing wires from the RTU to the thermostat, HyperStat Split provides dual enthalpy economizer, demand-control ventilation, and VFD control.

Cooling: The DSG compressor from Danfoss has been designed for low pressure refrigerants such as R1234ze with low global warming potential.

Applications include chiller systems, with a wide range of compressor capacities available to support unit design requirements.

Heating: Nextac transforms the PTAC with R32 refrigerant, a twin rotary inverter compressor, heat pump performance to -10°F, integrated ERV, MERV13, zero air leakage, self-cleaning coils, 27 dB(A) operations, STC of 40, sleek, all-metal, paintable cabinet.

Indoor Air Quality: WellStat® is an indoor Air Quality + Energy Management Software platform used by property and facility management teams to responsibly

Plumbing: Rheem Water Heating’s Triton Light Duty is described as the most intelligent high efficiency commercial gas water heater on the market. Available in 50- and 75-gallon models.

Refrigeration: The innovative AirGreen-BMIL brine-based DX refrigerant system essentially creates a low dewpoint “heat pump” for cold room providing less

than 26F dewpoint supply air in a single process step. Because of its simplicity and efficiency, this packaged unit design provides up to 50% energy savings while also significantly reducing capital costs.

Software: SAM (Skill Advisor and Mentor) from Interplay Learning is the first AI-powered advisor for the skilled trades.

SAM gives teams instant and personalized guidance so they can gain skills faster and more efficiently.

Sustainable Solutions: Midea’s Packaged Window Heat Pump is a window-mounted cold climate air source heat pump, designed for DIY installation

and high-performing, energy-efficient heating and cooling. Developed to support multi-family buildings’ transition towards electrification, the Midea PWHP provides a cost-effective solution for buildings looking to quickly meet future sustainability requirements.

Tools & Instruments: FLUE-Mate Combustion Analyzer by INFICON is designed to improve combustion efficiency and safety. This tool is equipped with an integrated manometer, thermometer, CO test, cracked heat exchanger test and provides draft analysis. FLUE-Mate can even generate a QR code that can be scanned with your smart device for a quick analysis report.

Ventilation: The SAV-SmartAirValve

by HVAC Manufacturing and Technology, Inc. is an economical self-commissioning air control solution Featuring a 100-1 turndown and precision airflow accuracy to within a few CFM operating as low .03-in.

W.G. It matches the ventilation rate to the risk of hazard

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members and their customers benefit the most from it.

Q: What are the most pressing issues in HVACR? A: Selling and installing complete systems.

Q: What are the most important discussions your members have on their minds currently?

A: When they will actually receive new A2L systems.

Cindy Sheridan, CEO, PlumbingHeating-Cooling Contractors Association A Changing Industry: I believe the industry as we know it now will be quite different in five years. Change is happening fast for p-h-c businesses, as well as the industry overall. There will likely be consolidations; more d i v e r s i f ic ation of plumbi n g, H VAC and electrical c o m p a n i e s; and more new reg ulations and equipment. As this occurs, trade associations will need to transform to meet members’ needs. A big challenge will be figuring out how to make sure their members pay attention to vital information they share, such as the timing and impact of new regulations affecting p-h-c contractors. No association wants to be asked: “Why didn’t you tell us this was coming?”

Trending Topics: Finding, training and retaining employees is an ongoing challenge. It is difficult for contractors to keep up with and comply with the increasing number of regulations affecting the industry. Rising interest rates and costs seem to be becoming the norm. There still are some supply chain issues, but not as many as before. New technology, including Artificial Intelligence, continues to impact the industry. At a recent PHCC Insurance, Safety & Risk Management Committee meeting, we discussed several contractor issues

identified by Corporate Partner Federated Insurance. They included cybersecurity, driver security, changes in hiring practice, and general training needs.

Decarbonization: Earlier this year, New York became the first state to officially ban natural gas connections in new construction and is following California’s lead in

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phasing out the use of gas and liquid fuel appliances in the next decade. These are policies designed to leverage these states’ market power to force a shift from products using carbon-based fuels to those using heat pump technology. PHCC believes consumers know best how to power their homes and appliances. We support a diverse national energy portfolio that

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AHR EXPO 2024

‘Always be Learning’ 2024 AHR Expo Education Schedule PANEL DISCUSSIONS 2024 State of the Industry Panel: Speakers on this panel include Dominick Guarino, President & CEO of National Comfort Institute, Inc.; Ginger Scoggins, President, ASHRAE; Greg Walker, CEO of ASHB; Steve Yurek,CEO of AHRI; and Talbot Gee, CEO of HARDI. This panel will be moderated by Bryan Orr of HVAC School.

Heat Pumps, Electrification, and the Grid: This presentation will address how best to deploy heat pumps in retrofit projects while addressing two major barriers to electrification; 1. At the building level—how can we electrify w/o requiring costly upgrades to the building’s electrical infrastructure? 2. At the grid level—how do we electrify without stressing the grid by adding load in the peak utility demand periods? Speakers on this panel include Mark Frankel, Chair of ASHRAE’s TFBD Heat Pump Working Group; Jon Heller, President at Ecotope, Inc.; Rand Conger, Johnson Barrow; and Sean Jarvie, Flow Environmental Systems.

AI, Controls and the Future of Technology in HVAC: This session will discuss the current and future roles of controls technology and artificial intelligence as they relate to HVAC and buildings management. Speakers on this panel include Greg Walker, ASHB; Anto Budiardjo, CEO at Padi.io; Chad Langston, ABB; Charles Pelletier, Vice President, Product Management at Distech Controls; Darryl DeAngelis, Ebtron; and Stephen Holicky, Tridium/Honeywell.

Addressing the Workforce Talent Gap through Educational Partnerships: This session will discuss the impact collaboration with an educational institution can have on fostering a robust workforce. As we face an increasingly declining workforce, HVACR professionals can attune to provide supportive efforts to attract and maintain talent. The following topics will be discussed: • Proven strategies to establish partnerships between education and industry that make a significant impact on improving HVACR, as well as hiring

challenges, financial performance, and new hire retention • How to find new talent that operations managers appreciate and are eager to hire • How to build a culture that promotes technician retention G.S tevens AHR and improves financial performance • Understanding the types of partnership and how they make sense for your organization • Realistic expectations and adaptability • How and where to start as a professional or company Speakers on this panel include Scott Shaw, President & CEO at Lincoln Tech; Alison Neuman, North American Workforce Development Program Manager at Johnson Controls; Brian Feilen, Lincoln Tech; Susan English, Senior Vice President of Career Services & Industry Partnerships at Lincoln Tech; and Jose De La Portilla, Senior Manager of Education and Training at Rheem Manufacturing Regional Updates: Refrigerants, Regulation and More: As an addition to the program this year, sessions highlighting trends, refrigerant and regulation updates specific to region, including but not limited to DOE, practices, equipment, as well as current and future projections in the region. Sessions in this series include: South/Southeast—Chris Forth, Vice President Regulatory, Codes & Environmental Affairs, Ducted Systems at Johnson Controls. Southwest—Jennifer Butsch, Director, Regulatory Affairs at Copeland. North/Northeast—James “Jimmy” Abraham, Regulatory Affairs Manager at Bosch.

Attendees are encouraged to explore the full program on ahrexpo.com.

Additional highlights for the 2024 AHR Expo Free Industry Seminar program include: Contractors • Contractor Marketing Do’s and Don’ts 2024

• A2Ls Are Here; What Happened to A3s?

• How Distributors, Contractors & Homeowners Can Prepare for LowGWP Refrigerant Transition • Price Increases, Inflation, the Economy… and What Your Customer Experience Can Do About It Facility Managers/Owners • Exploring HVACR’s Role in Facilities Management • The Future of Home Services: How AI and Diagnostics Can Contribute to Business Success • Key Performance Metrics for Energy and Facility Managers Engineers • Building Tomorrow’s Cooling Workforce: Navigating New Technologies and Challenges • The Future of Home Services: How AI and Diagnostics Can Contribute to Business Success • The Decarbonization Countdown: What’s in Store for Commercial HVAC Systems • ACG Building Systems Commissioning Guideline Overview General • Navigating to a Greener Future: How Decarbonization and Innovation is Leading Our Markets • What You Need to Know—A Closer Look at the Ongoing Implementation of the Inflation Reduction Act Incentives • Redefining Comfort: Decarbonization’s Impact on the HVAC Industry • How Distributors are Maintaining Profitability Despite Regulatory Headwinds

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includes the use of gas and liquid fuel sources for appliances to ensure the quality of life on which Americans rely for their health and comfort The Inflation Reduction Act (IRA) includes a number of incentives for consumers and building owners to disconnect from fossil fuel sources of energy and fully electrify building infrastructure.

The building sector is the second-highest emitter of carbon behind the transportation sector; IRA incentives are designed to shift market demand away from fossil fuel appliances in order to reduce those emissions.

Tax incentives for homeowners include credits up to $2,000 to install qualified equipment and upgrade building envelope such as siding, windows and insulation, and deductions for building owners ranging from $0.50 to $5.00 per square foot for qualified HVAC and building envelope upgrades. Rebates up to $4,000 (based on median household income) are available to homeowners for electric panel upgrades required to fully electrify a residence.

The Department of Energy and the U.S. Treasury have either published or are in the process of publishing guidelines to qualify for the incentives. PHCC’s priority is to ensure contractors are prepared.

Clifton Beck, CSME, Manager DMS, for HVAC Excellence A Changing Industry: The United States Department of Energy in collaboration with industry organizations including HVAC Excellence have embarked on a mission to forge new standards, comprehensive training, and certifications, all intricately tied to the transition into the realm of new-generation heat pump technologies, often denoted as cold climate heat pumps. These next generation heat pumps, using inverter technology, require a different skill set than those who are presenting installing legacy heat pump technologies.

Trending Topics: The significant technological shift in HVACR impacts the entire industry, particularly educators. Their role in facilitating this transformation is crucial.

Workforce Development: HVAC Excellence is working closely with the US Department of Energy and industry stakeholders to establish comprehensive workforce training standards for cold climate heat pumps. This involves updating competencies, certifications, and educational tools to address the impact of decarbonization and electrification.

Refrigeration & Regulation: To provide firsthand information regarding refrigerant regulations within the HVACR industry, the Environmental Protection Agency (EPA) is set to deliver a vital refrigerant update during the HVAC Excellence National HVACR Education Conference. This session will offer direct access to essential insights, specifically focusing on the Significant New Alternatives Policy (SNAP) program and the American Innovation and Manufacturing (AIM) Act.

Jim Barron, executive director, Refrigeration Service Engineers Society (RSES) The current state of HVACR is bittersweet. On the one hand, the technology and innovation in the field is astounding and can only help professionals and end users achieve a shared goal of sustainability and energy efficiency. On the other hand, standard and regulation updates as well as mandated equipment options combined with supply chain issues and a very green group of professionals in the field is a daunting reality many business owners are facing. How can one industry possibly tackle all of these issues at the same time? Sadly, I believe it is going to take some major event failure in any one of these areas in order for everyone to pause and get on the same page again.

I have faith in this industry though, as it is incredibly resilient and is increasingly becoming an absolute necessity in the preservation of our food through the supply chain to our supermarkets and then homes, as well as maintaining comfort cooling and heating for individuals in their homes. RSES is looking forward to being a part of any dialogue that gets the industry working together and doing the right things for the right reasons, whether that is at AHR or beyond. Collaboration and flexibility will be important components to getting this industry back on track again. It is possible with the continued dedication support of all generations.

Most Pressing Issues: Skilled labor/qualified technicians in the field are some of the most pressing issues. In addition, supply chain issues, costs for products, need for products and the lead times to fulfill customer needs/demands will continue to plague the industry.

Upcoming Opportunities: RSES Members stated that there are plenty of growth opportunities within specialized fields in the industry. Another popular response was the continued encouragement of getting new HVACR technicians into the field. There is so much demand that everyone stands to make good money if we are able to close the skills gap a bit. This also generates the need for additional training/certification opportunities.

Challenges Ahead: Some expressed a more negative side to what is taking place, which may be overregulation of an industry that cannot keep up with demand, as it is, both with staff and equipment needs. Some additional individuals also suggested that many end users will not be able to afford new equipment even with government support in tax rebates/credits. Some additionally foresee issues coming up related to the new refrigerants and their compatibility with legacy systems. Additional concerns included the fact that HVACR professionals continue to be faced with an increased sophistication of new systems, coupled with decreased educational programs and some factory indifference about all of it.

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RESIDENTIAL HVAC | BY TERRY MCIVER, EDITOR-IN-CHIEF

HOME-X: Bigger and Better in 2024

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‘My goal is to double and then triple the size of this business over the next 40 years.’

— Brian Alexson

n our December 2023 issue, we shared Part 1 of a look at an advanced technology for remote heating and air conditioning diagnostics: HOME-X Intelligent Diagnostics, powered by ChatGPT and artificial intelligence. HOME-X is the invention of the very successful home services entrepreneur and executive Michael Werner, who is establishing an improved technology-enabled service business network through acquisitions, followed by incorporation of HOME-X technology into those acquired businesses.

The December article shared the story behind the birth of HOME-X, and how Michael Werner went about his mission to provide improved technology to HVAC technicians and a better home service experience for customers.

At this point in time, HOME-X has acquired GEM Plumbing & Heating, Lincoln, RI; Haller Enterprises, Lititz,PA; Universe Home Services, Seaford, NY; and the newest acquisition in December 2023, Weltman Home Services, Berkeley Heights, NJ. For this article, we spoke with Brian Alexson, President of HOME-X, to learn more about the HOME-X acquisition strategy.

While attending college, Brian Alexson started a successful janitorial business that was employing 27 people by the time he graduated. He sold that business to ServiceMaster, and stayed with them for 16 years, in various senior leadership roles with Terminex and TruGreen Lawn Care. That was followed by a position as CEO of a southwest HVAC/ plumbing/electrical business and CEO of the global pest control company Anticimex. A chance conversation with Michael Werner led to Alexson joining the HOME-X team.

Contracting Business: Brian, what does HOME-X look for when seeking to acquire a business?

Brian Alexson: It always boils down to, how good are the people? We are very focused on tech-enabling our businesses, and how we can utilize more technology, but servicing and taking care of customers comes down to people: how good we are in the field, and has the current ownership built a culture of providing an outstanding customer experience? It’s unfortunate, but in today’s economy, we’ve become very accustomed to mediocrity, and when it comes to the consumer experience, we want to change that. Fortunately, the GEM, Haller, Victory,Universe and Weltman brands

have had none of the service-related issues that usually need to be addressed.

CB: That’s because you’re doing your homework.

HOME-X is, however, making some changes related to centralization of each business’s internal processes. Describe that.

BA: Yes, centralization of business processes has been ongoing within the acquired companies. We’ve centralized finance and call centers, and we’re centralizing procurement and marketing, taking all of the day-to-day duties off of them and building a center of excellence in each of those areas to support them, so they can focus on building an outstanding customer experience. That’s our organic growth strategy.

CB: How is the HOME-X business plan progressing after 18 months?

BA: We’ve had a very good 2023. We’re going to grow it organically in the high 20 percentile. Margins are improving, much of which is just from improved operating efficiencies. In 2024, we’re looking at being close to 30 percent growth year-over-year organically, and then obviously acquiring and merging with some companies during 2024.

Jeff Gemma, vice president of procurement is doing a phenomenal job. He has helped us to utilize our size to build purchasing strategies and efficiencies that these smaller acquired businesses would not have had prior to partnering with us. He and his team are negotiating deals on behalf of all our businesses. They’re able to negotiate on a much larger scale than each individual business.

Our outstanding finance team, headed up by our CFO Zach Rips is building out a financial planning and analysis method to help them project out and build better plans and strategies. They look five miles down the road so we can make adjustments prior to hitting any curves. At the close of business each month, a centralized financial team is better equipped to provide better transparency in terms of where we’re doing well, and where we need to make some tweaks on a day-to-day basis, whether it’s to increase our marketing spend in a specific market or shift some staff to handle our backlog faster. All those types of things help you be nimbler during the course of business.

CB: What types of benefits and career paths have opened up for employees in the acquired businesses?

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BA: Our centralized procurement opportunities and human resources processes have helped us build better benefit packages, 401(k) options, the things that create a better quality of life for employees that they might not have been able to have at some of the smaller businesses, or familyowned businesses, because they’ve taken it as far as they can and just don’t have that capability. My goal is to double and then triple the size of this business over the next 40 years, which will create a lot of opportunities that don’t exist today.

As far as leadership opportunities are concerned, Jennifer D’Ambra, our head of operations, came from the GEM business. Kenny Roger, platform president for our Haller business is president there and running the business as well. And there are probably about 30 more opportunities we’ve created career paths for, and significant promotions that wouldn’t have been available to them otherwise. That’s the exciting part, to be able to create opportunities and career paths.

CB: In which regions of the country will HOME-X be concentrating its acquisition activities?

BA: We don’t have a lot of interest in moving outside of the northeast portion of the country. There are great opportunities from New Jersey or even the Mid-Atlantic states moving North. I think we’ve got plenty of opportunity within that market. We currently operate in all of the New England states, New York, Connecticut, New Jersey, Pennsylvania, Rhode Island, so extending beyond will not be necessary for us to grow to the desired level. The key thing for me is that it’s not necessarily about being the biggest business out there. It’s being the best and delivering great career paths for our people, taking good care of our employees while we take good care of our customers and build an outstanding customer experience.

CB: Since the time that I interviewed Michael Werner, HOME-X has acquired Weltman Home Services in Berkeley Heights, NJ. Tell us about the company.

BA: Weltman Home Services is a phenomenal business. Their owner, Dan Weltman was one of the founding members of Nexstar (a leading business building group). Dan is one of the most likable guys you’ll ever meet, and he’s built one heck of

a business. So we’re really please that his business has been our launch into the New Jersey market. Beyond that, I can only say we have roughly 30 businesses that we’re in conversations with.

CB: Are there any closing remarks you’d like to share?

BA: I’d like the market to know, that if anybody is contemplating selling their

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business, Michael has said we take a family approach to family businesses, because this all started as a family business. The Werner family started this, and obviously we’ve grown and will continue to grow. But we never want to display the arrogance of ownership. We want to remain very employee friendly.

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‘THE GREATS’ OF HVAC | BY TERRY MCIVER, EDITOR-IN-CHIEF | ONE OF A SERIES

Leland Smith: An HVAC Champion

M

any of the heating and air conditioning industry’s greatest contractors will tell you they had aspirations of success very early in life, and it was no different for Leland Smith, chairman of the board of Service Champions Group. He ran a paper route at 13, and gave it up at 16 to make after-school deliveries for his father’s small chain of Smith’s Dollar Discount stores.

“I knew I wanted to be a millionaire, but I didn’t know how it would happen,” Smith recalled, in an interview for the Contracting Business 2024 series on “The Greats of HVAC,” part of our year-long celebration of more than 80 years as a leading HVACR publication.

Smith earned a degree in accounting from the University of Kentucky, worked as an accountant for the American Standard Westinghouse Air Brake Company, and about three years later joined his brother Craig to build a plumbing business in Orange County, California. Four uncles on their mother’s side owned plumbing companies, and Craig thought he’d give it a shot.

After a few years of learning on the job, Smith started his own shop, Allied Plumbing, Heating & Air. He sold that business to ARS in 1997, and in 2000

Frank DiMarco, left and Leland Smith Champions Service Group

founded Service Champions Plumbing, Heating & AC. By that time, he was firmly on the path to success he dreamed of as a young boy. The company is now part of Champions Group Holdings, a family of what is currently 21 leading HVAC, plumbing and electrical businesses.

Service Champions is a portfolio company of Odyssey Investment Partners.

Frank DiMarco, himself a recognized and respected figure in the world of home service, joined the team as chief operations officer in 2018, and was named CEO in June, 2022.

Leland Smith originally chose the name Service Champions because that’s what he has always wanted to provide: service that is above and beyond all others.

More Talent for an Excellent Team The 2022 appointment of Frank DiMarco as CEO of Service Champion Group has positioned it for a new chapter of continued and swift growth. He joined Service Champions in 2018 as chief operations officer, with loads of practical experience in home services.

Born and raised in Cleveland, OH, DiMarco grew up in an HVAC family, and with his brother began helping his father in the business at an early age, learning as much as he could about home service excellence.

“Service Champions has been pursuing a multi-dimensional push to further expand in order to serve the rapidly evolving nature of consumer demand,” DiMarco said at the time of his

appointment. “These include strategic acquisitions of leading like businesses throughout the state of California, as well as partnerships in the Southwest and Midwest with acquired companies in Arizona, Colorado, Ohio and Nevada. This is a remarkable time in Service Champions’ history. Leland has been an outstanding and inspirational leader who has grown and strengthened Service Champions’ position as the leading home services company known and loved by customers throughout the United States. I am honored and humbled to succeed him in maintaining our strong commitment to ethics and integrity as we aggressively grow our footprint and continue in the tradition of excellence set forward by Leland,” said DiMarco.

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In addition to their ambition, the “greats” of HVAC will also tell you they discovered very early on the value of a peer group for ironing out the wrinkles in the fabric of a business; the masters who came before and made the mistakes, learned the lessons, and reaped the profits. Leland Smith learned much of what he knows as a member of Contractor Success Group, founded by Jim Abrams, a living legend responsible for many HVAC industry “firsts”. CSG would later become AirTime 500, and is now CertainPath.

“There were three key things I learned from Jim Abrams,” Smith said: “Take care of your employees, treat them better than anybody else and they’ll stay with you; be the highest priced company in the market; and deliver quality work without cutting corners to make it easier and cheaper. The cheapest guys are never the largest. We always have been and today we still are the most expensive heating and air conditioning company in Orange County,” he said, and added that there’s not much price push-back from customers.

“Out of 100 customers, one or two might complain, but if you hire the right people, treat them well, and do quality work, 98 percent of your customers will not complain about the price. They’ll only complain when you don’t do something right.”

“When I started in March 2000, I had one sales guy who is still with me today, a cousin, two others to install and two techs.

We grew so much over those 19 years, from zero to $50 million, and a 25 percent profit margin. I just stuck with what Jim Abrams taught me. I’m not that smart, but I listen really well,” Smith joked.

Leland Smith is successful because he combines business acumen and market sense with an understanding of the importance of having great people by your side to help design and follow best practices that keep customers and employees happy.

“I’ve always had a group of people from five or six companies that I would meet at the Airtime 500 meetings, and whoever they said was doing the best, I’d find them at coffee breaks and at lunch, and then I’d try to take them out to dinner, and I’d pay for everything. I couldn’t afford it, but I

would pay for it to get them to come to dinner. And then, in a couple weeks, I’d ask to visit their business and stay a day or two, just to learn. Then I’d go back home and put to work what I learned there.”

Among Smith’s best friends was Kevin Comerford, still a successful HVAC businessman and also a consultant with Wrench Group. “Kevin would always have a group of six people to stay in touch with, and if we were at $5 million or $10 million, we wanted to hang around with owners of the $20, $40 and $50 million businesses,” Smith shared.

“When we sold our businesses in 2019, Kevin and I both were at about $45 or $50 million, but our “family” as we called them, was at $80, $90, $100 or $120 million, and we always wanted people who were bigger and better to tell us the mistakes they went through to get to $50 and $100 million. It

’We have clean-cut guys who we’ve trained ourselves, and if you’re not happy I’m going to give you your money back. It’s that simple’ —Leland Smith works constantly for us. The key is that you surround yourself with people that are better than you. We all shared our financials as well. If anyone didn’t want to share financials, we didn’t want them in the group.”

Value for the Price Service Champions doesn’t just slap a random high price on an HVAC installation; there’s definitely value there. For one thing, they replace all linesets for each new installation, and there is not an inch of corner cutting.

“We replace everything 100 percent every time and do it right the first time.

We also had a “Happy Money” promise, which said if you’re not happy, you don’t have to pay for it. Most of the time I would tell the unhappy customer to ‘pay me what you think is fair.’” Only one paid nothing, and Smith honored the pledge. He then went back to the customer to learn why he wasn’t happy.

“We’re totally into making the customer 100 percent happy. If you do great work and you treat customers right, you’ll make a lot of money. One of our sayings is, ‘what we do is easy, it’s just easier not to. Our tuneups take a good hour-and-a-half to do them the right way.”

Smith has always believed in the importance of in-house training of new technicians—the training lasts 14 weeks—and that those techs have genuinely pleasant personalities.

“I would be the last one to interview new candidates, with our general manager and service manager, and I was looking for eye contact, how he came across, and would my wife buy from him.

You can teach anybody the technical, but you can’t teach personality,” Smith insisted.

“Some people think the higher priced guys are ripping off the customers. We’re doing just the opposite. We make sure quality is there all the time. We have clean-cut guys who we’ve trained ourselves, and if you’re not happy I’m going to give you your money back. It’s that simple. And our reputation is phenomenal, I believe.”

Smith’s door is always open to those who want to observe the company in action and seek advice.

“I could help anybody run a better company if they just ask. I tell people all the time, ‘just call me. I’ll talk to you.’

In the meantime, he urged contracting business owners to focus on creating a family atmosphere, get involved in a contractor support group, and find people to talk to who are bigger and better than you.

“Bring out a bottle of wine, ask a question, and shut up and listen to what they’re telling you. Take notes, and then go back to your shop and do it.”

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WHAT’S NEW, WHAT’S NEXT? | BY KAREN MEYERS & RANDY ROBERTS

Exclusive to Contracting Business

Supporting HVACR Contractors in a Time of Great Change

This month we begin a special section for 2024—What’s New, What’s Next?—in response to the range and intensity of current developments in the heating, air conditioning, ventilation and refrigeration industries. We are asking select HVACR equipment manufacturers to provide commentary on their roles in helping contractors through the myriad changes now at work in HVACR. —ed.

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Karen Meyers with ACCA CEO Barton James at the recent dedication of a new Rheem training facility in Ft. Atkins, AR. Terry McIver

Randy Roberts Terry McIver

n 2025, the Environmental Protection Agency (EPA) will set a maximum global warming potential (GWP) limit of 700 for air conditioning. This means lower GWP refrigerants with an A2L ASHRAE classification, will replace the once-standard R-410A equipment.

With just under a year left until these industry-wide changes take effect, HVAC manufacturers are working diligently to develop products and provide training for their customers, but many are confident that contractors are more prepared than they may think.

Although the emphasis on preparedness as it relates to A2L is often placed on contractors, much of the responsibility for ensuring the industry is well-equipped lies on the shoulders of manufacturers. While A2L refrigerants requires updates to standards and building codes to allow for safe installation, the good news is that the updates are completed, and most contractors will not see any changes in their day-to-day work. Despite being regulated by the EPA, contractors will not require additional certifications to work with A2Ls. Those who already hold an EPA Section 608 certification will be grandfathered in—no exam necessary. Manufacturers, however, are responsible for developing products that meet new efficiency standards, closely monitoring state regulations, and training customers to safely use and install products.

Contractors may still feel hesitant about working with A2Ls, but this sentiment is often a result of misinformation about the flammability of these refrigerants.

Although A2Ls are classified as mildly flammable by ASHRAE, they have a lower flammability rating compared to A3 refrigerants such as hydrocarbons, propane, and isobutane. They also have a lower toxicity rating than B series refrigerants such as ammonia. In fact, A2L refrigerants are considered the second safest

class of refrigerants. It is extremely important that A2L refrigerants are only used in equipment designed for A2L refrigerants. They cannot be used in existing A1 systems under any circumstance. Fortunately, manufacturers have been hard at work developing products contractors will need to meet new efficiency standards.

At Rheem®, we actively engage regulators, code officials and standards organizations to ensure safety and predictability in the market. We also made significant investments, launching all new products in 2023 to better prepare our product line for new regulations and new technology. These advanced technology improvements include our ENERGY STAR® certified (up to 20 SEER2 / 12.5 EER2 / 8.5 HSPF2) Endeavor™ Line Prestige® Series iM Heat Pump (RP18AZ), which offers one of the highest efficiencies available today.

Additionally, the unit qualifies for substantial tax credits and rebates (i.e., IRA Energy Efficient Home Improvement {25C} Tax Credit and High Efficiency Electric Home Rebate Program).

In preparation for Rheem’s launch of A2L-compliant products in 2024, Rheem is leading the training of contractors and distributors to help manage the transition with live and virtual sessions on A2L refrigerants and the products that use them.

As we approach a future marked by decarbonization, we are optimistic about the resiliency of the industry adapting to regulations, while embracing innovations that lead us toward a more sustainable HVAC landscape.

With advancements in technology and more awareness of sustainable products and practices, it’s becoming easier for homeowners and businesses to be environmentally proactive. As our industry works toward the next wave of change, it is truly inspiring to see the entire channel, including distributors, contractors and manufacturers working together to ensure we are all equipped to make this transition as smooth as possible.

Karen Meyers is vice president, government affairs and Randy Roberts is vice president, residential business at Rheem.

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2304CB

Energy Sector News

ENERGY Delivering the latest trends and expert analysis to professionals responsible for innovation and growth strategies.

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markets.endeavorbusinessmedia.com/market-moves-newsletters

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COMMERCIAL HVAC | BY TERRY MCIVER

Viewpoints on Preventive Maintenance

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Photo 179458189 © David Spates | Dreamstime.com

ust as is true with residential contracting, commercial HVAC has a need for planned (or preventive) maintenance. Applied correctly, PMs help customers avoid major repairs, keep your team alert and always learning, and cement your reputation as a dependable provider with foresight.

We spoke with experts from three leading commercial HVAC businesses: Kahn Mechanical, Dallas, TX; Cox-Powell, Williamsburg, VA; and Temperature, Inc., Memphis, TN. Contracting Business: What types of planned maintenance programs does your company provide?

Brittany Stultz, director of maintenance, Kahn Mechanical: “Our first offering is regular routine maintenance, which can be quarterly, bi-annually, or monthly. Those consist only of maintenance visits. We also offer a labor and parts warranty, excluding refrigerants and that would also include the quarterly, bimonthly

or biannual maintenance. We follow a process, and at a high level, our approach is to serve the client through evaluation, review and execution. The evaluation helps us understand the situation the best we can and see how we can help the client. Next, we’ll review and discuss our recommendations, and how they are in the client’s best interests, and any customizing. In the execution stage, we’ll perform the PM cycle, typically quarterly. Throughout that cycle there will be recommendations.”

Joe English, sales coach/leader, Kahn Mechanical: “We refer to PM as ‘planned maintenance’, because it is both scheduled and preventive. As Brittany explained, the execution component is predominantly done quarterly, and at each quarter it could involve different procedures. Filters are replaced quarterly, but for a chiller, that would be closer to semi-annual replacement. There are different tasks related to different equipment at different intervals, but those all must be well-communicated and scheduled based on availability of the facilities managers and our field technicians. That’s why we think of it as planned maintenance; a significant amount of planning goes into performing the service.

Paul Thurston, president, Cox-Powell: “We offer 50 percent service and maintenance and 50 percent special projects/service and maintenance, system installations, and Design/ Build service and maintenance. We have a new business development team that reaches out to the prospects we’d like to work for. During a discussion, we describe the different types of programs we offer. We value maintenance agreements because they lead to replacement opportunities.

“We customize maintenance depending on customers needs, and in most cases, the customers we call on, like Anheuser-Busch brewery or Phillip Morris, recognize the value of service and maintenance in preventing unplanned breakdowns.

“If we’re doing business with a new customer and we’ve gone through service and maintenance, our first opportunity might be a small project. If we are doing a proposal to replace a piece of equipment and we’re not doing business with that customer, we will say we will maintain that piece of equipment in our proposal stage on an annual basis. If we’re bidding against another contractor that is entrenched

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in that facility they may say they will have the existing in-house contractor handle it.”

CB: Do you find building owners and managers are more open to planned maintenance?

Paul Thurston, Cox-Powell: “Most of the people we call on understand they need to have maintenance for HVAC equipment, which is the largest energy user in the building.

CB: Do you offer different levels of PM programs?

Paul Thurston: Our full-service plan is priced about three to four times higher than a normal PM, but it gives them an idea of what they can budget on an annual basis for their air conditioning. If they go with a full service program we also give them a very defined list of what is and is not included. For example, If refrigeration piping starts to leak because a lawn service employee cut a line it with lawn care equipment, that is not covered.

“If we’re servicing a chiller with six scroll compressors, or one that has a 200-ton screw compressor, if we have to replace the screw compressor that might be worth $30,000 or $40,000 dollars compared to a few thousand dollars for one scroll compressor.

We offer clients with the larger machines an insurance policy with a deductible. That gives them a sense of relief since they can budget repairs on an annual basis.”

Derren Saucier, senior vice president, service, Temperature, Inc.: “Yes, we’ll offer anything as basic as a filter service up to a full-coverage maintenance plan. The most basic beyond just a filter service is a basic PM service, which is a quarterly inspection and report on the findings. We also offer a labor contracts, in which we give them a monthly budgeted amount to cover labor for everything that is related to maintenance: inspections, repairs, emergency service, all the way up to full-service coverage, where we cover parts and material for a monthly bill that covers their HVAC cost, no matter what is might be. Temperature, Inc. manages many medical facilities, industrial, manufacturing and production, as well as institutional, schools, and churches. Our largest market is in large-scale commercial office spaces.”

CB: Did COVID cause customers to feel a greater sense of urgency about preventive maintenance?

Brittany Stultz: “It did, especially when we were deep in COVID, when things were shut down. We had clients that wanted filters with higher MERV ratings for their buildings, and clients that wanted us to replace filters monthly rather than quarterly.

It’s not requested as much now, but some are still implementing changes because of COVID.” Joe English: “We also offered the Decon7 cleaning protocol (from the National Air Duct Cleaning Association). We’re not necessarily doing much of that now but it is still offered. (ed. note: Decon7 produces a proprietary EPA registered disinfectant, sanitizer, cleaner and deodorizer for HVAC and ductwork systems. The product kills viruses, bacteria and mold. D7 has the highest rating awarded by the EPA. The company also keeps handy ASHRAE Standard 180 - 2018, which focuses on the inspection and maintenance of commercial buildings as a whole. It sets minimum requirements and standards for achieving acceptable thermal comfort, energy efficiency and indoor air quality.)

Derren Saucier: “The biggest change since COVID has been on the filtration side. It wasn’t a broad spectrum request, but many

wanted to upgrade their filtration. The industry also upgraded after that and now MERV-10 is the standard. We have facilities that went to MERV-13 and higher. Some are at 95% filtration on air handlers. That was the biggest change.”

CB: Taking COVID out of the picture, do clients have a greater awareness of the importance of indoor air quality?

Joe English: “More customers have three things that are driving them to do more preventive maintenance. One is that more organizations are what I would describe as culturally-driven, because they care more about their people, and want to provide a healthy workplace for them. and at a time of low unemployment, if you want to get talent, you have to provide a good working environment.

“Second, businesses across all marketplaces, sectors and industries are much more data-driven, and there is a lot of data that tells us that people work better in a healthy, happy, comfortable work environment. And so, while being culturally cognizant is much more altruistic, wanting higher performance from your team by providing a better working environment is self-serving to the business at the same time.”

“Lastly, anytime you have mechanical systems in place, you should take care of them. Businesses realize that from a data perspective, they will find issues before they become problems and [have the service provider] take care of them.”

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JANUARY 2024 | CONTRACTING BUSINESS | 35

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CELEBRATING 80 YEARS | BY TERRY MCIVER

Before AC, Refrigeration Was King

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eginning with this January issue, Contracting Business begins its year-long celebration of an 80+-year legacy as a leading publication serving the heating, ventilation, air conditioning and refrigeration industries.

Many dedicated and knowledgeable individuals have gone before those whose names now appear on the masthead, starting with the editors who rolled those first blank pages into their Royal typewriters and a sales team that called on the leading manufacturers of the day. And we also must recognize those manufacturers, inventors and others who took the concepts of refrigeration and brought them to the food markets and warehouses of the day, key players in a growing commercial refrigeration industry.

This first article will set the stage for what you’ll see in the coming months. We will recall our earliest days as a leading refrigeration publication and chronicle what came later, as commercial and residential air conditioning and gas heating expanded across the land.

1945: The precursor to Contracting Business was The Refrigeration Industry (left), devoted to commercial refrigeration applications. It was first published out of Cleveland, Ohio, and owned by Refrigeration Publications, Inc. Penton would purchase it later on down the road. The staff consisted of: Editor T.T. Quinn, Art Director James B. Henderson and Arthur Bouhall. Irving B. Hexter was president. Lester P. Aurbach served as vice president.

Just as service has become essential in heating and cooling, service was an essential part of refrigeration, for both servicing contractors and their customers. This article at right on the service business of Koolaire Refrigeration, St. Paul, Minn. shows the types of systems that were often in need of maintenance in the 1940s. Shown in the photo at right, workmen inspect a beverage cooler, and an ice cream cabinet is being tested after repair.

“We are already well-established as a servicing business,” said Koolaire manager E.H. Colestock.

“From this basis and on the reputation we’ve made in it, we’re going to build our postwar merchandising business. Our lines are out and already we’ve made some contacts that will bring some top-rank lines into our selling setup.”

Businesses everywhere had to alter their strategies due to World War II. This company had to take on machine shop operations and welding, as those tradesmen were concentrating on wartime service for military needs. Koolaire’s postwar plans were to include sales and installations of home air conditioning systems, “which Mr. Colestock believes will eventually be a big field for the firm. He believes air

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conditioning will be included with home heating as a part of many builders’ contracts.”

Ansul Chemical Company, Marinette, Wisc., was a leading refrigerant producer and agent for Freon 11, Freon-12 and Freon-22. It brought a patriotic spirit to bear on a series of ads that championed America’s success against the Empire of Japan and “Yankee Ingenuity” related to using refrigerants like liquid sulfur dioxide and Ansul Liquid Methyl Chloride (photo at left).

In 1945, Copeland had already been a leading compressor manufacturer for 25 years, and the need for dependable compressor technology continued to expand. At right is an ad for the Coplametic electric compressor.

Located in Sydney Ohio as it still is today.

The refrigeration technician was held in high regard: “On call, the refrigeration service engineer performs his task, oftimes

while the city sleeps.

Thousands of dollars he has saved retailers, countless thousands of pounds of precious food he has prevented from spoiling,” reads the ad at right, for Automatic Products Company’s A-P DEPENDABLE Refrigeration Controls.

Coming in our retrospective through 2024: Commercial air conditioning arrives and service opportunities come with it.

Brand loyalty and the ARI show, precursor to the AHR Expo. Our name is changed to Air Conditioning & Refrigeration Business and our columnists are prized advisors: Doc Rusk, Jon Pierce, Ron Smith and more. Design/Build gets noticed, and Contractors of the Year.

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GUEST EDITORIAL

Get Addicted to Winning

N Danielle Putnam President of The New Flat Rate and a past president of Women in HVACR. thenewflatrate.com

o, you can’t do it!

This was my personal trainer’s response to my question last January, “Can I lose 15 pounds by March?” She was so confident in her ‘No, it can’t be done’ comment that I couldn’t help but ask, why?

“Because, I know you, you eat too much cake,” was her conclusive answer. She seemed to know that I wasn’t ready to accept where I was and take the necessary steps to make that kind of change.

Who in your business knows you well enough to give an honest answer about your goals? Perhaps your service manager, business partner or spouse?

Who watches you fumble over setting goals each year, only to miss them in the end?

Did you win in 2023? If you soared past your goals and swam in profits you’re either the top 10% or a liar. With the majority of home service companies reporting a significant loss, as much as 15-30%, it proved to be a less than favorable year.

So, what do we do about it?

As my trainer predicted, the months rolled past and I did not lose 15 pounds by March. I didn’t even lose an ounce because I hadn’t accepted the truth of my situation.

I sat in my failure through April, May, June…and then July came.

The Power of Acceptance In July, I don’t know why, but I started to change.

The voice of Ted Miller III rang in my ear, “Step 3 in creating lasting change, is acceptance.” I’d heard it a thousand times before, but out of his 7-step process, he repeated, “You can’t hit your goals and create lasting change, you can’t get to step 7, until you’ve mastered step 3.”

Reluctantly, I stepped on the scale and looked at the truth. I wanted to fudge the number like I’d

done so many times before. Does it have to be the exact pound? Do we have to be totally honest about our cashflow, our overhead, our spending habits?

Acceptance says we do.

I grabbed a permanent marker and wrote the date on my bathroom mirror then hesitantly, I wrote the exact truth. I accepted my weight on that day and wrote it on the mirror for everyone in my household to see.

I told no one of my grand plans to lose weight.

Instead, I took baby steps and attempted to lose 1 pound every week. I strived only for continual improvement, one step at a time.

Every Monday at noon, I weighed myself and wrote the new weight on the mirror. Soon, losing a pound a week not only became easy, but it also became addictive. The dopamine, that feel-good chemical in our brains, continued to release, and I was winning.

Year after year, why do we look at the history of revenue and proclaim to our teams, our families, and the world that we’re going to grow our businesses by 10-20%? We say it’s going to be the best year ever, only to feel like a failure at the end of the first quarter when we’re not on track.

Instead, why not accept the reality of where you are today?

Make the numbers visible so your team knows where they stand - example, daily truck volume, average service tickets, etc. Identify where you are today and then manage the activities that it takes to get the outcome you want. Step by step, you could watch the average ticket go from $268 to $280. Then enjoy the dopamine as your culture begins to shift into a culture of winning.

A culture of winning celebrates small accomplishments. It may start one pound at a time, then 17 pounds later you’re on your way to big success.

2024: Buckle Up!

Colleen Keyworth Director of marketing, Online-Access; board member, International Network of Women in Cooling. hvacwebsites.com

H

eading into 2024, let’s talk about where we’re at in the HVAC industry. We’ve had a pretty wild ride with growth since 2020, but now it’s time to buckle up and face what’s coming.

We’re facing inflation, a potential recession, and an unprecedented wage spiral that we haven’t seen since the 1970s. Even with that, growth is still on the table, but we can’t just bank on the economy or

the weather to keep things rolling. Here’s my take on what’s happening and some down-to-earth advice for your business as you gear up for the coming year.

The Big Picture Right Now You’ve heard it often: 75% of the dough in contracting is made by just 20% of the companies. That’s even more the case after all the merging and buying

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that’s been happening. But here’s the twist: the other 80% of businesses are still doing 25% of the work. And with the big consolidation wave slowing down and some former owners’ non-competes running out, we’ll see more seasoned pros jumping back into the game. They’re not just hanging up their tools; they’re returning with more experience, better connections, and much more capital.

What’s up with Smaller Contractors?

Since September, I’ve had several calls from contractors sweating over making their phones ring, reminiscing about the better days of last year. Many of the smaller guys don’t realize how much of their business during the busy season actually spills over from the big brands. We can’t forget how much our business swings with the weather. The real winners are the ones who grabbed those chances and turned one-off jobs into lifelong customers.

How Do We Keep Up with What’s Coming?

Mix It Up with Your Services: Don’t put all your eggs in one basket. Think about diversifying—maybe get into energy-saving advice, smart HVAC setups, or just regular maintenance gigs.

It’s all about having more ways to bring in the cash and keeping things steady.

Make Those Customers Stick: Turn a quick fix into a forever friendship. Stellar service, regular check-ins, and maybe a friendly

newsletter or special deals can keep customers connected.

Tech It Up: Staying ahead of the curve with the latest gadgets and software can make a huge difference. Whether it’s the newest eco-friendly technology or a cutting-edge CRM or sales system, gaining efficiency keeps you in the game.

Train to Gain: Keep your crew sharp and up-to-date. The better they are, the better your service, and that means happier, more loyal customers.

Get the Word Out: Smart marketing can get you new faces and keep the old ones around. Hit up social media, local events, or invest in strengthening your brand.

Money Matters: Keep a tight ship with your finances. Price well, plan well, invest wisely, and have something for a rainy day.

Network Like a Boss: Chatting up with other contractors, suppliers, and experts can open doors you didn’t know existed.

Partnerships, tips, and tricks—it’s all out there. You don’t have to go it alone.

As we step into 2024: It’s all about being smart, adaptable, and ready for whatever comes next. Diversify, build relationships, embrace change, train your team, market well, manage your finances, and network. Do this right, and you’ll set yourself up for success, no matter how the market swings. Be intentional, don’t get too comfortable, and let’s make it a great year!

—All the best, Colleen

Advertiser

SALES CONTACTS South & West: Senior Manager, Business Development Randy Jeter 512/263-7280 Cell: 512/426-9145; Fax: 913/514-6628 rjeter@endeavorb2b.com East Coast: Senior Manager, Business Development Brian Sack Cell: 732/629-1949; bsack@endeavorb2b.com Account Manager Midwest Bill Boyadjis 973-829-0648 • bboyadjis@endeavorb2b.com Classifieds/inside sales: Media Account Executive Steve Suarez Cell: 816-588-7372 Office: 941-259-0867 ssuarez@endeavorb2b.com Director of Sales, Buildings & Construction Group Joe Agron 941-200-4778 • jagron@endeavorb2b.com

Page

Air Conditioning Contractors of America acca.org/acca2024

1

Amana/Daikin Comfort Technologies www.amana-hac.com

3

Cintas cintas.com/contractingbus

9

Evergreen Telemetry www.evergreentelemetry.com

35

Goodman/Daikin Comfort Technologies www.goodmanmfg.com

BC

Greenheck www.greenheck.com

29, 37

Heatcraft intelligencontrols.com

5

Liberty Pumps libertypumps.com

7, 37

Little Giant littlegiant.com

25

Progressive Insurance progressivecommercial.com

IBC

Ritchie Engineering yellowjacket.com/product/combustion-analyzer

IFC

Shortridge Instruments, Inc www.shortridge.com supplyhouse.com Supplyhouse.com The Best Postcards www.thebestpostcards.com

14, 15 23 insert

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THE RANT BY MATT MICHEL

Strategies for Avoiding BURNOUT

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unning a contracting business is hard. It’s even harder when facing a contraction, which we are seeing in the replacement market due to the shipment cliff that reflects when the industry contracting 40% from 2005 to 2010. Burnout, always a risk, becomes greater in the current contracting environment. Here are seven ways to fight it.

‘Always have something new that you are investigating.’

1. Keep The End in Mind Remember why you got in business. You had an end goal, even if it was not clearly defined. You started a company because you wanted more than just a paycheck. What was that dream? Was it to build a business that leads the industry in your community? Was it to be the company that does HVAC a certain way that’s superior to the competition?

Was it to support a desired lifestyle for yourself and your family? Was it to build a business, sell it, and become wealthy?

Refocus on the end goal. Write it out. Find pictures from the Internet that represent it and tape them somewhere visible. The end result can be a powerful motivator. Keep the end in mind.

2. Compartmentalize While running a business seems like a 24/7/365 activity, it does not need to be. You need time away from the onslaught of problems, from your employees, and from your customers. Set a time when you will not let the problems of the company intrude on the rest of your life. During those hours, typically evening hours, do not talk about work and do not focus on the business. Focus on your family, on your significant other, on your kids, and on your hobbies. The business problems will still be there in the morning.

3. Investigate Something New Always have something new that you are investigating. Find something to get excited about. It could be a new IAQ product, new field service management (FSM) software, a new truck wrap, connected home products, new refrigerants, and so on. Looking at something new is invigorating and exciting. Even if it turns out to be a dead in, you are in the pursuit of positive change, which runs counter to burnout.

4. Sharpen Your Saw Stephen Covey, author of “The 7 Habits of Highly Effective People” says we need to “sharpen our saw.”

This refers to a contest between woodcutters where the losing woodcutter worked right through the contest, sure his extra effort would pay off. The winner would stop periodically and sharpen his saw so he was much more effective. Sharpen your saw. Take a vacation, even it is a long weekend. Do something completely unrelated to HVAC. You will come back charged up.

5. Delegate Every business owner has tasks he hates. If at all possible, do not do them. Delegate them to someone else. If there is no one to delegate them to, hire someone. You are the boss. Within limits, you can choose what you work on and what you assign to other people. Getting rid of the distasteful tasks reduces the potential becoming overwhelmed and for burnout.

6. Read Inspirational Business Stories Read or listen to audiobooks about successful businesspeople. Hearing their stories is inspirational.

Sometimes you hear how they struggled more than you struggle, but persevered. If they can do it, so can you. Other times, their stores give you ideas for improving your business or personal situation. With the wealth of podcasts available today, these do not even need to cost money or take added time. Download or stream the podcasts when you are driving. A recommended podcast that focuses on the service trades is David Heimer’s “Profiles In Prosperity” with interviews of successful contractors. Download it at ProfilesInProsperity.com.

7. Join a Support Group It always helps to bend someone’s ear about your problems. Often, others will help you put things in perspective, which you need if you are approaching burnout status. Support groups could be a business alliance, your local trade association chapter, a service or civic club, a leads club, or any other group with business owners.

For help on burnout and other HVAC business issues, check out the Service Roundtable. Visit www.

ServiceRoundtable.com.

Matt Michel is a member of the Contracting Business Hall of Fame. You can reach him at mmichel@mail.com or 214.995.8889.

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