Contracting Business - July 2024

Samsung, Lennox Partner for Ductless Sales, Page 10

JULY 2024 contractingbusiness.com

HELPING HVACR MANAGERS RUN BETTER BUSINESSES SINCE 1944

Building Controls Leaders Diverse controls projects by Alliance Air, Delta Controls, Harris and Trane.

PAGE 14

ALSO IN THIS ISSUE:

22 Manuals J & S Reminders 24 ‘Sector Controls’ are Coming 28 Add-ons Bring Profits

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Smart. Simple. Trusted.

Explorer Mini Explorer IAQ ColorTouch

Innovative thermostats that raise the bar for connected features and value.

• Professional, contractor grade • Reliable, feature rich, and better value • Residential, Commercial, and • Free Skyport Mobile App controls School models comfort from virtually anywhere • Easy to install, simple to program • Advanced geofencing, reporting, and alerts • Can help reduce energy costs

Residential

Commercial

School

To find a distributor near you, visit venstar.com.

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WE WORKED

SMARTER AND HARDER N E X T - L E V E L

C O M F O R T

The Innovative Rheem® Endeavor® Line Designing the Endeavor Line with higher efficiency—resulting in more ENERGY STAR® qualified models—while keeping its form factor small was hard work. And packing it with so much state-of-the-art intelligence—like Bluetooth® setup and diagnostics, multi-stage modulation, and DSI ignition systems—was challenging, too. But all that hard work made it the easy choice for you—and the smart choice for your customers.

Learn more at Rheem.com/Endeavor

The Bluetooth® word mark and logos are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks

by Rheem is under license. Other trademarks and trade names are those of their respective owners.

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JULY 2024 | VOLUME 81, NUMBER 7

COLUMNISTS

COVER STORY

5 First Word | Terry McIver

14 Building Controls Leaders

We offer brief descriptions of impressive building controls projects.

28 CB Influencers | Aaron Husak 32 The Rant | Matt Michel

7 ON THE COVER: Hall Park, Frisco, TX: 2.2 million sq. ft of office, residential and amenties spaces.

Cover: 98329855 © Wenling01 | Dreamstime.com; above: 98329641 © Wenling01 | Dreamstime.com

CONTRACTOR PROFILE

12 Elevating Standards

DEPARTMENTS

4 What’s New Online 6 From the Field 7 Products

Balance HVAC is a newer HVAC company seeking to elevate the standards of the HVAC industry in and around Vero Beach, FL.

BUSINESS MANAGEMENT

10 Manufacturer News 30 Ad Index

18 Proper Procedures Matter

10

KPI tracking, communication and delegating are service business essentials.

WHAT’S NEW? WHAT’S NEXT?

20 Charting a Course for Change

Doug Widenmann provides an update on major developments by Daikin as it meets the challenges related to efficiency and refrigerant.

HVAC SERVICE

22 Performing ACCA Manuals J & S Calcs Correctly

Why are contractors not taking Manual J seriously? Unfortunately, many think ‘nobody is going to notice.’

REFRIGERATION SERVICE TODAY

24 Aligning Refrigerants

with AIM Act ‘Sector Controls’ 25 Minimize HVAC System Downtime with Condition-Based Monitoring

Connect with us: contractingbusiness.com @contractingbiz

25

https://www.facebook.com/CBMag https://bit.ly/CBonLinkedin

2 | CONTRACTING BUSINESS | JULY 2024

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contractingbusiness.com New DIGITAL CONTENT

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Issue Highlights CB Editor 'Reunion'

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Present, Propose, Close

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News @ Press Time

Daikin Plans for One Million Heat Pumps in California

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LG Opens a New Academy, Manages Global Training

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Accreditation for Palm Beach State College

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HVAC INTELLIGENCE eNEWSLETTER The Domino Effect of Static Pressure Testing, by Rob Minnick: The role of accurate pressure assessments in system performance.

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VP/Market Leader—Buildings & Construction, Mike Hellman Group Editorial Director Buildings & Construction, Mike Eby Editor-In-Chief, Terry McIver, tmciver@endeavorb2b.com Art Director, Julie Whitty Production Manager, Sam Schulenberg Ad Services Manager, Deanna O’Byrne

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CEO, Chris Ferrell President, June Griffin COO, Patrick Rains CRO, Paul Andrews Chief Digital Officer, Jacquie Niemiec Chief Administrative and Legal Officer, Tracy Kane EVP, Design & Engineering and Buildings, Lighting & Digital Infrastructure Group, Tracy Smith Contracting Business (USPS Permit 010-480, ISSN 0279-4071 print, ISSN 2771-652X online) is published monthly by Endeavor Business Media, LLC, 201 N. Main St., 5th Floor, 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.

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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 | JULY 2024

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FIRST WORD BY TERRY MCIVER, EDITOR-IN-CHIEF

Pictured here are the recipients of Air Conditioning Contractors of America’s 1981 ‘Spirit of Independence’ Awards, recognizing ‘Independent Contractors Working for Independence.’ Bottom row, l to r: Harvey Hottel, Jon Pierce, Maurice Jacobson, Thomas Lewis, Fred Sikyta. Back Row l to r: Warren Farr, Robert Heisler, Howard Shaefer, Herbert Tanis, Charles King, Anthony Erbetta, Watler McCarty and Robert Savage.

ACCA

Months and Years of Advice

T

he 1980s were years of profound tech expansions that would benefit HVAC companies.

Three examples are the MS-DOS operating system the IBM PC Convertible computer, and large but promising mobile phones, first available in 1984.

The HVAC world was also hot, as leading residential contracting business owners were taking advantage of HVAC’s continual popularity and expansion that was not without its own business challenges, such as a recession and high interest rates. In 1984, Contracting Business published New Directions in the Residential Marketplace, based on discussions between eight leading contractors.

Then-CB Publisher Jim McDermott began the session: “One of the most striking differences ...is an increased degree of professionalism in contracting firms,” McDermott said. “We see a much stronger image of contractors emerging in their communities, one of an expert on energy, a professional.”

Ron Smith: “An air conditioning contractor’s success in the future will be determined by his skills in developing a service business...once you make the decision to go into service and you get everything in place and make all the considerations, it’s simply a matter of maintaining the program.

It’s not that complicated.”

Frank Mutz: “Our philosophy on sales and service is to do the job right the first time with good equipment and materials and to do it with honesty and without short cuts...The key is how to get a team of people to share this philosophy. It can be broken down into hiring, training, management, paying benefits and esprit de corp. My company is profitable year after year because of our people.”

Marvin Kanze: “The air conditioning business has changed. It’s no longer the friendly shake hands, go ahead business it was. The latest recession has shown us what the changes are and what they have to be. We can no longer be a one-brand contractor, because before you know it, that brand is your

direct competitor, not only selling direct to your builder customers, but competing for your life’s blood: the service business.”

Richard E. McKinnon: “We all know there is good business and bad business, and we need the good business. We won’t even quote half of the business or deal with half of the people out there, because it’s not good business. The best way, in fact, the only way to get good business, is to earn it. You have to begin by educating your customer.

If they have a lousy duct design, tell them, show them a good duct design and explain the difference.

Explain EERs and SEERs and what higher efficiency will do for them...educate your customer in a way that makes him obligated to you. If you do him a favor, he’ll owe you one.”

Thomas ‘Doc’ Rusk on advertising: “I do not believe in measuring the effectiveness of advertising by the number of telephone calls I receive. Phone calls don’t mean anything; sales mean everything, sales and net profit.

“My philosophy [of advertising] is that you have to get across to people that you are sincere. I don’t think people trust us. Much of our industry has a pretty bad reputation. People don’t trust words but they do trust a voice.”

John Keeler on commercial pricing, July 1985: “Your sales people must choose proper equipment for each job and design systems for each job and design systems that operate to maximum performance and reliability. Nothing is gained by misapplying equipment to win on a competitive bid.

You may only succeed in generating a dissatisfied customer and, perhaps, attorney fees. Determine total amount of materials needed. Determine total labor hours. Determine other direct job costs. All overhead must be paid by the sale of goods and/or services rendered.” Watch for more memories from our past 80 years through December.

The voices of the HVACR past continue to resonate with truths for today’s business environments.

In October and December of 1984, Contractor Jon M. Pierce wrote one of our best articles, a look at how his company faced bankruptcy, and how he and his team brought it back to solvency.

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

JULY 2024 | CONTRACTING BUSINESS | 5

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

SMACNA Releases New Edition of HVAC TAB Manual Chantilly, VA—The Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA) has published the fourth edition of its HVAC Systems Testing, Adjusting & Balancing Manual, which is available digitally and in print. This edition has been updated to include modern HVAC Systems, Technologies, and Practices to properly balance and adjust both hydronic, forced air and hybrid systems.

The manual includes a revised chapter with sample Test & Balance Report Forms included for the end user. General requirements for skill levels for training of TAB Technicians are now incorporated. Find it at the SMACNA online bookstore at https:// store.smacna.org.

Unified Group Convenes First Leadership Forum

ROSEMONT, IL—More than 35 members attended the Unified Group’s inaugural Leadership Forum, May 5-8 in Nashville.

Attendees are veteran leaders and others who have been identified as up-andcoming leaders within their companies.

“The most important things I learned were that we lead people but manage things,” said Katie Cullum of Cullum Services, Inc., North Charleston, SC. “There is a time and place for leading with power, but there is also a large need to lead with influence. We need to meet people on their level, direct conversations in a useful manner and understand that what motivates me is not always what motivates other people.”

Craig Woodall of Grinnell Leadership presented on the first day. Woodall has over 25 years of experience leading teams, projects, organizations and individuals.

ACQUISITIONS Clearwater, FL —Southeast Mechanical, headquartered in Winston-Salem, NC, has acquired Clearwater, FL-based Climate Design Home Services. This partnership marks SEM’s first expansion into Florida.

Founded in 2020, Southeast Mechanical is an HVAC, plumbing and electrical services platform comprised of local market-leading brands. SEM provides turnkey HVAC services to a wide range of residential and commercial customers across North Carolina, South Carolina, and Georgia.

Wilmington, MA—Kelvin Group and Southfield Capital, a premier, lower market private equity firm, announced that Refrigeration Design and Service, an industrial and commercial mission critical mechanical services company headquartered in Fairless Hills, PA., has completed the acquisition of GMS Services, LLC, Charleston, SC. GMS Services, LLC was established in South Carolina to provide primarily commercial and industrial refrigeration services for the supermarket.

Today, GMS Services LLC has locations in South Carolina, North Carolina, Georgia, Florida, and Ohio. This acquisition marks a significant milestone in RD&S’s growth trajectory, significantly expanding its geographic footprint within the Southeast and Great Lakes region as well as enhancing its commercial refrigeration service offerings.

With a background in engineering, project management, construction management and operations management, he brings a wealth of knowledge from the industry.

Woodall stressed the significance of leading through influence rather than power.

His presentation included a scavenger hunt, where each team of six participants ventured around the town to locate a specific item assigned to them. The objective of the exercise was to demonstrate the ability to influence community members to entrust their belongings temporarily, without resorting to bribery. Woodall underscored the importance of adapting our leadership approach to suit the individuals we lead and discerning how our actions are perceived. A crucial aspect of fostering trust is recognizing that authenticity cannot be achieved merely by fulfilling a requirement.

Randy Nemchin, president of Radical Guidance Consulting, joined as the guest speaker. Nemchin’s presentation focused

on various strategies for establishing and upholding alignment and accountability within teams.

Nemchin’s presentation focused on various strategies for establishing and upholding alignment and accountability within teams. Assessing whether a team is aligned involves observing behaviors, adhering to core values and gauging feedback from customers regarding the company’s performance. Do the values align with how a company wants to identify?

Do the employees believe in the values?

Without alignment, people will do what they want.

Upcoming Unified Group forums will include Financial, Construction and the Annual Meeting and Owners’ Forum.

If you’re interested in learning more about attending a meeting or becoming a member of The Unified Group, contact Janet Kelleher at KelleherJ@TheUnifiedGroup. com.

Unified Group members attended its first Leadership Forum in Nashville.

Unified Group

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EDITOR’S NOTEBOOK: PRODUCTS

ELECTRIC HEATING

The Trane® Thermafit™ Air-Source Modular Multipipe Unit Model MAS is the newest addition to the Thermafit family of modular units designed to bring more buildings into the future of sustainable comfort. The Thermafit air-source modular multipipe unit is a 30-ton (433 MBH) unit that is expandable up to 300 tons (4330 MBH bank). It’s an all-electric, all-in-one solution capable of 3 modes of operation, cooling, heating, or simultaneous heating and cooling, to meet different building loads. Engineers can integrate the Model MAS easily into new or existing systems.

The Trane Thermafit Air-Source Modular Multipipe Unit model MAS is an excellent fit for large buildings located in highly regulated environments where all-electric cooling and heating solutions are needed. Owners of large buildings seeking to meet ESG goals, reduce energy costs, and increase sustainability will find that heat pump technologies will help them meet their targets.

The need for full electric heating and cooling is growing as utility grids get greener. Electrification of heat helps cities and states achieve higher sustainability and meet the growing demand for electric heating due to changing regulations and building codes as regions decarbonize.

Trane sources recommend the Thermafit for • K-12 schools • Outpatient healthcare facilities • Hospitality such as lodging, restaurants, recreation, and entertainment venues • Federal government buildings • Commercial office buildings. trane.com/commercial

HEAT PUMPS

YORK® HH8 18 SEER2 Side-Discharge Variable Speed Heat Pumps deliver the superior comfort and technology of a high-tier efficiency unit.

Modulating technology maximizes comfort and reduces energy bills, while the inverter system maintains smooth operation—all within a compact design. HH8 heat pumps utilize low-GWP refrigerant R-454B and are optimized for energy efficiency to allow homeowners to apply for the Energy Efficient Home Improvement Credit (25C).

YORK® HH8 heat pumps offer easier access during service checks, making routine maintenance faster. The systems are equipped for standard installation and are compatible with conventional equipment and devices. Additionally, HH8 heat

pumps work with the free DS Solutions App to provide easy access to essential equipment information, troubleshooting support and helpful tools—including an intelligent refrigeration detection system (RDS) that can be accessed via a smart device. york.com Daikin Comfort Technologies North America, Inc. received a 2024 SEAL Sustainable Product Award for Daikin ATMOSPHERA, the first single-zone ductless heat pump system in North America with R-32, a low global warming potential (GWP) refrigerant.

SEAL (Sustainability, Environmental Achievement & Leadership) Awards is an environmental advocacy organization that honors leadership through its business sustainability awards. The SEAL Sustainable Product Award honors innovative and impactful products that are literally “purposebuilt” for a sustainable future.

The Daikin ATMOSPHERA single-zone ductless inverter heat pump system is ideal for spot cooling and heating needs in residential and commercial spaces, and is an effective source of heat to offset old, inefficient furnaces or boiler heating systems.

The Daikin ATMOSPHERA ductless system is easily applicable to both renovations, for areas that may not have had prior heating or cooling, and in new construction, for controlling comfort in a single area. daikincomfort.com The Goodman SD side-discharge design for ducted applications is transforming residential HVAC. Inverterdriven, communicating Goodman SD heat pumps or air conditioners are up to 53 percent lighter and 40 percent smaller than a traditional cube-style unit—a size and weight easily managed by one HVAC contractor using a dolly.

Merging high-performance ductless engineering with ducted systems, Goodman SD outdoor units require just 4” of clearance, solving installation challenges. They run quietly, down to 56 dBA, with energysaving performance up to 17.5 SEER2 and 8.5 HSPF2 (heat pump). Goodman SD covers a remarkable range of outdoor temperatures, up to 115°F DB and, for the heat pump, down to -10°F DB. goodmanmfg.com The new American Standard Silver 15 SEER2 Heat Pump features the lower global warming potential R-454B refrigerant ahead of the Jan. 1, 2025 federal regulation deadline.

American Standard’s units with the new A2L refrigerant include JULY 2024 | CONTRACTING BUSINESS | 7

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EDITOR’S NOTEBOOK: PRODUCTS

industry-leading refrigerant detection sensors that provide a patent-pending installation clip that lets them easily snap onto the side of the pan. It detects if there is a refrigerant leak. It is available in 1.5- to 5-ton sizes, for residential, light commercial or commercial applications. It has a fixed motor speed.

Heating Season Performance Factor of up to 8.5 HSPF2, and SEER rating up to 16.5 SEER2. americanstandardair.com Allied Air Enterprises has launched low global warming potential residential HVAC solutions to meet the 2025 LowGWP Refrigerant regulations. Significantly reducing the impact of harmful greenhouse gas emissions, the transition to LowGWP refrigerant is a positive step towards sustainability and protecting the planet, sources report. Allied Air is set to launch an extensive range of HVAC systems powered by the ecoconscious refrigerant R-454B, which reduces global warming potential by up to 78%*. To support the transition, Allied Air supports energy savings and sustainable solutions for its direct-to-distributor customer model.

Allied Air is meeting the demand for forward and backward compatibility by providing multi-refrigerant air handlers and cased coils that enable the transition from R-410A to R-454B refrigerant. Multi-refrigerant cased coils ship from the factory ready for R-410A installations and can be field-converted for use with a R-454B system with a conversion kit.

The company will provide refrigerant detection system kits, enabling compatibility between existing furnaces and the new R-454B systems to ensure that distributors’ inventory remains usable into 2025 and beyond. alliedair.com *78% reduction in global warming potential when compared to R-410A refrigerant.

INSTRUMENTS & TEST EQUIPMENT

Ritchie Engineering Company, Inc. has released the TITANMAX ™ digital manifold to the HVACR market.

The TITANMAX digital manifold provides the easiest path to system measurements. This 4-valve manifold provides fast and accurate measurements for refrigeration and A/C systems. The high-resolution, backlit touchscreen display erases the need for multi-function buttons and provides clear graphical and digital measurements.

It provides ultimate user interface with information link on all major screens and internal data logging. Integrated magnets for mounting on equipment cabinet also serve to store the new TITAN ® Temperature Clamps. Users may connect via Bluetooth® to the YJACK VIEW ® App or measureQuick ® App for further analysis. The TITANMAX ™ P/N 40881 includes two (2) temperature clamps, a

vacuum sensor and a USB-C charging and data cable. Kits also include PLUS II ™ hoses, wireless probes and a sturdy, multipocket backpack. www.yellowjacket.com/product combustible-gas-leak-detector/

CONTROLS

Fellowes has released the Fellowes® Array™ Air Quality system, the state-of-the-art solution designed to ensure superior protection against the health hazards of wildfire smoke, as well as viruses, and other pathogens in communal indoor environments.

Array’s innovative network of localized air purification units complements HVAC systems to address any limitations of the filtration of indoor air. The Array system continuously monitors each occupied space, adapting to fluctuating air quality to optimally deliver advanced filtration technology—effectively, efficiently, and quietly ensuring clean, healthy air.

Ventilation is essential for reducing indoor respiratory pathogens like H1N1 and COVID-19, however, ventilation without adequate filtration can be counterproductive when outdoor air quality is poor due to wildfires. Standard HVAC systems often struggle to handle poor outdoor air quality, including the growing dangers of wildfire smoke across vast regions of the United States and Canada which worsen each year. Even when HVAC systems are manually set to reduce the amount of outdoor air brought in through mechanical ventilation, this does nothing to change the quality of the air already inside. Stopping outdoor-air ventilation may reduce the amount of polluted outdoor air coming in, but outdoor air still seeps into indoor spaces through cracks in the building envelope. fellowes.com Johnson Controls released the Facility Explorer FX90 Supervisory Controller, with unique, advanced features to make building automation easier, smarter and more cost efficient. The FX90 represents the next generation of Facility Explorer supervisory controllers designed to streamline and automate workflows to increase building automation performance with minimal maintenance. FX90 features a one-size-fits-all hardware platform with modular accessories and flexible device/point licensing that enables it to handle building automation jobs of any size and complexity. It creates powerful, future-ready buildings: Increased computing power with 2 GB memory and 8 GB storage provides faster boot-up and station startup, quicker data access and decision making along with storage for backups, point history and future upgrades. johnsoncontrols.com

8 | CONTRACTING BUSINESS | JULY 2024

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Ecoer released its latest “groundbreaking” technology, EAC, the Ecoer Automated Charge. Sources say it’s designed to empower HVAC contractors with a seamless, hassle-free experience, and represents a significant leap forward in the industry.

Ecoer integrates proprietary IoT and AI-based machine control technologies into its Gen2 product line, ESi Decades Extreme series, and new products launched in Q2, such as RTi and TDi, etc. Ecoer reports EAC is the industry’s first fully digitized method for charging inverter-driven residential heat pump systems. The technology streamlines the refrigerant-charging process by eliminating the need for gauges and minimizing human error. Contractors can establish a setpoint with a touch, and the system completes the process. ecoer.com

All product claims are made by the manufacturers.

GEOTHERMAL

The Tranquility® 24 (SY) Compact Two-Stage Series comes with all the reliability features for which the ClimateMaster Tranquility Series is known.

They include superb efficiency ratings, quiet operation, and application flexibility. Tranquility SY surpasses ASHRAE 90.1 efficiency standards and utilizes R-454B low Global Warming Potential (GWP) refrigerant, setting a high standard for ecofriendly performance. climatemaster.com

Press Fittings Increase Efficiency in VRF Installations

Images courtesy of RLS

Jamie Christensen, owner of Seattle-based Elevated Mechanical, LLC, celebrated his second year in business this past winter, marking a successful transition from a 20-year industry veteran to an independent entrepreneur. Christensen’s goal in starting his own company is to provide high-quality HVAC services and an unmatched level of customer service. While operating independently also affords him the flexibility to establish a schedule that prioritizes his family, it also requires Christensen to assume full responsibility of overseeing projects from start to finish to ensure his businesses reputation stays strong within the community.

In a recent project at a CNC machine manufacturing shop, Elevated Mechanical was tasked with its biggest commercial variant refrigerant flow (VRF) project yet. The job entailed the installation of a 26-ton Mitsubishi VRF unit, incorporating two branch boxes—one comprising 12 circuits and the other eight circuits—with a total of 19 heads. The challenge was heightened by the need to work on pipes mounted 20 feet above the floor. Christensen had plenty of VRF experience and knew that brazing the entire project was not an option. The open flame from the torch coupled with the nitrogen purging process would pose too much of a risk in a functioning manufacturing facility where he had to work so close to overhead sprinklers and the facility’s employees. Additionally, the large and heavy brazing equipment would make maneuvering around on a small lift even more difficult, not to mention the time it would take to complete the entire process. Christensen turned to Rapid Locking System (RLS) to get the job done.

RLS is a patented press-to-connect fitting specifically developed for the high-pressure application of the HVAC and refrigeration industries. As a flamefree alternative, RLS The VRF project was completed in tight press fittings are fully quarters, 20-feet high.

More than 150 press fittings were used throughout the project to connect overhanging pipes to the new VRF system.

registered and listed to UL207 for pressures up to 700 PSI and can create connections up to 60 percent faster than brazing, making them a convenient option to use during install in addition to the traditional brazing method for VRF applications.

“Brazing around an entire fitting while sitting in a lift and holding a torch above your head to make a connection isn’t ideal,” Christensen explained. “Press fittings simplify the whole process.”

RLS fittings are installed with a tool and jaw that handles most of the work, which means connections are consistent between contractors and easily repeatable. Press fittings also result in less rework by virtually eliminating the chance of human error.

Christensen reported that he has never received a call-back for projects where he opted for press fittings over brazing.

More than 150 press fittings were used throughout the project to connect overhanging pipes to the new VRF system—a task that would have taken more than double the time, and significantly more supplies and labor had it been brazed. The ease and efficiency that press fittings offer allowed Christensen to exceed the client’s expectations and further Elevated Mechanical’s reputation in the Seattle area.

As his company grows, Christensen increasingly relies on his press tool. Press not only offers practical solutions to challenges he faces in the field but has become an integral part of Christensen’s business strategy, enhancin efficiency and maximizing profits.

“You don’t realize how labor-intensive jobs like these are until you’re on your own,” said Christensen. “RLS has been instrumental in helping me expand my small business.” rapidlockingsystem.com JULY 2024 | CONTRACTING BUSINESS | 9

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

METUS Recognizes Top Distributors

Images courtesy of METUS

SUWANEE, GA—Mitsubishi Electric Trane HVAC US LLC (METUS) recognized its top distributors during the Diamond Leadership Conference held at the Grand Velas Los Cabos, in Mexico’s Baja, California, Peninsula, March 15-18, 2024.

Honorees received either the Distributor of the Year Award or the Crowning Achievement Award from METUS. Thirty-two distributors were recognized

for their achievements in distributing METUS products.

The 2023 National Distributor of the Year Award, Residential, went to Johnstone Supply – The Ware Group, and the 2023 National Distributor of the Year Award, Commercial, was given to Brady Trane.

Find the list of all winners at contractingbusiness.com/55042210.

Brady Trane won the 2023 National Distributor of the Year Award for commercial sales.

Pictured left to right: Mark Kuntz, CEO, METUS; Scott Graham, director, commercial business, South Business Unit, METUS; Aaron Hughes, VP sales, systems & building services, Brady Trane; David Archer, VP of commercial business, METUS; Brinnon Williams, VP of residential business, METUS.

Johnstone Supply – The Ware Group won the 2023 National Distributor of the Year Award for residential products. Pictured left to right: Mark Kuntz, CEO, METUS; Doug King, director, South Business Unit, METUS; Cameron Perkins, VP of marketing and vendor relations, Johnstone Supply; Ty Rath, area equipment manager, Johnstone Supply; Brinnon Williams, VP of residential business, METUS; David Archer, VP of commercial business, METUS.

Samsung, Lennox Form Joint Venture for Ductless RIDGEFIELD PARK, NJ—Samsung Electronics Co., Ltd. announced that it had agreed to form a joint venture with Lennox to sell ductless HVAC systems in the United States and Canada.

Samsung will own 50.1% of the joint venture, Samsung Lennox HVAC North America, and Lennox will own the remaining 49.9%.

The joint venture will involve distributing Samsung ductless products in the United States and Canada as well as, “Lennox powered by Samsung”- branded products for Lennox, which will be sold through Lennox stores and direct-to-dealer

network. The joint venture will continue to supply Samsung branded products to the existing Samsung HVAC distributors and representatives in the United States and Canada.

Samsung expects the joint venture will help the company strengthen its position in the North American HVAC market by adding Lennox’s distribution channels, while Lennox is expected to reinforce its business by expanding the product lineup of innovative ductless systems from Samsung.

Samsung and Lennox will continue to seek more partnership opportunities and collaboration with homebuilders across various product categories from home appliances to TV, as well as in device parts and technology. Pending customary closing conditions, the new joint venture is expected to be operational in the second half of 2024.Find additional details online, at contractingbusiness.com/55042888.

Fieldpiece/Skills USA Winners Announced

ORANGE, CA—Fieldpiece Instruments announced the winners of the third annual #MasteroftheTrade program. Six students will receive $2,500 each to fund their continued education in the HVACR trade or the option of an in-kind tool donation to jumpstart their careers.

The #MasteroftheTrade program seeks to bridge the talent gap in the U.S. labor market for HVACR technicians by providing financial support to individuals pursuing a future in the industry. The winners of this program demonstrate exceptional skill, passion and dedication to their craft, embodying Fieldpiece’s spirit of excellence.

The award-winning students are: • Cole Kelly from Billerica, MA • Colton Rentschler from Sinking Spring, PA • Cadin Blais from Watertown, SD • Mohamed Deyab from Harlingen, TX • Peyton Hoenig from Asheboro, NC • John Chaney from Knoxville, TN Fieldpiece Instruments will also award $10,000 to the top-ranking high school and college/postsecondary students in the HVACR category at the SkillsUSA National Leadership & Skills Conference in June.

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CONTRACTOR PROFILE | BY MICHAEL KEATING

Elevating the Standards of the HVAC Industry Balance HVAC in Vero Beach, Fla., is a recent startup; its owner is working to elevate the standards of the HVAC industry.

As part of Contracting Business’s 80th Anniversary celebration, we are profiling some of the leading service providers in the HVAC industry and those that are aspiring to greatness.

Marco Radocaj founded Balance HVAC in Vero Beach, Fla. in November 2023. Despite its short duration, Radocaj and his team are aspiring to greatness, as proven by its attention to many details and standards and pursuit of education.

—ed.

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alance HVAC offers regular maintenance, installation and service for HVAC equipment. The firm delivers total solutions for healthy indoor air quality and comfort. It offers its services in Vero Beach and throughout Indian River County, Fla. As stated on the Balance HVAC website: “We’re on a mission to elevate the standards of the HVAC industry and revitalize the importance of the skilled trades.” Owner Marco Radocaj tells Contracting Business: “Our mission statement does a great job explaining what we do. Customers of HVAC companies should expect more than just ‘cold air’ and symptom management. As an HVAC company, it is our job to educate employees to understand these concepts and provide tools and technology to test, measure and understand these other aspects and how they impact our goal of providing healthy, dry and comfortable IAQ.” Marco Radocaj met his wife, Laura, in 2005 while attending Villanova University. He outlines their journey: “Shortly after we got married in 2010, we moved to Vero Beach, and I started my first day in

Balance HVAC

‘As an HVAC company, it is our job to educate employees to understand these concepts and provide tools and technology to test, measure and understand these other aspects and how they impact our goal of providing healthy, dry and comfortable IAQ.’ —Marco Rodocaj the HVAC trade working at her dad’s air conditioning company. I had zero experience in any trade. I made my way into the trade through strictly servicing air conditioning. I became very good at repairing broken air conditioners and at the time considered myself a very good service technician.”

Radocaj says that his firm purchased a smaller company in town in 2018, and he was given the

opportunity to oversee the acquisition as the General Manager. “My only hesitation was my lack of any experience installing systems or ductwork.

However, the old owner’s son was sticking around and would act as the Installation Manager.”

He explains that things were going well until the COVID pandemic hit. He notes that the same day staffers at his firm were deemed “essential workers,” the installation manager gave Radocaj his two-week notice. “So, while my wife and kids isolated at a lake house in Georgia, I isolated in front a computer. After several failed Google searches, I stumbled across the Air Conditioning Contractors of America. I learned and gained accreditation for ACCA Manuals J, D and S. I was blown away that there was actually a correct way to do installations.” His thoughts regarding the leading association for contractors: “ACCA has an elite team and sets a very realistic and user-friendly expectation for our industry. We try to copy people smarter than us on a daily basis.”

Radocaj continued to expand his HVAC industry knowledge-base. “I pressed on and discovered the Building Performance Institute and other outlets for better understanding the enclosure and building envelope. As I continued to learn and apply these concepts, it became clearer to me that what was lacking in the trade was emphasis on the technicians in the field, including their training and their tools.”

The Balance HVAC founder says that to him, it seemed as if the HVAC trade in general had become oversimplified during a time when houses were designed to breathe. He adds: “This issue was coming to a head as building code administrators continued to press for efficiency.”

In 2022, Radocaj left the HVAC industry and served as Vice President of Home Performance at a construction company. After a brief time, he realized how much he missed the HVAC industry, and that’s when he and his wife started their own company, Balance HVAC. Balance HVAC represents a special mix of delivering professional HVAC services and a strong commitment to community involvement. Marco and Laura Radocaj are deeply involved in community

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activities, including coaching youth sports and participating in nonprofit initiatives.

Radocaj says his firm focuses on air balancing and air flow testing in their work with residential customers. “As the company in charge of conditioning a customer’s air, we have found that air flow measurement is critical. We utilize several different methods and tools to determine system air flow.” The Balance HVAC executive explains: “If we don’t have at least some idea of how much air we are moving and to where, it’s not likely we will be able to deliver the results we are looking for.”

Continuing Education for HVAC Technicians Is Key Balance HVAC is committed to ongoing education for its workforce. Radocaj explains: “We offer reimbursement for any continuing education endeavors aimed at enhancing the skills and knowledge of our HVAC technicians. This investment in their development not only benefits our employees personally but also translates into improved service quality for our customers.”

He adds: “We have implemented a performance-based pay structure that incentivizes employees to further expand their expertise. For instance, those interested in earning additional commission through equipment sales must first obtain certification in ACCA Standard 5. This ensures that our team members are equipped with the necessary expertise to deliver superior results, ultimately benefiting both our business and our customers.”

Radocaj encourages Balance HVAC techs to get a variety of continuing training in technology. “As our approach considers the entire home as one system, any general knowledge regarding heat gain, infiltration, and factors that influence these two elements is very important. All of our installation technicians have taken ACCA Manual D courses for the obvious reason of having a better understanding of how the duct system works.”

Balance HVAC technicians hold a variety of certifications. Radocaj explains: “We also have service technicians that are certified blower door operators and other employees with duct-tightness-testing certification. Obviously, we are not using these tools on each and every job, but having an understanding of how they

impact our work makes us more capable technicians.”

The Balance HVAC owner knows the importance of his firm’s technicians and other staffers. “We recognize the pivotal role our employees play in our success and have tailored our benefits package to foster continuous growth within the trade while remaining aligned with our pay structure.”

His firm, says Radocaj, aims for uniformity and lack of deviation in the work it does. “By adhering to standardized procedures, such as ACCA-approved installation protocols, we ensure consistency and quality across all our projects. This approach not only enhances efficiency but also guarantees unparalleled service excellence for homeowners.”

Radocaj offers this summary: “In essence, our strategic focus on employee development, coupled with standardized operating procedures, has enabled us to maintain our position as leaders in the HVACR industry, delivering exceptional value to our customers while driving continuous growth and innovation within our company.”

Adopters of Technology That Give Customers Transparency Balance HVAC is customer-driven. “We understand the inconvenience and discomfort homeowners face when their AC systems malfunction, often disrupting their sleep and daily routines. Recognizing these challenges, we’ve taken deliberate steps to revolutionize the customer experience and set ourselves apart as leaders in the field,” Radocaj tells Contracting Business.

The Balance HVAC owner notes that traditionally, the HVAC service process has been opaque, leaving customers in the dark about the work being done in their homes.

He says his firm does things differently.

“We’ve flipped this narrative by leveraging technology to offer transparency and peace of mind to our customers. Through platforms like Company Cam, we provide real-time visual updates, showcasing the craftsmanship and attention to detail that goes into every project. From initial assessments to final installations, we document the journey with before-and-after photos, highlighting areas where we’ve gone the extra mile.”

He adds that his company prioritizes accountability and quality assurance through

the use of tools like Measure Quick. “This third-party app allows us to translate real-life readings into easy-to-understand metrics, providing customers with a clear assessment of their system’s performance.

With a simple pass-fail scale and an intuitive A-F grading system, customers can easily gauge the effectiveness of their HVAC investment.”

Radocaj says that by adopting new technologies such as the above, his company not only demonstrates its commitment to precision and excellence, but also cultivates trust and satisfaction among its clientele. “At Balance HVAC, we’re not just in the business of fixing AC systems; we’re dedicated to delivering an unparalleled customer experience that reflects our passion for craftsmanship and our genuine concern for our customers’ comfort and well-being.”

Radocaj says controlled growth is the goal for his firm. “We have a great team who believes in our mission. As our team grows, it’s important to closely navigate with our mission statement as our North Star. There will always be companies that are bigger, faster or less expensive; but our goal from day one has been to deliver the absolute best.”

He adds that his managers’ ability to educate new technicians dictates the speed of his company’s future growth. Through this training, his firm’s technicians can continue to push the firm’s customers’ expectations beyond just “cold air.”

Radocaj wants to continue to challenge and excite the firm’s existing team to keep pushing their own expectations of themselves and become leaders in the HVAC trade. “Personally, I hope to be able to share my knowledge and excitement of the HVAC industry with others. Whether that is expanding on my consultation side of the business or teaching classes to eager men and women looking to get in the HVAC industry, I want to help others know how to learn and achieve the right way to do HVAC.” Radocaj sums it up: ““I trust the process; Balance HVAC is performing to our expectations.”

Michael Keating writes for a variety of publications, including NATE Magazine and American City & County. He is a freelance writer specializing in industrial and technology-related topics and trends.

Contact: Mike at@gmail.com.

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INNOVATIONS IN BUILDING CONTROLS | BY TERRY MCIVER

Building Controls Project Profiles

Building automation systems at work in diverse applications.

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n industry leader in the collection and processing of life-saving biological material sought expert guidance on how to advance progress towards Greenhouse Gas (GHG) emission reduction goals. After implementing Trane® Autonomous Control powered by BrainBox AI® in more than 120 donation and collection facilities, Trane Autonomous Control has reduced 1,132 mtCO2e and has resulted in $329k in energy cost savings in the first 18 months of operation.

Motivated by bold sustainability initiatives, a loyal Trane equipment, controls, and services client was seeking expert guidance on how to make progress on aggressive Greenhouse Gas (GHG) reduction goals across a national portfolio of facilities. As an industry leader in the collection and processing of life saving biological material, the client must support both donor comfort and critical product environmental conditions under the same roof.

The decarbonization goals, set by their parent company, included a 40% reduction in GHG emissions by 2025 and to be net zero by 2035.

Life-saving Challenge Due to the critical nature and requirements of the collected biological material, air temperature and humidity control is a matter of life-saving functionality, not just comfort. It was vital to achieve the best possible environmental conditions on a zone-by-zone basis while also helping to optimize energy consumption.

Having already optimized their systems both mechanically and through the use of a Tracer® SC+ Building Automation System, the client needed ways to help generate more significant carbon

Hall Park, Frisco, TX.

reduction and cost savings without large investments in human capital or equipment.

Sustainability initiatives needed to fit within their investment threshold and include a crucial stipulation for little to no operational disruptions.

Because no two buildings are identical, it was imperative to create an adaptable program that could be implemented Products Used: across multiple sites locatControls, Building ed in different parts of the Automation Systems country.

Decarbonization Solution Trane introduced a decarbonization program that was scalable to the customer’s 150+ donation centers across the country, resulted in significant cost savings, and was implemented with next to no downtime or sizeable equipment investments.

To operate within the customer’s existing parameters, Trane identified an artificial intelligence (AI) enabled solution to predictively

Results Metrics: • Trane® Autonomous Control powered by BrainBox AI ® in over 120 donation and collection facilities • Trane Autonomous Control has reduced 1,132 mtCO2e • $329k in Energy Cost Savings in the First 18 Months of Operations • 16.7% Savings in Electricity in the First 6 Months • Sites that have activated our AI solution have seen a 22% lower Energy Use Intensity (energy/sq. ft.)

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optimize the system’s performance.

The unique nature of the client’s business lent itself to the innovative optimization capabilities available through the AI-enabled service, Trane® Autonomous Control powered by BrainBox AI®. By incorporating variables such as predictive weather data, occupancy trends, and equipment performance data, the use of AI technology allows for more advanced optimization to impact the customer’s environmental and financial goals.

Without the need for additional hardware, the team avoided impacts from potential supply chain delays, and easily connected from the client’s current building management system to the cloud-based service. It was a seamless coordination between rooftop units and existing internal HVAC equipment which resulted in the transformation of already responsive HVAC systems into predictive systems. This provided the ability to adjust zone-by-zone temperatures autonomously.

By monitoring conditions and algorithmically controlling equipment performance, this AI-enabled service helped maximize efficiency and cost savings.

to operations and customer satisfaction.

“The collaborative nature of the development of this program allowed it to be extremely successful,” said Trevor Joelson, a Trane Energy Services Account Executive.

“The initial centers showed such great results, the team quickly implemented this in other locations and the program is delivering significant energy cost savings,

making the program cash flow positive.”

As a result of this collaboration, not only did the customer enhance their reputation as a responsible corporate citizen, but they also experienced increased operational efficiency and substantial cost savings.

Together, they proved that sustainable practices are not only good for the planet but also beneficial for the bottom line.

Scan to Learn More

Swift Results In the first six months, the client was well over halfway to their 2025 goal at the five test sites - with a 26.1% CO2e reduction and 16.7% savings in electricity. This reduction was accomplished with no additional hardware needed on-site and with no site interruptions.

To date, the program has been implemented at more than 100 additional clinics across the country with impressive results impacting both Scope 1 (natural gas) and Scope 2 (electricity) emissions reductions.

The sites that have activated the AI solution have seen a staggering 22% lower Energy Use Intensity (energy / sq. ft.) than sites where Trane Autonomous Control has yet to be activated.

The program proved it could play a large part in reducing the client’s overall carbon footprint and energy costs all while maintaining the strict temperature and humidity requirements necessary for the safety and success of their clinics. These outcomes highlighted the scalability of the program and showed that rapid implementation was possible without disturbance

Easy Maintenance.

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The EC-1U-DV brings the performance of our EC-1-DV Series of mini-split condensate pump to a slim undermount unit that installs easily and neatly underneath equipment. Built for reliable and quiet operation, the automatic condensate removal system works continuously to remove water from any ductless mini-split air conditioner evaporative coil when gravity-feed drainage is not possible or practical.

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INNOVATIONS IN BUILDING CONTROLS

Controls Leader Brings Energy Savings Home When IoT-based smart green solutions provider Delta Controls designed its Fremont, California, headquarters in 2018, it knew it had to go above and beyond. It had to target zero energy—and that’s exactly what it accomplished with recent technology upgrades to its already sustainable facility.

The company’s regional headquarters recently became the first green building in Fremont, and second in the Silicon Valley Bay Area, to achieve the LEED Zero Energy certification from the U.S. Green Building Council. The accolade, granted to green buildings that generate as much electricity as they consume, was attained thanks to the further implementation of Delta’s own solutions in this originally LEED Platinum facility.

Aided by an energy-conscious design that utilizes geographical advantages unique to Fremont while considering the

Delta Controls

By focusing on energy conservation in information and communications technology (ICT) infrastructure, buildings and factories, and by developing smart energy solutions (renewable energy, energy storage, EV charging) Delta aims to reduce carbon emissions and contribute to a sustainable future—starting with its own facilities.

productivity and needs of its operations, the Delta Americas HQ building is an example of what a total integrated solution can look like.

By focusing on energy conservation in information and communications technology (ICT) infrastructure, buildings and factories, and by developing smart energy solutions (renewable energy, energy storage, EV charging) Delta aims to reduce carbon emissions and contribute to a sustainable future—starting with its own facilities.

Delta invested in a comprehensive solar energy solution that covers nearly the entire area of the 180,000-square-foot facility at a total cost of approximately $1.5 million.

Optimized energy management is also attained by the implementation of Delta’s next-generation SCADA system and building control platform. These platforms integrate seamlessly with the existing building sub-systems, such as HVAC, LED lighting and other energy-intensive applications, to create set points, collect data and track trends, create reports and manage alarms, remotely. With unlimited scalability, this solution grows with the facility as new solutions are integrated to ensure lower energy consumption.

Contractor-designed Monitor Keeps Tabs on Building Performance for K-12 School Founded in 1948 in St. Paul, Minn., Harris is dedicated to building relationships with and being a trusted partner for clients. The Harris-Schaeffer Academy partnership exemplifies this notion. Schaeffer Academy is

Delta Electronics (Americas)

a K-12 private school with a 54,823-square foot facility in Rochester, Minn.

In 2014, Schaeffer Academy brought on Harris for a small-scale service contract, performing inspections and repairs on their sewage ejector systems as needed.

Later, this grew into a more extensive maintenance plan designed by Harris.

When the academy’s HVAC equipment was nearing the end of its life, the teams started deep discussions on the next steps and a vision for improvements.

Harris’s recommendations included an HVAC preventive maintenance plan with Telemetry®, the replacement of 15 rooftop units and the installation of a building automation system. The maintenance package covered any repairs to keep Schaeffer Academy’s current equipment running until the new equipment was installed.

With the addition of Telemetry, Harris consistently monitors the building’s performance and identifies any comfort and efficiency issues.

Jon Klug, Building Controls Project Sales Representative for Harris spoke to Telemetry’s ability to red-flag potential system problems.

“Probably one of the greatest things that it offers is that, with the rule sets we’ve written, it enables us and the customer to potentially pick up on future issues before they become real. For example, it detects that one of your hot water pumps is running harder than it once did, and things may be getting a little worn out, and maybe we should get one on order, so we have it on the shelf, so to speak. If it fails at 10:00 PM on a Saturday night when it’s 20 below outside, we have a replacement ready to go,” Klug explained Telemetry can co-exist with virtually any brand of building automation system, and is not limited to systems that Harris teams install.

“And, depending on the system, it’s not just a cookie cutter, where we slam it in and then we’re talking to it and there might be an additional device that we have to install to get that communication going.

If, on our mechanical side or service side, we have customers that don’t have a building automation system installed by Harris, this allows us to support that customer in another way without doing a full automation retrofit,” Klug said.

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Alliance Air Products was recently acquired

by Daikin Applied, and recently conducted a symbolic groundbreaking for a new facility in Tijuana, Mexico.

Daikin

than traditional hangers

Administrators from Providence Health Millcreek Internal Medicine Everett, Washington, needed a replacement for 25-year-old rooftop units using antiquated technology.

“They needed greater capacity from their air handling equipment, and wanted to improve on the facility’s cooling and heating by using new technologies with reduced energy consumption,” explained George Paich, Director, Sales and Marketing for Alliance Air Products.

Challenge: “We could not increase the height and weight of the replacement air handlers, and had to use the same curb dimensions the existing units were located on. We made a site visit to measure curb dimensions, and note the locations of the supply air and return air, and try to fit everything within the same dimensions, with greater capacity.

“To reduce energy consumption we used EC fan technology to replace the belt-driven fans. The EC fans also runs quieter and with less vibration than a belt-driven fan.”

The higher-efficiency gas furnaces have higher turn-down ratios, which allowed for reduced furnace operation on cold days. “We also included an economizer that enabled free cooling on days when outdoor cooling was sufficient for providing what they needed,” Paich said.

They also employed an evaporative cooled condensing unit and reduced the space the compressorized system was using. “That gave them more area inside the air handler, for greater maintenancefriendly areas.”

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BUSINESS MANAGEMENT | BY TERRY MCIVER, JEFF PLANT

Proper Procedures Matter

KPI tracking, communication and delegating are service business essentials.

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egular tracking of Key Performance Indicators (KPI) are the most valued method for determining the financial condition of a service business. We also know the importance of clear communication and proper delegation of duties to any business, large or small. We spoke about these essential practices with Jeff Plant, Head Coach Team Lead and Training with Business Development Resources, Inc. to iron out some KPI-related questions.

Contracting Business: Jeff, are some KPIs more important than others in the HVAC business setting? If so, what are those, and how must they be interpreted?

Jeff Plant: It is important to keep an eye on the basics. I encourage my clients to never lose focus on these things when it comes to service and replacement.

For service: • Make sure you are hitting your forecasted daily call count goals.

• Review average ticket revenue daily.

• Review the total daily revenue for the department and per technician.

• Monitor daily billing efficiency. How many hours are billed each day compared to how many hours worked?

For replacement: • Monitor lead count daily.

• Monitor average sales price daily.

• Monitor total daily sales revenue.

• Monitor labor efficiency. How many hours did an installation require compared to how many hours were bid?

• Monitor Gross Profit Per Man Day (GMPD) goals.

CB: What are the red flags related to the most important KPIs? JP: Use these KPIs to expose the red flags to determine and forecast shortfalls daily. KPIs are only helpful if you use them. Review them regularly—daily for many—and then course correct as needed.

CB: Clarity helps to eliminate confusion. Where is the clearest communication most needed in service businesses?

JP: Everywhere and at all times, it is important to ensure that communication goes beyond words and that we are actually connecting the team to the task ahead with clear communication and defined expectations. Written processes, pictures, and videos all support clear communication. Spending the time to learn more about your members and their goals and motivations provides the connection that leads to the most effective communication and team production.

CB: In what ways does poor communication harm a business?

JP: Poor communication leaves too many gray areas for the team to interpret improperly. If the team is not clear on the communication, they may make their own assumptions, which may be the ones you do not want or never intended.

Clear communication can be achieved when the company’s culture is consistent, and each team member knows how they contribute to the whole of the company. It is also good practice to have team members recite the expectations back to you once you communicate with them.

CB: What are some business procedures some are still doing on paper, that are proven time wasters?

JP: In sales, some companies still prepare proposals in paper format, which can cause inconsistencies in the proposal deliverable. It is also very difficult to store these paper documents in a database where they can be easily accessed for future review.

In service: Billing service calls on paper creates some of the same issues as above, with additional issues such as inconsistent billing. Some techs work faster than others, so the billing can be different based on tech efficiency. There is also the challenge of inconsistent invoice totaling due to improper total additions.

Digital formats take math out of the equation.

In the office: In-office billing to clients and inventory tracking, which can be done much more easily with electronic systems.

CB: Are there things the owner can hand off to the team that they are doing but are keeping them from working ON the business?

JP: Owners need to start trusting their teams to implement things. They still get too involved, thinking they need to have all the answers and implement all the systems in the company, which causes bottlenecks for them and their teams. Delegation is a learned skill. Owners can start by identifying the tasks they perform with the highest value and then working to spend more time on these tasks.

They must build a plan to delegate tasks to others to free up their time. Successful delegation is done to a plan. Who is the appropriate person to take on the task? What training, tools, and instruction will they need to succeed? When do they need to complete the task?

The answer to the question of what tasks to delegate will differ for each owner, but if they do not free up their time to work ON the business, their company will never reach its true potential.

Jeff Plant is Head Coach Team Lead and Training with Business Development Resources, Inc., Seattle, WA. Find BDR at bdrco.com

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WHAT’S NEW, WHAT’S NEXT? | BY DOUG WIDENMANN

Exclusive to Contracting Business

Photo 182709448 © Yevhenii Tryfonov | Dreamstime.com

Charting a Course for Change Doug Widenmann

F

or this edition of our 2024 special section, “What’s New? What’s Next?” in which we provide focused responses from leading brand executives, we feature Doug Widenmann, Senior Vice President, Marketing for Daikin Comfort Technologies, North America. Daikin is celebrating its 100th Anniversary as Contracting Business celebrates its 80th year as a leader in HVACR publishing. —ed.

Contracting Business: Please share Daikin’s progress to date related electrification manufacturing goals and why those products will be signficicant technological developments.

Doug Widenmann: Daikin is a responsible company that believes in being a good corporate steward and improving society. We support this responsibility through the development of advanced technologies based on Daikin’s core strengths of inverter, heat pump and refrigerant management. In 2018 Daikin Comfort Technologies North America, Inc. (DNA) launched Daikin FIT, a compact, efficient, and quiet, communicating horizontal

Daikin

discharge ducted unitary system. These systems have been very successful for Daikin and our contractors appreciate the ease of installation and application flexibility not to mention the comfort and efficiency they offer.

The significance of Daikin FIT is multifaceted. The units are compact, highly efficient and use significantly less refrigerant than traditional cube-style units, such as Daikin’s DZ18TC noninverter cube style heat pump with efficiencies up to 19 SEER. This combination of small footprint which supports long term affordability concerns, superior efficiency and the dramatic reduction in refrigerant required to deliver a high-performance system are critical to meet goals as we experience a phase down in HFC refrigerants and future DOE minimum efficiency requirements.

CB: Decarbonization is of course related to electrification, but how is Daikin progressing in meeting decarbonization goals, and which refrigerant will Daikin be using?

DW: From a global perspective, from Daikin Industries, Ltd. in

Daikin Seeks to Deploy One Million Heat Pumps in Calif. by 2030 California, May 28-29, 2024—Daikin announced five commitments as part of the company’s pledge to significantly increase the supply of heat pumps in California. These commitments—including Daikin forging a path to produce one million heat pumps—will help enable the state to achieve its goal of deploying six million heat pumps by the end of the decade.

In October 2023, the California Energy Commission announced that 10 of the world’s largest manufacturers, distributors, and suppliers of building heating and cooling equipment agreed to help achieve California’s goal of deploying six million heat pumps by 2030.

Today’s new announcement marks the culmination of an ongoing collaboration with the state of California, making Daikin the first to announce concrete steps toward meeting its pledge.

“As one of the world’s largest economies, California’s actions carry significant influence that could inspire other states to similarly prioritize the deployment of heat pumps,” said Satoru Akama, CEO of Daikin Comfort Technologies North America, Inc. “This collaboration

is a testament to our shared commitment of expanding access to such energy-efficient heat pumps in California. We hope The California Heat Pump Partnership can serve as a future blueprint across the U.S., particularly the critical need of deploying inverterbased heat pumps, which provide energy savings, reliability, and affordability across communities.”

“CEC commends Daikin for its significant commitment of resources and expertise to help the Golden State meet our decarbonization goals,” said California Energy Commission (CEC) Commissioner Andrew McAllister. “Daikin’s tremendous brand awareness and global reach will accelerate market growth for efficient HVAC heat pumps, improve Californians’ homes, and expand our clean energy workforce.”

Regulatory and marketplace barriers have thus far prevented broader market and consumer adoption of heat pumps. As the HVAC industry continues to develop innovative solutions to meet state and nationwide carbon emissions reduction goals, Daikin’s new

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Osaka, Japan, air conditioners have become vital to people’s lives around the world, and yet they emit large amounts of CO2 through energy consumption during use and from the impacts of their refrigerants. As the only manufacturer in the world to produce both air conditioners and refrigerants, Daikin recognizes it has a major social responsibility. Daikin formulated Environmental Vision 2050 in an effort to achieve net zero greenhouse gas emissions (carbon neutrality) by 2050. Under the Fusion 25 Strategic Management Plan, which targets fiscal 2025, Daikin has positioned “Challenge to achieve carbon neutrality” as one of its growth strategies. The target for this strategy aims to lower net greenhouse gas emissions by 30% or more in 2025 and by 50% or more in 2030, with 2019 as the base year.

Daikin has a “Simple. Powerful. Sustainable.” approach to decarbonization that revolves around the core technologies—lowglobal warming potential (GWP) refrigerants, inverter compressors and heat pumps—developed to create comfortable, efficient, and sustainable spaces to live and work. From a United States and Canadian perspective, Daikin is promoting decarbonization through advancements in fully communicating equipment with inverter heat pump technology. Daikin continues to expand its Daikin FIT heat pump product offerings which we believe provide the best solution to address the need for efficient products, alternatives to traditional fossil fuel heating systems and reduced refrigerant volume, compared to cube style R-410A systems of like capacity, which is key.

Daikin has chosen R-32 refrigerant. We believe R-32 is the best choice to realize decarbonization goals for several reasons. First, it is a proven commodity. R-32 is the global low GWP refrigerant standard with over 230 million installations worldwide. It is a simple refrigerant because it is not a blend like other A2L alternatives or even R-410A. As a pure, single-component refrigerant, R-32 can be topped off and recharged in the field, in both liquid and gas phases, without changes in composition. It is easy to clean and reuse on-site and is easy to reclaim off-site

with a simple cleaning process, particularly as compared to blends with HFOs that are typically reclaimed by being distilled to their pure compounds and then remixed. It is more efficient and has more capacity than other A2L alternatives like R-454B. R-32 is readily available and is not a proprietary refrigerant.Daikin’s Manufacturing Operations Team has a goal to achieve net zero CO2 emissions by 2030, including our Quietflex operations. Net zero emissions efforts include reductions on liquified petroleum gas (LPG), fluorinated greenhouse gases (F-gas), natural gas, electricity and diesel. Our different pillars for this strategy are based on 1) Development of stringent internal rules and standards, 2) Supporting social recognition of carbon neutrality, and 3) Technological development. Daikin has plans in place and has committed the capital investment needed to develop and implement new technologies as we also adopt current solutions.

Finally, DNA is investing in refrigerant recovery. For more than a year now, through our company owned distribution channels, we have been actively recovering refrigerant from our contractors. We have established a simple program for contractors to participate in and have established aggressive targets for our sales teams to make it easy and desirable for our contractors to get paid for used refrigerant that can be recycled and reused.

CB: Please share an update on the status of Daikin’s A2L refrigerant product development related to making products available to contractors by fall/end of 2024.

DW: From an R-32 readiness perspective, we have been selling Daikin ATMOSPHERA ductless mini-splits with R-32 refrigerant since late 2021 in the United States where local codes allow. We have launched two additional R-32 ductless mini-split systems, Daikin ENTRA and Daikin OTERRA, earlier this year. We will continue to introduce additional single mini-split pair and multiport systems throughout the remainder of the year. For unitary product, we are ready to begin manufacturing in our DTTP facility.

Our plan is to begin launching these products after the summer cooling season to simplify the transition for our contractors.

commitments will help to foster the right market conditions, industry training and consumer awareness to spur widespread heat pump deployment.

Daikin’s five commitments are as follows: 1. Daikin is committed to maximizing its local production capacity and forging a path to one million heat pump solutions in California by 2030.

2. Daikin will expand its California workforce and partnerships to help achieve the state’s goals, including: • Establishing new distribution locations.

• Opening new branch training centers focused on heat pump installation training.

3. Daikin will open a sustainability and innovation center and other customer experience showrooms in major cities across California. These physical locations will demonstrate the benefits of inverter heat pumps and other decarbonization technologies and solutions.

4. Daikin will partner with California utility companies to accelerate the transition to inverter-based heat pumps. This includes: • Collaborating with utility partners to increase education about the benefits of inverter technologies and their installation.

• Promoting the widespread use of inverter technologies through the creation of incentive programs.

• Developing products that help improve efficiency and reduce the cost of eventual panel upgrades when converting to heat pumps.

5. Daikin will continue to play a leading role in the launch of the new California Heat Pump Partnership and support the development of a blueprint for installing six million heat pumps by 2030. This will include the promotion of inverter-based heat pump adoption through consumer marketing, workforce and community college training, supply chain integration, and government partnerships.

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HVAC SERVICE | BY CHRIS MORIN

How to Use ACCA-Approved Manuals J and S Correctly Why are contractors not taking Manual J seriously?

Unfortunately, many think ‘nobody is going to notice.’

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he Air Conditioning Contractors of America (ACCA) has clearly published guidelines called Manual J on HVAC load calculations and Manual S on using those results to choose the right residential heat pump system.

Specifically, Manual J should be used by contractors for producing HVAC equipment sizing loads for single-family detached homes, small multi-unit structures, condominiums, townhouses and manufactured homes. Manual S is a comprehensive guide that should be used for selecting and sizing residential heating, cooling, dehumidification and humidification equipment.

However, studies from the Department of Energy and my own conclusions from talking to HVAC contractors while teaching courses on Manual J show that slightly less than half of them do comprehensive load calculations. Instead, many HVAC contractors use inconsistent methods or guesswork, which can result in poor system performance.

But why are contractors not taking Manual J seriously? A question from a contractor in one of my recent courses illustrates the issue. “Is anybody going to notice?”

Yes. Building inspectors, manufacturers and distributors are starting to notice when load calculations are done incorrectly.

When a heat pump system has a problem, the first thing these professionals ask for is the load calculation to verify whether the heat pump system was designed correctly.

How to NOT do Manual J calculations Developed by the ACCA, Manual J, v. 8 for residential applications is American National Standard-accredited (ANSIaccredited) and written into the International Code Council (ICC) codebooks as a baseline for calculating HVAC loads.

square foot by ton, without considering insulation, windows, direction and other aspects of the home.

Contractors have gotten away with using these methods because most are far from being experts in load calculations, and it’s not always enforced. One town might be strict and mandate a contractor follows Manual J, while another town takes payment for a permit without looking at the paperwork. The level of enforcement is drastically different from one locale to the next.

Completing a Manual J correctly isn’t complicated once a contractor learns what to look for and how to do one.

Four areas most-impacting heat loss and gain

Developed by the ACCA, Manual J, v. 8 for residential applications is American National Standard-accredited (ANSI-accredited) and written into the International Code Council (ICC) codebooks as a baseline for calculating HVAC loads.

ACCA

Unfortunately, contractors often choose their own incorrect methods for calculating codes. Some use: • The eyeball method—The tonguein-cheek Manual E, better known as the eyeball method, happens when a contractor looks at a house and unscientifically determines tons of load the home needs based solely on the size.

• The finger method—A contractor stands across the street and holds up two, three, or four fingers to cover the house to determine how many boiler sections are needed. If three fingers cover the house, voila!

A three-section boiler will work, the contractor thinks.

• The square-foot-by-ton method—A contractor makes a complete guess as to the load needed by calculating

The Manual J load calculation is a formula used to identify a building’s HVAC calculation—specifically the peak heating and cooling loads, or the heat loss and heat gain, needed for designing a residential heat pump system. Manual J can be used to determine heating and cooling for a home based on its physical location, the direction it faces, the humidity of the climate and insulation R-values of the walls, ceiling and floor, among other factors.

Manual J software is simply a calculator, so it’s only as good as the input it receives. If an HVAC contractor guesses or inputs the wrong information, they’ll get the wrong answer.

There are four main areas impacting heat loss and heat gain across the thermal boundary of a home.

Heat loss encompasses: • Temperature difference— Calculations based on location and outdoor temperatures of the home, comprising 75% of heat loss.

• Air exchange/infiltration— Calculations based on a range of looseness to tightness of a home, determined by air changes per hour and square footage of a home, comprising 25% of heat loss.

If a heat pump is sized incorrectly, it is typically due to contractors guessing the temperature difference and infiltration rate rather than using Manual J.

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Heat gain’s largest contributors: • Solar heat gain—Fenestration, such as the placement of windows and glass doors, comprises 50% to 65% of heat gain.

• Internal gains—All appliances and people comprise about 15% of heat gain.

Most HVAC contractors miss the internal gains portion of Manual J by adding too many people or inputting the wrong appliance block load amounts.

Chris Morin is a seasoned Business Development Sales Manager at Mitsubishi Electric Trane HVAC US (METUS) with a proven track record in driving growth within the HVAC sector. He is proficient in all facets of Heat Pump Systems and Residential AirConditioning and Gas Heating, including sales, design, installation, service, and maintenance.

Manual J to properly calculate loads for residential heat pump systems. In doing so, they will have the right information to perform an ACCA-approved Manual S so they install the right-sized heat pump system for a home, making homeowners happy while ensuring compliance with local building codes, regardless of enforcement.

Choosing approved Manual J software providers When performing a Manual J, I suggest contractors use one of these ACCAapproved Manual J v.8 software platforms to ensure compliance with building codes: • Wrightsoft features an easy-touse, drag-and-drop interface that enables a contractor to do room-byroom calculations.

• Elite RHVAC is often chosen by contractors who prefer worksheets and drawing floor plans for load calculations.

• Conduit Tech uses iPad LiDAR and iPad Pro to scan the home and windows to create a quick and accurate Manual J at no cost.

• Cool Calc is free to use but requires payment to generate a report. The contractor can tap on Google Maps, which pulls in a residence’s square footage.

• Carmel Software HVAC is an inexpensive choice that features a native IOS application which generates on screen reports in a similar worksheet style to other approved options.

• Adtek Acculoads are often chosen by contractors who prefer worksheet styles for load calculations.

HVAC contractors should steer clear of non ACCA-approved Manual J software as it could be missing a critical component or simply hasn’t gone through the certification process.

No more guesswork to complete Manual J correctly The bottom line is that every HVAC contractor should perform an ACCA-approved

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PRODUCTS, TRENDS, AND SERVICE AND BUSINESS MANAGEMENT INFORMATION

Aligning Refrigerants with AIM Act ‘Sector Controls’ for GWP Limits ‘Sector Controls’ will be implemented as early as January 1, 2025. By Charles Allgood, PhD

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s the production, importation, and consumption of HFC refrigerants continue to be phased down according to the U.S. EPA American Innovation and Manufacturing (AIM) Act, the HVACR industry is preparing for a second tier of requirements limiting HFC use. Often referred to as “sector controls,” these will be implemented through the Act’s Technology Transitions rules and will start as early as Jan. 1, 2025. As the name implies, this program was strategically developed to help enable a smooth transition away from HFCs and support adoption of A2L refrigerants. In essence, these rules call for GWP limits for refrigerants based on specific applications, including refrigeration, air conditioning, heat pumps, and more. Because there are dozens of sectors and subsectors outlined in the Technology Transitions rules, focusing on just these few GWP limits—which apply to a majority of the industry applications—can help you in your approach and planning:

GWP <700—such as residential and light commercial A/C, large chillers Many important sectors—including residential and light commercial air conditioning, and large chillers for applications such as industrial systems and ice rinks—are required to have a refrigerant with a GWP limit of <700 (100-year AR4) in new equipment. These requirements will start as early as 2025 for certain systems.

As a result, systems originally designed to work with refrigerants such as R-410A, R-507, and R-134a will now be designed to operate on lower-GWP gases like R-513A, R-454B, and R-454C. In some of these sectors, the new limits will require a shift from traditional low-toxicity, nonflammable A1 refrigerants to mildly flammable A2L products. This shift elevates the importance of the massive effort underway industrywide to train and prepare service technicians for working with A2L refrigerants.

GWP <300—included, but not limited to, food retail, and industrial refrigeration A GWP limit of <300 has been set for some medium-sized systems—those with a maximum 200 lb. charge size—commonly found in the food retail, and industrial refrigeration sectors.

Systems such as remote condensing units for walk-in coolers and freezers, cascade systems, and similar units that used R-404A and R-134a, are now being transitioned to lower-GWP

A2L products like R-454A. These A2Ls offer better or equivalent performance in terms of capacity and energy efficiency compared to the legacy gases.

GWP <150—from vending machines to large supermarket systems and more The <150 GWP limit has been “pressure tested” in the mobile sector, which more than a decade ago began transitioning vehicle AC from R-134a to R-1234yf. As a result, many HVACR professionals are already familiar with the <150 GWP limit that will soon impact several additional sectors on the stationary side of the industry.

Most notably, sectors requiring a GWP limit of <150 include some of the smallest applications—such as vending machines, stand-alone units, and household refrigerators—and some of the largest, such as supermarket retail systems with a >200 lb. charge size. As with other segments that have used higherGWP HFCs like R-134a and R-404A, many systems and store architectures impacted by upcoming sector controls have been evolving to function on new A2L refrigerants, such as R-454C, offering a GWP of 148. In addition, other larger systems are using R-744 (carbon dioxide), and where safety standards allow, some utilize highly flammable A3 refrigerants like R-290 (propane).

The AIM Act Technology Transitions have been established to drive a shift toward solutions supporting decarbonization, when and where it makes sense for the HVACR industry. The applications listed above offer a few important examples and there are many details that come with these rules. However, focusing on these three major groupings is a solid starting point.

Understanding which refrigerants are aligned with the sector controls and likely to be utilized can be helpful as the transition ramps up in the years ahead.

Charles “Dr. Chuck” Allgood holds a PhD in chemistry, has more than 30 years of experience in the HVACR industry, and is a respected speaker at many industry events. In addition to Chemours, he’s worked for the National Institute of Standards and Technology. Dr. Allgood has held a variety of research, development, business, technical service, training, and applications development positions with Chemours. Most recently, he has focused on the development of low-GWP refrigerants—including Chemours Opteon™ brand refrigerants—and educating industry professionals about the changing regulatory landscape and A2L refrigerants on the market.

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Minimize HVAC System Downtime with Condition-Based Monitoring Danfoss

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re you looking for ways to minimize downtime in your HVAC system? Would you like enhanced awareness of potential maintenance problems before they reach a critical stage? Condition-Based Monitoring (CBM) may be the solution you need.

CBM is a type of predictive maintenance strategy that uses sensors to continuously measure the status of equipment over time. CBM is not a new technology for predictive maintenance; however, it is new to implementation within variable frequency drives (VFD). When included as a software feature add-on in VFDs, CBM increases customers’ knowledge of what is happening in their systems so they can be notified of maintenance concerns prior to issues becoming critical, thereby reducing system downtime.

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Peace of Mind with 24/7 Monitoring CBM can monitor three points: motor stator winding, load envelope and vibration. With motor stator winding monitoring, the VFD uses its current monitoring capabilities to detect shortcircuits in the motor before the motor burns out. Load envelope monitoring compares actual system performance with baseline data to determine if components are running optimally or if there are performance issues. Vibration monitoring can detect mechanical misalignment, wear-out and looseness across all VFD speeds.

When the VFD is initially commissioned, the embedded CBM software can be programmed to run a baseline of normal operation over a specified time range, from a few days up to six months. Once the baseline is established, thresholds are set

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and the VFD will constantly be comparing what is happening in the system with the standard baseline. If the current operation goes beyond the threshold, the VFD will trigger a warning to notify the user that something is wrong.

There are two levels of warnings that can be programmed accordingly. If the system goes considerably beyond the two warning thresholds, the VFD can trigger an alarm and discontinue power to the motor until the fault has been cleared by a technician.

These notifications can be shown on the VFD display and pushed to the building automation system and/or remote monitoring cloud services.

Insight for Maintenance Teams CBM is not meant to eliminate maintenance teams but rather, increase their real-time knowledge of what is happening in the system. If the user is stocking motors or running into long lead time issues when their motor fails, CBM can help bridge the gap.

Short-circuits in the motor winding occur over time so by detecting them early, the end user can be prepared to replace the motor prior to the problem reaching a critical stage.

Motor stator winding monitoring will send a warning prior to motor failure and allow for the additional time that is needed to obtain a replacement. Load envelope monitoring can send warnings to maintenance staff about leaks in the water system, clogged air filters, broken pump impellers or pumps that have

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become fouled/sanded. These warnings provide useful information to help keep the system running efficiently and smoothly.

Vibration monitoring will keep track of any changes in vibrations that would start to wear out mechanical equipment more quickly.

The VFD will monitor acceleration/deceleration and all speeds in-between that the VFD is running. Operators can choose to monitor any or all of these points in their systems.

In the current climate of increased lead times and expectations of decreased downtime for systems and buildings, CBM will give you an edge. Most maintenance teams will monitor only some of the points which CBM is capable of monitoring. Those teams may also only go out with a meter at a specific point in time when the VFD may be operating at a speed where the issue is not occurring. Undetected problems lead to the continued degradation of components in the system, which may not be noticed until the system fails and operation is halted. CBM will keep you notified at all frequency levels 24/7/365.

For further information and questions on Condition-Based Monitoring, and/or help in determining the right VFD for your application, reach out to Danfoss Drives at (888)-DANFOSS or a local highly qualified Danfoss Drives partner.

New Leadership at CoolSys CoolSys, the market-leading provider of sustainable refrigeration, HVAC, energy, and engineering solutions, announced additions to its executive leadership team as the company positions itself for continued growth and expansion.

The company has expanded its C-suite with the appointment of Alan Johansen as Chief Financial Officer (CFO); Brady Bagwan as Chief People Officer; and John Harrison as President, Commercial and Industrial Division(C&I).

Chief Financial Officer Alan Johansen will be responsible for driving financial strategies aligned with the company’s growth objectives. He brings more than two decades of experience in financial leadership across diverse industries to his role with a strong background in financial planning, operational finance and strategic decision-making skills.

He has held key roles at prominent private equity-backed companies such as Teranex, Inc., Industrial Container Services and Qualawash, where he led initiatives in financial management, KPI optimization, M&A and strategic growth.

Chief People Officer Brady Bagwan will lead the human resources function and support the company’s growth and talent development objectives. His expertise includes HR technology, change management and building highperformance collaborative teams. Prior to joining CoolSys, Brady held leadership positions at Morgan Truck Body, J.B. Poindexter & Co, Inc., and Kiewit.

John Harrison will lead the company’s C&I division with the goal of increasing growth and profitability. From his experience in previous senior executive management roles, Harrison brings a strong track record of operational and commercial expertise, team building, talent development, mergers and acquisitions, and organic growth. coolsys.com.

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GUEST EDITORIAL

Ways to Greater Profits

S Aaron Husak Aaron Husak is owner and CEO of Balance Comfort, Fresno, Calif., and a member of the CB Influencers Class of 2024.

ummer is the best time to look at what you the attic into the home. This presentation can be and your team can offer to complement very convincing for why air sealing is important.

HVAC system replacements and increase In the summertime, hot air will travel the path of your profit margins. Since you’re already on the job least resistance and will travel from the attic down site and have invested in acquiring the customer, it into the home. makes sense to maximize your revenue potential 2. Air Filtration Products: Upgrading the whenever you’re on a call. Here are some upgrade customer’s filtration system to a 4-inch media will suggestions. enhance indoor air quality and protect the HVAC 1. Attic Insulation: If you don’t provide insula- equipment. To ensure transparency, communicate tion services, partner with an insulation company the cost of replacement filters and replacement to offer upgrades or replacements. Removing exist- frequency for the specific system you’re using. We ing insulation if it’s compressed, water-damaged, have started using a product by Zephyr, based in or infested with rodents can Las Vegas. It is a three-inch improve energy efficiency.

‘Insulation is a natural extension filter designed to be installed in most ceiling return cans, Air-seal the attic floor and of HVAC services. You’re often depending on the filter slot. install new insulation propservicing equipment located in an It’s slightly smaller than the erly to enhance the system’s performance. In California, attic space, the most notorious opening, with a foam gasket fiberglass or cellulose or foam around the outside. It fits in a region for heat loss and gain.’ are offered. Foam insulation ceiling return like a one-inch is another option but extenfilter. Additional filtration syssive training and equipment are required and is a tems are also available from the OEMs or others pretty intense process. If you don’t provide these like Aprilaire. services now identify a professional that is ideal 3. Return Air Upgrades: Evaluate the capacity of for your climate. the existing return duct to provide adequate airflow Insulation in most California homes was either for the air conditioning system. Airflow requirepoorly installed, applied in an inadequate amount, ments for heating are not the same as they are for or has become damaged by rodents or moisture. In cooling. In older homes, especially in the Eastern either scenario, the insulation is worthless and may US, the duct system may not have been designed be an opportunity for an upgrade. with cooling in mind. There will be more air flow Insulation is a natural extension of HVAC ser- required for cooling. In most California homes there vices. You’re often servicing equipment located in is one central return in a hallway. ACCA Manuals D an attic space, the most notorious region for heat and Manual S will help identify what size duct will loss and gain. It will often come up as part of your accommodate the length of the run and attic condifirst conversation with the homeowner. We will also tions. If you’re in air conditioning and not treating seal attic floors. Virtually all attics in California are issues related to airflow (which we most often find on vented, so we’re not sealing the roof deck, we’re the return side), you will have more problems with sealing the top of the ceiling or attic floor, where today’s higher efficiency or inverter-driven systems. you have plumbing or electrical penetrations or connections between walls where the framing is; The Review Game there are opportunities for gaps and heat will travel Positive online reviews are crucial for attracting down through those gaps, and your heat loss or gain new customers. Here are strategies to encourage is through those point of entry, most commonly in and respond to reviews: Automated Review Requests: Utilize software the ceiling.

Testing can be performed on a home with a blower that automatically solicits customer feedback upon door and visually you can show customers the air job completion. We use PulseM. It’s a method of leakage into the home with the combination of a asking customers via text to post a review on our fog/smoke machine and a blower door. By pulling service. PulseM uses happy/neutral/angry face air from the house and blowing it outside and inject- emojis. But even if customers select “happy face” ing fog into the attic you can see the air leakage in maybe 20 percent will go on to provide a more

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detailed review. We have an additional system in place to send out reminders to leave us a review after 24 hours and 72 hours.

Monitoring and Engage: Ensure the review request system is working correctly and monitor the results regularly. Respond promptly to both positive and negative reviews to demonstrate your commitment to customer satisfaction. Customers are more likely to complain about bad service than provide a compliment for good service.

Responding to negative and positive reviews: Respond to a positive review with a “Thank You” message, and a mention of

the service you provided (“Thank You for using us for your HVAC maintenance.”) For negative reviews, I personally call the customer immediately. If you receive a complaint related to the cost of the repair, respond by explaining all that went into the repair.

It’s essential that you try to establish direct contact with the owner in all situations. Include your direct contact information on invoices, and encourage customers to reach out directly to the owner if they’re not completely satisfied. Address concerns and resolve issues proactively to prevent negative reviews.

GUEST COLUMNIST | BY JOSH WEISS

Fighting Deepfakes

I

magine if an AI-generated video of a worker wearing a company uniform doing something inappropriate in a customer’s home circulated online. Whether the video was real or not, public concerns of fraudulent activity could arise, ultimately affecting the company’s reputation.

Deepfakes—or AI-generated video, photo, or audio files—aren’t just for celebrities and politicians. They can also be used to manipulate or spread misinformation that can destroy an HVACR company’s reputation. In today’s digital age, anyone with a computer can access online tools that create deepfakes. In fact, depending on the AI tool being used, it can take less than 30 seconds to create a damaging deepfake. As AI technology spreads and becomes more accessible, business leaders must prepare for how to handle a deepfake crisis. Below are simple tips that could save their business.

Prepare a Crisis Playbook. Every company should have a crisis playbook in case an incident happens. AI is not going away.

Companies must update their crisis playbooks to incorporate an AI crisis, this includes deepfake attacks. HVACR companies should list potential deepfakes that could damage their reputations. Some HVACR industry examples of damaging misinformation could include; security risks for homeowners, damage to property, misrepresentation of before and after results, or fake testimonials or reviews. After listing potential crises, put a plan of action into place to prepare your team in an emergency. HVACR businesses rely heavily on positive reviews and a strong reputation. A crisis communications playbook is crucial for companies who want to retain their positive image to clients and customers.

Prove the Deepfake is Fake. If a deepfake attack happens your company must be able to verify that the deepfake is not real. It’s more likely that people will believe your company if the deepfake is verified as false from a third-party source. Create partnerships with third-party AI experts whom you can reach out to if needed. When a crisis hits, customers and clients need reassurance that they can trust your company. This is especially important for HVACR companies that depend on customer trust for business continuity and success.

Employee Training. Most often an employee will be the first to recognize that misinformation about a company is being spread.

Educate your employees and provide them with a step-by-step process that they should follow if they believe they have seen a deepfake that negatively affects the company. First on that list is reporting the Deepfake to company leaders so that they can implement the Crisis Playbook plan to disprove the Deepfake.

Remember that media spreads fast and employees need to act quickly so leadership can spring into action before a deepfake is spread too far.

Josh Weiss is President and founder of 10 to 1 PR, a strategic communications firm focused on helping home services companies operating in multiple states grow positive brand awareness. He is also an expert in crisis communications. Reach Josh at josh@10to1pr.com.

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30 | CONTRACTING BUSINESS | JULY 2024

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THE RANT BY MATT MICHEL

Lies Contractors Tell Themselves

T

here have always been lies contractors tell themselves. Some never seem to change.

Others vary with the times. Here are eight lies contractors are telling themselves in 2024.

I Cannot Charge More

When an envious contractor points a finger at his more successful peer, three fingers are pointed back at him.

This is the most common lie contractors tell themselves. Whatever they charge, in most cases it is not enough to earn the owner a return for the risk taken, provide capital to reinvest in the growth of the business, pay the team good wages and benefits, and fund the training necessary to remain stateof-the-art in technology and service.

In truth, many contractors limit their pricing based on their perceived self-worth. They fail to recognize that they deliver specialized skills and expertise their customers lack. A contractor’s perceived self-worth is not the customer’s perception of the value they deliver. What’s the value of a cool home on a hot day, a warm home when it’s freezing outside, or clean air when you child has asthma?

Successful Contractors are Crooks Do well in any profession and you will become the target of ungracious envy. When a contractor does well in a market over time, it is due to excellent business practices. Less successful contractors often disparage more successful peers. To do otherwise is to take ownership of, and responsibility for their less stellar performance. Thus, they whisper slanders to other underperforming peers, claiming successful contractors overcharge, are not as technically pure and take shortcuts, or are simply the beneficiaries of luck.

When an envious contractor points a finger at his more successful peer, three fingers are pointed back at him. The successful contractor shows what he could become if he was willing to overcome selflimiting behavior.

I Don’t Need to Grow

Matt Michel will be a keynote speaker during 2024 Service World Expo.

Register now for the Service World Expo in Orlando. Learn more at ServiceWorldExpo.com.

The reason the industry is awash with very small contractors is small contractors do not believe they need to grow.

This is selfishness at play. They ignore the possibility of illness or getting hurt from an accident.

If they can’t work, their competitors will take care of their customers, but who will take care of their families? The government? Every company needs to at least grow to the point where the it can operate without the owner. Only then, does it become a going concern. Only, then does the contractor own a business, instead of a job.

No One Wants to Work One of the excuses contractors give for staying small in their inability to find people to work. They say no one wants to work. In reality, no one wants to work for them.

There are experienced technicians working for private equity back contractors who would jump for a company with a family atmosphere, but they expect to be paid what they are worth. As Contracting Business Hall of Fame contractor, Steve Miles says, “If your technicians aren’t the best paid in your market, it’s not their fault.” Pay well, offer competitive benefits, train, recruit all of the time, and charge enough to cover the expenses. With effort, you will find plenty of people who want to work.

The Industry Guru-of-the-Day Has All of the Answers The industry has always had its share of gurus.

Lately, a new cast of characters has emerged who promise easy answers for cold cash. In contrast to the industry membership groups, the gurus establish personality cults with followers. Some appear to have found fast success in the industry.

Some come from other industries. Contractors are supposed to know they are good because they are pictured with fast cars or jet planes, and tell you they are the best.

Contractors should investigate those gurus with appealing messages, while keeping the fact in the back of their mind that exotic cars can be rented.

Private Equity Will Dominate Private equity (PE) is certainly making its presence known in the service trades. Many contractors are worried that PE will overwhelm them and crush any independent contractors not acquired. Nonsense.

As prior consolidation efforts proved, it is extremely hard to gain a sustainable competitive advantage by rolling up residential contracting companies. Roll ups can buy better, but not that much better. They can offer better pay and benefits, but these can be matched. In fact, every advantage PE has, besides capital, can be matched or overcome by well run, more nimble, less bureaucratic, more motivated independents. Moreover, there is a wave of owners whose non-competes will soon expire.

Expect many to start new companies, only this time they will not only have more knowledge and experience, but be well financed in their own right.

Edited for space. Find Matt’s entire article online, at contractingbusiness.com/55089002.

32 | CONTRACTING BUSINESS | JULY 2024

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