Contracting Business - September 2026 by Endeavor Digital Editions

2026 Residential Heating Guide, Page 14

September 2026 contractingbusiness.com

HELPING HVACR MANAGERS RUN BETTER BUSINESSES SINCE 1944

Rethinking

Maintenance Plans

Technology is changing how contractors deliver value—and how homeowners view maintenance agreements.

PAGE 8

ALSO IN THIS ISSUE:

24 Meet the HVAC Young Guns 28 AI in HVAC 30 The Evolution of Refrigerants

2609CB_C1-4_Covers.indd 1

8/26/26 9:05 AM

Remotely Manage HVAC Systems and Reduce Energy Usage With the Power of Skyport. TM

Skyport transforms Venstar thermostats into a centralized HVAC management platform, delivering real-time visibility and control across all locations from a single, intuitive dashboard. Monitor system performance, make instant adjustments, and respond to alerts before comfort issues escalate. From one thermostat to ten thousand, Skyport scales effortlessly, simplifying HVAC management.

• Instant System Visibility • No Fees or Subscriptions • Real-Time Alerts • Single Dashboard Control • Global Changes • Fewer Truck Rolls, Faster Fixes

Skyport is

FREE

with every Venstar WiFi Thermostat

2609CB_C1-4_Covers.indd 2 2606CB_Venstar.indd 1

8/26/26 9:05 AM 5/7/26 4:13 PM

SEPTEMBER 2026 | VOLUME 83, NUMBER 9

8 ON THE COVER: The future of HVAC maintenance, smart monitoring gives contractors new ways to engage customers, reduce churn, and build recurring revenue. Source: Midwest Heating & Cooling

COVER STORY

8 Beyond the Tune-Up: Rethinking the

HVAC Maintenance Agreement

Connected HVAC technology is helping contractors build recurring revenue and long-term customer loyalty.

COLUMNISTS

6 First Word | Nicole Krawcke

FEATURES RESIDENTIAL HEATING GUIDE

34 The Rant | Matt Michel

14 2026 Residential Heating Guide

DEPARTMENTS

Explore the latest high-efficiency furnaces, boilers, and heat pumps.

4 What’s New Online

CONTRACTING BUSINESS SUCESS

24 Meet the Young Guns of HVAC: 6 Techs

32 Ad Index

Proving Age Is No Barrier to Success

Meet six HVAC technicians under the age of 25 who are proving that the future of the skilled trades is already hard at work.

TECHNOLOGY

28 AI Finds Its Place in the HVAC Business

From handling calls to dispatching, AI is becoming a vital tool, with companies emphasizing strategy, training, and employee buy-in for successful integration.

REFRIGERATION SERVICE TODAY

30 The Evolution of Refrigerants: From Freon to A2L and Beyond From refrigerant detection systems to ASHRAE 15.2, here’s what HVAC contractors need to know about safely installing, servicing and designing systems using A2L refrigerants.

September 2026 | CONTRACTING BUSINESS | 3

2609CB_003-5_TOC OnlineTOC.indd 3

8/26/26 9:17 AM

Online@contractingbusiness.com TOP STORIES ▶ The Hidden Cost of Skipping HVAC Technician Training During the Busy Season

273745058 | Business © Bancha Singchai | Dreamstime.com

The busiest months don't leave time for mistakes—here's how ongoing training helps HVAC contractors stay productive and profitable. www.contractingbusiness.com/ 55394140

PODCASTS ▶ The Case For Putting HVAC Prices Online Lauren Acosta Huckleberry explains how her company uses online pricing to meet changing homeowner expectations, generate leads, and provide customers with pricing information outside normal business hours. www.contractingbusiness.com/55397614

Editor-In-Chief, Nicole Krawcke, nkrawcke@endeavorb2b.com Art Director, Julie Whitty Production Manager, Sam Schulenberg Audience Development Manager, James Marinaccio, jmarinaccio@endeavorb2b.com Ad Services Manager, Deanna O’Byrne

CEO, Chris Ferrell COO, Patrick Rains CDO, Jacquie Niemiec CALO, Tracy Kane CMO, Amanda Landsaw EVP Buildings & Construction Group, Chris Perrino VP of Content Strategy— Buildings & Construction Group, Mike Eby VP—Buildings & Construction Group, Mike Hellmann

HVAC Training to Create Day-One Billable Technicians Chris Roth discusses why traditional trade school models often run short of preparing technicians for real-world field performance and outlines a contractor-centric approach focused on producing day-one billable techs. www.contractingbusiness.com/55392825

QUIZ ▶ 342887737 © Korn Vitthayanukarun | Dreamstime.com

Test Your OSHA Heat Safety Knowledge HVAC contractors work in some of the hottest and most hazardous conditions imaginable, from sunsoaked rooftops to stiffling attics and mechanical rooms. Test your knowledge on OSHA's guidance on preventing heat illness. www.contractingbusiness.com/ 55395030

FEELING SOCIAL? Follow us on Twitter at @ContractingBiz, as well as our sister publications, @Contractormag, and @HPACEng. Retweet our up-to-date content, send comments, questions. Expand your world of engagement with us, at no extra charge! https://www.facebook.com/CBMag

https://bit.ly/CBonLinkedin

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. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. ($ 105.00); Canada/Mexico ($ 137.50); All other countries ($ 157.50). All subscriptions are payable in U.S. funds. Send subscription inquiries to Contracting Business, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached tollfree at 877-382-9187 or at contractingbusiness@ omeda.com for magazine subscription assistance or questions. Printed in the USA. Copyright 2026 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 | September 2026

2609CB_003-5_TOC OnlineTOC.indd 4

8/26/26 9:17 AM

2609CB

BOOST RECRUITMENT AND RETENTION WITH CARHARTT®

An Apparel+ workwear program gives your business an edge in attracting and keeping top talent with quality Carhartt® gear that makes your team feel valued. Plus world class service at a convenience you never knew existed.

Weekly laundry, repairs and delivery included

No upfront cost required

cintas.com/contractingbus

2609CB_003-5_TOC OnlineTOC.indd 5 2609CB_CintasCorp.indd 1

8/26/26 9:17 AM 8/17/26 2:30 PM

FIRST WORD BY NICOLE KRAWCKE, EDITOR-IN-CHIEF

How Connected HVAC Technology Can Transform Contractor Maintenance Programs

A Homeowners may not see the immediate value of a maintenance agreement when their HVAC system is running normally.

EDITORIAL ADVISORY BOARD TOM CASEY

Climate Partners Griffin Service

MIKE CONLEY

Pioneer Heating & AC

DOMINICK GUARINO

National Comfort Institute

JESS JIMOH

Bonfe Plumbing, Heating, Cooling, Electrical & Sewer

COLLEEN KEYWORTH Online Access

EDWARD MCFARLANE Sila Services

MATT MICHEL Author

SCOTT SHARROCK

Jolly Plumbing, Heating & Air Conditioning

BRIAN STACK

Stack Heating & Cooling

s a millennial homeowner, I’m accustomed to smart home technology. I purchased my home a decade ago, right as smart thermostats were becoming mainstream. Today, I receive monthly reports on my HVAC system, my kitchen appliances, and my washer and dryer. I also have a smart leak detector installed on my water main. I love the data and insights I get into my home appliances and mechanical systems. It’s one thing to write about how temperature and humidity impact HVAC systems; it’s a different story when you’re seeing the evidence play out in your own home. This summer in Michigan has been infinitely hotter than last year! As interesting as it is to see that data as a homeowner, it holds so much more value for you, the professionals. Proactive HVAC contractors are increasingly looking beyond traditional maintenance visits and using monitoring platforms to keep an eye on customer systems between service calls. As smart-home technology becomes more common, homeowners are becoming comfortable with the idea that their HVAC equipment can be monitored remotely, creating an opportunity for contractors to bring that same connectivity into their service models. That’s where platforms such as SmartAC come in, using sensors to continuously monitor HVAC equipment and identify changes in system performance. For contractors, that data can create an opportunity to move from reactive service calls to proactive maintenance—and potentially turn equipment monitoring into a valuable tool for selling and supporting maintenance agreements. Maintenance agreements can be a powerful revenue generator for HVAC contractors by creating a predictable stream of recurring income beyond unpredictable demand for service and replacement. According to EGIA’s 2026 Contractor Survey Report, maintenance plans generate an average of just under $200,000 in annual revenue, with one in 10 contractors bringing in over $500,000 annually. For homeowners, the value is proactive system care and greater peace of mind; however, these maintenance programs also have a lot of churn. Homeowners may not see the immediate value of a maintenance agreement when their HVAC system is running normally, especially if they perceive the service as simply another recurring expense. “Traditionally, the homeowner only sees any value from a membership program two days a

year,” says Josh Teekell, founder and CEO of SmartAC. “That’s why we believe retention is so much higher when you have data flowing all the time because the homeowner is getting value year-round as opposed to only a few days a year when the tech is on site.” Teekell says HVAC contractors need to adapt their maintenance-agreement offerings to changing homeowner expectations around convenience, transparency, and technology. Homeowners very rarely want to spend thousands of additional dollars on self-monitoring equipment when the cost to replace is already so high, so Teekell believes contractors should offer retrofit technology that can work with existing systems. “Most importantly, grabbing and retaining a home that has older equipment so you can be the one to replace it when the time comes is the highest ROI thing you can do,” he says. Teekell also argues that contractors need to offer options that appeal to different homeowner buying preferences. Pricing flexibility, monthly billing, and visible value can help contractors reduce membership churn. He recommends giving homeowners multiple choices rather than presenting a single maintenance plan, including lower-cost options that incorporate technology. Monthly billing can also reduce the sticker shock associated with an annual renewal, while loyalty rewards can give homeowners another reason to stay. SmartAC’s platform, for example, allows customers to see accumulated loyalty credits in the app and monthly equipment-health reports. “It’s really just about giving them a great experience when you’re in person, reminding them of the value of that peace of mind that they’re getting through technology,” Teekell says. Turn to page 8 to see firsthand how HVAC contractors are leveraging technology to boost membership programs. The future of maintenance membership programs is about more than scheduling annual tune-ups. By combining recurring service with technology, proactive system monitoring, and visible customer benefits, contractors can create memberships that deliver value throughout the year. The goal is to give homeowners more reasons to stay while giving contractors a stronger, more predictable customer relationship—and a better opportunity to earn the next service or replacement job.

6 | CONTRACTING BUSINESS | September 2026

2609CB_006-7_First Word.indd 6

8/26/26 9:05 AM

2607CB

Bosch IDS EDGE & EDGE MAX

The Competitive Edge in Installation Flexibility

Design ed for de penda ble heatin g in co ld tempe rature s

100% capacity eezing below fr ures at er p m te h 5°F, wit COP 2.1

Designed to Pair. Built to Perform. IDS Edge is a compact, side-discharge outdoor unit built for a range of residential installs. Available in Edge

Features ▶ Up to 18 SEER2 / 10.8 HSPF2 efficiency ▶ Cold-climate capable inverter operation ▶ Supports multiple indoor units per home ▶ Compact outdoor unit design ▶ Quiet operation as low as 57 dB(A) ▶ ENERGY-STAR® and AHRI® certified

and Edge Max configurations, it delivers efficient,

▶ Designed for easy installation

dependable heating and cooling, with Max models

▶ 10-year residential limited warranty

providing cold-climate performance down to -22°F

▶ Designed for easy installation

and maintaining 100% capacity at 5°F.

▶ Intuitive controls

IDS Edge pairs easily with IDS air handlers, BMAC

▶ Spare parts readily available

▶ Support readily available

cased coils, and BGH97 furnaces. For multi-zone

▶ Easy to maintain and service

applications, it supports compatible ducted and

▶ On-board diagnostics

ductless indoor options, giving you the flexibility to design the system around the home. With inverterdriven operation, a compact footprint, and R-454B

Scan To View Bosch IDS Products

refrigerant, IDS Edge is a future-ready solution for retrofit or new construction.

2609CB_006-7_First 7 2607CB_Bosch.indd Word.indd 1

Bosch-HomeComfort.us

8/26/26 6/16/26 9:05 2:19 AM PM

COVER STORY | BY NICOLE KRAWCKE

Beyond the Tune-Up: Rethinking the HVAC Maintenance Agreement

For these contractors, connected HVAC technology is doing more than monitoring equipment—it is helping build recurring revenue and long-term customer loyalty.

or too many HVAC contractors, the customer relationship begins—and ends—with a breakdown. A homeowner calls when the system stops working, a technician makes the repair, the invoice gets paid, and everyone moves on until the next problem. Maintenance agreements offer a different model: one that keeps contractors connected to customers between breakdowns, creates a more predictable stream of revenue, and gives homeowners a reason to invest in the long-term health of their equipment. But building a successful membership program takes more than listing a maintenance plan on a price sheet. According to Josh Teekell, founder and CEO of SmartAC, HVAC contractors have

relied on maintenance agreements as their primary way to maintain ongoing relationships with customers since the 1980s. But the traditional model has a major limitation: only about 20% to 25% of homeowners sign up. “They’re using an offering for homeowners to prepay annually to have a contractor come out to their house and take a look at their equipment, but the majority of homeowners don’t want that offer,” Teekell says. SmartAC’s approach is to use connected technology, sensors, and software to give contractors additional ways to stay engaged with customers. By incorporating technology into traditional maintenance agreements, contractors can make memberships more appealing by offering

homeowners greater visibility into their equipment and the convenience of an ongoing digital relationship. The technology gives contractors a way to reach homeowners who may not want a traditional annual maintenance visit. A lower-cost monitoring-only option can maintain the customer relationship through features such as an app, online booking, and filter ordering without requiring the contractor to make an annual service visit. “The biggest benefit is using the technology for a lower-cost offering for the homeowners that don’t want the contractor to come out every single year,” Teekell says. That approach can have a significant impact on retention and revenue. Teekell

Colley Refrigeration’s signature service vans. Colley Refrigeration

8 | CONTRACTING BUSINESS | September 2026

2609CB_008-13_AC Maint Agreement.indd 8

8/26/26 9:05 AM

says annual maintenance-plan retention has increased from roughly 65% to 75% to approximately 95% among participating contractors. Over two- to three-year studies, contractors using SmartAC have also seen average revenue per home increase by about 19% to 20%. “Effectively, it’s making the memberships more valuable for them on the revenue side by keeping more homes and then monetizing them better,” he says.

The Tech SmartAC uses a three-sensor system to give contractors a continuous view of how a customer’s HVAC equipment is performing. One sensor monitors the supply air, another monitors return air, and a third is installed in the evaporator drain pan to detect potential issues, such as clogged condensate lines. Together, the sensors provide contractors with detailed information about system performance, including temperature differential, humidity, and runtime. “We have 30-second granularity of the health of the equipment all year long,” says Teekell. “More importantly, [it shows] how well the system is actually removing heat, humidity, and then heating or cooling the air.” At the heart of SmartAC is a proprietary data set built from the installed sensors. The company combines that data with artificial intelligence and machine learning to create a customized model of HVAC system performance for each home. That

allows the system to identify changes in performance and predict when a homeowner could begin to experience a loss of comfort. The technology can even incorporate weather forecasts to refine those predictions. “It’s very obvious when you look at how a system is operating over weeks, months, and years when something is trending down,” Teekell says. SmartAC can then alert the contractor to the change, allowing the contractor to contact the homeowner and discuss next steps before the issue potentially turns into a breakdown. “The goal is to give homeowners the opportunity to address problems proactively rather than waiting for a breakdown,” he says.

Real World Results Clute, Texas-based Colley Refrigeration has provided full-service heating and air conditioning services across new construction, commercial, and residential markets for over 47 years. For Owner David Hargrove, the appeal of HVAC monitoring started with a familiar contractor frustration: breakdown calls arriving at the worst possible time. “The calls coming in always seemed to land at the worst time—4, 5, 6 p.m., right when people were getting home from work,” Hargrove says. “I kept thinking, wouldn’t it have been nice to know that unit was broken at noon instead of 7 p.m.?” Hargrove experimented with two other monitoring services before choosing

SmartAC. The difference, he says, was simplicity. “Everything else that I’d tried before was super technical,” he says. “We ended up running ourselves ragged over nuisance calls.” With SmartAC, however, adoption has remained strong nearly three years later. “Our techs are still pushing it, customers are still buying it, and cancellations are low.” The sensors have also given Colley’s office staff a more compelling way to sell memberships. Rather than pitching customers solely on twice-a-year maintenance visits, staff can explain that the company is keeping an active eye on the system between visits. The technology also helps technicians demonstrate the value of their work. If a system’s performance improves after a maintenance visit, the homeowner can see the difference in the data. “Now we can actually show that the system wasn’t working like it was supposed to. We came out, cleaned it, and you can see the improved performance,” Hargrove says. “They like being able to have that visual.” Hargrove says the ongoing monitoring has also strengthened membership retention by keeping Colley Refrigeration connected to homeowners throughout the year. That connection is particularly valuable when the system generates a water or performance alert. Colley’s dispatcher and service manager can review the alert, contact the homeowner and gather information before sending a technician. Historical performance data can also show whether a system has been gradually degrading or experienced a sudden failure, giving the technician a clearer picture before arriving at the home. That ongoing connection also supports the company’s broader focus on retention. “I’d rather keep my customers than have to go after new ones. New ones are expensive,” Hargrove says. Mukwonago, Wisconsin-based Midwest Heating & Cooling was founded in 2018 by Brad Spaugh. The decision to adopt SmartAC two years ago was rooted in a simple goal: stop waiting for homeowners to discover HVAC problems and start identifying issues before they become emergencies. “Our job is to help keep them safe and comfortable,” Spaugh says. “So we made the choice to be proactive for them and help monitor their systems.”

September 2026 | CONTRACTING BUSINESS | 9

2609CB_008-13_AC Maint Agreement.indd 9

8/26/26 9:05 AM

COVER STORY

A Midwest Heating & Cooling technician installing the SmartAC sensor kit. Midwest Heating & Cooling

The approach was particularly appealing because SmartAC could work alongside the thermostats homeowners already preferred. After experimenting with different thermostat brands and approaches, Spaugh wanted a monitoring solution that would not require customers to change their existing equipment. “It really came down to what could we use that allowed the customer to still have the thermostat of their choice, but allowing us to still blend with what they like,” he says.

For Midwest Heating & Cooling, memberships are central to the business model. Spaugh calls them “the lifeblood of who we are as a company,” making customer retention a critical priority. SmartAC has helped strengthen that relationship by giving the company an ongoing reason to interact with homeowners between maintenance visits. One early experience demonstrated the value of the technology. A homeowner noticed water on her basement floor but did

not know where it came from. A SmartAC water-leak alert reached the company shortly afterward, prompting Midwest to dispatch a technician. The technician discovered that the homeowner’s dogs had knocked the air conditioner’s drain line loose. The issue was caught within about two hours, allowing the company to contain the leak before it caused significant damage. “She was very appreciative of that,” Spaugh says. “And that’s when I knew— OK, we need these on everything we can get them on.” That type of real-world success also helped win over technicians who were initially skeptical about adding another piece of technology to their workflow. As technicians began seeing sensors identify problems homeowners were unaware of, their confidence in the platform grew— and so did their willingness to promote SmartAC-equipped maintenance plans. Spaugh says that has translated into stronger membership retention. Before adopting SmartAC, Midwest’s retention rate was roughly 60%; today, he says, it is approximately 80%. “Retention rates are at an all-time high now, so I would have to attribute that to this product in a lot of ways,” he says.

Pricing for Retention: Give Homeowners a Choice Pricing strategy can make or break an HVAC maintenance program, particularly as contractors look for ways to reduce membership cancellations. Based on data from hundreds of contractors using SmartAC, Josh Teekell, founder and CEO, says higher-end plans generally perform well in the $25-$35-per-month range, but contractors should avoid making that their only option. “If you’re going to charge $30 a month for a plan, the key is having something lower cost as well,” Teekell says. That could mean offering a one-visit maintenance plan, a lower-priced technologyenabled plan, or a basic plan that includes an app. The goal is to give homeowners a choice rather than forcing them to make a simple yes-or-no decision on a $30 monthly commitment. “You want the homeowner to be thinking, which one do I

want? Not just, do I want the $30-a-month thing?” he says. Teekell also recommends monthly billing to reduce cancellation friction. Annual billing can create a larger financial shock for homeowners or require contractors to actively chase renewals. But pricing is only one piece of the retention equation. Homeowners are more likely to renew when they continually perceive value from their membership. Traditionally, Teekell says, homeowners might have experienced that value only on the two days a year when a technician performed maintenance. Smart monitoring changes that equation by giving homeowners access to equipment data throughout the year. “The homeowner is getting value all year round every day as opposed to only on a few days a year when the tech is on site,” he says.

Loyalty rewards can provide another incentive to stay enrolled. Rather than tracking credits internally, contractors can use technology to show homeowners their accumulated rewards and savings. That creates a tangible benefit that grows over time—and gives customers another reason to think twice before canceling. “It’s really just about giving them a great experience when you’re in person, reminding them of the value of that peace of mind … and then building up that savings bank over time can really help them think twice about canceling a membership if that’s going to mean they leave hundreds of dollars of accumulated credit on the table,” Teekell says.

10 | CONTRACTING BUSINESS | September 2026

2609CB_008-13_AC Maint Agreement.indd 10

8/26/26 9:05 AM

2603CB

ProgrfifififivfifiCfifiufififiyfiInfiurfincfifiCofifi&fififfififififififififi

Small business owners’ to-do lists can add up. So see if you can save money on a commercial auto quote at ProgressiveCommercial.com.

Get a quote online in as little as 8 minutes

2609CB_008-13_AC Maint Agreement.indd 11 2603CB_ProgressiveCommercial.indd 1

8/26/26 9:05 AM 2/5/26 9:41 AM

COVER STORY

“The homeowner is getting value all year round every day as opposed to only on a few days a year when the tech is on site.” —Josh Teekell

The technology has also changed how Midwest positions itself with customers. Rather than simply being the company homeowners call when something breaks, Spaugh says SmartAC has helped the business take on more of a consulting role. If sensors indicate that a filter may be restricting airflow, for example, the office can contact the homeowner before the issue becomes a larger problem. “It really gave us more of the consultant vibe than just a service,” Spaugh says. “It transitioned us into somebody that cares about the customer.” For homeowners, the first proactive call from their HVAC contractor can be unfamiliar. But Spaugh says that initial surprise quickly turns into appreciation once customers understand why the company is reaching out. “It’s a little weird at first, but then after that first visit, they’re like, ‘That’s actually really cool that you guys are doing that,’” he says. “I’ve never had it go the other way, not once.”

The Future: From Maintenance Plans to Comfort as a Service Ultimately, Spaugh sees connected HVAC technology as part of a larger shift toward

subscription and membership-based services. As homeowners become more comfortable monitoring household systems, he believes HVAC monitoring will increasingly become an expected part of homeownership rather than a novelty. “There’s always been informed homeowners, but it was rare,” Spaugh says. “Now I’d say a good percentage of people understand what’s going on in the home and where the costs are being spent.” Hargrove agrees, noting that HVAC is moving increasingly toward subscription and membership models. His company is exploring ways to make more of its services—and potentially entire system installations—subscription-based. “If there was a way to make everything we do subscription-based, I think it would make a big difference,” he says. “And SmartAC having all of that in there is going to set contractors apart from the smaller guys.” Teekell says the traditional HVAC maintenance agreement is only the beginning of a broader shift toward subscription-based relationships between contractors and homeowners. Some contractors and manufacturers are already experimenting with “comfort as a service,” equipment leases and subscription models that bundle the system, maintenance, repairs, and monitoring into a predictable monthly payment. “I definitely believe that is the future of the industry,” Teekell says. While he acknowledges that widespread adoption could still be several years away, the

model is becoming increasingly attractive as homeowners confront $15,000 to $20,000—or higher—equipment replacement costs. Instead of making a large upfront investment, homeowners could opt for a long-term agreement costing roughly $120 to $170 per month, depending on the offering, while gaining greater predictability around maintenance and repairs. Teekell says the larger opportunity for contractors is to move beyond the traditional maintenance plan and find more ways to stay connected with homeowners throughout the equipment lifecycle. Consumers increasingly expect transparency, convenience, and immediate access to information, and HVAC contractors are beginning to respond with pricing tools, connected equipment, and technologyenabled service models. At the same time, Teekell sees an important opportunity in the millions of homes that already have aging equipment. “Grabbing and retaining a home that already has old equipment so you can be the one to replace it when the time comes is the highest ROI thing you can do,” Teekell says. That may ultimately be the biggest evolution in maintenance agreements: transforming them from a once- or twicea-year service transaction into a long-term strategy for staying connected to the home, creating recurring revenue, generating proactive service opportunities, and earning the right to be there when the next major HVAC decision arrives.

12 | CONTRACTING BUSINESS | September 2026

2609CB_008-13_AC Maint Agreement.indd 12

8/26/26 9:05 AM

2609CB

GET RID OF

CONDENSATE

with Liberty Pumps LCU-Series

Standard, plenum rated, neutralizing and mini-split condensate pump options!

LCU-N20ST LCU-PR

LCU-MS

LCU-20S

2609CB_008-13_AC Maint Agreement.indd 13 2609CB_LIbertyPumps.indd 1

8/26/26 9:05 AM 7/27/26 11:38 AM

2026

RESIDENTIAL HEATING GUIDE

Explore the latest highefficiency furnaces, boilers, and heat pumps. Lajst / iStock / Getty Images Plus

As residential heating technology continues to evolve, contractors have more options than ever when it comes to delivering reliable, eff icient, and cost-effective comfort. From high-eff iciency furnaces and heat pumps to boilers, controls and emerging electrification technologies, today’s products are designed to meet a wider range of homeowner needs and installation challenges. Contracting Business’ annual Residential Heating Guide highlights the latest products and solutions contractors should know about as they prepare for the heating season.

Amana

Engineered for highambient regions, Amana Brand S-series AZV9S splitsystem heat pumps deliver heating capacity down to -10°F DB (cooling up to 115°F DB)—satisfying U.S. DOE Residential Cold Climate Heat Pump Challenge requirements. Intelligent Defrost mode plus hot start technology designed for cold weather performance. Hot gas pan eliminates extra drain pan heater down

to 5°F. Inverter technology and variable-speed compressors enable high energy eff iciencies and quiet operation, down to 47dBA. Amana brand S-series outdoor units need only 4” clearance. Supports electric, gas, or dual fuel. Can be utilized with existing line sets and connect up to 100’ of pipe (for typical installations). Features include: hydrophilic anti-corrosion coil coating and water-shedding drain pan, diagnostic indicator lights, sevensegment display, fault-code storage, seat connection service valves, and easy-access gauge ports. Available in 2- to 5-ton up to 21.0 SEER2. www.amana-hac.com

American Standard

The American Standard AccuComfort Variable Speed Platinum 20 Heat Pump offers comfort, eff iciency, and intelligent performance through advanced variablespeed technology. Featuring AccuComfort technology, this multi-stage electric heating and cooling system makes continuous adjustments to the compressor and fan speeds in small increments, ensuring indoor temperatures

Some entries may have been edited for space considerations. Product performance claims are by each brand. 14 | CONTRACTING BUSINESS | September 2026

2609CB_014-23_RezHeat Guide.indd 14

8/26/26 9:15 AM

2026 RESIDENTIAL HEATING GUIDE

remain within 1/2 degree of the desired setting. This precise modulation provides homeowners with superior comfort while reducing energy consumption. As an ENERGY STAR-qualified product, it features eff iciency ratings of up to 20.5 SEER2 and 10.0 HSPF2. Variable speed operation allows it to function over a broader range to improve overall performance. In heating mode, the system can boost its heating capacity by as much as 20%, helping homeowners better manage challenging weather conditions. The American Standard AccuComfort Variable Speed Platinum 20 Heat Pump is also designed for quiet operation. With lower compressor modulation and fan speeds, it operates at sound levels as low as 51 dBA. This low-speed performance complements the benefits of American Standard’s AccuClean Air Cleaner technology for enhanced indoor air quality. For added flexibility, heat pump can be paired with a gas furnace to create a hybrid heating system. This dualfuel capability automatically switches between electricity and gas to ensure optimal comfort, setting up a new standard for high-performance residential heating solutions. www.americanstandardair.com

Daikin

Compact, inverter-driven Daikin ENTRA provides an affordable, cost-saving solution that delivers energy eff iciency and allseason comfort—with low indoor sound pressures, down to 23 db(A). Handles a broad range of heating (5°- 65°F) and cooling (50°- 115°F). Features Quick Warming, Program Dry, Econo and Powerful Operation modes and includes auto-fan speed control. Users can control ENTRA anywhere via the Daikin Comfort app (with optional Wi-Fi adaptor) and internet-connected smartphones/tablets. Backlit, infrared wireless remote provides convenient indoor comfort control. Lightweight, quiet ENTRA units help with installation challenges. Redesigned to ease removal of drain pan, blower wheel, and fan motor. Features anti-corrosion heat exchanger treatment, convenient washable air filters, automatic defrosting, auto-restart, and self-diagnostics w/digital display. The system provides 49’ of pre-charged refrigerant length. Daikin ONE smart thermostat compatibility furnishes contractors’ remote diagnosis/servicing capabilities. Daikin ENTRA is available up to 18 SEER2 for eff icient cooling and heating operation. www.daikincomfort.com

General HVAC America

The AIRSTAGE Orion XLTH+ is a cold-climate mini-split system designed to deliver heating performance in extremely low outdoor ambient conditions. Utilizing R-32 refrigerant, the single-zone, wall-mounted

system ensures indoor comfort even at outdoor temperatures as low as -22°F while maintaining high eff iciency with a 33.5 SEER2 rating. AIRSTAGE Orion XLTH+ maintains full rated (100%) capacity at -15°F and 90% rated capacity at -22°F. Its compact outdoor unit, slim wall-mounted indoor unit, and extended line set lengths (up to 66’) simplify installation in almost any space. Both the indoor and outdoor units are extremely quiet, with sound levels as low as 23 dB(A) indoors and 44dB(A) outdoors. Orion XLTH+ is available in three capacities: 9,000, 12,000 and 15,000 Btu/h, with maximum heating capacities of 24,000, 27,300, and 28,000 Btu/h, respectively. The indoor unit features ProCore (high corrosion-resistant copper) coils for long-lasting protection. In addition to an inverter-driven compressor, the compact outdoor unit includes a base pan heater for optimal winter performance. Many system control options are available, including built-in Wi-Fi connectivity with remote monitoring via the AIRSTAGE Mobile App, a backlit wireless remote, compatibility with a variety of wired controls, and third-party interface options, including BACnet and Modbus for integration with building and home automation systems. Many optional accessories are available, including Fujitsu AIRSTAGE wired remote controllers, wireless controllers, Building Management System (BMS) adapters, hail guards, snow hoods, wind baff les, and more. www.fujitsugeneral.com

Goodman

The Goodman SD (Side Discharge) All-Climate Heat Pump GZV9S is an inverterdriven system designed to deliver year-round comfort in extreme climates. Certified ENERGY STAR Cold Climate and ENERGY STAR Most Eff icient 2025, it is available in 2- to 5-ton capacities with up to 21 SEER2 eff iciency. The compact outdoor unit requires only 4 inches of clearance, helping address installation challenges while maintaining quiet operation. The system incorporates Intelligent Defrost Mode, operating in defrost only when needed, along with Hot Start technology September 2026 | CONTRACTING BUSINESS | 15

2609CB_014-23_RezHeat Guide.indd 15

8/26/26 9:15 AM

2026 RESIDENTIAL HEATING GUIDE

that builds heating capacity before the indoor blower begins operation. Includes water-shedding drain pan with integrated heater. Goodman SD GZV9S features a Refrigerant Detection System and utilizes existing ductwork for installation flexibility. It is compatible with the Clean Comfort Indoor Air Essentials family of indoor air quality products, including HEPA filtration, humidification, dehumidification, ventilation, and UV light solutions. www.goodmanmfg.com

Hitachi Cooling & Heating

Hitachi Cooling & Heating—part of the Bosch Home Comfort Group—introduces the airHome 600 residential ductless heat pump, an innovative cold-climate solution engineered for high performance, energy savings, and reduced environmental impact. Utilizing low-GWP R-32 refrigerant, the airHome 600 is designed to lower energy use and carbon emissions while enhancing indoor air quality, reliability, and ease of installation and maintenance. The airHome 600 meets and exceeds the requirements of the American Innovation and Manufacturing (AIM) Act and qualifies for CEE 25C tax credits along with most federal, state and local heat pump incentives. The system is ENERGY STAR-certified and delivers consistent comfort even in harsh winter conditions thanks to advanced HeatForce technology. With a HSPF2 of up

This model has a smaller footprint than most floor-mount boilers, simplifying installation and service, especially in homes with smaller mechanical rooms. The Noble floor-mount combi boiler also features Lochinvar’s Smart Control platform—a unique control interface that provides an easy-to-use Setup Wizard and presents setup, system status, and diagnostic information in words, not codes. Homeowners can be assured that their home’s domestic hot water demand will be met with ease and in a timely manner thanks to the Noble Floor Mount’s 10:1 turndown ratio, domestic hot water delivery rate of 4.8 gpm, and an incredible eff iciency rate of 95%. Lochinvar’s unique fire tube heat exchanger design featured on the Noble floor-mount combi boilers produces a higher heat transfer coeff icient than traditional fire tubes. Lochinvar’s unique brazed plate heat exchanger design quickly transfers heat from the boiler system to the domestic water, satisfying space heat and domestic hot water loads even during frequent use cycles. www.lochinvar.com

Mitsubishi Electric to 11.5, the airHome 600 can maintain 100% heating capacity at temperatures as low as -5°F, depending on the model, and features no hard cut-off, ensuring dependable heating during extreme cold. Designed with both homeowners and contractors in mind, the airHome 600 system includes several premium features that enhance long-term performance and reduce maintenance calls. Most indoor and outdoor units incorporate FrostWash™, Hitachi’s proprietary self-cleaning technology that freezes, captures and washes away accumulated dust and debris from the coil. This helps improve indoor air quality, preserve airflow capacity and increase overall system reliability. www.hitachiaircon.com

Lochinvar

Lochinvar’s Noble Combi Boiler floor mount provides customers with the proven performance of a Lochinvar Noble combi boiler, but now in a new configuration for more installation flexibility. For additional application flexibility, the water connection, venting, and gas connection are placed on the top of the unit. Additionally, the unit’s universal vent connector allows for a variety of connections directly to the appliance flue without adapters.

The ecodan air-to-water (ATW) heat pump product line from Mitsubishi Electric is designed for hydronic heating and cooling, and domestic hot water (DHW) applications. Engineered to deliver comfort, eff iciency, and reliability, ecodan systems utilize advanced ATW heat pump technology, offering customers a modern, all-electric alternative to traditional boilers. The system distributes heat through fan coils, radiators, baseboard heaters, or underfloor heating, and provides cool air through the fan coils. It also offers DHW, making it a complete solution for year-round comfort. With a compact, discreet design harmonized for diverse spaces and quiet operation between 43 and 49 dB(A), ecodan units are designed for those seeking to reduce their carbon footprint and energy use without compromising on performance. The product line features hyper-heating technology for reliable operation even in low ambient temperatures, smart controls to reduce energy use, and an installation and maintenance conscious design with an all-inone Hydrobox.

16 | CONTRACTING BUSINESS | September 2026

2609CB_014-23_RezHeat Guide.indd 16

8/26/26 9:15 AM

2606CB_N

2606CB_Navien.indd 1 Guide.indd 17 2609CB_014-23_RezHeat

5/21/26 AM 8/26/26 11:19 9:42 AM

2026 RESIDENTIAL HEATING GUIDE

The ecodan ATW heat pumps use a hydronic distribution system to heat and cool the home through the hydronic fan coils. METUS offers three Hyper-Heating INVERTER (H2i) WUZ outdoor models—with 2-, 3-, and 4-ton capacities. The allclimate heat pumps have a maximum flow temperature of 158° F and observable performance in low ambient temperatures. The product line’s all-in-one indoor Hydrobox is compatible with all three outdoor units. The Hydrobox includes all key water circuit components, including the pumps, expansion vessel, magnetic filter, booster heater, and plate heat exchanger. A quick setup guide is included with the Hydrobox to facilitate installation. Mitsubishi Electric ecodan systems use refrigerant piping to connect outdoor and indoor units, eliminating traditional water piping maintenance requirements. www.mitsubishicomfort.com

Navien

The Navien NDF600 Condensing 2-Stage Furnace is designed to deliver the ideal balance of high-eff iciency performance, installation flexibility, and homeowner comfort. Featuring up to 96% AFUE, a two-stage operation, and a variable-speed ECM blower motor, the furnace automatically adjusts heating output to match demand, helping reduce energy consumption while maintaining more consistent indoor temperatures and quieter operation than traditional single-stage systems. Built with contractors in mind, the NDF600 simplifies installation and service through its compact footprint, modular construction, and flexible configuration options. The furnace measures just 34” tall and is available in two cabinet widths, making it well suited for retrofit applications and homes with limited mechanical space. A single unit supports four-way multi-position installation, including upflow, downflow, horizontal left, and horizontal right, and zero-clearance installation provides even greater flexibility for closets and alcoves. Modular blower and heat exchanger assemblies, along with integrated diagnostics, help streamline maintenance and reduce service time. Available in five models ranging from 50,000 to 105,000 Btu/h, the NDF600 provides reliable heating performance across a wide range of residential and light commercial applications. The variable-speed ECM motor simplifies airflow setup while helping reduce callbacks, and high-altitude certification allows installation in challenging environments. The furnace is also dual-fuel compatible, making it an excellent choice for hybrid heating systems paired with a heat pump to optimize eff iciency throughout the year.

When combined with compatible Navien NAA inverterdriven air conditioners and NAM cased coils, the NDF600 becomes part of a complete, capacity-matched HVAC system engineered to provide reliable year-round comfort, simplified installation, and long-term performance for both contractors and homeowners. www.navieninc.com

Quilt

The Quilt Indoor Unit is available in 2:1 and 3:1 configurations, powering one to three rooms from a single outdoor unit. At just 7 7/8” tall, it fits into tight spaces above windows and doors, and comes with a real white oak or wallpaperable white front cover that blends into any interior, or doubles as an accent light source. It’s a system homeowners want visible in their home, not hidden in a closet. Quilt features a SEER2 rating of 25 in 2-room configurations and 25.3 in 3-room configurations, with an HSPF2 Region IV rating of 12 across both. That’s 20% more eff icient than comparable ductless heat pumps, which translates directly to lower utility bills for your customers, the company says. Cold-climate performance holds up with 100% heating capacity down to -5°F, and 90% at -13°F. Over-the-air updates keep every system improving after install. Auto-Away automatically shifts empty rooms into an energy-saving mode and back again once someone returns. The Quilt Dial and Quilt App give homeowners full control, room by room, with real-time energy usage insight. Quilt Toolbox makes installs easier, giving your team everything they need to run a cleaner, faster install, right from their phone. Quilt Certified Partners also get marketing toolkits, high-intent leads, a 10-12 year warranty. Quilt.com/partners

Rheem

The Rheem RP17AY heat pump is a variable-speed operation system designed to deliver energy eff iciency, versatile installation, and smart connectivity in a traditional split system cabinet design. Available in 2- to 5-ton capacities, RP17AY offers cooling eff iciencies up to 17 SEER2 / 11.7 EER2 and heating eff iciencies up to 9.5 HSPF2, with R-454B refrigerant for more sustainable performance. Developed to simplify residential heat pump installations, RP17AY delivers high-eff iciency comfort across a wide range of applications. Suitable for both replacements and new construction projects, the traditional cabinet designed unit with universal capabilities is engineered for compatibility with nearly any R-454B all-electric or dual fuel HVAC system, minimizing installation complexity and providing contractors with flexibility. Powered by Rheem’s EcoNet technology, the system automatically configures and optimizes performance when

18 | CONTRACTING BUSINESS | September 2026

2609CB_014-23_RezHeat Guide.indd 18

8/26/26 9:15 AM

2609CB

ENGINEERED FOR

SIMPLICITY

The ecobee Smart Thermostat Lite | Works with EcoNet® Technology* was expertly designed to make your job easier. It offers quick setup and installation, plus allows homeowners to access your contact information directly from the touchscreen. Friedrich.com/ecobeelite *From the same manufacturer of Works with EcoNet® Technology and not compatible with other manufacturer’s HVAC systems.

2609CB_014-23_RezHeat Guide.indd 19 2609CB_RheemHeating&Cooling.indd 1

8/26/26 9:15 AM 8/12/26 11:46 AM

2026 RESIDENTIAL HEATING GUIDE

installed with compatible Rheem components, while the company’s proprietary system control algorithm enables seamless integration with many non-communicating systems. The product also incorporates several advanced technologies designed to improve both performance and serviceability. Rheem’s PlusOne Variable Speed Twin Rotary Compressor with inverter technology, allows the unit to continuously modulate between 35% and 100% capacity to precisely match a home’s heating demand. This variable-speed operation improves eff iciency, maintains more consistent indoor temperatures, enhances humidity control, and reduces energy consumption. Additionally, RP17AY operates at sound levels as low as 55 dBA, enabled by advanced sound-dampening features including a composite base pan, an innovative compressor with sound blanket, advanced drive technologies, and optimized refrigerant tubing and fan blade designs. Added innovations, including built-in PlusOne Diagnostics with Bluetooth connectivity, enable simplified setup, troubleshooting, and servicing through mobile applications. The patented PlusOne Refrigerant Detection System enhances safety by automatically pausing operation if excess refrigerant is detected. The RP17AY is qualified by the Northeast Energy Eff iciency Partnerships (NEEP), demonstrating eff icient performance in cold climates across the northern United States. www.rheem.com

Samsung

Samsung’s DVM S Mini brings the benefits of VRF technology to residential and light commercial applications where space is limited, but performance remains a priority. Designed for year-round comfort, this compact single-phase system provides flexible heating and cooling while supporting a wide range of applications, including single-family homes, multi-family residences, off ices, retail spaces, and other light commercial environments. Available in 3-, 4-, and 5-ton non-modular configurations in both Heat Pump and Heat Recovery models, DVM S Mini can connect up to 10 indoor units to a single outdoor system. The Heat Recovery model allows simultaneous heating and cooling in different zones, giving

occupants greater control over individual comfort while helping improve overall energy eff iciency. The system utilizes R-32 refrigerant for improved environmental performance and increased eff iciency compared to previous refrigerants. Integrated A2L safety features, including safety shutoff valves and automatic pump-down operation, are designed to support safe installation, operation, and long-term reliability. Engineered for demanding climates, DVM S Mini maintains heating operation in outdoor temperatures as low as -22°F. Advanced inverter technology continuously adjusts system output to deliver precise temperature control while optimizing energy use. www.samsunglennox.com

Trane

The Trane 20 TruComfort Variable Speed Cold Climate Heat Pump with WeatherGuard sets a new standard for home comfort, delivering heating performance even in harsh winter conditions. As the first Trane-made cold-climate heat pump, it is designed to deliver heating capacity well below freezing, achieving 100% to 107% of its rated heating capacity at 5°F and reliably operating in temperatures as low as -20°F. Additionally, it offers a wide cooling range of 55°F to 115°F for year-round comfort. Powered by TruComfort variable-speed technology, this system continuously adjusts compressor speed to meet heating and cooling demands, working harder during colder temperatures and conserving energy when the demand is lower. This intelligent operation ensures precise temperature control, quieter performance, enhanced humidity management, and reduced energy consumption. Advanced airflow algorithms deliver supply air temperatures of up to 110°F, allowing homeowners to enjoy consistently warm, comfortable air without the cool-air sensation often associated with traditional heat pumps, the company says. Built for durability, it features Trane’s all-aluminum Spine Fin woven coil for superior heat transfer, airflow, and corrosion resistance, along with WeatherGuard protection for long-term outdoor reliability. The 20 TruComfort Cold Climate Heat Pump is fully integrated with Trane’s Link system, offering advanced diagnostics, smart-home connectivity, and optimized system performance. This heat pump combines cold-weather capability, intelligent variable-speed technology, and energy eff iciency, while providing seamless controls to represent the next generation of reliable and sustainable comfort for homes. www.trane.com/residential

20 | CONTRACTING BUSINESS | September 2026

2609CB_014-23_RezHeat Guide.indd 20

8/26/26 9:15 AM

2609CB

What’s behind it is just as important as what’s inside it.

Introducing the all-new Fujitsu AIRSTAGE line of R-32 VRF systems… available now and backed by best-in-class training, service and support. Our R-32 VRF systems deliver the flexibility and high performance today’s projects demand, including capacities from 2 to 32 tons and a broad selection of indoor unit options. Combined with expert layout assistance, training, and responsive support, they’re designed to help you succeed from planning through installation and beyond. Confidence comes from knowing what’s behind it. Ready when you are.

GENERAL HVAC Solutions America, Inc.

Visit fujitsugeneral.com

© GENERAL HVAC Solutions America, Inc. - 2026 GHSA distributes Fujitsu and AIRSTAGE branded products made by its group companies. The Fujitsu trademark’s registered owner in the USA and Canada is Fujitsu Limited of Japan.

2609CB_014-23_RezHeat Guide.indd 21 2609CB_GeneralHVACSolutionsAmerica.indd 1

8/26/26 9:15 AM 7/31/26 3:04 PM

2026 RESIDENTIAL HEATING GUIDE

US Boiler

The ALTA condensing boiler and combi boiler lines are equipped with the OneTouch boiler control system. OneTouch dramatically expedites startup, reduces maintenance, and increases system reliability. When an ALTA boiler is powered up, OneTouch provides automatic combustion setup and eliminates the need for manual throttle and off set adjustments. This provides commissioning times of five minutes or less. OneTouch continuously monitors combustion to adjust for alterations in fuel quality, combustion air temperature, and changes throughout the heating system. An outdoor reset sensor is not required. Modulation is automatically adjusted to meet heating requirements without short-cycling. Conversion from natural gas to LP is as simple as turning one screw and selecting the fuel source in the boiler control. There are no parts to exchange. OneTouch is standard on all ALTA boilers (80, 120, 150 and 180 MBH) and combi boilers (136 and 200 MBH) capacities. Heat-only ALTA models 120 MBH and larger are also compatible with U.S. Boiler Co.’s new OneVent system, a simple, safe solution that enables common venting of up to four ALTA boilers. Designed to expand installation flexibility and increase system capacity without creating extra building envelope penetrations, the polypropylene ALTA OneVent system allows contractors to deliver multi-boiler solutions through a single vent pathway. Four, 180 MBH ALTA boilers can be combined to deliver up to 720 MBH of total system capacity. This makes ALTA OneVent particularly valuable in retrofit projects, spaceconstrained mechanical rooms, and buildings where minimizing penetrations is critical. OneVent provides venting lengths of up to 150 feet with minimal derate. Pre-engineered 4” and 6” kits include all components needed. Gasketed vent joints eliminate the need for gluing or curing time, accelerating installation and improving jobsite consistency. Integrated non-return valves and siphon traps ensure proper condensate management and reliable system operation. www.usboiler.net

Weil McLain

The Weil-McLain ECO HP Air-to-Water Heat Pump was developed combines an electric air-to-water heat pump with a traditional gas boiler to create a hybrid system that automatically leverages the most eff icient heat source based on outdoor conditions. The heat pump delivers eff icient heating during milder weather, while the boiler seamlessly provides

dependable performance during extreme cold, helping maximize comfort, maintain domestic hot water production and reduce overall energy consumption. Designed with contractors in mind, the ECO Hybrid System supports phased installation, allowing installers to quickly restore heat with a heat-pump-ready boiler during winter and return to install the outdoor heat pump when conditions are more favorable. The system also includes the ECO Calc Application Sizing Tool, which analyzes heating load, localized weather data, utility rates, and other project-specific factors to simplify system sizing and optimize performance. Additional features include quiet operation through a bionic fan design and twin-rotor compressor, year-round domestic hot water capabilities, and R-32 refrigerant technology. www.weil-mclain.com

YORK

The YORK YH9 is a variable-speed, 21 SEER2 heat pump that achieves eff iciency and precision comfort, even within colder climates (down to -10°F). Available in 3- and 5-ton models, the YH9 offers unique dual capacity flexibility. Each unit can be adjusted by 1-ton increments from 2- to 5-ton capacities, allowing contractors to fine-tune equipment sizing to precisely match load requirements. The YH9 is ENERGY STAR-certified and features variable speed compressors that precisely modulate temperature output to maximize energy eff iciency and comfort down to -10°F while maintaining up to 100% capacity at 5°F, exceeding the program’s requirements for cold climate performance. When paired with the latest SHC510 Smart Home Control communicating thermostat, the system auto-configures and enables free remote troubleshooting without subscription fees. The YH9’s compact footprint is designed to streamline installation and commissioning. Units ship factory-charged for a 15’ line set, reducing brazing and refrigerant charging time. In addition, the YH9 heat pump delivers smoother, more consistent runtime and comfort in residential installations. A variable speed inverter compressor supports quieter operation, and modulating output reduces frequent loud start/stop cycles. Finally, when paired with YORK’s smart controls, the YH9 supports broader IAQ integration, including zoning and whole-home comfort enhancements. www.bosch-homecomfortgroup.com/en/brands/york

22 | CONTRACTING BUSINESS | September 2026

2609CB_014-23_RezHeat Guide.indd 22

8/26/26 9:15 AM

2609CB

2609CB_014-23_RezHeat Guide.indd 23 2609CB_Resideo.indd 1

8/26/26 9:15 AM 8/13/26 3:21 PM

CONTRACTING BUSINESS SUCCESS | BY NICOLE KRAWCKE

Meet the Young Guns of HVAC:

6 Techs Proving Age Is No Barrier to Success Meet six HVAC technicians under the age of 25 who are proving that the future of the skilled trades is already hard at work.

or years, the HVAC industry has focused on the challenge of attracting the next generation of skilled professionals. The good news? They’re already here. Across the country, talented young technicians are building rewarding careers, embracing advanced technologies, and earning the trust of customers and coworkers alike. In this special feature, Contracting Business spotlights six outstanding HVAC “Young Guns” whose dedication, work ethic, and commitment to continuous learning are helping shape the future of the industry. Their stories demonstrate that with the right training, mentorship, and determination, the next generation isn’t waiting in the wings—they’re already making an impact.

got my Journeyman license and shortly after became a crew lead for my own jobs. I’ve helped many customers and really saw a difference in my skillset. CB: Who has had the biggest influence on your career so far, and what have they taught you? LB: My biggest influence would be my lead, Jake, who trained me for the whole time I was an apprentice. There isn’t really anything I know that wasn’t taught to me by him. From installs to service to customer service skills and workmanship. CB: How has technology changed the way you learn or do your job?

CB: What first sparked your interest in the HVACR industry, and what made you decide it was the right career for you?

Logan Busher, 24 Lead installer Jolly Heating, Air, Plumbing & Electric Cincinnati, Ohio.

LB: I was very undecided on what to do after high school, career-wise and schooling. A long-time family friend’s dad started an HVAC family business. I talked to him one day about it, and he convinced me to go to school with his two sons. Right after my first year ended, I started at Jolly. Between school and trying out the job itself in the field here, I decided it was worth sticking to it and make a career out of it.

CB: What has surprised you the most about working in HVAC since you started? LB: What surprises me the most is probably the number of homeowners that aren’t very knowledgeable about an important and expensive part of their home. And that gives me the opportunity to educate and make improvements or repairs to help homeowners however I can. CB: What’s been your proudest accomplishment so far? LB: I would have to say just being where I am now versus three and a half years ago when I knew nothing. In that time, I’ve mastered a lot of tasks in the trade, but I’m still always learning. I

LB: Technology has definitely made aspects of the job easier for me. Especially when it comes to tasks that aren’t the labor portion as in customer skills. Having the tech and processes set up makes everything there much more clear, open, and straight forward for me and the customer. CB: If you could change one misconception people your age have about working in the HVAC industry, what would it be? LB: I’d say one misconception is that some people think it takes a long time to start seeing the money come in or a lot of time before you’re ready to get to the next level or promotion. But I would say those two things come as fast as you want them to if you are willing to put your head down and work and learn to earn them. CB: Where do you see your career in five to 10 years? LB: I would like to learn it all or as much as I can moving forward for the next 10 years or so. I’m very confident in my install skills, but I would like to learn service in depth, then after that, the sales and business side, and then, eventually go into business for myself one day when the time is right. CB: What advice would you give another young person who’s considering a career in HVAC but isn’t sure whether it’s the right path? LB: I would say just give it a real shot while you’re young and have all the time to find out what you really want to do. Get the

24 | CONTRACTING BUSINESS | September 2026

2609CB_024-27_YoungGuns.indd 24

8/26/26 9:05 AM

job and take the initiative to learn and make your job and life easier in return. CB: What’s one thing contractors can do to better attract and keep young technicians? LB: Be transparent with them. From work experience to finances. A lot of people get into the trades for the money, but it doesn’t come in right away as an apprentice. If contractors can show them a realistic growth path with goals and rewards, I think it helps them keep their heads up and the end goal in check.

CB: What first sparked your interest in the HVACR industry, and what made you decide it was the right career for you?

Dimitri Lemancusa, 24 Service technician Astar Heating, Plumbing and Air Conditioning Middletown, New York.

DL: I was first introduced to the HVAC industry in 2021 by both a close friend and a family member. In 2024, a lifealtering event motivated me to explore a new career path. I chose HVAC because of its versatility and the opportunity to build a stable, rewarding career while continuing to learn and develop new skills.

CB: What has surprised you the most about working in HVAC since you started? DL: I was surprised by how much learning never stops. You can understand the fundamentals, but every manufacturer, control system, and customer situation is different. As technology advances, our industry will change, meaning there will always be more to learn. That’s one of the things that keeps the job interesting. CB: What’s been your proudest accomplishment so far?

DL: If I could change one misconception, it would be that college is the only path to a successful career. The HVAC industry is incredibly accessible and offers excellent opportunities for people who enjoy hands-on work. You can get into the field relatively quickly, continue learning on the job, and build a rewarding career with strong earning potential and room for advancement. CB: Where do you see your career in five to 10 years? DL: Over the next five to 10 years, I’d like to expand into commercial HVAC and continue developing my technical skills. Eventually, I’d enjoy mentoring newer technicians or becoming a trainer, because I enjoy helping others learn while continuing to grow myself. CB: What’s one thing contractors can do to better attract and keep young technicians? DL: One of the best ways contractors can attract and retain young technicians is by investing in training and providing quality tools. Showing that you’re willing to help employees develop their skills and set them up for success creates a workplace where people want to build a long-term career.

CB: What first sparked your interest in the HVACR industry, and what made you decide it was the right career for you? LN: I did not want to go to college and wanted to get into a trade. I felt like it was the right choice for me for the variety of work I get to do every day. CB: What has surprised you the most about working in HVAC since you started?

Luke Neuhalfen, 21 Senior service technician Apollo Heating and Air Bellevue, Nebraska.

DL: I’m proud of how much my confidence has grown in just a couple of years. Early on, I relied heavily on asking questions, but now I can diagnose many problems independently and explain repairs to customers in a way they understand.

LN: The complexity of some units and unlimited earning potential.

CB: How has technology changed the way you learn or do your job?

LN: Replacing a reversing valve and evaporator coil on one call, in one day, and everything went smoothly.

DL: Technology has made learning much faster and jobs more efficient. Between manufacturer apps, digital tools, and AI, I can better understand unfamiliar systems and verify information while still relying on my own troubleshooting process. It helps me become a better technician without replacing critical thinking.

CB: How has technology changed the way you learn or do your job?

CB: What’s been your proudest accomplishment so far?

LN: I have access to resources and information instantly that allows me to provide my customer with custom options in an efficient manner.

CB: If you could change one misconception people your age have about working in the HVAC industry, what would it be?

September 2026 | CONTRACTING BUSINESS | 25

2609CB_024-27_YoungGuns.indd 25

8/26/26 9:05 AM

CONTRACTING BUSINESS SUCCESS

CB: If you could change one misconception people your age have about working in the HVAC industry, what would it be?

them no free time. I think that’s a common misconception. I’ve had a great work-life balance since starting.

LN: Understanding that system operations are not as complicated as they seem with proper support and training.

CB: Where do you see your career in five to 10 years?

JP: I definitely see myself as a trainer. I think I have a skill to simplify topic that may be hard to understand while just starting out

LN: I envision myself being in a leadership role. I am open to management, technical support, or a training leader.

CB: What’s one thing contractors can do to better attract and keep young technicians?

JP: Give them the help they need. I feel like not knowing what you’re doing at a service call can be one of the scariest feelings. Contractors/businesses should continue to train their techs throughout their career.

LN: Providing a clear path to a long-term career with tangible milestones.

CB: What first sparked your interest in the HVACR industry, and what made you decide it was the right career for you?

Joey Phillips, 24 HVAC technician Bonfe Plumbing, Heating, Cooling, Electrical & Sewer Saint Paul, Minnesota.

JP: I was working as an apartment maintenance tech, and I didn’t know how to fix the boiler, so every time the HVAC tech would come to fix them, I would pester him with questions. He finally got annoyed and told me to start looking into HVAC. CB: What has surprised you the most about working in HVAC since you started?

JP: I think the thing that has surprised me the most is that you can never stop learning. Once I think I have it figured out, there is something new to learn.

CB: What first sparked your interest in the HVACR industry, and what made you decide it was the right career for you? KT: I used to work at a very large apartment complex—over 1,000 units. Of course, as maintenance technicians, you have to do everything—plumbing, electrical, HVAC, all the good Kheira Tuck, 24 stuff that involves a home. I really Class II HVAC service nailed in on HVAC. I’m very technitechnician cal in my background. I went to college for mechanical engineering. I didn’t Cardinal Plumbing, Heating & Air finish, but I did do about two years of that. And I love doing things with my Sterling, Virginia. hands. Combining the technical plus customer service, plus working with my hands, that was kind of the perfect combo. CB: What has surprised you the most about working in HVAC since you started?

CB: What’s been your proudest accomplishment so far? JP: Getting my EPA (certification)—I felt official once I had that. Or having the opportunity to train other people while only being a year into the trade. CB: How has technology changed the way you learn or do your job? JP: I still use mainly analog tools and call my teammates for help. But I can see that it is the future with these apps that are connected to the air conditioners and furnaces. CB: If you could change one misconception people your age have about working in the HVAC industry, what would it be? JP: That they think this trade will take over their life and give

KT: Nothing super surprising. I guess just how nice everyone is. I don’t know if it is the area that I switched into, but everyone, at least at my place of work, has been super helpful, just willing to jump in and help me. And also the customers—most of them are not surprised to see a woman technician, which is kind of surprising. A lot of people coincidentally also prefer it. They feel safer with a woman working in their home. So I’ve had a very positive experience thus far. I had a lot of concerns coming in, but it’s been very positive. CB: What’s been your proudest accomplishment so far? KT: My first solo call; I sold, or at least sent out a lead for $11,000 for a new unit, and I was very nervous for that. That one was a huge accomplishment for me just because I was very nervous, very unsure, but I did everything to make sure that this was the

26 | CONTRACTING BUSINESS | September 2026

2609CB_024-27_YoungGuns.indd 26

8/26/26 9:05 AM

right call for this customer. So it just worked out that way. Also, my job sent me to the Ultimate Technical Academy in Arkansas, and I completed that course with an A, and also got my NATE certification while I was there. I did that in about a week. That was fun, nerve-wracking, and stressful, but also an accomplishment definitely in my book. CB: How has technology changed the way you learn or do your job? KT: Not so much in how I learn. I do still like to learn, not the conventional way, but not through AI because I do know that it can be wrong sometimes. Especially out in the field, you’re looking at a ton of information on data plates. I’ll take a picture of a data plate, say, “Hey, what tonnage is the system?” Or if I can’t really find the age on it, what age is the system? Some of the serial numbers and the model numbers, they have a code you have to decrypt and stuff like that. I definitely use that to help me get information I need to make my diagnosis. And sometimes with invoice reports, I use some professional pointers from the internet to make things sound a little bit better, especially when you’re conveying to a customer; you want it to be conveyed in the best possible way. CB: If you could change one misconception people your age have about working in the HVAC industry, what would it be? KT: A lot of people, when they think of the trades, they think of having that really blue collar task master. It’s not like that. I can definitely see that being a thing more so in the union, but definitely not in smaller businesses. Not everywhere wants to kick you down so that they can build you up. Some of them just build you up and want to see you shine so the company also shines. Especially people who are mentoring you because they shine as well. Don’t be afraid to make the jump if it is something that genuinely interests you. CB: Where do you see your career in five to 10 years? KT: My plan at the moment, at least in my head, is to eventually turn my HVAC skills into becoming a housing inspector. And maybe tackle some real estate on the side through connections that I get through that, and then converging into opening my own LLC for inspections and retiring early and all that good stuff. CB: What’s one thing contractors can do to better attract and keep young technicians? KT: Be OK with being silly and loosey-goosey. I don’t know if that’s the best way to put it, but people who present themselves as people, as normal, everyday people. Not everything needs to have this polished look. Your work, yes. But how you present yourself to potential candidates, let them know it’s OK to be human. It’s OK to show the human side of the business, because I feel like that’ll attract the right people that you need. And typically, that is younger people who are also just figuring out how to be adult

humans. If you show that you don’t have everything together all the time or every workplace has its silly time, I feel like a lot of younger people will be more into hands-on lines of work.

CB: What first sparked your interest in the HVACR industry, and what made you decide it was the right career for you? DW: I was working in appliance repair and was not very satisfied. HVAC seemed like the next step up for me. After a few weeks riding with a senior technician, I found I loved that we were helping families as well as being consistently busy. Days go by so quickly, it seems. CB: What has surprised you the most about working in HVAC since you started?

Dustin Wilkinson, 25

HVAC service professional (technician) Just In Time Heating, AC & Plumbing Services Sandwich, Illiniois.

DW: All of the different skills we learn. I also find it really cool to work on really old equipment with all the different parts. I enjoy seeing how much has changed in the industry over the years. CB: What’s been your proudest accomplishment so far? DW: Honestly, every customer I can make happy and every skill I can master are equal accomplishments to me. I just love to see the progression in my career. CB: How has technology changed the way you learn or do your job? DW: When systems are acting very unusual, AI can be very helpful in giving lists of tests to try. AI has proven to be very helpful to me with communicating systems, especially. CB: If you could change one misconception people your age have about working in the HVAC industry, what would it be? DW: Generally speaking, my generation expects to join a trade and have 15+ years of learning and growth completed in 1 year; many then quit too soon if they don’t feel like they have progressed. I understand it takes time and effort on our end to grow in this career. CB: Where do you see your career in five to 10 years? DW: Honestly, I am not sure. I am still focusing on mastering this craft. I would like to become confident enough that any growth options are realistic and opportunities for me.

September 2026 | CONTRACTING BUSINESS | 27

2609CB_024-27_YoungGuns.indd 27

8/26/26 9:05 AM

AI Finds Its Place in the HVAC Business From handling calls to dispatching, AI is becoming a vital tool, with companies emphasizing strategy, training, and employee buy-in for successful integration.

rtificial Intelligence (AI) has quickly become part of doing business, and many HVAC businesses are putting it to work. As adoption continues to evolve, companies are discovering where AI can deliver the greatest value and how to earn employee buy-in.

The Mushroom Effect AI adoption often begins when a company has a problem to solve or because they’re a tech-forward company. No matter the route of entry, many HVAC businesses find additional uses for the tool once they start using it. Like mushrooms after a rain, AI applications seem to pop up throughout the business once HVAC contractors see what’s possible. Service Professionals, based in Northern New Jersey, formally began using AI in fall 2025. “At the time, we had an answering service, but we weren’t happy with it,” says COO Evin Bogda, who oversees the leadership team. “With AI, we can book directly to our CRM, so we don’t have to

call back. We use the tool for after-hours and overflow.” Today, Service Professionals is applying AI in multiple facets of its business. “Every manager is now building their own dashboard, and it’s enhanced how they do the job and sped up nuanced tasks,” Bogda says. He singled out the marketing manager who was tinkering with AI before the company formally adopted an AI tool. “He uses AI to figure out how to manage marketing spend on a daily basis.” Jolly Heating, Air, Plumbing, Electric, which serves Cincinnati and Northern Kentucky and has been in business since 1979, began incorporating AI into its business in early 2024. Initially, the team added Dispatch AI and chat. The tool enabled Jolly to gain data, so they could have the right tech for the right job. Today, Jolly uses AI (Probook) to answer chats and phone calls, book appointments, assist with dispatching, send outbound text messages for maintenance reminders, scheduling, and promotions, and generate KPI data. The growth pattern of AI usage at

TECHNOLOGY | BY LARRY BERNSTEIN

Leonard Spliane Co., a third-generation, family-owned company serving Northern Virginia since 1956, is similar. In 2024, the company dabbled in AI, using it to answer after-hours calls. However, their usage of AI grew in 2025, in part due to the hiring of GM Johnny Baker. “We looked at what gaps existed in our business and how tech can fill those gaps,” Baker says. Today, Leonard Spliane uses cases for AI for creating a summary and scorecard for every sales call, building tailored SMS campaigns based on potential customers’ needs and engagement; and analyzing unfilled estimates to identify follow-up opportunities.

Not Plug and Play “You need to have a thesis,” says Golden Rule President Mark Paup. Golden Rule operates a fleet of 100+ vehicles and serves Des Moines, Omaha, and the Salt Lake City metro area. Paup’s interest in AI came in early 2024 while attending a Nexstar Network meeting. “The presenter was adamant that

28 | CONTRACTING BUSINESS | September 2026

2609CB_028-29_AI in HVAC.indd 28

8/26/26 9:05 AM

companies need to develop a thesis for how they’ll implement AI,” Paup says. Golden Rule hired the presenter to help them develop their AI strategy. “I ask everyone, ‘Do you have a thesis? Does your company know how and why it’s going to roll out AI?’ If not, you’re leaving it vulnerable to people sabotaging it.” Paup says its third-party AI dispatch is not plug and play. “It’s like a child when you hire it, it has to learn people and processes. If you think it’s an adult from day one, you’re setting an impossible expectation.” Scott Sharrock, COO of Jolly, also preaches patience and a recognition that AI won’t change everything on day one. “We look at onboarding AI function like onboarding a normal employee,” Sharrock says. “We need to train and coach AI like a person, but once it is up to speed, it’s generally very good.”

Build the Business, Get the Team on Board There are many negative preconceptions about AI, including the idea that it will take away jobs. Therefore, HVAC businesses

need to consider how they introduce AI. “For some it will make sense, but for others it will be harder,” says Baker about getting employees on board. “We empasize that we’re using AI to make you better and our customers better. Hard stop.” At Service Professionals, Bogda notes, they had many conversations with the leadership team about AI, and they’ve built up their skill set. Despite that, half the team was initially fearful. “When people see what it can do, they become more willing and even excited. Once someone has a good idea and can execute it, it starts to spiral, so they’re more excited and so are the people around them,” Bogda says. Golden Rule hasn’t reduced headcount since incorporating AI. “It’s elevated our staff and enables them to be more efficient and productive and multiplied their abilities ten times over,” Paup says. Since using AI for dispatch, the average ticket has increased 35%. Jolly has also stacked up the wins since implementing AI. The company has grown

by 50%, while adding no dispatch staff and only one CSR. The company has also seen 40% revenue growth. Finally, when the company used a third party to answer after-hours calls, the booking rate was 2540%. With AI handling the calls, the booking rate has jumped to 60-70%. The best booking rate, 85-90%, still comes when humans answer the phone. “We don’t want to get away from the full customer experience which includes the human element,” Sharrock says. AI continues to evolve, and so does how HVAC businesses use it. They identify a business problem or a growth opportunity, invest time in training the technology, and prepare their employees to work alongside it. As AI matures and HVAC companies discover more opportunities to put it to work, they also need to remember it’s the people using the technology who ultimately determine its value. Larry Bernstein is a freelance writer based in northern New Jersey. He specializes in construction technology; education technology; and transportation, logistics, and supply chain.

CLEANER INSTALLS. RELIABLE PERFORMANCE.

DAY AFTER DAY. The EC-1U-DV mini condensate pump tucks neatly beneath ductless mini-split equipment, creating a cleaner installation without sacrificing performance. Built for quiet, dependable operation, it automatically removes condensate water whenever gravity drainage isn’t an option, helping keep systems running smoothly and reliably day after day.

Scan to learn more.

littlegiant.com

2609CB_FranklinElectric.indd 1

2609CB_028-29_AI in HVAC.indd 29

September 2026 | CONTRACTING BUSINESS 8/18/26| 29 1:10 PM

8/26/26 9:05 AM

PRODUCTS, TRENDS, AND SERVICE AND BUSINESS MANAGEMENT INFORMATION

The Evolution of Refrigerants: From Freon to A2L and Beyond

From refrigerant detection systems to ASHRAE 15.2, here’s what HVAC contractors need to know about safely installing, servicing, and designing systems using A2L refrigerants. By Matt Coley, director of Residential Sales – North division, GENERAL HVAC Solutions America, Inc.

he HVACR industry is going through an evolutionary phase with the introduction of A2L refrigerants. The rest of the globe began adopting A2Ls as early as a decade ago, but here in North America, we’re seeing and adapting to it now. These refrigerants represent the next step in creating more efficient, environmentally friendly heating and cooling systems. To demystify A2L refrigerants, we’ll rewind 37 years, all the way back to when your older customers learned the word “freon.” The Montreal Protocol, adopted in 1987, set the stage for reducing ozone-depleting substances, including hydrofluorocarbons (HFCs). This authorized the Environmental Protection Agency (EPA) to set alternative guidelines, leading to the transition from R-12 to R-22, R-410A, and now to A2L refrigerants. A2Ls are defined by their lower Global Warming Potential (GWP), with a benchmark of 750 or less. For instance, R-32, a common A2L refrigerant, has a GWP of 625 compared to R-410A’s 2,088 – that’s a significant reduction. A2L refrigerants align with global efforts to reduce greenhouse gas emissions. The American Innovation and Manufacturing (AIM) Act mandates the reduction of HFCs, and A2L refrigerants like R-32 and R-454B meet these requirements with zero Ozone Depletion Potential (ODP) and low GWP. This makes A2Ls a far more sustainable option for our industry moving forward.

Images courtesy of General HVAC America Inc.

So, What’s an A2L? Many of us toss around the term “A2L” without really knowing what it means or stands for. Refrigerants are categorized by two key safety metrics: flammability and toxicity. “A” denotes lower toxicity gases, while “B” indicates higher toxicity gases. Flammability is rated on a scale from 1 to 4, with higher numbers representing greater flammability. A2L refrigerants, therefore, are low-toxicity refrigerants with mild flammability. I’m more familiar with R-32 than other A2L refrigerants simply because I work for GENERAL HVAC Solutions America. Our company has standardized on R-32 for our new product lines in the United States and Canada. We’re no stranger to R-32, having used it in systems across Europe, Asia, and other global markets for about a decade now. This familiarity allowed us to expedite the R-32 product launch in North America without major re-engineering. In the trenches, it also allows us to better support installers. I digress. We were talking about toxicity and flammability.

Safety Considerations Unfortunately, the industry has been victim to fearmongering. The initial emotional response coming from the field was that A2L refrigerants were “highly flammable” and could “explode.” This simply is not the case. Let me restate that. A2Ls are not explosive. Yes, A2L refrigerants are mildly flammable at high temperatures. The ignition temperature of R-32 is roughly 1,198°F. For ignition to occur, that temperature must be applied constantly. In the event of ignition, R-32’s burn rate is slow. One way I’ve heard it explained is as follows: if a space were filled with R-32 and ignition somehow occurred at 1,198°F, a building occupant on their hands and knees could crawl faster across the floor than the ignition of the gas could move. As a result of these concerns, the International Building Code (IBC) and International Fire Code (IFC) are and will continue to be updated to reflect the installation requirements for A2L refrigerants. It’s very important for our industry to stay up to date on code adoption and enforcement.

30 | CONTRACTING BUSINESS | September 2026

2609CB_030-31_RST.indd 30

8/26/26 9:05 AM

Equipment charged with A2Ls must include a Refrigerant Detection System, commonly known as RDS. Any equipment that requires the connection of duct to distribute air throughout the occupied space must have an RDS integrated into the system to shut down/ventilate the space upon detection of a refrigerant leak. Systems containing four pounds or less of refrigerant do not require an RDS. Another protocol heavily impacted by A2L refrigerants is ASHRAE 15.2. In a nutshell, there are design parameters that must be considered when designing a system. These range from residential or commercial applications, total refrigerant charge in the system, isolation valves, fresh exhaust, etc. Essentially, if certain conditions are present, the standard requires additional equipment to satisfy the requirement. We’ve created the Charge Compliance Calculator tool to assist designers and ensure they are compliant.

Compare and Contrast Before we dive too far down the R-32 rabbit hole, it’s worth mentioning that R-32 isn’t the only A2L gaining traction in North America. R-32 and R-454B are the two most common A2L refrigerants being introduced. The adoption rate split is roughly 50/50 among manufacturers. Factors like cost, market readiness, and application suitability influence the choice between them. The characteristics and advantages of these two refrigerants are very similar. Again, my focus has been R-32, so let’s compare it with R-410A. When it comes to GWP, R-32 scores 70% better than R-410A. This refers to the efficiency of the refrigerant itself. The Coefficient of Performance (COP), or the ratio of energy produced in a heat pump system, was found to be roughly 10% higher in R-32 systems than R-410A systems. R-32 is a single-component refrigerant. Unlike blended refrigerants like R-410A and R-454B, R-32’s consistent composition simplifies handling, recycling, and recharging. Being a single-component gas, R-32 has no glide. “Glide” refers to the temperature range over which a blended refrigerant changes state during the refrigeration cycle. Its composition remains consistent during phase changes. This makes it easier to diagnose issues and easier to maintain, especially for less experienced technicians.

performance and safety. Nothing new there! From a system design, load calculation, and equipment sizing perspective, nothing really changes. Designers still do the math the way they’ve always done it. The biggest change is compliance with ASHRAE 15.2 As far as that’s concerned, one thought to consider is the type and location of an air handler as it pertains to where any catastrophic release of refrigerant would occur. Location could dictate whether the system is compliant with ASHRAE 15.2. At the end of the day, handling R-32 is no different than R-410A. All refrigerants should be respected and safety precautions taken.

Future Outlook The shift to A2L refrigerants is driven by environmental regulations and the need for sustainable alternatives. While A2Ls like R-32 and R-454B are a significant step forward, the industry is already eyeing the next generation of refrigerants, such as A3Ls, which include options like propane (R-290), R-142A, and carbon dioxide (CO2). Transitioning to A2L refrigerants might seem daunting, but with proper training and adherence to updated codes, it’s a simple process. R-32 is a proven, efficient refrigerant with a solid supply chain, making it a reliable choice for future-ready HVAC systems. Our industry is accustomed to change. We’ve evolved with and adapted to EPA mandates before, and now we’re merely adapting again.

Installation and Maintenance The installation process for R-32 equipment is similar to that of R-410A, with just a few key differences. As previously mentioned, an RDS is required for systems with duct connections exceeding four pounds of refrigerant charge. When it comes to tools, especially gauges, hoses, sniffing devices, and recovery cylinders, there’s no need for techs to adapt to anything new. It is, however, important to have a dedicated set of equipment to prevent mixing A2Ls and R-410A. The threads on R-32 refrigerant cylinders are reversed to eliminate the possibility of connecting gauges and hoses to the wrong system. Routine maintenance for A2L systems aligns closely with R-410A systems, so long as the system was evacuated and held vacuum. Regular professional servicing ensures optimal September 2026 | CONTRACTING BUSINESS | 31

2603CB_Shortridge_FlowHood.indd 1

2609CB_030-31_RST.indd 31

2/11/26 10:09 AM

8/26/26 9:05 AM

AD INDEX Advertiser

Page

Bosch www.bosch-homecomfort.com/us/en/residential/home

Cintas Corporation www.cintas.com

Daikin Comfort Technologies North America Inc. www.northamerica-daikin.com

Facilities Expo Facilitiesexpo.com

Little Giant Littlegiant.com

GENERAL HVAC Solutions America, Inc. www.general-hvac.com

International Exposition Company www.ahrexpo.com

IBC

Liberty Pumps www.libertypumps.com

Navien, Inc. www.navieninc.com

Progressive Insurance www.progressive.com

Resideo www.resideo.com/us/en

Rheem Heating & Cooling www.rheem.com

Shortridge Instruments, Inc www.shortridge.com

Venstar Inc. venstar.com

IFC

SA LE S CO NTAC T S SOUTH & WEST: SENIOR MANAGER, BUSINESS DEVELOPMENT Randy Jeter Office: 512-263-7280 Cell: 512-426-9145 Fax: 913-514-6628 rjeter@endeavorb2b.com EAST COAST: SENIOR MANAGER, BUSINESS DEVELOPMENT Ellyn Fishman Cell: 949-239-6030 efishman@endeavorb2b.com

CLASSIFIEDS/INSIDE SALES: MEDIA ACCOUNT EXECUTIVE Steve Suarez Cell: 816-588-7372 Office: 941-259-0867 ssuarez@endeavorb2b.com DIRECTOR OF SALES, BUILDINGS & CONSTRUCTION GROUP Joe Agron 941-200-4778 jagron@endeavorb2b.com

ACCOUNT MANAGER MIDWEST Bill Boyadjis 973-829-0648 bboyadjis@endeavorb2b.com

YOUR HVACR COMMAND CENTER

SM482V | Digital Manifold The SMAN® manifold measures, calculates and helps you diagnose with ease. View live pressure, temperature, and vacuum readings on the large, 5-inch screen and connect your Job Link® wireless tools for a full system view on the display.

fieldpiece.com

32 | CONTRACTING BUSINESS | September 2026 2609CB_FieldpieceInstruments.indd 1 2609CB_032-33_Index Ads.indd 32

8/17/26 2609CB_LIbertyPumps_MKPL.indd 9:14 AM 1

7/27/26 11:24 AM 8/26/26 9:05 AM

2609CB

WHERE FACILITY CHALLENGES FIND SOLUTIONS

NORTHERN CALIFORNIA

October 6-7, 2026 Santa Clara, CA

NORTH TEXAS

October 14-15, 2026 Irving, TX

facilitiesexpo.com OWNED & PRODUCED BY:

2609CB_032-33_Index Ads.indd 33 2609CB_House_FacilitiesExpo.indd 1

8/26/26 9:05 AM 7/27/26 9:12 AM

THE RANT BY MATT MICHEL

Private Equity is Like Oakland

W In the end, the businesses do not change much. There’s lots of buying, pressuring, and selling, but no secret sauce.

A co-founder and former CEO of Service Roundtable, Matt Michel was inducted into the Contracting Business HVAC Hall of Fame in 2015. He is now an author and rancher.

riter, Gertude Stein once wrote, “There’s no there, there,” in reference to Oakland, California. Increasingly, this seems to be the case with private equity. Personally, I’m a fan of private equity’s encroachment of the service trades. After all, I sold to private equity and did pretty well. Allowing contracting business owners to exit well is the biggest benefit PE provides. The second benefit is raising the price ceiling. Sometimes I wonder if PE has a ceiling. Regardless, PE-owned companies have led the market in setting new price levels, allowing contractors to raise their prices in turn, becoming more profitable. Traditionally, poor pricing has been the most common problem among HVAC contractors. A third gift to the industry has been the increase in employee benefits. Contractors have traditionally offered mediocre benefits if they offered them at all. PE, as a rule, bumps them up, causing more contractors to improve their own benefits to stay competitive. When we need to attract more people to the trades, benefits matter. Moreover, this is the right thing to do. Finally, PE has brought lots of attention to the trades. More people are seeing HVAC and other trades as career destinations of choice, rather than places for people who can’t cut it in more exciting and lucrative professions. In addition, more entrepreneurs are noticing the opportunities in the industry and creating solutions to solve industry problems. No question, PE has helped the industry overall and many business owners in particular. But is PE making the companies acquired better? PE doesn’t buy companies in need of a turnaround. They look for well-run companies and pay premiums to acquire them. Companies that would have sold for a 4X multiple a few years ago are commanding 8X to 10X or higher. One of the first moves by PE after an acquisition is to exert their buying power. Companies get better pricing on equipment, though this might sacrifice long-held business relationships. The nature of the supplier relationship diminishes to one that’s purely transactional. Next, PE boosts employee benefits. While this is a positive, it does raise costs. PE then centralizes HR, which adds overhead costs since HR was usually part of the office manager’s job. The time

the office manager spent on HR doesn’t go away. It gets replaced by dealing with corporate HR. When the owner eventually steps down, he’s replaced by a general manager at half the cost. However, the GM typically lacks the owner’s entrepreneurial drive, local civic and charitable involvement, and local relationships. PE-owned companies typically press technicians to sell replacements or flip leads, boosting replacements and bringing in greater revenue and profit. Some techs reject the pressure and seek to leave for more of a family-run business, especially if the owner has stepped down. Marketing is often centralized and run by millennials who focus almost totally on digital. This has driven up the cost of search engine marketing. Simpler, more traditional marketing gets overlooked and de-emphasized. A layer of overhead sitting above the local operation is added by the PE group. Then, owners or general managers find that significant time is consumed by Zoom meetings with corporate and the need to provide ever-increasing amounts of data to the higher-ups. If the company is not already on a leading field service management program, the switch is forced on the company. This gives management more data, if not more insight. The core of the business, which is demand service, maintenance, and replacements, remains largely the same. The ownership may change, but the business is still butts-in-trucks and trucksto-homes. Service managers are still required. Office personnel are still required. Headcount is largely the same. The goals appear to be squeezing efficiencies out of companies that were already well-run and driving revenue and EBITDA higher by force of will. When combined with other acquisitions, PE grows total EBITDA with the end goal of flipping the portfolio for a higher multiple of earnings than was paid for the original businesses. Several PE groups have already succeeded in taking “the second bite of the apple.” Others are working hard with this in mind. In the end, the businesses do not change much. There’s lots of buying, pressuring, and selling, but no secret sauce. Is there greater value? Does PE result in a sustainable competitive advantage? Is there any there, there?

34 | CONTRACTING BUSINESS | September 2026

2609CB_034_Rant.indd 34

8/26/26 9:06 AM

Don’t just keep up — get ahead at AHR Expo.

Co-Sponsored by

2609CB_C1-4_Covers.indd 3 2609CB_InternationalExpositionCompany.indd 1

8/26/26 9:05 AM 7/22/26 10:01 AM

MAX

INVERTERIZED COMMERCIAL ROOFTOP EFFICIENCY AND COMFORT As commercial HVAC applications rapidly evolve, NEXIO Max Inverter Rooftop Units deliver high efficiency, flexibility, serviceability and control to meet today’s building demands. Whether it’s schools, retail spaces or offices, building owners are demanding solutions that offer efficiency, comfort, low operating costs, quiet operation, and integration with modern platforms. In commercial environments, these demands can be even more dynamic. Occupancy can fluctuate significantly throughout the day, from quiet mornings to peak operating hours and seasonal surges. Maintaining consistent comfort across open floors, offices, classrooms, and entryways is critical not only for occupant experience but also for encouraging long, comfortable visits. Commercial owners and operators are increasingly seeking HVAC systems that operate quietly, minimize humidity swings, and integrate seamlessly with building management systems without disrupting daily operations. NEXIO Max rooftop units are designed with variable speed inverter compressor technology, low-GWP R-32 refrigerant, and advanced system controls. By modulating capacity to match actual building load conditions, NEXIO Max delivers higher part-load efficiency compared to fixed-speed systems, occupant comfort, humidity management, and performance throughout the year. Built on Daikin’s inverter expertise and optimized for both replacement and new construction projects, NEXIO Max offers the flexibility and serviceability that contractors, engineers, and retail operators expect from a nextgeneration rooftop solution.

1. Inverter Technology for Real-World Commercial Operation NEXIO Max continuously adjusts compressor and fan speeds to match building demand, unlike traditional fixed-speed rooftops. This provides temperature stability, humidity control, and energy efficiency during part-load operation -compared to traditional fixedspeed rooftops - providing comfort across a wide range of applications including schools, offices, retail stores, restaurants, and healthcare facilities. 2. Flexible Controls and BAS Integration NEXIO Max is designed for today’s connected buildings with factory-integrated controls that help simplify commissioning and building automation system (BAS) integration. Factory-installed BACnet® MS/TP streamlines BAS connectivity, eliminating the need for complex field-installed control packages. The platform also enables rooftop functionality, including multi-zone VAV operation delivering heating and cooling across building areas, modulating indoor fan control for energy efficiency by matching airflow to real-time demand, and remote diagnostics and monitoring using the HERO Cloud platform. This flexibility empowers contractors, controls integrators, and facility managers to optimize comfort, airflow, and energy performance across a variety of commercial applications.

Visit daikinherocloudservices.com to learn more. BACnet® is a trademark of ASHRAE 2026 DAIKIN COMFORT TECHNOLOGIES NORTH AMERICA, INC.

2609CB_C1-4_Covers.indd 4 2609CB_DaikinComfortTech.indd 1

SCAN THE QR CODE TO LEARN HOW TO BECOME A DAIKIN PRO

8/26/26 9:05 AM 8/17/26 9:17 AM