Contracting Business - July 2025

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16 Cooling the Cloud: Data Center Trends Heat Up Opportunities for HVAC Contractors

Double-digit annual growth predicted as data center capacity expands to support AI, cloud, and hyperscale infrastructure.

21 How to Win and Keep Mission-Critical Service Agreements

Greg Crumpton, vice president of Service Logic, offers insights and best practices on selling mission-critical service agreements.

22 From Tech to Pro in 8 Weeks

Sila Services’ new program is designed to quickly and effectively prepare new hires for the field.

24 How Focusing on All-Electric, All-Climate Heat Pumps Transformed My HVAC Business

Exclusively focusing on heat pumps resulted in increased profitability and customer satisfaction.

26 How Roleplaying Enhances Team Training Regimens

Roleplaying and practical scenarios are key for employee engagement and

27 Silence the Leak: Smart Detection Reshapes

and building codes now often require ALDS use. ON THE COVER: As the digital world continues to expand, so does the demand for reliable, energy-efficient data centers—and that’s creating a booming business opportunity for HVAC contractors.

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Mix and Mismatch—Topping Off R-454B Units Could Spell Trouble

HVACR contractors across the country are feeling the pressure from a growing shortage of R-454B refrigerant. Industry leaders are responding with strategies and resources.

www.contractingbusiness.com/55296768

HVAC Pricing Strategies in an Uncertain Economy

The New Flat Rate's Danielle Putnam discusses shifting consumer behavior and pricing strategies amidst uncertainty.

www.contractingbusiness.com/ 55295992

Bridging the Skilled Trades Gap

Explore The Trades Executive Director Kate Cinnamo discusses key challenges in attracting new talent to the skilled trades, awareness initiatives, and more.

www.contractingbusiness.com/ 55296224

2024 IRC Mechanical Code Quiz: Part 2

Test your International Code Council Mechanical Code knowledge in our latest quiz.

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AI isn’t just an optional upgrade— it’s your new co-pilot.

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Contracting

“The best time to learn AI was over two years ago.”

That was the line Tersh Blissett, founder and co-host of the Service Business Mastery Podcast, opened with during his educational session about AI during the Southeast Michigan Air Conditioning Contractors Association (SEMIACCA) Trade Show with Josh Crouch, founder and CEO of Relentless Digital. The event was held right in my backyard in Farmington Hills, Michigan, in May.

“The second-best time is right now,” he added. “If you’re not using AI, you will get left in the past—it’s not even an option anymore.”

EDITORIAL

TOM CASEY

Climate Partners

Griffin Service

MIKE CONLEY

Pioneer Heating & AC

VINCE DIFILIPPO

DiFilippo’s Service Co.

DOMINICK GUARINO

National Comfort Institute

LOUIS HOBAICA

Hobaica Services

MATT MICHEL

Author

BRIAN STACK

Stack Heating & Cooling

The two industry leaders discussed how to create AI automations to handle mundane tasks and free up time for business owners and managers to focus on more important responsibilities. For example, Zapier is a platform that’s a bridge between two platforms.

“In a nutshell, it’s a way to take data from one place and automatically move to another so another action can happen,” Blissett said. “Think of it this way: we’ve automated over 260,000 tasks this year. And if you really do the math on that, let’s say the average task takes like five or 10 seconds, we’re saving tens of hours per month on things that we don’t need to be doing. We were just looking at it, it’s just over 120,670 hours of manual work saved. A normal administrative salary of $25 an hour came to like $18,000-$19,000.”

Blissett and Crouch noted that some of the Zap automations that contractors can create to save time and money include automated Google review responses, automated posting of reviews to social media channels, writing invoice summaries, following up on leads, and more.

“The very first Zap is called a trigger, and then each one of the boxes afterwards is called an action step,” Blisset explained. “Your trigger happens, then it causes the action. For example, you get a new lead in the CRM. Then you send it to ChatGPT to write an email. The AI writes the email, it gets put inside of Gmail, and you can put it inside of a draft folder, or you can send it directly if you trust it enough. Then, there is an immediate follow up. Zap sends that follow-up on day one. Then, you can have it create an SMS text message and send that. Afterward, you can schedule another message three days later. Then, after seven days, another message is sent. After 14 days, it can add a tag in the CRM that no customer has responded in that time period. This is an example of an automation. There’s a stop function as well, so if the customer responds to the text, it stops the automation.”

Both presenters also stressed that doing something just because it’s the way it has always been done is not a valid reason to avoid AI—especially when your competitor is already gaining an advantage by using the technology.

“We all know that time is the one finite resource on the planet,” Crouch said. “You don’t get it back after that hour’s gone. It’s never coming back. If we can do more with those hours—focusing on more revenue-producing things that actually engage our brain that we actually want to do, your business is going to be that much better for it. You’re going to be a better team member, a better leader.”

Don’t miss Blissett’s CB Influencer column this month on page 29 as he dives deeper into the AI and automation topic.

We’re in the middle of the AI revolution. Now is not the time to bury your head in the sand. As the HVAC landscape grows ever more competitive and customer expectations climb, AI isn’t just an optional upgrade—it’s your new co-pilot. HVAC professionals who ignore AI risk watching their rivals steal the advantage. The future is automated—don’t let it pass you by.

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PHCC Contractors Make Major Impact During 2025 Legislative Conference

WASHINGTON—The Plumbing-HeatingCooling Contractors—National Association (PHCC) successfully concluded its 2025 Legislative Conference in Washington, D.C., on May 21, with a day of critical advocacy efforts that will benefit contractors across the country.

More than 100 PHCC members, chapter leaders, and industry stakeholders gathered in the nation’s capital from May 20–21 to champion key issues affecting the plumbing, heating, and cooling industry. Attendees met with lawmakers to support federal workforce development programs, defend natural gas as a vital part of the U.S. energy mix, promote consumer choice, and advocate for pro-growth tax policies.

The conference opened with an executive policy forum, a newcomers’ briefing for over 20 first-time participants, and a comprehensive legislative update from PHCC’s Government Relations Department. Lunchtime honors included a special recognition for long-time PHCC Member Butch McGonegal by PHCC of Virginia. Attendees also heard from former U.S. Congressman Tom Davis, who offered a strategic outlook on the current political landscape.

Industry collaboration was on full display at an evening Capitol Hill reception on May 20, where PHCC members networked with members from the Air-Conditioning,

Heating, and Refrigeration Institute (AHRI) and Heating, Air-conditioning & Refrigeration Distributors International (HARDI). Despite inclement weather, PHCC contractors met face-to-face with lawmakers the following day to advocate for policies crucial to the industry.

The conference concluded with a reception that included a visit from Rep. Mark Messmer (R-IN), a second-generation PHCC contractor, who shared insights into ongoing legislative efforts.

In a well-timed development, the U.S. House of Representatives passed H.R.1— the “Big Beautiful Bill”—on the morning after the conference. The legislation includes several PHCC-supported tax measures, including:

• A permanent extension of the Section 199A pass-through income deduction;

• Maintenance of higher estate tax exemption thresholds; and

• An extension of bonus depreciation with full expensing beyond 2026.

“These legislative wins are a reminder of the power of grassroots advocacy and the strong presence PHCC can bring to Capitol Hill,” said Mark Valentini, PHCC vice president of legislative affairs. “Our unified voice is helping to shape policies that will reduce contractors’ tax burdens and empower them to reinvest in their

More than 100 PHCC members, chapter leaders, and industry stakeholders gathered in the nation’s capital from May 20–21 to champion key issues affecting the plumbing, heating, and cooling industry.

businesses and workforce.”

The bill now heads to the Senate, where PHCC will continue to push for final passage of these vital tax provisions.

The next PHCC Legislative Conference will take place May 5–6, 2026.

ACCA Launches R-454B Resource Center

ALEXANDRIA, Virginia—The Air Conditioning Contractors of America (ACCA) has launched a dedicated R-454B Resource Center to help HVACR contractors navigate the current refrigerant shortage with timely, factual information and safety resources.

As the industry adjusts to the phasedown of high-GWP refrigerants and increased demand for R-454B, contractors across the country are facing challenges in securing product, maintaining installation schedules, and managing customer

PHCC-National Association

expectations. ACCA’s Resource Center is designed to address these concerns by serving as a centralized hub for updates, best practices, and training materials.

“Our mission has always been to guide, equip, and advocate for contractors—especially in moments like this,” said Barton James, ACCA president and CEO. “We created this Resource Center to provide real-time, actionable support so contractors can keep their teams safe and their businesses running efficiently.”

The R-454B Resource Center includes:

• Regularly updated FAQs;

• Free A2L refrigerant safety training for ACCA members;

• Guidance from manufacturers and suppliers; and

• A feedback form for contractor questions and input.

The Resource Center is live now at www. acca.org/refrigerantshortage.

Interplay Learning Launches Interactive In-the-Field Guides

AUSTIN, Texas—Interplay Learning announced the launch of its new In-the-Field Guides. These mobile-optimized, interactive resources are part of a comprehensive, structured development program that extends learning to maintenance technicians at the exact moment they need it most: in the field.

Purpose-built for real-world troubleshooting, these step-by-step digital guides complement structured learning with justin-time instruction and help reinforce key repair and diagnostic tasks. With an intuitive, mobile-first design, technicians can easily access the guidance they need while on the job, without halting their workflow or waiting for support from a supervisor.

The initial launch focuses on highdemand repair scenarios in the multifamily industry, with training on critical equipment such as electric and gas water heaters, electric ranges, dishwashers, refrigerators, washers and dryers, and heat pump systems. These are among the most common systems technicians encounter in the field and are often associated with service calls that demand quick, confident action. Additional scenarios, including

mini split systems, will be added soon to expand support even further.

Each In-the-Field Guide offers a structured, yet interactive experience that walks technicians through identifying system components, locating parts, and taking accurate measurements. At each stage, short knowledge checks are integrated to keep technicians engaged and to reinforce proper decision-making. Most importantly, the guides are fully optimized for mobile devices, making them easy to reference during live troubleshooting without returning to the shop or a training room.

These new guides act as a powerful extension of Interplay’s comprehensive learning program, helping bridge the gap between training and real-world application. By pairing the guides with hands-on instruction, foundational coursework and assessments, organizations create the cohesive learning experience that’s necessary to build true competence and confidence on the job. Together, these tools ensure technicians are not only prepared for the moment but are continuously developing the skills they need to grow and succeed over time.

A well-rounded training program helps companies achieve meaningful improvements in performance and consistency. Teams are better equipped to improve first-time fix rates and reduce downtime. With In-the-Field Guides, they can also reinforce standardized troubleshooting processes on the job while boosting technician confidence and reducing the need for callbacks or outsourcing.

“When something breaks, techs don’t need to pause and search for answers. They need guidance in the moment,” said Doug Donovan, CEO and founder of Interplay Learning. “In-the-Field Guides are designed to extend structured learning into the flow of work, giving technicians realtime, situational support. When paired with foundational training, they help build a more confident, capable workforce that’s ready for whatever the day brings.”

The launch of In-the-Field Guides is a major step in Interplay’s commitment to

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delivering modern, performance-driven training solutions. More mobile-first tools are already in development and will be released later this year, continuing the company’s mission to meet learners where they are and provide the real-world support today’s technicians need. To learn more, visit www.interplaylearning.com.

Air Pros USA Founder Reacquires Florida Operations with Exuma Capital Partners

HOLLYWOOD, Florida—Florida entrepreneur, Anthony Perera, has successfully reacquired Air Pros USA’s legacy operations in Florida through the investment firm, Exuma Capital Partners. This strategic move brings Air Pros USA back under Perera’s leadership, reinforcing its mission to provide top-tier home services in Fort Myers, Fort Lauderdale, Hollywood, Miami, Boca Raton, Davie, Tampa, Ocala, and Orlando. The purchase also includes Florida-based plumbing company, Drain Genie and the generator and electrical contracting brand, Personalized Power.

Perera, a native Floridian, who stepped down as Air Pros USA CEO in 2022, is committed to rebuilding the company he founded in 2017. The move comes after the previous board voted to

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restructure, breaking the company into regional operations under Chapter 11 proceedings. Perera’s re-acquisition ensures that Air Pros USA’s legacy company, which has always been profitable, will remain a strong and reliable service provider in the Florida region.

“I started this company with one truck and one employee and grew it into one of the largest HVAC companies in the state focused on delivering exceptional service to our customers in Florida,” said Anthony Perera, Founder and Managing Partner of Exuma Capital Partners. “After I stepped down as CEO, I saw the board making business decisions that were not in the best interest of our employees or our customers. So I’m coming back with a full commitment to maintain the high standards and performance that led Air Pros USA to become a leading Florida company.”

Perera’s rebuilding strategy includes immediate investments to restore the company’s original customer-first culture, rebuild a network of leaders who share his vision, and reassure customers of the company’s stability.

The legacy operations of Air Pros USA have been acquired through the private equity firm, Exuma Capital Partners, which Perera founded in 2024 to support strategic investments in highgrowth middle markets like home service and technology industries. Air Pros USA joins Peak Roofing Partners, Inspected.com, Property. com, and R30 Brands in Exuma Capital’s Family of Companies.

Tariffed Construction Materials Prices Rise in May

WASHINGTON— Construction input prices increased 0.2% in May compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 0.3% for the month.

Overall construction input prices are 1.3% higher than a year ago, while nonresidential construction input prices are 1.6% higher. Prices decreased in 2 of the 3 energy categories last month. Natural gas prices were down 18.7%, while prices for unprocessed energy materials were down 3.5%. Crude petroleum prices increased 1.3% in May.

“Construction materials prices continued to increase at a faster-than-ideal pace in May,” said ABC Chief Economist Anirban Basu. “While input prices are up just 1.3% over the past year, that modest escalation is entirely due to price decreases during the second half of 2024. Costs have increased rapidly since the start of this year, with input prices rising at a 6% annualized rate through the first five months of 2025.

“Accelerating input price escalation is largely due to rapid price increases for tariff-affected goods like iron and steel,” said Basu. “Expect this dynamic to remain over the next few quarters; these data predate tariffs on iron and steel rising from 25% to 50%, which went into effect on June 4. Despite rising input prices, contractors remain relatively optimistic about their profit margins, according to ABC’s Construction Confidence Index. With cooler-than-expected economywide inflation in May, the number of expected rate cuts in 2025 has risen. If those expectations are realized, it would provide the construction industry with a much-needed tailwind.”

Perera Air Pros USA

Service Experts DFW Unites Under One Brand

RICHARDSON, Texas—Service Experts has unified its four local centers in Dallas-Fort Worth – Levy & Son, Stark Services, Calverley, and Crawford Services—under its flagship brand, Service Experts. One of the leading residential HVAC service companies in the U.S., Service Experts’ more than 4,000 people serve 2,500 homes and businesses daily for everything from heating and air conditioning to indoor air quality, plumbing, electrical and other specialized home services. Its local centers have worked in over 150,000 homes across North Texas.

Locally, Service Experts acquired Calverley in Fort Worth in 2001, Levy & Son in Dallas in 2015, Stark Services in Fort Worth in 2018, and Crawford Services in Grand Prairie in 2024, which will now operate in North Texas as Service Experts. When out about town, customers will start seeing the new Service Experts logo with its red and blue “sunflake” on billboards, vehicles, signage, TV commercials and apparel that formerly featured Levy & Son, Stark Services, Calverley, and Crawford Services. Existing contact phone numbers will remain the same.

“We’ve been serving customers across Dallas-Fort Worth for more than 115 years, and will continue to offer the same expert service our customers have come to expect,” said Joe Rich, assistant general manager for the Dallas center. “The Service Experts brand allows us to emphasize the national support that stands behind our local businesses. Individual Service Experts centers like ours have access to national agreements with major suppliers and our teams get incredible training and benefits packages given the backing of our national company.”

Service Experts centers can also offer the Service Experts Advantage Program, an all-inclusive leasing program that gives customers access to new systems and equipment that include installation, maintenance and repairs for one low monthly payment.

“Being able to leverage Service Experts’ Advantage program helps the homeowners we work with access the best, safest and most energy efficient equipment throughout their homes – HVAC, water heaters, indoor air quality, water purification, and generators,” added Richard Fulghum, assistant general manager for the

Service Experts has unified its four local centers in Dallas-Fort Worth—Levy & Son, Stark Services, Calverley, and Crawford Services—under its flagship brand, Service Experts. Service Experts

Fort Worth center. “A single monthly cost for everything, which also covers all-inclusive maintenance and proactive repairs, is a huge value to many cash-strapped people we serve throughout the DFW Metroplex looking to make their dollars go further. We even offer discounts for multiple systems.”

As part of the rebrand, Service Experts is also giving away a high-efficiency AC system for one lucky homeowner in the DFW area.

Rheem Announces Temporary Increase in R-454B Unit PreCharge Levels

ATLANTA—Rheem, a manufacturer in the HVACR and water heating industry, announced it will temporarily increase the factory pre-charge of R-454B refrigerant in all 13.4 and 14.3 SEER2 air conditioners and 14.3 SEER2 heat pumps across all brands. The temporary increased refrigerant charge will not raise the price of units.

This announcement comes on the heels of the current industry shortage of R-454B cylinders. Rheem is increasing the factory charge to minimize the need for its customers to acquire additional refrigerant for installation. Due to the increased factory charge, the system now supports matches with a 30-foot line set and a 3/8-inch liquid line, resulting in an increase from the previous 15-foot standard.

“At Rheem, our partners play a central role in every decision we make. In light of current R-454B refrigerant cylinder supply challenges, we are temporarily increasing the factory pre-charge in our units—without any price increase—to ensure continued performance, reliability, and minimal disruption for our contractors and distribution partners,” said Kevin Ruppelt, senior vice president and general manager, US Air Division, Rheem.

Rheem is fully committed to providing reliable support during this period of industry transition and maintaining the highest standards of safety, performance, and compliance of its products. For more information on Rheem, visit www.rheem.com.

RLS Mobile Showroom Provides HandsOn HVACR Education Nationwide

ST. LOUIS— One year after cutting the ribbon on its St. Louis-based Training Center and launching its innovative Mobile Showroom, Rapid Locking System (RLS), a provider of press-to-connect fittings for the HVACR industries, is celebrating a year of achievements with HVAC/R industry partners gaining hands-on training that can immediately impact their business.

Since opening its doors in April 2024, the RLS Training Center has become a hub for HVACR education, equipping contractors, engineers, and wholesalers with live press fitting demonstrations, behind-the-scenes access to the manufacturing facility and a variety of certification opportunities. RLS’ goal was to train 20,000 contractors, engineers, and wholesalers in year one across all training efforts, and the company achieved this goal, reinforcing RLS’ commitment to advancing safe, efficient and modern HVACR installation practices.

“Over the last year, we’ve seen firsthand how accessible training can impact a contractor’s ability to grow their business and stay ahead of industry changes,” said Joel Reedy, president of Rapid

RLS’ goal was to train 20,000 contractors, engineers, and wholesalers in year one across all training efforts, and the company achieved this goal, reinforcing RLS’ commitment to advancing safe, efficient and modern HVACR installation practices.

Locking System. “As we move into year two, we’re focused on expanding our reach and investing in more ways for our customers to learn and succeed.”

At the same time, the RLS Mobile Showroom has taken pressto-connect education on the road. Outfitted with virtual reality tools and hands-on demonstration capabilities, the Mobile Showroom has brought the RLS experience directly to job sites and distributor locations nationwide. In the past year, the Mobile Showroom has made stops at places like Milwaukee, Indianapolis and Columbus, and now plans to head East.

In the next year, RLS again plans to train 20,000 more professionals through the combined training center and mobile outreach initiatives, as the industry continues to evolve amid refrigerant changes, labor demands and increasing emphasis on efficiency.

To request a training or Mobile Showroom stop, or to learn more about RLS educational resources, visit www.rapidlockingsystem.com.

Climate Control Group Names Daniel Ellis CEO

OKLAHOMA CITY—The Climate Control Group, Inc. (CCG) announced the appointment of Daniel Ellis as CEO, where he will focus on strengthening CCG’s operations and expanding the adoption of its core technologies.

Ellis served in the executive leadership of CCG subsidiary ClimateMaster for 20 years from 1995 to 2015, including the last 15 years as president, where he was instrumental in shaping the company’s strategic and operational direction. He brings more than four decades of experience advancing the water source and geothermal heat pump industry, including the 1983 co-founding of WaterFurnace, where he served as executive vice president, and later CEO until 1995.

In recognition of his significant technical contributions and ardent industry advocacy, Ellis was awarded the Ritter von Rittinger Medal in 2014, the highest international honor in the air conditioning, heat pump and refrigeration industry.

Ellis

CCG

Rapid Locking System

“As CEO, my immediate objective is to align and focus our people during this important transition for CCG,” said Ellis. “It is their dedication, creativity and talent that will drive our future.”

Ellis’s rare combination of internal knowledge and extensive history, along with his system engineering experience and recent decade leading a commercial design-build HVAC contractor, gives him a unique perspective of the broader HVAC industry.

“Dan’s return offers both continuity and renewed strategic focus,” said Simon Karlin, head of NIBE Climate Solutions. “His unique blend of technical acumen, field experience and deep understanding of CCG’s operations well positions him to guide our organization into its next phase of growth.”

JJM Alkaline Technologies Celebrates 20th Anniversary

WESTFIELD, Massachusetts—

JJM Alkaline Technologies, a manufacturer of condensate neutralizers, is celebrating 20 years of delivering the best solutions on the market for the treatment of acidic condensate produced by high-efficiency, gas-fired heating appliances (i.e. 90+% boilers, furnaces, and hot water heaters).

JJM Alkaline Technologies was established in 2005 by its founder, George Carney, and his wife, Denise, in their home garage in Massachusetts. 20 years ago. JJM designed its first condensate neutralizer that was purpose-built to effectively treat acidic condensate, a byproduct of the condensing technology used in highefficiency, gas-fired heating appliances. Unlike air conditioning condensate, acidic condensate is corrosive because it includes various acids from burning natural gas (or propane). If discharged untreated, it can corrode plumbing, concrete foundations, floor drains, septic systems and other wastewater infrastructure.

From modest beginnings, JJM’s innovative condensate neutralizer solutions quickly gained traction in the heating and plumbing industries. JJM products are sold via leading wholesale distributors of heating and plumbing equipment throughout the United States and Canada. The company continues to innovate and bring to market purpose-built solutions that heating and plumbing industry professionals rely on to efficiently and effectively treat acidic condensate.

“It’s incredible to recognize how much growth JJM has experienced over the last two decades,” said Kyle T. Emmons, president of JJM Alkaline Technologies. “As we celebrate this company milestone, we are energized about what the next 20 years will bring, especially as condensing heating equipment continues to be rapidly adopted across residential and commercial installations. JJM is positioned to equip HVAC and plumbing professionals with the best, purpose-built acidic condensate solutions on the market.”

With recent code developments, the treatment of acidic condensate is now required by local, national, and industry plumbing codes (i.e. 2018, 2021 editions of the International Plumbing Code (IPC)). Industry professionals should install and maintain condensate neutralizers on every condensing appliance installation to ensure code compliance and prevent property damage.

To learn more about JJM and their Made in America condensate neutralizer solutions, visit https://jjmalkalinetech.com.

Berner Intl. Doubles Manufacturing Footprint in Pennsylvania

NEW CASTLE, Pennsylvania—Berner Intl. announced its plans to double the company’s current manufacturing footprint in New Castle, Pennsylvania, by adding 55,000 square feet of new production space and 70 new jobs, in order to meet growing global demand.

The total investment is more than $15 million over the life of the project, roughly four to five years. The Pennsylvania DCED has committed support through the PA First Grant program, Pennsylvania Industrial Development Authority (PIDA) financing, and workforce development incentives representing approximately 30% of the overall investment.

Construction will begin in Summer 2025 and is expected to conclude in early 2026. Operations will commence as early as Q2 2026.

“Expanding our manufacturing capabilities in New Castle PA directly serves our customers’ needs,” said Mikael Berner, chairman of the board. “This investment in advanced manufacturing ensures we can meet growing demand for our innovative, sustainable solutions while creating a stronger future for our customers, employees, and community.”

The expanded facility will support a 150% increase in production capacity, ensuring Berner can meet rising customer demand across North America, Europe, Latin America, and the Middle East.

Data Center Trends Heat Up Opportunities for HVAC Contractors

As the digital world continues to expand, so does the demand for reliable, energy-efficient data centers—and that’s creating a booming business opportunity for HVAC contractors. Just about all market research firms predict double-digit annual growth (roughly 12–16%) in the next one to three years as data center capacity ramps up to support AI, cloud, and hyperscale infrastructure. With servers and networking equipment generating massive amounts of heat 24/7, precision cooling has become mission-critical to keep data flowing and downtime at bay.

“As new computing technologies emerge, data centers are rapidly adapting to meet changing requirements—and the high-performance computing power necessary to support them,” says Sean Crain, data center sales engineer, Johnson Controls. “This evolution typically results in three primary challenges when designing cooling systems: increasing rack densities and the required cooling systems to

support it; limited equipment space—cooling equipment must also be designed with footprint in mind; and rising ambient design temperatures. Additionally, as data center development expands around the U.S., local weather conditions can also impact ambient temperature. Understanding these factors and how they may shift over time is essential for successful air-cooled heat rejection.”

Mihir Kalyani, data center business unit manager, Americas, EVAPCO, also points to greater rack density resulting in changes in data center design for next-gen AI workloads. Kalyani notes that existing data centers with air-cooled racks are being retrofitted with liquid-cooled server racks, which can be cooled by air-cooled or water-cooled chillers.

“Air-cooled chillers take up large footprints, have high connected loads and start to lose viability as the heat rejection requirements grow, as data centers get bigger,” he says. “We are seeing data centers over 1 GW in density, which is over 280,000

tons of heat rejection—truly massive and unprecedented. When water-cooled chillers are deployed, EVAPCO’s heat rejection technologies can be used to cool them— evaporative, hybrid, dry, or adiabatic methods of heat rejection, depending on site priorities and resource availability.”

According to Nolan Foran, national sales manager, mega projects, data center, semiconductor, EV battery, for Watts Water Technology, the conversations regarding data centers has shifted away from environmental or space cooling, involving evaporative cooling for air systems to chilled water solutions for data center facilities.

“The increase of chilled-water systems for direct-to-chip cooling within data centers is one of the fastest-developing trends I’ve witnessed,” he says. “For new facilities, the needs are merely built in from the outset. However, for existing data center facilities, the need for new chilled or ‘technical water’ loops are evolving quickly. The need is to accommodate faster, more effective

heat removal for direct-to-chip cooling applications involving hydronically-cooled server rack cabinets containing highdensity, heat-generating GPUs (general processing units) for high-performance computing and AI applications.”

Foran adds that he is seeing the need for a lot of stainless steel components, such as strainers, ball valves, check valves, balancing valves, butterfly valves, regulators, and ACVs. “The use of glycol solutions is also common to mitigate biological formations. This is important because the piping closest to the CPUs is quite small, and any

contaminant can impede the flow of water for cooling. That’s why we refer to this system as “high purity” piping and components, favoring Watts stainless steel flow controls—and also thermoplastic (Orion) polypropylene and PVDF piping systems.”

A Rising Tide of Liquid Cooling

The new cooling demands in data centers often go beyond the limits of traditional air cooling, which is driving a growing interest in liquid cooling solutions, notes Steve Hueckel, director of data centers, Daikin Applied.

“Specifically, direct-to-chip singlephase liquid cooling is gaining traction, which is where a liquid coolant is sent directly to the chip to extract heat and transfer it to a cooling tower or another heat dissipation system,” he explains. “Over the next several years, we may also see increased adoption of immersion cooling. Still, air cooling isn’t going away. It will be necessary for the rest of the server rack, so we expect to see growth in both air and liquid cooling technologies. The overall market is expanding significantly because of these changes.”

As liquid cooling gains prominence due to the growing demands of AI workloads, cooling distribution units (CDUs) also play a critical role in thermal management, Hueckel adds. “These units manage the distribution of liquid coolant directly to the areas that need it, primarily the GPUs (graphics processing units). Common CDU sizes today are around 1 to 2 megawatts (MW), though there’s also demand for smaller units around 500 to 600 kW. Looking ahead, companies are now exploring larger systems with projections for future CDUs exceeding 5 MW.”

Danielle Rossi, global director of mission-critical cooling for Trane, agrees, noting that nearly every month, a new chip technology is released, which, in turn, creates a need for rapid innovation in cooling technology.

“There’s a growing demand for liquidbased cooling, including both brownfield retrofit and greenfield design,” she says. “Most current designs are hybrid, including both liquid and air cooling due to the various density requirements needed for both traditional and AI applications within

Top: According to EVAPCO’s Mihir Kalyani, modular or scalable layouts like packaged chiller plants with dry coolers or cooling towers allow data centers to bring load on quickly, resulting in very short build times. However, he is seeing power being a constraint currently for speed. The larger data centers, 100 MW+ are mostly building data center chiller plants, though he is still seeing a lot of modular deployments. Bottom: When water-cooled chillers are deployed, EVAPCO’s heat rejection technologies can be used to cool them—evaporative, hybrid, dry or adiabatic methods of heat rejection, depending on site priorities and resource availability. EVAPCO

Vladimir_Timofeev / iStock / Getty Images Plus

the same facility. Air cooling will remain necessary for some time, but liquid cooling is quickly becoming a design norm.”

Liquid cooling has the added benefit of being more efficient than air-cooling, Kalyani notes. “This results in a higher ‘density’ of computation or storage in a smaller footprint. Air-cooled data centers will continue to exist, but any data centers set up for AI workloads will most likely begin with, or convert to, liquid-cooled systems.”

Efficiency, Sustainability Still Top-of-Mind

Many data center leaders are prioritizing energy efficiency as a means to significantly lower energy and thermal loads and accelerate their connection to the grid, according to Crain. Water conservation and refrigerant selection are additional factors that have become increasingly important to sustainability-focused data center providers, he notes.

“Most notably, we have seen this in the widespread transition to air-cooled systems using low-GWP refrigerants,” Crain explains. “Air-cooled chillers with features such as variable speed drive (VSD) and capacity control logic help deliver higher part-load efficiencies even in off-design

conditions. This can help enhance energy efficiency as rack densities evolve. Additionally, the shift toward compact designs allows manufacturers to minimize material usage and reduce embodied carbon emissions.

Sustainability in data centers is all about balance. While liquid cooling offers greater efficiencies in managing high heat densities, it raises concerns about water usage— especially in regions struggling with water scarcity, Hueckel says.

“This is one reason why air-cooled chillers are popular,” he says. “These systems use air as the cooling medium and operate in a closed-loop system, which helps conserve water. While water-cooled systems can also be designed as closed-loop, they generally see less demand in regions where water is limited. In Arizona, for example, water is at a premium, so air cooling is the preferred option. In North America overall, roughly 70% of the market has historically relied on air cooling, and we expect that trend to not only continue but to grow.”

As demand for air-cooled chillers grows, there is a parallel focus on enhancing their energy efficiency, Hueckel adds. “We anticipate increased adoption of oil-free centrifugal chillers industry-wide because their energy efficiency ratios are several

points higher than traditional chillers. While the initial cost is greater, the energy savings over time makes the investment worthwhile because it offers a better lifecycle cost.”

What Contractors Need to Know

The technology changes from air-cooling to chilled water cooling are happening so fast, they’re on the fly, Foran explains.

“For instance, for data centers that were well underway in construction; suddenly, there’s an urgent call for the addition of technical water loops—essentially involving retrofits for new facilities during construction,” he says. “We get those calls, naturally, because our expertise is in water—all facets of it. We have the breadth of product and deep expertise, so we find ourselves quite busy with this work, sometimes very urgently.”

His advice to contractors is to be willing to evolve, adapt, and diversify.

“Currently, there are labor and material challenges,” Foran adds. “Yet for those who keep an eye on the trends shaping the industry, with keen attention to how you can play an essential role to managers in this fast-paced work, the sky’s the limit. Be willing to be accessible at all times, to serve as a resource, to improve their own knowledge base, and to hire those who possess the skills and knowledge needed in this demanding work. Be on tap to jump in—because these managers need skilled resources willing to help them execute solutions.”

Hueckel notes that some data center chillers are sent to job sites that are still under construction, which means the equipment sits in a yard for months before installation.

“These are large, heavy systems often lifted by cranes and transported by flatbeds, and exposed to the outdoor elements,” he says. “During that process, bolts can loosen and components can shift, so it’s critical that contractors perform thorough inspections when the chillers arrive on site. Because of this, there’s a strong opportunity for service agreements to become part of the installation process. Daikin offers commissioning assistance to help get these systems up and running the right way because we know the equipment inside and out, and

Smart technologies are now applied to bring greater control to facets of operation that, previously, were just taken for granted. For example, smart strainers and backflow devices are used, along with sophisticated, real-time leak detection—all feeding information into monitoring systems that not only minimize disruptions, but optimize performance continuously. Watts’ Nexa intelligent water management system is the platform for this new and powerful capability. Watts Water Technologies

we know exactly what typically needs to be checked before startup. Ensuring the chiller is received in proper condition and then paired with a solid service plan is key to long-term performance.”

Crain adds that just as the data center market is rapidly evolving, so are innovations in cooling equipment. “Innovations like smart connected chillers and intelligent building automation solutions drive operational performance while supporting installation and maintenance practices.

“By leveraging these solutions, operators and technicians can access live dashboards and reporting tools to identify issues faster and easier than standard processes that rely on manual collection and data analysis,” Crain continues. “Features like AI troubleshooting modules can help further streamline problem-solving workflows. Using these advancements, teams can assess the root cause of issues sooner to optimize equipment performance and maximize up-time.”

Additionally, new technologies require adjustments through every stage of design, but people forget about the adjustment to maintenance schedules, technician experience, and serviceability, Rossi notes.

“Extensive training will be needed for both IT professionals within this space for server replacement, and for HVAC and networking professionals working with or around the equipment,” she explains. “When transitioning to liquid cooling, whether it be a full transition or hybrid design, all personnel interacting within the space should be trained and comfortable with whatever technology is being used. This training and exposure should be done early in the design process to help ensure staffing by the owner and any vendors meets the design needs. Some changes may be large, like transitioning to immersion cooling at the rack or requiring wet maintenance in the white space. In other cases, a vertical rack transition direct-tochip from air cooling may not be as large an adjustment. Training will help limit the adjustment time.”

Looking Ahead

According to Crain, intelligent building solutions powered by AI and machine learning can unlock new opportunities to optimize performance, drive efficiency, and

fortify cyber security. “Today, fewer than 10% of data centers are fully integrated with intelligent BAS solutions. However, by integrating digital optimization, the average facility can reduce energy spending by as much as 30% and cut carbon emissions by up to 40%. This presents a powerful opportunity to unlock new levels of data center performance.

“These intelligent platforms go far beyond digitally connecting equipment,” Crain explains. “They unify and analyze vast amounts of data from the equipment and subsystems within the building and combine it with dynamic factors like weather conditions, space usage, or utility rates. These platforms can then autonomously adapt, in real-time,

to advance the unique goals of each facility. The data center market is a fast-paced environment where trends and standards can quickly shift in new directions. Forming strong, two-way partnerships is essential to keep pace. The most successful teams often rely on vertical integration that is inclusive of all invested parties.”

Cooling technologies must adapt to the high-density chips consistently being released within the market, Rossi notes.

“Liquid cooling will likely become more prevalent, including the continued use of hybrid applications,” she says. “Associated thermal management will need to adapt to support changing requirements regarding densities, water temperatures, efficiency

goals, and heat recovery requirements. Legislation will play a part in efficiency requirements with some countries in the EU requiring heat recovery for data center applications and, in the U.S., with potential tax incentives for utilizing high-efficiency designs. It’s increasingly important to be able to adapt and innovate quickly to support the market and the chips to come.”

Power is going to be one of the biggest factors shaping the future of data centers, Hueckel says.

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Greenheck is leveraging decades of applied equipment engineering expertise to evolve commercial building comfort. With efficient, adaptable products like dedicated outdoor air systems, energy recovery ventilators, and our newest line of rooftop units, Greenheck is more than a fan company.

We’re solving the ventilation challenges of today’s buildings, raising expectations to the next level.

“Right now, access to power is a driving force behind where data centers are being built, with new facilities going up in locations where power is readily available,” he says. “In areas where the infrastructure isn’t yet in place, a big part of the challenge, as well as opportunity, will be building that power access from the ground up. In the future, more data centers may be designed with on-site power generation built into their architecture and layout.”

Looking further ahead, Hueckel adds that he’s already hearing that some companies are exploring next-generation chips with heat densities as high as 600 kW. “At that level, current chiller technology likely won’t be sufficient. It could require a major architectural shift, such as full immersion cooling using dielectric fluids and even two-phase cooling systems, where the fluid changes state to extract extreme levels of heat.

“That kind of change may still be five to 10 years out, but don’t underestimate how fast things can evolve,” he continues. “The pace of growth we’re seeing across the industry is accelerating, and data center vendors are already planning for much higher rack density loads. It makes for a very exciting future where we may see a complete shift in technology to accommodate these emerging demands.”

LEARN MORE

Two technicians inspecting a Trane TCAA oilfree magnetic bearing chiller unit on a rooftop at a data center.

Trane

No Room for Downtime: How to Win and Keep Mission Critical Service Agreements

When it comes to mission-critical facilities, such as hospitals, data centers, and laboratories, HVAC system uptime is essential. This offers an opportunity for HVAC contractors selling missioncritical service agreements. Contracting Business sat down with Greg Crumpton, vice president of Service Logic, a privately held HVAC and mechanical services company with 110 locations in the U.S. and Canada, providing commercial, industrial, and mission critical HVAC services, to discuss best practices for selling these types of agreements.

CB: What’s your typical sales pitch or value proposition for mission-critical clients?

GC: I rarely ever pitch to the Mission Critical operator. This is a customer that knows what they need, my job is to listen to that need, ensure I can help them with the proper skilled technicians, and be there when they need it. This is a very relational sale. People lose their jobs when they hire the wrong maintenance partner … being a known entity, staying cognizant of what clients are up against, and helping them solve for that equation. That’s where I spend time when I am in a sales role.

CB: What specific services do you include in a service agreement for mission-critical environments?

GC: The needs vary widely based on the equipment that is part of the agreement. From Centrifugal Chillers using typical oiled bearing compressors to magnetic bearing (oil-free) chillers to adiabatic cooling systems on the airside, it is a wide breadth. Normally, you want to sit with the end-user and go through the scope of work, especially when there is an RFP that is put out to the market. Many times, what has been requested in an RFP can really be enhanced by a skilled partner. Maybe changing the frequencies of visits due to geographies, maybe knowing there is a Service Bulletin out on a specific piece of equipment, or perhaps, working with the end-user to allow some of the lesser skill-required tasking to be done by the in-house team. There are times the RFP can be a cookie-cutter version and not sitespecific, so if you have the chance, use the opportunity to really customize, through your optional services on your proposal, to stand out from the chaff.

CB: How do you differentiate your service agreements from competitors when pitching to a high-stakes client?

GC: The crux of it is making each opportunity your chance to

shine. Do you understand what your client is trying to achieve? I may be thinking super-high density facility, when maybe it is just a DR (disaster recovery) site and 3 kW per rack is and always will be the load. Perhaps the need is to maintain the space until the current lease expires, and they just need a “get by” plan. What matters is that you get close with the customer—they need an advisor, not just someone looking for a purchase order.

CB: What response time guarantees do you build into these contracts, and how do you support them operationally?

GC: Many times, there will be an SLA (service level agreement) for all parties for a two-hour, on-site response for an emergency situation. Some go beyond and have an hour timetable for a verbal communication to ensure the two-hour window will be upheld. You must remember, if a mission-critical facility is calling, they need help, they are not calling at 3:12 a.m. to say, “Hello.”

CB: How do you quantify the ROI or risk reduction of your service plans to decision-makers?

GC: The easy math is on downtime. Most truly “mission-critical” facilities know what it costs them when they are down, slowed, or partially down. Think of an MRI or CT Scan facility that cannot scan patients due to the chiller serving the magnet not being online—that is a costly venture. If you have a proven track record, the skilled and trained staff to accomplish the work, selling the agreement is not a difficult task. But you have to be knowledgeable, professional, up to speed on their needs, and understand what “Yes” and “Now” actually mean.

CB: What objections do you most commonly hear, and how do you overcome them?

GC: Some of the objections can be about price—that’s then on the contractor to sit and go through the agreement line by line and show the hours that will be required. The industry maintenance programs flow around tasking—tasking is labor and material—if you want to perform the proper OEM-recommended maintenance program and tasking list, it is strictly a matter of labor and the material, but labor is the largest factor. Once you do that, if the customer thinks you are still too expensive, offer to cut the tasking to their budget level, but ensure (s)he knows what is being reduced in the scope. If two or three true professionals are proposing scope of work that is tight, on an accurate equipment list, there should not be a huge difference in cost, the difference is in the selling price.

To see the full interview, visit www.contractingbusiness.com/55295532.

Crumpton

From Tech to Pro in 8 Weeks: Fast-Tracking the Future of the Trade

In an industry where skilled labor is in high demand, King of Prussia, Pennsylvania-based Sila Services is taking training into their own hands—literally. Faced with the ongoing challenge of finding qualified technicians, Sila developed a new workforce development program designed to quickly and effectively prepare new hires for the field.

Built to address the skilled labor crisis head-on, Sila University Project LiveFire is an eight-week paid training program that provides a direct, modern, and inclusive pathway into the HVAC trade, complete with industry-recognized certifications and guaranteed job placement at graduation.

“People First is our No. 1 core value as a company, and nothing is more important to that goal that ensuring the next generation of HVAC techs is fully trained to support the growth of Sila Services and the industry more broadly,” says Jason Rabbino, Sila Services CEO. “We’re investing in exceptional people who can leverage the training, support and empowerment of Sila University to build long-term careers in the HVAC trade. This fuels Sila Services’ growth by tackling the critical national issue of a growing gap in skilled labor with a best-in-class development program.”

Project LiveFire is an initiative under Sila University’s umbrella, notes Edward McFarlane, chief learning and development officer at Sila. “We did an internal pilot in Fall 2024, and this was our first official launch,” he says. “We have 40 locations, so we have

a lot of needs. Because everyone graduates with a job, they’re interviewed by their sponsor company, the place they are going to work. The successful candidates are in school for eight weeks. Four days a week are in a classroom, then one day a week, they go back to the sponsor company and get to know the culture of the team and get hands-on experience.”

Accelerated Learning

The skilled trades sector is under immense pressure. According to the Bureau of Labor Statistics, HVAC technician demand is projected to grow 6% by 2032, yet trade school enrollment has declined by more than 10% over the past decade.

Project LiveFire was designed to provide an accelerated, accessible solution to this challenge, welcoming candidates regardless of prior HVAC experience, removing cost barriers, and training them for high-demand careers.

“What makes the Project LiveFire different is that students are paid to train. Sila University ensures there is no tuition and no debt,” McFarlane notes. “By the end of eight weeks, they’ve earned multiple certifications, gained real-world experience, have a full-time job waiting for them, and are confident they are ready to start a great, long-term career.”

Each Project LiveFire graduate earns three certifications: EPA Universal 608 Certification, NATE (North American Technician Excellence) CPH5 Certification, and OSHA Safety Training.

Jason Rabbino, CEO of Sila Services, addresses the latest class of Project LiveFire graduates.

Images courtesy of Sila Services

Classes are intentionally capped at no more than 14 students to allow for extensive hands-on training, real mentorship, and access to cutting-edge tools, including virtual reality simulations that mirror field conditions and Bluetooth-enabled toolsets.

“We looked for the highest standards in the industry,” McFarlane says. “OSHA 10 is a great course when it comes to quantifying and certifying how much someone knows. And when it comes to how we want systems installed and maintained, well, ACCA literally wrote the book. Full disclosure, I’m a member of the board of NATE and ACCA, so it made it easy to facilitate. We also look for technology solutions, so we have a partnership with Interplay Learning. There are some incredible resources out there written by some industry people. Between the lesson structure and the texts that are available from ACCA and NATE, it’s easier to put that together than just sort of shooting in the dark. Basically, we looked at what skills and abilities make the happiest and best technicians with the highest customer satisfaction. Then, we reverse engineered it—what to they need to know to become that?”

Creating a Technician Pipeline

Graduates from Project LiveFire’s inaugural cohorts move directly into full-time roles with their sponsor companies after graduating from Project LiveFire.

“After graduation, we give them thousands of dollars’ worth of tools—we have a very simple, minimal payroll deduction,” McFarlane explains. “When you think about a class like this, one of the things I love about it is that it opens up the road to people that might not traditionally have economic access to education—it’s expensive to go to trade school. Then you have all these tools. We wanted to find the best talent and then build a structure that took away as many of the barriers as we could.

“You’ve got to show up, you’ve got to be physically capable,” he adds. “There are certain things we cannot change, but outside of that, let’s make this as accessible as possible. That’s why we paid them to go through it. We feel like we’ve found some really talented individuals.”

Because the trainees have been spending time at their sponsor companies, reporting for work after graduation won’t be a culture shock or cold plunge, because they have already gotten to know their manager and some of their teammates.

Additionally, while the trainees are paid to go through training, once they are on the job, they immediately get a raise. “There is a pay progression,” McFarlane adds.

Thirty-one-year-old Q. Grier is a graduate of the pilot Project LiveFire program. She was previously a Sila warehouse associate for two years. “I joined the LiveFire training program because I really didn’t see much career growth staying in the warehouse long term. I went to Orleans Tech for HVAC, and I wanted to capitalize on the opportunity to learn more about the ins and outs of the trade.”

Grier says she believes the LiveFire program is very necessary for both experienced and inexperienced technicians. “John (the instructor) did an awesome job teaching every course and making sure we understood the lessons, even if that meant going over something more than once. Personally speaking, John really gave me a huge boost of confidence. I would highly recommend this training to anyone who is interested in working with their hands and learning something new every day. If you want to make a decent and consistent living, this is the way to get started.”

After graduating, Grier’s position with Sila King of Prussia location is a helper on installations and duct cleaning. “My managers are very aware how eager I am to learn it all from install, service, duct cleaning, and more. So far, they have been giving me plenty of opportunities to learn from all sides of HVAC, which I really appreciate and enjoy.”

She adds that it’s also good to know the company wants her to be successful and believes in her abilities.

Scaling the Impact

Following its successful launch in the MidAtlantic region, Sila is expanding Project LiveFire to its three additional regional training centers: New York/Connecticut, New England, and the Midwest. McFarlane anticipates two classes at each location twice a year. “This is about more than jobs, it’s about economic mobility and ensuring trade leadership for the next generation of techs and customers,” Rabbino added. “We’re proving that with the right training, the right support, and the right values, Sila can contribute to building the trades by creating the talent and the jobs that our industry and customers need.”

TOP: Nilson Richards Fernandez, a Sila Project LiveFire graduate. BOTTOM: Edward McFarlane with Kareem Wharton, a Project LiveFire graduate.

From Generalist to Specialist: How Focusing on All-Electric, All-Climate Heat Pumps Transformed

My HVAC

Business

One Colorado-based HVAC company transitioned to exclusively installing all-climate heat pump products, resulting in increased profitability and customer satisfaction.

Iknew 2017 would be a pivotal year for Ductless Plus HVAC Systems, my Centennial, Colorado-based company that serves the metro-Denver area. This was the year I saw a significant push toward ductless heat pump technology, which would change the course of the business.

After working in the HVAC industry for 35 years, I researched heat pumps and became captivated by ductless mini-split sys-

Centennial, Colorado-based Ductless Plus HVAC Systems specializes in all-electric, all-climate heat pump installation and maintenance.

tems as I learned about their unlimited potential. Ductless Plus, which I have owned since 2002, then went from being a one-in-athousand general HVAC contractor to a niche specialist that finds elegant ways to heat and cool people’s homes using all-electric, all-climate heat pumps.

Today, now that we’ve exclusively installed all-climate heat pump products for nearly eight years, business is thriving, customers are elated with the options we offer, and service calls are nearly zero because these HVAC solutions are so easy for homeowners to maintain.

Going All In on All-Climate Heat Pumps

I suggest HVAC contractors who are scrambling to master every aspect of boilers, furnaces, rooftop solutions, and other less efficient systems instead streamline their efforts. Our business has been more effective since simplifying services and doing one

thing well. Rather than have an abundance of general knowledge on an array of HVAC products and brands, narrowing the focus allows my team and I to become specialized at our craft. It also allows us to carry fewer tools and parts.

This is a major motive for choosing one brand of all-climate heat pump products. It simplifies business and has helped my company become more profitable.

Consider these other reasons for exclusively installing allclimate heat pump solutions:

• There’s no need to run a flu pipe, gas line, or any additional infrastructure necessary to install conventional HVAC systems; and

• Consumers can easily clean the system’s reusable filters themselves. They still should have their condenser and evaporator checked and cleaned at least once a year by a licensed HVAC technician, especially during extreme weather conditions.

Doing What It Takes to Please Homeowners

The philosophy I’ve passed on to my team is to do whatever it takes to meet the customer’s HVAC needs, which go beyond just temperature control to aesthetics, too. We aren’t afraid to recommend an upgraded, but more appropriate, all-climate heat pump system if it will give our customers the right look and feel that they want. For instance, we often win business because we provide a variety of solutions for the homeowner.

“Rather than having an abundance of general knowledge on an array of HVAC products and brands, narrowing the focus allows my team and I to become specialized at our craft It also allows us to carry fewer tools and parts.”

I was the eighth contractor to provide the owner of a 130-yearold, 10,000-square-foot home with a quote for an HVAC system. I won her business after spending two days walking, crawling, and navigating her home to suggest the best solution. After exploring the structure and truly listening to what she wanted, I suggested a ductless mini-split solution with ceiling cassettes to keep the

style of the historic home intact. The finished job resulted in a grateful homeowner, even though it was an upgrade from the solutions provided by other contractors.

Training is Critical to Success

Another key to our success is that my team is thoroughly trained on all the heat pump solutions we install. That training starts with a close reading of the product manuals that guide HVAC professionals step-by-step through the process.

Then, they attend product-specific training with suppliers like Mitsubishi Electric Trane HVAC US (METUS) to learn even more about the intricacies of the Mitsubishi Electric all-climate heat pump products we sell. We are members of the Diamond Contractor program, which is Mitsubishi Electric’s highest level of product training. Receiving this designation involves a multi-stage, hands-on course covering the company’s equipment, technologies, and installation best practices.

Ductless Plus HVAC Systems has been more effective since simplifying services and doing one thing well, rather than having an abundance of general knowledge on an array of HVAC products and brands.

Narrowing the HVAC Focus

Money spent on training is worth it. It’s truly heartbreaking when homeowners lose thousands of dollars due to an improperly installed HVAC system by an inadequately trained technician from another company. We see this all the time. We must rip out and replace 10 to 20 mini-splits a year because of improper installation by competitors.

Twenty-three years ago, I switched from being an HVAC contractor who installed a variety of systems to become an all-climate heat pump-only advocate. All-climate heat pump solutions give homeowners choices to heat and cool their homes without changing the aesthetics. These solutions are becoming increasingly prevalent in homeowners’ heating and cooling needs.

Making this switch changed my business and my life for the better. By narrowing the focus while still giving customers different all-climate heat pump options, business has thrived.

Jared Beach is the owner of Ductless Plus HVAC Systems, located in Centennial, Colorado.

GROWTH THROUGH COLLABORATION

PHCC CONNECT is coming to Grand Rapids. For three days, contractors will be immersed in focused education and valuable networking opportunities. We look forward to meeting you there! HIGHLIGHTS

Podcast pods

How Roleplaying Enhances Team Training Regimens

Effective team training requires engagement with real-world scenarios, ensuring employees not only learn key concepts but can put those concepts into practice. This is undoubtedly true in the skilled trades, where technicians must roll up their sleeves and practice actual maintenance and installation work before being dispatched to a real job site.

Real-world simulations aren’t just helpful in mastering technical skills—they’re equally valuable for improving customer service and communication. One of the best ways to provide this kind of training is to incorporate roleplaying—an important avenue for boosting employee confidence and enhancing retention.

Roleplaying Explained

While “roleplaying” is widely known, it’s worth explaining what this word means in the context of skilled trade training.

Think of roleplaying as a practice session—a way for team members from each department to simulate the kinds of customer interactions they may come across in the field.

Through roleplay, team members can practice their responses to particular customer touchpoints in a safe, controlled setting, allowing them to hone their skills and receive immediate feedback in a low-stakes environment.

What’s the Value of Roleplay?

Holding these practice sessions for a home service team can yield many benefits for individual employees and the team.

For individual employees, roleplaying strengthens skills that are critical to job performance. It helps them practice active listening, express empathy, and navigate tricky conversations—skills that can’t be learned from a manual but significantly impact the job.

Many situations in the skilled trades can be uncomfortable— billing conversations, collection follow-ups, or addressing customer complaints. Roleplaying these moments helps employees practice responses, reduce anxiety, and gain confidence before facing them in the real world.

Roleplaying also promotes creative thinking by engaging participants interactively, stimulating mental activity, and enhancing key concept retention. Employees won’t always remember what they read in a handbook, but are more likely to absorb their experiences in a real-time roleplaying session with their peers. Something else that makes roleplay valuable is that it involves multiple people sharing their perspectives; following a simulation, the entire team can discuss and share ideas as they work together toward continuous improvement.

Such experiences lead to significant benefits for the entire

team, providing employees with opportunities to build unity, strengthen team cohesion, and get to know one another better. This can be especially valuable when field technicians and office staff participate in a session together.

Incorporating Roleplay Into a Team Training Regimen

Incorporating roleplay into a training regimen requires some advanced strategic planning. Consider a few best practices:

• Offer balanced feedback. Roleplaying sessions won’t work if employees are scared to participate, perhaps worried that their responses will be judged harshly. That’s what makes it so important to be thoughtful and constructive when giving feedback. Lead with something positive—there will always be something good to say about an employee’s efforts in a roleplay. And rather than framing critiques negatively, ask the participant, “If you had to do this over, what might you change to get a better result?”

• Have set topics for each session. Don’t try to cover too much ground with each roleplay session. Instead, choose a simple topic and devote the entire session to it, providing ample context for each roleplay scenario. For example, you could focus a roleplay session on repair vs. replace conversations with a customer, going deeper on specifics about the unit’s age, the household size, etc.

• Involve leadership. One of the most powerful ways to promote bonding is for business leaders and managers to get involved in the roleplay sessions, even placing themselves into the technician’s shoes, engaging in scenarios as if they were in the field. When leaders are willing to participate this way, other employees feel more comfortable participating.

Home service companies that embrace continuous improvement set themselves apart. Making roleplaying a regular part of training helps teams stay sharp, confident, and ready to deliver outstanding service, no matter what the day throws at them.

Catherine Bares is a service coach and trainer with Business Development Resources (BDR), a premier business training and coaching provider to home service contractors and distributors. With over 20 years of HVAC expertise, she has mastered every facet of service operations and combines her deep technical knowledge with her passion for coaching. Catherine empowers contractors to optimize service performance, sales, and total operations using hands-on experience and leadership skills, making her a trusted resource for driving growth and efficiency. For more information, visit www.bdrco.com.

7548157 © Branislav Ostojic | Dreamstime.com

Silence the Leak: Smart Detection Reshapes Commercial Refrigeration

Industry standards and building codes now often require ALDS use in many systems above specific charge sizes or installation types.

By Chris Thomas

Refrigerant leaks often begin subtly. An undetected pinhole can lead to significant product loss, operational downtime and regulatory penalties. The environmental cost of escaped refrigerants further amplifies this issue.

Automatic Leak Detection Systems (ALDS) are becoming fundamental infrastructure in facilities relying on mechanical cooling.

Refrigerant leaks pose three primary risks: environmental harm, operational expense, and regulatory noncompliance. Many refrigerants have high global warming potential (GWP), and preventing these leaks directly supports climate protection. Operational costs include system recharging, spoiled goods, and emergency service. Regulatory bodies worldwide impose strict standards for leak repair and compliance. Noncompliance can result in substantial fines.

A critical aspect of this shift involves the move to A2L refrigerants. These refrigerants, while beneficial for the climate, are mildly flammable. Consequently, industry standards and building codes now often require ALDS use in many systems above specific charge sizes or installation types.

An ALDS consists of sensors that continuously monitor the air for refrigerant traces. Unlike manual checks, ALDS offers constant vigilance alerting before a small leak escalates.

Common detection technologies include:

• Infrared (IR): Detects refrigerants by measuring light absorption at specific wavelengths. These sensors are stable and highly selective;

• Electrochemical: Used for ammonia or hydrocarbon refrigerants. They generate electrical signals from chemical reactions with the gas.

• Ultrasonic: Identifies the high-frequency sound of gas escaping under pressure. This method detects the act of leaking rather than the refrigerant itself; and

• Semiconductor (MOS): Provides broad, sensitive detection but can be more susceptible to false alarms from environmental factors.

Some systems combine these methods to enhance accuracy. Most integrate with building or energy management systems to provide alerts, trigger alarms, or initiate shutdown protocols.

For A2L refrigerants, code compliance often necessitates ALDS

to also control mechanical ventilation. If a leak is detected, the system must activate airflow to dilute refrigerant concentrations below the lower flammability limit (LFL) to prevent ignition. Effective sensor placement is key. High-risk areas include compressor racks, valve stations, piping transitions, evaporator coils, and mechanical room entrances. Heavier refrigerants settle low, requiring floor-level sensors, while lighter gases rise, needing overhead detection.

A2L refrigerants behave similarly to heavier HFCs. Standards provide specific guidance on sensor placement zones, response times, and minimum detection thresholds. ALDS must automatically trigger ventilation or compressor shutdown if LFLs are approached. Alarm thresholds are carefully set for A2Ls, often lower than for traditional refrigerants.

While upfront costs exist for ALDS systems, the investment offers returns through refrigerant savings, reduced service needs and ensuring compliance and operational approval. Early leak detection can prevent significant refrigerant loss. Precise alarms reduce time spent identifying leaks.

System effectiveness can be compromised by improper sensor placement, false alarms, or lack of maintenance. Technicians must understand refrigerant behavior for optimal sensor positioning. Environmental interference or missed calibration can cause false alarms, leading to “alarm fatigue.” Sensors degrade over time, requiring regular recalibration or replacement.

Leak detection systems have advanced as refrigeration systems become more complex and regulations evolve. Cloud-based platforms allow centralized monitoring, and artificial intelligence helps differentiate true alarms from false ones. Some systems even predict leak risks using operational data. The rise of A2Ls accelerates this evolution, making smart ALDS a code-enforced requirement demanding sensitivity, speed, documentation and certification.

Refrigerant leaks are often silent. A robust ALDS ensures your system communicates these issues, preventing product loss, equipment damage, or operational disruption. Investing in a reliable code-compliant ALDS is crucial.

Chris Thomas is the supervisor of product services at Heatcraft Refrigeration Products.

Heatcraft Refrigeration Products

View discomfort as a sign of growth rather than a threat.

Creating a Winning Mindset

Success in life and business isn’t solely determined by skills, resources, or circumstances. Often, it’s the mindset that separates winners from the rest. Developing a winning mindset isn’t about innate talent; it’s about consistently cultivating habits, beliefs, and practices that position you for success in the areas you choose.

As we dive into this topic, it’s important to note that a “winning mindset” isn’t a blanket term covering all areas of life. Instead, a winning mindset is about winning in the areas you choose to focus on. For example, some people excel in business but not in physical fitness, while others might shine when it comes to fitness but struggle in their careers. Some people may consistently win fantasy sports league pools, but not win other competitions. Choosing to win in a specific area is the first step.

Once you have a clear vision of the area you want to win in, you’re ready to begin. With your vision in place, start identifying your goals—both shortterm and long-term. Writing down your goals and reviewing them regularly provides focus and fuels momentum. When you know your “why,” staying motivated and pushing through challenges becomes easier.

Next Steps

Practicing resilience, or the ability to recover quickly from adversity. Resilience is a cornerstone of a winning mindset. When setbacks are viewed as stepping stones rather than barriers, your potential for continuous improvement is unlocked. Challenges and setbacks are inevitable, but how you respond makes all the difference. Work on staying calm under pressure, focusing on solutions rather than problems, and learning from setbacks by analyzing what went wrong and how to improve. Resilience ensures you’re defined not by failures but by how you rise above them.

past successes instead of dwelling on weaknesses. By nurturing a positive inner voice, you build the confidence to tackle challenges head-on.

While it’s tempting to fixate on results, a winning mindset prioritizes behaviors and processes. You can’t always control the results, but you can control how you prepare and execute. Reflect on what’s within your control and let go of what isn’t. This approach reduces stress and keeps you motivated, as progress feels attainable and rewarding.

Visualization is a powerful tool used by top performers in various fields. By mentally rehearsing success, you program your mind to achieve it. Visualize your goals in vivid detail, imagining the sights, sounds, and emotions of success. Use mental rehearsal to practice challenging situations, such as presentations or competitions. Pair visualization with action to reinforce confidence and preparedness, reducing anxiety about future challenges.

Growth and comfort rarely coexist. A winning mindset thrives on pushing boundaries and embracing discomfort. Take calculated risks that align with your goals, and challenge yourself to try new experiences and face fears. View discomfort as a sign of growth rather than a threat. The more you stretch your limits, the more resilient and capable you become.

Your environment influences your mindset. Surrounding yourself with positive influences can elevate your thinking and behavior. Build a network of supportive mentors, peers, and role models. Minimize exposure to negativity, whether from people or media, and engage with communities that share your values and aspirations. A positive support system reinforces your goals and keeps you motivated.

Thad David specializes in training all customerfacing team members, including install, service, and sales employees; he also trains for management-level classes. Thad joined the trades in 2013 as the first Troops To Trades recipient, a program that helps get Veterans into the trades, and has been training service professionals ever sense.

Discipline bridges the gap between goals and accomplishments. It’s about consistently doing what needs to be done, even when motivation wanes. Creating a routine that aligns with your objectives, breaking large tasks into manageable steps, and holding yourself accountable by tracking progress are crucial practices. Small daily actions compound over time, and discipline keeps you moving forward, even during tough times.

Your inner dialogue significantly impacts your mindset. Negative self-talk can sabotage your confidence, while positive affirmations empower you. Replace thoughts like “I can’t do this” with “I can figure this out.” Focus on your strengths and

Gratitude shifts your focus from what you lack to what you have, fostering a positive outlook. Reflection helps you track progress and refine your approach. Keep a gratitude journal to note daily blessings, reflect on your achievements—big and small—and use setbacks as learning opportunities rather than sources of frustration.

Developing a winning mindset is a journey, not a destination. It requires intentional effort, self-awareness, and a commitment to growth. By incorporating these principles into your daily life, you build the mental foundation needed to overcome challenges, achieve goals, and thrive in any pursuit. Remember, success isn’t about being perfect; it’s about progress and persistence. Start today, and watch your mindset transform your life.

David Blissett

David “Tersh” Blissett operates two HVAC businesses based in Georgia, Service Emperor HVAC, Plumbing & Electrical and TriStar Heating, Air Conditioning, Plumbing & Electrical. Tersh can be found online at www/Tersh.co.

Tersh and Joshua Crouch produce the “Business Success Mastery” Podcast, which can be found at servicebusinessmastery. com.

The Future of HVAC Is Automated; Here’s What That Looks Like Right Now

Let’s not dance around it.

AI and automation are not coming soon. They aren’t new technology. They are already in your competitor’s shop. They are already making decisions more quickly and effectively than you. Indeed, they are making more money than you already.

If you are still hand-writing paper invoices, still dispatching techs manually, still dialing every lead like it’s 1994, you’re not keeping it old school. You’re just keeping yourself broke.

This is not a scare tactic. This is a surround sound wakeup call.

Let us break down exactly how AI and automation are transforming the HVAC trade, and why ignoring them is like refusing to install air conditioning in Florida.

AI Is Your Apprentice That Never Sleeps, Sheds, or Quits

Bots are already better at the boring parts of your business. You don’t need it to turn a wrench. You need to use it to make your humans superhuman.

Here’s what is already occurring in smart HVAC shops:

Smart dispatching software sends techs on jobs according to skill level, traffic, and type of job. AI call intelligence tools, like PhoneTap.ai, listen to

incoming calls. They rank them, coach your CSRs, and let you know who is actually booking work.

CRMs powered by AI monitor customer activity. They know who is likely to cancel, who is eager to buy, and who needs a little nudge.

You get cleaner data, faster responses, and a pile of decisions made for you without you having to lift a finger.

AI is not a replacement for your team. It lets them do what only humans do (or at least do best): sell better, fix smarter, and deliver WOW service.

Automation Is The Toolbelt You Never Knew You Needed

Automation is not a robot. It’s the one process that eliminates all the annoying, repetitive tasks that are siphoning away your time.

If you are printing out an email to scan it back into your server, printing out open quotes to call customers back manually, searching for resumes in a pile, you are spending more time than your tech spends wasting away at the supply house.

Real HVAC automation looks like this:

• Dispatch automation texts customers when a tech is on the way, along with a pic and a brief bio of the tech;

• Follow-ups automatically to pursue unsold quotes via text, email, and voicemail;

You are already doing automation stuff. You just do not call it that. Auto-pay on your bills. Text reminders to your clients. GPS routing apps. These are automation. It already exists in your world, just not where you might make more money.

• Funnel your job applicants through screening, scheduling, and pre-interview hustling without ops lifting a finger;

• Payment systems are lightning fast, with invoicing immediately on job completion. No chasing checks. No typing receipts. No forgetting to charge Mrs. Anderson from two weeks ago.

Automation equals more than just convenience. It is competitive armor.

The last word in humidity control

The People Are Not Gone, They Are Being Enhanced

Let us get something clear.

AI does not replace people. It substitutes for the requirement that people perform dumb tasks.

Dispatchers have to make hundreds of decisions a day. Most are low-level: Who is near? Who can fix this? Who is not calling out today?

I want a smart system to make those calls. Allow your dispatcher to concentrate on customer service and exception management.

Your techs shouldn’t be jotting down notes on paper. They should be stepping into homes armed with service history information, customer preferences, price standards, job notes, and upsell offers, all of which are presented to the service tech before they ever knock.

Smart techs + smart systems = bigger tickets and less burnout.

For the Skeptics Still Paying by Check

I hear it all the time.

• “I am not tech-savvy;”

• “Our clients appreciate the human touch;” and

• “This is how we’ve done it for 20 years.”

That is not tradition. That is inertia.

You are already doing automation stuff. You just do not call it that. Auto-pay on your bills. Text reminders to your clients. GPS routing apps. These are automation. It already exists in your world, just not where you might make more money.

You don’t have to be a computer nerd. You have to know what you want to stop doing, and not just how to automate it, but whether to do it at all!

The Contractor Tech Stack That Doesn’t Suck

Here is a valuable starter pack for heating and air conditioning contractors who want to build a business that operates without their hands on every single knob:

Automation

AI

Applicant

Market

Zapier or Make Connects apps and triggers workflows automatically.

ChatGPT, Claude Writes proposals, SOPs, scripts, and follow-ups.

Automates screening and interview scheduling.

GoHighLevel or ActiveCampaign Handles texts, emails, and follow-up marketing.

Payments iWallet Automates collections and syncs with invoices. Reporting Airtable or Google

Visualizes performance data in real time.

Pick one area. Fix it. Automate it. Then move to the next.

You wouldn’t put in a system without doing the load calcs. Nor should you blindly automate. Small victories can make a big difference.

What Coaches, ‘Influencers,’ and Leaders Should Be Saying

If you have a platform, a podcast, YouTube channel, Facebook group, stage, and you’re not automating in some way, you are promoting inefficiently. It is not about looking cool. It is about leading well.

Discuss what you are creating. Flaunt your automations, even if they’re disheveled. Talk about what went wrong, and how you made it right. Share the screenshots. Walk through the tools.

You are teaching something more than just HVAC. You are the example of the business of today.

Where All This Is Heading

HVAC shops of the future will look very different.

Techs will have full job details on their smartwatches. AI will train CSRs on the fly. Predictive service calls will be made before the homeowner is even aware there is an issue. Quotes will be created, sent, and chased without a human agency ever having to so much as open their inbox.

The shop that runs the fastest will not be the one with the best techs; it will be the one with the best systems that enable good techs to operate at superhuman levels.

What Contractors Who Are Ready to Scale Smarter Can Do Right Now

• Choose one repetitive thing you hate doing;

• Think about what tool might be able to handle that. If you don’t know, ask someone who does;

• Set up an automation, however bad or elementary it is;

• Train your team to use it; and

• Share your success with peers and keep leveling up.

Final Thoughts

This isn’t about replacing jobs. It is all about killing bottlenecks.

The companies that adopt AI and automation will grow faster, make fewer mistakes, have happier employees, and higher margins.

This is not about robots. This is about relevance.

So optimize, automate, and delegate… or evaporate. Your move.

Sir Zaps-A-Lot, aka Tersh

Greetings, and welcome to “HVAC Chats,” a series of podcast episodes by Contracting Business and Endeavor Business

Media—hosted by Nicole Krawcke, editor-in-chief of Contracting Business magazine and ContractingBusiness.com. HVAC Chats offers industry insights on the critical business management challenges that HVACR contractors face daily. Tune in today and learn how leading contractors are positioning their companies for future growth.

Check out this month’s product categories: heat pumps, dual fuel, and commercial geothermal equipment.

Lochinvar’s Centrus air-to-water hydronic heat pump (AWHP) is a compact unit that supplies water for heating, cooling, and domestic hot water needs. The dual-pipe heat exchanger and two expansion valves allow for an efficiencyoptimized refrigerant two-loop system that maintains heating capacity during temperature drops as low as minus 4° F—keeping temperatures consistent for the end user. Centrus AWHP can provide output temperatures of up to 149° F. It is compatible with standard North American accessories, including a 24V external thermostat, a 120V external water pump and 24V two-way and three-way valves. A monobloc design keeps the low-GWP R-32 refrigerant contained inside the unit, preventing any refrigerant from entering the living space. The unit features backup boiler functionality, which enables installers to choose when a backup boiler is needed and how it operates with the Centrus unit. www.lochinvar.com

condominiums, the 3- to 25-ton Axiom Rooftop Water Source Heat Pumps include standard Symbio 700 controls to help improve system performance and serviceability, and support BAS integration. www.trane.com

The Rheem RD18AY side-discharge universal heat pump, launched earlier this year, and ranging in size from 2- to 5-tons, is the latest unit in the lineup of Endeavor heat pumps designed with advanced technology and built for durability. With higher SEER2, EER2, and HSPF2 ratings, contractors can offer customers energy-efficient systems that provide consistent savings month after month. With quiet operation and cooling efficiencies up to 19 SEER2 and 13 EER2, and heating efficiencies up to 10 HSPF2, the RD18AY units are built to perform in a range of conditions, meeting homeowners’ needs while maintaining high standards of energy efficiency and comfort. Additionally, the unit features a compact footprint, creating a solution when space is at a premium. Rheem’s heat pumps also help homeowners save on energy bills while ensuring longterm performance, the company says. www.rheem.com

Trane has completed the redesign of the Axiom Rooftop Water Source Heat Pump portfolio, adding 3- to 10-ton and 17.5-ton rooftop units designed to help improve energy efficiency and reach decarbonization goals. All Axiom units have now transitioned to low-GWP R-454B refrigerant and include factoryinstalled leak detection, when required, for peace of mind. Ideal for education, warehouses, government, hotels, apartments, and

The WaterFurnace Versatec 700 delivers top-tier efficiency and performance through advanced variable capacity compressor technology. With a capacity range from 25% to 100%—a 4:1 turndown ratio—it adjusts to match demand, reducing energy use and maximizing LEED point potential. Designed for yearround performance, the Versatec 700 utilizes balanced port bidirectional electronic expansion valves for exceptional temperature control and active dehumidification. By varying output automatically, it maintains comfort, humidity, and energy efficiency across all operating conditions. For added flexibility and ease of installation, the Versatec 700 offers several factoryinstalled options. These include a water-side economizer that provides free cooling when conditions allow, helping to cut energy costs. Internally mounted secondary drain connections, internal water valves, and flow regulators are also available, making it easy to integrate with variable speed pumping systems. www.waterfurnace.com

Weil-McLain’s ECO HP Air-to-Water Heat Pump is a key component of the ECO Hybrid Dual-Fuel Hydronic System, combining the efficiency of a heat pump with the reliability of a traditional gas boiler to deliver superior energy-efficient gains, consistent comfort, year-round domestic hot water capabilities, and reduced carbon emissions. The ECO HP operates efficiently in milder temperatures, seamlessly transitioning to the boiler during extreme cold to ensure consistent warmth, hot water production, and reduced energy consumption year-round. The hybrid dual-fuel approach not only extends the life expectancy of both appliances but also offers significant energy savings, making it a budget-friendly and environmentally conscious choice. www.weil-mclain.com

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Randy Jeter

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Some customers should simply be rejected, even though it it’s hard.

Mr. Customer, You’re Fired!

Management guru, Peter Drucker said, “The purpose of a business is to create a keep a customer.” That’s absolutely true, except for those customers who should be discarded. Face it. Some customers should be fired.

You cannot serve everyone and serve them well. A customer craving beef might be seduced by the marketing of a Ruth’s Chris Steakhouse. But, if the customer is expecting McDonald’s pricing, he won’t be happy. Similarly, someone looking for a tenderloin, cooked medium-rare, and crowned with blue cheese is unlikely to be happy with a Big Mac.

Too often, contractors try to serve everyone they can, even though they can’t. Some customers should simply be rejected, even though it’s hard. It’s hard because people who are willing to give your business money are so darn precious.

When I was a marketing consultant, I fired a sixfigure client. It killed me. Six-figure clients were rare.

afford you. Do not argue with them, send them to a competitor you dislike.

2. Customers Who Want Too Much

You cannot serve people who want a level of service or a specialization you cannot provide. If your whole focus is forced air and someone calls you with a boiler problem, it’s better to refer the call to a hydronic specialist.

Some people will demand more special treatment than you are organized to provide. They complain about you and give you bad reviews. Burnt once, don’t do business with them again. Flag them in your software, tell them you’re booked solid for 30 days, and refer them to the disliked competitor.

I worried about how I was going to replace the revenue, but the truth was, I couldn’t serve the client the way he wanted. It was killing my team trying to satisfy him. Despite my trepidations, I fired him.

The next morning, the sun was shining. The birds were singing. It felt like a weight had been lifted off me. My step was lighter, and my team was happier. And, a funny thing happened. Over the coming months, we more than made up the lost revenue. I realized that my client cost us far more than the six figures he provided.

This is the truth about customers you cannot serve well. Trying and straining to serve them costs you more than they deliver. They are distracting to your focus and detrimental to your morale. There are three broad groups of customers that HVAC contractors should fire.

1. Customers Who Can’t Pay

You cannot serve people unwilling or unable to pay your prices. This seems obvious, but contractors continually complain and worry about price shoppers. Don’t.

Thanks to the latest government interventions in efficiency standards and refrigerants, prices in the HVAC industry have outstripped inflation. People have sticker shock on repairs and especially, replacements. They are not necessarily too cheap or unreasonable to pay. They may not be able to

While you cannot serve these people at your current price level and organization, they might represent an opportunity for a conciergelevel of service, if there are enough of them and they are willing to pay for it. Figure out what you would have to do to cater to their demands and what you would need to charge to make it worthwhile. Just remember, this is probably a limited, boutique service.

3. Customers Located Too Far Away

You cannot serve people located outside of your profitable service area. Most contractors operate with vast service areas, if they define them at all. If you operate in a metro area, you have more business located within five miles of your shop than you could possibly handle. Not only does a tight service area reduce expensive windshield time, it maximizes the brand building that occurs from your truck wraps. You may choose to travel when call volume is light. In fact, few contractors have the discipline to turn down a call, no matter how far away and how busy they find themselves. When they truly analyze the cost in fuel, wear and tear on their vehicles, and unapplied labor cost, the gross profit is probably too low to make many, if not most or all, of these distant calls worth the effort. Refer them to a friendly competitor who largely operates out of your area, and hope he or she returns the favor. Business strategist Michael Porter wrote: “The essence of strategy is choosing what not to do.” A corollary of that is choosing who not to serve. Go ahead. Fire a customer you cannot serve. You’ll feel better in the morning.

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