Contracting Business - November 2025

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VIDEOS & MEDIA GALLERIES

AI Experts Reveal #1 Tip for HVAC Contractors

Adopting Artificial Intelligence

Artificial intelligence is no longer a distant concept—it’s already reshaping how contractors do business and how customers search for services. Industry experts share insights to help HVACR contractors integrate AI efficiently. www.contractingbusiness.com/55323827

PODCASTS

Technology Adoption in HVAC: How to Turn Complex Tools into Simple Wins

Jenny Benbrook shares practical ways HVAC contractors can simplify technology adoption and boost team performance with the right tools. www.contractingbusiness.com/55321817

How HVAC Contractors Can Compete in the Amazon Era

Contractors should rethink sales and service strategies to meet modern, ondemand customer expectations shaped by the Amazon experience.

www.contractingbusiness.com/55324840

Network

Breaks Up with

Private Equity In a major shift, Nexstar is cutting nearly 50% of its revenue to stay aligned with its founding mission of supporting independent residential contracting businesses. www.contractingbusiness.com/55323227

VP/Market Leader—Buildings & Construction Group, Mike Hellmann Editor-In-Chief, Nicole Krawcke, nkrawcke@endeavorb2b.com

Art Director, Julie Whitty

Production Manager, Sam Schulenberg

Audience Development Manager, James Marinaccio, jmarinaccio@endeavorb2b.com

Ad Services Manager, Deanna O’Byrne

CEO, Chris Ferrell COO, Patrick Rains CRO, Paul Andrews CDO, Jacquie Niemiec CALO, Tracy Kane

CMO, Amanda Landsaw

EVP Building & Construction Group, Chris Perrino VP of Content Strategy— Buildings & Construction Group, Mike Eby

Contracting Business (USPS Permit 010-480, ISSN 0279-4071 print, ISSN 2771-652X online) is published monthly by Endeavor Business Media, LLC, 201 N. Main St., 5th Floor, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Contracting Business , PO Box 3257, Northbrook, IL 60065-3257.

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

Printed in the USA. Copyright 2025 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.

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© Endeavor Business Media

Forward-thinking contractors using new technologies are more attractive to the next generation of HVACR employees than competitors still operating the same way since the 1990s.

Stop the Revolving Door: Smart Retention Tactics for HVACR Contractors

Not that long ago, it was common for employees to spend their entire careers with a single company. Loyalty was mutual: employers invested in their people, and employees built lifelong careers in return. But today’s workforce looks very different.

Employees now have more options, and moving on to a better opportunity has become the norm rather than the exception. Employee retention remains one of the most pressing challenges facing HVACR contractors today.

Top Reasons for Turnover

In our October poll question, Contracting Business asked HVACR contracting companies the most common reasons why HVACR technicians leave.

Out of 272 respondents as of Oct. 22, 39% say it’s for higher pay, and that it’s always about money; 33% say it’s poor company culture or management issues; 14% say because of limited career growth or training opportunities; and another 14% say it’s long work hours and no work/life balance.

pay motivates technicians and helps prevent turnover driven by financial frustration.

3. Create a Positive, Supportive Company Culture

A strong workplace culture can be a company’s greatest retention tool. Recognizing hard work, promoting teamwork, and maintaining open communication can go a long way toward keeping employees engaged. Simple actions—such as celebrating birthdays and milestones and listening to feedback build trust and loyalty.

Why it matters: Technicians who feel respected and appreciated are more likely to take pride in their work and stay committed.

4. Provide the Right Tools and Technology

EDITORIAL

ADVISORY BOARD

TOM CASEY

Climate Partners

Griffin Service

MIKE CONLEY

Pioneer Heating & AC

DOMINICK GUARINO

National Comfort Institute

JESS JIMOH

Bonfe Plumbing, Heating, Cooling, Electrical & Sewer

COLLEEN KEYWORTH Online Access

EDWARD MCFARLANE

Sila Services

MATT MICHEL

Author

SCOTT SHARROCK

Jolly Plumbing, Heating & Air Conditioning

BRIAN STACK

Stack Heating & Cooling

Beyond pay and benefits, retention comes down to building a culture where employees feel valued, supported, and connected to the company’s mission. Here are five strategies HVACR contractors can use to strengthen loyalty and reduce turnover.

1. Prioritize HVACR training and Career Development

Providing training on new technologies, refrigerants, or system diagnostics not only keeps teams sharp but also opens career growth opportunities. Similarly, providing a career development ladder and setting clear expectations helps technicians see a clear path forward within the company—reducing the temptation to leave for the next opportunity. Why it matters: Employees who feel their skills are growing are more likely to stay loyal. Training also boosts service quality and customer satisfaction, directly benefiting the business.

2. Offer Competitive and Transparent Compensation

While culture and personal development growth matter, pay also remains a top factor in retention. Contractors should regularly evaluate wage structures, performance bonuses, and benefits to ensure they reflect market rates. Contractors should also consider creative solutions, such as phantom stock options for key leaders in the company.

Why it matters: Compensation signals how much a company values its people. Fair, performance-based

No technician wants to struggle with outdated equipment or inefficient processes. Providing modern tools, software, and well-maintained vehicles shows respect for your technicians’ time and professionalism. Additionally, forward-thinking contractors using new technologies are more attractive to the next generation of HVACR employees than competitors still operating the same way since the 1990s.

Why it matters: Investing in technology not only improves job performance and safety but also reduces frustration.

5. Support Work-Life Balance

Burnout is a real issue in the skilled trades, especially during peak seasons. Offering flexible scheduling, fair on-call rotations, and adequate time off can make a big difference.

Why it matters: When employees feel supported both on and off the job, they’re less likely to experience burnout or seek employment elsewhere. Balance breeds sustainability—for both the technician and the business.

The Bottom Line

Retaining great technicians isn’t about a single incentive or policy—it’s about creating an environment where people can see a future. HVACR contractors who invest in their teams through training, culture, fair compensation, and support systems not only keep their best talent but also strengthen their reputation as employers of choice. In an industry where skilled labor is in short supply, those who prioritize people will gain the greatest long-term advantage.

CONNECT Your place to

Explore everything HVACR with access to new products, expert insights and unparalleled networking with industry leaders. Stay ahead of innovation and make valuable connections to grow in your business and career. AHR is your place to make valuable connections.

FEB 2 -4

Two HVAC Titans Join Hall of Fame

From Family Business to Hall of Fame: Lou Hobaica’s Journey

The Contracting Business Hall of Fame, established in 1994 to honor leaders who have made lasting contributions to the HVACR industry, continues its tradition of spotlighting professionals who blend industry expertise with visionary leadership. One of this year’s inductees is Lou Hobaica, a respected, well-known figure

in the contracting community. His story highlights work ethic, resilience, and a drive to expand a family business into a thriving, forward-looking enterprise.

Early Foundations in HVACR

Hobaica’s family has long-standing roots in refrigeration and air conditioning. His grandparents

Paul Hobaica founded Hobaica’s Refrigeration in 1952 out of his garage.

immigrated from Syria and Lebanon in the 1920s, settling in Phoenix, Arizona. Years later, his father, Paul Hobaica, put aside career plans to serve in the U.S. Army during World War II. After returning home, he attended Phoenix College through the GI Bill.

Though Paul Hobaica originally hoped to study electrical work, the program was full. Instead, a counselor steered him toward refrigeration—a new and growing field at the time. That decision set the stage for a multi-generational business legacy.

Building a Family Business

“After graduating, my father worked for a few refrigeration companies to cut his teeth and gain some experience,” Lou Hobaica recalls. “Then, in 1952, he opened Hobaica’s Refrigeration out of his garage. This was before air conditioning was even a thing. His work focused on dairy farms, restaurants, bars, and grocery stores. Once Phoenix began to grow, the desert heat created a huge demand for air conditioning. The business started to grow very quickly.”

Even back then, Paul Hobaica had trouble finding honest, ethical, and skilled employees. His solution? Start his own apprenticeship program with his wife by producing a bunch of kids.

“There were seven of us kids,” Hobaica says. “If we weren’t in school or playing sports, we were

working. Weekends, nights, holidays, summers—we were working. At 18 years old, I was qualified enough to run my own service truck handling residential, commercial, and industrial air conditioning and refrigeration work.”

Hobaica remembers problem-solving on the job without today’s conveniences. “There were no cell phones back then. I didn’t even have a pager until the late 1980s. If I needed help, I’d find a payphone and call the office in hopes someone would be there to help. I always kept a few dollars’ worth of change on hand.”

Although he enjoyed working with his hands, Hobaica wasn’t certain he wanted to make HVAC his career. He briefly contemplated studying law in college to become an attorney—this lasted until he

‘Poorly run companies hurt everyone. The best competition is an educated owner.’
—Lou Hobaica

In 1989, Lou Hobaica and his brother Paul purchased Hobaica Refrigeration from their father. They rebranded as Hobaica Services and began expanding into plumbing, drain, sewer, electrical, security, and wine cellar services. They added the tagline and jingle, ‘You’ll lika…Hobaica,’ which remains today.

Lou Hobaica was inducted into the Contracting Business HVAC Hall of Fame at Service World Expo in Las Vegas on Oct. 28.

was called for jury duty during his junior year. He got frustrated during a jury deliberation on a trial, and decided it wasn’t so glamorous after all. Instead, he pivoted, deciding on a business management degree with a focus on finance and accounting.

“In 1989, my brother Paul and I convinced our father to retire and let us buy him out,” Hobaica says. “We were two ambitious young men with bigger hopes and dreams beyond the eight-employee small company that did $800,000 top-line revenue a year. We really wanted to grow the business. We rebranded as Hobaica Services, and began expanding into plumbing, drain, sewer, electrical, security, and wine cellar services. We added a memorable tagline and jingle, ‘You’ll lika…Hobaica.’ By 2021, we had grown into a very profitable midsize multi-trade company of just under 50 employees.”

The Next Chapter in HVAC Leadership

In May 2021, Hobaica sold the company to The Champions Group, a private equity firm. He fulfilled a two-and-a-half-year employment agreement and “retired” on Dec. 31 2023. Even so, retirement didn’t mean slowing down. Hobaica kept his professional licenses active through the business, and he continues supporting the trades through

coaching and consulting—a stipulation he built into his non-compete agreement.

“I was already coaching around 20 HVAC, plumbing, and electrical companies,” Hobaica explains. “I helped them improve operations, scale their business, and do it profitably. At the time, I didn’t charge for it—I just liked helping people. It was important for me to keep doing that.”

After leaving the business in 2023, Hobaica launched Profit Max Consultants, LLC, a coaching and consulting firm with a focus on maximizing the profitability of residential trade service businesses.

“I work with about 30 trade service clients today,” he says. “I specialize in operations and growth—but most importantly, profitable growth. Growth alone is just vanity unless you’re making the money that makes it worth your while.”

Hobaica credits much of his success to creating relationships and building trust with people.

“I built my company on relationships—I like people,” he says. “People buy from those they like and trust, and that’s what made us different.”

He still enjoys problem-solving, whether mechanical, operational, or financial. “I like looking at challenges from every angle and finding a solution,” he explains.

Unlike some contractors who guard their business strategies, Hobaica shares them all openly.

Clockwise: Hobaica’s Refrigeration had eight employees in the 1970s. Little Lou Hobaica with his father, Paul Hobaica, in front of the shop one Sunday, after church, in 1965.
Lou Hobaica has worked in the family business since he was a child.
Lou Hobaica (left) celebrates a new employee, Grayson Vu (right), after his graduation from Hobaica Services’ 8-week apprenticeship program.

“I’d rather have strong competitors who run profitable, successful businesses,” he says. “Poorly run companies hurt everyone. The best competition is an educated owner who knows how to run a profitable business and succeed—that raises the bar for the entire industry.”

Career Highs

Looking back, Hobaica is most proud of the culture he and his brothers, Mike and Paul Hobaica, built at Hobaica Services.

“We were more than a place to work. We provided our team members with careers they had control over, not just jobs,” he says. “We implemented life planning with employees, helping them set and reach personal goals by empowering them with

the opportunity to earn as much as they wanted by working smarter, not harder. Watching people grow both professionally and personally was extremely rewarding.”

For Hobaica, success has always been about more than just profit.

“Yes, the company needed to do well, but I wanted everyone else to do well, too,” he explains. “I’ve always tried to do right by others and look out for their best interests.”

Hobaica hopes to be remembered as someone who openly gave back to other contractors in the trades, made a positive impact in their company, their life, and their employees’ lives.

“In our business, all decisions were made on our foundation of the three ‘C’s,’” he says. “It had to be in the best interest of the company representative first, the customer second, and the company third. If everybody doesn’t benefit from the situation, then it’s not the right thing to do.

“In business, it’s essential to give back by helping others to succeed and improve,” Hobaica continues.

In the early 2000s, Hobaica Services began marketing on billbaords. Lou Hobaica, being the tallest of his brothers, would get pigeons regularly perching on his head. As a result, their droppings would often cover his head and face, so the billboard company would have to clean him up every eight weeks. “Because of pigeon poop, I became known as ‘the shitty one,’ ‘the shithead,’ ‘full of shit,’ etc.,” Lou Hobaica says. So he came up with the idea to add pigeons to all three of the billboard heads to create a smaller perch point so the pigeons would no longer rest there. The move had the added benefit of creating more attention for the company.

People found it funny and it made the company even more likable, Hobaica says.

“God has blessed us with these talents for a purpose—not only to improve our businesses and personal lives, but also our employees and their families. Then, it’s important you pass on your successes, and pay it forward.”

Outside of work, Hobaica enjoys spending family time with his wife, Jane, and their three adult children and grandkids. In addition, he finds time to restore vintage 1960s to early 1970s muscle cars, sports, hunting, camping, traveling, and gardening. He’s also become a professional jam maker using fruits he grows in his personal garden. He makes 400 jars a year, branded as “Lou’s Badass Jam,” and gives it away to friends.

Built from the ground up, Hobaica’s career reflects a lifelong commitment to hard work, learning from his failures, and leadership by believing in others.

“I give all the credit to my father for instilling in me my strong work ethic, morally based foundational principles, and faith in God,” Hobaica says.

From technician to business owner to industry mentor, Hobaica has shown that success in the trades requires more than skill—it requires a belief in something bigger than yourself, always doing right by others, and the perseverance to never give up by continually pushing forward, even when you fail time after time.

Congratulations to Lou Hobaica on his welldeserved induction into the Contracting Business HVAC Hall of Fame.

Lou Hobaica and his father, Paul Hobaica. Lou credits his father for instilling in him a strong work ethic, morally based foundational principles, and faith in God.
Lou Hobaica (left) celebrates the monthly sales champion award with his son, Andy Hobaica (right).

Trailblazing Talent: Ruth King Joins HVACR Elite

For more than four decades, Ruth King has been a driving force behind contractor success, empowering hundreds of HVAC business owners to take control of their finances, grow profitably, and lead with confidence. Known industry-wide as the “Profit and Wealth Guru,” King has dedicated her career to translating complex financial concepts into actionable strategies that contractors can use every day.

In recognition of her extraordinary impact on HVAC business education and leadership, Contracting Business proudly welcomes Ruth King into the HVAC Hall of Fame—an honor reserved for individuals whose impact, innovation, and integrity have helped shape and raise the bar in the HVACR industry.

From Engineer to Educator

King’s path to the HVAC industry wasn’t a straight line. Trained as a chemical engineer, she quickly realized the field wasn’t her

‘The guys I work with are really, really good at the operations side, but not necessarily the financial side.’ —Ruth King

calling. She returned to school, earned her MBA, and began working with Service America, where she discovered her passion for helping contractors succeed.

“I worked with them for about 18 months—got my feet wet, learned a whole lot, and helped a lot of contractors who were their franchisees,” King recalls.

After being laid off, King launched her own consulting business. Mingledorff’s was her very first client. Word of mouth spread from there, and King’s consulting career in the trades was born, opening the door to a decades-long calling of guiding HVAC and other service businesses toward stronger business and financial foundations.

“The guys I work with are really, really good at the operation side, but not necessarily the financial side,” King says. “Numbers come really easy to me being an engineer—I found that out when I went to MBA school.”

King’s name has become synonymous with contractor education. She has dedicated her career to helping contractors not only survive—but thrive—in

an increasingly competitive marketplace. She has trained, coached, and mentored over 1,000 contractors across the U.S.—in every state except North Dakota, which is still on her bucket list.

Championing Contractor Success

King is no stranger to entrepreneurship and hard work. Over the course of her career, she’s launched

Top: Women in HVACR members pose for a photo.
Below: Ruth King speaks to HVACR contractors during an industry event.
Images Courtesy of Colleen Keyworth/Online Access

Ruth King with Colleen Keyworth, vice president of sales and marketing at Online-Access, and a past president of Women in HVACR (WHVACR).

Colleen Keyworth/Online Access

Ruth King (second right) attends an HVACR industry event.

Colleen Keyworth/Online Access

eight businesses—some shut down, one went bankrupt, and several have been highly successful. Her latest venture is Financially Fit Business, reflects her continued innovation and belief in accessible education.

The AI-driven platform, which King helped design and train over four years, automatically reads and analyzes small-business financial statements.

“That was interesting and fun,” she says. “I drove my programmers absolutely insane! But now, anyone can do it—AI knows what I know now. If you’re on QuickBooks online, you click a button and AI reads it, analyzes it, tells you exactly what things mean, and what you have to do if the numbers are not going the right way. Or you can upload a PDF

of a P&L sheet, and it does the same thing. There are no excuses that you don’t understand your financials anymore.”

King emphasizes that accurate data remains key: “Our research shows that about 80% of businesses’ financial statements are not accurate. If your data’s wrong, your decisions will be wrong—garbage in, garbage out.”

Long before virtual learning became the norm, King pioneered online HVAC business training, creating platforms like HVACChannel.tv to make education accessible to contractors anywhere.

“As a need arose, we started businesses,” she says. “Most of the training and consulting I do now is online. Technology has allowed us to do many things we couldn’t do before.”

For King, the true reward is seeing the results. “The thing about what we do more so than anything else is we can prove profitability—the graphs show it, the monthly financials show it. It’s fun when they actually do really well. I get a lot of satisfaction out of it.”

She hopes she is remembered by the HVAC industry as someone who really cared.

“I want them to do very well,” she says about her clients.

King tends to be very direct, which doesn’t always appeal to everyone. “Some people don’t like that ,and we don’t work together for very long. I tell everybody that I have either very long or very short relationships with my clients,” she says with a smile.

A Pioneer for Women in HVACR

King has also been a trailblazer and champion for women in the trades. In 1990, she took the Georgia HVAC license exam—at a time when few women were in the field.

“The day I took my test, a guy walked up and said, ‘What the hell are you doing here?’” King recalls. “I

looked him in the eye and said, ‘I have every right to be here as you do.’”

Colleen

Determined to prove herself, she earned her license and went on to break barriers for women across the industry. In 2002, King co-founded Women in HVACR, an organization created to support and advance the careers of women in a traditionally male-dominated field.

Her vision helped build a community where women could access mentorship, professional development, and leadership opportunities—laying the groundwork for greater diversity and inclusion across the industry. The founding of Women in HVACR stands as a pivotal milestone in HVAC history, inspiring a new generation of women to pursue technical and business excellence while strengthening the industry through broader perspectives and talent.

A Lasting Legacy of Education and Empowerment

Despite decades of service, King isn’t slowing down.

“I’ve got a business plan until I’m 120,” she laughs.

“As long as I’m mentally and physically able, I’ll keep

‘We can prove profitability—the graphs show it, the monthly financials show it. It’s fun when they actually do really well.’

—Ruth King

consulting and building Financially Fit Business. And somebody needs to get me to North Dakota.”

Outside of work, King treasures time with her daughter, Kate—taking a special trip together each year. Their most recent destination: Portugal, marking their 11th adventure. She also enjoys starting each morning with puzzles—Wordle, Spelling Bee, and crosswords.

King’s induction into the Contracting Business HVAC Hall of Fame is more than a personal milestone—it’s a recognition of a career devoted to lifting an entire industry. Through her teaching, writing, and mentorship, she has redefined what it means to be a successful contractor: one who understands not only how to fix systems but how to build a sustainable, profitable business.

Welcome to the HVAC Hall of Fame, Ruth.

Left to Right: Lori Tschohl, Ruth King, Marcia Christiansen, and Colleen Keyworth man the Women in HVACR booth during the 2023 AHR Expo.
Keyworth/Online Access

Geothermal Goes Mainstream: Q&A with Jay Egg

From heat pumps to thermal energy networks, see what’s powering geothermal’s rapid expansion in HVAC.

As the HVAC industry continues to evolve toward electrification and decarbonization, geothermal technology is gaining traction. Once considered a niche market, today’s geothermal systems are being recognized for their unmatched energy efficiency, long-term cost savings, and ability to meet aggressive sustainability goals. To explore what this growing momentum means for contractors, Contracting Business Editorin-Chief Nicole Krawcke sat down with Jay Egg, president of Egg Geo LLC. In this conversation, Egg explains why geothermal adoption is accelerating, the policy and utility drivers behind it, and how HVAC contractors can position themselves for success in this expanding segment of the market.

CB: How has some of the latest legislation impacted the adoption of renewable HVAC technologies such as geothermal?

JE: The federal government, in one fell swoop, eliminated residential tax credits for wind and solar—and geothermal got lumped in with that. So those 30% residential tax incentives without a cap went away, along with other homeowner credits.

At the same time, they really opened the doors for commercial incentives. Commercial projects still get the 30% tax credit, plus an additional 10% for American-made systems and another 10% if the project is in an energy-poverty community or tribal land. You can reach up to 50% in incentives. They also made it easier for developers to fund large thermal energy networks and systems through power purchase agreements.

If you’re a nonprofit or church, you can even receive a check directly if you don’t

have a tax liability. The only way for homeowners to get similar benefits now is if their utility pursues a large-scale program and offers on-bill financing. Otherwise, homeowners would need to form a business entity to qualify.

CB: What is driving consumer demand for renewable energy right now? Is it cost savings, sustainability goals, or new regulations?

JE: There are three main drivers for geothermal adoption. First, it’s become widely accepted as a renewable energy source. The Department of Energy and the current administration have embraced geothermal, from heat pumps to large-scale energy plants.

Second, publicity and visibility have grown. Companies like Dandelion Energy are installing thousands of systems in new Lennar homes, and states like New York, Minnesota, and Texas are developing thermal energy networks.

Finally, geothermal systems are increasingly recognized as the highest-quality option—they’re quiet, last longer, and eliminate outdoor equipment. They’re also more efficient and have strong longevity because the systems are indoors, much like a garage-kept vehicle.

CB: Where are you seeing the most adoption of geothermal—residential, commercial, or institutional?

JE: It’s primarily commercial and institutional. I saw a recent report—though I need to fact-check it—that said more new commercial buildings are being built with geothermal than without. It’s becoming well accepted.

On the residential side, we’re seeing growth mainly in community-scale thermal networks rather than one-off homes.

CB: Are there any recent advancements making geothermal systems more efficient or affordable?

JE: Efficiency hasn’t changed much— they’ve always been excellent. The real advancements are in affordability and scalability. Mass adoption through thermal energy networks is driving down costs.

One exciting innovation comes from WaterFurnace—a temporary external hydronic coil that allows homeowners to install a geothermal-ready heat pump and use it as an air-source unit until the local network becomes available. Then, they can simply connect to the geothermal loop.

On the commercial side, manufacturers are introducing high-temperature geothermal heat pumps that can produce low-energy steam. That’s a major advancement for retrofitting buildings in cities like New York that still rely on steam radiators.

CB: Why should contractors consider offering geothermal installation and maintenance services?

JE: Because it’s where the industry is headed. Fifteen or more states have adopted laws supporting thermal energy networks, and large homebuilders like Lennar are integrating geothermal systems into new communities.

CB: Do you see geothermal becoming mainstream in the U.S. over the next decade?

JE: Yes. It will take more builders following Lennar’s lead and continued investment from state and city governments. Geothermal hasn’t had the same “curb appeal” as visible upgrades, but once consumers better understand the ROI, demand will grow.

When I ran my HVAC contracting business years ago, homeowners would gladly pay $14,000 for marble countertops but wouldn’t spend $1,000 on a higher-efficiency system—even if it paid back quickly. That mindset is slowly changing as education improves.

What excites me most is that geothermal now has bipartisan support.

Visit www.contractingbusiness. com/55324729 for the full conversation.

Pushing the Chiller Performance and Sustainability Envelope

Advancements in oil-free compression technology address cooling challenges in data centers, offering scalable, energy-efficient solutions that reduce operational disruptions, lower carbon footprints, and support high ambient temperature environments.

The exponential growth of artificial intelligence (AI) is introducing cooling challenges in data center applications. AI requires high-density computing driven by graphics processing units (GPUs), which consume more energy and produce additional heat in an already power- and heat-intensive environment. Maintaining uptime requires reliable cooling strategies, often with robust air-cooled chillers in the 400- to 500-ton capacity range.

In recent years, original equipment manufacturers (OEMs) of data center chillers have started specifying oil-free compression technology for its many advantages: improved application reliability, increased energy efficiencies, lower servicing requirements, and minimal maintenance disruptions. But recent advancements in oil-free compression technology have expanded these benefits to offer numerous advantages for data center chiller applications, such as:

• Improving performance and energy efficiencies across a broader capacity envelope;

• Easily scaling capacities to precisely and economically meet application requirements (i.e., from low-load to high-lift) by combining multiple compressors on a single circuit;

• Addressing application challenges in high-ambient conditions (i.e., hot, arid conditions where water is scarce and air cooling is required);

• Recovering and repurposing excess heat for supplemental space and water heating; and

• Enhancing operational sustainability while enabling the low-global warming potential (GWP) refrigerant transition.

Chiller reliability is essential for maintaining uptime for data center operators. Operators are also seeking to lower their operational carbon footprints in the face of ever-increasing data center power and resource consumption.

Achieving these performance and operational breakthroughs starts with an evolution in oil-free compression. The Copeland oil-free centrifugal compressor with Aero-lift™ bearing technology is one example: it’s specifically designed to deliver the next generation of data center chiller serviceability, sustainability, efficiency and reliability improvements.

Oil-Free Equals Worry-Free Operability

The appeal of oil-free compression technology in data center chiller applications is demonstrable. By eliminating the traditional challenges of oil management, oil-free compressors alleviate common data center operational concerns, including:

• Minimizing operational disruptions and maintenance costs for scheduled servicing;

• Avoiding inevitable performance degradations and the potential for chiller failure; and

• Maintaining consistent energy efficiencies throughout the system lifecycle.

Finding an oil-free centrifugal compressor that can maximize these benefits while improving overall compressor and chiller serviceability and flexibility is key. Look for a design that decouples the compressor from the power electronics—i.e., variable frequency drive (VFD)—enabling technicians to access it or the drive independently. Improving serviceability for technicians translates into lower costs and increased uptime for operators, allowing flexibility to configure chiller installations for maximum resiliency.

Built for Data Center Reliability Standards

Uptime is critical in data center operations. It’s why computing power and chiller infrastructures are built with safeguards to minimize the potential negative impacts of a power outage. Oil-free centrifugal compressors are designed with built-in redundancy to ensure reliable performance, compared to oil-free compressors with magnetic levitation bearings.

In the event of a power disruption, the compressor can gradually come to a stop without the need for backup bearings or complex sensors and controls. A self-levitating fluid film provides frictionless performance in tens

of thousands of power drop/restart scenarios, effortlessly withstanding disruptions while enabling a fast ramp-up and restart.

The fact that there are fewer moving parts both inside and outside the compressor means there are less potential failure points, resulting in improved reliability. Oil-free centrifugal technology is not sensitive to power interruptions, and mitigation technologies—such as an uninterruptible power supply (UPS)—are not required to maintain robust performance.

Maximizing Efficiency

Data center chillers are designed to meet a wide range of application capacity requirements and operate efficiently in all ambient conditions—from part-load in cool climates to high-lift in hot ambient temperatures. Chiller OEMs strive to achieve these goals while minimizing applied costs.

For example, these types of compressors can support lighter load capacities and lower pressures to deliver significant energy efficiency gains—without the need for a refrigerant pump. These compressors can also scale to meet the chiller requirements at the higher side of the envelope.

By combining multiple oil-free centrifugal compressors in their designs, OEMs can achieve a 400- to 500-ton capacity range on a single circuit.

Additionally, matching the VFD power rating to specific application requirements enables the compressor to meet OEM chiller specifications across the entire operating envelope—all while maintaining standardization of the same oil-free centrifugal compressor.

Lowering the Carbon Footprint of Data Center Cooling

As data center power consumption continues to rise with the growth of AI, operators need new cooling strategies that can take the heat while lowering their carbon footprints. Energy-efficient, environmentally friendly, air-cooled chillers that leverage lowerGWP refrigerants are evolving to meet these demands while reducing the need for water and/or natural resource consumption (i.e., free cooling).

An oil-free centrifugal compressor with its high-lift capacities and high-speed capabilities allows data centers to leverage air-cooled chillers, even in hot ambient conditions. Operators can lower their Scope 1 greenhouse gas (GHG) emissions by selecting one of three next-generation, lower-GWP refrigerants: R-1234ze, R-515B or R-513A. Its best-in-class performance and high efficiency across the envelope help operators reduce Scope 2 emissions and shrink their power consumption carbon footprint.

Copeland’s oil-free centrifugal compressor with frictionless Aero-lift bearing technology features frictionless, oilfree compression technology, offering efficient, robust, and reliable performance in air- and water-cooled chiller applications. The platform is currently available in the 80- to 100ton capacity range and will soon be available up to 200 tons.

Copeland

One option for dealing with the excess data center heat generated by AI-powered servers is to capture and repurpose it via a heat reclaim system configuration. By transforming heat into a usable resource, the compressor can help operators transition from fossil fuel-powered boilers and decarbonize their operations.

Welcome to a new era of data center cooling.

Mike Oakley is the director of Oil-Free Centrifugal Compression Solutions at Copeland.

Investing in Technician Training and Recruitment: A Smart

Business Decision for the Refrigeration Industry

R-TRADE fosters industry-wide collaboration to recruit, train, and retain technicians.

Constant regulatory changes are driving the refrigeration industry toward a transition from hydrofluorocarbon (HFC) refrigerants, pushing companies to adopt climate-friendly alternatives like natural refrigerants. But while the technology may be ready, the workforce isn’t—at least not yet.

The industry faces a growing and persistent shortage of qualified refrigeration technicians, making it a legitimate business problem. But it’s more than just a need to fill jobs. It’s a need for long-term solutions that ensure business continuity, meet compliance goals, and future-proof the industry. That’s why strategic investments in technician training and recruitment are more than altruistic; they’re essential for the bottom line.

The Business Cost of a Technician Shortage

The impact of the technician shortage is already being felt. According to a 2021 Copeland publication, around 80,000 HVACR jobs are currently unfilled, representing 39% of the workforce. The U.S. Bureau of Labor Statistics estimates 40,100 HVACR job openings annually between 2021 and 2031.

These vacancies strain service contractors, increase downtime for essential refrigeration systems, and create a bottleneck for the HFC transition. Without enough trained technicians, businesses risk project delays, missed service calls, and loss of customer trust.

Worse, the shortage is cyclical. Fewer technicians mean longer hours and higher stress for those still in the field, leading to burnout and even more attrition. This negative feedback loop threatens the stability of the entire industry.

Since launching in 2023, NASRC’s Training Summits have provided free training to over 1,600 technicians. Between fall 2024 and spring 2025 alone, more than 800 technicians received over 10,000 hours of training, equipping them with the skills to work on advanced systems that many businesses are actively deploying. Properly trained technicians deliver better service, improve system performance, and ensure regulatory compliance, all of which drive down operational costs and support long-term business goals. Images courtesy of NASRC

Technician Training is Good for Business

Training programs offer a direct and immediate solution. Properly trained technicians deliver better service, improve system performance, and ensure regulatory compliance, all of which drive down operational costs and support long-term business goals.

The North American Sustainable Refrigeration Council (NASRC) launched R-TRADE (Refrigeration Technician Recruitment, Advancement, Development, and Education) in response to this urgent need. This program goes beyond tackling the shortage; it’s building a skilled workforce to carry the industry into the future.

Real Impact: Training That Works

The Natural Refrigerant Training Summit series is one of the program’s standout components. These free, multi-day events are held nationwide and feature handson training from multiple vendors and industry trainers on the latest natural refrigerant technologies. Service contractors, training providers, unions, and other industry partners overwhelmingly support the series.

Since launching in 2023, the Training Summits have provided free training to

Natural Refrigerant Training Summit 2025 – 2026 Season December 4 – 5, 2025 | Stockton, CA

February 10 – 12, 2026 | Poughkeepsie, NY March 10 – 12, 2026 | St. Louis, MO

April 21 – 23, 2026 | Irwindale, CA Learn more and register at nasrc.org/training.

over 1,600 technicians, and the reach continues to grow. Between fall 2024 and spring 2025 alone, more than 800 technicians received over 10,000 hours of training, equipping them with the skills to work on advanced systems that many businesses are actively deploying. The next Training Summit will be held Dec. 4 in Stockton, California.

Recruiting the Next Generation of Technicians

Recognizing that today’s students are tomorrow’s workforce, the events also feature HVACR student career fairs, creating a rare opportunity for students to interact with industry leaders and recruiters. So far, these events have welcomed nearly 600 students and faculty from roughly 70 schools to build connections, gain insight, and explore careers in refrigeration.

Student and employer feedback has been overwhelmingly positive, with students reporting significant increases in their interest in a career in commercial refrigeration. For example, at a Pittsburgh event in March 2025, students’ self-reported likelihood of entering a career in commercial refrigeration increased by 21% after the event. We’ve heard from several employers that they have hired students after meeting them at these events, and we plan to continue tracking employment over the coming months. These results are practical, immediate, and business-focused.

Building Long-Term Capacity

Part of R-TRADE’s focus is to ensure the workforce grows today and thrives for years to come. The Training Summit career fairs

have also established relationships with school faculty, positioning us to support their programs. Last summer, the Train the Trainer pilot program equipped trade school faculty in Southern California with the knowledge and tools to teach supermarket refrigeration and natural refrigerants, topics historically absent from many HVACR curricula.

Participants reported significant gains in their understanding of CO2 systems and supermarket refrigeration, and several schools have already begun expanding their programs. This pilot provided a proven and replicable model that we hope to scale nationwide as the Training Summit series expands to new locations.

Strengthening the educational pipeline for refrigeration technicians is a key solution to ensure businesses have continuous access to a pipeline of qualified, knowledgeable candidates, reducing hiring costs and ensuring higher first-time fix rates on service calls.

Collaboration is Key

One of the most remarkable aspects of R-TRADE is the level of collaboration it has inspired. It creates a neutral territory where competition across companies is set aside to contribute to a shared goal: building a robust, sustainable workforce. R-TRADE is supported by seed funding from Albertsons, Amazon, Costco, Kroger, and Walmart, but the program stakeholders are far-reaching. OEMs have donated equipment and training resources, service contractors have shared challenges and expertise, and schools have opened doors to new curricula.

In 2025, after numerous requests from companies to help, NASRC launched the R-TRADE Supporters program, which allows organizations to directly invest in workforce development solutions.

This collaborative approach isn’t just good for public relations—it’s good for business. A skilled and stable workforce benefits everyone, reducing strain on contractors, mitigating risks for facility owners, and ensuring safety and compliance for end-users.

The Path Forward

Technician training and recruitment will become increasingly critical as the industry transitions from HFC refrigerants. Skilled labor is the backbone of service reliability, energy efficiency, and emissions compliance.

Businesses that engage in and support technician training today are setting themselves up for long-term success and positioning themselves as leaders. They’ll be better equipped to adapt to evolving technologies, meet regulatory standards, and maintain a competitive edge in a rapidly changing market.

The message is clear: technician training and recruitment are strategic investments that will shape the future of the refrigeration industry.

For more information about the many solutions the R-TRADE program offers, visit rtrade.org.

Morgan Vanzo is the senior director of the North American Sustainable Refrigeration Council (NASRC), a 501(c)(3) nonprofit organization that partners with the refrigeration industry to advance natural refrigerants and reduce greenhouse gas emissions caused by traditional HFC refrigerants.

Left: At a Pittsburgh event in March 2025, students’ self-reported likelihood of entering a career in commercial refrigeration increased by 21% after the event. Above: A Natural Refrigerant Training Summit was held in Seattle in 2024.

I’ve never called a service company just for fun to chat about pricing. I call because I have pain. There’s a problem I can’t solve myself.

Stop Losing Calls Over Price: How HVAC CSRs Can Turn Curiosity into Conversions

When was the last time a homeowner called your office and the very first thing they asked was, “How much is a tune-up?” or “How much do you charge to come out?”

Whatever form the pricing question takes, you and your team probably hear it every single day.

And because it’s such a common question, most companies have built some kind of “script” or call flow to help CSRs navigate these conversations.

So why is it that, even with the perfect script in hand, customer service representatives often respond to pricing questions with something like:

• “Oh, unfortunately, we don’t have pricing in the office;”

• “I’m not a technician; I’m just a CSR. I don’t have that information;” or

• “I won’t be able to give you pricing over the phone. We’ll need to send out a technician to get eyes on site. It all depends on what’s wrong.”

Here’s the catch: all of those statements are true. They’re honest, they reflect company policy, and they’re not meant to be dismissive. CSRs are simply trying to answer the customer’s question as best as they can.

So what’s the problem? We don’t want to lie to customers—of course not.

The problem isn’t the information being shared. It’s the mindset behind it.

Mindset First, Script Second

CSRs are often trained on scripts and processes in abundance. They might read through them, practice them in training, and know exactly what to say. But if they haven’t checked their mindset about “price shoppers,” they’ll never be able to turn negative honesty into positive honesty.

I’ve heard it hundreds of times from CSRs:

“I could just tell they only wanted a price. They were just window shopping.”

And then the call goes unbooked.

But how can we really know that all they wanted was a price? I know I’ve never called a service company just for fun to chat about pricing. I call because I have pain. There’s a problem I can’t solve myself. Sure, I care about price—it’s part of the conversation—but it’s not the reason I called.

Too often, CSRs assume that if a homeowner asks for a price, price is all they care about. That’s where the mindset shift begins. People ask about price

Erica
Leonor

because everyone cares about price—but we also care about solutions. What we really want is for someone to fix the problem.

Questions to Reframe Your Thinking

The first step to providing an exceptional customer experience is to check your mindset. Here are a few questions to ask yourself and your team:

• When I’m asked for a price, do I automatically assume that’s all they care about, or do I reframe my thinking to focus on the problem they need solved?

• Do I treat people like price shoppers or solution shoppers?

• How often do I focus on the negative honesty of what we don’t do, versus the positive honesty of what we do?

• Do I have the confidence to guide customers proactively, or do I simply react to their questions? When we shift our mindset to focus on positive honesty, the entire conversation changes.

It might be true that you don’t provide pricing over the phone. But isn’t it also true that you can schedule an appointment with an amazing service professional who can thoroughly investigate the situation, provide a report of all the detailed findings, and get the customer up and running as soon as possible? Isn’t that also true?

Which truth would you rather focus on?

Last week, I spoke with a CSR who had taken a call from a homeowner. The customer asked for a price, but they weren’t pushy—it was just part of the conversation. The CSR was convinced the caller was a window shopper and wouldn’t book, no matter what.

I pushed back. How do we know that? Sure, it’s possible they would have kept calling around. But it’s equally true that if we had been more engaging—asked better questions, shared enthusiasm, built rapport—they might have scheduled an appointment.

I’d rather focus on positive honesty and give myself the best shot at earning the customer’s business than respond negatively and guarantee they hang up.

From Price to Connection: A Language Shift

Here are a few simple ways to reframe common price questions to focus on solutions instead:

Customer: “How much do you charge to come out?” CSR: “I’d love to help! Tell me a little more about what’s going on at your home.”

Customer: “How much does [product/ service] cost?” CSR: “We can absolutely help with that. That’s something we specialize in. Can you tell me a bit about what you’re experiencing?”

By playing the role of a detective—asking good questions, listening closely, and showing genuine care—CSRs often find that customers naturally share their story and forget about price.

I’ve had this happen hundreds of times. When customers feel seen, heard, and important, they gain confidence in your ability to take care of them. They’ll book the call before price ever enters the conversation.

The price question isn’t the enemy. It’s an invitation. We just need to treat it as such. Focus on what you can do, not what you can’t. If we get too caught up in just answering pricing questions, we’ll lose out on both business and relationships.

When CSRs shift their mindset from “They only care about price” to “They care about solving a problem,” they unlock the ability to connect, build trust, and win more calls.

Scripts and processes matter—but mindset is what turns them into powerful tools.

Let’s stop putting people in the bucket of “tire kickers, window shoppers, and pricing fanatics.” Let’s start calling all of our customers solution shoppers and focus on solving their pain—because that’s how we create trust, book calls, build value, and show up with a skill set that’s worth every penny.

Erica Leonor is a customer experience trainer, speaker, and storyteller who helps contractors transform their call centers into trust-building, revenue-generating powerhouses. She’s passionate about empowering CSRs to show up with confidence and heart. Follow her on LinkedIn at linkedin.com/in/ericaleonor.

Both employers and employees are seeking a broader and deeper range of training.

Training to Build Careers and Retain Talent

The skilled trades are experiencing significant workforce challenges.

In fact, according to Bloomberg, industry trends indicate an environment where retirements outpace new entrants into the workforce

The HVAC industry, which plays a crucial role in modern comfort, is certainly not immune to the demographic shift.

In today’s fiercely competitive and understaffed landscape, investing in employee development, particularly through structured training, has become increasingly important from a strategic perspective.

This investment serves as the foundation for building a more skilled workforce, while also supporting engagement among contractors already in-house by fostering loyalty and enhancing job satisfaction. This is why HVAC manufacturers are now stepping up, developing comprehensive training programs better tailored to support their contractor partners and internal stakeholders.

The Training Technicians Crave

Feedback across the industry paints a clear picture: both employers and employees are seeking a broader and deeper range of training.

Traditionally, training programs focused heavily on product introductions and basic installations. However, there’s now a significant demand for more comprehensive service training and more advanced content. This evolution reflects the increasing complexity of modern HVAC systems and the undeniable need for technicians to possess a broader and more in-depth skill set to effectively diagnose, maintain, and repair.

Employers often look for efficient training options that minimize classroom time. The ideal scenario involves attendees traveling to a single, comprehensive course that covers all necessary aspects—from installation and startup to servicing equipment—at an intermediate level. This scenario would address the fragmented training approaches of the past, which included travel expenses and the significant loss of productive work time while employees were away from their jobs.

Empowering Success

Employees today are seeking workplaces that offer clear pathways for professional growth, and forward-thinking employers are eager to cultivate a highly skilled and engaged workforce. A practical approach can be found in guided learning programs.

Leading HVAC manufacturers, for instance, are now leveraging advanced Learning Management Systems (LMS) to revolutionize employee development. These platforms help employers to gain invaluable insights into their team’s capabilities, offering a comprehensive overview of completed courses and areas of proficiency.

More importantly, LMS allows employers to assign tailored training curricula, ensuring each employee receives the precise education needed. These programs help remove guesswork, aiming to ensure that training time contributes to the employee’s professional growth. The result can be a workforce that feels supported, which may improve job satisfaction and loyalty, as employees see how their learning directly translates into tangible career progression.

By proactively identifying skill gaps and recommending targeted interventions, companies can ensure their teams are always equipped with the latest knowledge and techniques, minimizing costly callbacks and maximizing efficiency.

Bridging the Skills Gap

The recruitment shortage in today’s HVAC industry is particularly challenging when it comes to those entering the workforce directly from high school or vocational programs, where limited exposure to specialized technical training can leave new hires feeling unprepared and less confident as they begin their careers.

To address this, forward-thinking manufacturers are developing “fundamental series” training programs designed to bridge the gap between basic education and the specific demands of the job. These trainings offer comprehensive instruction in core principles, such as basic electricity, refrigeration, electrical troubleshooting skills, and more.

Early commitment to career development acts as a powerful motivator for professional success, signalling to young employees that they are valued assets with clear pathways for growth, which can help improve engagement and reduce turnover.

Continued investment in training is an important factor in supporting the HVAC industry and supporting the next generation of tradespeople. Imparting the skills and confidence they need to succeed ensures the industry remains strong, competitive, and ready to meet the ever-growing heating and cooling demands for residential and commercial applications.

Mark Rogers is the director of Aftermarket Solutions at LG Air Conditioning Technologies USA.

HVACR Industry Event Recap

and industry

for

Nexstar Network President & CEO Julian Scadden

annual Super

Carey Lohrenz, the U.S. Navy’s first female F-14 Tomcat fighter pilot, took time to record a podcast with Nexstar Network Marketing Coach Nick Rau following her keynote address at Super Meeting.

Nexstar Super Meeting Empowers HVAC Pros to Lead and Succeed

Hundreds of contractors and industry partners gathered at the 2025 Nexstar Network Super Meeting, held Sept. 29–Oct. 3 at the Gaylord Rockies Resort & Convention Center in Aurora, Colorado. The five-day event brought together residential home service leaders for training, networking, and business development under the theme “Own Your Market: Stand Out, Scale Up, and Succeed.”

Attendees participated in breakout sessions focused on leadership, operational excellence, marketing, and emerging technologies, such as artificial intelligence. The two-day Strategic Partner Trade Show was a major highlight, giving contractors the opportunity to explore new products, tools, and services designed to enhance efficiency, improve customer experience, and boost profitability.

Keynote speakers—including actor and entrepreneur Ryan Reynolds and former Navy Cmdr. Mike Abrashoff—shared insights on branding, leadership, and resilience. With an emphasis on education and collaboration, the 2025 Super Meeting left attendees motivated and equipped to apply new strategies that drive growth and strengthen the future of the home services and HVACR industries.

Nexstar Network’s Thad David moderates a panel discussion between Blair Enns, author of “The Win Without Pitching Manifesto,” and Nexstar member contractors about sales best practices. From Left to Right: Thad David; Blair Enns; Amanda Kelly, Binsky Home Services, Piscataway, New Jersey; Beatrice Casarrubias, Monkey Wrench Plumbing, Heating, Cooling & Electric, Monterey Park, California; Ryan Akers: Best Virginia Heating & Cooling, Hurricane, West Virginia; and Jesse McBride: Wyatt Works Plumbing, Wickliffe, Ohio.
Clockwise: Hundreds of contractors
partners gathered
the 2025 Nexstar Network Super Meeting, held Sept.29–Oct. 3 at the Gaylord Rockies Resort & Convention Center in Aurora, Colorado.
takes the stage the
Meeting.

Above: More than 200 HVAC contractors and partners gathered in Austin for NCI’s 22nd Annual High-Performance HVAC Summit focused on achieving measurable performance results.

Left: David Richardson moderates a panel discussion about overcoming challenges related to HVAC system redesign. Panelists included (from left to right): Alex Meaney, Mean HVAC Consulting & Design; Ed Janowiak, HVAC Design Eduation at ACCA; Brian Wright, Crossway Mechanical; Paul Wieboldt, Tradewinds Appropriate Technologies; and Dawn Mroczak, GV’s Heating & Cooling.

NCI Summit Unites HVAC Contractors on Path to High Performance

More than 200 HVAC contractors and partners gathered in Austin, Texas, for the National Comfort Institute’s 22nd Annual High-Performance HVAC Summit, held Sept. 9–12 at the Kalahari Resort & Convention Center in Round Rock, Texas. With the theme “Navigating Your Way to High Performance,” the event focused on practical strategies to help contractors improve system performance, business operations, and customer satisfaction in today’s evolving HVAC landscape.

Throughout the week, attendees

Climatisasion ACG, Laval, Quebec, Canada, won the Small Contractor of the Year award during National Comfort Institute’s Summit. This award recognizes outstanding achievement in High-Performance HVAC Contracting, quality workmanship, and dedication to customer service in companies earning under $2 million in sales annually.

participated in technical and leadership sessions covering topics such as airflow testing, system redesign, building science integration, and performance-based contracting. PerformanceTown, NCI’s hands-on training environment, gave contractors the opportunity to apply diagnostic and testing techniques using NCI’s ComfortMaxx application on the measureQuick platform. Keynote speaker Chuck Worley of Worley Home Services emphasized the importance of branding and differentiation through customer trust and value.

Baggett Heating & Cooling, Clarksville, Tennessee won the Medium Contractor of the Year award during National Comfort Institute’s Summit. his award recognizes outstanding achievement in High-Performance HVAC Contracting, quality workmanship, and dedication to customer service in companies earning between $2 million and $6 million in sales annually.

The Summit also featured interactive panel discussions, a Contractors-Only Idea Meeting, and an awards banquet recognizing top-performing contractors and industry partners. Contractor of the Year award winners included Climatisation ACG, Baggett Heating and Cooling, and Simpson Salute Heating & Air, among others. According to NCI CEO Dominick Guarino, the event continues to serve as a roadmap for contractors striving to achieve measurable high performance in both system results and business success.

Simpson Salute, New Philadelphia, Ohio won the Large Contractor of the Year award during National Comfort Institute’s Summit. This award recognizes outstanding achievement in High-Performance HVAC Contracting, quality workmanship, and dedication to customer service in companies earning more than $6 million in sales annually.

Images: Nicole Krawcke © Endeavor
Media

Driving Cold Climate Performance with Next-Generation Heat Pumps

Today’s innovative, air-sourced heat pumps are delivering substantial value for homeowners—including those living in the coldest corners of the country. Contractors well-versed in this new technology stand to benefit from the sale of these premium systems while helping to transform their customers’ home comfort experience.

Next-generation heat pumps can reduce heating-related electricity use by as much as 75% compared to traditional fuelburning furnaces or older, electric resistance heating. And in colder regions, like the Northeast and Midwest, that can mean saving as much as $1,000 per year in heating costs.

Many high-efficiency heat pumps also qualify for local, state, and federal rebate programs designed to offset upfront equipment costs. Combined with the reliable performance and precision comfort available from these premium systems, homeowners in all regions now have a compelling reason to switch to electric heating.

Heat Pump Innovations

Today’s high-performance heat pumps are engineered to meet a wider heating capacity range compared to what was once expected from legacy systems. However, selecting the right heat pump for the application is important—especialy when working in colder regions.

ENERGY STAR cold-climate designated ratings provide a comprehensive, easy-to-use guide that can be helpful for colder environments. The program requires heat pumps to maintain 70% heating capacity of the system’s full nominal capacity at 5° F. Some premium-tier units can even maintain this capacity

in conditions as low as -13° F. Contractors can also look for equipment features that improve cold climate performance. These include variable-speed drive (VSD) and inverter-driven compressors.

Compared to single-stage heat pumps that operate only in an “on” or “off” setting, inverter-driven VSD compressors allow the system to run at a lower, more efficient speed and continuously modulate output. In colder conditions, this extended heating cycle enables the heat pump to extract heat from the ambient air more effectively and pull it inside the home. In all seasons, homeowners receive consistent, precise heating and cooling that is more efficient and more cost-effective to operate.

Delivering Cold Climate Success

Installation also plays a vital role in ensuring successful heat pump operation in colder climates. Load sizing, ductwork quality, and proper airflow are all key considerations that can impact performance.

It is important to understand the maximum heating needs of the home and size the heat pump accordingly. An undersized heat pump can fail to meet the full heating load, and an oversized unit can lead to frequent cycling—both of which can reduce the system’s efficiency and performance.

“Contractors have always played an invaluable role in guiding homeowners’ HVAC decision-making. As new heat pump technologies emerge, now is an excellent time to expand their knowledge base.”

Adequate airflow is also important to maintain efficient heat pump performance. The size and condition of the duct system is essential to maintain sufficient heat transfer. Airflow issues can result in a range of problems. Homeowners may notice hot or cold spots throughout the home, and increased utility costs as the heat pump works harder to maintain capacity. Proper airflow can help to minimize strain on the heat exchanger, reducing premature wear and tear. As a quality check, contractors can look for high-pressure switch faults, which often indicate a duct system problem.

Some regions with extremely cold winters may benefit from a dual fuel system that connects the heat pump to a furnace as a backup heat source. If temperatures drop below the heat pump’s efficient heating capacity, the system will automatically engage the furnace for heating. These versatile systems allow homeowners to reap the energy- and cost-saving benefits of an

Images courtesy of Johnson Controls

electric heat pump for most of their home comfort needs. When selecting a dual fuel system, it is important to ensure the heat pump and furnace are designed to work together and have been tested and rated for compatibility.

Unlocking Business Growth

Homeowners have a wide range of incentives and rebate options available when choosing high-efficiency heat pumps.

Understanding these opportunities can help to create a compelling offer and make these systems more accessible to a broader customer base.

Federal programs like the Inflation Reduction Act (IRA) have made premium heat pumps more affordable by offering homeowners rebates and tax credits for improving energy efficiency. Many states, municipalities, and utility companies are also incentivizing the transition to electric heat pumps. Contractors can use their knowledge of the offers in their area to sell more equipment while meeting their customers’ needs.

Contractors have always played an invaluable role in guiding homeowners’ HVAC decision-making. As new heat pump technologies emerge, now is an excellent time to expand their knowledge base. Contractors can partner with manufacturers to gain access to resources like rebate databases and homeowner financing programs. Some manufacturers may also offer specialty training that allows contractors to gain hands-on experience with these next-generation heat pumps before installing equipment in the field.

By staying informed on equipment advancements and incentive programs, contractors can confidently guide their customers while growing their businesses.

Caballero is the senior product manager at JC Residential & Light Commercial LLC.

SALES CONTACTS

SOUTH & WEST: SENIOR MANAGER, BUSINESS DEVELOPMENT

Randy Jeter

Office: 512-263-7280

Cell: 512-426-9145

Fax: 913-514-6628

rjeter@endeavorb2b.com

EAST COAST: SENIOR MANAGER, BUSINESS DEVELOPMENT

Brian Sack

Cell: 732-629-1949

bsack@endeavorb2b.com

ACCOUNT MANAGER MIDWEST

Bill Boyadjis 973-829-0648

bboyadjis@endeavorb2b.com

CLASSIFIEDS/INSIDE SALES:

MEDIA ACCOUNT EXECUTIVE

Steve Suarez Cell: 816-588-7372 Office: 941-259-0867

ssuarez@endeavorb2b.com

DIRECTOR OF SALES, BUILDINGS & CONSTRUCTION GROUP

Joe Agron

941-200-4778

jagron@endeavorb2b.com

Piero

WHERE FACILITY CHALLENGES FIND SOLUTIONS

CENTRAL VALLEY

March 18-19, 2026

Lodi, CA

SOUTHERN CALIFORNIA

April 8-9, 2026

Anaheim, CA

NORTHWEST

April 29-30, 2026

Portland, OR

The core truths of the contracting business remain timeless. Leadership, culture, pricing, and people still determine success.

25 Proverbs About the Business of Contracting

Proverbs are short, pithy sayings that illustrate truths. Here are a collection of proverbs about the business of contracting.

1. Your team takes their cues from you and magnifies them. If you act frightened about the economy, they will be terrified.

2. St Francis said, “Preach the Gospel at all times. When necessary, use words.” What is the gospel you preach within your company?

3. Everything in nature is growing or dying. There’s no in-between. It’s true for nature, companies, and people. If you’re coasting, you’re still rolling downhill.

4. Your truck is your single best advertising “vehicle.” Professionally brand and wrap it.

5. HVAC is fundamentally a neighborhood business, where consumers prefer to do business with family-owned companies with stakes in the community.

6. The brand on the side of the truck is far more important than the brand on the side of the box.

7. If you match the opportunity to the tech likely to make the most of the opportunity, you will generate more gross profit than the expense you will save by dispatching the closest tech.

8. Consumers prefer upfront pricing. They perceive flat-rate prices are more affordable than charging time and materials.

9. Culture is everything. Great strategy must be executed to be effective. Great culture is self-executing. This is why management guru, Peter Drucker said, “Culture eats strategy for breakfast.”

10. Everyone exits their business. Some walk out. Others are carried.

11. Companies close when they run out of cash. That’s why cash is king. It’s not cold and hard. It’s warm and soft and you can cuddle it. Contractors who sleep under a blanket of cash, sleep well.

14. Unless you hire people better than yourself, your company’s potential can never exceed your own limitations.

15. With success comes envy because you show what’s possible. Remember when others point one finger at you, three are pointed back at them.

16. Marketing is like fishing. Use technology to find the fish, but be prepared to try a different bait if the fish aren’t biting.

17. The bankrupt company serves no one. Charge enough to make a profit and continue to serve your customers, employees, and community.

18. Despite fear and trepidation, the residential service and replacement industry was not destroyed by franchising… or unfair utility competition… or consolidation… or big box retailers… or government mandates and regulations… or COVID… and it will not be destroyed by private equity.

19. Artificial intelligence holds significant promise as a tool to improve efficiency, but it is still a tool, and HVAC is a people business.

20. It’s impossible for your team to treat customers better than you treat your team. To put your customers first, put them second. Put your people first.

21. Training is like bathing. Both wear off and should be repeated regularly.

22. The past is prologue for the replacement market. What was installed in the past is replaced today. Get ready for a 10-year run of ever-increasing replacements.

23. Some consumers are not your customers. You cannot serve them like they want, so fire them and focus on the consumers you can serve.

24. No one can take your customers from you, but you can give them away.

25. The best time in history to be an HVAC contractor is now.

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

12. People trust friends and neighbors for contractor recommendations over the Internet. Contractors can build a personal network through service clubs, leads clubs, and more.

13. The most common business problem in HVAC is poor pricing. It’s also the easiest to fix.

These sayings remind us that while technology, tools, and market conditions change, the core truths of the contracting business remain timeless. Leadership, culture, pricing, and people still determine success. Take these lessons to heart, share them with your team, and keep growing—because the best time to build a thriving HVAC business isn’t behind you. It’s right now.

Engineered for serviceability.

Every AAON unit is designed for seamless service.

From full-length hinge doors for easy access to color-coded wiring diagrams that simplify troubleshooting, we make maintenance straightforward—so you can keep jobs on time and on budget.

Explore how AAON simplifies your service experience.

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Daikin Light Commercial Packaged Rooftop Units

FACTORY INSTALLED OPTIONS:

» Hot Gas Reheat (Only available on Gas/Electric and AC models)

» Electric Heat

Bring ease of installation and service, efficiency, and flexibility to the forefront of every light commercial project. Daikin's Light Commercial Packaged Rooftops are convertible from downflow to horizontal with common footprints to fit existing curbs, offer toolless access to essential components, and can be purchased with several factory installed options for application installation flexibility and ongoing ease of service.

ADDITIONAL INFORMATION

» Downflow Economizer

» Stainless Steel HX (Gas/Electric Units)

» Non-fused Disconnect Switch

» Powered Convenience Outlet

» Non-powered Convenience Outlet

» Low-Ambient Kits

» Phase Monitors

» Smoke Detectors (Return, Supply or Both)

» Daikin iLINQ DDC Controller

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