HVACR Business APRIL 2021 by HVACR Business

Show Off Your Skills Pete Grasso 5

Scale Up Through Acquisition David Indursky 18

Cash, Profits or Profitability? Ruth King 20

A Planning Process for Future Success Keven Prather 22

Create Teamwork in the Call Center Lucas McAlpin 24

HVACRBUSINESS.COM APRIL 2021 / VOL.16 / NO.4

OVERCOME

THE WORKFORCE SHORTAGE Page 8

ALSO INSIDE » Industry News .............................................................4 Executive Roundtable: Commercial Refrigeration ...............................................11 Product Focus .............................................................25 20 Questions with Phil Keoghan Host and creator of ‘Tough as Nails’ on CBS .......26

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CONTENTS

APRIL 2021 / VOL.16 / NO.4

F E AT U R E S

11 18

Overcome the Workforce Shortage

D E PA R T M E N T S

There are many missed recruitment opportunities in this industry — you just have to know where to look. By Howard Weiss

Executive Roundtable: Commercial Refrigeration Dealing with uncertainty, increased demand and virtual training lead the commercial refrigeration sector. By Pete Grasso

Scale Up Through Acquisition When you find a company that is a good fit with your own core values and culture, spend time getting to know them before you expand your business. By David Indursky

C O LU M N

Cash, Profits or Profitability — Which is Most Important?

A Planning Process for Future Success

Create Teamwork in Your Call Center

Continuous profits, turned into continuous cash, give your company the best chance for survival and building wealth. By Ruth King Values-based goals matter, and they can affect how you pursue your overall financial goals. By Keven Prather When a common goal is created and focused on, everyone on the team should be encouraged to do whatever it takes to get to that goal. By Lucas McAlpin

A BRIGHT IDEA

FOR OUR FUTURE Forane ® 32 refrigerant is your replacement solution–bridging the present with the future–under the global HFC phasedown. With global acceptance, R-32 has been used in over 100 million units, providing the HVAC industry a lower cost and lower GWP alternative. HIGHER CAPACITY AND EFFICIENCY VS. R-410A POTENTIAL TO REDUCE SYSTEM SIZE, WITH A LOWER CHARGE AMOUNT SINGLE COMPONENT REFRIGERANT, WITH ZERO GLIDE AND EASIER MAINTENANCE

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6 25 26

Editor’s Notebook This industry is full of hard-working, talented people — it’s time to show it. By Pete Grasso

Industry News Product Focus 20 Questions with Phil Keoghan Host and creator of ‘Tough as Nails’ on CBS

Phil Keoghan photo credit: Cliff Lipson/CBS

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THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com

ADVERTISING STAFF ERIC Hagerman National Sales Manager Tel 216-409-3246 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S. The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information. Copyright©2021 by JFT Properties LLC. No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees.

BY PETE GRASSO

Show Off Your Skills

’m not going to lie ... a lot of my so called, “good ideas,” actually come from my wife. She’s the one who pushes me to think outside the box, especially when it comes to my job.

Back in 2008, when we were first dating and I had gotten a job as managing editor on a magazine for pest management professionals, a show came on Discovery called ‘Verminators’ about a pest control company in California. After watching a few episodes together, I mentioned to her that I thought this was actually a good thing for the industry, because more people would learn about pest management and, perhaps, it might convince more people to consider it as a career choice. That’s when she turned to me and said, “Well, why don’t you reach out to them and write an article for the magazine?” And so I did. A couple of months later, our magazine featured Mike Masterson, owner of Isotech Pest Management and star of ‘Verminators’ on the cover with a story about how he became an ambassador for the industry. Now, here we are and she’s done it again. A couple of weeks ago, my wife tells me about a show she’s been watching while on the treadmill: ‘Tough as Nails.’

This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication.

The contestants, she says, are people from different trades — essential workers — who compete in team and individual challenges that showcase the skills and talents you acquire through a career in the trades.

The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof.

I’m immediately interested, because, as a society, we need to do everything we can to promote the trades as a rewarding career path and solve the skilled labor shortage. After telling me about the show, that’s when she says (yep, you guessed it), “You should interview Phil Keoghan ... he hosts the show and he created it too.”

Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions: 1 year $48; 2 years $75; 3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www.hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Copyright ©2021 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

www.hvacrbusiness.com www.HVACRBUSINESS.com www.hvacrbusiness.com www.hvacrbusiness.com

EDITOR’S NOTEBOOK

I’m familiar with Phil Keoghan from the other reality show he has hosted on CBS for nearly 20 years, ‘The Amazing Race.’ So, yeah, I’ve been a fan of Phil’s for a while and thought it would be fun to interview him.

early age but never losing sight of his family’s blue-collar roots. He speaks fondly of his grandfather, who was a mechanic, an aeromechanic and a gunsmith. “I spent a lot of time with my grandfather, helping him do all kinds of odd jobs,” Phil says. “If ever there was a repair job to be done, you didn’t call the repair person. You did it yourself.” He says the inspiration for ‘Tough as Nails’ came from his frustration with hearing derogatory comments about people in the trades, as if somebody in the trades was less than somebody else. “Hold on, you’re talking about my grandfather right now,” he says. “The idea of the show is to honor those people who literally keep the country running.” You can really feel the passion Phil has for tradespeople ... the respect he has for people who master a trade. “It’s years and years of experience that have led to that person being able to do a good job,” he says. “And they deserve to be compensated for that good job. “My dad was top of his class at university and was an honors student and got a Ph.D., but he would be the first to admit that his father who left school at 13 was just as bright and had just as much knowledge in his area of expertise as a mechanic that my dad had as an agronomist.” Other than good television, Phil’s real goal with ‘Tough as Nails’ was to change the public perception about a career in the trades. “There are lots of great trade jobs where some kids, boys and girls, might actually have a really good career with good paying jobs and some security, and be part of a union and have health care benefits and be part of a brother and sisterhood where they feel like they belong somewhere,” Phil says. While celebrities like Phil Keoghan, John Ratzenberger and Mike Rowe are using their voice to raise awareness and celebrate the trades, it’s up to you to take the next step.

Never has it been so easy to get a hold of a celebrity for an interview. Within days of emailing a request, I immediately heard back and was talking with Phil a short time after that. Phil has had a fascinating life, traveling the world from a very

Showcase what you do on a local level. Get involved with vocational programs in your area. Get out there and be an advocate for your industry and together we can overcome the workforce shortage. u photo credit: Screengrab/CBS

HVACR BUSINESS APRIL 2021

INDUSTRY NEWS » Northern Calif. School District Installs Carrier OptiClean

AHRI Releases Refrigerant Research Results

INDIANAPOLIS — To prepare for its facilities fully reopening to students and staff, northern California’s Manteca Unified School District has installed 1,500 Carrier OptiClean Dual-Mode Air Scrubber & Negative Air Machines to purify the air in classrooms across its 30 schools. The OptiClean units will help to improve indoor air quality (IAQ) for the district, as its more than 27,000 students, teachers and staff return to campuses.

ARLINGTON, Va. — The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) released results of a project undertaken in cooperation with UL and the Firefighter Safety Research Institute (FSRI) in which refrigerants classified by the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) as A2L (lower flammability) were tested and compared with A1 (no flamespread) refrigerants in real-world situations.

“We’ve spent the last several months analyzing every facet of our organization in order to develop a comprehensive strategy designed to create a healthier environment for our students and staff,” said Dr. Clark Burke, superintendent, Manteca Unified School District.

The effort was undertaken to develop training programs for firefighting personnel when responding to fires in occupancies with both new (A2L) and existing (A1) refrigerants.

Manteca Unified School District is one of several in California to choose OptiClean equipment as part of its IAQ solution. Among others are southern California’s San Bernardino City Unified School District and Alvord Unified School District. >> corporate.carrier.com/healthybuildings

Uponor Donates $30K to Texas Relief Efforts APPLE VALLEY, Minn. — With a purpose of rethinking water for future generations, Uponor North America is donating $30,000 to Texas relief efforts. The American Red Cross Central and South Texas Region along with Water Mission are each receiving $15,000 from Uponor to help support their efforts in providing resources, supplies and plumbing repairs for the millions of Texans impacted by the deep freeze in mid-February. In addition to food and shelter services, one of the greatest needs is plumbing repairs in homes and businesses.

The project included scenarios designed by fire service professionals to develop training for tactical consideration to demonstrate hazards that may be encountered by the fire service for both A1 and A2L refrigerants. “We are grateful to the UL employees and members of the fire service that committed significant time in the development and execution of this project and in preparing reports to ensure that they are both accurate and helpful to firefighters,” said Helen Walter-Terrinoni, AHRI vice president of regulatory affairs. Since industry started pursuing a phasedown of higher-global warming potential (GWP) refrigerants over 10 years ago, more than $7 million has been invested in research to better understand the lower-GWP refrigerants that will replace them. The FSRI training module, which incorporates videos from the project, will soon be released and available free-of-charge on its website, ulfirefightersafety.org. >> ahrinet.org

>> uponor-usa.com

CELEBRATING 60 YEARS

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HVACR BUSINESS APRIL 2021

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OVERCOME

THE WORKFORCE SHORTAGE

There are many missed recruitment opportunities in this industry — you just have to know where to look. BY HOWARD WEISS

s if finding qualified, entrylevel technicians has not been hard enough over the years, the COVID-19 pandemic has made this challenge even more daunting. It is highly probable that recruiting talent for our industry will remain as one of the major concerns for company owners for the foreseeable future. There are things these employers can do, however, to alleviate the shortage. It is often assumed that the recruitment problem is more prevalent in smaller companies, but the fact of the matter is that even the largest HVACR contractors struggle as well. Typically, larger companies can offer more enticing salary and benefit packages to their employees but, even with tempting perks, all indications are clear: this is an industry-wide problem. The purpose of this article is to highlight some missed recruitment opportunities, while providing possible solutions.

HVACR BUSINESS APRIL 2021

The key to bridging the HVACR employment gap is effective communication. INDUSTRY AWARENESS When the World Health Organization (WHO) declared COVID-19 a pandemic, a large percentage of the American workforce found themselves working one day and ordered to stay at home the next. While many Americans watched the pandemic unfold from the safety and comfort of their homes, a small percentage of the workforce was mandated to maintain their normal work schedule. This essential workforce included HVACR service personnel. A year ago, the United States experienced the greatest employment loss since the Great Depression. In the face of record layoffs and uncertainty, HVACR employers continued to struggle to fill vacant positions, demonstrating the undeniable disconnect between the

HVACR industry and those it seeks to recruit. The key to bridging the HVACR employment gap is effective communication. To accomplish this, manufacturers can dedicate a small portion of their advertising budget, to public awareness of our industry and career opportunities. Industry associations can collaborate to develop recruitment materials, that can be used by schools, guidance counselors, HVACR employers and their staff. Quite often, the only face-to-face connection between the HVACR industry and the public, is made via the service technician. What the service technician displays is what the public sees. Perception is

reality! Armed with literature and firsthand industry experience, our field personnel should be ready to discuss with interested parties the many benefits and opportunities that our field has to offer. Other opportunities for contractors to promote our industry include banners on their websites and even on their service vehicles.

ESSENTIAL INDUSTRY HVACR service personnel were declared essential as American food, health and communications networks relied heavily on their skills. This declaration provided the opportunity for the industry to educate the public on how refrigeration equipment is required to safely store, transport and protect the nutritional and medical resources we all require. In addition, this was the time to explain how keeping data centers cool, which allows for online meetings, classes, internet and streaming services to

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function, is the responsibility of HVACR service technicians. Industry organizations could develop public service announcements as part of a national campaign, to alert the public how the HVACR industry is working diligently to help keep everyone and their loved ones safe. In today’s digital age, campaigns such as these can be created quickly, without large financial commitments. As medical facilities made it known that the demand for ICU beds has continued to increase, the HVACR industry missed another opportunity to explain what an airborne infection isolation room is and how our field service personnel are responsible for servicing and maintaining them, to help prevent the spread of infectious diseases. Now, with new vaccines making the news, Americans are quickly learning about the temperature requirements at research, transportation and storage facilities, as well as at the locations where they are ultimately administered. This was yet another opportunity to explain how the work performed by our industry is essential. Can your refrigerator at home store a vaccine at -100F? Getting the word out about the specialty work our industry performs is the responsibility of all of us. Large industry associations, however, are best equipped to get this information to the masses. They have the ability to, among other things, provide major media outlets with information regarding airborne infection isolation rooms and who is responsible for maintaining these specialty systems. Industry organizations could seize the opportunity to work with local contractors, to communicate this important message at the local level. Even those not directly working on these highly specialized air conditioning and refrigeration systems have the opportunity and obligation, to help make the public aware of what we do. While these examples may not have

MANAGING EXPECTATIONS

Working with local HVACR programs, filled with students that have already made the choice to join our industry, simplifies your recruitment efforts. been obvious at the time, they will hopefully provide you with some powerful recruitment talking points for future discussions.

WHOSE JOB TO RECRUIT? Now that we are armed with these compelling recruitment arguments, whose job is it to recruit technicians into the industry? Over the course of the last few years, at various conferences, meetings and events, I had the opportunity to ask large groups of contractors, employers and other industry stakeholders, “whose job is it to recruit technicians into the HVACR industry?” The overwhelming response indicated that the job of recruitment, fell upon the instructors of HVACR programs. Based solely on this response, the job of recruiting for an entire industry would fall upon the instructors at roughly 1,000 HVACR programs. There are several problems with this scenario. Most programs have one full-time instructor, who runs a day program, a night program or both. Many schools hire adjunct instructors who have full-time day jobs and teach classes in the evening. There is little, if any, time to go out and recruit. Even if every instructor could free up one full day a week, they would still have the overwhelming task of visiting more than 37,000 high schools in the United States to promote a career in our industry. The truth of the matter is that the recruiting of technicians into the HVACR industry is the responsibility of everyone involved in the industry, most importantly, employers. These business leaders know more than anyone what they are looking for in an entrylevel technician. These employers can focus their efforts, however, by

The graduates of HVACR educational programs are not journeymen. However, they have been provided a strong foundation in the competencies, skills and knowledge required for future success.

working with schools that already offer an HVACR program.

YOUR LOCAL HVACR PROGRAM Working with local HVACR programs, filled with students that have already made the choice to join our industry, simplifies your recruitment efforts. It is easy to get involved with local HVACR programs, through their program advisory committee. These committees meet periodically, where the instructional team present an overview of the courses offered, hours, laboratory equipment and program outcomes. It is at these meetings where participating industry stakeholders can have an impact on the quality of training and build relationships with the programs and their instructors. Those who participate can see potential technicians in action and evaluate their inherent talent, temperament and work ethic while they are still in school. Participating offers contractors a front row seat to see if students are a good fit for their organization before they become available on the open market, often even before graduation. In addition, participating in internship or apprenticeship programs provide another opportunity to see their talents in action, prior to employment. It should be noted, most instructors receive more calls about job opportunities, than the number of students they have. Instructors are more likely to place graduates with organizations that are members of the school’s program advisory committee, before helping other companies. Therefore, if you are not presently participating in a program advisory committee, it is imperative you begin doing so as soon as possible.

The single most important aspect of recruiting graduates from these HVACR educational programs, is the fact they have already chosen to embark on a career in the HVACR industry. The only thing employers need to focus on now, is convincing the graduates that their company offers them the best career opportunity.

DEBUNKING MYTHS American youth are continually informed that to be successful in life, they must go to college. As a result, most students make lifelong career choices, absent of supporting data. The facts state 20 percent of the jobs in the United States require a four-year degree or higher, meaning 80 percent do not! Whereas 67 percent of jobs require post-secondary technical education, in fields including HVACR. The United States Department of Labor, Bureau of Labor Statistics, provides free, occupational data on 700 different occupations at bls.gov. The amount of information they offer may seem overwhelming at first. When typing HVAC into the search box, however, the occupational information on “Heating, Air Conditioning and Refrigeration Mechanics and Installers” is readily available. Every employer in the HVACR industry should commit some time to familiarize themselves with this site, as it provides factual data on the opportunities in the HVACR industry. This data includes the requirements to get into the field, the job outlook (both locally and nationally), salary ranges by region and much more. As an example, it can be found that continued on page 10

FIND YOUR LOCAL VOCATIONAL PROGRAM!

Get involved on the local level with vocational schools and bolster your recruitment efforts. Visit hvacrbusiness.com/vocation to request a free listing of the programs in your area!

www.hvacrbusiness.com

HVACR BUSINESS APRIL 2021

continued from page 9

the average salary in the United States is $19.14 per hour. Using data from the HVACR industry, one can quickly identify that, in many states, HVACR wages are

higher than the national average. This information should be part of everyone’s recruitment toolbox! When armed with reliable data, one can debunk these myths, improve recruitment and allow the truth to come out. Not

all success stories being with a four-year degree!

SHARE YOUR EXPERIENCE It is important to understand that, while we see the rewards in a HVACR

career, others may not. Most people spend their entire day in a climate-controlled environment. Whether at home, work, shopping, traveling from place to place, participating in online meetings or safely storing their food, most Americans rely on the HVACR industry without even knowing it. That is why it is important we enlighten them about the industry. This begins with the public awareness campaigns, advertising and word of mouth efforts. In the end, however, employers should make recruitment training an important aspect of their operations to help ensure their future success. HVACR employers have an important story to share with everyone, whether having expressed an interest in our industry or not. They need not be afraid of getting out or getting online, to share their unique story. Visiting high schools and speaking to students, for example, is a great way to share their unique story. Students want to learn about possible career paths, from successful individuals. This affords employers an opportunity to discuss the industry and opportunities it offers. Additionally, they can share their personal success story, about where they received their formal HVACR education, how they got their first job, challenges they encountered along the way, how they met them and how others can achieve success as well.

ACTION ITEM Although we can simply dwell on the missed opportunities to promote the HVACR industry over the last year, it will be far more fruitful to learn from them. We all need to work together to recruit the next generation of HVACR service technicians. If we genuinely want to solve the technician shortage, all of us must play a role in solving it. u

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HVACR BUSINESS APRIL 2021

Howard is the executive vice president for ESCO Group, which manages HVAC Excellence and has been involved in the trades for more than 25 years. In his current role he works with educators and trainers to develop custom training solutions for the individual needs of their training programs. For additional information, please visit hvacexcellence.org.

www.hvacrbusiness.com

DAVE BERSAGLINI Vice President and General Manager, Refrigeration for Emerson

EXECUTIVE ROUNDTABLE:

COMMERCIAL REFRIGERATION JOHN GALYEN

Dealing with uncertainty, increased demand and virtual training lead the commercial refrigeration sector.

President of Danfoss North America

BY PETE GRASSO

ike many aspects of the industry, commercial refrigeration has experienced a shift in focus during the past year thanks to the COVID-19 pandemic. Uncertainty in the food service industry and increase demand for refrigeration in supermarkets — as well as cold storage and transportation for coronavirus vaccines — have challenged refrigeration manufacturers. When I last conducted a Commercial Refrigeration Executive Roundtable back in November 2019, the discussion revolved mostly around regulations, new refrigerants and adapting them to new, efficient systems. I recently spoke with a handful of the top executives I interviewed 18 months ago for that Executive Roundtable to revisit this market sector and see just how much the COVID-19 pandemic not only affected their businesses, but also the industry. This Executive Roundtable panel included Drew Tombs, president of AHT Cooling Systems USA; John Galyen, president of Danfoss North America; Dave Bersaglini, vice president and general manager, refrigeration for Emerson; Kerry O’Brate, aftermarket sales senior manager at Nidec Global Appliance and; Dustin Searcy, division marketing manager for the Sporlan Group of Parker Hannifin Corporation.

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What’s the biggest challenge in today’s refrigeration market? Bersaglini: One of the biggest commercial refrigeration challenges we face in the U.S. is the complexity of aligning equipment and system choices with what is suitable for a specific region. For example, due to the regional variances in environmental regulations, operators in California will have completely different specifying criteria than those in the Midwest. Understanding where a refrigeration system is going — and what the current and likely future regulations will be for that region — are becoming primary criteria in refrigeration specifications. As a result, an increasing variety of refrigeration system options are designed to meet diverse operational scenarios. Galyen: Refrigerant and regulation changes remain the biggest challenge. Generally, the refrigeration market is moving towards lower global warming potential (GWP) refrigerants, like transcritical CO2, flammable and mildly flammable refrigerants, and low charge ammonia. The AIM Act, which was signed into law at the end of 2020, should provide the refrigeration market a solid regulatory framework to transition to the new generation of lowGWP refrigerants. In California, OEMs, component suppliers, end users, advocates and regulators came together in 2020 to

produce a regulatory solution that worked for most stakeholders. Danfoss expects the market to do the same when working with the EPA on federal regulations stemming from the AIM Act. O’Brate: To get up-to-date and accurate information to contractors and manufacturers about the transition to natural refrigerants from HFCs, a work we have been consistently doing for the last few years and in which we plan on keep evolving. While the majority is switching to R-290, some have restrictions on this refrigerant due to the specific application. Tombs: I think the biggest challenge in refrigeration is the ongoing transition to Low GWP and Energy Efficient architectures that are just starting to impact decision making — especially in US Climate Alliance states. Combine this with food retailer’s changing landscape with regards to the COVID-19 impact on consumers shopping behaviors, all have influence on the types of equipment and systems OEMs need to bring to market. Searcy: Supermarkets are developing plans to comply with future GWP limits and refrigerant changes that will impact their stores. Many have a large installed base of equipment in existing stores that adds complexity and must be accounted for in their plans. continued on page 12

KERRY O’BRATE Aftermarket Sales Senior Manager for Nidec Global Appliance

DUSTIN SEARCY Division Marketing Manager for the Sporlan Group of Parker Hannifin Corporation

DREW TOMBS President of AHT Cooling Systems USA

HVACR BUSINESS APRIL 2021

continued from page 11

How has the COVID-19 pandemic affected business? Bersaglini: COVID-19 has affected the food retail business dramatically, starting with the unprecedented spikes in demand that retailers experienced in 2020. Now that demand has leveled off and the pandemic appears to be waning, many retailers are reflecting on the challenges they faced in 2020 and making proactive plans to upgrade their supply chains and fulfillment channels. One common theme that has emerged is retailers’ desire to take control of their own destinies by reducing reliance on third-party logistics (3PLs) providers and food storage warehouses and bringing these critical functions in-house. Many were caught off guard by the demands of 2020 and simply do not want to be put in that position again. As a result, many companies are building new food storage warehouses in hopes of shifting the balance of control into their own hands

COVID-19 has affected the food retail business dramatically, starting with the unprecedented spikes in demand that retailers experienced in 2020. while leveraging 3PLs to a lesser degree. Galyen: Our first priority has been keeping our employees safe and — at the same time — ensuring we had business continuity to support our customers who are working in critical infrastructure like food production and food retail. We’ve been able to meet demand and we see the market growing so we’re optimistic about 2021. O’Brate: Since 2019, after being acquired by Nidec Corporation, Embraco has been integrated into the Nidec Global Appliance division. So now Embraco refrigeration solutions for the residential and commercial cold chains are a part of the division’s portfolio, which is also composed by Nidec motors for dishwashers, washing machines

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and dryers, as well as US Motors brand solutions for residential and commercial HVAC systems. We set up a global committee that, in partnership with regional ones, implemented procedures and actions that enabled business to continue running while ensuring communication, cleaning and hygiene routines as well as the establishment of testing and social distancing protocols. This scenario allowed the company to keep its commitments with customers while putting the health and safety of our people in first place. Tombs: The impact of COVID-19 has mostly been a delay to projects — especially new construction. Otherwise, I think the situation in the last year as expedited changes in Food retail that will force OEMs to develop and refine new technologies and learn to adapt to faster remodel and retrofit business in the next few years. Searcy: We have seen COVID-19 impact our customers’ businesses as demand and shopping patterns were forced to change. Online grocery pick up and cold storage has shown to be a growth area over the last year.

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Has there been an increase in demand for refrigeration during the past year? Bersaglini: With the onset of the pandemic in 2020, many retailers temporarily paused any plans for refrigeration system remodels and retrofits while retailers did everything in their power to keep existing systems running during this period.

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Today, many of these retrofits and remodels are back on the table, especially in California where proposals mandated by the CARB will take effect in 2022. There, retailers are evaluating strategies to lower HFC emissions, whether that’s by increasing leak inspection, reducing refrigerant charges or installing new lower-GWP or natural refrigerant options such as self-contained cases, full CO2 systems or more distributed equipment architectures.

Galyen: Over the past year, refrigeration demand has significantly evolved. A study by the National Restaurant Association found that 17 percent of restaurants have closed permanently or long term. The industry is resilient, however, and we have seen a shift in how refrigeration is being used; more than any other year, grab-and-go and drive-thru service, outdoor dining, online order and delivery and ghost kitchens have made up a significant portion of that demand. In the food retail space, end-users were focused on installing plexiglass, spacing protocols and cleaning upgrades to meet COVID-19 requirements, so demand for refrigeration systems and controls upgrades had decreased over the past 12 months. O’Brate: There has been a sharp increase for refrigeration in food retail, medical (with special attention to vaccine cooling), and home appliance applications, and a decrease in refrigeration applications for the food service industry. This was all brought on by the unprecedented pandemic the world lived through in 2020. Despite the large variation, since the final months of last year, we have seen a sharp increase in refrigeration products demand overall for all industries. Tombs: Our demand remained steady and growing through 2020 and a strong forecast and pipeline heading into 2021. For our core customer base, food retailers faced considerable operational challenges and shifts in 2020 and we believe there will be a focus shifted back to capital projects — with a focus on remodel and retrofit projects. Searcy: At the start of the pandemic demand reduced sharply but has since rebounded in many areas and demand continues to be strong.

What kind of challenges have you seen as a result of the COVID-19 vaccines need to be stored frozen? Bersaglini: Initially, with the Pfizer vaccine in particular, the issue was meeting the Centers for Disease Control and Prevention’s (CDC) guidelines for ultra-low-temperature storage — which had temperature holding requirements between -80C and -60C. This presented continued on page 14

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a significant challenge to the vaccine cold chain, which relied on dry ice and other types of ultra-cold storage containers to meet these temperature requirements. Recently, the U.S. Food and Drug Administration (FDA) announced that the Pfizer vaccine can now be transported and stored at conventional temperature ranges commonly supported by pharmaceutical freezers for up to two weeks. This means that once the vaccine is delivered to a health care provider, they won’t need specialized refrigeration as long as they use it within the first two weeks. Galyen: The extremely low temperatures required for long term storage of the COVID-19 vaccine are challenging but are typically beyond the operating envelope for many of our refrigeration component solutions. We are, however, starting to see temperatures needed for long-term vaccine storage evolve to a range where cryogenic systems are not required.

HVACR BUSINESS APRIL 2021

We are starting to see temperatures needed for long-term vaccine storage evolve to a range where cryogenic systems are not required. The distribution of the vaccine is able to be conducted at typical commercial refrigeration temperatures, and we have been able to utilize the existing North American cold distribution chain that placed increased demand on commercial refrigeration equipment due to the pandemic. O’Brate: Since the first studies for vaccines showed up last year we have been running against time to help our customers prepare for when the vaccines started being delivered. The cold chain must be ready to maintain the vaccines’ effectiveness throughout transportation and distribution until administration, and this is where refrigeration technology together with smart designed products becomes a life saving issue. Tombs: As part of the Daikin Group, AHT Group is working to support cold

chain initiatives in all markets to improve the efficiency of deliveries and storage of vaccines. Locally, AHT USA has not yet been part of the delivery and storage but are looking at technologies with the Daikin Refrigeration Portfolio where we can make a future impact. Searcy: The ultralow temperature requirement to transport and store one of the vaccines presented additional challenges but it appears dry ice and low temp refrigeration systems have been utilized to meet temperature requirements. The other vaccines are transported and stored at freezer temperatures that were previously used for vaccines.

Moving forward, what type of training and education will you offer to contractors? Bersaglini:

Emerson

Educational

Services has been committed to helping our customers continue their professional education during the pandemic. Though our in-person training sessions are currently unavailable, we have offered a wide variety of free online training courses since April 2020 and will continue to offer free online learning access through June 2021. Of course, we hope to resume our comprehensive in-person training curriculum when pandemic-related restrictions get lifted. We also look forward to relaunching our mobile CO2 Booster training unit, which is designed to give contractors, manufacturers, wholesalers and end users a hands-on experience of what it’s like to work on a CO2 refrigeration system. Galyen: Prior to COVID-19, we were already focused on virtual and online training. During this pandemic, we have expedited our virtual education training program, and now much of our training can be accessed online and is much more continued on page 16

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flexible and interactive. We expect to continue with online and interactive training modules as their possibilities and success have been proven over the past year.

Interest in electronics and case controllers continues to grow. This will continue to be a trend, especially as CO2 refrigeration systems become more popular.

We do see the need for the return of in-person classes, but they will be more focused in their target audience and material. O’Brate: This year we plan on offering more webinars and technical content through online channels, like social media, Embraco’s website, the Refrigeration Club blog and the brand’s channel on YouTube. We even have made a training videos playlist in celebration of Embraco brand’s 50th anniversary, which we celebrate this year. As for in-person classes, we are waiting for a clearer picture of the situation regarding social distancing recommendations in the US, so we can plan our actions. Tombs: AHT USA continues to develop and enhance our training programs with a focus on remote learning. But throughout the last year our field service and project managers continue to operate in the filed with our customers directly — both in delivering new projects, training third-party vendors and supporting start-up and commissioning activities for new stores. In the coming year we will also begin to consider training at our facility as a way to further bring opportunity to third-party vendors to our technologies and innovations. Searcy: Parker Sporlan began a webinar series focused on refrigeration systems, highlighting system components, sizing and troubleshooting about 18 months ago. As COVID-19 caused in-person training to be canceled, we increased our webinar frequency and now have over 20 webinars recorded and available for customers to access on our website, sporlan.com.

When last we spoke, we talked about the evolution of smart controllers for refrigeration units ... how has this segment continued to evolve in the past year and a half? Bersaglini: From Emerson’s perspective, we continue to improve on our refrigeration and facility management controllers to help retailers simplify the operation

HVACR BUSINESS APRIL 2021

other operational objectives. Galyen: For all of the many evolving challenges facing society today, it feels as though there is equal room for opportunity. I’m excited by the instrumental role our industry can play in shaping the transformation ahead of us and improve quality of life — from reducing greenhouse gas emissions to improving building energy efficiency, air quality, and performance, and ensuring a safe, fresh food supply. O’Brate: This last year has made us realize how important the refrigeration industry is for the world, not only for quality of life but even to try and bring us back to a sense of normality within the pandemic by allowing a safe distribution of the vaccines at a global scale.

of critical store systems and leverage the power of strategic data insights.

customers achieving results as high as 40 percent in energy savings.

We recently launched the Lumity E3 supervisory control, which is built upon the Lumity supervisory control platform to deliver the next generation in facility management and refrigeration controls.

Tombs: Remote Monitoring to support Preventative Maintenance and Predictive Alarm Management remains a focus of not just AHT Group but Daikin Refrigeration. We are working on enhanced controls and platforms to help simplify the experience for our customers both with our OEM Suppliers and internally through R&D projects.

Galyen: The continued evolution of smart controllers for refrigeration units has been driven by end-users as a result of conditions shaped by the past 18 months. Now, end-users are looking for more efficient ways to control their refrigerated cases and protect their refrigerated products. With case controllers, end-users and technicians have remote access to their refrigerated cases, allowing for more insight into how their refrigerated units are operating. Adoption of technology, such as Bluetooth and Wi-Fi access, in refrigerated units is becoming more popular, allowing ease of access and visibility to these refrigerated units. O’Brate: It has continued to evolve at an increased rate, despite the pandemic, because of its contribution to medical applications as well as the need to adapt to new energy savings requirements from end users. Within the Embraco portfolio, last year we continued to expand our range of smart controlled solutions and have even presented a series of case studies with

Searcy: Interest in electronics and case controllers continues to grow. This will continue to be a trend, especially as CO2 refrigeration systems become more popular. Also, the benefits of remote monitoring and the ability to pull data without being onsite is a huge value to contractors and supermarkets.

Looking ahead, what excites you most about this industry? Bersaglini: Our industry is evolving so quickly that we have an amazing opportunity to work with stakeholders at every level — from contractors, engineering firms, original equipment manufacturers (OEMs) and end users — to help shape the path forward. The ability to use data as a strategic advantage is becoming a top priority for all stakeholders to help them better understand new ways to optimize equipment performance, achieve sustainability initiatives, improve energy management, and drive a variety of

What excites me the most is really spreading the word on all the technology and new product launches that we have not been able to properly expand on as we had wished in 2020, given the overall travel and access to customers constraints. I’m not only talking about the migration to R-290 in the light commercial refrigeration, but also the migration to variable speed compressors, which have a great impact on reliability and energy consumption. So, we have a great journey ahead in these two areas. Tombs: I think the next 3-5 years will bring about significant change in the acceptance of new refrigeration architecture platforms to support Food Retail and other Refrigeration applications. Daikin Refrigeration and AHT Group are committed to R&D and localization for all markets with a focus on commercial, industrial and transport refrigeration to help support our customers through these changing times. Searcy: Technology adoption is growing in the commercial refrigeration market. I’m excited to see new technologies like predictive diagnostics, analytics, and cloud computing grow in our markets. These new technologies will help us make better decisions and resolve problems more quickly. u

Pete Grasso is editor of HVACR Business. To reach him, email pgrasso@hvacrbusiness.com.

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SCALE UP THROUGH ACQUISITION When you find a company that is a good fit with your own core values and culture, spend time getting to know them before you expand your business. BY DAVID INDURSKY

caling up through acquisition is a strategic model for growth if approached in the right manner. Acquiring companies has allowed ENCON to jumpstart growth and expand into a whole new market sector. My father, Marty, founded the company in 1968 and when I took the helm as president in 1999 I was fortunate that he empowered me to run with my vision for modernizing the business so we could successfully evolve and expand. I’ve found one of the most important aspects of acquisition is “dating” for a while to determine if the company, owner(s),

HVACR BUSINESS APRIL 2021

A key to acquisition is spending a lot of time with the business owner to understand their philosophies and core values to ensure they’re in alignment with your vision. team members and culture are symbiotic with our culture and core values.

There are so many factors that weigh into the decision.

Over the past 20 years, I’ve engaged in dozens of these conversations; I know what to look for and I proceed cautiously. It’s vital to take your time and follow your gut about whether the business is a good fit.

CORE VALUES A key to acquisition is spending a lot of time with the business owner to understand their philosophies and core values to ensure they’re in alignment with your vision.

Otherwise, it simply won’t work. For example, if they only care about the cheapest price instead of providing best-inclass service — which is one of ENCON’s core values — then we’re not going to be a fit. When there’s enough time put into an acquisition, it can work well. My advice: date before getting married. Before venturing down the acquisition path a business owner may want to consider a few key factors: • Why are you looking to expand through acquisition?

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• What’s the real reason behind it? • What assets would the ideal business bring to your company? • Does the business fit into your overarching vision for your company?

A positive aspect of scaling up through acquisition is the internal organic growth that the business you purchased will bring with it.

Until you’re in the seat of owning a business and signing the front of the paychecks, it’s impossible to understand the pressure that ownership entails.

company that enabled us to expand into a new market sector. The former business owner recently told me it’s gone even better than he could have imagined a year ago.

I’ve found your best employees are often those who previously owned a business because they get it. They understand the value of all facets of running a business because they’ve been in my shoes before and they can relate.

It’s allowed him to work on the aspects of the business that he’s passionate about, while our team took over the parts he disliked such as human resources, billing and the back office necessities that are essential to running a successful business. He still has another 20 years left in his career and he’s back to doing what he enjoys as a result of our partnership.

WORKING TOGETHER The acquisition will provide a better life for the former business owner because they’re getting rid of the business-related factors they’re struggling with. We help them thrive and focus on their strengths. Ultimately, they can let go of certain areas of the business that were weighing them down and detracting from their success. It’s been a year since we acquired a

the past 50 years. We create the best place to work by valuing our people, embracing team and individual ideas. We have cultivated an atmosphere where our employees became part of the ENCON family.

The timing of the pandemic in March of 2020 coincided with the acquisition of his company. It ended up allowing us to provide stability for his team who may have otherwise been unemployed during COVID-19 had we not acquired the business.

ORGANIC GROWTH A positive aspect of scaling up through acquisition is the internal organic growth that the business you purchased will bring with it because the business owners’ clients will likely follow them. If it’s a mindful, strategic alignment, then the business owner will vet its clients in advance to set up a smooth, successful transition. Another benefit of acquiring an established company, is you inherit the unique talent and skillsets of the brand’s team that would otherwise take you years to find and cultivate on your own.

CULTURE The final aspect I consider when we acquire a company is how will we instill and maintain our culture while we grow. We have built a legacy of trust, client care, collaboration and best-in-class service over

In the last year, we’ve gone from 80 to 140 employees and as our company grows it’s important to maintain our core values. In this COVID-19 world, we don’t see our team as often so we are trying to transpose our values and remain connected on a human level. Scaling your business via acquisition is a smart business model for growth if done in the right manner. u

David Indursky is president of ENCON Mechanical, an award-winning, secondgeneration family business in Ocean, N.J. For additional information, please visit enconmech.com.

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HVACR BUSINESS APRIL 2021

FINANCE

BY RUTH KING

Cash, Profits or Profitability — Which is Most Important?

any of you will say cash is most important. Yes, it is critical for survival, paying the bills and payroll. But, what if you have a false sense of security because you have cash in the bank?

Continuous profits, turned into continuous cash, give your company the best chance for survival and building wealth.

What if you have more than $800,000 in the bank? Is this too much? A participant in one of my Building Profit and Wealth classes had more than $800,000 in the bank. Many people told him to take money out of the business, however, his company was hit with a lawsuit, where he ultimately prevailed. Legal fees? Around $700,000 over a 5-year period. What if he didn’t have the money in the bank? That would have severely affected the ability to operate his business. Yes, the time was still a hassle. However, he didn’t have to worry about finding and paying for the best legal representation available. He didn’t have to worry about the company going bankrupt over the lawsuit.

WHAT IF YOUR CASH IS GROWING? That is good, maybe. Two partners started a company and grew it to $2 million in revenues over a 12year period. The owners paid attention to the amount of cash in the bank and whether they could take their supplier discounts. They did not pay attention to the company profit and loss statement or balance sheet.

attention to the overruns on materials. Cash, yes. Profits, no. This story illustrates that just because you have cash does not mean your company is profitable.

PROFITS ARE NECESSARY Profits turned into cash are even more necessary. Your company can be profitable and still go out of business. How? A bank calls your line of credit because management philosophy has changed and the bank thinks construction loans are too risky. This has happened to many contractors who were profitable, yet didn’t have the cash to pay back a loan in 30 days.

When the company hit $2 million in revenues, growth leveled out. The lack of growth caused cash problems. Occasionally they had to struggle to meet payroll. Taking discounts on payables? Not frequently. They just didn’t have the cash to do it. They were smart enough to get help.

This past year, COVID-19 was the culprit. Contractors with restaurants or restaurant suppliers holding 80 percent of their customer base didn’t make it. Those who survived quickly found customers in other industries and had the cash saved to survive the few months before PPP loans took effect.

When I did the analysis, the company was losing a nickel for every dollar they took in the door for that time period. Their pricing was way too low. They didn’t pay

It’s much better that your company have the cash savings to be its own line of credit. Saving 1 percent of all revenues that come in the door and all residential maintenance

HVACR BUSINESS APRIL 2021

prepayments will help you do it. Never have more than 25 percent of your customer base with one company or more than 25 percent of your customer base in one industry. If a customer goes bankrupt or an industry dies, your company will suffer losses. However, they won’t be catastrophic losses.

PROFITABILITY Even more important than profits are continuous profits, i.e. profitability. Continuous profits, turned into continuous cash, give your company the best chance for survival and building wealth. It makes no sense to have a profitable month, then a loss the next month, then a profit, then a loss. Or several months’ loss and having to hope for hot/cold weather to make up for the losses. What if the weather doesn’t turn hot or cold?

find ways to at least break even in the one or two months that never seem to be profitable. A revenue contest for all employees works. When the company achieves the dollars in revenue that it needs to break even that month, then the owners take everyone, including their spouses, for a dinner at a nice restaurant and pays for the babysitters. Send the contest information home to the spouses and significant others. They will help get the company employees working toward the goal. They probably would enjoy an evening out! And, the company will at least break even in a traditionally unprofitable month. Or, ask your team members how to achieve a certain revenue goal. Give them an incentive to achieve it. If everyone is focused on the revenue goal there is a high likelihood that it will be achieved (you determine the profits from those revenues and don’t necessarily have to share the profit goals). The answer to the question posed in the title of this article: Profitability, then profits, turn those into cash. Save the cash. You will be your own line of credit and sleep better at night. u

Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv or call 770-729-0258.

It’s better to determine how your company will have continuous profits. Yes, there might be a month or two in the year when the company experiences a loss. However, year over year, the company is getting more profitable. It is building its profitability. Assuming this is happening,

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EXIT PLANNING

PROVIDED BY KEVEN PRATHER, CFBS

A Planning Process for Future Success

uilding a successful business likely took you years of deliberate planning. From your initial business plan to now, you’ve built something worth protecting and worthy of pride.

Values-based goals matter, and they can affect how you pursue your overall financial goals.

When many owners reach the peak of their business success, they wonder where they go from there. Whether you’re approaching, at, or getting farther away from the peak of your success, the answer is likely the same: The next step is planning for the future of your business and your ownership. The tricky part is making time to do the planning. It may seem like you have years and years to begin planning for future success, but that isn’t always true. Though it may seem impossible to think through all the important considerations that are involved in your ultimate and inevitable separation from your business, doing so is also an opportunity to take as much control over the future as possible. We believe that the most effective way to position yourself for future success is to begin a three-step process. Each of these steps can help you answer questions about your current ownership, how you picture the rest of your life, and how your decisions can affect people and things you care about.

FINANCIAL SECURITY Determine how much money you need to become financially secure. Do you know how much money you spend each year? How many different perks do you take as the owner of a successful business? How much money would you need — for yourself and anyone who relies on you — to never have to work another day in your life? These are just a few questions you should ask yourself. If you cannot answer these questions with confidence, it’s difficult to know how

HVACR BUSINESS APRIL 2021

DETERMINE WHAT’S IMPORTANT Financial security might be the most important aspect of planning for future success, but it isn’t the only thing. Many business owners focus so much on their financial goals that they forget to think about more intangible goals. For example, if you could guarantee yourself financial security by selling your company to someone who has told you that he will lay off everyone in your company, would you do it? If you wanted to transfer your ownership to a key employee who is exceptionally talented but treats his coworkers poorly, would you do it? These intangible, or values-based, goals play an important role in your planning for future success. Business owners can easily disregard these goals and come to regret it in the later stages of their planning. Values-based goals matter, and they can affect how you pursue your overall financial goals. That’s why it’s important to consider them early in your planning process.

much money you need to be financially secure. Financial security is important because it can give you the freedom to do exactly what you want with your future.

financially secure can be a big win-win situation.

Whether that means selling your business and retiring; transferring ownership to someone inside the business, like a child or employee; or working through your last breath, working toward financial security gives you and the people who depend on you a cushion if something unexpected were to happen, and confidence if you want or need to separate from the business.

Decide what you must do to reach your financial security goal. Once you’ve figured out what you need for financial security, you should consider how you’ll get it. Ask yourself whether there’s anything you can do within the business to improve cash flow and profit.

Of course, if everything goes as planned, you can achieve financial security and all the freedoms that go along with it. So, knowing how much you need to be

GOALS

Find out whether you’re investing nonbusiness assets in ways that will help you reach your financial security goal. Figure out how you can use the strength of your business — which is likely your largest asset — to pursue financial security.

Making these determinations and decisions isn’t something you must do alone. If you’d like to talk about using a process to plan for your future success, please contact us today. u

Keven P. Prather is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. Call 216)-592-7314, send an email to kprather@financialguide.com or visit transitionextadvisors.com for additional information.

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CUSTOMER SERVICE

BY LUCAS MCALPIN

Create Teamwork in Your Call Center

ately, I’ve been getting asked a lot about how to create a culture of teamwork in the call center. Maybe it’s because so many of us are being asked — or required — to work remotely. Maybe it’s the social distancing expectations at work. Regardless of the reason business owners are asking me about this, a team culture is vital for everyone’s call center. That’s because:

When was the last time you were vulnerable enough to ask your call center team what they thought about a higher-level topic that they could play a major role in?

1) Teamwork is productive 2) Teamwork is fulfilling 3) Teamwork is fun Ask yourself: is your call center as productive as you’d like it to be? Do your call center representatives feel fulfilled at the end of the day? Does your call center seem like a fun place to work to those that walk by? If your answer to any of these questions is “Nope,” well, let’s figure out why!

EMPOWER YOUR CALL CENTER Last year, my company, Nexstar Network, held our annual Super Meeting in Phoenix. Super Meeting is a big event that allows member-owners in our organization to come together to network and learn together. A main topic from keynote speaker Jocko Willink was how to establish one mission within a team. The idea is simple: when a common goal is created and focused on, everyone on the team should be encouraged to do whatever it takes to get to that goal. They should be empowered to do what they need to do to produce that end result together. Have you empowered your call center employees to be productive together? Or just individually obedient? At the same Super Meeting, Jocko and one of the other keynote speakers, Patrick Lencioni, talked about the concept of empowerment.

HVACR BUSINESS APRIL 2021

Jocko called it “decentralized command.” He spoke about the importance of ensuring that every person on the team truly knows the mission. Jocko went on to suggest that – with the right leadership in place, and the right mission in front of a company – every person in the organization should be empowered to do what it takes to accomplish that mission. Pat Lencioni said, “The best way to give freedom to our employees is to draw the boundaries and turn them loose.” Can you say that you’re doing this? I would estimate that 90 percent of the individuals in leadership I speak with regularly aren’t comfortable with empowering their call center to this level. If that’s you, ask yourself, “Why aren’t I comfortable with that?” • Are you hiring the wrong people? • Are you expecting too little out of customer-facing employees? • Do you have a hard time trusting people? • Are you untrustworthy? No part of me is suggesting that you should empower your CSRs to

make $10,000 decisions. However, if you suggest to them that they should consider themselves capable of making big decisions, and then set the stage for them to contribute as if they were…well, who knows what might happen? One of my mentors told me once that the seven most powerful words in leadership are, “I don’t know. What do you think?” When was the last time you were vulnerable enough to ask your call center team what they thought about a higher-level topic that they could play a major role in?

THE IMPORTANCE OF WHY If you’re like many other leaders, you talk to your call center team. You tell them what you need. Maybe you even feel you’ve explained what you need a thousand different ways, and you’re certain they’re just ignoring you at this point. Have you stopped to ask yourself why you’re not getting what you need from your team? Do they understand the reason — the why — behind your requests? Or are you just taking the nodding from your team as a sign that they understood, and then moving on, hopeful that they’ll just “get it this time”?

Where are your fingers pointing? What ownership are you taking in this? I’d like to suggest that you begin having “why” conversations with your employees and, as Jocko suggested, asking for a briefback (a repetition, in an employee’s own words, of what you just said) when you’ve had your conversations. Take a moment to learn from your past failures before moving on again, only to make the same mistakes. This way, you’ll gain insight into your employees’ understanding of the topic and your own ability to explain the “why.” Pay attention to what you hear from employees, rather than just getting frustrated and explaining things louder the next time around. With a common mission that everyone on the team really understands and believes in, you’ll start to see teamwork in your call center evolve naturally. When your call center employees individually stop being “just a CSR” or “just a dispatcher” and start becoming high-performing, valued members of a team, they’ll want to work together even more. With that real understanding of the “why”, along with a newfound appreciation for empowerment and teamwork, previously undoable things start to happen. Ready to go have a conversation that you know you need to have? Let’s go! u

Lucas McAlpin is a Customer Experience & Inside Sales Coach at Nexstar Network. He brings more than two decades of sales, customer service, call center, dispatch, inside sales, and leadership excellence in various industries, including HVAC and plumbing. Lucas can be reached via email at lucasm@nexstarnetwork.com or visit nexstarnetwork.com for additional information.

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Mitsubishi Electric Trane HVAC US (METUS) has introduced the Deluxe Wall-mounted Single-zone System with H2i plus technology (MSZ/MUZ-FS). The system includes the new Deluxe Wall-mounted Indoor Unit with Dual Barrier Coating and new outdoor heat pump model with Hyper-Heating INVERTER plus (H2i plus) technology.

NAVAC now offers a sophisticated smart refrigerant charger that also features an exacting digital manifold gauge and precision wireless electronic scale. Weighing less than 40lbs, the NRC62D Smart Refrigerant Charger is designed to perform the tasks of several tools in one compact, easy to use unit.

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HVACR BUSINESS APRIL 2021

20QUESTIONS >>

with PHIL KEOGHAN

Pete Grasso sat down with Phil Keoghan, host of ‘The Amazing Race’ and host, creator and producer of ‘Tough as Nails,’ a reality competition show on CBS that celebrates hardworking Americans who keep the country running. Phil discussed his appreciation for the skilled labor workforce, his family’s blue-collar roots and why it’s important to highlight a career in the trades. 1. Where did you grow up?

My dad got a job at Guelph University as a lecturer in agronomy, his specialty is plant science. We were living in New Zealand at the time. My mom was a music teacher, and they decided to go to Canada when I was 3 with my sister and I.

2. How did they make the most of the traveling?

We traveled a lot of road trips in a Volkswagen camper van. I remember one summer, we went to all the major national parks in North America over a period of nine weeks.

3. So, you got the travel bug early on?

My parents gave me the travel bug, so I didn’t really have a choice in the beginning. Part of our life was definitely a lot of traveling, a lot of meeting different people, and going to new places. We moved down to the Caribbean when I was around 6 and we lived on the Island of Antigua for eight years. During that time, we traveled a lot into South America. I used to travel up to music school from Antigua to New York.

4. When did you move back to New Zealand?

When I was starting high school, I flew back and went to boarding school. And then straight out of school, I’d started traveling again. I just had this overwhelming desire to keep on traveling and I love traveling and it hasn’t stopped.

5. How did you get interested in TV?

My parents got me into photography at a very early age. I had a camera, always loved taking photographs, and I had this desire to do cinematography, to film stories and maybe shoot movies or documentaries. I wasn’t really sure.

6. When did you figure it out?

I remember in high school, everybody had it figured out what they were going to do. They were all going to become lawyers or doctors, or some of my friends went back to the family farm. I was very keen on working in television. I was going to go to university just because that was sort of what you did. And it’s like, “Well, go to university.” And I’m like, “Okay.” And then this job came up. This job opportunity, there were very few apprentice positions available and I managed to get one of them. And it was best thing that happened to me.

7. Why do you say that?

8. Do you still love cameras?

I still use those same skills I learned. I haven’t stopped learning cameras. Even this weekend I was shooting some stuff with ‘Tough as Nails.’ I’ve continued to keep my skills up in the camera department and camera technology.

9. What’s your history with the trades? My grandfather on my father’s side was a mechanic and aeromechanic and a gunsmith. My grandfather on my mother’s side, he was a carpenter. Their parents were either coal miners or gold miners. I come from families that are builders and my family is definitely all about working with their hands. In my school holidays, I spent a lot of time with my grandfather, helping him do all kinds of odd jobs. If ever there was a repair job to be done, you didn’t call the repair person. You did it yourself.

10. What’s one thing he taught you?

He showed me how he would redo all the handles on his tools so that they would all fit ergonomically into his hand. I have some of those tools. He’d rip off the manufactured handles, plastic handles on whatever tool he had, and redesign the handle to fit his hand. And it was because he was working with tools all the time. He wanted them to fit properly.

11. Did he inspire ‘Tough as Nails’?

The inspiration really came from me being frustrated with hearing people say derogatory comments about people in the trades as if somebody in the trades was less than somebody else. I felt, “Hold on, you’re talking about my grandfather right now.”

12. So, ‘Tough as Nails’ celebrates people like your grandfather?

It always irked me that just because someone didn’t necessarily go get an education, that somehow that was an indication of how bright they were or how much they contributed to society. My grandfather was one of the most well-read, smartest people I’ve ever met. The idea of the show is to honor those people who literally keep the country running.

In those days, they didn’t have broadcasting schools or a tertiary education for broadcasting. You learned by doing the job. Back in those days in New Zealand and in the mid 1980s, you went and you learned on the job. I learned from a lot of really experienced people and I came up through the ranks. It just so happened that in the middle of my apprenticeship, that I was asked to jump in front of the camera.

13. How should we measure education? It’s important for us to acknowledge that education can come in many different forms. Life skills and the person’s ability to contribute to society can come in different forms. It does not just come from a building, it can also come from being an apprentice and learning your trade.

14. How is this show different?

‘Tough as Nails’ is really an acknowledgement of the hard working people who keep the country going. They love their jobs. They’re passionate about their jobs. They’re not looking to be famous … a lot of reality shows focus on people getting into the limelight. Our contestants are going back to work on Monday.

15. How’s it differ from ‘Amazing Race’? ‘The Amazing Race’ is a very different gig. I do go everywhere, but my interaction with the contestants tends to be (limited). I do enjoy being right there in the heat of the action (on ‘Tough as Nails’) calling what’s going on, calling the play and encouraging them and celebrating them. It’s a different game for sure.

16. Is it difficult to find contestants?

Right now, we’re casting season three and we have been inundated with amazing people. As ‘Tough as Nails’ has grown, as awareness of ‘Tough as Nails’ has grown, more and more people are coming out of the woodwork, so to speak. We all know people who would be good for ‘Tough as Nails,’ because we’ve all met them.

17. Is the show helping recruit more people into the trades?

I would like to think so. I do know that we have seen videos posted of young boys and girls who are pretending to be ‘Tough as Nails’ contestants. They got the shovel out in the middle of a storm and they’re loading up a toy wheelbarrow and replicating what they’ve seen.

18. What support have you gotten?

I had a little back and forth with Mike Rowe not so long ago because, you know, he’s been such an advocate for getting people into the trades and I wanted to acknowledge him and to let him know about the show.

19. How do we change that view?

A lot of that has to do with the attitude of parents too. A lot of people don’t know that in the trades, you can make a really good living. They just assume that people who are in the trades are somehow not able to make a good living and not able to find their passion. That’s not true.

20. What is your ‘NOW’ philosophy?

(No Opportunities Wasted) is to live like you’re dying ... live like you’re going to take your last breath tomorrow. What are you doing with your life? What do you want to do with your life and why are you not doing it? There really is no time like now. We don’t have some day. We only have today. photo credit: Cliff Lipson/CBS

HVACR BUSINESS APRIL 2021

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Leaders Should Never Have To Walk Alone. “ There’s no way this kind of growth could have happened without my coaches and peers at Nexstar Network.” – Nathan Engelsma Grapids Heating & Cooling Members since 2013

Since joining Nexstar Network, Nathan Engelsma of Grapids Heating & Cooling has turned his small business into an 11-truck, $9 million industry leader.

40+ coaches. A combined 900+ years of experience. Schedule Your Call 888-240-STAR (7827) Email membership@nexstarnetwork.com Visit nexstarnetwork.com

The only thing that hasn’t changed is the name. (And we were kinda tempted to change that, too.)

Introducing the new Ameristar. Designed and engineered by American Standard Heating and Air Conditioning®—with the ease of use, support, and distributor network you’d expect from an industry leader. When it comes to affordable equipment, it’s setting a whole new standard. Learn more at ameristarhvac.com/contractors Product shown: 16 SEER Air Conditioner (A4AC6) is Assembled in Tyler, TX.

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