Of Course, I’m Accountable Terry Tanker 5
Creating a Culture of Accountability Erik Knaak 6
Customer Service Teams Need Processes Tom Merriott 16
What is Your Moonlighting Policy? Ruth King 18
Where Transferable Value Comes From Keven Prather 20
HVACRBUSINESS.COM OCTOBER 2021 / VOL.16 / NO.10
OVERCOMING TRYING TIMES Page 10
COVID Uncertainty, changing retail demand, new regulations …
ALSO INSIDE » Ruth King Moonlighting: A Threat to Your Business.................................................................................18 Product Focus .............................................................20 20 Questions with Clint Robertson, Star of HGTV's Boise Boys..........................................22
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CONTENTS
OCTOBER 2021 / VOL.16 / NO.10
F E AT U R E S
6 8 10
The Accountability Question Finding the formula for determining who’s responsible in your business. By Erik Knaak
D E PA R T M E N T S
5
Countdown to Culture Team building and family atmosphere create the culture we all seek. By David Indursky
Overcoming Trying Times, COVID Uncertainty, New Regulations Top experts review the state of the industry during trying times. By Tom Perić
C O LU M N
16
Customer Service Teams Need Processes for Business Growth
18
What is Your Moonlighting Policy?
20
Where Transferable Value Comes From
Learn the building blocks that shape the best teams. By Tom Merriott When employees moonlight, they’re stealing. Guidelines to follow. By Ruth King No matter how you rate the business, it’s the transferable value that counts. By Keven Prather
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Publisher's Page Which sales persons is being accountable — the one addressing the shortfall with solutions or the one addressing the shortfall with excuses? By Terry Tanker
Product Focus 20 Questions with Clint Robertson, Star of HGTV's Boise Boys
Expect More. Efficient. Reliable. Connected. Total Indoor Comfort
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THE HVACR MANAGEMENT MAGAZINE
TERRY Tanker Publisher ttanker@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net
ADVERTISING STAFF ERIC Hagerman National Sales Manager Tel 216-409-3246 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com
BARBARA Kerr VP Operations 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. 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 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. 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.
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PUBLISHER’S PAGE
BY TERRY TANKER
“Of course, I’m accountable, it’s just that …
I
like salespeople who are accountable. In fact, I like anyone who’s accountable, but let’s stick with sales for now. Think about your top salesperson and what they say when occasionally they miss their goal: “I’m on it, here is my plan, these are my targets, this is what my pipeline looks like, this is where I could use some help, here are the proposals that are out, I expect to close X percentage.”
There are many ways to do this. Hold regular and targeted meetings to communicate to every level of the business on an ongoing basis. Make it part of every employee’s review process. Celebrate the milestones and successes and don’t be afraid to address the shortcomings. You have to address the good and the bad.
Hold regular and targeted meetings to communicate to every level of the business on an ongoing basis.
Now, think about your weakest sales link and the conversation you typically have with them. It probably sounds something like this: “I’ve been having a problem getting appointments, our price is too high, the market is soft.” Which one is being accountable — the one addressing the shortfall with solutions or the one addressing the shortfall with excuses? In the end, the person who delivers on the goal will be most accountable, and we all know that excuses don’t lead to sales. So as a leader, you just need to hire accountable salespeople, and your job is done, right? After all, sales fix everything. Sorry, but no, your challenges are much greater. The long-term success of HVACR contractors hinges primarily on activities other than and in equal importance to sales. And from what I hear, the majority of you are booking sales at record levels. And, in many cases, your firm is struggling to keep up for several reasons. You don’t have enough qualified service techs to do all the work, or new equipment is unavailable from manufacturers because of supply chain issues due to covid, or both. And even surpassing monthly sales goals won’t make up for bad customer service, botched installations, or perceptions that your technicians are unprofessional or untrustworthy. Accountability in sales is simple because you can track it effortlessly. But company owners need to be able to ensure accountability in all functions. Additionally, while some employees may naturally have this “accountability gene” in their personality, most do not. How do you help those in the shadows shine? You must constantly communicate your company goals. Putting your goals in a company handbook, computer server or mentioning them at the company picnic won’t get the job done. We humans are distracted easily and tend to constantly refocus our attention on the thing that seems most important to us at the moment. As a leader, you need to shine the spot light on what you have determined is most important.
Standards and measurements are a key part of accountability. This is where technology is a huge help. Way back in 2009, contributor Mike Callahan described how to create performance standards in 10 steps. He rightly stated that you should connect all performance standards to how your customer perceives value, which supports my point that HVACR contractors need accountability checks for more than just sales. Use Mike’s steps to establish performance standards for all of your important activities and make them easily accessible. Keep a standard company calendar that is accessible to all. This is where you document important dates and activities in addition to discussing them during face-to-face communications. Finally, use your technology to document observations of daily activities that do or don’t support your company goals and align with performance standards. These practices will: • Get to genuine problem-solving and solution-creating. If the information on what should be done, how it should be done, and when it should be done is always available, you eliminate excuses. • Provide structure for employees who are not naturally inclined to stay on track. Attention span, ability to focus, and memory are neurologically based and not pure indicators of performance. Many intelligent people who have lots to contribute have an easier time doing so with the structure these time management tools provide. • Give current examples of things employees should or shouldn’t be doing. Remember to praise publicly and hold accountable privately. Finally, reward accountability at various levels. This encourage employees to aim higher as their performances improve. P.S. If you save issues of HVACR Business look for the October 2009 issue and turn to page 13. If not, then go to our website and type in Mike Callahan’s name. Old articles like this require a membership ... don’t worry, there’s no charge. But you’ll need to create an account if you don’t have one already. FYI, we offer 36 months of content with no roadblocks. Content older than that requires a membership. u HVACR BUSINESS OCTOBER 2021
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CREATING A CULTURE OF ACCOUNTABILITY Doing what promised to do BY ERIC KNAAK
I
f you were to ask five people what “accountability” means to them, you would probably end up with five different answers, and no two would sound alike. Accountability is one of those words that everyone knows, but do they really understand what it means? As an example, what about the word “infamous”? Although most people think infamous means someone famous, in reality, it refers to someone with a terrible reputation. Look it up.
DEFINE YOUR TERMS So, what does accountability mean, and what is the actual definition? You can google it quicker than I can write it, so I will ask that you look at it and see if it matches what you have always thought. More importantly, I would like us to take accountability a step further and apply it to a Culture of Accountability, an organization-wide way of thinking where everyone is involved.
A Totally Accountable culture is “Doing what you said you would do, as you said you would do it when you said you would do it with no surprises." rely on everyone else to do and perform as they had said they would? Think about this in your personal life, if everyone you interacted with was fully accountable. What about the car repair that you scheduled for completion at 3 p.m. Thursday and discovered it was ready, or the HVAC technician that was supposed to arrive at your house at 8 a.m. Friday and pulled into the driveway at 7:59? Imagine the stress, the doubt, the worrying that would go away, and because of that, you could plan whatever you wanted, knowing that everything would be on schedule.
SETTING STANDARDS
Apply the same principle to your business and your clients. How accountable are you and your team to the clients that you serve? Would they call you accountable or have they lowered their expectations based on past experiences and they are just happy that you showed up? Every new client has a price tag for acquisition, and it’s essential to understand that you could lose that investment in a matter of seconds because you did not deliver as promised or as expected. Although you work hard to gain new clients, and it takes even more work to maintain those relationships, be sure that your team is up to the challenge.
Think about that for a minute. A place where everyone held themselves accountable for everything, every day, no questions asked. What kind of environment would that create for your team if everyone knew that they could
Lastly, apply the principle of a Culture of Accountability to your team, look across the organization, and ask yourself if you are truly accountable. Chances are you will start thinking to yourself, “Yea, we do pretty well,” and then after thinking it over
For this article, and to ensure that the message I am attempting to convey is precise, I will refer to the definition given to me about 11 years ago by Michael Scott of Mike Scott and Associates,( not the Michael Scott of “The Office” fame). A Totally Accountable culture is “Doing what you said you would do, as you said you would do it when you said you would do it with no surprises.”
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a little more, it might change to “We do all right,” and then finally reality will set in, and you might be sitting there going “We have a lot of work to do,” and that is ok. Nothing can change until we recognize that we have an opportunity to get better, and I can assure you that a culture of accountability in the workplace can create an engaged, productive, and most importantly, a trusting team. When each employee knows that the others around them will do what they said they would do, when they said they would do it and how they said they would do it, they do not have to worry or keep tabs on others. Let this sink in. The installer you asked to gather some information while on a call who says they will take care of it actually gathers the data. How about the service technician who told a client that they would make sure the copy of the contract gets mailed right away and before they leave home, they have contacted the office and someone is mailing the contract. And then we have the CSR who promised the client that they will call back next week when the client gets home from vacation, and sure enough, they are on the phone making that call Monday morning. Imagine the issues that go away or never happen and how satisfied everyone would be. How about your competition? Would this new culture set your team apart from everyone else in your market, and what would be the results?
IT’S A PROCESS Accountability will not happen overnight. It will take time and commitment from the entire team, but it is possible, and the benefits can go a long way toward strengthening relationships and employee engagement. A fully accountable team also adds to any organization’s productivity and efficiency, and the potential benefits are endless. Projects are completed on time or ahead of schedule and the quality of the work improves. Minimal time wasted waiting for a response or for someone else to do their part, and everyone can keep moving. There is also the impact on employee safety. When each team member feels empowered to be part of the solution, many great things can happen. As with most initiatives, if it is going to be truly successful, the owners and leaders of the organization need to fully support it. If they are not fully committed to creating this new culture, how can they expect anyone else to be engaged in making this Culture of Accountability? Leaders need to hold themselves accountable just as they would have the people who work for them. Eventually, everyone understands that this is the new way of doing business. As people adjust and make mistakes or let old habits seep in, give them friendly reminders about the new expectations and work with them to improve. u
Eric Knaak is vice president of operations for Isaac Heating & Air Conditioning in Rochester, N.Y. and past-chairman of the Air Conditioning Contractors of America (ACCA). For additional information, visit isaacheating.com.
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INVEST IN YOUR COMPANY CULTURE The right company culture is often the difference between someone simply having a job and being invested in their career. BY DAVID INDURSKY
C
reating a great company culture — with an emphasis on safety — has been at the forefront of our core values since my father, Marty Indursky, started the business in 1968. When I reflect on what he did during the first 30 years before I took over as president, it’s clear he always valued the importance of strong company culture.
Because our jobs can be stressful, it’s important to reward and recognize everyone’s achievements and accomplishments. team members only and family-inclusive events for significant others and children.
When we look through the company’s photo albums from the past five decades, they’re full of pictures from the 1970s, ‘80s, and ‘90s of ENCON’s softball teams, employee rafting trips and basketball games, etc. Back then, it was an intimate group of close-knit employees who celebrated everything together, from birthdays and holidays to weddings.
TEAM BUILDING
Our team was engaged with each other outside of the office, and my father laid that foundation. ENCON has always had a family feel.
In 2017, we did a bowling event in Sea Girt, N.J., and we intentionally divided the teams into people who didn’t know each other well and paired them together to socialize. Then, we tasked them with coming up with a creative team name to brainstorm together and, ultimately, root for one another on the same team.
When I took over in 2000, I expanded on his legacy by emphasizing company outings and allotting more budget toward events. When I think about building a company culture, we break it into two silos:
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I started with all external events … we had paintball and golf outings and annual holiday parties and family picnics each summer. Some of my favorite family events were our trips to Monmouth Park Racetrack to watch the horse races each summer.
Some of my favorite events are when
HVACR BUSINESS OCTOBER 2021
there’s some friendly competition — pickup basketball games and volleyball — because, inevitably, when Monday rolls around at the office, we’re still riffing on one another about the game a few days ago.
FAMILY ATMOSPHERE A few years ago, we celebrated 50 years of ENCON at Black Bear Lake Day Camp with tons of outdoor activities for the whole family, such as swimming in the lake, a ropes course, crafts, ping pong and volleyball. We understand our team spends a large portion of their waking hours at work, and we want to create a culture where they want to come to work and feel happy and safe. However, because our jobs can be stressful, it’s essential to reward and recognize everyone’s achievements and accomplishments.
During the COVID-19 pandemic this past year, several of our company events were postponed. In September 2020, we coordinated a “Socially Distant Family Fun Day,” upholding our annual tradition and amazing company culture safely during the pandemic. The entire value of these outings is for everyone to gather without work pressures and have fun in a relaxed environment. It’s meaningful when families get to meet each other, build memories and form friendships. It’s nice that a significant other get to know their partner’s co-workers, whom they often hear about at night after work — it helps to put a face to the name. There’s a tremendous value to fostering a company culture; it makes it about more than a paycheck — it is often the difference between someone having a job or investing in their career. Even when someone’s having a rough time personally — when someone’s ill or their family member is — we rally around to help. We had someone out for a year
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battling cancer, and people within the company and co-workers made sure they had what they needed during that trying time.
HIRE FOR CULTURE Having the right cultural fit is a key aspect of our hiring process. We look for team players who are willing to go above and beyond to help when needed.
training classes, technical training classes, soft skills, etc. I’m a firm believer in repeating training classes every few years because it’s helpful to have a refresh, and you may have missed something the first time, or it may resonate
with you more now. Our biggest and best asset is our people — and keeping them safe and wanting to show up to work the next day is priceless. u
David Indursky is president of ENCON, an award-winning, second-generation familyowned mechanical company in Ocean, N.J. For additional information, please visit enconmech.com.
It’s difficult to get a job at ENCON because we have an extensive hiring process with several stages of interviews with multiple people. If you’re interviewing to work in the field, you’ll spend time with our field crew to ensure you fully understand our work expectations and meet some of your potential co-workers. It needs to be a fit as much for you as it does for us. There’s nothing worse than taking someone out of another job and then realizing that it’s not the right fit within a few weeks. They have the right to refuse our company culture, and we’d much rather explore and learn about that before we invest in hiring someone. We try to treat everyone like they’re part of the family. Sometimes it’s difficult to quantify what that means; however, when new people join our team, it’s not uncommon for them to notice the way people are treated here and remark on it. Should someone decide to leave for another opportunity, it’s not unusual for them to return because of our management team’s high value on having a work-life balance.
SAFETY FIRST As part of our culture, safety is at the forefront of our priorities every day. It’s important to us that people leave work the same way they arrived: healthy. Safety is paramount, whether they’re driving a branded ENCON vehicle on the road, working on the roof of a project, or climbing a ladder. We have a golden rule that if someone has a broken piece of equipment, they have the green light to go ahead and replace it. We take safety very seriously. We invest in ongoing training and education classes for our team to ensure we’re always at the forefront of the industry, leading the way and enforcing safety. Our team takes internal and external
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HVACR BUSINESS OCTOBER 2021
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EXECUTIVE ROUNDTABLE:
OVERCOMING TRYING TIMES
BRYAN DAVENPORT General Manager, Oxbox
KATIE DAVIS Vice President of Engineering of Residential HVAC and Supply, American Standard
COVID Uncertainty, changing retail demand, new regulations … CHRIS DAY Vice President of Product Strategy & Engineering, Rheem
TODD NOLTE Senior Director, Product Strategy and Regulatory, HVAC-Residential, Carrier
TOM OVERS Vice President, Residential Business, Mitsubishi
BRYAN ROCKY Director, Residential Technical Services, Ducted Systems, Johnson Controls Inc.
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BY TOM PERIĆ
W
hat’s next? That’s the perennial question we all have asked ourselves, given the exceptional circumstances that the coronavirus epidemic has imposed on people and businesses. At HVACR Business, we thought the timing was appropriate to ask various industry leaders their thoughts about current trends, how they responded to the pandemic and what challenges to anticipate in the coming year. Unlike a review of past behavior that can provide a gauge for future direction, this past year has been unlike anything we have experienced. Here’s the insight that our experts offer, which just might provide a touch of direction in your business. This Executive Roundtable panel included Bryan Davenport, general manager, Oxbox; Katie Davis, vice president of engineering of residential HVAC and supply, American Standard, a brand of Trane Technologies; Chris Day, vice president, product strategy & engineering, Rheem; Todd Nolte, director of product and brand marketing, Carrier; Tom Overs, vice president, residential business, Mitsubishi; Bryan Rocky, director, residential technical services, ducted systems, Johnson Controls Inc.
HVACR BUSINESS OCTOBER 2021
Some of the answers have been edited for brevity and clarity.
What’s changed in the residential heating category the past couple of years? Bryan Davenport: I think it actually ties to a lot of regulation. So, we think back over the last couple of years, we’ve seen the introduction of the new FDR requirements to indoor blowers, as well as ultra-low NOx and low NOx requirements in the state of California. Those regulations have impacted the heating category in a very significant way over the last couple of years. Katie Davies: In 2019, the Department of Energy put into effect the Fan Energy Rating (FER). This regulation drove improved efficiency of furnace fans in the market, which substantially impacted many OEM furnace offerings. Along with that transition, we’re starting to see a gradual shift toward “electrified” solutions, especially in markets such as California. Chris Day: Nationally, there was a change in the Fanning Efficiency Rating. And that really shifted motor technologies largely and almost completely away from TSC motors to an electrically commutated motor. There’s also been
increasing regulation in tightening of NOx emissions, so there’s now two tiers of actually NOx emissions. Todd Nolte: When you look at it from a contractor perspective, one of the big things that happened over the last couple of years was the DOE’s fan energy rating that went into effect in July 2019. Also, when you look at California, there’s two air quality districts that enacted ultra low NOx rules, which basically required a NOx emission less than 14 nanograms per joule. So they would have seen a complete changeover of that, the heating product line in those markets. Tom Overs: Because of COVID customers are working from home or just staying at home, they’re more in tune with their home environment when it comes to heating and cooling. What they found is, in many cases, they’re uncomfortable … as they look to maybe repurpose a room for an office. The other thing that we’ve seen in the last couple of years is the research done by consumers to try to understand the options that they have for comfort, and specifically, heat pumps. Bryan Rocky: With implementation of requirements for furnace Fan Efficiency Regulations (FER) in 2019, residential gas furnace product offerings have
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consolidated into two basic efficiency levels with two types of blower motors. Control functionality, connectivity, ease of installation and service, and customer support are all areas that help us differentiate the Johnson Controls brands from the pack. Other changes include the introduction of Ultra-Low NOx emission natural gas furnaces and residential gas packaged units in California, but higher product costs and availability have led toward fuel shifting to electric heat pumps in some applications.
Are there any new regulations contractors should be aware of? Bryan Davenport: New [requirements demand that a] more efficient fan motor will be placed into the indoor heating products. And so, that required us to move away from a traditional blower motor that was less efficient. And these new requirements went into effect in 2019. As manufacturers moved through their inventory, as well as distributors, the new,
Minimum efficiency requirements changes have been placed into effect by the DOE, with an implementation date of Jan. 1, 2023. In addition, DOE has also required lower GWP refrigerants by 2025. more efficient furnaces have now been in the market for almost two years. Katie Davies: Minimum efficiency requirements changes have been placed into effect by the DOE, with an implementation date of Jan. 1, 2023. In addition, DOE has also required lower GWP refrigerants by 2025. In California, ultra-low NOx furnace requirements are in place. There are also potential regional regulations around electrification in new construction. ASHRAE 62.2 is also exploring a proposal defining certification of air cleaners to UL2998 “zero ozone” for residential buildings. Todd Nolte: That’s the big one that’s in front of us that goes into effect Jan. 1,
2023. That’s essentially just an increasing of the minimum efficiency in the North and South. Then a little bit further out, we’re planning for HF fee reductions that begin in 2025. In keeping with our long history of environmental responsibility, Carrier has taken a leadership role in offering the refrigerant of the future. After extensive tests and evaluation, Carrier has identified R-54B, to be known commercially as Puron Advance, as its primary lower global warming potential solution to replace 410A. Tom Overs: There’s two. The first one is Energy Star manufacturers have really positioned their products to being Energy Star qualified or rated, as a differentiator for them that contractors use as well.
They’ve also done a few things with Energy Star 6.0 where the heat pump EER and HSPF will change along with requiring a cold climate certification. Bryan Rocky: For the near future, regulations for increased energy efficiency requirements, including test procedure changes for January 2023 and the implementation of Low GWP refrigerants for January 2025, are the two main drivers that will be influencing our residential products. One area that contractors need to be aware of is changes in codes, such as the National Electric Code 2020 edition for power connections and ground fault circuit interruption as related to HVAC products. Another area for attention is the city or state code changes on electrification, i.e., promoting electric heat pumps as primary heating sources to reduce carbon emissions or decarbonization (i.e., elimination of gas furnace installations/ applications). continued on page 12
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continued from page 11
What new solutions in this space can contractors now offer to customers? Bryan Davenport: Within the Oxbox, we have a complete portfolio of products to serve the residential heating market. We not only introduced products to meet FCR requirements but also to meet the low NOx and ultra-low NOx requirements as well. We’ve got solutions across the portfolio that are extremely affordable. Katie Davies: There is a heightened focus on Indoor Air Quality. Adding an IAQ component into your conversation with homeowners can not only improve their awareness of options but can potentially improve their overall indoor environment experience. Chris Day: We put a lot of time and attention into our hybrids that are most commonly called dual fuel products. Our most logical solution to that is helping contractors understand and embrace dual fuel products and educate homeowners at the end of the day because it’ll solve that electrification if it’ll have that gas backup. For the most part, they’ll prove to themselves that they’re not using as much gas as they need. The heat pump, particularly the new technology that we’re launching over the next year, is far superior to the heat pumps that people remember a couple of decades ago. Todd Nolte: We introduced a full lineup of gas furnaces, gas electric, small package products, hybrid systems that were designed to meet the DOE for regulation in 2019. They also have the ultra low NOx compliant products in the California market. But the other one that we’re excited about is our latest addition of a high-end heating technology called the Infinity 24 heat pump, which offers ratings at up to 24 SEER, 15 EER, and 13 HSPF. And the Infinity 24 also offers strong heating capacity at lower temperatures all the way down to minus 15. Tom Overs: Mitsubishi has been an industry leader when it comes to the inverter technology that we use in our heat pumps and we’ve been able to continue to evolve over time. And now we have, what we call a Heat 2I or H2I, which is a technology that allows us to really attack those cold climate markets and look at
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Generally speaking, many manufacturers have integrated connectivity and diagnostics into higher-tier products. The insights from these products can help dealers potentially predict and prevent problems with HVAC systems/heating products. that optimal point of transitioning from maybe the gas furnace to the heat pump, and really allowing the heat pump to run down to minus five degrees Fahrenheit. Bryan Rocky: Product offerings are being updated to include better control designs, with improved functionality, connectivity, and features such as enhanced apps for connectivity. The use of horizontal discharge condensing units, such as the Johnson Controls HMH7 products as part of residential ducted systems, has started to really grow.
How has the evolution of connected homes impacted residential heating products? Bryan Davenport: It continues to expand. Consumers today expect to be connected, and their residential heating systems are no exception. I think we’ll continue to see that market expand. The desire for consumers to be able to connect increases over time, to interact with their home not only while they’re there, but also while they’re on the go. Katie Davies: Generally speaking, many manufacturers have integrated connectivity and diagnostics into highertier products. The insights from these products can help dealers potentially predict and prevent problems with HVAC systems/heating products. Chris Day: It’s about the data that we can develop or use in our channel. They [consumers] get a win in overall health and wellness because they have more control and more feedback from their systems. But then there’s also the contractors that stand to gain and arguably more, from usage of the data that we can generate and supply. Todd Nolte: The impact is really on the control side of things and being able to work with various platforms like Amazon Alexa, Google Home, and with other connected products throughout the home. For Carrier, we continue to focus
HVACR BUSINESS OCTOBER 2021
on making our products compatible with other connected systems and products. When you look at some of the consumer expectations that demand contractors use intelligent controls to better service their equipment, we’ve developed a secure connected portal program, which is similar to the auto service technician reading the code from the car and knowing what diagnostic repair approach is necessary to address the issue. Tom Overs: I think it’s affected everybody in the industry, mainly because if I’m a consumer today, there are so many options that I have to control my home via my phone than I have ever had in my lifetime. It’s the convenience factor that consumers see as the law, if you will, of these connected home devices. We’re looking at specifically, heating, cooling, probably indoor air quality, as the places that make the most sense for us and have an offering. Bryan Rocky: Connected homes continue to be the most important aspect that will change residential heating products in the future. The next advancements are already being developed in enhanced energy cost management, equipment performance, diagnostics and troubleshooting problems, and direct communications with service providers. One likely direction is the elimination of thermostats themselves – homeowners will communicate through smart devices, with sensors mounted on the wall.
Has there been a bigger focus on IAQ solutions due to the pandemic? Bryan Davenport: The awareness is certainly elevated. That is one of the things that many consumers ask for and certainly are more aware of, not only in their home, but in their workplace as well as in the school where children go. For us and for the Oxbox contractor and really contractors in general, staying
connected with those customers, talking to them about the importance of system maintenance, about the importance of changing their filters, are going to be some lasting impacts. Katie Davies: We are seeing a much stronger customer interest in IAQ due to the pandemic. Customers want to know what they can do to make indoor air safer. Instead of filters just being a necessary part of maintenance, there is now a strong interest in the efficacy of the filter and its ability to remove airborne contaminants. In addition to filtration, there has been much focus on in-room and whole home air purification products and their ability to prevent the spread of microbiologicals. With inexpensive indoor air quality monitors now available, there is heightened awareness of contaminants other than viruses, such as carbon dioxide, volatile organic compounds, fine particulates and an interest in methods to mitigate these as well. Chris Day: Absolutely. If you dial back 18 months ago, and the phone’s ringing off the hook. And the good news is Rheem sells, almost any IAQ products that are needed through green parts. We’re designing systems that are really more integrated, call it IAQ devices, that are going to have a much greater impact on the entire space. Todd Nolte: People are more cautious about the overall health of their home, and then interested in how to improve it increasing dramatically. We introduced a new product last year called the OptiClean. The OptiClean is a unit that is designed to move air potentially contaminated by the virus using a high efficiency particulate air filter. We’ve been working with school districts across the country that have chosen to use the solution as part of their plans to improve the air quality in their facilities in preparation for return of students to campuses. We also found that medical practices, salons and offices are also ideal for the OptiClean product to help purify rooms up to 1,500 square feet Tom Overs: The whole indoor water quality or the indoor environment has become very important in the last 18 months when you consider the amount of time consumers have spent at home. They thought a whole lot about their
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home and how it was operating or how it was functioning and, in many cases, determined that they’re just uncomfortable. Bryan Rocky: Absolutely yes, and the industry has already come up with new advanced air filtration equipment designs to improve air quality and remove smaller viruses and contaminants that impact our health. I expect this will continue to be one area where new products will continue to help make our homes and offices healthier going forward. The challenge will be, how do we adapt existing HVAC equipment to handle the airflow with increased resistance from enhanced filters and reduce the cost of those more effective filters, which do a better job of removing the contamination but will also need to be replaced more often?
How do you see the residential heating market changing over the next few years? Bryan Davenport: I think we’ll continue to see awareness and expansion of electrification. We’ll continue to see
electrification expand into other markets and to other parts of the country. We’ll see new regulations when it comes to efficiency coming in 2023, with new regulations and refrigerants a couple of years later.
straight AC if run as a hybrid or dual fuel system at the end of the day. There’s no doubt that gas fired furnaces will decline in volume. And a lot of that’s driven by regulation. The major movement is really 10 to 15 years out.
Katie Davies: With a heightened focus on sustainability, we’re seeing some regions and consumers make the switch from natural or propane gas to all-electric heating solutions. This switch is especially prevalent in areas where regulations are pushing for electrified solutions, and/ or ambient temperatures allow for these electric solutions (i.e., Southern/mild climate regions).
Todd Nolte: It’s mainly regulatorydriven. Typically, when you see these regulatory changes and the efficiency changes, you’ll see this potential buildup of existing products that will be sold later into 2023 for products that are allowed to do that. That’ll be a change for contractors in how they manage that changeover, the phase-in and phase-out of the old product to the new product. That’s going to be the biggest one.
In addition, we see an opportunity for dual fuel systems, which combine a heat pump and gas furnace, in regions beyond those with mild outdoor temperatures. These systems can help reduce environmental impact while maintaining perfect comfort – no matter the weather. Chris Day: The next decade is going to show a fairly significant shift toward heat pump products versus gas fire and may even a greater shift of heat pump versus
There’s also, I would say, a continued trend with electrification in residential homes. Tom Overs: If I remember the data ... it said 67% of consumers are going to do research on the internet before they even call a contractor, which is trending up. In the past, maybe it was 50-50 that a consumer would be doing research versus asking for a referral. And I think when
consumers do research, they tend to buy better products. They tend to look at what they could get as opposed to what they have to get. And that goes to the planned replacement versus a reactive replacement. Bryan Rocky: Several major challenges are on the horizon, such as decarbonization (fewer gas furnaces), electrification (more heat pumps), energy source use (fuel oil conversion to other energy sources, new natural gas service limits for home connections), developing a cold climate heat pump that will not require auxiliary electric strip heat as a backup, and more. Controls are driving the future, as heat transfer technology is currently pushed to the limit for gas furnaces. Another item in the picture is the Department of Energy (DOE) regulatory position on furnaces and water heaters. DOE is readdressing if an 80% non-condensing furnace design can be eliminated from the market to advance national energy savings. This could be a major directional change for our industry. continued on page 14
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As many companies have realized, going to the web-based video training or online self-paced training actually increases customer participation in our programs.
What are contractors saying are their greatest challenges? (other than staffing which has become a worldwide problem). Bryan Davenport: It’s probably finding products. The supply chain challenges that exist today are unlike any that I’ve faced in my career. Making sure the contractors partner with the right suppliers that can give them the equipment, the parts, the materials they need to meet those customer demands are critical. Katie Davies: Major trends: • Technician shortages (skilled labor) • Supply impacts due to the pandemic Chris Day: The greatest challenge is keeping up with all of these changes. When we say things like, all of the products that you buy from Rheem today, a year from now are going to be substantially different. I think that the most challenging part of this is going to be that the entire industry, starting with our contractors, is going to have to talk about product differently because the metrics that we’ve used for decades are changing. Todd Nolte: Because of the pandemic, our dealers will continue to be facing with challenges seen in other industries but contact with service calls and transactions will continue to be important to homeowners. The other one I would say would be supply chain challenges, issues, and they'll continue to be challenging in the short term. The pandemic disrupted the supply chain in several ways, and I think we can still see the lingering effects from that for the remainder of the year. . Tom Overs: Labor. It is a global issue that we have to manage. One is the ability for them to familiarize themselves with the advanced products that are offered by manufacturers and to install them in a manner that it meets the expectations of the consumer, but more importantly, for the contractor, so they don’t have callbacks. And that’s the biggest challenge that contractors have today in terms of cost overruns is not getting the job done right the first time and having to go back. Bryan Rocky: Contractor feedback revolves around the difficulty in getting HVAC equipment and repair/
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replacement parts from OEMs. With the economy coming back this year, we all face shortages in equipment, parts, supplies and labor, while freight and raw material costs continue to rise (anyone bought lumber or copper tubing this summer?). Another industry challenge for contractors is getting trained, knowledgeable technicians in a tight labor market. The alternate refrigerant mandates will also have a huge impact on those contractors who are more focused on supporting just one market segment, such as residential products.
What type of education and training do you offer contractors? Bryan Davenport: Our distributors offer a variety of in-person and virtual training classes to their contractors. We provide them a variety of tools and solutions through online materials, as well as online courses conducted in a virtual setting. Then as travel is allowed, we do in-person sessions with our distributors as well and sometimes coupling up with their contractors to educate them on the Oxbox portfolio. Katie Davies: We offer dealers and distributors more than 350 sales and technical training opportunities for our residential and light commercial HVAC products. As part of this training, we provide quick Field Tech Help videos to assist installers and service technicians to navigate problems while they are in the field. We also offer training around our programs, marketing, brand and digital products. Modes of learning include eLearning, videos, podcasts, virtual sessions and social learning. Chris Day: It’s full spectrum, anything from sales and marketing training, business training, to advance system diagnostics. We continue to invest in Innovation Learning Centers globally. We opened our last Innovation Learning Center about two months ago in Dubai.
HVACR BUSINESS OCTOBER 2021
Our job is to place these Innovation Learning Centers in locations that are appropriate to distributors so they and contractors can use them. Todd Nolte: We have a full curriculum of education and training courses for our dealers. The courses focus on sales, business development, installation, service and products. Course delivery ranges from in-person classes to e-learning, self-paced courses to VR simulations. Carrier’s learning management system, My Learning Center, can be assessed by dealers at mlctraining.com. In addition, many courses are available to students as well, to the public. Tom Overs: We have our traditional classes that talk about product and benefits, service, installation. But we’re also looking at something that I think manufacturers have gone away from, which is the business training for contractors. How do you run a successful HVAC contracting business, and specifically, how do you run one when you incorporate ductless systems, heat pump systems into your business? Bryan Rocky: Working with our distribution channel partners, Johnson Controls offers a wide variety of business, management, and technical training for our contractors through our Ducted Systems Academy, located in Oklahoma City. Our distribution partners also provide this type of training for our contractors through Johnson Controls Factory Certified Training Centers, which provide equivalent training at their locations. Distribution partners may also request that in-person training sessions be provided by our DS Academy staff or our Regional Technical Service Managers.
How has the pandemic affected your training programs? Bryan Davenport: Safety is paramount for us. We want to make sure we’re not only protecting our associates, but we’re protecting our customers as well.
And so, while limited today, there are opportunities to engage in person, and we ensure that we’re following the appropriate protocols to ensure the safety of everybody involved. Katie Davies: We moved most of our training to a virtual platform, and we’re determined to continue providing the best training and onboarding experience for both our dealers and dealer-supporting sales staff. The response to the virtual realm shift has been encouraging, with a 35% increase in training engagement from 2019 to 2020, and 2021 proving equally as strong. Among our new virtual offerings is a monthly FieldTechTalk to meet the training needs of those in the field. One of our technical experts hosts the virtual session that includes a presentation, live demonstration, activities for engagement and Q&A. Chris Day: It has been a challenge, and we’ve been extremely and appropriately cautious, always following in line with the CDC guidelines along the way. We pivoted very quickly to hybrid type. We’ve done entire sales meetings hybrid online. And of course, we all miss being in the same room together, there’s still high, high retentions, there is still other training plans that the team has designed. Todd Nolte: While the basic foundations of our training programs haven’t necessarily changed, we’ve added delivery mechanisms to address the conditions of the pandemic. Fortunately, we’ve already had our learning platform, My Learning Center, in place that features hundreds of self-paced online learning modules, including 3D and VR technical courses, featuring care and equipment. In addition, we were able to quickly pivot and begin offering instructor-led courses, which are traditionally taught in the classrooms, and move them to virtual classrooms. Tom Overs: Back to April of last year, it was something that we had to do and pivoted very well, where there was the sales training service for installation training that we offered because our training centers were closed. We have 11 training centers across the U.S., let alone our distributor training centers. We had to figure out a different way to get the message across to our contractors. But we did adapt.
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Bryan Rocky: Like almost every company, travel to in-person training sessions was restricted and replaced with video conferences, live webinars and online recorded training for our distribution partners and contractors. As many companies have realized, going to the web-based video training or online self-paced training actually increases customer participation in our programs. When in-person training was halted, the cost for training was reduced (no travel), and training availability increased. While remote training does lose the benefits of an in-person, hands-on approach, we found that the overall levels of training did increase.
What’s the most important thing contractors need to be aware of this heating season? Bryan Davenport: They need to make sure they’re focused on the solution that best meets their customer needs. Make sure you’re listening to your consumers, understanding what’s at the core of their needs, and responding with a solution or solutions that meet those needs. And
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The last several years have really been tough, but as an industry, we learned about change, resiliency and being focused on what’s important for all our businesses, regardless of their size. that’s where the Oxbox portfolio comes in. We offer a variety of affordable, quality solutions to meet the needs of contractors and those customers. Katie Davies: As with many other items in the market, we’re seeing a high level of demand for our products. We anticipate that dealers will experience longer lead times due to this demand and should be prepared for that this season. Chris Day: Since they’ll be able to get into homes in a way that maybe they haven’t last heating season, it’s really that whole health checkup. They should make sure that things are appropriately working and moving. And so maybe that extra touch that they haven’t been able to do in the past would be helpful.
Todd Nolte: Fall and winter are ideal times to upgrade your consumers’, your customers’ filtration and indoor air quality products. There’s never been a better time than that when you’re doing a furnace switch-out or a service call to add a whole home purifier, whole home humidifier and UV lamp. Plus, indoor air quality is obviously very top-of-mind with homeowners right now, so it’s a great time to talk with them about how they can improve their indoor air and help provide peace of mind. Tom Overs: When you look at the trends out there, it’s their ability on two fronts, one to be able to manage this continued high-demand, high-volume environment within their business so that
they’ve price shopped, they look at their business so that they can maintain the profitability or increase it. It’s a great time for them to slow down just a little bit to get things right, even though the pace is at a very high level. The other thing is being able to do the installation right the first time so that they don’t have callbacks. Bryan Rocky: The last several years have really been tough, but as an industry, we learned about change, resiliency and being focused on what’s important for all our businesses, regardless of their size. Keep your priorities straight, understand what and how you can do better, and use the resources that Johnson Controls provides through our distribution channel partners and directly to our contractors. That includes all the training offered through our Ducted Systems Academy, sales support, marketing programs, technical services support, Source 1/DS parts support, and more. u
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CUSTOMER SERVICE
BY TOM MERRIOTT
Customer Service Teams Need Processes for Business Growth
W
hen I think about building a sustainable business and managing growth related to customer service-related departments, one word comes to mind: planning. Planning to improve, planning to grow, planning to hire, and planning to train. But how can you plan if you don’t know where to start?
Take your “best of” lists of what your CSRs are already saying, add in the basic rules of customer service, and make a rough draft of your phone-answering script.
The first thing you’ll need to figure out is who you want to be in your market. Then, you need to communicate that to everyone in your company. This will help you make sure that the collective actions of you and your team are moving everyone in the same direction. For example, my fictitious company has decided to become the most professional residential service provider in my area. We will completely define what that means for everyone in our organization and build our plans around that goal.
I’m focusing on scripts because most companies that don’t use one also have the same inefficient and torturous training method. It commonly sounds something like this: “Welcome, today you are going to sit behind Anna and observe everything she does. You should take notes because in a few days you will be answering calls yourself. Let me know if you have any questions.”
Regarding customer service, we might include some metrics, such as the number of rings until we answer the phone, booking and clarification calls, other customer-facing communications, or our process for notifying customers about schedule updates. The question, “Will this make us the most professional service provider, will it filter everything we measure and plan. If the answer is yes, then we proceed. If the answer is no, then more work is required. Let’s get even more specific. One critical way you can improve your metrics and become a successful service provider is through scripting. We don’t intend for customer service reps (CRSs) to read scripts verbatim on every call. They’re for developing a professional plan for how you communicate with your customers. Now, even if you don’t have a formal script, your CSRs are likely saying the same sort of things each day. Ask them to write down what they’re already saying and then look at their words from a consistent point of view. Then, edit them down into a “best
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team buy-in here. Hopefully, your team members will have some suggestions or proposed changes to incorporate into your draft. People are much more likely to adapt to change they helped create rather than embracing something forced upon them without input. Explain to them that the reason behind creating the script was to deliver better and more consistent customer service and to make it easier to train new people as your company grows.
Whoa. This means that your call center answering standard is dictated by whichever employee you’ve selected to be the trainer. This might not seem like a significant risk to you right now, but think about using this process at your company after it has doubled in size.
of ” list of what everyone is already saying.
to solve their issue(s)?
You need better processes. You need to plan your scripts; you need to plan how you train your CSRs. The more work you do now to standardize your call center onboarding, the easier it will be to adapt to growth in the future. u
When scripting, it’s also essential to make sure that your company follows the basic customer service rules. Did your CSRs identify the company right away? Did they give their name so customers know a human being is on the other end of the line? Did they express genuine empathy for the customer and the problem they were calling about, and then assure them that they called the right place
Take your “best of ” lists of what your CSRs are already saying, add in the basic rules of customer service, and make a rough draft of your phone-answering script. Once you’ve got a rough draft, bring it to the customer service team. Hold a meeting where each person on the team takes a turn reading the script. Then, have a discussion that’s open to all comments. You are looking for complete
Tom Merriott is a Talent and Marketing Coach Manager at Nexstar Network who focuses on coaching great coaches. He brings years of industry experience from independent HVAC, plumbing, and electrical contractors, as well as national home services providers. Contact Tom at tomm@nexstarnetwork.com.
HVACR BUSINESS OCTOBER 2021
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FINANCE
BY RUTH KING
What is Your Moonlighting Policy?
M
ost companies have a “no moonlighting” policy. This is grounds for immediate dismissal. And it is painful when you discover your best installer or service technician moonlighting.
I had a different employee fix the customer’s system and fired the employee for moonlighting.
Most companies also have a “family” policy. With permission, a field employee can install a unit at a family discounted price or perform service work on a relative’s system.
3. The stealing technician goes to the ATM to deposit that check. He does not go into the bank where a teller can question the check. 4. Beware, even if a check is written out to your company, it is rarely caught if the technician goes through the ATM to make a deposit.
Here’s one contractor’s story: One day we got a call from a person saying that our employee didn’t fix the problem when he was at their home last week because the system wasn’t working again.
5. Match the service calls with payments. You should see an accounts receivable, cash, credit card, or check payment with that service call.
My customer service representative (CSR) asked for the customer’s address, and she could find no record that our company personnel were at her home last week. The person was insistent that someone was there. She explained that he was in our company truck, used our company’s invoices and our company’s materials from the truck. My CSR was quick and thought to ask, “Who did you make the check out to?” Her answer was, “I paid in cash. He told me he could give me a discount if I paid in cash.” Something was definitely wrong. I went to her home and looked at the invoice my employee had left. Yes. Our company logo was on the invoice. I recognized the handwriting on the invoice. I apologized to the homeowner and said, “The company has no knowledge of the repair. This employee was probably doing unauthorized work. How did you happen to call us?” She said, “I had a problem, so I searched the internet. I liked your company’s website, and when I called, I got an answering service. I left a message with them, and your employee called back quickly. He
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2. Unfortunately, even if the customer paid by check, it is very easy for a service technician to say, ‘I’ll make it out, just complete the amount due and sign the check”. Then he writes his name next to “Pay to the Order of. “
6. If you use QuickBooks, then you have to do another step: Make sure the undeposited funds get deposited in YOUR company’s bank account.
was nice, asked what was happening, and explained the charges to come to my home. I said “yes.” I knew that my employee was taking our work and pocketing the money. What did I do? I had a different employee fix the customer’s system and fired the employee for moonlighting. Two critical aspects to this story: 1. Even though the company did not authorize the work and did not get paid to do it, the customer thought it was our company. The technician showed up in a company uniform, the company truck, and used a company invoice. She had no knowledge that it was a side job. As a result, I have to honor the work and fix the problem.
HVACR BUSINESS OCTOBER 2021
2. The owner enforced the company policy of no moonlighting. He fired the employee despite the fact he was a productive employee. It hurt losing his revenues until he replaced him. However, he needed to send a message to the other employees that he would enforce the policies in the employee handbook. Here are the procedures to put in place to make it hard for this to happen to your company: 1. Review the answering service logs each Monday morning. Find out what calls were run and make sure the company got paid for those calls. Even more important, if there is no record of someone running a call, contact the customer to make sure that a technician did not go to her home.
7. Review the GPS logs every Monday. If your company policy is that the “”truck does not move”” on weekends without permission, you would have seen this technician’s truck at the moonlighting location. Enforce company policies, even when it hurts to lose an employee. It sends a message to the remaining employees that the company is serious about enforcement and is fair to all employees. 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.
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Where Transferable Value Comes From
O
ne of the most important elements of a successful business transition is transferable value. No matter what an owner sees for the future of the business, transferable value can be the common denominator that makes all goals more achievable.
WHAT IS TRANSFERABLE VALUE? Transferable value for a closely held business is most simply what a business is worth to someone else without its original owner. Transferable value should not be confused with profit. Just because your company brings in millions of dollars of profit each year does not necessarily mean it has transferable value. Actual transferable value in a business is determined not by how well you run the business but by how well the business runs without you. Business owners aren’t always aware that transferable value is more than a formula involving multiples of earnings or some calculation of discounted future cash flows. To get a more accurate representation of the current state of your company’s transferable value, you can start by asking yourself a few questions: If you permanently leave your business today, would it continue with minimal disruption to its cash flow? Who will be responsible for running the business without you—and with minimal disruption to cash flow?
VALUE DRIVERS One way to start to build transferable value is to evaluate your value drivers. Installing and enhancing value drivers can help create a company that can be transferred to someone else (whether that’s the next generation of family members or an outside third-party buyer)—without the owner—with minimal disruption to its cash flow. Some examples of value drivers that you may need to focus on are:
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Creating an effective incentive plan that fits the needs of your team is the best way to ensure your management team stays in place and continues to increase business value after your departure. 1. Next-Level Management 2. Operating Systems Demonstrated to Increase the Sustainability of Cash Flows 3. Diversified Customer Base 4. Proven Growth Strategy 5. Recurring Revenue That Is Sustainable and Resistant to Commoditization 6. Good and Improving Cash Flow 7. Demonstrated Scalability 8. Competitive Advantage 9. Financial Foresight and Controls One might measure the effectiveness of value drivers in two ways: 1. Their positive contribution to cash flow. 2. Their ability to continue to contribute to cash flow under new ownership. A company with strong value drivers might demand (and receive) a higher multiple on the same amount of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) than a company with weak or non-existent value drivers.
BUILD TRANSFERABLE VALUE WITH YOUR MANAGEMENT TEAM Building a management team that you can confidently leave your company with can be challenging. You may want to create a loyal “next-level” management team that will not only maintain the value of your business but is just as motivated as you are to grow the business to new heights. Understanding where your company may
HVACR BUSINESS OCTOBER 2021
have weaknesses is essential in knowing the type of person you will need to attract to help fill the gaps. It’s worth it to ask yourself whether you are focusing on attracting people with the skill sets the company needs to accomplish growth independently from the efforts and resources of the current owners. Establishing this highly qualified team long before you think about initiating a transfer can give them the time and space to prove their ability to perform.
Attracting the right team is the first step, retaining the team long after your departure is the real task. To hold onto these vital team members, they may require more money or some percentage of ownership as a condition of employment. Creating an effective incentive plan that fits the needs of your team is the best way to ensure your management team stays in place and continues to increase business value after your departure. 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.
STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION (Requestor Publications Only) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
Publication Title: HVACR Business Publication Number: 25431 Filing Date: 10/1/2021 Issue Frequency: Monthly Number of Issues Published Annually: 12 Annual Subscription Price: Free to Qualified Complete Mailing Address of Known Office of Publication (Not Printer): JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039; Contact Person: Barbara Kerr Telephone: 440-731-8600 Complete Mailing Address of Headquarters or General Business Office of Publisher (Not Printer) JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor Publisher: Terry Tanker, JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039; Editor: N/A, JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039; Owner – Full name and complete mailing address: JFT Properties LLC, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of bonds, Mortgages, or Other Securities: None Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) (Check one) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: N/A Average No. Copies No. Copies of Single Publication Title: HVACR Business Each Issue During Issue Published Nearest to Issue Date for Circulation Data Below: September 2021 Proceeding 12 months Filing Date Extent and Nature of Circulation a. Total Number of Copies (Net Press Run) 17719 27313 b. Legitimate Paid and/or Requested Distributor (By Mail and Outside the Mail) (1) Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541 (Include direct 11166 11698 written request from recipients, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.) (2) In-County Paid/Requested Mail Subscriptions stated on PS From 3541 (Include direct written 0 0 request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies) (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other paid or 0 0 Requested Distribution Outside USPS 0 0 (4) Requested Copies Distributed by Other Mail Classes Through the USPS (e.g. First-Class Mail) 11166 11698 c. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4) d. Nonrequested Distribution (by Mail and Outside the Mail) (1) Outside County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, 6461 15510 Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources). 0 0 (2) In-County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources). 0 0 (3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail (e.g. First-Class mail, Nonrequestor Copies mailed in excess of 10% Limit mailed at Standard Mail or Package Services Rates) 0 0 (4) Nonrequested Copies Distributed Outside the Mail (Include Pickup Stands, Trade Shows, Showrooms and Other Sources) e. Total Nonrequested Distribution (Sum of 15d (1), (2), and (3) 6461 15510 f. Total Distribution (Sum of 15c and e) 17627 27208 g. Copies not Distributed 92 105 h. Total (Sum of 15f and g) 17719 27313 i. Percent Paid and/or Requested Circulation 63% 43%
16. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the October 2021 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager or Owner Terrence Tanker, Publisher 10/1/2021 I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).
www.hvacrbusiness.com
PRODUCT FOCUS »
FRANKLIN ELECTRIC Franklin Electric Co. is giving residential and commercial contractors more options when it comes to the collection of sewage, effluent, drainage, or seepage water with the launch of the 16G Series 1 HP grinder pump configuration for their popular Little Giant Pit+Plus package. The Pit+Plus package is known for providing an all-in-one solution for light duty wastewater management. Each package includes a roto-molded polyethylene basin –the pit –combined with the user’s choice of Little Giant pump. The addition of the 1 HP option joins the already available 4/10 HP and ½HP sewage pump choices. The basin is available in two sizes: the 24x24 JR or 20x30 SR.
LG LG Air Conditioning Technologies USA has introduced two new split Dedicated Outdoor Air System (DOAS) units, enabling building owners and facility managers to efficiently condition outside air for improved indoor air quality and comfort, without sacrificing flexibility, reliability or ease of integration. New to the LG DOAS lineup are 12-ton Split Rooftop DOAS and 1500-2000 CFM Indoor Split DOAS offerings, providing commercial owners and operators with the ability to implement complete end-to-end LG HVAC systems with ease. >> lghvac.com
>> littlegiant.com
LOCHINVAR
RIDGID
Lochinvar’s line of 20 commercial heat pump models ranges from 25,000 to 250,000 Btu/hr and has modular installation capabilities up to 2 million Btu/ hr. This state-of-the-art product line gives specifying engineers, architects and plumbing contractors additional options to meet energy-savings and sustainability goals when bidding on large commercial properties. They also offer a variety of options including six air source, six water source and eight modular water source units, all of which feature a maximum 160-degree water temperature and an ambient operating range of 40 to 120 degrees.
RIDGID® Introduces First In-Line Standard Press Tool:The RP 351 with SlimGrip™ handle for enhanced balance and control weighs only about eight pounds with battery. It joins the recently introduced RIDGID RP 350 Press Tool, a drill grip standard press tool introduced last year to help professionals get more done on every job with less fatigue and no timeouts. Together, the advanced, long-running press tools are built for the most demanding situations and give professionals maximum standard press tool versatility on the job site. Both tools are ideal for making connections on carbon steel, copper, PEX and stainless-steel pipe on residential, commercial and industrial jobs.
>> lochinvar.com
>> ridgid.com/
CELEBRATING 60 YEARS
We are poised and ready for the next 60 years!
www.EWCControls.com www.hvacrbusiness.com
• 1-800-446-3110 •
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In honor of our 60th anniversary, EWC wishes to thank its customers, employees, and business partners for making us the #1 supplier of Zone Control Products in the industry, and because of you…
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EWC’s humble beginnings started in manufacturing power supplies for airplane cockpits, F16 fighter jets, Blackhawk Helicopters, smart guided missiles and the NASA Space Shuttle. Since 1988, our HVAC controls division has been the innovative leader in Zone Controls and Steam Humidifiers with over 1 million installations worldwide.
ST QUALI GHE TY HI ST
of Manufacturing Excellence, Industry Leadership & Innovation
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info@ewccontrols.com HVACR BUSINESS OCTOBER 2021
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20QUESTIONS >>
with CLINT ROBERTSON
Publisher Terry Tanker sat down with Clint Robertson a licensed attorney, CPA, real estate broker, mediator, contractor, negotiator, and serial entrepreneur. He's half of the hit HGTV series Boise Boys. Luke Caldwell is his partner. The Boise Boys are celebrity partners and spokesmen for American Standard Heating and Air Conditioning. 1. What's your secret ambition? Win the World Series of Poker.
2. Would you rather hit a hole in one, throw a touchdown pass or hit a home run?
I’ve hit home runs and thrown TD’s but never hit a hole in one, so I’d LOVE the feeling of seeing that golf ball disappear from the tee box!
3. Do you own any crypto currency? I’ve got just enough to not be left behind when/if crypto booms.
4. What's your favorite possession? My refrigerator and its contents.
5. What's the one thing you wish you would have said yes to when you were younger? Living life slower and more intentional.
6. Who is your mentor?
Experience (or as my grandfather would’ve put it “The School of Hard Knocks”).
7. Other than finding employees what is your most immediate challenge?
My most immediate challenge is always my family — not because they’re difficult but because I’ve always put a high priority on meeting their needs. As Sandy and I transition to empty nesters, it seems that their needs are even more present as two sons navigate medical school and as the youngest son prepares to go to medical school.
8. How are you addressing that?
Hard work expanding my businesses and lots of prayer.
9. In 20 words or less can you describe your company?
Construction, Law, Poker, Consulting. I’ll let you try to figure that out!
10. What's the most important quality you have to have as a leader? Compassion. I’ve had employees in my life since I was in my 20s, and my tact has changed
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HVACR BUSINESS OCTOBER 2021
significantly since then. As a hard driving young entrepreneur, I spent most of my leadership driving the vision. These days, I’ve come to the conclusion that the purpose of my businesses is to benefit others. Without being a pushover, I’ve realized that the best thing a leader can do is serve those under his charge.
11. Supply chain issues are effecting every company. How are you managing this?
Patience, diligence, resourcefulness and a lot of explaining. Nine out of 10 customers/clients who have lived through this past two years understand and sympathize with the difficulties of the broken product chain… and I don’t let those who don’t understand ruin my peace trying to be a squeaky wheel.
12. What are you forecasting for 2022 or is this really just a guess?
One way or the other, 2022 will be a breakout year. Virus or not, the human spirit to fly can only be contained for so long. Either the COVID risk will subside or people will decide the risk of living scared is greater than the risk of disease.
13. What aspect of managing is most satisfying to you? Achieving the level of confidence in my employees to hand over tasks previously reserved solely to me. That’s freedom.
14. What has been your most recent "the buck stops here" moment? Every business has dissatisfied customers. It’s a fact of life. However, I’ve found in most cases when the owner takes “ownership” of those moments, problem
customers/clients become a business’ biggest cheerleader. I currently have the world’s most particular, whiny, and unpleasable couple for whom we’ve been doing punch items for almost three years. We solve one of their “issues” and they find two others. But, we keep going back because no other company would and that’s what’s sets us apart. Here’s to eventually finding their last issue!
15. What do you view as your most important management responsibility?
Surrounding myself with kind, honest and motivated people. Give me motivated people with good hearts and I’ll change the world!
16. How have you kept employees focused working remotely?
Fortunately due to the nature of my businesses and favorable jurisdictions, none of my businesses have been required to go remote. People need the stimulation of the presence of other people, and I can only imagine the hardships of businesses that had to go remote.
17. How do you inspire your managers and other team members?
Empathy. Everyone is different and everyone has their own set of pressures, motivations, and hurts. Care for the person and most of the time they care for their job and for the wellbeing of the business.
18. Where do you think most leaders really struggle? Getting over their own ego.
19. What can they do to overcome this?
Priorities. The advice to “love your neighbor as you love yourself ” is probably the best ever given.
20. What parting words of wisdom do you have for Q4 and 2022?
Don’t stop. Tough times squeeze out your true essence. Make sure you like what’s dripping out of you during the squeeze.
www.hvacrbusiness.com
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Apparently, we’re not supposed to call out competitors, so we’re just gonna say this: This is RunTru by Trane. Designed, built and tested by the name synonymous with reliability—and priced affordably. So now, everyone’s happy. Everyone, except, you know. Learn more at RUNTRUHVAC.COM/DEALERS
