HVACR BUSINESS JANUARY 2021

Adapt and Overcome Pete Grasso 5

Establish Your Company Culture Eric Knaak 8

Leverage Your Employee Talent Erica Leonor 14

Demystifying Retro-Commissioning Marty Indursky 16

Have a Sound Inventory Policy Ruth King 18

Successful Planning Starts Early Keven Prather 19

HVACRBUSINESS.COM JANUARY 2021 / VOL.16 / NO.1

9 RESPONSIBILITIES OWNERS

SHOULD NEVER DELEGATE

ALSO INSIDE » Executive Roundtable: Low GWP Refrigerants ...............................................10 Product Focus ...........................................................20 20 Questions with Dan Foley Owner/President of Foley Mechanical .................22

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CONTENTS

JANUARY 2021 / VOL.16 / NO.1

F E AT U R E S

6 8

9 Responsibilities Owners Should Never Delegate

D E PA R T M E N T S

While some business owners find more freedom and growth as they delegate, there are a few things they need to continue to do themselves. By Angie Snow

5

Establish an Appropriate Company Culture Culture is the heart and soul of any organization — it’s how things are done and what is expected of all team members. By Eric Knaak

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Executive Roundtable: Low GWP Refrigerants

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Leverage the Talent of Your Employees

16

Commissioning is Key to Understanding Retro-Commissioning

The industry is moving to refrigerants with lower global warming potential (GWP). But with this change also comes challenges. By Pete Grasso Even the most unlikely person can be successful if given the right direction, training and motivation.

By Erica Leonor

Editor’s Notebook If there’s one thing this industry should carry over into the New Year, it’s the ability to adapt to change and thrive.

By Pete Grasso

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Product Focus AHR Expo Innovation Awards

22

20 Questions with Dan Foley Owner and president of Foley Mechanical in Lorton, Va.

Buildings evolve over time and, in today’s COVID-19 environment, retro-commissioning is more important than ever. By Marty Indursky

C O LU M N

18

Wealth Rule No. 8: Have a Sound Inventory Policy

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Successful Planning Starts Much Earlier Than You Think

Inventory tracking is key to a sound cash policy. You don’t want to spend cash you don’t need to spend.

By Ruth King Beginning your planning long before you intend to leave your business often lets you choose the conditions of your exit. By Keven Prather

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Breaking Records in Trying Times Seven years ago, if you’d told Nathan Engelsma, owner of Grapids Heating & Cooling, that he’d have a record-breaking April during the 2020 crisis, he’d have laughed. April is historically the lowest-performing month. Forget about it.

But Nathan and his team: • Joined Nexstar in 2013.

• Worked with their coaches, implemented Nexstar practices, and networked with other members.

• Turned the small, HVAC-only business into an 11-truck, $9M industry leader.

Even through a pandemic.

“ There’s no way this kind of growth could have happened without my coaches and peers at Nexstar.”

– Nathan Engelsma Grapids Heating & Cooling – Member since 2013

888-240-STAR (7827) www.NexstarNetwork.com membership@nexstarnetwork.com

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@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 Fax 440-731-8750 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 ttanker@hvacrbusiness.com

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.

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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EDITOR’S NOTEBOOK

BY PETE GRASSO

Adapt and Overcome

I

t’s a brand-new year and I, for one, couldn’t be happier to say goodbye to 2020. Last year was certainly a tumultuous one and there are many aspects of it which almost no one would like to see carried into this year.

There is one thing, though, that I should like to see continue in 2021 and beyond, and that is our uncanny ability to adapt and overcome.

As I reflect back on 2020, I can’t help but be impressed with just how much this industry was able to adapt to the unprecedented circumstances and overcome the many challenges thrown at us.

Speaking of culture, it is — as Eric Knaak so eloquently puts it — the “heart and soul of any organization.” His feature (pg. 8) describes why it is important to define your company culture, and then implement and use that culture for the betterment of your business. To change something as ingrained as culture, you definitely need to be able to adapt and overcome.

This theme can also be applied on the technical side of the business too. The industry continually has to adapt and overcome with each new regulation — the most recent example being the transition to low global warming potential (GWP) refrigerants. This month, we feature part four of our four-part series on what you need to know about this transition in an Executive Roundtable (pg. 10).

If there’s one thing this industry should carry over into the New Year, it’s the ability to adapt to change and thrive.

So many contractors I’ve spoken with over the past year have told me fascinating tales of how their businesses not only survived but thrived during a pandemic. The same cannot be said, sadly, for many business sectors. Fortunately, this essential industry was able to adapt and overcome.

In putting together this issue, I was amazed at how “adapt and overcome” unintentionally became an underlying theme to so much of our editorial. When we put together our editorial calendar each year and assign article topics to contributors, there is a vision for each issue.

I give our contributors — contractors like you, industry consultants and business management experts — the freedom to craft their message after giving them only a loose outline of what we’d like to cover.

Given the variety of business management topics we cover in a given month, it’s rare to find so similar a theme … which tells me I’m not the only one who believes it’s a good idea for this industry to continue to adapt and overcome.

In our cover story, “9 Responsibilities Owners Should Never Delegate) (pg. 6), Angie Snow describes a situation so many of you have either already experienced or are experiencing now. As an owner, you’re used to doing everything yourself. But, as you grow, that becomes more and more difficult. It’s important to let go of some tasks and delegate, but also to keep certain responsibilities to yourself. To grow as a leader, you need to adapt and overcome.

Erica Leonor’s feature (pg. 14) reminds you that your leadership and culture directly affect your ability to leverage the talent of your employees and how we are all born with different natural gifts and talents. In other words, we must adapt and overcome to be the best we can be at our jobs.

In addition, Marty Indursky, the founder of Encon Mechanical, provides a nice feature on retro-commissioning (pg. 16). As he says, buildings evolve over time and using retro-commissioning is a great way for you to help that building adapt and overcome any issues that arise.

And finally, in what I would consider the greatest example of “adapt and overcome,” I spoke with Dan Foley, owner and president of Foley Mechanical. Last April, after business nearly came to a halt because of the uncertainties surrounding the onset of the coronavirus pandemic, Foley himself suffered a major setback.

He contracted COVID-19 and was hospitalized for seven days. Even after he was discharged, it was weeks before he was even as much as 80 percent back to normal. In two months, his business suffered greatly in his absence. As best he could, he rallied his team and slowly started to get his strength back. Because of the uncertainty surrounding everything, he told everyone to stay home for two weeks while they figured out what to do.

Then, Foley Mechanical bounced back with the best June, July and August ever, more than making up for the lost revenue in April and May. This trend continued into September and Foley realized the business was too reliant on him to succeed. He is currently changing procedures and ensuring nothing like what happened last spring ever happens again.

Adapt and overcome. Let it be your mantra this year. Let it be a rallying cry as a business owner. No matter what is thrown at you, you will adapt and overcome. Because, let’s be honest, if you can survive 2020, you can survive anything.

HVACR BUSINESS JANUARY 2021

5

9 RESPONSIBILITIES OWNERS

SHOULD NEVER DELEGATE

While some business owners find more freedom and growth as they delegate, there are a few things they need to continue to do themselves.

BY ANGIE SNOW

M

y husband and I became proud owners of our HVACR business a little more than 13 years ago.

At the time, we had four technicians and ran the business out of our rental home.

During this time, we both did everything in our business. I answered phones, scheduled and dispatched calls, recorded invoices, paid bills and processed payroll. My husband ran sales calls, created estimates, ordered parts and equipment and managed the service team. He even helped our installers and technicians when necessary.

It was an exciting time, but soon became exhausting and overwhelming. With three young children and a bright future ahead, we wanted to grow and began to hire more team members. As our team grew, we began to delegate tasks and responsibilities to our team. At first, I was hesitant to let anyone else take over the duties that I had been doing. What if they could not “do it as good as me?”

The myth that “no one can do it as good as me” often holds business owners back. They become the bottleneck that keeps their company from growing. It’s imperative that business owners learn how to delegate and delegate effectively. Once my husband and I began to “let go” and

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delegate to our new team members, we began to see amazing growth and success.

HVAC business owners who have effectively mastered the art of delegation have more time to work “on” their business and not “in” their business. When done properly, delegation can lead to increased productivity, revenue and profit.

It can also lead to more fully engaged employees, improved team morale and happy customers.

While many owners are finding more freedom and growth as they delegate, there are some things that the owner should never delegate. The former teacher in me loves a good acronym, so in the spirit of “OWNERSHIP,” I would like to share nine responsibilities that the owner should never delegate.

OVERALL VISION The owner has the important responsibility of painting a clear vision for the future of the company. He or she should define the vision, mission and goals of the company. Once those are defined, it’s important to communicate the overall vision and share the WHY behind those goals.

When team members can see the big picture, they can align their individual and team efforts with the company vision.

HVACR BUSINESS JANUARY 2021

If an owner does not have a clear vision of where he or she want to go as a company, then it leaves a lack of direction for the team. Not only should owners provide the vision for the business and paint a clear picture of what goals they want to have accomplished, they should put deadlines and end dates of when they want those goals accomplished. Once the end goal is clear, the team can strategize and contribute as to how to meet those goals.

WINNING CULTURE The world recently lost a great business leader with the passing of Tony Hsieh, CEO of Zappos. “At Zappos, we really view culture as our No. 1 priority. We decided that if we get the culture right, most of the stuff, like building a brand around delivering the very best customer service, will just take care of itself.”

Tony understood that interactions, both between employees and with customers, are the key to a business’s identity. When your team is excited to come to work and to be with their teammates in a safe, inviting and FUN environment, they will find more joy and satisfaction in their duties. They will also become more engaged and loyal to your company.

Need help with your culture? Start with

your values. Define them and then create a plan to live those in your company. As the owner, you determine the values that will shape your culture. Then engage your team and bring the culture to life. Celebrate birthdays, holidays and other events that can bring your team together.

NUMBERS The owner should have a very solid understanding of the overall financial situation of the company. This includes a daily review of the income statement and understanding of the balance sheet.

While bookkeeping and accountant work can be delegated, the owner should never stray too far from reviewing the important financial information such as expenses, cashflow and reconciliation of accounts. Each owner must ensure that proper checks and balances are in place to keep financial information accurate and safeguarded.

My good friend and profitability master, Ruth King, invites owners to look at their numbers — especially their cashflow — daily. “Looking at a balance sheet is more important than looking at a profit and loss statement. You build longevity, by building a strong balance sheet. From a business perspective, you cannot build wealth without profits.”

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The owner should also be looking at key metrics on a regular basis and track benchmarks along the way. Knowing which KPIs (Key Performance Indicators) make the biggest impact on the company is something the owner should know and keep close watch over. KPIs such as number of booked calls, call booking rate, memberships sold, calls ran, average tickets (for all departments), turnover rates and lead conversion rates are just a few.

EMPLOYEE DEVELOPMENT Service Excellence business coach, Todd Liles, promotes that all too often we give training to those who “need it,” not those who “deserve it.” I completely agree with him.

As an owner, be incredibly involved in the career paths that you are creating and providing for your team. Each path should include a level of professional and technical development that can help them develop into the leaders and representatives that best emulate your company and your values.

When determining a budget and plan for training, I have heard some concerned owners ask, “Well what if I give my technician this fabulous training and he leaves me?” The better question to ask is, “What if you DON’T give him training and he stays?”

Field employees are not the only team members that need (and deserve) to be developed. Your CSRs, dispatchers and managers will all start performing at higher levels with the right learning and development plan. We are only as strong as our weakest link. Identify weak areas in your company and find a good program, class or coach that can provide additional knowledge and skills.

Invest in your team, especially the team members who directly report to you. As you develop your leaders, they can then produce leaders on their own team.

RELATIONSHIPS This is one you simply MUST not delegate. Be intentional about creating relationships with every employee in your company. Get to know more about them personally, as well as professionally.

Owners who are great at building such relationships seek opportunities to give their team members encouragement, advice and recognition when earned.

When a team member feels connected

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The words you use, the thoughts you think, your body language, your decisions and behaviors are all being observed by your team. to their owner, they are more likely to buy into the owner’s vision and direction for the company. relationship, they will feel a deeper connection to the company, resulting in better employee retention.

Don’t forget to develop similar relationships with your customers. When a customer feels connected to the owner, they are more likely to stick with your brand and be an advocate and ambassador for your company. Take a special effort to send thank you notes, emails and phone calls to customers; especially those with a great influence and network. Build a solid network with other local business leaders.

Get involved in HVACR best practice groups, organizations, associations and vendors. The relationships that I have built in my membership with Service Nation Alliance, Women in HVACR, HVAC Excellence and other industry groups have helped me connect to some of the most influential people in the business. I have met and learned from industry icons such as Ron Smith, Larry Taylor and Matt Michel.

These groups have connected me to very successful contractors who have welcomed me into their shops and shared business practices and strategies. These relationships are priceless.

SELF-DEVELOPMENT One of my favorite things about being an HVACR business owner is the daily variety and responsibility of making decisions in my company. Each day brings new decisions, opportunities and challenges. Regardless of the differences each day brings, I feel empowered to face those decisions when I have scheduled time for my personal self-development.

Taking time to develop my personal knowledge gives me an added level of confidence and energy to take on the day. Selfdevelopment may not be a responsibility that owners would delegate, but it may be one that owners procrastinate.

My husband (who is also my business partner) gets up early so he can arrive to his office an hour before everyone else and work on his personal development. This is his treasured quiet time when he is awake

and focused so he can really ideate and implement the strategies he is reading about.

Like my husband, I enjoy doing my development in the early morning as well, but also look for opportunities to fit in during other times of the day. I will listen to podcasts while running, getting ready for the day or even while driving.

HEALTH It sure would be nice to delegate my health to someone else in my company, but this is another key component to success that simply cannot be delegated.

Nutrition, sleep, exercise as well as emotional and mental health will all play into one’s physical well-being and effect your ability to execute and perform on a high level.

Let’s face it, owning a business is stressful. The last thing any owner wants to do is carry that built up stress home and dump it on their family.

I encourage every business owner to find an effective way to release the negative emotions and stress that builds up throughout the day. Music, meditation, exercise and vocalizing frustrations are all effective ways to release emotional buildup. Find a healthy way to manage the stress and do it on a regular basis.

If necessary, seek help. While we can’t control all aspects of illness and genetic diseases, identify areas that you do have control over and make better decisions to help yourself be the best version of yourself possible.

INFLUENCE Owners should never underestimate the influence they have on their team. The words you use, the thoughts you think, your body language, your decisions and behaviors are all being observed by your team. As an owner, you are a role model and example that your team is looking up to. This influential role cannot be delegated to your team but should be emulated by them.

I recently met with a college coach who was trying to recruit my daughter for his volleyball team. He shared a coaching strategy that I thought was very impactful.

One of his team rules is that no one can swear. Seems like a stiff rule, right? He said that when he sees a player on the opposing team swearing, he knows they are frustrated. He will then design plays that go specifically toward that team player, which often ends up as a side out and a point for his team. He has won many games with this strategy.

As business owners, we must maintain control over our thoughts, language and actions. We cannot let our frustrations show. Crap happens. Expect it. But also know that when you react to any situation, your team is watching you and the way you respond. The best way to react is to be proactive in deciding right now how you will respond in any given situation.

PASSION As an owner, you started or purchased your business for a reason. What was that?

What was so appealing about this industry that you decided to take the leap? I initially joined the industry to help my husband and eventually ended up loving so much about this industry. My passion quickly became marketing. As an owner, it was one of the last things that I delegated because I loved it so much.

If you have something that you absolutely love doing in your company, then don’t delegate it. Do it, enjoy it. But still take into consideration the most valuable tasks that you should be doing as an owner to help guide you in this decision as well.

Ownership comes with many responsibilities that can only be done by you, the owner. Owners have critical decisions to make every day, many of which should not and cannot be delegated. Your influence, vision and guidance will be respected by your team and customers when you take time to build meaningful relationships with them.

I invite HVACR owners to do what it takes to stay physically, mentally and intellectually empowered to lead your team and company to success. u

Angie Snow is the vice president and co-owner with her husband Ryan of Western Heating & Air Conditioning in Orem, Utah. She is also director of customer & product training at ServiceTitan. For additional information, visit westernheatingandair.com or servicetitan.com.

HVACR BUSINESS JANUARY 2021

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ESTABLISH AN APPROPRIATE

COMPANY CULTURE

Culture is the heart and soul of any organization — it’s how things are done and what is expected of all team members.

BY ERIC KNAAK

O

ver the last several years, one of the hot topics that comes up when discussing an organization is company culture. Culture can be defined as “the set of shared attitudes, values, goals and practices that characterizes an institution or organization.”

Culture, therefore, the heart and soul of any organization, how things are done and what is expected of all team members.

VISION STATEMENT It all begins with the company vision statement — the written understanding of the organization and what it stands for.

There are many schools of thought on the vision statement when it comes to length, content and the messaging that it provides. The vision statement is just that, it

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Before you can establish a culture, you should determine what you want that culture to be. paints the picture for anyone who reads it as to what the roll of your organization is.

At Isaac Heating and Air Conditioning, our vision statement reads as follows, “To create an enjoyable experience met with anticipation which results in an environment where our team, clients and community can comfortably grow prosper succeed and improve their quality of life.”

Some will say it’s too long (and that’s okay!), but for us this tells the story of who we want to be and guides us in many of our decisions.

HVACR BUSINESS JANUARY 2021

RESPONSIBILITY When you look at culture, who do you hold responsible for its success or failure?

Before you can answer that you need to determine who creates the company culture. Is it the owner who is ultimately responsible or is it the management team?

What about the employees, do the people who work there create the culture?

I’ve had this discussion in the past and I believe that is the responsibility of the owners, assuming they are involved in daily operations to establish the values, goals and practices necessary to create the

culture that they wish to have. It then becomes the role of the leadership team to carry them out so that their clients and employees can see and feel the culture as it was intended.

Finally, it is the responsibility of all team members to follow these set values, goals and practices with every client interaction, both internally and externally.

DEFINE YOUR CULTURE For most companies, the culture it has today was likely not intentional — it is more likely the result of many years or decades of everyday operations. But what happens if you want to create a specific culture, if you make an intentional effort to create what you feel is the best culture?

What are the steps that you should take to help establish that culture?

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Before you can establish a culture, you should determine what you want that culture to be. It could be a sales culture where everything that takes place is centered around making a sale. You could have a service culture where all that takes place is focused on servicing the customer.

The attitudes of your team members should reflect your culture and when they do not, you have an opportunity to coach and educate.

What if you wanted a community-based culture, one in which the primary function of the organization is to serve their community and those who live there? You could have an employee-based culture, where everything and every decision is focused on the benefit to the employee.

There are, of course, many other types of cultures that you could strive for … or it could be a combination of any of those mentioned above as well as others.

Whatever culture you decide is the one that you want within your organization, it is critical that the values, goals and practices are aligned to support that culture.

EXPECTATIONS Now that you have established a culture, based on the values, goals and a vision and mission statement that aligns with your beliefs, you will need to ensure that your leadership team has a clear understanding of the expectations and that they’re all on board to assist in cascading this throughout the organization.

This will require group meetings and conversations amongst the leadership team so that any challenges can be agreed upon at the highest level. Without leadership alignment it will be impossible for the desired culture to permeate throughout the organization.

This is the best time for the leaders of the organization to ask questions, challenge and disagree until a common understanding is reached.

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At Isaac Heating & Air Conditioning we talk about our core values. A core value is something that you will stay true to even if it becomes a competitive disadvantage, meaning that no opportunity is worth it if we need to compromise one of our core values in order to obtain it.

Whatever you decide is going to be your company culture it’s important that you own it and that most, if not all, of your decisions consider culture when being made. Because of your culture you will attract new employees and you will likely lose some employees but you are staying true to yourself and everyone who works at your organization will understand with clarity what your company stands for.

Your culture could be focused on growth and always looking and striving for the next opportunity.

Recently, I had a conversation with the president of my organization and we were talking about culture being a verb instead of a noun. When your company culture is a noun that means that it exists and it is just assumed that this is the culture, whatever words you put on paper or share in a meeting should be assumed. When culture is a verb it speaks much deeper to the roots of an organization and it requires effort and intention from every member of the team.

CORE VALUES

The attitudes of your team members should reflect your culture and when they do not, you have an opportunity to coach and educate (unfortunately, you will at times need to end working relationships).

Once leadership is fully on board, you then need to begin with actions that support and justify the culture as you wish it to be. For example, if your culture includes accountability, then all leaders within the organization need to hold themselves as well as their subordinates accountable for their actions.

are all beginning to understand what your culture is and now that they are beginning to see it in action on a daily basis, how do you introduce this to new hires?

Hopefully the culture that you have created is now beginning to attract like-minded people and it will hopefully help you to grow your organization.

If you decide that you want a culture of accountability, but you choose to overlook the actions of an employee, you truly do not have a culture of accountability. The same could hold true for integrity, safety, continuous improvement or whatever other values you choose for your organization.

When a new employee begins with the organization, day one needs to include an orientation that talks about the values, goals and practices of your company. This sets expectations in the very beginning and solidifies to those new team members the culture that you have chosen for your company. There is no doubt as to what your company stands for and what is most important and allow new employees to see it occurring from top to bottom.

Company meetings, team meetings, daily huddles, training classes, etc. should all have some mention of the core values that helps support the desired culture. For example, if safety is one of your values then each meeting there should be a brief conversation about safety or some mention of a safety objective or a safety concern.

As mentioned earlier under accountability, team members need to see the values in action so that they do become part of your culture.

Now that your current team members

It may seem daunting at first and it will take time, but I can assure you that once you have established a strong company culture that all decision making will become easier. Opportunities will present themselves and team members will be able to rally when that culture is challenged by internal or external factors.

If you don’t know where to begin, consider bringing in a consultant to help guide you through the process — not to determine your culture or your values, but to help bring them out to the forefront. 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.

With everyone within your organization understanding very clearly what the company culture is, you now need to be sure that this is what your clients, vendors and subcontractors experience on a daily basis. For most it should come across as positive, however, there will likely be a few people who do not fully agree with your culture and that’s okay, you must remain true no matter what.

HVACR BUSINESS JANUARY 2021

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EXECUTIVE ROUNDTABLE: LOW GWP REFRIGERANTS The industry is moving to refrigerants with lower global warming potential (GWP). But with this change also comes challenges.

BY PETE GRASSO

O

nce again, the industry is shifting to a new refrigerant. Unlike past transitions, however, there is no one standard replacement for the current R-410A refrigerant. When the industry began phasing out R-22 several years ago, R-410A was the widely adopted replacement.

Although R-410A has an ozone depletion percentage of zero, it does have significant global warming potential (GWP).

The race is on now for the industry to transition to refrigerants with a low GWP — a race, that is, in which the finish line seems to always be changing. Add in the fact there is no Federal guidance relative to this transition, states are left to develop their own guidelines — with California leading the way.

Refrigerant transitions can be complicated enough, but with no solid timing, no Federal guidelines and not one, but two leading replacements (R-32 and R-454B), this transition seems a little more complex.

To help contractors sort this out, I

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recently spoke with a handful of executives at many of the top manufacturers and industry associations to find out what contractors need to know about the transition to low GWP refrigerants.

This Executive Roundtable panel includes: • Alex Ayers, director, government affairs at HARDI; • Wes Davis, director of technical services at ACCA; • John Galyen, president of Danfoss North America; • Chris LaPietra, vice president and general manager for Honeywell Stationary Refrigerants; • Rene Molina, global business director for Arkema; • Todd Nolte, senior director of product strategy and regulatory for Carrier; • Doug Tucker, director, industry and government relations for Mitsubishi Electric US; • Nathan Walker, senior vice president at Goodman Manufacturing; • Helen Walter-Terrinoni, vice president, regulatory affairs at AHRI.

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How is this transition different than when the industry phased out R-22?

Nolte: They’re very similar. The one difference will be there will be sensors in the equipment that need to detect the A2L refrigerants, so if there’s a leak, being able to have that leak detection. Outside of that, it’s very simple. We’ve been through this before, and that would be the one nuance that I think people need to be aware of and prepare for … otherwise, the industry is well-equipped to handle the transition.

Galyen: When the industry transitioned from R-22 to [mainly] to R-410A we had to address higher pressures and different oils that also tended to be more hygroscopic, in other words they absorbed water. Now, as we transition away from R-410A, we’re mainly focused on these A2Ls, a mildly flammable refrigerant, which means we have to adapt to make sure they are safe. Because of the mildly flammable status we have to manage fire and building code changes before they can be widely adopted.

Walter-Terrinoni: We saw a change in operating pressure in the transition from R-22 to R-410A, a zero ozone depletion potential refrigerant. The transition to low global warming potential (GWP) refrigerants will require the use of lower flammability or the American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) classified A2L refrigerants.

Molina: There is actual and widespread experience in moving from one or more set of refrigerants to another with a keen understanding of what makes a transition successful, from the planning to execution including a clear communication of the key product characteristics throughout the value chain. Also, this transition will require training and additional safety features for proper implementation in the case of A2L refrigerants as well as coordination with local code officials.

Davis: (Before), we could use a lot of the same equipment. This time, we’ll need to get a few new gauges and a few tools, and we have to take a little extra care during the installation and service. There

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are going to be some restrictions as far as room size or the space in which this equipment is installed. But I think those are probably the biggest factors.

Ayers: One of the things that we’ve been doing as an industry is looking at all those challenges and trying to find solutions to make sure that this transition is as smooth as possible, knowing that there are some changes that will have to happen by comparison.

Walker: A refrigerant change in the industry is not unusual. But in the past, the HVACR manufacturers, the OEMs, generally have adopted the same refrigerant such as moving from R-22 to R-410A. But that may not be true with the pending transition to low GWP refrigerants, as two major manufacturers have announced two different refrigerants (R-32 and R-454B).

What is the timing for this transition to low GWP refrigerants?

Walker: Today, there’s not a firm universal date for all HVAC solutions, but we’re monitoring the progress of key state in federal proposals, with the understanding that the US will likely need to move to a next generation refrigerant. Both the chambers of Congress have introduced the Bipartisan American Innovation and Manufacturing Act or the AMAX, which seeks to give the Environmental Protection Agency (EPA), the authority to regulate the transition, looking to mirror the Kigali Amendment Phase down. So that’s the key one to watch, and see where that goes over the next several months.

Galyen: The industry has been advocating to give EPA the authority to do the phase down of GWP refrigerants. That hasn’t happened. In that void California has moved ahead.

Molina: The only state addressing this issue is California. On December 10, 2020, the California Air Resource Board (CARB) adopted a change to require all new stationary AC in the state to use refrigerants with GWP of 750 or less as of January 1, 2025. This is a two-year extension from the original proposal, recognizing that building codes will not be ready to allow A2L refrigerants by 2023. No other state has proposed R-410A restrictions in A/C, and, at this time, there is no federal legislation that would specifically prohibit continued R-410A usage.

Ayers: California is looking at a

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The race is on now for the industry to transition to refrigerants with a low GWP — a race, that is, in which the finish line seems to always be changing. mandate as far as equipment goes and that will be the first state then to transition to A2L refrigerants. With that, we’ll see that initial transition happen there. And then I think very quickly following that, you’ll see it in other states just because as equipment manufacturers produce more equipment, they’re going to produce more than is necessary just in California and that will become available in other states and distributors will start purchasing that equipment for sale along with the service gas to go with them.

Walter-Terrinoni: The transition to low global GWP refrigerants is gradually happening now. EPA’s SNAP Rule 20 (including commercial refrigeration) and SNAP Rule 21 (including chillers) that were sent back to EPA to be re-written by the Court have now been adopted by six states and 10 more are working toward adopting the same regulations requiring a transition for refrigeration systems in 2021, and chillers in 2024.

What can you tell us about the leading replacement refrigerants — R-32 and R-454B? Tucker: The last transition, R-410A was to clear a replacement for R-22 for residential and commercial covered conditioning applications. But for this transition, we haven’t yet concluded which refrigerant will be the primary replacement. If there will be one replacement or possibly two or more replacements being used for this market. As far as performance characteristics, R-32 is probably ahead of R-454B. R32 is also, as a single component refrigerant, it’s easier to reclaim and recycle than a refrigerant blend and Mitsubishi Electric is using R32 in products and markets worldwide that have already transitioned. But for the U.S. market, we need additional testing and evaluation such that we can evaluate the performance characteristics for US specific types of products for this transition.

LaPietra: Honeywell has a broad portfolio of refrigerants, which includes both A1 and A2L refrigerants such as R-32 and R-454B, that minimize environmental impact and are designed to meet the

performance and safety needs of an application. As a supplier of A2L refrigerants into a broad range of applications, we strongly support all efforts to ensure that flammable refrigerants are used safely and are following due process with standards and building codes.

Walter-Terrinoni: In the U.S., Daikin announced that they would be using R-32 and Carrier announced that they would be using R-454B to replace R-410A in AC systems. R-410A is a blend of R-32 and R-125 (a fire suppressant with very high global warming potential or GWP).

R-454B is a blend of R-32 and HFO1234yf (auto refrigerant). Commercial refrigeration systems are using R-448A, R-449A, and R-452A. Chillers will transition to R-513A, R-1233zd(E), R-514B, and R-1234ze(E)) Walker: After our extensive research and consideration, the Daikin, Goodman and Amana Brands have endorsed R-32 as the next generation refrigerant. In evaluating R-32, we took a really holistic approach that includes safety, energy efficiency, cost effectiveness for our products.

And an important part of considering R-32, it’s actually not new to the industry.

It’s become pretty much the de facto standard, globally, to replace R-410A. Molina: R-32 has an excellent balance of cost, performance, and low environmental impact. As performance is a key driver for many equipment manufacturers, OEMs can potentially see efficiency gains of up to 10 percent, and capacity increases by up to 10 percent versus R-410A. R-32 also reduces the environmental impact with a GWP of 675, 68 percent lower than R-410A. Because of these attributes and global use, it has the potential to be the number one choice for R-410A replacement in the U.S. and Canada, as it has become in Asia, Europe and Australia.

Nolte: With a GWP of 466, which is about one fifth of R-410A, Carrier has selected R-454B based on the balance of environmental impact, safety, performance and longevity. Having that low GWP extends out that life cycle of the product phase downs.

Are there safety concerns with either of these refrigerants?

Walter-Terrinoni: As shown through more than $7 million of research in the US alone, A2L refrigerants are not typical flammable gases like hydrocarbons such as propane, acetylene, and hydrogen. A2Ls are difficult to ignite. They require an open flame or a very high energy source.

Common household items like a toaster or heater insert or even sparks from grinding inset won’t ignite an A2L as shown AHRTI project 8017. Non-sparking tools won’t be needed for A2L refrigerants. It will be important for technicians to participate in training over the next few years as a reminder of the properties of current refrigerants as well as understanding how to work with new refrigerants safely.

Nolte: People probably get alerted to by the fact that it’s mildly flammable.

There’s going be a lot of focus on, obviously, training and safe handling and so forth.

It may seem, when someone first hears that, a little daunting. But there’s going to be a lot of procedures and safeties and identification in place.

Galyen: As with any refrigerant, training and safety guidelines will be important for contractors with the introduction of A2Ls. Davis: There’ll be new requirements that HVACR professionals will need to be aware of, that they need to follow. It’s not just business as usual. To my knowledge, at this time, the requirements would look a lot like they do for transporting A-2 refrigerants or A-2 classified compounds.

They’re a little more strict, are to be transported vertically instead of horizontally, and there’s some quantity limits that start to become imposed. That’s still being ironed out.

Molina: HVACR technicians will need training on A2L type refrigerants like R-32 as they become more common in the near future. The good news is many organizations, such as ACCA, AHRI and OEMs, are putting together training manuals now to ease this transition.

Walker: Regardless of whether the question is about a low GWP refrigerant, like R-32, or an existing refrigerant, like R-410A, technicians should always be properly trained for both the equipment and the refrigerant. Having said that, continued on page 12

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continued from page 11

It’s important for all stakeholders to start becoming familiar with the next generation of refrigerants in the near-term and be prepared for training for technicians over the next few years.

R-32 has been safely deployed in actually over 117 million units around the world already.

What’s the biggest concern related to these A2L refrigerants?

Molina: The unfamiliarity of A2L refrigerants is the biggest challenge for contractors. The main concern with A1 refrigerants is pressure. Contractors typically understand pressure and the procedure for either working on a system or storing of refrigerant cylinders. A2L refrigerants have similar pressures as A1, but additional training will be needed in order to familiarize technicians with the flammability aspects. Fortunately, this transition can be easier for technicians familiar with brazing equipment, where they are already working with flammable pressurized gases and also by relying on the experience of other countries/regions where A2L refrigerants have been widely and safely adopted.

Ayers: Flammable refrigerants that are considered a flammable gas under the fire code will be new. We are currently going through the process of trying to update the international fire code to allow larger storage of these lower flammability gases.

The current fire code does not differentiate between high flammability and low flammability gases.

Davis: We developed some training based on the standards that Washington state adopted, which was ASHRAE standard 15, the 2019 version, so that we could explain what those requirements were.

And we explained the current Department of Transportation requirements as we know them now for that market, so they could be prepared when this new regulation, this new provision goes into effect.

Galyen: Getting the codes and standards updated and training for contractors. There is high focus and attention on the individual component qualification to ensure they perform well in the application and will be reliable over time. Globally Danfoss has extensive experience and refrigerant experts so we can help our customers prepare for the transition through education — not only for our customers but for regulators and code officials.

Tucker: The biggest concerns for the contractors is making sure they can properly educate their customers and answer the questions and any possible objections. And the flammability issue is one

example. A responsible contractor isn’t going to waive away customer’s concerns, but they’ll put what the customer may have heard about these refrigerants in context.

They’ll want clear information and guidance from manufacturers so they can credibly engage their customers.

Walker: Some contractors may have some concerns about handling and working with this type of refrigerant. But it’s worth noting that technicians have similar fears when changing from R-22 to R-410A. Because of the increase in operating pressure, there was some trepidation out there. But despite worries, the industry managed. I think that transitioned very well.

What kind of training is available?

Walter-Terrinoni: Some OEMs have started training technicians. Other organizations have also developed training. The ESCO Group, for example, will have a program available after the first of the year by e-learning and print; there will be a closed-book exam required

for certification.

Davis: ACCA has a training program.

It is a good introduction to A2L refrigerants. The requirements in our training focus on charges of less than 6.6 pounds.

And that’s important because above that, it invokes these rules for room size and other things. We try to keep it very simple so that the contractors could become informed of the differences, maybe brush up on some of the safety aspects that they’re going to need to take a little more care with this refrigerant.

Galyen: Contractors are going to have to rely a lot on the large system OEMs, several offer trainings around the new refrigerants in application for installation as well as for service. And then there’s independent entities that have some level of training, such as North American Technician Excellence (NATE).

LaPietra: Honeywell offers a good online selection of publications and video to assist contractors. In addition, our sales and technical marketing teams hold face to face training for contractors and wholesale customers on request. Honeywell proudly sponsors RSES and HVAC training Excellence efforts as well as hosting Regional training days throughout the year.

Ayers: Training will most likely require some form of certification similar to the current 608 program that we use from

Executive Rountable Panel

Alex Ayers

Wes Davis

John Galyen

Chris LaPietra

Rene Molina

HARDI

ACCA

Danfoss North America

Honeywell Stationary Refrigerants

Arkema

Todd Nolte

Carrier

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HVACR BUSINESS JANUARY 2021

Doug Tucker

Nathan Walker

Helen Walter-Terrinoni

Mitsubishi Electric US

Goodman Manufacturing

AHRI

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EPA. With that certification is going to just be new requirements that contractors are certified to use the new refrigerants.

And then as those certifications happen, you’ll see distributors then start to stock the equipment. It doesn’t do you any good to have equipment in your warehouse if you don’t have a customer that can buy it. For that reason, distributors will work with trainers to make sure training is available to their customers. You can’t sell the equipment until you have people trained and people won’t train until there’s equipment to buy.

Tucker: We have a really significant number of training facilities across the U.S. They’re all specific to our equipment, and when we transition and use these newer refrigerants, we will have in place training for distributors and contractors.

What kind of management strategy should contractors employ?

Molina: First and foremost, A2L training will need to be completed by all the technicians employed by the respective contracting company. In addition, a key strategy will be the proper planning for storage of A2L refrigerant, with the appropriate safety features, which should be defined by local code officials. Contractors might look at the quantity they typically purchase and identify any requirements.

Davis: For the professional contractor who is informed, and is aware, and is prepared … they’ve got procedures to charge for labor, procedures to charge for the equipment, and all of the administrative overhead things that go into it … I don’t see this as a big deal with it.

Galyen: Because there are many different alternatives (in addition to R-32 and R-454B), I’m a little anxious about the impact to contractors, to be honest, because they’re going to have to service legacy refrigerants. They’re going to have to service the refrigerants for today and what those are going to be in the future. I see them having a separate trailer with nothing but different colored cylinders of refrigerant in the back of it because that’s what they’re going to need for their everyday work.

Nolte: We’ve been communicating to our contractors, when we have dealer meetings and events, to get ahead of it, what is coming, what is the change in the regulation and what does the Montreal Protocol and the Kigali Agreement all mean for the industry. We’ve also

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The refrigerant change represents an opportunity. And there are several benefits of R-32 that other countries already enjoy and we soon will be able to as well. foreshadowed the fact that there will be an A2L, and an A2L is mildly flammable and so forth. We’re trying to get them as much education as possible … we don’t have all the answers yet on exactly how it’s going to affect their business, but those are all being worked on.

Walker: Availability, cost effectiveness and lifetime efficiency are three key considerations. It’s important to provide consumers access to available and affordable solutions for their homes and businesses.

And R-32 is widely available, manufactured by numerous refrigerant producers and distributed globally.

Walter-Terrinoni: It’s important for all stakeholders to start becoming familiar with the next generation of refrigerants in the near-term and be prepared for training for technicians over the next few years.

There will be an increased need to recover and reuse reclaimed refrigerants during this transition.

LaPietra: Contractors should be aware of what can and can’t be used for retrofit, especially with flammable refrigerants.

With R-466A, which is intended for new equipment only at this stage, we are working to allow for retrofits, which would be a game changer since A2Ls cannot be retrofitted into current systems. Because of its non-flammability and close performance to R-410A, we could introduce a retrofit where we replace the condensing unit only. Like other new refrigerants, retrofitting needs further evaluation as it also depends on the installed base, which can vary significantly.

What should contractors pay attention to with this issue?

Ayers: The biggest thing for them is knowing the timing. I think that’s a big open question for most people in the industry. Outside of California, there is no requirement for a transition on equipment. And so it’s going to be a big question of, when is this transition going to happen?

Molina: In the U.S., the transition will take place over a multi-year timeframe.

Codes will need to be adopted, and local

jurisdictions will need to publish exactly what they require. This should allow for enough training and timely information flow from the OEMs, to the distributor, and, finally, to the contractor over time.

Galyen: My recommendation is that (contractors) stay close to this issue because a lot of the decisions are starting to be made and maybe not through individual contractor involvement. They should be engaged in associations and stay involved in decisions with the distributors and with OEMs. LaPietra: At this point, most of the attention is at the OEM level. This is mainly due to safety issues with A2Ls. Nolte: Potentially, it’s pretty far on the distance, even if we think of California now being really four years out at this point. I think they’re engaged and know that there’s something coming, but I don’t know if they understand and have all the awareness around all the implications and the changes. Having this discussion now, and when contractors read this information, that’s going to give them more information and start thinking about what type of questions they might have and how they are going to handle it within their businesses.

Tucker: We see some that are still mourning the transition away from R-22 to R-410A, so this may be coming as a big surprise to them when we transition to the newer refrigerants, particularly if they have any flammability characteristics. It is not too early for them to be concerned, there’s been plenty of discussion about this so if they’ve been paying attention, they will understand what’s happening. It may seem like 2024, 25, 26, that’s a long time away, but in terms of preparation, it would be good for distributors and contractors alike to understand these refrigerants.

Walker: We actually recently surveyed contractors and we found that many contractors were either not aware of a pending transition or not really well-educated on the specifics and how it may affect them in their business. I certainly believe more attention and education are needed. Right now, there are some really good opportunities through industry associations.

What are the biggest benefits to A2L refrigerants?

Tucker: The refrigerant change represents an opportunity. And there are several benefits of R-32 that other countries already enjoy and we soon will be able to as well. Product efficiency, lower charge levels, not to mention the lower GWP … these are things the U.S. should be moving towards. And we’re glad to see it moving that way.

Davis: If we move toward more and more efficient, natural refrigerants that do have a higher flammability rating, then this is a good first step in that direction.

We’re dealing with a refrigerant that has a lower flammability rating, but it’s a safe product when it’s installed right

Is there an increase in equipment efficiency with low GWP refrigerants?

Galyen: Most of the efficiency of a system is built into the system design. It depends on what compressor, heat exchangers, airflow, type of expansion device …all of those things add up to determine the efficiency of the system. Refrigerant, in this case, is not going to take us a step backwards, it should be taking us a step forward.

Tucker: Designing new equipment, regardless of refrigerant, and also considering the characteristics of a new refrigerant, we’re going to gain efficiencies regardless. It’s been shown in our equipment that R-32 is slightly more efficient than R-410A, and it also reduces the amount of charge size you need and increases the volumetric capacity at the root of the system.

Walker: Think about it this way, depending on how electricity is generated in a given region, higher efficiency equipment can help reduce the CO2 emissions of the system by using less electricity.

Therefore, efficiency is going to be critical for choosing the right refrigerant for a given application. u

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

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LEVERAGE THE TALENT OF YOUR EMPLOYEES

Even the most unlikely person can be successful if given the right direction, training and motivation.

BY ERICA LEONOR

I

am an anthropologist, which means I love to learn about different people and cultures. For eight years of my life, I lived out of two suitcases as I moved around the world, participating in and studying different lifestyles, cultures and societies.

From attending international universities and learning different languages, to starting English programs at elementary schools and providing humanitarian services to refugees, I hustled to find opportunities to travel and see the world.

Because of my travels, I was frequently recruited to facilitate cultural awareness trainings and presentations for different organizations to help enlighten their

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Every single person that works for you has different talents, abilities and skills that would benefit your organization. employees on how to be more sensitive to and understanding of those from different parts of the world.

I loved sharing with others all of the unique and intricate aspects of the different cultures and countries I spent time with. Aside from all the fun adventures, friends and knowledge that traveling the world has brought me, I had a deeper hope that through sharing my experiences,

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I could be a bridge that would connect people from all different walks of life.

I wanted humanity to be more patient with each other, more understanding, more accepting and less judgmental of those who are different. I still want this today.

So, how did I end up working in the trades? A girl that didn’t even know how to work a thermostat, use a plunger or

know what HVAC even stood for? And what does this have to do with leveraging the talent of your employees?

First off, just because I didn’t grow up in the trades or have any technical knowledge whatsoever does not mean I wouldn’t thrive in this industry. I now train contracting companies all over the United States, Canada and Australia on customer service, sales and the employee experience (and, I’m happy to say, I’m learning quite a bit of technical knowledge along the way).

I serve on the Board of Directors for Women in HVACR. I speak at different conferences and tradeshows and even write articles for trade publications like this. WHAT? Me? An anthropologist?

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Who’da thought.

I’m not trying to toot my own horn.

What I’m trying to illustrate is that even the most unlikely person can be successful if given the right direction, training and motivation. Somebody took a chance on me. Somebody gave me an opportunity to apply the skills and experiences that I have had to a new industry and was willing to teach me along the way.

As a business owner and entrepreneur, you may have the vision of what needs to happen and where you want to go, but you can’t make it a reality alone.

I am continually supported, trusted and empowered to not only be the best version of myself that I can be, but to also make a difference for others. I love what I get to do! Power Selling Pros has not only helped me apply the talents, skills and personality that I already had to customer service and sales in the trades, they have continually helped foster my growth and learning.

People are amazing. I also know they can be frustrating to work with at times.

And maybe you or I are even frustrating to work with too. Nobody is perfect. And that is okay. But may we all have a little more patience, a lot more compassion, a stronger discipline and a greater desire to serve the people around us.

LEVERAGE TALENT

Of course, you want employees who have natural grit, positive attitudes and great work ethic. But people have to enjoy what they do as well. And for your employees to enjoy what they do, you have to design a great place to work. It is vital they enjoy their jobs, believe in your brand promise and have a common purpose.

Your leadership and culture will directly affect your ability to leverage the talent of your employees.

Now it is interesting that one of the definitions of leverage is “use something to the maximum advantage.” I would ask that you do a self-check-in and make sure you are never taking advantage of your employees.

Being taken advantage of is one of the biggest reasons why people leave and go work for someone else. Here are some ways that employees have expressed to me how they feel taken advantage of in the workplace: • Frequently staying late after everyone else has gone home • Lack of recognition, appreciation and praise

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2. Be creative and think outside of the box. How could you leverage the talents of a photographer? A high school football star? An HOA board member? A baker? A movie buff ? Everyone has a past, a hobby and interests. Just because they answer phones or run maintenance calls doesn’t mean there are no other projects or tasks that they can become involved in. Find creative ways that you can involve your people in the growth of your company.

3. Provide consistent training. I would highly encourage you to have a training plan — a calendar of sorts — that you follow to invest in your employees and help them grow. The more you support the development of their skills, the more they will give you their all.

And with my background in culture, I also work with different companies like yourself on designing a great company culture.

You can do the same thing with your employees. Every single person that works for you has different talents, abilities and skills that would benefit your organization. You’ve all heard “hire for personality and then train on skills.”

person to analyze their growth path.

• Constantly being handed more work without being given the OK, especially when those assignments are not in line with their job description • Not being well compensated (whether it’s hourly rate or bonuses) • Not having regular breaks during work and lack of time off So, when we’re talking about leveraging, we are not talking about taking advantage of another person. What we are talking about is empowering your team to discover, utilize and apply their talents for the good of themselves, those they work with and for their customers.

TALENT & SKILL I also want to unpack the definitions of two additional words: • Talent: natural aptitude or skill • Skill: The ability to do something well, expertise As you can see, talent and skill go hand in hand. We are all born with different natural gifts and talents which is wonderful.

We don’t need or want everyone to be the same or robotic. But just because we don’t have a natural talent for something doesn’t mean it will never be a talent.

If I want to be good at something, I have to practice it, sometimes over and over and over again. All of my skills can become talents if I apply myself, work hard, get training and stay consistent.

So, don’t worry if one of your employees is not naturally talented at something.

If they have a strong background, good experiences and a cheerful disposition, you can teach them skills and habits. Sooner or later, these skills and habits will become talents. And when we are good at something, we want to keep doing it over and over again.

EMPOWER YOUR TEAM Here are a few steps I believe will help you empower your employees, train them on skills and watch them thrive using their talents.

As a business owner and entrepreneur, you may have the vision of what needs to happen and where you want to go, but you can’t make it a reality alone. As you learn more about your people, invest in their growth, you’ll find more and more opportunities to leverage those talents for the good of all. Remember, your company culture is simply the promise you make about how you are all going to treat each other. u

Erica Leonor is an executive trainer for Power Selling Pros. She can be reached at erica@powersellingpros.com. For additional information, visit powersellingpros.com.

1. Have frequent one-on-ones with your employees to learn about them.

It must be frequent and consistent if you are ever going to build enough trust for them to actually confide in you what they want to do and the skills they have. Don’t just bring them into the office one day and say, “Where do you want to be in 5 years?”

This kind of topic needs to be thought out and could take weeks, even months, for a

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COMMISSIONING IS KEY

TO UNDERSTANDING RETRO-COMMISSIONING

Buildings evolve over time and, in today’s COVID-19 environment, retro-commissioning is more important than ever.

BY MARTY INDURSKY

I

t was Dr. Albert Einstein who said, “if you can’t explain it simply, you don’t understand it well enough.”

With this in mind, let us try to demystify HVACR retro-commissioning.

Commissioning and recommissioning other computer building systems — such as fire protection and alarms, emergency power and electrical systems — can and should follow a similar protocol. None of these systems will be discussed, other than to maintain that any other life safety devices that integrate with HVACR systems require special attention.

To understand retro-commissioning, let’s review commissioning on a new project.

Mr. Jones has purchased a property to

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For the commissioning process to be successful it is vital that the engineer, contractor and commissioning agent establish a working relationship as soon as possible. build a new office building for his expanding business. Mr. Jones then hires an architect and relies on the architect to contract out the mechanical, electrical and plumbing engineering. The engineer designs an HVACR system consisting of: • Gas-fired, packaged rooftop units with a BACnet interface.

• Variable Air Volume (VAV) boxes with electric heating coils to create zone controls.

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• A sheet metal duct system for air distribution.

• A Digital Controls (DDC) System to regulate VAV boxes and integrate the needs of various zones and communicate with the rooftop equipment.

Fast forward a year and the complex construction project has moved along. A vacant lot has now transformed into an elegant piece of architecture that Mr. Jones can happily move his entire office staff into.

WAIT. NOT SO FAST Yes, the building looks terrific, however, without indoor comfort and ventilation Mr. Jones’s feelings of pride and joy could easily turn into frustration and anger, eventually leaving him no alternative but to call his cousin Mr. Smith of Smith, Brown and Green Legal Firm to begin an endless process of litigation.

COMMISSIONING Let’s pull back the curtain and see how to avoid the process.

Before turning the building over to Mr. Jones, the HVACR contractor sent his start-up technicians to the job site. They carefully followed the manufacturer’s instructions and checked each function of the rooftop equipment, including heating,

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cooling, ventilation modes, safety and operating controls, belts, filters, direction of rotation all checked and verified and documented.

Now, it was time for the control department to get in there. All VAV boxes checked, as is the position of outside air dampers, economizer section operation, duct pressure controls, etc.

Retro-commissioning will resolve evolving issues by following a protocol as described in the commissioning process.

Before the mechanical contractor leaves the project as directed by contract, he hires an independent third-party balancing contractor to verify all air flows meet the engineer’s requirements.

The contractor has now finished his work … well, almost. Before the project started, Mr. Jones and the architect made the decision to employ the services of a third-party commissioning agent to assure Mr. Jones the entire HVACR system has been installed as required in the contract.

Each MEP engineer more than likely will have their own version of what this process should include. Generally, the process could follow this scope: • Validate that each piece of equipment is installed in accordance with plan specifications and approved submittals.

• Field verify all equipment installed complies with plans, specifications and approved submittals.

• Carefully document all data.

• Validate and check all HVACR infrastructure including piping and ductwork.

• Checking and assuring such things as pipe and duct supports, sizing accuracy, duct joints, insulation, vibration elimination devices, condensate drains and traps (this list can be expansive).

• Review and validate all HVACR contractor documentation pertaining to equipment startup to assure that manufacturing recommendations have been documented and complied with.

The commissioning agent must now go to work with the control installation personnel to assure all sensors are properly tagged and calibrated. The agent will also put the systems through all aspects of the sequence of operation.

This part of the process is often the most difficult and important as it will expose any issues pertaining to the integration and communication of various technologies. Any mistakes on the engineering,

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• Minimize or eliminate the use of building in-house staff to monitor HVACR issues.

If that is not enough in today’s world, I don’t know what is.

Over time, many buildings properly commissioned and maintained may still suffer from the same ailments as buildings never commissioned.

WHY IT’S IMPORTANT In today’s COVID-19 environment, retro-commissioning a building is more important than ever. Buildings that have been commissioned previously have the advantage of a strong documentation trail.

programming or possibly architectural changes that were missed will now surface and can be corrected.

SOME IMPORTANT NOTES For the commissioning process to be successful it is vital that the engineer, contractor and commissioning agent establish a working relationship as soon as possible.

With good communication, trust and respect there should be few surprises and the commissioning process will be smooth and seamless.

• It assures the owner that occupants are receiving the proper ventilation.

Let’s go forward and see what happens down the road. I think it’s reasonable to assume that a large percentage of existing buildings have never been commissioned (I know of no valid statistics on the subject).

Now, let’s compound the problem as time goes on … more likely than not a building evolves and changes.

• Partitions are moved

In many projects the design team may have opted to bring on an HVACR contractor early in the process to fulfill both engineering and installment roles. While this method may require some structural changes, it should not eliminate this vital commissioning process.

• HVACR units are replaced

The owner, architect and design build firm should agree that either the contractor or a third party will be used for commissioning. It still remains essential that the process be performed.

• Computer loads may vary

RETRO-COMMISSIONING Now that we are all on the same page and can agree on the basic requirements of commissioning, let’s discuss “retrocommissioning.” What are the benefits to building owners for commissioning an occupied building?

The commissioning of a new building as discussed above has several benefits:

• Occupancy density may increase or decrease • Lighting wattage may be upgraded to L.E.D. significantly reducing HVACR requirements • Branch ducts may be disconnected from air outlets • Outside air dampers may no longer operate as intended

As to who is best to retro-commission a building? There are firms that specialize in this process, many engineering firms are also engaged in doing retro-commissioning as are HVACR service companies.

Many existing buildings have already had lighting upgraded to L.E.D. lighting, in those cases it is likely that HVACR has not been modified to accommodate this modification. If so, this is an enormous opportunity for the retro-commissioning provider to further reduce building energy costs by reconfiguring the HVACR system to accommodate the lower wattage requirements of the lighting with the added benefits of decreasing summertime space relative humidity.

If no lighting upgrade has been done then now is the time.

Assuring proper air ventilation, possibly adding better filtration and other air cleaning devices must also be presented to building management.

Finally, and perhaps most important, this process will be kinder to the environment and contribute to the health and well-being of our planet. u

• Exhaust fans may not be on an occupancy schedule • The controls system may be obsolete or worse, not functioning Retro-commissioning will resolve these issues by following a protocol as described in the commissioning process. The final result will be:

• It assures the owner he got what he paid for.

• Reduced operating costs

• It assures the owner his building is operating at full efficiency and reduced operating costs.

• Better comfort

Marty Indursky founded ENCON in 1968.

Today, the company is an award-winning, innovative building environment solutions company. The business that started with a single humidifier installation has built a legacy of trust, client care, collaboration, safety and industry leadership. For additional information, visit enconmech.com.

• Extended life of HVACR equipment • Better air quality for occupants

HVACR BUSINESS JANUARY 2021

17

FINANCE

BY RUTH KING

Wealth Rule No. 8: Have a Sound Inventory Policy

N

ote: This wealth rule uses trailing data. Trailing data produces the long-term trends for your company. It looks at a year’s worth of numbers a month at a time.

Inventory tracking is key to a sound cash policy. You don’t want to spend cash you don’t need to spend.

The inventory days are calculated from the inventory turns. The days trends are what you need to watch each month.

For example, if you want to determine trailing revenue for January 2021, add the revenue from February 2020 through January 2021 and divide that result by 12.

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The figures below show the monthly calculations and the trailing data points for these ratios.

You can’t really tell what is happening with inventory on the monthly graph, however, the trailing data tells the story.

The trailing data graph for this client shows what happens when you don’t pay attention to inventory. Inventory days were increasing significantly which is trending the wrong way.

Monthly Usage Ratios 60.00

50.00

40.00

Days

30.00

AR Days Inv Days

20.00

calculated on annualized costs.

Calculate this ratio by using both the profit and loss statement and the balance sheet: Annualized Cost of Goods Sold Inventory Then the inventory days calculation is:

HVACR BUSINESS JANUARY 2021

365 Turns

May 19

Jan 19

Mar 19

Nov 18

Jul 18

Sep 18

May 18

Jan 18

Mar 18

Nov 17

Jul 17

Sep 17

May 17

Jan 17

Mar 17

Nov 16

Jul 16

Sep 16

May 16

Jan 16

Mar 16

Nov 15

Jul 15

Sep 15

May 15

0.00

Jan 15

10.00

Mar 15

If you want trailing to determine revenue for February 2021, add the revenue from March 2020 through February 2021 and divide that result by 12.

Looking at the January and February 2021 trailing data points gives you a trend.

Is the graph increasing or decreasing? If it is increasing then sales are increasing on a long-term basis.

For inventory days, if the trailing data is increasing you are adding inventory. Find out why. Inventory days should be steady or decreasing.

Trailing data can be calculated for any metric you wish to track.

This wealth rule and the next two, track trailing current ratio, inventory days, receivable days and debt ratios.

The graphs show the trends of each metric and will be explained in the appropriate wealth rule.

Now onto Wealth Rule No. 8.

Inventory is a bet (yes, I’ve written these words before). Inventory tracking is key to a sound cash policy. You don’t want to spend cash you don’t need to spend.

The best ways to track inventory is to make sure it changes monthly on your balance sheet and monitor inventory days.

If your company does not have inventory, then you do not calculate the ratios described below.

Inventory days is the number of days between the time a part is purchased to the time it is used to create a product or provide a service. Inventory turns are

the installation. Part plus labor. Those are the major components of cost of goods sold and that is why I use cost of goods sold rather than material expense to calculate this ratio.

For those of you who have studied inventory days in a classroom, you’ll notice that I use cost of goods sold rather than material expense to calculate this ratio. My reasoning is that, unlike suppliers/distributors, as contractors we cannot sell a part without installing it.

Selling a condenser fan motor means including the labor to install it and making sure the system is running properly after

The company owner was not keeping track of inventory until the company got into a cash crunch. Then the owner tightened up the warehouse, hired a responsible inventory manager and started tracking inventory. Inventory then decreased significantly and remains stable now on a long-term basis which means that the company is efficiently using inventory.

Beware! An inventory increase of five days is significant because your company has an additional week of inventory. Find out why.

A sound inventory policy means tracking inventory days and making sure they are consistent. 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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SUCCESSION PLANNING

PROVIDED BY KEVEN PRATHER, CFBS

Successful Planning Starts Much Earlier Than You Think

M

any business owners believe they have plenty of time to create a successful plan for the future of their businesses. Most commonly, owners think that if they give themselves a few years, they can transform their businesses into whatever they need them to be: whether that means bigger, more valuable, or more easily sold/transferred.

your wishes or find it difficult to achieve your goals at all.

Beginning your planning long before you intend to leave your business often lets you choose the conditions of your exit.

INSTALL VALUE DRIVERS Value Drivers are things that increase the value of your business to an objective buyer. For example, regardless of whether you intend to sell your business to a third party or transfer it to an insider (e.g., family), the new owner will likely expect your business to run smoothly without you.

And while each business is different and each owner has different goals, one thing is clear: You likely need to start your planning earlier than you think.

If it doesn’t, you may be expected to stay in your business until the business can run without you. One Value Driver that can address this threat is a next-level management team. A next-level management team, by definition, allows the business to run smoothly without its owner.

Beginning your planning long before you intend to leave your business often lets you choose the conditions of your exit. For example, let’s say that one day, you’d like to sell your business for as much money as possible.

To do so, you must know what your current business value is. You must know which factors give your business its value. You must know what the market for a business like yours is and anticipate any flaws potential buyers might find during due diligence.

The same concept is true if you hope to transfer your business to family members or employees. You’ll likely need to determine whether your targeted successors can successfully run the business, along with whether they are even interested in ownership.

You may need to construct plans to keep key employees with the company as and after you exit it. You’ll probably want to determine how long it will take for your successors — who are unlikely to have much money — to cash you out for your share of ownership.

If you wait only until you are ready to exit the business to figure these things out, you may not give yourself enough time to address any issues your business may have.

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This can prolong the time you’re in your business, which can lead to poor performances or burn out. There are many things to consider, but we recommend a threestep process to begin.

SET YOUR GOALS Setting your goals long before you’re ready to implement plans gives you a target to aim at. The most important goal to set is achieving financial security. Unless you know what it will take for you to leave your business and never have to work again (unless you choose to), all of the other details surrounding your planning become moot.

Once you’ve determined how much you’ll need to achieve financial security, you can decide when you’d like to leave the business, how much money you want (not need) after you leave, and to whom you’d

like to leave it (e.g., an outside third party or an inside management team).

ACCOUNT FOR YOUR RESOURCES Knowing what you currently have makes it much easier to determine what you will eventually need. Consider accounting for all of your resources, including the value of your business and any non-business assets. Many owners have a general idea about the resources they have, but when planning for future success, general ideas often aren’t precise enough.

Accounting for your resources with precision provides time for you to close any gaps between the resources you have and the resources you need. If you wait only until you’re ready to implement plans to start accounting for your resources, you may prolong the planning process beyond

Another important Value Driver is a documented process for sustaining cash flow. Documentation allows new owners, managers, and key employees to maintain the company’s profits after you’ve left.

Without written and easily understood processes, cash flow can become a game of chance, and few buyers want to take chances when buying a business.

If you’d like to talk about when the right time to start planning for you is, please contact us today. Based on your goals and resources, you can begin to create a road map for the business future you desire. 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.

HVACR BUSINESS JANUARY 2021

19

PRODUCT FOCUS »

INTRODUCING THE 2021 INNOVATION AWARD WINNERS! The AHR Expo Show Management, co-sponsors ASHRAE and AHRI and the Innovation Awards panel of judges wish to acknowledge and honor the 2021 award winners despite the recent cancellation of the live event.

Submissions in 10 industry categories were collected over the summer and then reviewed by a panel of third-party judges made up of distinguished ASHRAE members. Entrants are evaluated based on overall innovative design, creativity of the product or service offered, application, as well as potential market impact.

BUILDING AUTOMATION

COOLING

Infinitum Electric’s IEq is an alternative solution to replace 30-year-old insulated gate bipolar transistors (IGBTs) based VFDs. The high-efficiency silicon carbide (SiC) VFD offers a smaller, smarter, cooler and more efficient motor controller with integrated IoT capabilities in one single unit. Introduction of VFDs allowed both commercial and industrial applications the ability to vary the speeds of fan, pump or compressor applications. Infinitum’s new Silicon Carbide IEq delivers the latest stepchange improvements to motor control efficiency, size and packaging enabling OEMs and End-Users to deploy the technology in more varied environments.

The Copeland ZPK7 scroll compressor developed by Emerson is the most efficient fixed speed compressor ever produced in the 100-year history of Copeland. The innovative next-gen Copeland compressor, now in its 7th generation, is available in 1.5-5 ton and can be applied in both residential and commercial applications. It supports the industry with optimized efficiency by providing up to 5 percent efficiency improvement at the SEER2 B rating point condition and key HSPF2 part load operation conditions. The compressors are optimized for use with R410A refrigerant, but will also offer a lineup optimized for low GWP refrigerants, such as R32 and R454B.

>> infinitumelectric.com

>> climate.emerson.com

GREEN BUILDING

HEATING

INDOOR AIR QUALITY

PLUMBING

Advanced Cooling Technologies’ Pump Assisted AAHX recovers energy from either the exhaust or supply air stream during all seasons, allowing AHUs to consume less energy. It works by combining traditional air-to-air heat pipe technology with pumped two-phase systems that take advantage of both operational modes. In passive mode, which activates when the warmer air stream is physically below the cooler air stream, the heat exchanger operates as a heat pipe with no electrical input required.

When the seasons change and the relative temperature of the two air streams is reversed, a small pump is utilized to maintain the transfer of energy.

Viega’s Radiant Auto-Balancing System (RABS) introduces the ability to monitor the temperature of every return circuit in a radiant system. Coupled with the monitoring of each zone’s air temperature via wireless thermostats, the control actuates flow of conditioned water to each loop using a learning algorithm to increase the efficiency of a radiant installation. Circuit lengths no longer need to be designed to be similar lengths or manually balanced using flow controls on the manifold. The system maintains set temperatures through changes in these variables without user input, giving designers more flexibility without loss of efficiency.

Des Champs Technologies Series PLP Air-Trap offers a new concept in condensate trap design that permits condensate removal from AC or other condensing equipment while blocking airflow all year and requires only 2 7/8” height for positive 0-40” WC pressure. The trap can never “dry out” or freeze because it does not depend on water to seal, only fan pressure. The innovative PLP trap is the first AC condensate trap to use air pressure developed by the AC fans to prevent conditioned air from entering or leaving the unit. For a hundred years the P-Trap, a carryover from use on toilets and sinks, has been used on AC equipment to prevent air loss.

The Caleffi AngleMix 520 series thermostatic mixing valve accurately controls mixed water temperature in residential and commercial domestic hot water systems. It is the industry’s only thermostatic mixing valve with an angle-styled body.

This geometry minimizes the number of elbows required which reduces overall installation cost. Additionally, AngleMix can close off its hot and cold ports at 100 percent tightness, preventing temperature creep or droop. The innovative Caleffi AngleMix 520 series easily mounts at the tank-type or tankless type water heater outlet and the angle-style body mixed temperature outlet is in line with the water heater outlet.

>> 1-act.com

>> viega.us

>> deschampstechnologies.com

>> caleffi.com

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HVACR BUSINESS JANUARY 2021

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REFRIGERATION

SOFTWARE

TOOLS & INSTRUMENTS

VENTILATION

Officine Mario Dorin Spa’s CD600 Range is the largest CO2 transcritical compressor platform available worldwide. The CD600 Range features UL and CSA approvals. Based on a 6 cylinders design, this platform includes models up to 100 hp and 2200 cfh with utmost efficiency levels and premium reliability standards. This new range of compressor is unique in the market because it nearly doubles the refrigeration duty deliverable with a single compressor. This often leads to a lower number of refrigeration racks and allows for a smaller required footprint for machinery.

What’s more, the limited footprint and height allow for a decrease in installation and building costs when compared to an ammonia solution.

The Willdan NEO Net Energy Optimizer is a SaaS platform that provides customized, real-time energy and financial ROI analyses in seconds. The energy modeling software streamlines whole building analyses of HVAC systems and energy conservation measures for commercial buildings with the versatility to support product comparisons, existing building energy audits and new construction from early design through construction. NEO uses default inputs from vetted industry standards to automate the modeling process. NEO supports 40+ commercial building types and 250+ operational and capital improvement measures coupled with automated ASHRAE Standard 90.1 and IECC baselines.

INFICON’s D-TEK 3 Refrigerant Leak Detector is the latest in a line of time-saving service tools for HVAC/R. This leak detector provides industry-leading sensitivity to find the smallest leaks for all common refrigerants, maximum uptime from its long-life, quick charging lithium-ion battery and unmatched versatility from the ability to use multiple sensors. D-TEK 3 is designed to use INFICON’s next generation infrared sensors, allowing it to search for leaks from classic refrigerants, CO2 and flammable refrigerants with just a quick sensor change. For even more versatility, D-TEK 3 is equipped with 4 sensitivity levels to help search for different leak sizes and two operating modes.

The CAR3 constant airflow regulators

by Aldes feature a state-of-the-art design with industry exclusive dual-side airflow adjustability and greater airflow ranges for a variety of applications. The patent pending airflow technology allows you to set or change the airflow quickly, in supply or exhaust applications, without removing the CAR3 from the duct. The technology is capable of maintaining constant airflow within +/-10 percent of the scheduled flow rates, within the operating range of 0.12 to 1.2 in. w.g. differential pressure for low-pressure models (CAR3-L) or 0.4 to 2.8 in. w.g. with high-pressure models (CAR3-H).

CAR3 solely operates on duct pressure and requires no external power supply or sensors.

>> dorin.com

>> wildan.com

www.hvacrbusiness.com

>> inficon.com

>> aldes.us

HVACR BUSINESS JANUARY 2021

21

20QUESTIONS

>> with DAN FOLEY

We sat down with Dan Foley, owner and president of Foley Mechanical in Lorton, Va. Foley discussed his unlikely path into the industry, learning from skilled craftsmen and overcoming his recent battle with COVID-19 and the effects it had on him and his business.

1. What’s your background?

9. How long before you started to grow?

2. Did you always know this is what you were going to do?

10. What kind of work do you do?

Between my junior and senior year at Virginia Tech, I worked as a parts runner and helper at a company called Arlington Heating and Air. I ended up staying there for 15 years.

When I graduated from Virginia Tech in 1988, I wasn’t sure what I was going to do. My father was in the military and I thought I was going to go into the military, but I broke my ankle before I was supposed to go for Officer Candidate School so I got pushed back a year. I didn’t want to wait, so I stayed at Arlington Heating and Air.

3. What did you learn there?

I had the stereotypical idea of what you call a trade — the dumb kids that couldn’t get a job so they went to auto shop, they went to wood shop in high school and went to the trades. That first summer, I worked with a technician by the name of Doug Ashwood, who’s still there at Arlington Heating. I could see he was a skilled craftsman who was smart. Even though I had a college degree and he didn’t, he was smarter than me.

4. Was it humbling?

You can’t be in this trade and be good and be stupid. You can’t smoke dope or drink or what have you. The job … you’ve got to have a clean and clear head. The stuff he figured out that first year when I was working, I realized you couldn’t be stupid in this business.

5. What else did he teach you?

I learned so much from him. I realized you’ve got to know what you’re doing. I started, again, as a helper, parts runner, then advanced helper. Then I thought I could do the job, even though I probably couldn’t. They put me into a truck and I started running my own jobs. Not complicated stuff, just change outs and stuff. And then from there I evolved into a service tech.

6. When did you start your own company?

I started out in 2002 out of the garage of my townhouse, one employee and me.

7. What was your focus then?

I thought I wanted to do design work. I loved doing design and I use AutoCAD; I use a lot of the calculation software. I thought I was going to do design work for architects, builders and maybe even other contractors.

After about two months of that with zero income, I said I need to rethink this.

8. How did you adapt?

I still had some contacts with some builders that I’d done work for through friends and family and Salesforce. So, then I went back into the contracting business in April of 2002. I figured out what I wanted to do for the next four or five months and then started Foley Mechanical.

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HVACR BUSINESS JANUARY 2021

We had five or six employees within six months and moved out of the garage and had a shop. I’ve had a highwater mark of 28, 29 employees. That was too big for us.

We’re at about 16 employees right now.

My focus has been hydronics. And by dollar volume, probably 30, maybe 40 percent of my business is the large custom homes. Luckily, I’m in an area of Washington D.C. that’s affluent. It has the clients that can afford that type of job. Service replacement is still a good part of what I do. Then there’s some remodeling work, additions, that sort for just a regular suburban type house and not the big custom homes.

11. How has the pandemic affected business?

We were going pretty strong, and then the brakes hit in March as clients just didn’t want us in the houses. No one did. It was uncertainty. Then the first week of April, I started feeling funny and I just couldn’t get out of bed.

I went and got tested and I was positive (for COVID-19).

12. What was your experience?

It knocked me out. I mean, everyone’s affected differently.

My experience was it knocked me out. I was in the hospital for seven days in early April. And even when I was released, I couldn’t get out of bed for probably two more weeks. I just had zero energy, beyond zero energy.

I felt like I boxed Mike Tyson for 12 hours and then got run over by the metro bus. I could not physically move.

And then even as I gradually got my strength back, I lost 30 pounds in three weeks.

13. Did it take long to recover?

It hit me; it threw me for a loop. So even when I was starting to feel better, I had no strength, I hadn’t eaten in a month. So, it took me awhile to get out of it. And then even into May, I was in a fog where I just couldn’t concentrate. I could work for maybe two or three hours at a time and then I had to either lay down or go home.

14. How did the business fair?

I was really concerned, because I’m the linchpin. I’ve got talented technicians but I’m the one that brings the work in. What I found out was that was not a good place to be in because none of my guys were trained to close jobs or sell jobs or bring in work. So, we had no income basically.

15. No income?

When I say no, I mean, it wasn’t flat on zero but it may have well been. It didn’t cover our expenses for two months. The expenses didn’t change but I had no revenue. When I was in the hospital, my technicians, my employees didn’t know what to do.

16. What did you do?

I told everybody to stay at home for two weeks until we figure out who’s sick, who’s not sick, what’s going on.

They didn’t know if they had it. I had worked up until the point where I got sick. I tried to power through it but I was working. So, they didn’t know whether they had it or not. They had families, kids. The right call was made, everybody stayed home. I had one technician that handled emergency calls, dispatch, direct business home.

And then I did that with emergency calls, but that doesn’t pay the bills.

17. How did you bounce back?

By June 1, financially it didn’t look good. But then the weather changed. It got hot. And so, when you don’t want technicians in your house because of COVID fears, and it’s 95 degrees and you don’t have air conditioning, guess what … you get creative. Customers would say, “Hey, we’ll leave and leave the back door unlocked, take care of it,” or “We’ll go upstairs, call us to turn the thermostat on. We’ll turn it up or down.” You can find ways to keep your distance, keep everybody safe and still do the work.

18. So June made up for April and May? June was a record-breaking month because no one let us do the work in April or May. So, when June hit and it got hot, we had two months’ worth of backlog work that we didn’t do because the clients didn’t want it done that hit.

One month made up for the previous two months.

19. Did that continue?

July was even better. August was a record-breaking month. And then what happened was, it was colder in September. But the good news is, everyone started thinking about heat. So now we’re doing boiler work in September instead of waiting till October or November.

So, we’ve done more boiler change outs over the last six weeks than I’ve done since I started my company in a sixweek span because we started early.

20. Did anyone else contract the virus?

No. A couple other guys have gotten sick. We told them to stay home until they got tested but it was just the flu.

It wasn’t COVID-19. I couldn’t believe no one else here got it. As bad as it was for me, we were lucky.

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PERFORMANCE DELIVERED

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IT’S NOT TOO EARLY TO ENTER YOUR FLEET FOR THE 2021 CONTEST

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