HVACR Business December 2019 by HVACR Business

Trust Your Team Pete Grasso 5

Expanding Your Service Area Terry Nicholson 9

Profit or Wealth? Ruth King 12

The Ductless Revolution Pete Grasso 14

HVACRBUSINESS.COM DECEMBER 2019 / VOL.14 / NO.12

RECRUIT & RETAIN WORLD CLASS TALENT

ALSO INSIDE Â» Case Study: Residential Ductless ................17 Case Study: Commercial VRF ........................20 Product Focus .............................................................21 20 Questions with Tina Pinna Owner of Master Mechanical Services ..................22

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CONTENTS

DECEMBER 2019 / VOL.14 / NO.12

F E AT U R E S

Recruit and Retain World-Class Talent The right hire can set a new standard for success in your company and guide a path to amazing growth and profitability for the rest of the team. By Todd Liles

Expanding Your Service Area: When Less is More Scheduling service calls outside your service area means accepting more consequences ... and it’s a real money loser. By Terry Nicholson

C O LU M N

D E PA R T M E N T S

Profit or Wealth? Maintenance customers are your future wealth and future profits. The more maintenance customers you have and retain, the wealthier your company is. By Ruth King

Editor’s Notebook Trust that you made the right hire and allow your team to do their job, while you focus on building your business. By Pete Grasso

Product Focus

20 Questions with Tina Pinna Owner of Master Mechanical Services in Miami, Fla.

S P E C I A L I N D U S T RY R E P O R T O N D U C T L E S S T E C H N O LO GY

Ride the Wave of the Ductless Revolution

17 18 20

Case Study: Residential Ductless

As ductless technology continues to become more mainstream, now is the time to get in on this market segment and offer additional solutions to your customers. By Pete Grasso

Business Insights: The Right Partner Makes a Difference Case Study: Commercial VRF

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EDITOR’S NOTEBOOK

BY PETE GRASSO 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 BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

ADVERTISING STAFF EAST COAST/SOUTHEAST JIM Clifford Regional Sales Manager Tel 201-362-5561 Fax 201-334-9186 jclifford@hvacrbusiness.com MIDWEST ERIC Hagerman Regional Sales Manager Tel 216-409-3246 Fax 440-731-8750 ehagerman@hvacrbusiness.com WEST COAST TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 ttanker@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©2019 by JFT Properties LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. 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 © 2019 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440-731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Fax: (440) 731-8750 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

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Trust Your Team

henever I speak with contractors about the success of their businesses, the conversation invariably turns to a larger discussion on the team they’ve assembled. Whether it’s the way they recruit talent or the things they do to keep employees active, engaged and productive, so many successful contractors have nothing but praise for their team. What impresses me most is the amount of trust these successful entrepreneurs have in the people around them. Many started as a one-man shop, doing everything themselves. As the business grew, so did the team of people around them. Those who have been most successful are the ones who are willing to let go of the day-to-day tasks and focus on the big picture of running a profitable business. No longer are you out in the field servicing equipment. You have a team of technicians for that.

to ruin productivity and leads to micromanagement. Some employees may need more guidance than others, but no one likes to be micromanaged. I read an article recently which clearly outlines how lack of trust kills productivity on ThoughtfulLeader.com. In it, the author states: Leaders who don’t trust their team will frequently monitor progress on tasks. This is normal, until it happens so often that team members start to notice. Leaders will start to spend much of their time monitoring the work of their team. Instead of letting people get on with the work, they will ask more questions and interrupt the process.

Trust that you made the right hire and allow your team to do their job, while you focus on building your business.

They simply don’t believe that their team is capable and as a result, they will spend lots of time checking and rechecking. All of these actions will make you a less effective leader. Until you learn to trust.

No longer are you handling phone calls from customers. You have CSRs for that. No longer are you handling the day-to-day recordkeeping. You have a bookkeeper for that.

Brian Stack, president of Stack Heating & Cooling in Avon, Ohio, understands this. When I spoke with him earlier this year and asked about his management style, he had this to say:

And, as you grow larger and larger, you’re not responsible for the marketing, advertising, purchasing, human resources and training. No, you have a whole team of people who are tasked with those responsibilities.

“I do not micromanage. I try and talk with and help the managers out to manage their departments. Not necessarily tell them what to do but talk with them about the situations and what their options are and let them do their own thing.”

What impresses me about the contractors I speak with is not that they’ve grown their business so much that they’re able to hire all these folks to do those jobs. No, what impresses me is that they’re able to get out of the way and trust everyone to do their jobs.

Stack isn’t alone. Michael Rosenberg, president of Rosenberg Indoor Comfort in San Antonio has a similar philosophy.

When you started something from scratch and nurtured it along the way, it can be difficult to let go. No one else is going to do something exactly the way you did it. But that doesn’t make it wrong, just different. As I said, the successful contractors I interact with accept this. They know the only way they’re going to succeed is to put trust in their team.

“I like to communicate with the individual and tell them, ‘This is what I expect, and this is what your goals are,’ and then I leave them alone and let them do what they need to do,” Rosenberg says. “I don’t micromanage.” I hear similar management styles from many top contractors. The key is, you have to be able to trust that you made the right hire and allow your team to do their job, while you focus on building your business. u

Make no mistake, this shouldn’t be a blind trust by any means. As a leader, it’s important to know what’s going on in every aspect of your company. Many leaders have difficulty learning to let go, and a lack of trust is often the root cause. Lack of trust has a tendency

HVACR BUSINESS DECEMBER 2019

RECRUIT AND RETAIN WORLD-CLASS TALENT

The right hire can set a new standard for success in your company and guide a path to amazing growth and profitability for the rest of the team. BY TODD LILES

very professional sports team knows that it takes world-class talent to produce consistent results. That’s why No. 1 Draft Picks are so prized. A world-class talent could potentially take a team to titleship status. In your organization, one world-class talent can change your entire business game. The right hire could set a “new” standard for success; and guide the path to amazing growth and profitability for the rest of the team. I’ve seen this happen to dozens of companies in our consulting business that we have the privilege to coach. Here are six keys to recruiting and retaining world-class talent.

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The right hire could set a “new” standard for success; and guide the path to amazing growth and profitability for the rest of the team. 1. DEFINE IT What does “world-class talent” mean to your company? My father in-law is a legend in college football. Coach Michael Tolleson, or “Tolly,” recruited and trained some of the most dominating tackles during his time as a coach. His list of athletes includes: • Anthony “Booger” McFarland, a firstround draft pick and a Super Bowl winner.

DECEMBER 2019

• Shaun Rogers, a second-round draft pick and a three-time Pro Bowl athlete. • Casey Hampton, a first-round draft pick, two-time Super Bowl winner and five-time Pro Bowl athlete. Tolly’s tackles are legendary for being fast, big, strong, tough and smart! This isn’t an easy combination to find. You have to look very hard to find a player that weighs 320 pounds and can run the 40yard dash in 5.3 seconds.

Tolly recruited and trained worldclass athletes throughout 40 years of coaching. He was able to do this at small programs and big programs. Tolly’s success in recruiting starts with one very simple concept: If you want world-class talent, you have to know what it looks like. Coach Tolly defined the characteristics and traits of a world-class tackle. He made a “blue book” of the high school athletes that matched his standard and he focused his attention on those athletes. “Coaching and business are all relative,” Tolleson says. “You have to find the kid (recruit) that will work best in your program and then you have to convince him to join your team.”

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Because of coach Tolly’s ability to lead talent, he was named the Special Teams Coordinator at The University of Texas. This job was in addition to his role as the tackles coach. “You have to adjust your players to meet the needs of the game,” Tolleson says. Tolly applied his same principle of defining world-class talent for his Special Teams positions. In 2009, Coach Tolly was named the Special Teams Coach of the Year. During his time as a coach, Coach Tolly lived by his principle of defining worldclass talent. You need to take the time to define your standards for talent in your company. These definitions will provide you with the guidelines for hiring. As a training and consulting organization, we define world-class talent with robust job descriptions. A good job description will include the following points: • A Simple Definition of the Position. • List of Key Result Areas. • List of Key Performance Indicators. • List of Key Culture Characteristics. • Description of Pay Structure. We also separate job descriptions by skill levels. We refer to them as Level 1-3. With each increased level, there are increases in expectations and rewards.

2. HIRE SLOW Knowing why a “slow” hire is critical to having a successful hiring. A fast hire is usually a response to some negative occurrence in your company. Fast hires happen in emergency situations and those emergencies blind you to problems. Inside of your company, you need to incorporate key steps that your potential hire must complete before they become a team member. Think of these steps as speed bumps in the road. Each step forces you to slow down and pay attention to your definition of world-class talent. At Service Excellence Training, we use a seven-step approach. This approach slows us down and ensures that we make a good hire. It’s the same approach that we teach our clients.

Step 1: Do we like each other?

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Top talent will also receive the best pay, even if they have to go somewhere else to get it. Your first meeting should be a “get to know each other meeting.” You are answering the question, “Do I like this person?”

Step 2: Complete a DISC Profile and Background Check A good profile and background check are necessary to assure cultural alignment.

Step 3: Skill Check During this interview process, you are going to check the stated ability of the person against reality.

Step 4: Check References Reference checking will provide you with the information only a past employer and personal reference can give.

Step 5: The “Tough Interview” The Tough Interview is designed to test the level of desire and fight in the candidate.

A Successful Service and Sales Training System. According to the 2018 LinkedIn Workforce Learning Report, 93 percent of team members would stay longer if their company invested in training. Top talent demands to be trained. The best in the business see training as the path to their personal and professional development. What’s more, 57 percent of employees desire the “soft skills” training over the “hard skills.” World-class talent desires training in Communication, Leadership, Sales and Management. A Solid Marketing System. The goal of marketing is to create the ideal conversations with your clients. In other words, marketing gets your producers in

front of the right people. World-class talent wants opportunities. A solid marketing system will keep your talent in front of opportunities and will boost retention.

4. MONEY ISN’T EVERYTHING Money is not the only motivator for world-class talent. It’s not even in first place. For most top talented individuals, they assume money is a given to their skill sets. Therefore, they look for companies that match up to their world-class mindset. For top talent, culture and teamwork are key to long-term success and happiness. According to Inc.com article Why Culture Matters at Work, three of the most desired qualities of a workplace are: • Feeling valued • Being part of a team • Ability to learn new things and given the resources to do so continued on page 8

Step 6: Family Meeting Your candidate can be awesome, but if he is partnered with an unsupportive person, then he won’t be successful.

Step 7: Close the Deal This is the time to negotiate the work agreement, get this person trained and put him to work.

3. PAY ABOVE MARKET Top talent wants the best pay. Top talent will also receive the best pay, even if they have to go somewhere else to get it. That’s why it’s important that you are able to pay above the marketplace and provide the best benefits. Paying above the market requires that you have a smart business plan that includes the following: A Profitable Pricing Model. To provide greater employee incentives, you are going to have to invest in a benefits package. These incentives need to be a part of a profitable business model. My suggestion to building out a profitable business model is to start with your desired profit margin first. Decide in advance how many cents per dollar you want to keep. Then, work backwards from your desired bottom-line profit.

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EDITOR’S NOTE: If you would like more information on the 7 Step Hiring Process, you can find the related content here: servextra.com/the-7-step-interviewprocess-for-hiring-a-winner/

continued from page 7

With a little bit of adjustment to your recruiting and hiring system, you can add world-class talent immediately to your labor force.

5. USE BONUS PROGRAMS Highly successful individuals need to feel like they are achieving. They are accustomed to winning in their life and receiving rewards and recognition. The best bonus systems utilize the psychological persuasion components of reward and recognition. While both are important, you may be surprised to find out that the recognition is more critical than the reward.

help reduce such problems as:

could do for your business!

• material waste

6. OWNERSHIP MENTALITY The ownership mentality is one of the critical key differences between worldclass talent and average producers.

When your people begin to think like shareholders in your company, then headaches go down and profitability goes up. Retention and recruiting also become much easier.

In your organization, one world-class talent hire can change your entire business game. The right hire could set a “New” standard for success; and guide the path to amazing growth and profitability for the rest of the team. I’ve seen this happen to dozens of companies in our consulting business that we have the privilege to coach.

World-class talent thinks about every opportunity and the impact that it has on the company. The consideration of others is part of their team nature. Cultivating this mindset inside of your company can

Hiring world-class talent is within your reach. With a little bit of adjustment to your recruiting and hiring system, you can add world-class talent immediately to your labor force. Just think about what that

• gossiping • time theft • pettiness

Todd Liles is the founder of Service Excellence Training and the creator of the PRESS PLAY Training System. www.ServExTra.com Service Excellence Training provides consulting and training services, specializing in technician, sales, CSRs, managers and owner training. For additional information, visit servextra.com, call 512-333-4133 or email Todd at todd@servextra.com.

Recruiting and Hiring world-class talent is process driven. Which means that anyone can do it. Your next world-class recruit is at the end of implementing this Six Step Process. Good luck and go get them! u

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EXPANDING YOUR SERVICE AREA: WHEN MORE IS LESS BY TERRY NICHOLSON

n the land of milk and honey, where opportunity is abundant, we rarely think “less is more.” After all, who wants less money, less vacation time, less fun, less success? The list could go on and on. But as business owners, it’s hard to imagine that less may, in fact, be more. Time and time again, I’ve seen that chasing more, often leads to less. The situation occurs because you exemplify service excellence. You’re committed to delivering outstanding customer service. Your positive reputation is spreading in the community. Customers are referring their friends and family to you. You’re growing year after year. Because of your many happy clients you are serving, you start receiving service requests from homeowners outside of your immediate service area. You start thinking to yourself “more business is good!” That voice in your head says that one happy customer in the new area could lead to more happy customers, and you have the manpower availability at the present moment. In your head it’s a no-brainer, and for most service professionals in the same situation, that temptation wins out before they’ve even considered all of the pros and cons. Scheduling service calls outside your service area means accepting more consequences such as:

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Running a callback outside of your service area is a real money loser. Original Service Area

New Expanded Service Area Primary Service Area $89 Dispatch Fee

Primary Service Area $89 Dispatch Fee

consider, as is so often the case, when it rains it pours. Even though you may have taken the call outside of your service area because you had the labor availability, once you’ve taken the call, doesn’t it almost always seem that you start receiving more calls in your immediate area? Now you’re overbooked or you can’t provide timely service. The end result is, you lose business to your competitors and your good reputation is weakened. This is how more, quickly becomes less for your business.

Secondary Service Area $109 Dispatch Fee

1. More technician windshield time

6. The occasional call-back

2. Increased fuel and vehicle expense

7. Etc.

3. Increased technician compensation paying techs for driving, instead of repairing

Plus, you are going to have to honor your warranties and guarantees. If you think there is nothing worse than running a call-back or warranty call, think again! Running a call-back outside of your service area is a real money loser.

4. Less gross margin dollars per hour 5. The occasional repair requiring a non-truck stocked part

Therefore, it’s wise to develop a plan on how you are going to successfully manage expanding your service area. Here is a proven step-by-step method you might find helpful:

IDENTIFY YOUR PRIMARY SERVICE AREA This is where you would prefer to do business, and if you could, you’d keep your entire team busy in this radius and never leave. Circle this area on a map and post it on the wall for all to see. By posting a map on the wall for your call takers who are booking your appointments, they know where the best, most profitable area is located.

In addition to the above reasons, also

HVACR BUSINESS

continued on page 10

DECEMBER 2019

your primary service area.

continued from page 9

IDENTIFY SECONDARY AREA This is the area you are willing to serve if you can’t keep your staff fully booked in

On the same map, draw a border in a different color around your second-choice service area.

ESTABLISH DISPATCH FEE

secondary service area it may be $109.

You may actually have different dispatch fees for each service area. For example, your dispatch price in your primary service area may be $89, while in your

This will help offset some of the additional costs of doing business outside of your primary service area.

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RESIST THE TEMPTATION ... JUST SAY NO When service requests come from homeowners outside of your identified service area, resist the temptation and politely inform the caller they live outside your service area. This commitment to service excellence in your defined service zone will allow you to continue to gain market share. As you expand your customer base inside your primary zone and continue to fill in more customers in your secondary zone, you will eventually want to redefine your service zones again.

By posting a map on the wall for your call takers who are booking appointments, they know where the best, most profitable area is located. Either by widening your service zones by expanding your primary and secondary area so each covers a larger area (see chart).

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Or, by developing a third zone that expands your service area out further, with each zone having a different dispatch fee. Whatever method you choose, knowing when more means less, and developing a service zone expansion plan, is how you turn your company into a real, money-making machine! u

Terry Nicholson is Co-founder and Chief Success Officer at PRAXIS S-10 the world’s foremost success college for contractors. Terry is an innovator, visionary, business builder and industry legend. He earned the distinction as contracting’s foremost educator for his proven track record of helping business owners achieve multi-millionaire status. For more information on how to turn your business into a money-making machine, visit PraxisS10.com.

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FINANCE

BY RUTH KING

Profit or Wealth?

any contractors focus solely on profits. They look at their profit and loss statement and guide their business based on what that statement says. That’s only a part of the longevity equation.

Maintenance customers are your future wealth and future profits. The more maintenance customers you have and retain, the wealthier your company is.

The second contractor also had a rough two years. The company didn’t have the maintenance base to survive, nor did it have the cash to survive the two years. The company filed for bankruptcy at the end of the first year and went out of business, even though they had been a company with more than $5 million in revenues. The company didn’t have the wealth to survive the downturn.

Looking at a balance sheet is more important than looking at a profit and loss statement. You build longevity (i.e. wealth), by building a strong balance sheet. From a business perspective, you cannot build wealth without profits. Profits, a profit and loss item, are turned into cash, a balance sheet item. Both are required for business survival. But, are you building wealth? It’s great to have profits year after year, but if you are not building wealth in your business, are the profits really enough?

Perhaps a great year should be defined not only in profits, but in how many new maintenance customers you added and retained. Maintenance customers are your future wealth and future profits. The more maintenance customers you have and retain, the wealthier your company is.

An example from outside our industry: Restaurant Owner No. 1 had a great weekend. The restaurant revenues were amongst the highest they had ever had. The restaurant owner was thrilled with the profitable weekend. Unfortunately, the restaurant owner didn’t really know who was dining in the restaurant. He did not get the names of the diners, birthday dates or other pertinent information to turn those diners into clients. He hoped that he would have another busy, profitable weekend. Restaurant Owner No. 2 also had a great weekend. The restaurant revenues were amongst the highest they had ever had. They added 15 new diners to their frequent diner program. Servers asked for, and received, these diners’ names, birthdays, anniversaries and a physical and an email address to contact them. These 15 new diners could be sent emails and postcards which gave them a reason to return to the restaurant. These communications were special invitations

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two years. The company had to cut costs and use some of the cash they had saved to survive. Most of the maintenance clients stayed clients. They repaired rather than replaced equipment during the poor economic times.

to come back and included a free desert or a free entrée on their anniversaries or birthdays. This restaurant owner knew that he would have busy times again. He knew his customers. He sent them marketing messages giving them a reason to return. And, from experience, he knew that a percentage would return bringing potential new restaurant diners. Which of these two restaurant owners really had a great weekend? The second. He built profit AND wealth. Now, the stories of two contractors: The two contractors were located in different cities. They were similar in size, each generating more than $5 million dollars in

DECEMBER 2019

revenues. Each contractor had 10 profitable years. The first contractor was thrilled with his profits over the 10 years. He saved his money and built his maintenance base. He grew maintenance clients and cash. The second contractor was thrilled with his profits over the 10 years. He relied on the great economic times and didn’t focus on building his maintenance base. In addition, those 10 profitable years gave him great vacations, great second homes and other “big boy toys.” He turned the profits into cash and spent the cash. He didn’t save any money.

There are always economic ups and downs. Building profits and wealth is critical for survival. They are also critical to achieve your end game — whether it is to sell the business, turn it over to employees, or keep running it forever. Over the past 10 months I have written about the laws of profit. Over the next 10 months I will give you the laws of wealth. Implement both in your business to survive. 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.

The economy tanked. The first contractor, who had built the wealth (i.e. maintenance base and cash savings), survived the downturn. It was a rough

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RIDE THE WAVE OF THE

DUCTLESS REVOLUTION As ductless technology continues to become more mainstream, now is the time to get in on this market segment and offer additional solutions to your customers. BY PETE GRASSO

uctless technology — both residential mini-splits and commercial variable refrigerant flow (VRF) solutions — have been the biggest growth segment in this industry over the past several years. And, as more and more consumers learn about the benefits this technology offers, contractors who are on board with ductless continue to thrive. Still, with all the benefits to your business, ductless technology isn’t without its challenges. From educating customers, training technical and sales staff to pricing, navigating this market segment can be tricky. Nonetheless, ductless technology is here to stay and if you want to grow

“As contractors become more comfortable with ductless and consumers are better educated on this technology, I definitely believe growth will continue to accelerate.” — Darrell Gross your business, it would be smart to get on board. I recently interviewed a panel of top contractors from around the country to get their thoughts on ductless technology and the contractor’s role in educating customers about this emerging comfort solution.

HVACR BUSINESS DECEMBER 2019

The panel includes Darrell Gross, president of MRS Heating & Cooling in New Castle, Ind.; Jason Hanson, president of Sierra Pacific Home & Comfort in Rancho Cordova, Calif.; Jennifer Stueber, vice president of Blue Ridge Heating & Cooling in Pine Beach, N.J.; Andrew Torres, sales manager at Isaac Heating &

Air Conditioning in Rochester, N.Y. ; and Jeff Vida, director of sales for Four Seasons Heating, Air Conditioning, Plumbing and Electric in Chicago. Here’s what they had to say.

Do you mainly install residential mini-splits, commercial VRF or both? Gross: Mainly residential, but we have done some VRF in industrial applications. Hanson: We only do residential work. Stueber: We’re mostly residential. Torres: Isaac does both residential and commercial installs. Vida: We focus on residential.

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How do you sell this technology? Gross: We focus on outlining the high efficiency and flexibility of the systems, as well as the quick installation. Hanson: We use it to solve problem rooms, solve homes with no central HVAC or as additional heating/cooling capacity on homes with undersized central systems and problem areas. Stueber: We focus on three areas: saving money, ideal comfort and super quiet. Customers like that these systems are so efficient (so utility bills will be lower) and will cool or heat up a room very fast compared to unitary systems. This is also extremely helpful in houses at the Jersey shore where occupants only come down on weekends. Torres: It’s a problem solver solution. Ductless is a great option for homes heated with boilers. If a client’s adding an addition and the existing system won’t be able to handle the load, ductless should be part of the conversation. If a home is being heated by baseboard resistance heat, ductless is a great way to add air conditioning as well as save the homeowner on their utility bills. Vida: We use a solution oriented sales approach, which means offering the customer the best solution for their needs.

Is demand for ductless technology driven by customer demand or by the solutions you’re able to provide? Gross: The demand is coming mostly because of the solutions we provide, but homeowners are definitely becoming more knowledgeable in this area of industry. Hanson: We’re marketing ductless solutions to our clients so they’re more familiar and now asking for it, but we’re still finding a sizeable population that don’t really know anything about it or understand it until we offer it as a solution. Stueber: Demand in our area is driven by us, as not many consumers know about mini-splits. Old homes, sunrooms, auxiliary heat or cool, restaurants, and shore houses are an easy sell. Torres: Both, but in large part listening to the customers’ needs and educating them on how ductless could be the best option for them is a heavy driver for us.

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“There is a large inventory of buildings that will benefit by adding or converting to ductless and consumers are becoming more familiar each year with these new solutions available to them.” — Jason Hanson Vida: Both. I’ve noticed over the last couple of years a greater percentage of customers are acclimated to the technology. My consultants work with the consumers where applications/needs dictate the technology to satisfy their comfort needs.

What type of education on ductless solutions do you offer your customers? Gross: We have a working display, brochures and, of course, testimonials that we use to help sell and educate ductless systems to customers. Hanson: We give an overview of the technology, the aesthetics available with ceiling cassettes, the energy efficiency and avoidance of ductwork and lost energy in ducts. We also demonstrate how you can customize comfort to each room. Stueber: We provide brochures. We also give them a sample unit size made of paper to attach on their wall. The biggest objection is they don’t like it or are afraid it will be too overbearing in the room. Mitsubishi has a brochure with the actual length of an indoor evaporator head. We place it on the wall and come back with proposal one week later. Most people find they don’t mind it. Torres: Our project managers are trained to educate the homeowner on the best possible solution for their particular situation, and if that happens to be a ductless system, then they’re prepared to outline the benefits. Vida: We use our manufacturer partner’s marketing and educational videos. They do a great job of visually showing how the products efficiently condition rooms.

What kind of training do you provide technicians and sales staff? Gross: We send our technicians to factory sponsored training and we also offer in house training. I’ve been selling ductless

for more than 20 years, so I personally handle that. With the help of YouTube and brochures, I’m able to use my experience to educate our sales staff on the best approach to selling ductless to customers. Hanson: We rely on training support from our manufacturer partners. Stueber: We use any and all classes offered to my technicians from supply houses and distributors. They take the sales classes, such as Fujitsu 101, and the teardown classes for trouble shooting. Torres: We use factory training and in-field support. We have also recently expanded our training facility lab in which we have fully functional systems set up to be able to run technicians through troubleshooting or our field representatives on proper application types. Representatives from the manufacturer will come on site to do training as well as field support. Vida: We have specialized installers that went through our vendor’s training program. By specializing, this group is comfortable with the applications and have reduced installation times. We also have the vendor come in multiple times a year for both new product and refresher training. This, coupled with their videos showing customers how the equipment works, is a real aid to educating customers on the advantages of ductless.

Do you believe this category will continue to grow? Gross: I’ve seen steady growth in this area. As contractors become more comfortable with ductless and consumers are better educated on this technology, I definitely believe growth will continue to accelerate. Hanson: Yes. There is a large inventory of buildings that will benefit by adding or converting to ductless and consumers are becoming more familiar each year with these new solutions available to them.

Stueber: Yes, I believe ductless is just starting to make an impact in the U.S. and will only keep growing as more and more consumers learn about it. Torres: With the current state incentives on the rise for heat pumps, this area will only continue to grow. Vida: We have doubled our business in the category four years in a row. This is no longer a niche market; it’s mainstream.

Where do you see the most growth potential for ductless technology? Gross: Small office buildings and homes that are adding square footage are two applications that are suited well for this type of technology and ones I believe are a big opportunity to sell these systems. Hanson: Older homes that pose a challenge when retrofitting a central system, as well as large homes that have problem areas. Stueber: We see huge potential for commercial zoning, as well as server rooms. Torres: Existing homes with electric, propane or oil heat are ideal candidates for ductless technology. Vida: Using the technology as the primary heat source in Northern markets has grown. The ductless air handler with heat strips does a better job than conventional air handlers heating electric provided homes.

Is this a worthwhile business opportunity for HVACR contractors? Gross: Absolutely. We’ve gained many customers because the contractor they normally use refuses to embrace this technology. But customers know ductless technology is an option and they want a contractor who embraces this solution. Hanson: Yes, if the price is right. Stueber: Yes. As I said before, this is only going to continue to grow in the U.S. Torres: Absouloutly. Being able to offer a ductless option makes you more versatile in addressing comfort issues in all homes. Vida: Absolutely. The more education we provide to customers, the faster the industry will grow. continued on page 16

HVACR BUSINESS DECEMBER 2019

continued from page 15

What’s been the biggest selling point for ductless technology? Gross: Equipment prices have become more reasonable and that has really helped sell more jobs. Also, now that we can add ducted air handlers, it opened up a new area for installs. It’s no longer just ductless. Hanson: Energy efficiency, hands down. Stueber: It has to be ideal comfort. Why heat or cool rooms you’re not using? When you go into your house, do you have one light switch that turns on every light in the house? No, you only use the lights when you’re in the room. We apply that same technology here with mini-splits. Torres: The building block approach. If the goal for the customer is to do the whole home, but financially they can’t all at once. With the technology offered by manufactures, we’re able to start off with a zone or two and still have the capability for future zones.

“Why heat or cool rooms you’re not using? When you go into your house, do you have one light switch that turns on every light in the house? No, you only use the lights when you’re in the room.” — Jennifer Stueber Vida: Ductless systems improve indoor air quality, are extremely efficient, easy to install and offer a wide variety of products for different applications (i.e. ceiling cassettes, ducted, floor and wall mount units).

What challenges are you experiencing with ductless technology? Gross: When installed correctly using the correct tools, we really don’t have a lot of challenges. Vendor stocking has created a few issues for us, but nothing is perfect. Hanson: We went through our learning curve, but initially it was learning to size it right for larger spaces or spaces with

heavy heat gain/loss. We have experience now, so we don’t face many challenges anymore. Stueber: For starters, it can be expensive. It can also be a challenge when it’s the primary source of heat. But, labor is cheaper. Technicians like them because they’re lighter. But the line hide is ridiculously priced and the hyper heat model that don’t lose capacity to 0 degrees are necessary (they cost a lot more vs a standard system rated at 40F). Customers will choose someone cheaper but not get same model and will be cold on those zero degree days. Another challenge is equipment going bad … for example, having to change whole system because they don’t make the evaporator anymore in that series and the

new revision won’t communicate. Torres: In our market, the majority of the housing stock is heated by natural gas. Our natural gas rates are relatively low, so with the cost and low ROI for these particular homes, it can be challenging to make the numbers work. With the New York State Energy Research and Development Authority (NYSERDA) offering more and more incentives for these types of systems, however, the outlook is positive. Vida: Up-front cost and aesthetics. The product has been in the U.S. for years, but relatively unknown to the majority of the populous. Time spent educating the customer exceeds that of regular split systems, but the benefits to the customer warrant the additional time. u

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

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CASE STUDY »

RESIDENTIAL

Affordable Housing Alliance Meets Energy- and Cost-Savings Goals

s neighborhoods are redeveloped throughout the Jersey Shore, lower-income households are finding it increasingly difficult to find affordable — and comfortable — housing. Residents in Eatontown, N.J. were no different. When the Affordable Housing Alliance — a nonprofit community housing development organization — purchased land that had older manufactured homes already on it, it committed to building new models that were both reasonably priced and had higher-quality living conditions. The Alliance knew that utility costs were a large part of what made older manufactured homes expensive for residents. At times, residents were paying approximately $400 to $500 per month in utilities, especially when oil and propane costs were on the rise. Plus, the lack of insulation meant the homes were wasting vast amounts of energy in order to maintain a comfortable temperature. Because of this, the new models needed to be well-insulated and have energy-efficient and cost-effective equipment.

In choosing a heating and air conditioning solution for the Net Zero Energy home, The Levy Partnership selected Panasonic’s ductless solution, which was able to be installed at Champion Homes’ manufacturing facility. The Levy Partnership selected Panasonic’s ductless solution, which was able to be installed at Champion Homes’ manufacturing facility. This means the unit was ready to use once the home arrived on-site, saving on installation cost. “Our team wanted more than a vendor when we were selecting a heating and air conditioning solution for this project. We wanted a partner who would collaborate with us to deliver the right solution for Eatontown residents’ energy and comfort needs,” said Jordan Dentz, vice president of the Levy Partnership. “Panasonic’s team provided the technical guidance we needed, plus they have the low-wattage and quiet products to back them up.”

After receiving funding from the Department of Energy’s Building America Program, The Levy Partnership began coordinating the development of new manufactured homes for the Alliance, including one Net Zero Energy home. While each of the manufactured homes were built by Champion Homes with the goal of reducing energy use, the goal of the Net Zero Energy home was to reduce annual energy bills to zero (0).

Next Step, a nonprofit network that promotes sustainable home ownership through factory-built homes, brought the Alliance and Champion Homes together for this project. While Champion Homes, which is another Levy Partnership collaborator, built the home, Panasonic’s ductless solution was installed in the factory. Because the system does not require any ductwork or floor area, it helped maximize space for residents.

To achieve this, the home needed solar panels, which produce sustainable energy, and equipment that is energy-efficient. In choosing a heating and air conditioning solution for the Net Zero Energy home,

Utility bills in the Net Zero Energy manufactured home are now a fraction of what they were in older units: they dropped from approximately $400 to $500 per month to only about $10 to $20

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per month for gas and an average of about $30 per month for electric. As a result, the Alliance achieved one of its primary goals for the project — lower total cost of homeownership for residents.

CHALLENGE For lower-income residents in Eatontown, N.J., affordable housing has been increasingly difficult to find due to gentrification in the area. When the Affordable Housing Alliance purchased a manufactured housing park behind the Monmouth Mall in Eatontown, it was faced with the challenge of improving the living conditions for residents in the park without increasing their living costs. At the time of the purchase, utility bills for units in the park were in excess of the cost of rent. With this in mind, the Affordable Housing Alliance made it their goal to reduce the cost of utilities in newer units to encourage residents to upgrade to better housing.

SOLUTION To develop the newer units, along with one Net Zero Energy unit, the Affordable Housing Alliance turned to The Levy Partnership, a building and energy consulting firm focused on developing and demonstrating energy efficient technology.

The Levy Partnership brought with it several partners who contributed to different aspects of the homes, including Next Step Network and Champion Homes. When it came to heating and air conditioning for these new manufactured homes, The Levy Partnership chose Panasonic due to its heating and cooling performance and efficiency. The Panasonic system provides primary heating and cooling to meet year-round comfort and utility efficiency for its occupants.

RESULT By installing Panasonic’s ductless systems, energy consumption decreased to approximately half of what it would have otherwise been. Because the Affordable Housing Alliance met its goals to increase energy-efficiency and reduce costs for residents, Panasonic’s technology is a viable solution for future new construction and renovation projects in low-income neighborhoods. Additionally, because Panasonic’s heating and air conditioning solutions can be installed at the facility where the manufactured homes are produced, it is also a viable solution for other manufactured housing projects. u

For more information about Panasonic Heating and Air Conditioning, please visit us.panasonic.com/hvac.

HVACR BUSINESS DECEMBER 2019

BUSINESS INSIGHTS »

DUCTLESS TECHNOLOGY

The Right Partner Makes a Difference Cultivating the relationship with a trusted partner will help you boost your business with VRF and ductless systems.

he HVACR market has been growing steadily over the past few years but growing in the low single digits. But when it comes to the ductless technology segment of HVACR, there’s been double digit growth each year for the past several years. “Ductless technology has been adapted more and more throughout the past few years,” says Trevor Gensch, VRF and Ductless Product Sales Manager at Trane. “For contractors and engineers who maybe haven’t already explored training in ductless technology, it’d be advantageous to do so.” As this segment grows, more players are entering the market. Contractors need to partner with a provider that’s going to stand behind their product and with service, support and training capabilities. “As a contractor, you want to have a one-on-one relationship and not simply dial an 800 number,” says Vincent Patti, Field Project Manager/Ductless Technical Specialist for Trane. “It’s important to have a direct line to a field support person.” HVACR Business spoke with Patti and Gensch about the versatility of today’s VRF and ductless solutions, potential challenges with this technology and the value of finding the right partner.

How are contractors using ductless technology to offer additional solutions to their customers? Patti: The first thing that comes to mind is versatility of the product. We have the ability to provide heating or cooling in a space that might have been inaccessible with traditional ductwork or chilled water lines, which are both generally larger than the refrigerant lines used in VRF. We also have the ability to retrofit a traditional air handling unit with the brains of an indoor ductless unit and outfit it with a compressor, basically turning that standard air handler into a VRF system. Gensch: Another great thing about VRF is the modular design. If more capacity or airflow is needed in a space over time, additional systems can be added without a major impact to the overall design. This ultimately

HVACR BUSINESS DECEMBER 2019

FOLLOW UP:

Looking for a partner you can trust? Learn about Trane and its complete line of Trane®/Mitsubishi Electric Ductless and VRF solutions. Visit trane.com/ductless.

BUSINESS INSIGHTS: Ductless Systems is brought to you by Trane makes VRF systems more flexible than traditional HVAC systems.

What are the main benefits contractors should highlight when they’re putting together proposals for their customers? Gensch: From a contractor’s perspective, as he or she is trying to appeal to an owner, the efficiency of the system would be number one. Also, size is a factor as these systems tend to fit in smaller spaces. The indoor units take up less space, the outdoor units take up less space, and how that translates into a contractor owner when he’s installing it is that they can get more leasable square footage out of their building because less space is taken up by mechanical rooms.

What are some of the challenges still facing ductless technology? Patti: Misapplication comes into play from time to time. Sometimes, with larger VRF commercial applications, we run into a scenario where a heat pump system is designed, where traditionally a heat recovery would be a better application. We’ve run into scenarios where we have occupants in the space that may be looking for heating on one side and cooling on the other side simultaneously. This can be accomplished easily with a heat recovery VRF systems. It just comes down to educating the design team with proper selection guidance. Gensch: Misapplication also comes into play in regards to code compliance. Often times we see design teams overlooking compliance with standards such as ASHRAE 15. ASHRAE 15 essentially defines the amount of allowable refrigerant charge in an occupied space. Again, this challenge is easily overcome with proper design guidance from a manufacturer.

What kind of education and support does Trane offer its contractor partners? Patti: Trane as a whole has made significant investments by adding quite a few training centers throughout the nation. We currently have more than 30 centers up and running across the country between Trane and Mitsubishi Electric Trane US, LLC, and planned to open in the near future. We want to have our installing contractors certified with the Trane /Mitsubishi Electric VRF and ductless products. So, A) we have a good, clean install and B) for me personally, we develop a relationship with contractors. Aside from teaching the training classes, I generally get involved with the project after the equipment ships. I support the contractor from day one of the install, all the way through startup and after. We offer field support throughout the whole process, and in many cases years after the project has been installed.

What else makes Trane such a great partner for contractors? Gensch: One of the best things about Trane is we’re not just an equipment provider. Trane is a full service HVACR solutions provider. Yes, we sell HVACR equipment, but we also have the best field support in the industry. Our applications engineers, ductless technical specialists, controls technicians, service technicians, and project managers are all in place and ready to support our customers from project inception through the life of the building. u

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THE SKY’S THE LIMIT. Trane® / Mitsubishi Electric ductless and VRF solutions offer greater flexibility, better energy efficiency and lower operating cost, all while saving you time and money on installation. Discover technology that’s full of potential — for our buildings and for your bottom line. Discover ductless and VRF solutions from Trane.

CASE STUDY »

COMMERCIALO

Mixed-Use Space Turns to VRF for Complete Solution

pened more than a century ago, The Ebell of Los Angeles and the accompanying Wilshire Ebell Theater participates in and encourages the educational, cultural and social growth of the Los Angeles community, working with a wide range of artists and promoters from around the world to bring performing arts to the diverse population of the city. The complex has been owned and operated since 1927 by the Ebell of Los Angeles women’s club and was added to the National Register of Historic Places in 1994, solidifying its status as an iconic structure. With a variety of spaces within the structure, The Ebell of Los Angeles houses a performing arts theater, office spaces for staff and smaller rooms for special events. With the need to replace an old, inefficient cooling towers and chiller system that only cooled the theater space, The Ebell of Los Angeles’ management team sought a new innovative HVACR solution to address the full needs of the theater and the occupants throughout the larger complex.

CHALLENGE The facility management team required a versatile system that would both respect The Ebell of Los Angeles’ recognized status on the National Register of Historic Places and meet the theater’s needs to cool, heat and dehumidify the front and back stage areas. Additionally, the system needed to provide air conditioning for the building’s event hosting spaces, which the old system did not provide for beyond the theater. The new system needed to maintain the aesthetically appropriate historic qualities of the landmark property while delivering

After carefully reviewing the requirements, DMG Corporation recommended LG AHU Conversion Kits paired with Multi V 5 VRF condensing units. high performance and enhanced energy savings. A key requirement for the new HVACR system was design flexibility. The Ebell of Los Angeles’ unique and historic architecture presented a substantial obstacle due to the structural difficulties of installing outdoor units on the roof of the building, which meant the new system would have to be flexible enough to fit in two places — the confines of the basement, where the old chiller was housed, and discretely around the exterior of the theater. Finally, due to the varying occupancy throughout the entire property, the system needed to effectively condition each space with a wide range of heat loads and provide effective dehumidification to the cavernous theater space.

SOLUTION After carefully evaluating the criteria, the building’s General Manager and Chief Operating Officer Philip Miller, in conjunction with mechanical engineering firm Athena Engineering, designed an efficient and seamless solution that would allow for occupant comfort in the theater and event spaces. After carefully reviewing the requirements, DMG Corporation, the project’s HVACR Equipment Solution team, recommended LG AHU Conversion Kits paired with Multi V 5 Variable Refrigerant Flow (VRF) condensing units. LG’s VRF technology was selected because it excels at sensible cooling and the modularity

HVACR BUSINESS DECEMBER 2019

of the design enables the overall system to properly condition the varied spaces throughout the theater and event spaces despite the heating and cooling load changes caused by shifting occupancy. Prior to installing LG, the Ebell maintenance team had to use large and noisy portable air conditioners to keep the rooms cool. Now with LG’s VRF technology, the spaces are quickly and quietly conditioned for optimal guest comfort. Due to the unique aspects and structure of the building, Athena Engineering designed a custom-built system that replaced the old chiller structure with LG’s condensing units, which were easily installed on the exterior of the theater. The new units feed into LG’s AHU Conversion kits that are housed in the theater’s basement. The AHU Conversion Kits, consisting of EEV kits and Communication kits, were then able to communicate with coils stacked within the new custom AHUs to drive the temperatures of the coils lower to effectively dehumidify and condition the air to increase comfort exponentially. Additionally, LG’s MultiSITE Communications Manager was installed to allow the LG systems to communicate with third-party controls for seamless system management.

RESULT For nearly the same cost as a traditional system, with greater savings and overall efficiency over its lifespan, The Ebell of Los Angeles now has a highly reliable, energy-efficient HVAC solution that delivers comfort and convenience for its occupants. Ultimately, the LG Multi V 5 outdoor units and AHU Conversion Kits allowed for a flexible design that worked with the existing ductwork to deliver an energy efficient, flexible and HVAC system. LG’s controls also made management from one central location effectively seamless for the owners and maintenance team. Jordan Jones, sales engineer, DMG Corporation added, “LG’s VRF system gave us the capabilities to meet all of the demands as we were navigating the complicated installation process. If you’re trying to identify a system that is efficient, compact and ultra-responsive with great controls, LG just fits the bill for these types of projects.” u

For more information on the complete portfolio of LG air conditioning technologies products and how they can fit your application, visit lghvac.com.

Ultimately, the basement and outdoor space behind the theater were used to house the LG AHU Conversion Kits and 4 Multi V 5 VRF systems, comprised of 12 modules. www.hvacrbusiness.com

PRODUCT FOCUS »

CERTAINTEED

HILMOR

GREENHECK

MILWAUKEE TOOL

CertainTeed Machine Works has introduced the Glass Master SG-420 Duct Board Grooving Machine — a powerful machine that fabricates high-quality fiberglass spiral ducts more accurately, and up to 50 times faster than standard hand-cutting techniques.

hilmor has introduced a Lightweight Brushless DC Refrigerant Recovery Machine.

The latest advance in Greenheck’s line of SP commercial ceiling exhaust fans is the modular SP-AP fan that offers exceptional design versatility and energy efficiency. The SP-AP’s constant CFM EC motor technology ensures performance set points resulting in improved indoor air quality when application static pressure is higher than expected. The SP-AP is two speed capable (constantly on low speed) with built-in time delay.

Harnessing the power, performance, and run-time delivered by M18 FUEL technology, Milwaukee has developed the industry’s first cordless pipe threader.

The SG-420’s four drive rollers and ¾ horsepower motor provide the necessary grip and power to quickly pull duct board through the 21 tools required to form spiral duct liner. Precision-ground and hardened tool blades generate clean grooves and consistent contours and duct dimensions.

The unit’s low-profile cabinet height and three-way multipoise design make it easy to replace existing furnaces, creating flexibility in multiple types of installations. Its fully insulated, anti-rust cabinet minimizes indoor noise levels, while the multi-speed ECM motors offer quiet and efficient operation >> hilmor.com

>> certainteed.com/glass-master

Certified as an Energy Star Most Efficient 2019 product, the SP-AP is ideal for multifamily applications such as condominiums, apartment buildings, hotels, and senior living facilities.

With AUTOSTOP technology, which senses severe kickback and automatically shuts the tool off, a dedicated support arm to hold the tool stationary during threading, and an integrated die head lock, this new tool eliminates the need for cheater bars, ropes or pipe wrench supports. >> milwaukeetool.com

>> greenheck.com

NAVIEN

NU-CALGON

RIDGID

TEKMAR

Navien officially launched their commercial sized fire tube boiler series, the NFB-C. The NFB-C is available in two sizes: NFB-301C (301 MBH) and NFB399C (399 MBH).

Nu-Calgon has introduced a new minisplit maintenance bag, called Clean Guard, that prevents fluids from getting on walls and floors of residences when contractors are cleaning coils and blowers. The reusable bag has an industrial-grade elastic collar that simply adjusts to fit around a wall-mounted indoor air conditioner.

The only tool on the market that lets contractors press black steel pipe between two-and-a-half and four inches, the new RIDGID Press Booster for use with Viega MegaPress XL Jaws and Rings, builds on the power of the RIDGID RP 340, attaching to the tool to multiply its output for fast connections on larger diameter pipe.

tekmar Control Systems has announced the addition of four new switching relay and zone valve control models to their existing line of zone control solutions.

Clean Guard installs in seconds and provides 360-degree coverage to protect walls from overspray. It also features an eight-foot drain line and heavy-duty design for reuse on multiple jobs.

MegaPress XL makes connections in less than 25 seconds, saving time and enhancing efficiency. Simply attach the booster to the end of the RP 340, press the trigger on the tool three times, and you have a secure press connection.

Each NFB-C boiler uses the same inhouse designed and manufactured patented heat exchanger technology that was introduced with the NFB series in 2018. The heat exchanger is form-pressed and robotic laser welded to minimize the number of weak points that could be prone to thermal stress and corrosion. >> navieninc.com

>> nucalgon.com

>> ridged.com

www.hvacrbusiness.com

tekmar now offers 2-zone pumps, 3-zone pumps, 3-zone valves, and 5-zone valves. The newly added switching relays and zone valve controls are compatible with all low-voltage thermostats and offer a variety of benefits for homeowners. The switching relays and zone valve controls also send out a RoomResponse signal to automatically adjust boiler temperatures to improve comfort, conserve energy and save money. >> tekmarcontrols.com/products/ zoning.html

HVACR BUSINESS DECEMBER 2019

20QUESTIONS >>

with TINA PINNA

We sat down with Tina Pinna, owner of Master Mechanical Services in Miami, Fla. Tina discussed becoming an entrepreneur in the family business, adapting management style to current workforce and the importance of making a decision. 1. Can you tell us about Master Mechanical Services?

8. What’s it like to work with family?

I’m from an entrepreneurship family and this is a family business. My parents started it in 1981 and my dad pretty much ran his own truck for a couple of years. When my brother graduated high school, he worked with him. I think it was two or three trucks on the road back then in 1990, and then my brother passed his state mechanical license.

Day by day. We each have our place. There were some moments, but every one of us has an area: my brother primarily does estimating, my husband runs the field and I run everything else. The key is to have respect for one another and not question their final decision but be open to discussing it with the person without questioning their capability.

2. When did you get involved?

9. What about the next generation?

I went away to college … I said I was never moving back to south Florida. But, I went to college for an entrepreneurship program and three years into school I figured out that I didn’t want to work for anybody else, so I approached my dad. He told me, “Well, you’re not just coming to join the company. You’ve got to tell us what you’re going to do for it.” He made me write up my idea of what I was going to do for the company.

3. What did that plan include?

At that point, he had moved from the house into a warehouse … it was a double warehouse that had a sandwich shop as well. So, my plan was to manage that, so he had no more issue with that and grow that business and double the sales there. In addition, for Master Mechanical, I was going to be the financial person.

4. How did you grow in that role?

My parents were great on the entrepreneur side, but they didn’t have anybody in the company with financial background. I really helped with saving, from expenses to purchasing that was learned in school to doubling our preventative maintenance.

5. What is your brother’s role?

Actually, my brother had been working with my parents for eight years already when I joined. My husband came from a background of sheet metal in his family, and we actually both joined the company. At that time, my brother took a reprieve and became a Mechanical Inspector for a municipality down here, but he realized he didn’t really want to work for anybody either. He came back and we’ve all been together.

6. Are your parents still involved?

My parents are still here. My brother and husband are here, and we have 30 employees. I’m considered CFO and still handle all the financial and purchasing side of the business, as well as a little bit of everything else. My dad took a step back from the company about 15 years ago, but he’s still in here every day. My mom’s still in here every day too for about four hours. We’re figuring that next step out because they’ve never known anything different.

7. So who owns the company now?

We changed that structure about four years ago so that my parents weren’t sole owners. My mom is still president with majority and myself, my husband, and my brother are all owners as well as my dad. All five of us have an ownership stake.

HVACR BUSINESS

DECEMBER 2019

Actually, my son is 16 turning 17, so he’s actually working for us … pulling a trailer and doing duct work on jobs and reading plans. So yes, we’re bringing up and teaching the next generation of the family business.

10. What’s your business mix?

We are 80 percent commercial, 20 percent residential. We aren’t big in residential, only because south Florida has so many single car companies driving around, that we don’t chase the residential work as much. The upper end residential, yes. But those are mostly referrals coming in from our commercial work.

11. What do you view as the most important aspect of your job?

Cost savings and cashflow. Whatever I can save on my end; that’s having the same person do it all when it comes to the financial aspect of it. So, if I’m purchasing and I’m able to save $500, I’m seeing both sides of it. I do all the billing as well and all the collection on the commercial side and pretty much 90 percent of the purchasing. I can see the savings on the materials and the importance of the cash flow of getting the billing out.

12. How would you describe your management style?

The company is family driven so we are a flexible company. Coming out of Florida State, I’m the first one in the family and the only one with a college degree. We modify our management to keep what we have happy. I have employees here more than 22 years that started with pretty much no knowledge and they’ve been here as long as I have been. That’s just different for a small family company.

13. What’s the labor force like in your market?

Our labor here is restricted or non-existent. We pretty much take anyone. We just hired two guys in their early 30s with absolutely no experience, so our management style is not strict due to what is available in the industry.

14. What training do you provide?

Back in the day, my dad and my brother would put somebody in their truck and train them. But, as they’ve moved up, and they’re no longer in the trucks, we don’t have the same training happening. We’ve had relied on our more experienced technicians to do it: put a helper in their truck, learn what they need to learn and then they move on up the tier.

15. What is the biggest challenges?

Knowledge of the technology. The technological change on the product itself, surpassing what my labor knows and there’s no training that can cover all brands or all different thermostats or anything. One of our other big ones is dispatching, so we’re actually in the process of introducing our first dispatch software into the company.

16. How important is company culture? I’ll give you an example. We were behind last weekend and my husband had worked on the job and not just a supervisor or project manager. I sent an email out on Thursday asking anybody in the company if they could work Saturday and Sunday. And he had 12 people join him and they worked all day Saturday, half day Sunday right along with him.

17. What else gets employees involved? The social involvement brings the company together, and really, it’s simply letting everyone know what we’re doing. If you want to participate, you’re welcome to. Nothing’s mandatory. So, there’s just respect from the business side of having the guys work out there.

18. What’s your best advice?

My dad used to have up on a paper, “Let’s get it done.” So, do whatever it takes to get it done … make a decision and go with it because it’s better to make a decision and fail than to never have made a decision at all.

19. Who are your role models?

I’ll say my parents, only because they started what we have here now even though it’s not the same. It’s outgrown and surpassed what it was, but they started it all.

20. How do you manage profitability?

It’s watching everything. I have other people in the office, but all check writing goes through me; all payables. I review the receivables every week too. The profitability is the amount of effort you put in personally, into the company to review everything.

www.hvacrbusiness.com

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Plan to Attend AHRI-Sponsored Free Educational Sessions at AHR Expo The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) will host four free educational sessions at the AHR Expo, taking place February 3-5, 2019, in Orlando. No pre-registration is required and all sessions will take place at the Orange County Convention Center. Visit AHRI in the West Hall at booth 3300, where weâ&#x20AC;&#x2122;ll showcase our member companies and certification program participants, share information about our world-class standards and certification program, and provide details on certification programs, membership, technician training, and scholarships.

High-Temperature, High-Ventilation Technology for Commercial-Industrial Buildings Monday, February 3, 9-10am - Room W312C How can commercial-industrial buildings utilize high-temperature, high-ventilation technology to provide efficient heating and ventilation? Attendees will learn about how gas-fired direct heating and forced ventilation appliances can help solve ventilation and destratification issues in warehouses, industrial, and high-bay buildings.

Introduction to AHRI Sound Standards in Ducted Applications Tuesday, February 4, 12-1pm - Room W311B In this session, attendees will learn about HVAC industry sound standards. A review of the fundamentals of sound will cover topics ranging from the decibel and hertz, to understanding the differences between sound power and sound pressure. A brief overview of the numerous AHRI sound standards will demonstrate that each standard can be used for more than just A/B product comparisons. A deeper dive into AHRI Standard 260 will demonstrate how AHRI sound standards enable member companies to provide consistent sound comparison data to customers while also enabling customers to design projects to meet specific sound criteria in the occupied space.

Safe Transition to Low-Global Warming Potential Refrigerants Tuesday, February 4, 4:30-5:30pm - Room W311B The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) created the Safe Refrigerant Transition Task Force to help stakeholders prepare for the transition to low GWP refrigerants. This session will include an update on the task force progress to date, including a supply chain analysis (e.g., installation, maintenance, operations, shipping, and storage) and stakeholder education.

Health, Comfort, Preservation: Bringing the Benefits of Humidity Home Tuesday, February 4, 3-4pm - Room W311B Can humidity control at home improve your health? Recent research shows clear links between maintaining mid-range indoor humidity and occupant health. However, much of the discussion has been focused on commercial buildings. In this seminar, we will focus on bringing the benefits of humidity control into the home. Attendees will learn about the science of humidity and health, and how indoor moisture affects both occupants and the home itself.

About AHRI The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) is the trade association representing manufacturers of air conditioning, heating, commercial refrigeration, and water heating equipment. An internationally recognized advocate for the industry, AHRI develops standards for and certifies the performance of many of these products. AHRIâ&#x20AC;&#x2122;s 300+ member companies manufacture quality, efficient, and innovative residential and commercial air conditioning, space heating, water heating, and commercial refrigeration equipment and components for sale in North America and around the world.