HVACR BUSINESS DECEMBER 2022

NATHAN JOHNSON Owner

“I’ve been told to stop doing that,” says Nathan Johnson, owner of Shockley’s Heat & Air, about giving customers his cell number. But he can’t help it. He lives and breathes HVAC and loves to be out in the field. And that spirit of service extends to his commitment to the Oklahoma City community, where he donates equipment and labor to help those down on their luck get back on their feet. In every sense, he and Shockley’s are Building a Higher Standard.

See how you can become a dealer at amsd.us

HIS CUSTOMERS HAVE HIS NUMBER. LITERALLY.

By Heather Langone

By Dan Clapper

By David Dombrowski

By Rachael Plant

By Keven Prather

Bill Sharpe Joins Malco Products, SBC, Board of Directors

Malco Products, SBC, one of the nation’s leading solution developers and manufacturers of high-quality tools for the building trades, announced that Bill Sharpe was recently appointed to its board of directors.

Sharpe is a co-founder of Pathfinder Companies and Pathfinder Consulting, a Minnesota-based, privately held investment and advisory firm that provides long-term capital to privately held family and entrepreneurial companies. His leadership experience and corporate strategy roles in mergers, acquisitions, and investment banking, span three decades.

Sharpe currently holds three corporate board positions across a variety of industries. He received his undergraduate degree from the University of Minnesota and his MBA from the J.L. Kellogg Graduate School of Management at Northwestern University.

www.malcoproducts.com

Danfoss Whitepaper Highlights Gap

Between Energy Demand and Supply

Danfoss kicks off COP27 by highlighting the urgent action to address the growing energy demand. A new whitepaper from Danfoss highlights the dramatic increase in global demand for energy and argues that, without urgent action to curb energy demand, the build-out of renewables will be insufficient to meet the needs of a growing population. The whitepaper, titled ‘The neglected demand side of the green equation’, delves into the details of how energy efficiency is an enabler of electrification. To reach net zero, experts agree that we must substitute fossil energy with renewable sources and electrify everything across all sectors.

According to the President & CEO of Danfoss, Kim Fausing, this whitepaper underlines the urgent need for climate leaders to include energy efficiency measures and electrification in their COP27 plans.

‘The neglected demand side of the green equation’ is available for download.

www.whyenergyefficiency.com/solutions/allsolutions/ the-neglected-demand-side-of-the-green-equation

Munters to Build All-New Site in the USA

Market demand for the precise temperature and humidity control that desiccant dehumidification technology provides has grown considerably, driven by the expansive electrification and digitalization trends. This state-of-the-art, build-to-suit facility will significantly increase capacity, offer improved workflows, and provide a more inviting and comfortable environment for employees. Key to this development will be providing higher levels of customer service and satisfaction in Munters’ target markets.

In line with Munters’ sustainability goals, investments will be made in equipment that doesn’t rely on fossil fuels. Renewable energy sources will be used for the building’s electrical consumption. The plan is to be fully operational by 2024.

www.munters.com

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com

HEATHER Langone Managing Editor hlangone@hvacrbusiness.com

MEGAN LaSalla Creative Director

mlasalla@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net

BARBARA Kerr VP Operations bkerr@hvacrbusiness.com

ADVERTISING STAFF

ERIC Hagerman

VP Sales

Tel 216-409-3246 ehagerman@hvacrbusiness.com

TERRY Tanker

Publisher

Tel 440-731-8600 ttanker@hvacrbusiness.com

BY TERRY TANKER

Lessons from a Small Business Owner

Another year, another lesson…

HVACR Business, founded January 1981, is a monthly nation al trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ven tilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S.

The editorial focus and mission of HVACR Business is to pro vide business owners and managers with the very best busi ness management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, mar keting, training, education, staffing, operations, human resourc es, 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©2022 by JFT Properties LLC.

No part of this publication may be reproduced or retransmit ted 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 substan tial monetary damages up to $100,000 per infringement, costs and attorneys’ fees.

This publication should not be utilized as a substitute for profes sional advice in specific situations. If legal, medical, account ing, 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 responsibil ity for the accuracy or completeness of such information or for loss or damage caused by any use thereof.

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HVACR Business (ISSN 2153-2877) Copyright ©2022 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)

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I’ve operated small businesses for most of my career. As we get set to close the book on 2022 and open a new chapter, I thought I’d share some lessons learned over the years. I hope the suggestions below help manage your company more effectively in the coming year.

Lesson Number 1: Be Prepared. As a small business owner, be more prepared for everything because you simply don’t have the resources of larger companies. And, there’s no safety net. Whatever fall you take, the landing always seems to be a lot more like a crash. Part of that preparedness has to do with the time frame in which you are able to make decisions. We make decisions quickly and it helps move our company into the best possible position for a given circumstance. It’s not always true, but often, important decisions slow down and filter through layers of management at larger companies. As a business owner, if you can eliminate or avoid this slowdown, your company should benefit. Being prepared and thinking through issues that can impact your company can soften the landing and help ensure your survival and growth.

Lesson Number 2: Cash. You’ve heard this from Ruth King dozens of times in her column: “Cash is king.” And, she’s right. For me, cash falls into several categories. First sales – it starts the process. Next, you have to perform work, delivering the equipment or the service. And then you have to collect. Many of you collect payment at the time the equipment is installed, or the service is performed. This means your accounts receivable column looks terrific. However, if you’re terms are net 10, 15, or 30 there are going to be slow-pay accounts. My advice is to get aggressive and start collection the day after you “should” have been paid. Accounts don’t mind dragging payments out, so don’t feel guilty calling and asking where’s the check. After all, you have signed the paperwork – right?

Lesson Number 3: Save. Saving some cash every month is money in the bank. This is no different than how you manage personal wealth. Be disciplined enough to set a percentage of each month’s net profit into an account. It’s the best business safety net ever – period. All of us who suffered through the pandemic can attest that savings make the difference between going out of business and staying the course.

Lesson Number 4: Negotiate. Being a better negotiator can earn and save you six and seven-figure sums

over the life of your business. And, no matter what contract or sale you are reviewing you can almost always negotiate a better deal for your company. (I have found just one exception to this rule – the United States Postal Service. On our P&L they are one of our largest expense items. They don’t negotiate, heck I couldn’t even find anyone to speak with….) We’re considering moving our office because like many companies we have more employees working remotely. We’ve investigated dozens of locations and found several that would be just right. We’ve found landlords very willing to negotiate. From existing space to build-outs, everyone in our area is eager to fill vacant space. Someone recently told me “You don’t ask, you don’t get”. We’ve been asking.

Lesson Number 5: Competition. Know them, chat with them, understand them. Stay away from talking about competitors in a sales call unless specifically asked to address an “us versus them” scenario. It’s not about them, it’s about your company and your products. As long as you have the customer’s attention, why waste a second saying a word about them? I’ve seen it happen, and unfortunately, salespeople can’t help it. They want to grind the ax. When your competition does this, you know you’re hurting them. It’s like the ref raising his arms on a touchdown. If they are talking about you, you are scoring! If your salespeople are disparaging competitors, it’s time to slap them on the wrist, but more importantly, you need to invest in training for them so they stop embarrassing themselves and your company. The biggest tragedy is that they are losing sales for you. No customer wants to hear it. The customer wants to know how you can solve their problem, not what you think about your competitors.

Lesson Number 6: Sales. There is no substitute for making sales calls and building relationships. If your sales team falls short here, your business will show clear signs of it on the P&L. The adage is right on the money. Sales make everything better. Excuses about why salespeople can’t get appointments have been around forever. One of the saddest things about them is they haven’t changed in 50 years! But, motivated, resourceful salespeople always find a way to approach existing customers and sell them more, and they also find ways to meet and educate new customers. If you’re a business owner and not sleeping well at night, I’m 99% certain it has to do with underperforming sales. Get your people on the road and in front of customers. Soon you’ll be sleeping like a baby. u

Be Prepared. As a small business owner, be more prepared for everything because you simply don’t have the resources of larger companies.

HARD WIRED FOR HOME SERVICES

BY HEATHER LANGONE

Since launching the Spotlight Series this year, we’ve written some in-depth features on a wide range of HVACR leaders - from women forging a path in HVACR to CEOs of multi-million-dollar companies and startups.

Bryan Benak is our latest featured guest. At the top of his game as the Chief Executive Officer of Southern Home Services, Benak is someone who worked his way up through the ranks in the home services industry to achieve the present-day success he now enjoys. Still passionate, he has an interesting perspective on success, and the best way to achieve growth and expansion, no matter where you currently find yourself in the industry.

My intention in sharing this feature is to educate. I hope that you will find the benefit of his experience, insight, and

willingness to share, helpful when growing your own HVACR business.

HARD WIRED FOR A CAREER IN HOME SERVICES

Benak explained that during the early days, the focus for most of his college friends centered around careers in “more glamorous” professions, as he put it. But for him, it made more sense to go into the home services industry.

“I grew up in a house where people worked in the services industries. There was no glamour attached, at least not compared to those venturing into banking or going to law school.”

So, why do it?

“It was hard-wired in me. It’s what I enjoyed. After two or three years in the home-services industry, but not on the consumer services side, I ended up working for the subsidiary of Michelin, North America transitioning into the B2B services side which propelled me toward Service Experts, one of the largest companies of its kind, and I eventually ended up running the whole United States division, even amid three ownership changes.”

profound expansion and amid ownership changes. What is the key to managing job insecurity and changes?

“At Service Experts, we were originally owned by Lennox, which is one of the OEMs. And then we had a very successful turn with private equity owners. Until finally we were sold to a publicly traded company on the Toronto Stock Exchange. Ultimately it was that foundational experience that led me here. The move to Southern Home was a natural fit. “I’d gotten to know the owners in 2016, and we kind of have a running joke now that we dated until we finally got married in 2019.”

A GOOD FOUNDATION IN HOME SERVICES MATTERS

Expound

a bit on being at the helm of a company during

As we spoke, Benak referred to his early days working in home service. It was that early experience that he credits as being

I love the people we work with. It is the workings of this industry that I find most appealing.

integral to his success.

“The journey that led me to this role which I love, is twofold. My entire career has been in the home services industry. Like anything, if you are in it long enough and have had a successful run, the private side does become a little more appealing. But it has been my role in hiring people that I find most appealing. I love the people we work with. It is the workings of this industry that I find most appealing. It's a very data and metrics-driven business. Many forget, however, that there is a people side to it as well. These are real people from all walks of life. It makes it so much more interesting because we deal with things that matter to them every day, both from the customer side as well as from the employee side. That part is gratifying. “

BIG GOALS BUILD BIG SUCCESS

As we continued, I asked him to go back a bit for the benefit of our readers.

Was there a plan? How did you get to this place?

“Yes, I had a plan.” he said, “When I was 22 years old, I said, I will be the CEO of a publicly traded company.” You know…I played very competitive soccer. I think it helped me, not only in developing my work ethic and team attitude but also in learning to deal with competition. At this point I don’t work because I must, I do it because I love it. I thrive on the competitive nature of the business. I view it as a sport. Think about it – if we look at the model, you need teamwork, good stats, metrics, and the win. And like in sports, you train the right players and develop them to make them better over time.

The importance of a good work ethic was instilled in me very early. That value spilled over into sports for me as well. I look for that in the people we hire. I seek out folks who have a high work ethic and are competitive. Yes, it’s a very data-driven industry, but the people make the difference. Let me give you a sports example… I am a big hockey fan. If you go back to the 1980 Olympics, it was not necessarily about the best players, it was about the right players.”

We both smiled at the reference to the Mike Eruzione, “Do You Believe in Miracles?” moment in sports history.

“Right? To me, that is one of the greatest sporting moments ever. In

business, like in sports, it’s not always possible to hire the most expensive candidates. But you can hire the right people. If you look at it from a sports model, the two things align. This industry is very data-driven, but it is also so much about the people. You can’t do anything without the right people. If you develop them and want to see them improve, it’s a winning model. Because if they improve, that means ultimately the business is improving. I'm not just talking about managers either. I'm talking about staff at all levels in the organization. I always remind our corporate teams. We work within these glass offices, it’s nice to think we matter. But we send our staff to deal with the customers. So, they're hardly ever in the building. If we aren't successful in making them very good at what they're doing, we're not going to be successful with customers. The building in which I'm sitting today – if it disappeared, our locations would figure out how to do accounting and HR. However, if the workers who deal with customers disappeared, we’d have problems. None of

us could go do field or customer service. As I see it, we're the least important group of people in the organization. And I mean that. I value everyone, but we're here to support them. They can survive without us. The reverse is less true. The way they serve the customers is ultimately how we all win.

In terms of going from a start-up to a nationwide company, or even expanding at the local level, my advice is always about getting back to the basics. Analysts spout things like, ‘We spend X on research and development.” Or the reason their ‘stocks declined, and the revenues haven't grown is they cut back on research and development over the same thing.’ I would challenge any manager to widen that ideology. We are in the service business. Invest in training and development. If you're only looking at profits and cutting development investments, you're ultimately hurting yourself over the long haul for short-term gain. How we make money ultimately is by seeing people get better. That only happens through training and development. Also, focus on what you do well. Often people on the verge of growth, get excited by shiny

objects, better technology, more locations, and better everything. There is nothing wrong with expansion but do it smartly.” How? “Well, part of the decision-making process to expand either in the plumbing or electrical fields should always be: Are we delivering consistently? Are we good, maybe even great, at our core business first? Then, and only then should you decide if you are ready to expand. If so, set about carving out a nice regional niche in the market first.”

1. Look at the market.

For instance, at Southern Home Services, we are, by design, a southern kind of values company. We chose to stay in the south, mid-south, lower mid-south, and southeast. That decision still yields twenty locations, but we always make decisions from that perspective. The other thing we've done well is that we're not opposed to – when we acquire – buying multiple

How do you know it is time to expand?

I always remind our corporate teams. We work within these glass offices, it’s nice to think we matter. But we send our staff to deal with the customers.

If we aren't successful in making them very good at what they're doing, we're not going to be successful with customers.

brands in the same market. Because if you look at most markets in the HVACR space, even when adding up the biggest player, they probably don't have a 5% share of the market in any given market per se.

2. Look at the number of homes being serviced in that metropolitan area.

If you are looking to acquire or compete in additional markets, look at the homes your target acquisition is serving in the area. You can do that comparison. Within a zip code area, they may have eight or ten percent, but in the whole metro area, I think you'd be hard-pressed in HVACR, to find somebody serving much over 5%. It’s a simple equation. How many homes were serviced and how many monthly homes over a given time frame?

What trends do you see in the industry?

Trends are being driven by anything that focuses on improving energy efficiency. More energy-efficient heat pumps, newly regulated refrigerants, and technicians who know how to work with these new systems

and can adapt to changes.

If you could define yourself in a few words, what would they be?

“Humble. High work ethic, open to new ideas, and very little to no bureaucracy. Oh and, “let me say this. If I could give one last piece of advice to your readers, building and growth are all about having the right people and the right processes to execute the plan. And then be sure to get great at what you do well, your core business, before ever thinking about expanding.” u

Bryan joined Southern Home Services in February 2019. Before joining Southern, Bryan was Vice President & General Manager of the United States business at Service Experts where he oversaw $330 million in revenue and 1,900+ employees. Before that he held various management and executive roles within several ServiceMaster businesses – Terminix, American Residential Services & Merry Maids. Bryan is a graduate of Georgia State University where he earned his B.B.A. and has

Well, part of the decision-making process to expand either in the plumbing or electrical fields should always be: Are we delivering consistently? Are we good, maybe even great, at our core business first?

SERVICE UPDATES

Winsupply’s Latest Major Acquisition Dominates the Region

Winsupply's strategic growth continues to dominate with the company's largest year of acquisitions capped off in October with the latest big win. Reported last month – Winsupply has acquired Hydrologic Distribution Company. In this latest expansive move, Hydrologic Distribution Company joins the Winsupply Family of Companies adding with it, 12 locations servicing plumbing contractors throughout the state of Florida. All told, the locations deliver a quarter billion dollars of revenue annually.

Regarding the recent expansion, John McKenzie, President, of Winsupply Inc. said:

To find a company whose culture aligns so perfectly with Winsupply is a once-in-alifetime opportunity. I can't wait for customers and contractors in the Florida market to see what we will be able to accomplish together.

With the recent acquisition, Winsupply is now supported by six regional distribution centers around the country, allowing the company not only a competitive advantage but the unique ability – service-wise - to provide each newly acquired location with timely product availability, which was previously unattainable.

www.winsupplyinc.com

PRODUCTS MAKING NEWS

Optimize Your HVAC System with Danfoss AB-QM Product Enhancements

Engineers and contractors who want to gain maximum benefit from Danfoss AB-QM pressure independent control valves in their HVAC systems now have new product options. The Flexo Fan Coil Unit connection kit, new and improved in 2022, comes pre-assembled and pressure-tested, available with or without a strainer. Made of DZR brass with a pressure rating of PN25, a center distance of 80 mm, and 3-way ball valves, its prefabricated design, compact size, and flexible pipes provide a trouble-free, faster installation and easier flushing, draining, filter cleaning, and flow validation. The new Flexo operates with more efficiency, improving indoor comfort while saving energy costs. Customers can combine the AB-QM with a NovoCon® actuator, the first digital actuator that can connect hydronic HVAC systems with Building Management Systems. NovoCon® communicates with the BMS system via a digital (BACnet or Modbus) communication protocol and exchanges technical HVAC data. When combined with the AB-QM, the hydronic aspects of HVAC control are fully integrated with the BMS. This provides a completely automated and controlled process for controlling, monitoring, optimizing, and maintaining heating or cooling in your building, resulting in an average energy savings of 30% and significant cost reductions. www.danfoss.com

BEST REVIEWED PRODUCTS

AprilAire’s whole-house products line, continues to beat the competitors for its capability to tackle Indoor Air Quality concerns. The whole home products line includes many highly reviewed winners – at least according to customers’ feedback – both for providing effective virus protection, reducing indoor allergens, and mitigating asthma triggers, as well as overall efficiency. AprilAire offers the 300 and 400 models, both launched recently and still offers the AprilAire 800 Whole Home Steam Humidifier which continues to be among its best-reviewed both online and on Amazon since its launch over a decade ago. If IAQ is important to you – and with many of us working from home, it has taken on a resurgence of importance – you will be interested in the AprilAire line for its whole home health benefits like improved sleep, reduced stress, fewer incidences of illnesses so you and your family can Breathe the Fullness of Life. Designed and manufactured in the USA, AprilAire whole-house products combine durability, energy efficiency, and contemporary style for Healthy Air by Design. www.aprilaire.com/whole-house-products

EFFECTIVE, INNOVATIVE TRAINING TO COMBAT THE LABOR SHORTAGE

BY DAN CLAPPER

The chronic shortage of trained, experienced skilled trades workers is the most urgent issue facing HVACR business owners. Employers in every industry are challenged by today’s labor market. In the skilled trades industries, the current employment crunch is just the latest development in an ongoing recruiting crisis.

CREATIVE SOLUTIONS FOR RECRUITING

Over the last several decades, several factors have contributed to an ongoing shortage of skilled labor in the home and commercial services, construction, and manufacturing segments of the industry. Among these factors is an aging workforce; fewer young Americans entering careers in those industries; economic disruptions like the 2008 financial crisis, and COVID-19. Also, the millennial zeitgeist asserts that a successful career requires a four-year college degree. While it is changing, there is a cultural stigma surrounding blue-collar work. That combined with a lack of information about the range of opportunities, and clear pathways for advancement in a trades-related career – all, contribute to the labor gap facing home services trades today.

According to a recent survey of more than 2,000 people working in the trades, 68% of employers have struggled to hire skilled workers and 33% said they could not fill open positions. More than half (52%) say the lack of workers is impacting their company’s growth, and 68% say they could grow their business if they had more available workers.

Like any other challenge, however, the labor shortage in the skilled trades presents a unique opportunity to find creative solutions. It is also true that business owners who effectively implement strategies to close the labor gap, increase productivity, improve their company’s culture, and distinguish their companies from the competition. In the end, that’s a proven roadmap for success and growth in any market.

Of all the strategies for closing the labor gap, effective in-house training has emerged as one of the most reliable.

WHAT’S THE GOAL OF AN INHOUSE TRAINING PROGRAM?

There are a lot of reasons contractors should provide effective training to their teams. Training increases efficiency and productivity. It reduces errors. It improves morale. It enhances customer experience. It attracts talent and reduces turnover.

For many business owners, however, the best answer is the simplest one. The goal of training is to equip new employees with the skills they need to go to job sites on their own and produce revenue.

Since technicians with education and experience are in short supply, contractors must find another option. A reliable, effective internal training program can be a powerful tool for developing talent quickly.

With a good in-house training system, business owners and managers can identify and recruit capable people who may lack specific technical skills

and provide focused, flexible, ongoing learning that will rapidly prepare them for the job. Contractors who can turn that into a repeatable process will have a dependable pipeline for transforming raw talent into high-earning technicians who will serve as the foundation for their company’s growth.

DOES TRADITIONAL TRAINING WORK?

Training across industries is evolving, and that includes the skilled trades. Some familiar methods no longer deliver the results they once promised. New technologies and processes are required to connect with the young audience that will help contractors close the labor gap.

Scheduled classroom training is still a popular option. But the limitations of in-person group learning are readily apparent. It’s difficult to schedule. It’s also expensive requiring significant downtime, and participants may have a wide range of experience and learning styles, making it hard for instructors to focus the training.

When employers don’t see results after investing in classroom education for their teams, they may doubt whether training is worthwhile. The problem is that they still haven’t tried effective, focused, and flexible training designed specifically to

According to a recent survey of more than 2,000 people working in the trades, 68% of employers have struggled to hire skilled workers and 33% said they could not fill open positions.

rapidly upskill employees and regularly reinforce existing skills.

Other familiar training methods for skilled trades workers include manufacturer’s training, which may include one or two days offsite. These sessions offer in-depth expertise, but techs may not encounter the specific products they learn about for weeks or months, long after the in-depth learning has worn off.

Service professionals and skilled trades workers have often learned on the job by watching other, more experienced techs. When it was the only available option, this method worked. But there are multiple reasons companies can’t rely on this approach in the 21st century.

• Techs aren’t trained instructors. The experience of doing something doesn’t necessarily prepare someone to effectively share their knowledge.

• Techs have bad habits. Without a professional, expert training program, experienced employees are likely to pass on shortcuts and bad habits that could negatively impact the quality of their work, customer satisfaction, and their company’s reputation.

• Techs need a knowledge base. Learning tasks as they arise won’t help new technicians build the foundation of basic knowledge, they need to advance their skills.

WHAT DOES EFFECTIVE TRAINING LOOK LIKE?

Truly effective training that will help skilled trades businesses close the labor gap requires flexibility, accessibility, structure, and personalization. Digital learning facilitated by experts that allows team members to train on their own, at their own pace, and on their own time, is increasingly recognized as one of the most efficient methods for upskilling new employees.

Virtual Training, Flexible Options, and Generation Z Comprehensive digital training allows new team members to systematically develop the foundational knowledge and

confidence they need to be on their own at the job site. Online simulations enable them to practice hands-on with a wide variety of scenarios in a safe environment using a computer, tablet, or virtual reality. This type of ongoing digital program also helps techs to continue adding advanced skills over time.

With 24-7 accessibility, employees have options to thread their training through workflows, taking advantage of downtimes and maximizing revenue during periods of high demand.

Digital platforms offer employers and managers transparency to assign courses, track training, and assess team members as they advance their skills.

Training itself is not a magic bullet for building the best team in your market and growing your company. Effective, targeted training with a demonstrated record of success that drives results and efficiency, however, is one of the most powerful tools contractors can employ to meet the employment challenges they face.

Not only is this kind of flexible, customized online training the most efficient way to match educational material with the range of experience and learning styles you’ll find on most trades teams, but it is also a critical tool for connecting with young talent. The tech-savvy jobseekers of Generation Z expect employers to provide personalized technology solutions. They also expect companies to empower them with skills that will prepare them to grow in their career. Effectively targeting that audience is a key strategy for closing any skilled trades gap. u

Dan Clapper is the commercial HVAC and facilities maintenance market director for Interplay Learning, the leading provider of online and VR training for essential skilled trades. He has more than 25 years of experience in HVAC service and installation, wholesale sales and distribution, and manufacturer training.

Training increases efficiency and productivity. It reduces errors. It improves morale. It enhances customer experience. It attracts talent and reduces turnover.

DECONSTRUCTING THE ‘SACRED COWS’

BY DAVID DOMBROWSKI

Over the years people have addressed the concept of “sacred cows” – a critical factor or idea that by definition is “an item that is unreasonably immune from criticism or opposition.” We see these “sacred cows” every day via policies and procedures. The types that are in place “because things have always been that way.”

More than just leading to a stale, rigid system of processes, “sacred cows” can be disruptive because we spend so much time trying to make improvements to areas that have become problematic instead of letting the old ways go.

In my most recent article1, we mentioned the Six Sigma program. Developed originally by G.E., it is a very detailed structured methodology for making significant improvements in

process management and workflow. To address the problem of a protected interest or the immovable “sacred cows”, I suggest we go further and embrace the concept of deconstructionism. To do this, you don’t try to improve a policy or idea, until you have studied the validity of the existence of that item.

In other words, look at the processes or procedures and manage them as if you were starting with a blank piece of paper.

Here are multiple real-world examples: 1. A company buried in excessive paperwork.

Several years ago, I visited a very large HVACR company that utilized a combination of computer dispatch and a point-of-sale paper invoice. As was tradition, the invoice had three colorcoded copies, white for the original customer copy, yellow for the customer file, and green for a third numerical file. The

computer kept records of all calls including a listing of the numerical service ticket for each customer. This company was buried in paperwork and had two people dedicated to maintaining and filing these documents. They were adamant that they needed this system. The reason: it had always been that way. By starting with a blank sheet of paper, I defined their goal as being able to quickly assemble the original documents of the service ticket. Then in questioning the actual dispatchers, I noted that when they had to pull history, they looked up the service ticket numbers and went right to the numerical file. They NEVER looked at the customer file. I had them completely stop creating and using a separate customer file and instead, only keep a hard copy in the numerical file. Everyone reacted wildly as if this was pure sacrilege, but after a few weeks, no one missed the file. This change not only preserved the position of one

More than just leading to a stale, rigid system of processes, “sacred cows” can be disruptive because we spend so much time trying to make improvements to areas that have become problematic instead of letting the old ways go.

Letting Go of Outdated Processes and Policies

full-time employee, but the company was then free to reassign the staff member to other duties. A final interesting twist to this story is that the only reason there were three copies was that many years ago their local printer only had three-part invoices in stock. So, this “protected interest” was established and cost them tens of thousands of redundant dollars because of an outdated printer’s stock.

2. The first impression left by a CSR can be a real moment of truth.

In looking at organizational charts and budgets over the years, conventional wisdom always had the person who answered the phones as a fairly low-paid, unskilled position. However, this is the first introduction of many people to the company and the impression left by a poor initial response leads to lost business. Jan Carlzon defined this in the early 1980s as the first MOMENT OF TRUTH or “Any time a customer comes into contact with a business, however remote, they have an opportunity to form an impression.” The person answering the phone should be the most professional and skilled customer relations person and therefore,

properly compensated. The most extreme exemplative situation I recall involved a small HVACR company in Tennessee where the owner had his mother who was in her 60s and partially deaf, answering the phones. She enjoyed that role and had been in that position for over thirty years. However, she constantly lost customers simply because she could not hear them. This was an example where the role had to be deconstructed and reassigned.

3. When software or incompatible business billing, affects the bottom line.

I have been a true believer in the service contract concept (also called memberships, energy savings agreements, plans, etc.)

However, over the years, I have discovered two items that were carved in stone and needed to be rewritten. One was that implementing a prepaid annual contract as opposed to monthly billing, improved the cash flow of a company. Proper accounting (and state law in some areas) requires you to take the payment and escrow the entire amount, then transfer only the monthly portion to revenue. or tie the payment into a related service item. Secondly, it became necessary to create a system for renewals which seemed to be very costly and over time, resulted in low renewal rates. Since I firmly believe in the model of low monthly billing on a credit card, doing it the new way reduced the cost to a minimal administrative expense, and the renewal

was the last time you thought about your Netflix account payment or did it automatically just renew?

The second issue is that many companies did not have adequate software to easily allow monthly billing. The bottom line is, never allow the software to dictate anything related to your business model. If the idea you have, works better for your business, figure out how to make it work.

Take the time to do a deep dive into your procedures. Adopt the mindset that you are starting with a blank piece of paper and be a deconstructionist. The only thing that can come of this exercise is a positive change, a better understanding of your workflow processes, and improvement. u

David Dombrowski started his career with 15 years at GE with their international leasing division and then joined Ron Smith's original team with Service America. He holds a Master HVAC license holder for North Carolina for the past 35 years and has been in the management team with ARS of Raleigh, a $30 million location.

In looking at organizational charts and budgets over the years, conventional wisdom always had the person who answered the phones as a fairly low-paid, unskilled position. However, this is the first introduction of many people to the company and the impression left by a poor initial response leads to lost business.

Differentiating YOUR HVAC COMPANY

As an HVAC professional, you know that good technicians are the lifeblood of your business. ey are on the front line every day working directly with customers. You rely on them to get the job done and to be a positive representation of your company. In today’s competitive environment, an HVAC company must separate itself from the competition to grow sales and attract the best talent

IMPROVE TECHNICIAN MORALE, AID IN RECRUITING AND RETENTION

One reason you may not have considered a uniform program is the idea that uniforms are typically boring, sti , and uncomfortable. Largely, this is no longer true – many uniform companies have taken a retail-inspired approach to their garments – creating workwear your techs would be proud to wear. Plus, they get the great added bene t of a laundry service so their workwear is always crisp and clean. A uniform program can also boost morale and help techs feel like part of a team. In a di cult labor market, keeping employees engaged and satis ed can be another competitive advantage – and a uniform program can be another great bene t to help reduce tech turnover.

BOOST YOUR BOTTOM-LINE WITH NO UPFRONT COSTS

BUILD YOUR BRAND, STAND OUT FROM THE COMPETITION

A team of technicians without clean, consistent uniforms – or without uniforms entirely – represents a missed opportunity for your HVAC business to build your brand. In fact, according to a national survey, 81% of adults would be more likely to trust a home service professional wearing a uniform 1 Giving service technicians clean, professional uniforms customized with your company name or logo is a cost-e ective way to project a positive brand image – at every job.

1 Survey conducted by The Harris Poll, November 10, 2014

By implementing a reliable uniform program, you can avoid taking the sudden nancial hit that comes with purchasing uniforms outright. Instead, you can spread the cost across the lifetime of the plan, which o en covers other costly items like garment repairs and replacements. Uniform programs also promote exibility for managers to out t newly hired techs and remove them when they leave. Instead of purchasing uniforms intermittently and in bulk, a uniform program allows you to more easily forecast how uniforms t into monthly and annual budgets.

HVAC businesses of any size stand to gain considerably from implementing a rst-rate uniform program. From retaining employees to improving brand image, partnering with a trustworthy uniform provider can provide key competitive advantages to help your HVAC company grow.

One strategy you may not have considered is to implement a uniform program to help technicians make a positive first impression, improve employee morale and make a positive impact on business results.

BEST PRACTICES FOR GETTING BETTER CONTROL OF FLEET OPERATIONS

BY RACHAEL PLANT

Fleet management involves a lot of moving parts, from asset procurement and assignments to ensuring maintenance compliance and asset safety. Since HVACR technicians are constantly on the move, it can be difficult to track productivity and monitor assets. This can be especially tricky if you’re still relying on paper processes or spreadsheets to manage fleet operations. By taking advantage of automated fleet management software (FMS), fleets can streamline operations to effectively manage fleet maintenance, improve vehicle uptime, and increase asset ROI. In this case, your vehicles are the assets, but assets can also include anything in your fleet that requires regular maintenance. Examples include trailers, tools, heavy equipment, and machinery.

LEVERAGE DIGITAL INSPECTIONS WITH A MOBILE APP

Paper-based asset inspection forms are not only time-consuming, but the time it takes can be repetitive and frustrating. These inconveniences lead to increased instances of pencil-whipping, hindering fleets from surfacing and acting on issues, and failed inspection items in real time. This can result in critical issues going undetected for weeks or months, causing unnecessary downtime and expensive repairs.

Below are some of the benefits of using a Fleet Management Service App.

Reduce frustrations around inspections and improve the efficacy of submitted reports. Digital inspections allow technicians to perform fast, detailed inspections on an FMS mobile app. Digital inspection can include checklists ranging from headlights and brakes to tire pressure, oil level, odometer readings, and more. They are also customizable, allowing fleets to

tailor their forms to different vehicle and equipment types, tools, and even Personal Protective Equipment (PPE) based on OEM specifications and/or insights gained from historical service data. With simple taps and swipes, technicians can conduct inspections with ease and quickly communicate issues, including taking photos and adding comments to provide further clarity in reporting.

HVACR fleets are a necessity to provide home service calls. Whether you have 15 vehicles, or 150 vehicles, by using fleet management software, fleet managers can improve vehicle uptime and effectively manage the maintenance of their fleet.

Completed Inspections reporting can be automatically uploaded into FMS in real-time, and failed inspection items automatically alert fleet managers to quickly kick off the maintenance workflow.

Fleets can use historical inspection data to surface recurring issues and determine their source, including inefficient parts durability, improper preventive maintenance (PM), and driver behavior issues.

Proper HVACR fleet management practices are critical for businesses to avoid unnecessary asset downtime and improve overall operations.

Data collection and historical data analysis are added benefits of digital inspections. Fleets can use historical inspection data to surface recurring issues and determine their source, including inefficient parts durability, improper preventive maintenance (PM), and driver behavior issues. Proactively determining and attacking issues at the source allows fleets to improve uptime and reduce service spending.

COORDINATE MAINTENANCE SCHEDULES & AUTOMATE SERVICE WORKFLOWS

Being proactive with Preventative Maintenance (PM) is one of the best ways to avoid downtime. However, adhering to a strict PM schedule can be challenging. To keep up with maintenance, HVACR fleets can benefit from an efficient workflow process that allows for clear communication and automated service reminders. If you’re managing your fleet’s maintenance schedules on handwritten calendars or spreadsheets, you may not realize your vehicles are overdue for routine PM. Instead of manually recording odometer readings or trying to keep up with a calendar for each asset, fleets can use FMS to set “due-soon” thresholds to notify any relevant parties (service technicians, field technicians, managers, etc.) in the app or by email, to improve PM adherence and reduce avoidable downtime.

Using FMS, fleets can closely track work orders and leverage other servicerelated data to streamline maintenance management. FMS can also help to predict when maintenance will be due based on an asset’s average usage. Utilizing FMS to schedule and set reminders for PM improves compliance and ensures your assets get into the shop on time. Fleet managers can set service reminders based on odometer readings, OEM recommendations, or asset-specific criteria, or create bulk PM schedules based on asset type to standardize PM intervals and stay organized.

For fleets still using paperwork orders – whether assets are serviced in-house or through a third-party provider – coordinating workflows and optimizing workflow processes to reduce an asset’s time in the shop can be difficult. Furthermore, trying to track repair progress or playing phone tag with the shop is a poor use of time and

often results in increased downtime and unplanned expenses. HVACR fleets can use workflow automation in FMS to expedite service and record detailed service data.

• In-House Work Orders: Fleets servicing assets in-house can use digital work orders in FMS to schedule service and track progress and related data, including technician assignment, service duration (amount of time an asset spends in the shop from drop-off to pickup), time actively spent on service (time clocked in/out), parts used, and detailed service-related costs. FMS automatically pulls upcoming service schedules for an asset and applies them as suggested tasks during work order creation, allowing fleets to consolidate service for minimized downtime. Service technicians can quickly pull up digital work orders on a mobile app and clock in and out of the job in real-time, as well as communicate with all necessary parties within the task.

• Outsourced Maintenance

Repair Orders: Fleets using a third-party provider can take advantage of an FMS’s outsourced maintenance automation (OMA) feature to help manage vendors, consolidate billing, and monitor service progress. Once a repair order is submitted, fleet managers are instantly notified and can approve or reject service. Managers can also set up auto-approvals based on the type of service or dollar amount to save time, expedite service, and improve uptime. Repair orders in

OMA allow fleets to approve service recommendations within the order to ensure everyone is on the same page when it comes to expectations and services performed. FMS automatically collects

repair order data to build robust service histories from which fleets can gain actionable insights.

COMPREHENSIVELY TRACK FLEET DATA ON A SINGLE PLATFORM

Data consolidation and accessibility are critical factors in improving fleet operations. With the rise in available fleet technologies, it’s no surprise that some HVACR fleets are already seeing the benefits of using such technologies to track assets and improve operations. While powerful on their own, integrating fleet — and even some business — solutions onto a single platform with FMS helps fleets get a comprehensive view of utilization and productivity, asset health, ROI, and more. For instance, integrating your telematics solution with FMS automatically pulls odometer readings to trigger PM reminders and alert you to diagnostic trouble code (DTC) faults.

Fleets can also integrate fuel cards with FMS to unlock a wealth of information and help better

track and analyze fuel use and spending. By consolidating both asset and fuel card data in one place, you can get an improved view of fuel economy and consumption trends, cost-per-mile,

vendor locations, number of units purchased (gallons/liters), cost-perpurchase, and fuel grade. Additionally, FMS automatically triggers alerts for fuel-related discrepancies to the surface

and reduces instances of misuse and theft. With a comprehensive view of fuel data at your fingertips, you can easily monitor each asset’s fuel economy and develop ways to reduce fuel spending.

MONITOR EXPENSES AND CALCULATE YOUR FLEET’S TCO

HVACR fleet asset procurement and maintenance isn’t cheap. Whether you’re a larger company or a small one, closely monitoring your fleet’s expenses is the only way to control spending and maximize ROI. FMS automatically collects and aggregates data into easy-toread reports so fleets can access detailed expense data in real-time. Reports are configurable and can be sent to specific individuals at custom intervals to ensure each stakeholder has the necessary information to make data-driven decisions for operational improvement.

www.TacoComfort.com

Perhaps the most important financial data point for HVACR fleets is the true total cost of ownership. Getting an accurate look at this number can be difficult if you’re spending time manually crunching the numbers, and this method is more prone to documentation errors. FMS automatically calculates your TCO to help you make informed decisions on acquisition and vehicle replacement plans, parts purchase optimization, and more.

Following these best practices, combined with accessible, actionable data at the forefront, fleets can improve uptime and ROI and gain better control over their overall operations.

u

Rachael Plant is a content marketing specialist for Fleetio, a fleet management software that helps organizations track, analyze, and improve their fleet operations.

Whether you’re a larger company or a locally owned business, closely monitoring your fleet’s expenses is the only way to control spending and maximize ROI.

BY RUTH KING FINANCE

Balance Sheet Graphs: Understanding the Liquidity Graphs

Over the past few months, I’ve written about profit and loss monthly and trailing graphs. Last month I talked about stupid balance sheet mistakes. This month I will cover the second part of the balance sheet graphs series.

First, always make sure the balance sheet is accurate (see November’s column). Next, now that you have reviewed and determined you’re your balance sheets are accurate, let’s go over the graphs.

THREE CATEGORIES OF BALANCE SHEET GRAPHS

There are three categories of balance sheet graphs: liquidity, debt, and usage. This month I’ll review the liquidity graphs: current ratio, acid test, and accounts receivable to accounts payable.

1. Liquidity Graphs Terminology Defined:

Current Ratio is defined as current assets divided by current liabilities. This ratio tells you whether profitability is increasing and whether the company can pay its bills.

Acid Test is defined as current assets minus inventory divided by current liabilities. This ratio should be at least half of the current ratio or more. If it is lower, then the company has too much money tied up in inventory.

There are three categories of balance sheet graphs: liquidity, debt, and usage. This month I’ll review the liquidity graphs: current ratio, acid test, and accounts receivable to accounts payable.

Acid test graph line:

• The rules for the acid test follow those of the current ratio – increasing the acid test generally means increasing profitability, etc.

• If the acid test value is less than 50% of the current ratio value, then there is too much money tied up in inventory or inventory is not being accounted for properly on the balance sheet

Figure 1 is an example of what the monthly graph might look like:

• If the Acid Test is >1, then look at the AR/AP ratio and Receivable days

• If AR/AP is <1 and receivable days are under 45 days, then the company may have cash flow issues from time to time, but they are not constant

AR/AP graph line:

Figure 2 is an example of what the trailing graph might look like:

• Decreasing liquidity ratios mean decreasing profitability

• The graph lines may go up and down if:

a) You receive a cash inflow (ie PPP loan proceeds)

b) You pay a huge, non Accounts Payable bill (ie a tax bill)

company is headed for a collection problem

Current ratio graph line:

• A month with high invoicing can increase this ratio. For example, if customers are charged quarterly, and this is the month for quarterly billing, the AR/AP ratio will be higher to reflect billing and no payments for that quarterly billing

• An increasing AR/AP could mean that the company is headed for a collection problem. If receivable days (covered next month) are increasing and the AR/AP ratio is increasing, the company is probably headed for a collection problem

Accounts Payable – This broad term includes cash if more than 50% of the company’s receipts are collected COD. It includes accounts payable plus credit card payments if credit card liabilities are listed separately from accounts payable. If your company has both of these situations, then the ratio is (accounts receivable plus cash) divided by (accounts payable plus credit cards).

Accounts Receivable to

c) You purchase a vehicle or another asset for cash

d) You sell an asset for cash

• Current ratio and acid test lines should be parallel

• If the current ratio and acid test lines are spreading, the company is building inventory

Generally, the liquidity graph lines mean:

• Increasing liquidity ratios mean increasing profitability

• If the AR/AP line is increasing and receivable days are constant, then profitability is increasing

• If the AR/AP line is increasing and receivable days are increasing, the

• If the current ratio is less than 1 the company probably has a cashflow shortage and is having a hard time paying payroll and its bills. Continuous profitable revenue monthly is critical to getting this ratio over 1

• If the current ratio is less than 1 but increasing, then the company is headed in the right direction. Once the ratio gets over 1, cash flow issues should ease

• If the current ratio is over 1 and the ratio is decreasing, then determine why profitability is going down (unless there has been an asset purchase, or a large non-AP bill paid). This generally means that profitability is decreasing, and you are headed for a cash flow issue

• A decreasing AR/AP could also mean that the company is getting better at collecting or is collecting more COD

Next month I’ll write about the debt and usage ratio graphs. 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 at 770-729-0258.

PROVIDED BY KEVEN PRATHER, CFBS

Chances are, you know that you likely need to tap the expertise of multiple professionals to pursue optimal financial results in your life. That’s because finding one single professional with the full depth and breadth of knowledge required to effectively address all of your wealth management needs and wants especially the complex ones — can feel like searching for the proverbial needle in a haystack.

Such a person probably doesn’t exist.

That’s why you may already be working with a diverse group of advisors — which might include wealth managers, accountants, attorneys, and other specialists.

But it’s not enough to simply hire a bunch of highly qualified professionals. You’ve also got to make sure that they’re working together, in a coordinated manner, on your behalf.

Simply put: When it comes to managing your financial life, you don’t just need a roster of players — you need a cohesive team.

THE COORDINATOR

A cohesive wealth management team has a coordinator — a professional who has a full understanding of clients’ situations and what is important to them, and who works closely with the various appropriate experts to pursue the best results possible.

Typically, a wealth manager acts as the coordinator — although accountants, trusts and estates attorneys, and others can take on this role. The coordinator draws on the skills and expertise of a broad array of specialists to deliver various wealth management products and services. These specialists provide the specific niche expertise the coordinator does not personally possess.

Example: A wealth manager may see the need for a client to have an advanced-level asset protection plan involving complicated trusts or other tools. That wealth manager would then bring in a professional who specializes in asset protection plan design and implementation.

The other members of your cohesive wealth management team whom the coordinator is managing should have four main characteristics:

• Specific expertise. They should be among the very best authorities in a relatively narrow area, such as estate planning.

• Integrity. The highest ethical standards are indispensable.

• Professionalism. In every way — from responsiveness to inquiries to ongoing learning — the specialists should embrace professionalism.

• Personal chemistry. There should be a strong level of comfort and appreciation between everyone involved in your cohesive wealth management team.

There’s also the issue of follow-through and accountability. The coordinator of your cohesive wealth management team should stay in close contact with you to ensure the various specialists working on a plan for you are delivering as promised.

One key attribute of cohesive wealth management teams that makes them so adept at pursuing great results is that they have state-of-the-art capabilities. Your cohesive wealth management team must be able to deliver the appropriate solutions to match your requirements, from the basic to the most sophisticated.

State-of-the-art capabilities have three dimensions. A cohesive wealth management team that uses these capabilities can deliver sophisticated

and even cutting-edge solutions when appropriate. Sophisticated solutions are intricate and complex strategies with many moving parts. Cutting-edge solutions are innovative ways to get the results you request that are usually novel and even groundbreaking.

STATE-OF-THE-ART CAPABILITIES

Regardless of the type of solution, a key component of state-of-the-art capabilities is exceptional implementation of any solution chosen. This means that execution is:

• Cost-effective. While not cutting corners, the ability to choose the most appropriate solutions and implement them exceedingly well keeps costs down.

• Error-free. Mistakes are exceedingly rare when it comes to high-performing, cohesive wealth management teams.

• Expeditious. Doing things on time or before the deadline is characteristic of cohesive wealth management teams.

PREFERENTIAL ARRANGEMENTS

A truly cohesive wealth management team will also provide you with preferential arrangements that enable you to receive complete and rapid access to expertise at highly advantageous pricing. There are two aspects to preferential arrangements:

1. Cost mitigation. This means that either you pay less for the expertise, products, and services you receive, or you get more for your money. For example, say that implementing your proposed asset protection plan is quoted at $20,000. The coordinator of your cohesive wealth management team might work to negotiate the

price down — perhaps by 20 percent or more. In the other instance, the coordinator of your cohesive wealth management team might accept the quoted fee but negotiate additional deliverables. For example, you pay the full $20,000 to implement your asset protection plan — but as part of the package, you can also set up a trust. The upshot: Except for instances where costs are statutory, as in the case of traditional life insurance, the cost of just about all the services and products you may use could be negotiable.

2. Jumping the line. The other aspect of preferential agreements is the ability to jump to the head of the line — or closer to it. Getting access to leading authorities, especially when you want it, can be difficult. A cohesive wealth management team will be designed to enable you to move way up in any queue.

GETTING RESULTS

Ultimately, when it comes to managing wealth, we believe that no one person can do it all at the highest levels of excellence — not even someone with extraordinary talent and drive. That’s why you need to work with top-of-the-line experts to help you address your financial agenda. Just as important, those experts need to work together — in a coordinated, comprehensive manner — on your behalf. Supported by a cohesive wealth management team, you have the potential to access state-of-the-art capabilities as you pursue the best possible outcomes for your situation.

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.

ADEY®

ADEY, a U.K- based company known for pioneering MagnaClean CMX® range, and recently rolled out in the United States and Canada, is introducing a line of innovative, concentrated system treatment formulas, designed to clean and protect older hydronic heating systems and retrofit installs. MC5™ Cleaner and MC40+™ De-scaler serve different purposes, but both were created to combat a frequently overlooked enemy of untreated hydronic heating systems – black sludge. The MC5 Hydronic RAPIDFLUSH System Cleaner, is a highperformance, advanced-strength product, designed to work with ADEY’s award-winning MagnaCleanse® flushing unit. Together, they effectively remove sludge, debris, and scale while delivering exceptional cleaning results quickly.

» www.adey.com/us

ATMOSAIR SOLUTIONS

AtmosAir Solutions announced the first installation of its Elev-Air air purification product in the Flatiron Building in New York City. The Elev-Air is an important health and wellness advance in commercial office building elevators. As employees return to offices, indoor air quality in the workplace, particularly in elevators, where people are confined in a small space, is a major concern. Elev-Air, features bi-polar ionization technology, that proactively emits ions 24/7 into elevator air helping neutralize airborne viruses, germs, mold, and volatile organic compounds (VOCs) and is tested highly effective in stopping the spread of coronavirus. AtmosAir technologies are installed in more than 7,500 buildings worldwide, including commercial offices, healthcare settings, hotels, cruise ships, universities, and sports facilities.

» www.atmosair.com

AMERICAN STANDARD HOME

American Standard offers the new American Standard Home app for on-the-go control and simple smart home integration. Home control – in the palm of your hand. The American Standard Home app gives you remote access to your smart comfort system through your connected American Standard thermostat. You can adjust your temperature, set your schedule, and view your HVAC usage from anywhere. Turn on Energy Savings to optimize your energy efficiency or to control a variety of smart products, customizing your home comfort. For more comfort, control, and efficiency – at home or away – keep things as cool or cozy as you like. With the American Standard Home mobile app, every room in your home will feel just right every time you walk in the door.

» www.americanstandardair.com/home/

A.O.SMITH

A. O. Smith announced the introduction of the Voltex® AL (anti-leak) hybrid electric heat pump water heater. This unit is a first-of-its-kind water heating solution with integrated leak detection, smart connectivity, and updated water connections for professionals and homeowners seeking a highly efficient, intuitive, and user-friendly product. The Voltex AL model leads the water heating industry in efficiency, featuring the highest overall Uniform Energy Factor (UEF) of 4.02 with the 66-gallon unit and the highest 50-gallon UEF at 3.8. It is also available in an 80-gallon model. The unit can save homeowners up to $521 per year on utility bills when compared to a standard electric water heater.

ENERGY STAR® certified, the product allows homeowners to leverage rebates and tax credits for additional savings.

» www.hotwater.com

RECTORSEAL®

RectorSeal LLC., manufacturer of quality HVAC/R and plumbing accessories and a wholly owned subsidiary of CSW Industrials, Inc. [NASDAQ: CSWI], is pleased to introduce its Safe-T-Switch product line: The patent-pending SSW Multipurpose Water Sensor. The SSW Water Sensor is placed directly into a metal or plastic secondary drain pan or on a floor. The SSW’s logic circuit continuously samples the sensor probes for the accumulation of water and determines if its presence is transient or permanent. Installation of the unique, puck-style SSW Water Sensor is easy, and the weight of the unit offsets the need for mounting. The unit is UL 508 recognized and comes complete with all wiring required for installation.

» www.rectorseal.com

ROTOBRUSH

Designed with ease in mind, the new Roto-Vision has been upgraded to include a portable lightweight stand. The 7-inch LCD color monitor lets you record so you and your customers can see the cleaning process deep inside the ducts. Most customers are amazed to see how much debris has clogged up their air ducts! With the improved battery-powered operation, the need for additional cords on the job has been eliminated. The Roto-Vision Video Inspection Camera can assist with client education, providing contractors with a competitive edge and earning clients’ trust.

» www.rotobrush.com/products/ video-inspection-cameras/ roto-vision-video-inspection-camera/

QUESTIONS >> with AARON SALOW

1. Since you are in Nashville, is there a place you go to unwind, that is quintessential Nashville?

Love Circle – a huge hill that overlooks the city. Once, after a big fundraiser with my co-founders, we sat there together and celebrated with a case of beer, taking it all in, while overlooking the city.

2. What is your opinion of virtual reality training?

Phenomenal. It’s cost-effective and appeals to Gen Z, those born between 1997 and 2012. We’re announcing a big partnership soon that will create more full-picture solutions for techs where they can learn in-classroom or via virtual training.

3. What was the impetus for starting a software company specifically designed for field services?

I grew up across the street from my grandparent’s farm in rural Michigan, an area predominantly about farming, manufacturing, and construction. Growing up in that bubble, where you were proud of a hard day’s work with your hands, was great. The impetus emanates from that foundation.

4. Who is your biggest influence, living or deceased?

Easy – my dad. Whether in business or as a husband, or a father, his lessons reverberate still. Be servant-hearted. Be kind. As a parent, I trust these lessons will stick with my kids, because they stuck with me.

5. If you could pick your dream dinner guest, who would it be and why?

Mike Rowe, not only because he does the blue-collar dirty jobs, the micro foundation stuff, which ties in, but he is fascinating and intelligent. And, we have a lot in common.

6. What tops your list of planned achievements for XOi in 2023?

There are big, flashy deals from a revenue perspective – the ones that get everyone's attention. But I am most proud of one of the smallest deals, our partnership with the United Association. It’s the kind of work that represents more of what I want to do in 2023. Last spring, we announced that the United Association will be leveraging XOi to validate infield training for over 300 training centers for HVAC techs across North America. It validates all the hard work.

7. If software like yours is one solution to help combat the labor shortage issue, what is another way that might help owners recruit top candidates?

Generation Z is accustomed to a more virtual learning style. We are serving a Tik-Tok generation where 27-second videos are the attention span. Adopt a recruiting solution that acknowledges this learning style.

8. What is the mission of XOi technologies?

The mission of XOi is to empower a world in which people and equipment are connected. And we aim to be the best workplace in the industry.

9. What has been the biggest challenge you have faced?

As is true of most of the bests in life, people are the best part of being in business but are also challenging. When things work, there's no better feeling than working with people from diverse backgrounds and perspectives to accomplish a goal.

10. What have been the most important strides in 2022?

Continuing to fortify our leadership team. We have continued to add people smarter than us. Watching this growth phase has been gratifying. Also, we released our Journeyman product, a dream of mine since day one. The premier Journeyman™ Platform is a product that delivers field service professionals a first-to-market solution that drives operational efficiency and identifies untapped revenue opportunities. It delivers insight through smart diagnostic solutions directly from any workflow in XOi Vision, data reporting, and live on-the-job virtual support and training.

11. Did the Pandemic affect your company?

We were terrified at first. But we accelerated growth which says a lot about the trust we’d already built. I don’t have a crystal ball, but the core things that made us a good field service business sustained us.

12. Without giving away trade secrets, where do you see the future of technology in HVACR?

Again, it will come down to the connection between people technicians, and equipment. The skilled trades, supply chains, or any uber model – or multisided platform business model with an interface to connect teams and customers –or IoT. All these things will shift once that connection starts to become more ubiquitous.

13. If someone is still operating the business on paper, what advice would you suggest to transition?

According to the latest data, 40-45% of contractors are still on pen and pad. About a year ago, it was 50%. It's crept down, but we still meet hundred-million-dollar annual revenue businesses operating on pen and pad. I’d say, set a good foundation. Create a culture that accepts good logic and be prepared to provide the why. Operate within a culture where your people accept, well-structured, well-thought-out reasons. If not then address this before transitioning.

14. What are the trending topics you are hearing lately from HVACR clients?

I hear about parts and equipment challenges and finding good people. The other trend is a move toward performancebased contracts.

15. If you could give the owner of an HVACR company one piece of advice, what would it be?

It goes back to the culture of things including change management. More than catering the occasional potluck dinner, understand things like the difference between continuous use versus episodic use tools – one that a technician finds value in using daily versus one used sporadically. Creating better change management means knowing how the culture and change affect the team.

16. Your company places focus on training at your company, does it give XOi an advantage over other software competitors?

Absolutely. We work with technicians’ NPS (Net Promoter Score) versus executive NPS and talk about it weekly. Our mantra is, ‘We put ourselves in our technician's work boots.’ Understanding the technician’s experience is our number one core value.

17. What do you think the biggest obstacles to recruiting and training are?

Not knowing the company culture and a lack of focus on workforce development. To offset obstacles, create a path to career development for recruits. Offer a clear path of how to move up at every interval with the expectations set from day one and a strategy. Then the recruit has a vision and can see the possibilities.

18. How involved are you with consumer feedback (good or critical), if at all?

Like most good founders, I will see a thousand positives, and at the first negative, I’ll think, ‘We need to fix this.’ We review NPS comments and customer Quarterly Business Review (QBR) feedback weekly. It drives decision-making significantly. I’m very involved.

19. Is there ever a world where you would advise the owner against upgrading their technology?

Absolutely. Before upgrading, address culture and change management first. Then look at continuous versus episodic. Make sure these uses are adding value for admins, technicians, and customers.

20. Assuming XOI is still in the space, describe the future of HVACR technology and software in 2028.

It's probably an evolution of the discussion around the connection between people and equipment. For XOi, I’d love to see full conversational AI interacting with technicians, whether through a visual combination of things, or the ability to converse fully with a tech to solve problems.

Managing Editor, Heather Langone, sat down with Aaron Salow, CEO and co-founder of XOi Technologies, a complete curb-to-curb communication tool for techs. We discussed the connection between people and equipment, training, and the future of HVACR technology.

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1 Trane received the highest numerical score in the proprietary Lifestory Research America’s Most Trusted® HVAC Brand study for years 2015, 2016, 2017, 2018, 2019, 2020, 2021 & 2022. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.

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