Must-Do, Need to Do, Nice to Do Terry Tanker 5
Solve the Marketing Puzzle Will Merritt 10
What to Look for in an HVACR Training Program Emily Newton 13
Streamline Communication for Better HVACR Management Alan Smith 16
The Importance of Family Governance Keven Prather 20
HVACRBUSINESS.COM AUGUST 2022 / VOL.17 / NO.8
HUMAN CAPITAL MANAGEMENT & EMPLOYEE RETENTION Page 6
ALSO INSIDE » Getting Ready for Fall – Don’t Make These Mistakes Ruth King .......................................19 Product Focus ............................................................. 21 20 Questions with Beth Rovazzini owner of B&W Plumbing and Heating.................... 22
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CONTENTS
AUGUST 2022 / VOL.17 / NO.8
F E AT U R E S
6
Human Capital Management & Employee Retention
Human Capital Management strategies that can increase employee retention rates and save money Heather Langone
10
Solve the Marketing Puzzle
13
What to Look for in an HVACR Training Program
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D E PA R T M E N T S
Learn top marketing hacks from an HVACR marketing maven with decades in the industry Will Merrit What to look for in an HVACR training program to prepare for real-world employment Emily Newton
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Publisher's Page Terry Tanker shares tips on a more effective way of prioritizing daily task management By Terry Tanker
21 22
Product Focus 20 Questions with Beth Rovazzini owner of B&W Plumbing and Heating
Streamline Communication for Better HVACR Management Improve business by streamlining external and internal communications Alan Smith
C O LU M N
19
Getting Ready for Fall – Don’t Make These Mistakes
20
The Importance of Family Governance
Our resident financial columnist brings the last installment in the Stupid Mistakes series Ruth King Learn about family governance to assure your wealth legacy lives for future generations Keven Prather
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THE HVACR MANAGEMENT MAGAZINE
TERRY Tanker Publisher ttanker@hvacrbusiness.com HEATHER Langone Managing Editor hlangone@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com
ADVERTISING STAFF ERIC Hagerman National Sales Manager Tel 216-409-3246 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com
BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr VP Operations bkerr@hvacrbusiness.com
HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S. The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information. Copyright©2022 by JFT Properties LLC. No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees. This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication. The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions: 1 year $48; 2 years $75; 3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www.hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Copyright ©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) POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.
31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)
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PUBLISHER’S PAGE
BY TERRY TANKER
Must-Do, Need to Do, Nice to Do
T
he business climate around the world is complicated. For the past two and a half years, employers have struggled to fill positions and still do. Today owners face additional challenges including inflation, $5 gas, rising interest rates, political turmoil, the war in Ukraine, and much more.
Understanding the difference between critical and non-critical task management
Owning and leading a company has never been easy. And, as the old saying goes, “If it was easy anyone could do it.” But that’s just it, not everyone can. This job is only for unique individuals who can tolerate risk, are adaptable, communicate well, lead others, are organized, and much more. Adopting a disciplined practical approach to managing your business that revolves around the leadership you provide, is essential. There is a principle referred to as the 80/20 rule, which, in its simplest form, states that 80 percent of your results are gained through 20 percent of your efforts. If you can identify the 20 percent of your task list that’s most important now, you can concentrate on areas that will bring you the greatest gains.
HIGHLY EFFECTIVE TASK MANAGEMENT Years ago, when we started HVACR Business, my good friend Ron Smith (who was an editorial advisory board member at the time) offered a suggestion. He recognized that I was struggling to manage all the different aspects of a startup and gave me a straightforward method that would help me differentiate between those things that are urgent and need immediate attention versus those items that are important but don’t need immediate action. And it helped me. Making use of this simple technique may help you more effectively lead your company in the coming months. Many managers find it difficult to communicate important business goals in real-time, so you may consider sending your finished outline to staff members.
WHAT ARE MUST-DO TASKS? Items in this circle are critical and need your attention today. The items in this circle are the key to running efficiently and profitably. Look at your financial statements every day. This group includes P&Ls, balance sheets, daily/ weekly sales, accounts receivable, and your budget versus actual numbers. Also, make sure to bill after the job, don’t
wait a week or more to bill customers or collect COD. Review accounts payable and your bank statements. Spend ninety minutes a day on your financial review, it really shouldn’t take you any longer than that. Additionally, you should be working on recruitment and retention every day. Long term, this is the only solution for hiring and retaining talent for your business – it takes work.
WHAT ARE NEED-TO-DO TASKS? Items in this circle are on the shortterm horizon and should be moved to your Must-Do circle within a week. Formally communicate weekly with your management team to review progress on “need to do” tasks. (Ruth King has been kind enough to provide a weekly communications meeting template. If you’d like it, please go to our download center). Work on the marketing and advertising that drives phones to ring. Track what works and what does not. Where are your leads coming from? Are you profiting from the dollars you are spending?
WHAT NICE-TO-DO TASKS? Items on this list are long-range, at least a month out or more. Don’t fool yourself, if items aren’t critical, then they belong in this circle. Some of these tasks may include active referral programs, contests for enrolling maintenance plans, or other things on which you would like “buy-in” from team members, as well as visiting customers/field employees on the job.
EFFECTIVE TASK MANAGEMENT LEADS TO INCREASED PRODUCTIVITY This type of effective task management is not about adding more tasks, but instead, it is the practice of giving tasks value and ranking them from most critical to elective. If you can adopt this daily practice and encourage your employees to manage projects the same way, eventually your team will emerge more empowered and productive. Once you make a habit of ranking tasks, you can decide whether to assign the task a critical value and get it done immediately or as a study in Harvard Business Review1 says, decide instead to, “drop, delegate, or redesign” the project. Either way, this method of task management empowers you and your team and eliminates a company culture where panic and procrastination are the main motivating factors. Make Time for the Work That Matters (hbr.org)
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HUMAN CAPITAL MANAGEMENT & EMPLOYEE RETENTION
Tips for HVACR Management to Increase Employee Retention BY HEATHER LANGONE
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ost of us have heard managers exclaim, “Our employees are our most valuable assets.” But what does that mean exactly? While it’s true that most executives appreciate the cost of employees in a cost vs. value analysis way –i.e., benefits, training, salary, bonuses – they don’t always fully appreciate the value of increasing employee retention. The only exception would be with sales employees where the financial benefit of a highperforming employee, is tangible and easily quantifiable. But this very often intangible
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In this post-pandemic age, amid labor and supply shortages and an ever-evolving workforce, understanding the importance of HCM and the financial impact of high employee turnover vs. solid retention rates, has never been more crucial. “human” value that socioeconomic analysts refer to as the Human Capital quotient, is less extrinsic. As it turns out, there is an
HVACR BUSINESS AUGUST 2022
entire human resources system dedicated to Human Capital Management (HCM). And, today in the HVACR industry, in this
post-pandemic age, amid labor and supply shortages and an ever-evolving workforce, understanding the importance of HCM and the financial impact of high employee turnover vs. solid retention rates, has never been more crucial. Just Capital published in-depth report on the importance of human capital titled, The Current State of Human Capital Disclosure in Corporate America: Assessing What Data Large U.S. Employers Share.1
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For our purposes, the following findings sum it up well: The connection between jobs and business performance has crystallized in the last 18 months. Since 2015, JUST Capital has surveyed more than 120,000 Americans on what they consider most important to just business behavior. And, year over year, the American people make it clear what they want U.S. companies to prioritize above all else: their workers.
Since there is often a discrepancy in what an owner deems fair compensation vs. an employee’s assessment, management must reevaluate compensation packages regularly.
TIPS TO INCREASE EMPLOYEE RETENTION IN THE HVACR INDUSTRY One way that HVACR contractors can combat the labor shortage and the lack of qualified candidates, is to continue to retain their best workers. This requires an understanding of and potentially a need to address any current employee concerns. Below are three top tips on ways to demonstrate your real commitment to human capital management and increase your employee retention rates.
1. COMPENSATION MATTERS Many years ago, I worked in the hospitality industry in New York for a large, very successful hotel chain. At that time, unions were threatening departmental takeovers industry-wide in the Tri-State area. The non-union hotel chain at which I was employed, made the collective decision to compete with the unions by increasing compensation and benefits across the board. The company decided to pay nearly two dollars more per hour for shift workers than their union counterparts. They also implemented management training programs and increased benefits and travel perks for all employees. My personal opinions about the importance of unions aside – the plan worked well. I recall that our company was one of the few hotels in the area that remained independent of the hotel unions for years, and where almost all employees expressed gratitude for their jobs. I can state this with confidence because I was a manager at the time, and we were consistently checking in via employee feedback and HR employee surveys. Compensation matters, it does. However, since there is often a discrepancy in what an owner deems fair compensation vs. an employee’s assessment, management must reevaluate compensation packages
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regularly. Since low wages can be a factor that greatly affects retention, when measuring the impact on the profit bottom line and deciding whether to raise wages, CEOs should do their homework first. In making the decision, make note of this fact – the cost of employee turnover cumulatively may justify an increase in employee wages long-term depending on your company budget. Look at the following statistics regarding the long-term cost of turnover. An article in SNIPS titled, Understanding the Industry Costs of Worker Turnover2, calls the rate of voluntary turnover in HVAC, “whopping”. According to the piece, that can be costly: In 2015, the average employee turnover rate for service companies like those in the HVAC industry was 12.5% — and a whopping 70% of those turnovers were voluntary. Studies have found that for entry-level minimum wage employees — those making $8 an hour — it can cost a company up to $5,500 to replace them. On average, an entry-level worker is going to cost between 30-50% of their annual salary to replace. For a high-level executive, it can cost a company 400% or more of that person’s annual earnings to train a suitable replacement. For small businesses, losing a highly trained workforce can be devastating.
2. OLDER WORKERS VERSUS GENERATION Z & MILLENNIALS One of the ways to understand retention is to do employee surveys and regular check-ins with the staff. Find out what matters to your team, because it may differ from what the industry dictates. However, it’s good to reference data and trends if you are hiring or hoping to keep the team you have. As trends go, older workers indeed do care about compensatory packages more than millennials and Generation Z. While Gen Z still has income concerns, much of what they care about goes beyond salaries. Watching their parents struggle in the 2008 recession, made this generation and the one just before, or millennials, more practical and vigilant about the companies they align with. Millennials are concerned with the future (as in retirement savings plans and company matching). Both Gen Z and Millennials greatly value a good work-life balance. Not only that, but the younger generations grew up entirely on social media. They are accustomed to referring to YouTube university to get answers quickly. And they know how to find information and alternative employment options fast. Company loyalty doesn’t hold a high value for this generational employee. Many young employees desire flexibility and more vacation days including flexible
PTO, as well as 401K matching. And Gen Z and Millennials pay close attention to company ethics and values. They may ask questions that have nothing to do with money, i.e., does the company value energy alternatives; does it care about the climate and regulatory changes moving forward; they may ask about sustainability ethics; others may question whether there are community volunteering and philanthropy programs as part of the company culture; and/or does the company have a diversity & inclusion policy. It’s important to know your current and potential team members’ personal “stay with the company deal-breakers” especially when you have a younger workforce or a goal to attract younger employees. Gen Z workers tend to start looking for new employment as soon as they become unhappy. Remember, you only need to ask to find out what your team cares about and what must-haves might lead to better retention rates. There are intangibles beyond pay and benefits that determine how long an employee stays loyal to a company. So, if your business model cannot sustain higher wages currently, where can you show your current team more value, recognition, and appreciation? If you endeavor to value human capital as much as you value tangible capital, this will help to increase retention — at least according to the varied and ubiquitous studies I've read over the past few years.
3. ENCOURAGE EMPLOYEE ENGAGEMENT Many of the HVACR owners I have talked to during my tenure as managing editor point to one of the contributing factors to their success as having a direct correlation to employing a team of loyal, enthusiastic, and engaged employees. Therefore, it’s important to check in often with your team so they remain happy. Get employee feedback either in person or through company surveys. Sponsor events that will foster team spirit. Be sure to read Beth Rovazzini’s 20Q in this August issue! Rovazzini references her team as “like family” and she has mastered the art of retention since some of her members have been with the company for two decades. But she embodies a real commitment to it. She spoke of encouraging her older workers to bond and share work and life experiences with the younger recruits. This approach to team engagement led to continued on page 8
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derives satisfaction from their work and feels their value. Engaging one-on-one with employees consistently will help forge a clear communication path toward improvement. Also, implementing recognition programs, meetings, training programs, and team events that allow
continued from page 7
success. The same premise can apply to your company, or any business at any level, whether you are a start-up or a 20-year-old HVACR company. The goal for employers should be to ensure that each employee
employees to engage with other team members and grow with the company, will increase company morale and even allow some older employees to act as mentors to new technicians and apprentices. Other benefits that can balance out compensation:
• Demonstrate a viable career path. An employer should provide career development opportunities for employees to ensure that there is room to grow with the company. • Provide training opportunities for employees to learn. Employees should have opportunities to train and gain skills at all levels. If you don’t have training policies or programs in place, it might be a good time to review this strategy. • Encourage Work-Life Balance. Whether it’s flexible work schedules or encouraging employees to take their vacation days, showing that you value work-life balance is key. Employees who have more control over their work-life balance tend to experience higher fulfillment from their work. This can lead to lower turnover. Understanding the value of Human Capital Management at your company is a positive step toward business success. The next step is to track and deliver an increased rate of retention. In that way, you will attain competitive growth and expansion into the future no matter what the economy dictates.
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The goal for employers should be to ensure that each employee derives satisfaction from their work and feels their value. Engaging one-on-one with employees consistently will help forge a clear communication path toward improvement. I’ve included a bonus below, a tool from Hubspot from an article, How to Calculate Employee Retention Rate. It includes a formula so you can figure out your rate of retention. According to the platform:
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The formula to calculate your employee retention rate is rather straightforward. You simply divide your total number of remaining employees during a set period by the total number of employees you began with during that same period and multiply the number by 100. For example, let’s say you began Q1 with 43 employees and finished Q1 with 39 employees. Your equation would look like this: (39 / 43) x 100. And your employee retention rate would be 90.69%, or 90.7% rounded to the nearest 10th. If you found this article helpful, please comment and send your opinions to the editorial team at hlangone@hvacrbusiness. com. We value your readership and your feedback! u
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Many young employees desire flexibility, and more vacation days including flexible PTO, as well as 401K matching. And Gen Z and Millennials pay close attention to company ethics and values.
EMPLOYEE RETENTION RATE
Heather Langone is the Managing Editor at HVACR Business Magazine and a regular features and column contributor.
Just Capital, Emily Bonta, Catrina Notari, Alison Omens, Aleksandra Radeva, Ian Sanders, and Kavya Vaghul contributed to this report. https://justcapital.com/ reports/the-current-state-of-human-capitaldisclosure-in-corporate-america/ 1
SNIPS Magazine, Understanding the Industry Costs of Worker Turnover, https://www.snipsmag.com/ articles/94487-understanding-theindustry-costs-of-worker-turnover 2
Total Number of Remaining Employees x 100 Total Number of Original Employees
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SOLVING THE HVACR MARKETING PUZZLE, PIECE BY PIECE Breaking down HVACR Marketing, A-Z BY WILL MERRITT
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arketing for your residential HVACR company has become complex in recent years. As an owner, where do you begin? What may have worked just a few short years ago, may not be the best platform today. Let’s break down the puzzle, piece by piece and then we can put it all together.
STEP 1 Evaluate Your Company and Your Current Marketing First and foremost, every heating and air company is unique in its processes and its appeal. So, it is difficult to dole out a
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Your website is your online storefront. Customers always window shop before they buy, so it better look good! one-size-fits-all marketing strategy. Each company is at a different stage of its life cycle, and therefore, may have varying needs than that of another company of a similar size. To put the marketing puzzle together and create your perfect matrix, there are a set of questions that need answering. Until you can do that, you shouldn’t finalize a marketing plan. However, once you can confidently address
HVACR BUSINESS AUGUST 2022
your marketing goals and identify your competitive edge with clarity, you will be closer to having a cohesive, successful marketing strategy.
WHAT ARE YOUR BUSINESS GOALS? • How long do you plan to own and run your business? • Do you have yearly sales goals broken
down by department? (Service, Maintenance, AOR) • Are you measuring Key Performance Indicators (KPIs) to determine how to stack up against the industry’s best? Answering these questions will help shape your seller identity which will help you find your competitive edge. For instance, if your HVACR business is intended to be a short-term venture, and you plan to make the business profitable (in the short run) and sell without encumbrance, then your marketing plan may look different. If it’s long-term, you will need short benchmarks and a longterm plan to grow.
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WHAT DOES YOUR CURRENT MARKETING LOOK LIKE? • What social platforms are you using to reach your target customers? • Does your company have a modern website? • Are you using a lead generation platform?
YOUR WEBSITE IS YOUR HVACR STOREFRONT In today’s digital world, we start with the website first. Your website is your online storefront. Customers always window shop before they buy, so it better look good! This step is foundational. Unless you are a programmer, I wouldn’t suggest slapping up your site. Use a professional, even if you can only afford a college student to design it. Back-end programming and design needs to be done; the creation of URL links must be SEO and clean (meaning without extra symbols like #%4 in the URL); page navigation and geo-links should be included as part of the design. Make sure this is done well. Three Digital Must-haves for Your Business and Website: • A modern, mobile-friendly or responsive website (Mean it looks presentable on all devices: desktop, laptop, iPad, and phone) • Paid Services (Search Ads, Display Ads, Google Guaranteed) • Social Media: Facebook, Twitter LinkedIn, IG (Organic & Paid)
Does your company have a well-defined Unique Selling Proposition (USP)? How do you define that? Ask yourself, ask the team, “What sets us apart from the competitor across town?” blind and hoping their “good enough” job is good enough. However, if you want to attract more business and grow, you need to define what your company offers and who is your target buyer.
• Trust – consumers must trust an HVACR company to make a home visit. • Value – consumers are looking for “value” in their HVACR purchase, and that does not always mean the cheapest price. Homeowners typically only purchase a new heating and air system on average 2.5 times in their lifetime. • Fixed Now – Consumers are looking for fast service. Today’s consumers will not wait for you. Often, this trait will trump trust and value when the thermometer reaches 95 degrees.
STEP 2
STEP 3
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continued on page 12
In my research, I have identified three distinct traits that resonate with homeowners when they are looking for the right HVACR contractor.
Define your contribution to these tasks when you are identifying your company’s USP and core brand.
Does your company have a well-defined Unique Selling Proposition (USP)? How do you define that? Ask yourself, ask the team, “What sets us apart from the competitor across town?” You may not have it defined, but if you pay attention, you will arrive at an answer. Potential customers are seeking certain traits from an HVACR company. It may be stellar customer service, location, discounts, 24/7 service, specialization, or all of the above. Figure out your edge and then decide who your customer base is and sell to that. Most companies make the mistake of flying
• Google Guaranteed or Local Service Ads – These are considered a “pay per lead” ad. These show up at the top of the Google search results. Your
FULFILL THESE HOMEOWNER WANTS AND ASKS
Once you have identified your company goals and the current state of your marketing efforts, you can begin to put the marketing puzzle together.
The Big Picture: Who Are You?
working, and their home is uncomfortable. So, the quicker we can resolve their problems, the quicker you are going to gain new customers.
2. Paid Advertising to Drive Traffic Now that you have a modern website, it’s time to drive visitors to it. PPC or “Pay Per Click” Ads are a very effective way to get your heating and air company at the top of the search results. Several types of PPC ads will drive visitors to your website.
Putting it Together — The Digital Piece 1. Website Your digital marketing starts and ends with your company’s website. It is often the final touchpoint before the consumer contacts you. Your website needs to give the consumer exactly what they are looking for when they land on it. Remember, your customer is not casually shopping for your services. They are typically there with some distress or issue that needs addressing. Their air conditioner or furnace is not
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Again, it doesn’t matter how much you spend on advertising if it doesn’t convert and lead to new business.
company does not get charged unless the consumer calls you. Originally, Google had these listed as “fixed price per lead”, but now it is a fluctuating cost that goes up and down based on demand.
the consumer clicks your ad, your company is charged. The cost per click is dependent upon what you and your competitors are willing to pay.
• Search Ads – these are often called “text” ads. They show up just below the Google Guaranteed ads and are considered a “pay per click” ad. When
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• Display Ads – These are more to create awareness or “brand building” for your company. These ads will show up on partnering websites at the top, side, or bottom margins, on apps, or even on games. 3. Social Media Today, your business must show up where the “eyeballs” are! Consumers are infatuated with social media. Anything from posting funny videos to seeing pictures of their grandkids gets shared. You may ask, “Why would a consumer look for an HVACR contractor on social media?” Well, they aren’t, but if they see your ad, and they need the service, they’ll click, the same way that a customer isn’t watching TV or listening to the radio will find a brand. If a slogan sticks, they are likely to get business. Also, if you have a consistent presence, a consumer will remember. So, you need to be where the consumer’s attention is today. Consistent organic posting to social media outlets like Facebook, Instagram, Twitter, and LinkedIn will drive branding for your company.
THE TRADITIONAL PIECE When we refer to traditional marketing, we are speaking about radio, television, and billboards predominantly. These platforms are some of your best branding assets and top-of-mind awareness tools for your HVACR business. We direct clients to focus on their digital piece first (website, PPC, or paid ads, and social), and if their funds allow, we allocate dollars to traditional branding as well.
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Remember to focus on the “lead generation” tools first. Branding through traditional media is a big piece of the marketing puzzle, but we see many companies focusing the majority of their budget on these platforms. The consumer is
not thinking about your services until their air conditioner or furnace breaks. Where do they go to find you? Today, consumers go straight to the internet. So, if you are not present on Google Maps, PPC ads, or local service ads, they may not find you at all. There needs to be a balance between branding and lead generation marketing for our industry.
DECIDE WHAT’S RIGHT FOR YOUR COMPANY While I have provided the template to put together the pieces of your marketing puzzle, there is no right or wrong answer. The final “right move” depends on what is right for your company. In a perfect world, your HVACR company would have a marketing budget to cover everything, but that is usually not the case. What you need to monitor is your balance of branding vs. lead generation. A company’s branding helps consumers identify their business when they are taking action to buy. When your potential customer is searching “AC repair” or “heating and air companies”, they need to recognize your business when you pop up in the results. The balance between the two varies from a 50/50 spread to 2/3 lead generation and 1/3 branding or possibly the reverse. It depends on your messaging, the age of your company, and how efficiently your organization captures the leads. Again, it doesn’t matter how much you spend on advertising if it doesn’t convert leads into an actual business. This ties in directly with my next article, “Simple Techniques to Maximize Your Marketing Efforts”. Then, I’ll get into the little, extra one-percenter tips, that make a huge difference. u
Will Merritt is the managing partner at Effective Media Solutions in Charlotte, NC. He has more than three decades of experience creating marketing solutions for business owners. For more, visit http://myeffectivemedia. com or email will@myeffectivemedia.com.
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WHAT TO LOOK FOR IN AN HVACR TECH TRAINING PROGRAM Finding the best HVACR training to Prepare for Real World Employment BY EMILY NEWTON
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wners and managers of HVACR companies know that staying successful means having well-trained workforces with the most up-to-date knowledge to meet customers’ needs. Similarly, they’re often looking to hire more technicians to cope with labor shortages. In such cases, they want assurance that candidates have received a high standard of training and education. Following are some of the main reasons why decision-makers at HVACR businesses need to know what to look for in technician training programs.
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If the instructors have longstanding and reliable reputations, they’re more likely to have professional approaches and teach students the practical information they need to apply throughout their careers. IN-DEPTH CONTENT AND OVERALL QUALITY The content and overall quality of the material are some of the top factors to evaluate in an education program for HVACR technicians. You should request
to review curriculum samples or even observe a class in session to get a better idea of what and how students learn and how they’re exposed to the material. Many HVACR technician courses also offer online content. These programs
are convenient allowing students more flexibility and reducing the travel burden associated with enrolling in a traditional training program. Trevor Matthews is one example of an HVACR training specialist who practices in the virtual realm. He has offered courses in his Refrigeration Mentor program since September 2021. There, they focus on HVAC and carbon dioxide refrigeration for supermarket systems. Matthews admitted to experiencing initial challenges with developing and teaching content intended for students continued on page 14
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Any worthwhile HVACR tech training program should also cover consumer options that include smart functionality.
who attend class virtually. However, he took the time to explore options and see what worked to keep online student engagement high. It’s also a good idea to research course providers and individuals to learn about their backgrounds and experience. If the instructors have longstanding and reliable reputations, they’re more likely to have professional approaches and teach students the practical information they need to apply throughout their careers. The same is true for the companies offering the courses. People evaluating their options should prioritize accredited programs over non-accredited cheaper alternatives because any reputable employer will require education that meets certain criteria set by the accreditors.
content. The material should also prepare trainees to engage with future business and residential customers about the things that matter most to those clients.
REAL-WORLD TRAINING TO MEET MODERN HVACR EXPECTATIONS
For example, a well-ventilated workplace can save energy and enhance1 indoor air quality. Some clients will also need breathable compressed air systems for employees engaging in activities like sandblasting or applying finishes. Someone who completes an HVACR tech training program should be well-equipped to recommend products to meet clients’ specific needs. That’s true whether the goal is to remove indoor contaminants or to improve employees’ indoor air quality at work.
It’s not enough that students get accurate information from a program’s
Any worthwhile HVACR tech training program should also cover consumer
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HVACR BUSINESS AUGUST 2022
options that include smart functionality. Besides adding convenience, smart appliances and devices can increase a home’s value2, making it more attractive once on the market. Well-trained HVACR technicians should be able to identify the advantages of using such devices such as how a person can “eco-set” a smart air conditioner or heater to save the most energy and/or learn how to control it remotely. HVACR company leaders assessing tech training programs should ask themselves if the lessons learned will give students the real-world industry knowledge they need to become trustworthy resources for their customers, whether they plan to work in the commercial or residential sectors. Content material should have its finger
on the pulse of the industry and should track trends and progress. Chosen well, a graduate can then finish a course and feel capable of discussing applicable matters with customers upon graduation. A new hire’s ability to engage in such relevant discussions directly after training and graduation will reflect well upon the company and its CEO.
HANDS-ON EXPERIENCE, PREREQUISITES & OUTCOMES It is important to check that potential training programs for HVACR technicians blend book-based learning and lectures with hands-on experience. Students will then likely be able to matriculate what they’ve learned into the workplace and feel more confident when applying those skills in the real world. It’s also necessary to evaluate the prerequisites for acceptance into these training programs. Some courses accept people with no previous experience. Other HVACR tech training providers include specific high-risk groups in their recruitment process, such as previously
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incarcerated persons and military veterans. These programs are often well supported by the community and philanthropists because they aim to create brighter futures for individuals who may otherwise have difficulty finding employment in the wider job market. Some training programs also offer graduates the promise of industryrecognized certifications or guaranteed jobs after completion. One trade-skills apprentice offering at the University of Virginia lets students work on campus after they finish the four-year program. A current participant in the HVACR division said he liked how the work let him sharpen3 his problem-solving skills. Before becoming a student, he helped an HVAC technician in his local community while still a teenager. Participants will be more likely to take part if they can recognize associated benefits that help them visualize future careers. Many people are ready for career changes but aren’t sure how to make the transition. An HVACR technician training program that removes perceived
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Educational options like this set students up for longterm success in the HVACR industry, and over time, attract even more candidates to the trade, some of whom may have never considered it as an option.
A robust HVACR training program can prepare participants for rewarding, stable, and financially appealing careers. Educational options like this set students up for long-term success in the HVACR industry, and over time, attract even more candidates to the trade, some of whom may have never considered it as an option. u
barriers and provides students with enticing rewards, will have a better chance of delivering.
CONSIDER CREATING A TRAINING PROGRAM WITH KEY COMPONENTS There are some common denominators when reviewing the top characteristics of the most reputable HVACR tech training programs. Company owners who are familiar with these and know how to recognize the top components might endeavor to create their own programs. While it is a major undertaking, it may help company representatives to increase their impact on the industry and the community at large. When they take the
reins to have a direct influence on how and what students learn, it’s easier to ensure that the new employees will acquire the necessary skills to succeed in the industry. This not only helps companies and employees but has a greater macro-impact on the industry. Launching an educational initiative is also an excellent way for an HVACR company to increase profitability. Once the program model is established, the CEOS and decision-makers should plan the most appropriate ways to market the program. This might include budgeting and planning social media campaigns, partnering with local high schools, and holding open meet and greet events for prospective students.
Emily Newton is the Editor-in-Chief of Revolutionized, an online magazine discussing the latest industry innovations and trends. To learn more, visit https://emilyjnewton.com/
Breathing Air Systems, Breathing Air Systems | Air Purification Systems | CAT (compressedairgroup.com) 1
8 Smart Appliances to Create a High-Tech Home, Lou Farrell, https://revolutionized.com/ smart-appliances-high-tech-home/ 2
More Than ‘Turning A Wrench’: UVA Apprentice Program Builds Employment Pipeline, Matt Kelly, https://news. virginia.edu/content/more-turning-wrench-uva-apprenticeprogram-builds-employment-pipeline 3
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STREAMLINE COMMUNICATION FOR BETTER HVACR MANAGEMENT BY ALAN SMITH
E
ffective communication is essential for any business, but for HVACR and plumbing businesses, with multiple departments and technicians in the field, it is of paramount importance. Whether a service technician needs to speak with a manager while on a job or a potential customer needs to schedule a service call, lines of communication should be outlined and easily accessible. In business, communication can be separated into two lines, internal,
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In business, communication can be separated into two lines, internal, which refers to communication between employees or managers, and external, which refers to communication between an employee and a customer or another business. which refers to communication between employees or managers, and external, which refers to communication between
HVACR BUSINESS AUGUST 2022
an employee and a customer or another business. Consider the usage and best practices of email, phone, and internal
systems for both internal and external communication in your HVACR or plumbing business.
BUSINESS COMMUNICATION – EMAIL There are a variety of effective uses for email in both internal and external communication. Internally, email is commonly used to confirm employee scheduling and relay information about service calls. Employers may also use email as a way to update and inform employees of new products, technology, or the latest
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industry news. Email pulse surveys provide an effective way for employees to provide direct feedback in real-time, as well. According to Qualtrics, a pulse survey is defined as: Pulse surveys are a mechanism for measuring feedback using shorter, more frequent check-ins, that are not bound to measuring specific topics or content. Externally, email has just as many uses, if not more. Standard communication with customers, like appointment confirmation and completion notices, is commonplace. Although they tend to be overlooked in a full inbox. Many HVACR and plumbing businesses have also found success in using emails for marketing by way of newsletters, sales events, or informational articles, that may be beneficial to customers. They may also use email to promote the business, or even to remind existing customers to schedule yearly maintenance on their HVACR systems. Email provides the marketing team with data on click rates and the effectiveness of the campaigns.
While there are certain situations where the phone is most effective, it may not be the best go-to for all communication. TIPS FOR USING EMAIL TO COMMUNICATE WITH EMPLOYEES AND CUSTOMERS • Create Relevant Content— Blasting customers with insignificant information could result in fewer readers and less effective communication. Instead, only send an email when content is valuable to employees or customers. • Avoid Spam Folders—Learn and follow best practices for emailing that reduce the likelihood that your email will end up in spam. • Track Your Metrics—Take the time to analyze and understand if marketing campaigns are working, based on open and click rates. Google Analytics is an effective tool for this. Tracking will help you channel your
resources toward the communication that is working, rather than throwing spaghetti against the wall to see what sticks.
MOBILE COMMUNICATION Calls and texts are both widely accessible to most customers. So, understandably, HVACR and plumbing businesses would prefer to leverage this mode of communication. While there are certain situations where the phone is most effective, it may not be the best go-to for all communication. Internally, for instance, customer service may need to contact a technician’s cell phone to update their schedule, add customer info via text, or check an ETA in real-time. While talking to a receptionist in the main office may be helpful for the tech to understand the homeowner’s situation, it may not be
possible to write the information down and may not be as time-sensitive. Texts are effectively used to confirm appointments or let a homeowner know that a technician is on the way or troubleshoot an address error or scheduling issue. These communications are incredibly efficient for both the employee and the customer. When these texts or calls come directly from the technician’s phone, customers may then contact the technician directly.
TIPS FOR EFFECTIVE PHONE COMMUNICATION WITH EMPLOYEES AND CUSTOMERS • Train customer service agents— Ensure that everyone in customer service understands the services and products offered by your business and that they can effectively communicate and sell them to potential customers. • Route customer phone calls correctly—Make it easier for customers to get in touch with the right person, whether that’s the continued on page 18
RECYCLE EVERY MERCURY THERMOSTAT
EVERY TIME. thermostat-recycle.org www.hvacrbusiness.com
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As a business owner, you have many options when it comes to communication with employees and customers, but that doesn’t mean it’s a one-size-fits-all solution.
technician working in their home or customer service. • Don’t rely on phone calls for scheduling—Technicians have to juggle many tasks. Consider using internal systems with text functions to update their schedules.
INTERNAL SYSTEMS In the past few years, there have been many advances in robust, auto-responsive scheduling systems. These scheduling programs have been game-changers for HVACR and plumbing businesses. While scheduling can still be done over the phone or by email, it is far more effective and accurate when done through an internal scheduling system, which will not only schedule the appointment but send automatic confirmations and updates to technicians and homeowners as well. Internal systems for managing inventory and pricing are also extremely helpful, not just for the home office, but for technicians in the field as well. Technicians and customer service
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employees may also benefit from handbooks and manuals downloaded to an internal system for quick and easy access. Some of these systems may require training, but once all employees are on board, it can streamline processes immensely. The benefits of using internal systems are diminished when employees are not properly trained on how to use them.
TIPS FOR USING INTERNAL SYSTEMS IN HVACR AND PLUMBING • Be consistent—When scheduling is sometimes emailed or texted, rather than entered into the internal system, it can be confusing for employees to manage or track. Instead, have distinct guidelines for which type
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of communication is used in each circumstance. • Train your employees—Internal systems are only effective when employees understand how to access and utilize them. • Listen to feedback—Some internal systems may sound like the perfect fit for management, but if they aren’t practical for employees, they may be ignored or circumvented. Survey those using the system to understand its effectiveness in practice.
VARIOUS STRATEGIES FOR INTERNAL AND EXTERNAL COMMUNICATION As a business owner, you have many options when it comes to communication
with employees and customers, but that doesn’t mean it’s a one-size-fitsall solution. Consider which mode of communication is best for each aspect of your business. For instance, appointment reminders and updates may be best delivered through text, while contracts and follow-ups are better suited to email. If you are unsure about the effectiveness of a particular mode of communication for your team and customer base, survey employees and customers for feedback. You may be surprised how quickly streamlining communication will impact employee satisfaction and customer retention. u
Alan Smith is the Marketing Coordinator of Spartan Plumbing, Heating & Air Conditioning. Spartan is a leading plumbing /HVAC company that assists all types of businesses and residences throughout the Washington D.C. region and parts of Maryland. Spartan has an A+ rating by the Better Business Bureau and was voted Best Plumber in D.C. for four years in a row.
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FINANCE
BY RUTH KING
Here Are Five Mistakes To Avoid This Fall
C
ontinuing with the next and final installment of the Stupid Mistakes Series, this one deals with the start of a new season. Many of the following mistakes can be avoided if you know better. So, as I always say, don’t make these stupid mistakes!
1. BLINDLY PAYING FOR AN HVACR MARKETING OR ADVERTISING PROGRAM Before investing company funds in advertising, calculate the revenues needed to break even on that expenditure. Whether you advertise in print, on television, through your website, via direct mail, Facebook, or other advertising mediums, you should only make that investment with an estimate of the results required for that advertisement to pay for itself. Here’s how to calculate the break-even on your advertising investment: Assume that you plan to send 1000 fall maintenance postcards to a select group of homeowners or businesses. Take the total cost of the mailing (design, printing, and postage) and divide that number by your gross margin. Your cost is $0.50 per postcard and the gross margin of the service department is 55%. Mailing 1000 postcards costs $500. Therefore, the break-even revenues that must be generated are $500/55% or $909.09. If the postcard offers carbon monoxide and heating maintenance at $89 per system, then you must generate 10.21 fall maintenance checks from the postcard expense. Then, if we follow that formula, on the 11th one, you earn a profit. Can you generate 11 fall maintenance checks from 1,000 names? That is a 1.1% return. The answer is, maybe. It depends on to whom you are sending the postcards. If you are sending the postcards to people in your database
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Hopefully, at the end of winter last year, when your customers said, ‘I’ll replace my system next fall’ or ‘I’ll limp along until next fall before fixing…’ you recorded that comment in a tickler file. who have not done business with you in the past 2 to 3 years, then the answer is probably yes. If you are sending the 1000 postcards to a zip code where you haven't done much business in the past, then the answer is probably no. You're likely to get a 0.5% return or less on this type of mailing.
2. IGNORING YOUR TICKLER FILES Hopefully, at the end of winter last year, when your customers said, “I’ll replace my system next fall” or “I’ll limp along until next fall before fixing…” you recorded that comment in a tickler file. Call those customers to get the repair done or the system replaced. Alternatively, your salesperson gave a quote for a new heating system last year and never heard back from the customer, even after several attempts to contact that person. Contact those customers again. They may not have bought a new system and your telephone call might prompt them to do so. Of course, you’ll have to check their original proposals because costs have increased.
3. NOT HAVING A FALL SERVICE AGREEMENT CONTEST Maintaining a strong agreement base is critical in inflationary and potentially recessionary times. Those companies with a thriving maintenance program do better during economic downturns. A contest can help you increase your maintenance customer base. Hold a fall contest. For residential
companies, dispatchers should start the process with customers. Technicians get the first chance to educate them about the upcoming event. The technician can leave the agreement with the client. Even if the customer says, “I have to talk with my spouse.” Someone from the office should then follow up. From a commercial perspective, your technicians are your eyes and ears at a business location. They see the condition of the customer’s equipment. If it hasn’t been maintained, the technician asks, “Who maintains your equipment now?” Incidentally, don’t assume that just because it is dirty, it hasn’t been maintained… some companies don’t do maintenance properly. The technician then sets up the survey appointment with the customer and your company’s salesperson. The technician gets a SPIFF for setting up the appointment. Set a goal that makes the company stretch out of its comfort zone. If you’ve never generated 100 new residential maintenance customers in the fall, set this as a goal. In three months, it’s only about 33 per month. To do this, you need 99 opportunities. Do you have that? If so, then go for that goal. If the technicians have never talked with your commercial customers about maintenance, set a goal of one new appointment per technician per week. This expectation will help build your commercial service contract base.
4. NOT REVIEWING SIGNS OF CARBON MONOXIDE
POISONING AND FALL REPAIR/MAINTENANCE PROCEDURES Every year the media reports on someone, somewhere who has died of carbon monoxide poisoning. Your technicians need to be aware of the signs of elevated carbon monoxide in homes. These events usually serve as a reminder, but your technicians should be reviewing this consistently. Since they have been working on cooling equipment for the past months, the switch to heating usually is easier with a few technical review sessions.
5. NOT PUTTING ASIDE ENOUGH SAVINGS I remind HVACR owners of this often. Yet I see some make this mistake repeatedly. Have at least 6 months’ operating expenses in a savings account. This can be accomplished by saving 1% of all cash coming in the door and all maintenance money received. These savings create your company’s line of credit and serve as a buffer during slower periods. If you do this, you won’t have to rely on a bank for a line of credit. Now that you know what not to do, you will never make these stupid mistakes. Sincerely, I hope you found the Stupid Mistakes Series helpful. Feel free to comment or send suggestions on what you’d like to read. Next up – Trailing Profit & Loss. 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.
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EXIT PLANNING
PROVIDED BY KEVEN PRATHER, CFBS
The Importance of Family Governance
T
he old saying “Shirtsleeves to shirtsleeves in three generations” means family wealth that’s built by the first generation is eroded or even destroyed by the third generation, which squanders the assets it inherits through reckless spending, poor investment decisions, and other mistakes.
Reasons for Formal x Family Governance 100% 80%
The good news: You can take steps right now that can potentially help you avoid watching your family’s wealth diminish over time—or stop you from being part of the problem. The key is to implement a process known as family governance. Here’s how family governance works— and how it may help your family preserve, protect and grow its assets for generations to come.
FORMALIZING FAMILY GOVERNANCE Family governance at its core seeks to balance the competing needs of family members when there is substantial family wealth (and possibly business interests). But how family governance is structured can make a big difference. For example, addressing competing family members’
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71.8%
60%
The result: The family ends up back where it started, with the same amount of wealth (or less than) it began with generations ago. Unfortunately, it’s not just an adage. We’ve seen this type of wealth destruction play out among many families—even those with relatively modest amounts of wealth—whose members tend to have their own conflicting agendas. They have (to varying degrees) different expectations, wants, and preferences. Moreover, there are commonly clashing perspectives on how best to manage and spend the family wealth. There may be family-owned business interests, and different family members may have differing ideas about the future of the company.
83.2%
51.1%
40% 20% 0% Mitgage family conflicts
Preserve or grow family wealth
needs can happen by default without any real planning or formal structures. In such instances, control of the wealth is often concentrated in the hands of a matriarch or patriarch, or it changes as alliances among various family members, shift. Or it can be done formally, by setting up approaches and controls designed to actively promote the betterment of the family overall. This is the approach we see affluent families take in most instances. The rationale for doing so is to inject some stability into the family’s wealth and potentially head off conflicts that might otherwise arise over money (see the chart). Formal family governance has two core components: the human side and the technical side. The human side tends to involve the steps taken to identify and create documents like mission statements/value statements and family constitutions. It is about developing a strong understanding of what the family is all about— including the roles and responsibilities of family members as a group and as individuals. Another aspect of the human side is specifying how family conflicts are to be resolved. The objectives are to avoid litigation and to make conflicts less intense and more manageable.
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Ensure family harmony
The technical side involves legal structures, which might include trusts, contracts (such as prenuptial agreements), partnerships, and corporate entities that officially codify the way family governance will work. In our experience, family dynamics almost always impact the types of legal structures a family chooses to implement for governance purposes. Various professionals — including wealth managers, attorneys, and even family counselors — can potentially help families develop a formal family governance plan and help keep it on track.
CHALLENGES IN IMPLEMENTING FAMILY GOVERNANCE With family governance, the biggest challenge is often following through on the plan and getting whatever model of governance you choose to work. Consider how addressing only the human side of family governance can lead to problems. You could potentially spend lots of time and money on professionals to help you understand the wishes of family members and produce a mission statement, a values statement, and a comprehensive family constitution that includes a process for dispute resolution within the family. All the relevant family members might even formally sign on to these documents.
But when you pass away, your heirs could potentially jettison the agreedupon approach and replace it with vicious litigation. With no formal legal documents in place, there’s no way to help ensure decisions will continue to be made in line with the family’s values. Likewise, addressing only the technical side can result in problems down the line—as overly rigid documents and structures can lead to fights with trustees, lawsuits, and other problems for heirs. The upshot: Lack of foresight when implementing formal plans can result in the headaches that family governance is intended to avoid. Typically, that occurs when families deal with only one aspect of governance instead of addressing the full range of issues needed to establish an effective family policy for the short and long term.
BUILDING A SOLID PLAN Family governance can be quite advantageous for family members. It can result in the further creation of wealth and the wise transfer of wealth from generation to generation. But to achieve these outcomes, family governance should be done thoughtfully and carefully—by both making a formal plan and then ensuring that plan adroitly combines the key human and technical aspects involved. Next step: Contact your financial professional to discuss the various goals and objectives of your family members— and how a family governance plan could potentially help address family wealth and family harmony for years to come. 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.
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PRODUCT FOCUS »
ASPEN The 120-volt LGM Series offers outstanding installation versatility. The units are shipped as upflow or horizontal right and can be converted for downflow or horizontal left installations onsite by HVAC technicians. When a proper metering device is used, the LGM Series units are ETL listed for use with R-22 or R-410A refrigerants. In addition, they can be AHRI certified with most brands of air conditioners or heat pumps. Available in 2- through 4-ton cooling capacity without electric heat, all LGM Series models are backed by a 10-Year Limited Warranty. www.aspenmfg.com
BERNER INTERNATIONAL
CARRIER
Berner International introduces the Architectural Elite, the debut model of Berner’s new Architectural Collection. The Architectural Elite’s patented geometric, balanced shape, is inspired by the Golden Ratio. It’s a radical departure from the industry’s century of rectangular cabinet designs. It also features the Berner AIR™ advanced technology control platform for air curtains – developed in-house, and a wireless controller, encrypted at the processor level, to connect the Berner App 2.0 to Berner’s built-in Intelliswitch™ digital controller. The Intelliswitch operates as a standalone air curtain controller, interlocks with any building management system (BMS), and interfaces with the Berner App 2.0.
www.carrier.com
The Infinity system is our most advanced heating and cooling system and will redefine what comfort is for you. Connected, intelligent, and efficient, the Infinity System delivers maximum control and unsurpassed comfort by helping minimize temperature swings within your home, while saving money on energy costs. It's the ultimate expression of our expertise and innovation—designed to give you the ideal indoor environment with the least amount of effort. The Infinity System includes a full range of top-of-the-line heating and cooling products—from traditional singlestage models to our fully variable-speed models with Greenspeed® Intelligence.
www.berner.com.
LOCHINVAR Lochinvar, an industry leader in high-efficiency boilers and water heaters, announced the addition of the FTX 1.0 to its best-in-class line of fire-tube boilers. The FTX 1.0 fits neatly into mechanical rooms with limited space while offering a higher input of 999,000 BTU/hr. This expansion further bolsters Lochinvar’s offering for commercial applications. The unit’s new 7-inch LCD touchscreen display makes it easier for contractors to adjust parameters with minimal effort and provides access to remote connectivity capabilities for ease of installation. The FTX 1.0 features both CON·X·US® Remote Connectivity and SmartTouch™ capabilities. www.Lochinvar.com.
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MIDEA Midea has launched its new Midea EVOX central inverter heat pump system in the US. Designed in collaboration with U.S. HVAC contractors, the EVOX system is a game changer with unprecedented flexibility and versatile solutions to solve the most pressing barriers for contractors and consumers including the ability to mix and match with existing equipment and better adaptability to most installation conditions. It also addresses several pain points felt in the industry, the first being easier installation and more competitive pricing. Midea EVOX offers an increased focus on decarbonization, and electrification while meeting stricter energy efficiency standards.
WESTINGHOUSE Westinghouse offers a new multi-position, quiet operation air handler to the line of mini-split heat pump systems for the U.S. and Canadian markets. The modular design of the air handlers permits the discharge air directly up, or horizontal to the right or left. They also provide up to 0.8 in WC static pressure. A filter base/rack is available. The new, high-efficiency air handlers are available in 24,000, 36,000, 48,000, and 60,000 BTUH sizes and are designed to accept extended refrigerant piping lengths. They offer heating operation down to -13°F and a built-in base pan heater. www.WestinghouseAC-USA.com
www.mideaevox.com HVACR BUSINESS AUGUST 2022
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20QUESTIONS >>
with BETH ROVAZZINI
Managing Editor, Heather Langone spoke with Beth Rovazzini, owner of B&W Plumbing and Heating, about the recent changes in the HVACR field and her strategy for enduring the ebbs and flows of an ever-evolving industry. 1. Where do you find the most inspiration daily? My faith in Jesus -
2. Who was your mentor?
My mother. My parents met in high school and married young. Neither went to college. She ran the business side of the company with no college education. She was self-taught. If she needed to learn something, she went to the library. She was and still is my biggest inspiration. She taught my brother and me that there is always a way to figure things out.
3. Are you a cat or a dog person?
I'm a dog person. We have three right now, a Schnauzer, who comes to work with me every day. He is a rescue. And we have two Maltese puppies.
4. What is your favorite thing to do with your family during your downtime?
Travel in the RV. We've been RVing since 2018. This past weekend, we went with a few of my grandkids to Prophet’s Town State Park, near Purdue. And we're going to another park this weekend with some of my other grandkids. We love it!
5. If you could have a superpower, what would it be? It would be the ability to allow people to see themselves as others see them. Young people think their defects are noticeable to everyone. We see these young people as gorgeous and talented. If I could do anything, it would be to give them true insight.
6. Did you always know you would take over your family business? No, as a kid I didn’t play with furnaces along with my Barbies. When I went to college, I was planning on getting a degree in Russian history, but my dad encouraged me to get a business degree. After graduating, I worked in the family business on the accounting side. We’d have regular monthly meetings to go over the statements. That’s how I learned that my parents’ retirement goals included a plan for me to buy the business. I had a brother that was two years older. It had always just been the four of us. When I was 21 and he was 23, he died in an automobile accident. His death changed the dynamic of our family. From that point on our family became closer and there was no question I would buy the business. And I did.
7. How do you inspire young people to work in the trades?
By giving them opportunities to see what it's like to learn a skill and be competent at it. When they learn how to install a furnace or fix that flapper, it helps with self-confidence and opens up the possibilities for a future in the trades.
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8. How have you been affected by the supply shortage?
14. Do you have tips for combating economic ebbs and flows?
9. Do you have a contingency plan to buffer against a recession?
15. Would you say you are seeing more women owning and operating HVACR businesses?
We’ve had to purchase more inventory. But we haven’t been greatly affected. Although, we’ve had to be a lot more flexible. It’s gotten better though.
Yes, we do. But one thing in our industry, there are some things that you can't predict. You just do what it takes. It just means having to pivot. And in some ways this business is recession-proof.
10. Where do you see your brand in the next five years? We’d been looking at this. The pandemic accelerated it. In March, we took on a partner to help us with a five-year rapid growth and expansion plan.
11. Are there plans to have your family members continue when you retire?
No, I don’t have kids who want to be in this industry. However, I have no intention of retiring. I may change my hours or take time off, but I’ll keep working. It’s a privilege to work.
12. How do you see the HVACR industry evolving over the next decade?
Regulations – the people making the decisions have no idea what they're doing in some cases. A few years ago, they wanted to get rid of 80% gas furnaces. In our area, many people who have gas furnaces, don‘t have a way to put in a 98% furnace or a flue or limit condensation in their houses without an extreme remodel. These people are older, in houses that were built in the twenties. Some of these changes are detrimental. As the industry continues to evolve, we need to make sure to keep our seats at the table.
13. How do you keep your seat at the table? Join organizations. We’re active in the HCC. I don't have time to go to Washington and lobby. But HCC does and they have lobbyists. I think it’s also important that we educate young people on these important issues. It will create a domino effect.
Don’t give up. Be open to other ideas and be open to change.
No, not in our area. It’s difficult to attract women. I’m not giving up though. There’s an entire labor pool out there. We keep at it. *The Hispanic Chamber has been active here and sponsors a group of women welders. *For more information on the work being done by The Hispanic Chamber, go to https://weldingguild.com
16. How do you continue to recruit not just women, but young people as well?
I'm working with a local adult education school. I think that's a great way to attract people not just high school students, into the industry. We plan to recruit for plumbing in the fall and HVAC. This will be our third year working with them.
17. Early on, did you have to prove your merit as a woman in a male-dominated industry? Not as much as you might think. This is a competency industry. Early on, I’d walk into job trailers, and it would be dead silence. That's a little off-putting but once they’d see that I could do the job, they didn’t care.
18. If you could improve anything about your business this year, what would it be? More people. I’d add more people, more qualified people, and more trucks.
19. What would be your best advice to a young graduate who wants to be a technician in the HVACR field? Be teachable and be available. For the young guys who are teachable, the senior guys will fight to put them in the trucks. I’ve seen it.
20. How do you create an environment that helps to foster new generations to join and stay in the industry?
I’m working on that all the time. I’ve partnered with high schools and adult education. And we offer Friday breakfasts, an opportunity for senior folks to sit down with some younger folks and bond in an informal setting. I'm fortunate that we have many extremely experienced people who are willing to share their knowledge with recruits.
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BUILDING A HIGHER STANDARD. ONE DEALER AT A TIME.
BETH ROVAZZINI Owner
Beth Rovazzini has been leading her company, B&W Plumbing & Heating, for 40 years. And in that time, she’s not only maintained a family-first culture that makes both employees and customers feel valued, but she’s also been at the forefront of mentoring young people and helping them find a career path in the trades—ensuring there is a new generation of workers to provide exceptional customer service. For all these reasons and more, we’re happy to have honored B&W Plumbing & Heating with the 2019 Building a Higher Standard distinguished dealer award. See how you can become a dealer at amsd.us
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