March/April 2023

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Commercial air conditioning welcomes energy efficiency with wide open arms. Rise of VRF MARCH/APRIL 2023 WWW.PLUMBINGANDHVAC.CA Publication Mail Agreement #43029513. Return postage guaranteed Marked Business Media Inc. 286 King Street W, Unit 203, Oshawa , Ontario, Canada L1J 2J9 INSIDE n Details released on fatal ammonia leak n Embracing heat pumps in HVAC n Protecting hydronics starts with water quality n Learn how to earn more when selling your business

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www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 3 n Contents ISH Frankfurt 2023 highlights 46 There was some fun being had while attending German trade show Fatal ammonia leak 39 Exposure to 300 ppm of ammonia is considered dangerous Features Departments Hot Seat ......................................... 5 Air conditioning season almost upon us Industry News .............................. 6 Miscommunication cause of fatal ammonia incident AHR Expo Round-Up ..................... 8 VRF/heat pumps highlighted in Atlanta Plumbing & HVAC, In the Field ... 45 HVAC/R industry celebrate International Women’s Day Letter from the Publisher ........... 46 European market predicts surge in heat pumps for North America People & Places ........................... 49 Laars celebrates 75 years Shop Management 52 Selling your business in 2023 Coming Events ............................ 46 Industry heads to Quebec for MCEE Products & Technologies Air Conditioning Products ......... 17 HVAC ........................................... 19 Building Green ............................ 24 Commercial Products ................. 31 Hydronics .................................... 33 Refrigeration .............................. 39 Commercial/Air Conditioning At-risk youth apprenticeship program Hammer Heads has helped 96 per cent of graduates find apprenticeships 6 Proper hydronics maintenance 33 Potable water is for humans, not boilers Cover: Decarbonization of buildings has been driving commercial air conditioning towards more energy efficient technology.

WHENEVER PIPING IS INVOLVED

Spring in the air

It sometimes feels that I am one of the few Canadiansthatstilllovesthewinter.Watching the big fluffy snowflakes come down from the comfort of my apartment or even hitting the trail with my dog and watching her get the zoomies.

ButwhereIamlikemostCanadians,bythe time it hits March, I am beyond ready for the snow to melt and to bring on the heat. And it feels that while I am writing this column (from the comforts of my back porch), we are starting to fi ally see the fi st signs of spring hitting the air.

It also could be defi ed as the calm before the storm; HVAC contractors will soon start to get plenty of calls from homeowners and buildingownerslookingtosoonturnontheir air conditioning systems only to fi d out that they crapped out over the winter. Busy season is almost upon us and it’s time to start getting prepared now.

It is also the perfect time to check out some of the new technology that is hitting the A/C market. The Plumbing & HVAC team headed down to Atlanta, Georgia, in February for the annual AHR Expo. Heat pump technology has been talked about so much in recent years, it wasn’t exactly a surprise that it was the bell of the ball at the trade show. However, that doesn’t mean that there weren’t some

surprises that were scattered around the halls. For instance, the amount of air-to-water heat pumps that have made it across the pond from Europe and fially found themselves in North America was amazing to see.

For fun, I was recently reading a summary of a presentation given by NRCan about the heat pump market in Canada. In it, there were a few interesting takeaways. Firstly, 76 per cent of heat pumps manufactured by those interviewed for the report are considered cold climate heat pumps. For this report, they were looking at heat pumps that can operate in a hybrid context. I suspect that most installed in Canada will need some kind of supplemental heat for those coldest nights, so it’s not necessarily surprising that those types of products were highlighted.

It might be starting to warm up a bit, but we are still a while away from air conditioning season. Hopefully, when it comes time to write my column for the next issue, it’ll be warm enough to actually be able to stay outside the entire time.

March/April 2023

Volume 33, Number 2 ISSN 1919-0395

Publisher Mark Vreugdenhil

(289) 638-2133 ext.1

Cell: (416) 996-1031 mark@plumbingandhvac.ca

Editor

Leah Den Hartogh

(289) 638-2133 ext. 2

Cell: (289) 830-1217 leah@plumbingandhvac.ca

Assistant Editor Francesco Lo Presti (289) 638-2133 ext. 3 francesco@plumbingandhvac.ca

Contributing Writers

Glenn Mellors, Greg Scrivener, Michael Ridler, Ron Coleman

Design and Production

Tim Norton/Janet Popadiuk production@plumbingandhvac.ca

All articles and photos by Plumbing & HVAC staff unless noted.

PLUMBING & HVAC Magazine is published seven times annually by Marked Business Media Inc. and is written for individuals who purchase/ specify/approve the selection of plumbing, piping, hot water heating, fire protection, warm air heating, air conditioning, ventilation, refrigeration, controls and related systems and products throughout Canada.

Marked Business Media Inc.

286 King Street W, Unit 203, Oshawa, ON L1J 2J9 Tel: (289) 638-2133

Postmaster: Send all address changes and circulation inquiries to: Plumbing & HVAC Magazine, 286 King Street W, Unit 203, Oshawa, Ontario, Canada L1J 2J9. Canadian Publications Mail Sales Product Agreement No. 43029513. Postage paid at Toronto, ON. Annual Subscription Canada: $40.00 plus applicable taxes, single copy

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Copyright 2023. The contents of this magazine may not be reproduced in any manner without the prior written permission of the Publisher.

A member of:

• Canadian Institute of Plumbing & Heating

• Mechanical Contractors Association of Canada

• Ontario Plumbing Inspectors Association

• American Society of Heating Refrigerating & Air Conditioning Engineers

• Heating Refrigeration and Air Conditioning Institute of Canada

• Refrigeration Service Engineers Society of Canada

n Hot Seat
Facebook: @PlumbingandHVAC Twitter: @Plumbing_HVAC_ Instagram: plumbing_hvac_ LinkedIn: Plumbing + HVAC Magazine

Hammer Heads program offers at-risk youth apprenticeship opportunities

More young people need to look at the skilled trades as a career. Currently, there are more than 100,000 skilled jobs going unfilled in Ontario alone, but this issue is a Canada-wide problem.

The Central Ontario Building Trades (COBT) created the Hammer Heads program back in 2009 as a one-week awareness program designed to support at-risk youth. Its intention was to provide those graduating from the program with employment-based training within the construction industry that could offer apprenticeship opportunities. Since then, the program has grown and expanded into a registered charity. Many program participants were wards of the Children’s Aid Society, living on social assistance, or in a shelter.

The current program manager of the program, Quoc Truong, was even a graduate of the program. “I was 26 years old, pretty much down, and I had no avenue to go. But I found a program through a social worker and took a leap of faith. I went through this program not knowing anything about construction at

al l. I didn’t know how to swing a hammer. But I graduated from the program as the top student and became a steamfitter by trade,” shared Truong. “As a person of a minority background, construction was frowned upon growing up. But, through the Hammer Heads, we’re highlighting that construction is a viable option and can be an option for everyone. You can make good money, have a great pension, good benefits, and make a good living.”

The students

The Hammer Heads program targets people aged 18 to 26 and annually runs six programs. Pre-pandemic, there were 15 to 17 students in the program; post-pandemic sees about 10 to 12 kids. Though its partnership with the COBT affiliate training centers, which consists of 25 construction unions, the program can “host a 10-12 week boot camp style preemployment and mentoring program that exposes youth to various construction trades. The fist two weeks of the program consists of health and safety training, then the rest consists of training at various centers,” explains Truong.

To register, applicants must meet the age requirement, reside in an under-resourced

community in the Greater Toronto Area, and have a minimum of Grade 10 math, english and science credit or a GED. Applications are free, and there are three intake periods throughout the year.

While in the program, participants are closely monitored and evaluated based on job readiness, mechanical aptitude, and attitude at each training centre they visit. “The beauty of our program is we are dealing with several personalities, people from different walks of life, so it isn’t just a one-size fits all type of training. We mix and match different ways of training and education based on the type of

www.plumbingandhvac.ca n Industry News
6 Plumbing & HVAC – March/April 2023
Hammer Head affiliate training partners, Tridel and the BOLT foundation, hosted a field trip for Group 53. A graduate from Group 37, Benamin obtained his tower crane apprenticeship with IUOE Local 793.

students we have,” adds Truong.

In total, the program also has a 96 per cent retention rate after one year of employment. All graduates are linked to jobs such as plumbing, steam fitting, refrigeration, electrical, bricklaying and more.

“Our goal is to cost the employer zero dollars to hire our kids. The program provides kids with safety boots, hard hats, and clothing. They are getting the training and also look the part so when they get hired as an apprentice, they are job ready,” said Truong.

Support from community

The program has 14 partners, some of which include Toronto FC, the University of Toronto Scarborough, the BOLT foundation, and the Pinball Clemons Foundation.

The Pinball Clemons Foundation, run by former player and current general manager of the Toronto Argonauts, Michael “Pinball” Clemons, “jumped on board right away and became an integral part of our organization. The foundation has been an advocate and partner for us since the beginning,” said

Trong. The Pinball Clemons Foundation mentors students from the Hammer Heads program as they work on obtaining their trade certification.

The Hammer Heads program also provides opportunities for graduates to give back to the community by participating in local community waste pickups. Additionally, graduates of the program can become leaders of the Youth Advisory Committee (YAC). The committee is a group of mentors and coaches that support the new participants of the program in achieving their goals.

Looking forward

The next step is to look for improvements in the program. The Hammer Heads are trying to keep up and change with the times. “Technology is evolving, and we want to adapt the new technology into our training, like virtual reality. With virtual reality, students can walk a beam and gain that experience,” explains Truong.

To date, 166 Hammer Heads graduates no longer need Ontario Works support for an approximate savings of just over $4.6 million. Additionally, 255 graduates who have been residents of Toronto Community Housing began apprenticeships, and 633 graduates have started their registered apprenticeships.

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 7
Our goal is to cost the employer zero dollars to hire our kids. The program provides kids with safety boots, hard hats, and clothing," said Trong. "They are getting the training and also look the part so they get hired as an apprentice. They are job ready
Michael “Pinball” Clemons of the Pinball Foundation and Orlando Bowen of One Voice One Team joined the Hammer Heads program to celebrate Group 51’s graduation.

AHR Expo highlights VRF/heat pump technology in Atlanta

The AHR Expo has started to look a little bit more like itself again this year as the largest HVAC/R trade show in North America returned to the Georgia World Congress Center in Atlanta, Georgia. For the three-day show, there was a total of 42,794 verifi d visitors, which ran from Feb. 6-8. Th s was an increase of close to 12,000 attendees compared to the 2022 AHR Expo.

“Th s year’s show is one for the books,” said Mark Stevens, show manager. “We heard it in every corner of the industry – HVAC/R is gearing up for an exciting path forward. As a collective force, we are focusedonchangeandgrowthinsideourindustry,aswellasanchoring our combined efforts on serious developments to set the course for the future of HVAC. It’s hard to miss the excitement”

The show hosted 17 industry podcasters as part of its Podcast Pavilion. Full session recordings will be available on the AHR Expo website once produced content is released by the hosting podcasters.

Over the three days, several educational sessions and panels were held, including the headliner panel “HVAC & Social Media: Strengthening the Trade with a Community Mindset,” which featured

Improve Indoor Air Quality & Save Up to 75% Energy Costs

influencers of the industry.

Returning in 2023 was the show’s innovation awards. Ths year’s product of the year winner was Cielo WiGle for its Cielo Breez Max. There were an additional 10 industry winners from the staple categories.

• Building Automation: Cielo’s Breeze Max smart thermostat.

• Cooling: Chemours’ Opteon XL41, non-ozone depleting, low global warming potential refrigerant replacement for R-410A.

• Heating: Copeland’s ZPSK7 scroll compressor.

• Indoor Air Quality: Belimo’s new room sensors.

• Plumbing: Caleffi’s PresCal HP, piston-type reducing valve.

• Refrigeration: Copeland’s ZFW variable speed scroll solution.

• Software: cove.tool’s loadmodeling.tool.

• Sustainable Solutions: Taco Comfort Solution’s System M, an airto-water heat pump system.

• Tools & Instruments: Navac’s NEF6LM BreakFree power flaring tool.

artD Technologies’ Clean Power VFD.

The AHR Expo 2024 will be hitting the road and heading closer to the Canadian border! A fan favourite, the show will be returning to Chicago, Illinois and will run from Jan. 22-24. “What a show,” said Stevens. “Ths is the industry to be a part of right now. We are essential; we are poised for growth and the world needs us to be prepared to solve problems and meet demands. We’re excited to play a role in launching new products, services, conversations and partnerships to make it happen. We hope to see you in Chicago.”

At the 2023 AHR Expo, our team made its way around the show shooting our Walk ‘N Talk video series, and highlighting some of the innovations introduced on the show floor. In addition, we met with so many different manufacturers and discussed some of their latest products. Take a look at some of the highlights.

Continued on page “11”

www.plumbingandhvac.ca
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The 2023 AHR Expo filled the show floor with some of the latest innovations hitting the HVAC/R industry.

Navien NCB-H combi-boilers

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• Optimized DHW priority with mixing valve and water adjustment valve to provide consistent DHW temperatures and industry leading flow rates

• Dual stainless steel heat exchangers for heating and separate SS heat exchanger for DHW

• Built-in controls for 3 zone pumps or 3 zone valves

• Heating TDR up to 11:1 and DHW TDR is 15:1

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The Secret to a SYSTEM PERFECTLY BALANCED

CircuitSolver® is a brand of ThermOmegaTech®, a leader in the design and manufacture of thermostatic temperature control technology for over 40 years. CircuitSolver® thermostatic balancing valves have been installed into thousands of domestic hot water recirculation systems across North America since their introduction to the market in 2012, celebrating over 10 years of active use in the plumbing and construction industry.

Problems with Manual Balancing

For decades, balancing a hot water recirculation system has used the time and energy of many contractors manually balancing and rebalancing to achieve the required flow needed to obtain the same temperature in each branch. Ths inevitably results in callbacks, inflated labor costs,

How CircuitSolver® Eliminates Headaches and Simplifies Balancing

Requiring no power source, CircuitSolver® valves balance a system based solely on temperature instead of pressure or flow. Installed at the end of each branch or riser before the return, the valve’s internal wax actuator will expand or contract based on the water temperature, causing the valve to open or close to meet the desired system temperature and provide the proper flw.

During the initial start-up of a hot water recirculation system, the valve is wide open and will gradually close once the system temperature requirements are met. The valve remains in its closed position to keep hot water in the line, opening as needed when the water temperature drops below the valve’s set-point.

This allows a system to be initially balanced in hours, not days, and to stay balanced even as conditions change. To prevent deadheading the recirculation pump, the valve never fully closes, always allowing a small bypass of flow to the return.

The precision and accuracy of CircuitSolver® position it light years ahead of manual balancing valves by eliminating the struggles of balancing and rebalancing.

With millions of happy customers, the results are in what you don’t see – callbacks, cold water complaints, and endless rebalancing are all problems of the past.

and angry tenants taking cold showers. Traditional manual balancing valves, designed to be set only once in the closed system of start-up conditions, are unable to adapt to the reality of dynamic system needs and usage variations. Thermostatic balancing valves eliminate this issue as they constantly adjust flw based on the temperature needs.

For engineers, contractors, building owners, and facility managers, there is only one choice when it comes to a perfectly balanced system – CircuitSolver®.

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Hybrid VRF

Mitsubishi Electric Trane introduced its new Hybrid VRF, a two-pipe hybrid variable refrigerant flow zoning system that uses water instead of refrigerant in indoor spaces. It performs like comparable traditional VRF systems, even at low ambient temperature conditions. It has a main hybrid branch circuit controller that exchanges heat between refrigerant and water. Conditioned water is pumped to the individual zones, eliminating refrigerant in indoor spaces and reducing the overall system refrigerant charge. Choose between airsource or water-source units to achieve design flexbility. Hybrid VRF can be intermixed with standard VRF systems on projects that require no refrigerant in smaller spaces, such as multi-family, hotels, senior living facilities, and dorm rooms.

Mitsubishi Electric Trane u www.metahvac.com

Thermostatic mixing valves

Watts’ new LFUSG-HWP Under Sink Guardian 3/8-inch compression-fitting thermostatic mixing valves maintain and limit hot water to a desired selectable temperature between 27 C and 49 C with flw rates as low as 0.25 GPM and as high as 2.25 GPM. It features a hot water by-pass lever allowing hot water sanitization at the point-of-use fixure. The mixing valve is listed to ASSE standard 1070 for single fixure applications and IAPMO cUPC and incorporates dual check valves to protect against the cross-flw and integral screens to filter out debris.

Watts u www.watts.ca

Pumps-on-pumps-on-pumps

Franklin Electric announced its planned expansion to its line of condensate pumps with the introduction of the VCMA-20 pro series. It offers a range of installation flexibility, allowing for critical condensate removal from air conditioning, refrigeration, and dehumidification equipment in tight spaces. The pump is also suitable for high-efficiency oil and gas-fired condensing furnace and condensing boiler equipment. An external float-activated switch automatically detects high water levels, and rubber feet absorb vibration on hard surface installations and reduce noise from the unit.

Franklin Electric u www.franklin-electric.com

Magnet dirt separator

Taco Comfort Solutions expanded its 4900 series of commercial air separator line to include a magnetic dirt separator. The single unit uses neodymium magnets combined with PALL ring micro-bubble air and dirt separation. A patent pending on/offmagnet and two-inch full port blow-down reduce fild maintenance time. The 4900 series air separator with magnet offers a standard working pressure of 125 PSI with options for 150 PSI and higher. Options include stainless steel construction and high-velocity models for higher flw rates, minimizing pressure loss. Taco Comfort Solutions u www.tacocomfort.com

Carbon steel fittings

Nibco announced its BenchPressG carbon steel fittings line to include two-inch sizes to its existing product assortment, bringing press technology to fuel and gas carbon steel pipe applications. It can be installed in residential, commercial, and industrial carbon steel piping systems. The BenchPressG press technology provides consistent joint integrity and requires no threading equipment or lubricants. Available in half-inch to two-inch sizes, the fittings feature a yellow hydrogenated nitrile butadiene rubber seal that provides a leak-proof connection. Nibco u www.nibco.com

Steam boiler

Cleaver-Brooks’ new CBEX-3W fietube boiler has an operating efficiency of 85 per cent on natural gas and 88 per cent on #2 oil. It combines EX technology with components including a large furnace, heat transfer tubes, and an integral burner, which enables the boiler to attain a 10-to-one turndown. The CBEX-3W can be controlled via the Cleaver-Brooks Hawk control system, available with HMI. The integrated control system offers features available on a steam boiler such as data trending, high-resolution graphics, and touchscreen navigation. It has an extended 10-year burner warranty.

Cleaver-Brooks u www.cleaverbrooks.com

Harmonic drives

Danfoss’ VLT preferred harmonic drives (PHD) offer harmonic mitigation and input power factor performance. Their ability to accomplish this at full load and reduced loading from both utility lines or standby/backup generator power, makes it ideal for HVAC fans and pumps. Traditionally, low harmonic drives need to run at or above 80 per cent load to provide a reduction in total harmonic distortion. But in many instances, the drive running an HVAC fan or pump will most likely be called on to run at a reduced speed. While reducing the speed provides tremendous energy savings, it is still important to keep harmonic distortion under control. The adaptive feature embedded in the VLT PHD panel keeps the total harmonic distortion levels below five percent, even when the input power load is reduced to 60 per cent of the drive-rated capacity.

Danfoss u www.danfoss.com

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 11

Canada’s 2020 National Model Codes celebrate first anniversary

Canada’s latest national model codes were published one year ago in March 2022. And after a two-year delay, the 2020 versions of the National Building Code (NBC), National Plumbing Code (NPC), National Fire Code (NFC), and the National Energy Code (NEC) were released.

These codes are adopted and enforced by its own provincial and territorial authority

For instance, New Brunswick, Nova S cot i a, Manitob a, Saskatche wan,

Ne wfoundland, Northwest Territories, Nunavut, Yukon, and Prince Edward Island each adopt the codes provincewide, but will add some modifications and additions.

Alberta, British Columbia, Ontario, and Quebec each adopt their own codes based on the national model codes.

In late-2022, the National Research Council Canada announced a new federalprovincial-territorial (FPT) governance model to replace the Canadian Commission on Building and Fire Codes, the committee that was responsible for code development since 1991. This will mean that provinces and territories will be integrated into the national process and hopefully more responsive to the needs of each jurisdiction, reports the Council. “The new model will contribute to lower construction costs for industry and reduce internal trade barriers related to manufacturing, operation, inspection, education and training,” according to the report. “Adoption of more harmonized codes will accelerate the construction of energy-efficient buildings, creating more affordable and efficient homes for

Canadians, while also helping to meet Canada’s net-zero goals.”

Important dates

Some of these variations are coming down the pipeline across Canada now that the 2020 iterations of the codes have been released for one year. In Alberta, the province adopted a “timely code adoption” policy, which means that all national or international code changes will come into force one year after its publication.

Alberta recently announced, as such, that

buildings containing one or two dwelling units and in row houses that don’t exceed three storeys in height.

According to the STANDATA, industry stakeholders wanted the option to use cellular PVC pipe for drain, waste, and venting applications during signifiant plastic drainage supply shortages due to the limited availability of base materials and in advance of proposed changes to the next version of the NPC of Canada.

A STANDATA refers to a province-wide variance, interpretation or information bulletin related to safety codes and standards, which is issued by the Public Safety Division of Municipal Affirs in Alberta.

Ths variance recognizes that the NPC will include cellular core PVC pipe and fittings that conform to ASTM F 3128-19 — “PVC Schedule 40 DWV Pipe with a Cellular Core,” for use with PVC and CPVC drain, waste, vent pipe and pipe fittings requirements.

The STANDATA was released in January 2023.

Encapsulated mass timber construction up to 12-storeys in building height is now permitted anywhere in Alberta. In March, the Alberta government, via its Municipal Affairs office, released the STANDATA, which will increase the allowed height of mass timber buildings from sixstoreys to 12-storeys.

the NPC of Canada will take effect as of April 1. Ths will be applied throughout the province. Additionally, there are currently no Alberta-specific technical variations or changes to the plumbing code, "The Alberta government worked closely with industry, municipal associations, and technical experts across the province to determine if Alberta needed to modify anything from the NPC 2020 publication,” according to the official report.

On the residential side, Albertans will now be able to use PVC pipe in residential

The variance provides an alternative solution to the NBC 2019 Alberta Edition and the NFC 2019 Alberta Edition. These codes are based on the 2015 editions of each respective code book.

The conditions for the new variance are based on the code provisions in the 2020 editions of the NBC and NFC. Ths means that when the 2020 codes, with some variances, are adopted, the requirements for encapsulated mass timber construction (EMTC) of up to 12-storeys will essentially be unchanged.

Under the current model, prescriptive requirements in the NBC Alberta Edition

12 Plumbing & HVAC – March/April 2023 www.plumbingandhvac.ca n Industry News
Encapsulated mass timber construction up to 12-storeys in building height is now permitted anywhere in Alberta.

separate buildings into two categories — combustible and non-combustible construction.

“The provisions severely restrict the height and area of buildings of combustible construction, whereas they permit unlimited height and area for buildings of noncombustible construction. The combustible/ non-combustible construction classifiation system was introduced in the national codes over 50 years ago and has increasingly been regarded as outdated and unnecessarily restrictive,” according to the STANDATA.

Made in Ontario

New amendments were made to Ontario’s building code The amendments, which are in effect immediately, were made by the Ministry of Municipal Aff irs and Housing.

Firstly, fire damper requirements are being streamlined to facilitate the construction of certain buildings, such as hospitals and long-term care facilities. These changes will reduce construction and ongoing maintenance costs for large, complex buildings that are currently being designed and constructed.

Additionally, building permits are now required for demountable stages and associated sound and lighting equipment towers These stages must comply with specific technical requirements for stage safety Th s amendment responds to recommendations from a coroner’s inquiry and an expert panel on strengthening safety standards in the live performance industry following twostage collapses that resulted in injuries and fatalities in 2011 and 2012.

The Canadian Board for Harmonized Construction Codes is continuing the consultation on the proposed changes for

the 2025 National Construction Codes. Comments will be accepted until April 27. Th s is the second of seven planned public reviews for the 2025 National Construction Codes.

What’s to come

The National Model Codes operate on a five-year cycle, which means that the next generation of codes is expected to be published in 2025. Several provinces will likely adopt the 2020 codes closer to the release date of the 2025 codes.

For instance, Saskatchewan is on its way to adopting the 2020 editions of the construction codes on Jan. 1, 2024, reports Effici cy Canada. In Ontario, the province is set to adopt Tier 1 of the NEC and Tier 3 of the NBC. For Nova Scotia, they still have a bit more time to adopt the NEC within its timeframe as the province committed to adopting the 2020 NEC within 18 months of it being published.

Publications of the National Model Codes are available for free on the National Research Council Canada website.

Value of building permits decreases in January

The total value of residential building permits decreased 6.6 per cent to $6.1 billion in January, with seven provinces posting decreases.

Multi-family homes continued to decline, down 8.3 per cent, thanks to steep declines in British Columbia, down 27.9 per cent. However, Manitoba posted a notable increase, up 106 per cent to $63.0 million.

Conversely, the non-residential sector saw a relatively stable January, up 0.7 per cent to $3.7 billion, thanks to gains in the commercial component off-setting losses in both the industrial and institutional components.

For the second consecutive month, commercial permit values increased 5.4 per cent, with Ontario leading the way, up 22.8 per cent.

Investment in construction

Residential construction posted its first increase in four months. Infographic provided by Statistics Canada

Eight provinces reported decreases in the total value of building permits, which resulted in the total value in Canada decreasing four per cent to $9.8 billion in January, according to Statistics Canada.

Additionally, the total permit values for single-family homes decreased 4.4 per cent in January, with Quebec down 13.5 per cent to $74.6 million, contributing the most to the decline. Alberta, up 0.8 per cent and British Columbia, up 0.6 per cent, were the only provinces to post increases for this component.

The good news for building construction is that investment increased by 1.5 per cent to $20.4 billion in January, with all components posting gains. The residential sector rose 1.9 per cent to $14.9 billion, accounting for most of the gains, after posting four consecutive monthly declines at the end of 2022. Ontario

Continued on page '15'

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 13
The new model will contribute to lower construction costs for industry and reduce internal trade barriers.

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was largely the reason behind the increase in this sector.

Non-construction was still on the up-and-up and increased 0.5 per cent to $5.6 billion.

Single-family home investment was up 2.4 per cent to $8 billion; Ontario accounted for much of the gain with its largest increase since December 2021.

Multi-unit construction increased 1.3 per cent to $6.8 billion, mostly driven by Ontario. On the other hand, Quebec continued to contract, with its eighth consecutive decline since reaching its peak in May 2022.

Investment in non-residential construction continued to climb, up 0.5 per cent to $5.6 billion in January. Industrial construction investment rose 1.1 per cent to $1.1 billion and was up 25 per cent year-over-year. Ths was the 14th consecutive monthly increase in this component.

Commercial construction investment edged up 0.1 per cent to $3.1 billion. Manitoba continued to climb for the fih consecutive month, approaching pre-COVID-19 pandemic levels of investment in this component. Institutional construction investment was up 0.7 per cent to $1.4 billion. Overall, eight provinces reported gains, with New Brunswick posting its eighth consecutive monthly increase. Conversely, Newfoundland and Labrador posted its 15th consecutive monthly drop.

On a constant dollar basis, investment in building construction increased 2.4 per cent to $11.9 billion.

Federal

Commercial, institutional, or mid- or highrise multi-unit residential buildings could be eligible for funding towards deep retrofits under a new initiative.

The program, titled “Deep Retrofit Accelerator Initiative” or DRAI, will distribute funding between 2023 and 2027. A total of $185 million is up for grabs.

Applications are accepted until April 28, while Indigenous applicants or applicants who focus on Indigenous communities can submit

ASHRAE releases latest version of energy efficiency standard

ASHRAE released its latest version of its energy efficiency standard, ANSI/ ASHRAE/IES Standard 90.1-2022, Energy Efficicy Standard for Sites and Buildings Except Low-Rise Residential Buildings.

The latest version of 90.1-2022 includes an expanded scope for building sites and major additions appearing for the first time in a minimum-efficicy U.S. model energy standard or code.

“We have identified some ambiguity in the standard by offering guidance on regulating only buildings and not sites. Examples include exterior and parking lot lighting, which, if not provided through the main electric panel in the building, were not within the scope of Standard 90.1 previously,” said Don Brundage, ASHRAE standing standard project committee 90.1 chair.

Major additions to Standard 90.12022 include a minimum prescriptive requirement for onsite renewable energy. This change is representative of a more widely adopted shift to renewable energy, an optional mechanical system performance path, allowing HVAC system efficiency trade-offs based on the new total system performance ratio (TSPR) metric, and new requirements to address the impacts of thermal bridging,

according to ASHRAE.

Additional highlights include new energy credit requirements for a customized approach to improving energy efficiency, new informative guidance for using carbon emissions, site energy, or source energy as alternative performance metrics to the current energy cost metric, and signifiant efficicy increases in IEER for commercial rooftops and a new SEER2/ HSPF2 metric for less than 65K sized aircooled heat pumps.

“Including sites also clarifiesthat onsite renewables could count as credits towards energy usage across the entire building project, even if located in a parking lot or other onsite location, not only within the footprint of the building,” said Brundage. “We are continuing to improve efficicy and reduce energy use through updates to Standard 90.1, meeting the needs of the design community and keeping Standard 90.1 pertinent as demand grows for reduced energy use and carbon emissions.”

Brundage also added that efficiency increases in IEER for commercial rooftop units provide substantial cost-effective energy savings and, as a side benefit, encourage variable speed operation, which helps improve dehumidification performance in humid climates.

applications at any time until March 31, or until funding is fully distributed.

According to the program, the objective is to address barriers to deep retrofit project development and implementation, facilitate the development of deep retrofit projects in Canada, and contribute to transforming the buildings sector.

As per the DRAI program, a deep retrofit involves upgrades to multiple building systems and equipment such as: replacing

roofs, adding or increasing insulation, replacing the heating, ventilation, and air conditioning system with more efficit ones, and switching from fossil fuels to electricity or other energy sources for space and water heating.

Canadian organizations (for and nonprofit), all levels of government, and Indigenous organizations and groups are eligible to apply. Application packages can be sent to drai-iarm@nrcan-rncan.gc.ca.

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 15 n Industry News
funding available towards deep retrofit projects

n Air Conditioning

Energy efficiency rooftops

Johnson Controls, Milwaukee, Wisconsin, officially launches its new line of commercial rooftop units. The Choice line is available in high-efficicy, ultra-high-efficicy and heat pump models. The 12.5- to 27.5-ton RTUs can be configued for cooling only, stage-gas heating, modulating gas heating, and now heat pump operation in conjunction with factory-installed electric

Entry-level solution

Allied Air Enterprises, West Columbia, South Carolina, adds new single-stage air conditioners under the Armstrong Air and AirEase brands. The 16 SEER air conditioner

heating. It is available in dedicated downflw in 15 to 27.5 tons, or side flw in 15- to 25ton configurtion. The ultra-high-efficicy Choice rooftop unit leverages a combination of Copeland ZPKZ fixed speed, ZPS twostage, and SPV variable speed compressor technology. Johnson Controls Choice, York Sun Choice, and TempMaster Omni Choice rooftop units feature a convertible filter rack with pleated filters up to MERV 13. Johnson Controls u www.johnsoncontrols.com

is an entry-level solution for the Canadian market and is available now. The 4SCU16LE air conditioners feature an all-aluminum tube and fin coils with a single-stage scroll compressor. It has four removable louvre panels to help make cleaning the coil easier. Allied Air Enterprises u www.alliedair.com

Dual-fuel ready

Daikin, Markham, Ont, announces its new VRV Emerion, which is available in single and dual-module lineups. The new 16-20 T single modules allow a system capacity of up to 40 tons with two modules. VRV Emerion’s new larger capacity single module units offer opportunities to reduce the space required for mechanical equipment and the number of electrical and piping connections. It has the capacity for heating to go down to -13 F as standard and high heating capacities at 17 F, making it an ideal choice for all-electric heat pump solutions. It is dual-fuel ready with connectivity to a Daikin communicating gas furnace or all-electric heat pump heating. Daikin u www.daikinac.com

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In the industry, we’ve been trained to believe that the best home comfort system consists of a fossil fuel furnace combined with an energy sucking air conditioner. I have been around long enough to remember the government incentivizing homeowners and builders from coal to oil to electric baseboard heating and then to natural gas furnaces.

I cannot count the number of upgrade grants the government has supported to upgrade efficicies from 60 per cent, 80 per cent, 90 per cent, and now 99 per cent AFUE

Continued on page “21”

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 19 n HVAC
Heating and cooling doesn't always mean furnaces and air conditioners.
A lot can be learned from the automotive industry on how to properly shift towards electrification.
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Continued from page “19”

gas furnaces. To complete the home comfort system, we would couple the furnace with an energy sucking air conditioning system that could cause brownouts on entire electrical grids on the hottest day of the year.

During this era, very little attention was placed on our planet and the generational

as environmentalists.

Environmentalists can be broken down into two main categories — innovators or early adopters. These groups will have researched the product more than the people selling them, they are well versed on the limitations of the product, may be willing to make signifiant compromises on operating cost and comfort, and spend more upfront to help reduce their carbon footprint. The biggest hurdle for this group is figuing out how to fund the purchase.

The Government Cheese Chasers

A big mistake the electric auto manufacturers made was confusing the cheese chaser for the environmentalist or the pragmatist.

environmental damage we were causing for our grandchildren. Today’s comfort was the catalyst for engineering new products.

Like-for-like

The only industry that creates more carbon than home comfort systems is the transportation industry, albeit manufacturing trumps all.

The personal transportation industry has been on the move for more than a decade to signifiantly reduce its carbon footprint on the planet. There are a lot of lessons that can come from their challenges. The introduction of an all-electric vehicle came with a high price tag and limited usage. It also created traffijams at the charging stations. With limited travel distances, the introduction of these vehicles also had a limited market. Therefore the lesson here from the automotive industry is to understand your customer.

The first consumer group that was attracted by electrifiation tended to identify

Cheese chasers are not going to be willing to accept anything less than perfection at a discount. The purchase is prompted by the cheese, the rebate grants, and the low fiance rates. They want the best of the best on someone else’s dollar. Electric auto sales failed to have cheese chasers articulate what is important to them up front and what they are prioritizing — upfront cost, fuel savings, or comfort.

The consumers who weren't happy that they jumped during round one supplied the next consumer group with the proof to justify sticking to their old ways. The heat pump market was no different.

The Pragmatists

These consumers are the “let Mikey try it” consumers. They are steadfast in their conviction and see little need to mess with the status quo. Their paradigm is very hard to shift The ones that still have a fax machine are likely the ones that still have it plugged in. The way to change their mind is to take away the past as an option. These consumers are the customers of the future, not today, but someday! What they have learned is that the best introduction to electrifiation is the hybrid system.

Continued on page “23”

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 21 n HVAC
What we were not taught was that a heat pump properly sized for cooling load can reduce your carbon footprint significantly; that a properly sized heat pump will dehumidify and cool just as well as a properly sized air conditioner.
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Continued from page “21”

Early Adopters

Automotive manufacturers have embraced the electric era. It is now time for this industry to take some responsibility and identify as the early adopters, the innovators, and the environmentalists. It is our turn to educate what is truly possible, affordable, and will sustain permanent reduction of our carbon footprint. It’s time to switch to hybrid home comfort systems, or more commonly known as high-efficicy fossil fueled furnaces with a cold climate heat pump.

Recently, I overheard an equipment manufacturer say that there was no heat pump market in Canada. Talk about a complete lack of respect for Canadians! Natural Resources Canada recently conducted a presentation to industry associations on Canada’s manufacturing and supply strategy for the Canadian heat pump market. The presentation, which was summarized by the Canadian Institute of Plumbing and Heating (CIPH), highlighted the overall heat pump markets — “specifically what technologies will be needed for the Canadian market in its transition to heat homes as well as what the current heat pumps supply looks like and how this translates into how manufacturers intend to meet the expected growth.”

For the Canadian market, this means

cold climate heat pumps as this is pertinent for the Canadian market as temperatures easily get down to -15 C. These cold climate heat pumps are defied by operating with a coefficient of performance of at least 1.1. “This they considered to be generous performance definition in comparison to the others, some other entities have defied these heat pumps to have COPs at least 1.75, 1.8, and some even over two,” reports NRCan. According to the presentation, this means that around 76 per cent of the heat pumps manufactured by those interviewed for the report can meet this defintion, and 66 per cent of the total market today is cold climate heat pumps produced by foreign manufacturers, with an additional nine per cent imported from domestic entities.

Hybrid systems

There has been quite a bit of misinformation about heat pumps in Canada and we have been taught that unless it can carry the user the same distance as fossil fuels, then it is useless. We have been taught to size the add-on heat pump to carry the full heat load on the coldest days, and we have been taught that a properly sizes heat pump is grossly oversized for proper cooling. Well, they got that part right.

What we were not taught was that a heat pump properly sized for the cooling load can

reduce your carbon footprint significantly; that a properly sized heat pump will dehumidify and cool just as well as a properly sized air conditioner. They didn’t teach us that, like a hybrid car, the hybrid comfort system will make almost everyone happy.

A fun little tidbit, did you know a qualifying furnace/heat pump combination that is centrally ducted will receive up to $6,500 in government grants, or that a furnace/heat pump combination is less expensive than installing a furnace air conditioner after rebates. It also should be noted that most rebate programs focus more on air-to-air mini splits.

Almost everyone can benefit from a heat pump hybrid system, so tell me why are we still quoting 13 SEER air conditioners? It might be time to look at all the options. :

Glenn Mellors was born into a plumbing family and started in the industry in 1973. He entered the HVAC side of the business in the 80s, working in wholesale, and then joined Lennox in 1992. In 2008 he joined the ClimateCare Cooperative Corporation, an Ontario contractor group, where he is director of training and implementation. Glenn can be reached at gmellors@climatecare.com.

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 23 n HVAC
2.5% Innovators Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16%
E.M. Rogers established a theory in his book, Diffusion of Innovations, to explain how ideas or products gain momentum and diffuse over time.

Canada has extreme weather events and it seems to be somewhat continuous over the past couple of years. Whether it’s heat waves, fires, floods, or tornadoes, the intensity of these events has become increasingly more detrimental to human life, according to insurance companies and climate researchers. A team of 27 scientists from the World Weather Attribution initiative concluded that the northwestern heat dome last June killed several hundred and set an all-time temperature record of 49.6 C in the village of Lytton, B.C. Shortly after the record was set, the town was destroyed by a wildfi e.

Low-carbon municipal buildings

“Fromthestrengthofthestormsoverthepast few years, you can certainly see the effect of climate change coming in,” says Scott Quinn, director of engineering for the County of Kings in Nova Scotia. “Intense rainstorms,

more heat warnings and even droughts in parts of Nova Scotia that we've never experienced before. Our apple orchards are being attacked by pests, and now we’re seeing ticks (that carry Lime Disease). They were not an issue in the past, but they’ve exploded in the last few years.”

Scott Quinn and Sean Veldhoven, facility manager of the municipal building, are coming into their first winter with a new 7,000-sq. ft. net zero engineering and public works operation centre. It is heated and cooled via a VRF heat pump system and some geothermal for the office part of the building. Rooftop and adjacent ground-mounted solar arrays of 225 and 135 panels respectively supply more than 100 per cent of the power needed for the structure. A heat recovery ventilator and highefficicy envelope cut energy use by 31 per cent to help make this possible.

Any surplus power can be used as the county continues to electrify its ground flet. At the moment, it is operating a few hybrids, but the plan is to electrify about 20 county vehicles.

The design for the new mechanical system has been refined from a previous project three years ago, when they built a 22,000-sq. ft.officbuilding equipped with HRVs, minisplits and some geothermal. “For that one, we have yet to turn on the backup furnace. It’s working great and saving us money.” An

24 Plumbing & HVAC – March/April 2023 www.plumbingandhvac.ca n
Green
Building
The new net zero engineering and public works operation centre in the County of Kings, Nova Scotia.
Several new municipal projects in Atlantic Canada have turned to VRF heat pumps as the solution for saving money on energy costs.
Bruce Nagy

idea of the savings can be estimated from an old 50,000-sq. ft. property that costs about $80,000 each year for oil and about $72,000 for electricity for the boiler and other equipment. Projecting on a square foot basis, the new buildings are likely saving the county about $82,000 each year.

The federal government has supported these decarbonization initiatives (and feasibility studies) by underwriting the Federation of Canadian Municipalities Green Municipal

Fund, which provided the county with almost $3 million in low-interest loans and grants.

Retrofits that just made sense

As the cost of building materials increases and embodied carbon appears more often on the radar of policy planners and changemakers, gutting and retrofitting old buildings is now more often a rational choice than levelling them and starting over. Canada needs more deep retrofits, according to Lorrie Rand,

sustainability specialist at Habit Studio, a design services company

“We have sort of declared we won’t do projects that are not sustainable. We thought it mightstopsomeclientsfromcomingtous,but ourbusinesshasonlyincreased.Fiveyearsago, I would bring up Passive House with clients. But now I’m usually not the fi st to mention it. Nova Scotia is a progressive place and now clients ask me about it. They want to do the right thing and they want to keep energy bills low,” explained Rand in a phone interview

To accommodate the growth of the company,HabitStudiohaspurchasedabigger building for their own office in downtown Halifax near the harbour. “We did not make the highest offer, but we were the only bidder that said we would not knock it flat. That was part of the reason we were lucky and got the building.”

At fi st glance, it seems unsalvageable, but on closer inspection, the building lives up to the realtor cliché of having good bones with solid timber, stone construction, and some charming antique touches. The plan is to add as much insulation as possible in a small structure and upgrade to modern wooden framed windows.

Intello smart vapour barrier will help minimize energy losses while moving

Continued on page “27”

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 25
The mechanical room, County of Kings, Nova Scotia.
As the cost of building materials increases and embodied carbon appears more often on the radar of policy planners and changemakers, gutting and retrofitting old buildings is now more often a rational choice than levelling them and starting over.

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moisture out of insulation cavities and into the conditioned space, where HVAC equipment can manage it. The small three-story building will be heated with air-source heat pumps, but possibly not a heat pump water heater. “The calculations showed that a tankless solution might be better in this case.”

Some of the mechanicals are still being finalized, and Rand is considering adding some solar. We will have to do a follow-up report on this project once it is completed

and photographed, and once it features Habit Studio’s trademark beautiful interior finshing detail.

Small-town budget management

Like the County of Kings project already described, another small government in Nova Scotia has made the numbers work for low-carbon buildings and solar. The town of Argyle at the southern end of the province not only saves operating costs through energy efficiency and on-site solar but is deriving revenue from its investment in a separate community solar project.

Alan Muise, chief administrative officer, explains that its new 8,200-sq. ft.

administration building was designed with a tight envelope and modern windows for low energy consumption. When an on-site solar array and VRF heat pump system were added, the expectation was that the building would save $27,000 per year. In the fist summer, it has already saved about $16,000. With inflation included in the calculations, the new building might save a total of $3.2 million over 30 years, according to Muise.

Again, in this case, the Federation of Canadian Municipalities helped with upfront financing and grants. Although that only covered about half the cost, this frugal little municipality with a population of 7,900 people was able to finance the rest of the

building from its ongoing surplus.

“It felt irresponsible to design our new building with oil heating. This is not just about being positive for the environment; it is also a cost-saving opportunity.” The project was presented to the townspeople and 89 per cent voted in favour of proceeding.

“The economics matter because we’re a small town and we need to fid ways to fund services without raising taxes,” says Muise. “We knew the solar would be beneficial because we have experience with renewables investments.” He’s talking about the town’s partnership in a Wellington, Nova Scotia solar project that pays back at the rate of $55,000 each year. “We will recover our investment after only six years and after that, it will provide surplus revenue for Argyle.”

It looks like although climate change is resulting in devastating extreme weather and damaging storm surges, it can also create a positive wave of economically benefical clean energy projects in places like Nova Scotia, where they are needed. :

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 27
n Building Green
Bruce Nagy is a Toronto writer, author of more than 150 articles on clean energy. His new book, ‘The Clean Energy Age’ was released on Amazon by Rowman & Littlefild in 2018. He can be reached at bruce.nagy@rogers.com. Low energy, and low operating costs for the new building in Argyle, Nova Scotia. Energy efficiency and a solar array in Argyle, Nova Scotia make the new building net zero.

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Manifold upgrade

Uponor, Apple Valley, Minnesota, enhances its radiant manifold offering by introducing its new commercial stainless-steel manifold. The commercial stainless-steel manifold provides more than double the gallons per minute (GPM) and handles 48 GPM total flow with up to four GPM flw meters, 1 1/2-inch distribution ball valves, and one inch loop isolation ball valves that reduce loop pressure drops without impact to pump head pressure for improved system performance. Uponor u www.uponor.com

New boiler series

Rinnai, Atlanta, Georgia, announces two new products in the commercial sector, the Demand Duo R-Series 2.0 and RCB-Series commercial boiler. The Demand Duo tank features a pre-installed intake filter and exhaust connector, a three-piece, six-inch B-vent accessory kit, cold inlet connections, and a new integrated pump control. The RCB-Series boiler has a stainless-steel water tube heat exchanger, 97 per cent thermal efficicy, premix burner performance that reduces greenhouse gas emissions, and a turn-down ratio of 10-to-one. Rinnai u www.rinnai.us

Gasketed plate/frame heat exchanger

Bell & Gossett, Morton Grove, Illinois, announces its new gasketed plate and frame heat exchanger GPX P45, P55, P86 and P110. It is ideal for the growing demand in modern HVAC applications. Standard options include a variety of high-efficncy plate corrugations, material options of 304SS, 316SS or titanium plates, and nitrile or EPDM gaskets. The plate design generates high turbulence resulting in high heat transfer coefficits. Gasketed plate and frame heat exchangers are available in the ESP-thermal heat exchanger selection program. Bell & Gossett u www.bellgossett.com

Five new sizing offerings

Weil-McLain, Burr Ridge, Illinois, adds five sizes to its Stainless Vertical Firetube (SVF) boiler portfolio for commercial heating applications. The SVF boiler line will now include BTU sizes of 500, 600, 725, 850 and 1,000 MBH models. The SVF boiler line features thermal efficicy of up to 98 per cent, up to 12 to one turn-down ratio, 160 psi working pressure, and natural gas or propane fuel options. Weil-McLain u www.weil-mclain.com

Commercial HVAC

Fujitsu General America, West Fairfild, New Jersey, introduces the Airstage VU-V, its new line of VRF systems. Airstage VU-V outdoor units can serve either as a heat pump or heat recovery system with setting changes and the addition of refrigerant branch units. The VU-V can provide heating in temperatures as low as -15 F and can provide cooling in outdoor temperatures as high as 126 F. The new VRF platform offers broader size ranges, with single modules from six to 16 tons and up to 36 tons per combined system. As many as 64 indoor units can be connected to a single system.

Fujitsu u www.FujitsuGeneral.com

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www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 31

Protecting a hydronic system doesn’t start once the installation begins, it starts the second the deposit cheque is in the technician’s hand. While there are several more obvious tips and tricks to remember when protecting the hydronic system, there are some that aren’t as thought about as frequently that need to be highlighted. Those are the ones that could affect the way any contracting company conducts business.

Water quality

There is a mistaken concept within the industry that it is acceptable to fill systems with tap water and expect everything to work flawlessly. The reality is that just because the

water is safe to be consumed doesn’t mean it should be put into the boiler system. Potable water is for humans, not boilers.

Water quality is best handled by ensuring the water put in the system is up to par. When designing a hydronics system, it is good practice to use a digital feeder to fill the system and not an autofill. Make sure that the feeder is getting good quality water. Using products like demineralizers or TDS meters can ensure that the water isn’t too aggressive. In total, that would put the contractor at under $200 in tools.

Air elimination

Eliminating air from the system ensures good overall performance, but it also ensures that the system doesn’t fail. If the system has poor water quality and all air has been removed, the corrosion process is stalled.

That’s not to say that filling the system with tap water and using an air separator will be good enough for the system. It should still be filled with good water and with the use of proper air elimination to ensure that whatever is in the system will have minimal impact.

Air elimination is done using an air separator that utilizes a coalescing media to remove the microbubbles from the system. It is installed at the hottest point.

The reasoning behind this can be best explained by discussing boiled water. As the water heats up, more and more bubbles will form. That is the nearly five per cent air entrained in the cold tap water being squeezed out. Removing the air from where it originates just makes the most sense.

Continued on page “35'

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 33
n Hydronics
When something goes wrong, it is oftentimes the contractor that is blamed when a simple maintenance plan could have mitigated the problem.

n Hydronics

Continued from page “33”

Dirt elimination

Now, this is a big one I was recently at a small commercial project that had boilers installed without magnetic separation. This resulted in a serious problem. One heat exchanger had already failed and more would come.

When conducting retrofit installations, it is important to be vividly conscious of the existingcomponentsthataregettingreplaced. Namely, old piping in the building that is shedding its materials into the system over time, which was evident on this job site. And just because the boiler is scaled up doesn’t mean that it’ll fail.

Youcanputinanewcondensingboilerand within a short amount of time, it will build up scale to the point where the heat transfer and performance have been negatively impacted, again. People grossly underestimate how bad water quality in boilers can impact the whole system. Fouling in Heat Exchangers by Hassan Al-Haj Ibrahim, Arab University for Science and Technology, is a good resource to learn more about the topic.

A study by Harwell Laboratories noted that 15 per cent of the costs of a process plant can be attributed to heat exchangers and boilers, and of this, half is caused by fouling. The more staggering statistic is that losses due to the fouling of heat exchangers in industrialized nations are about 0.25 per cent of their GDP.

Imagine buying a new car, filling it with the wrong fuel, and discovering the car’s mileage is permanently damaged without an engine change. That is what we are talking about with boilers and poor water quality. Scale reduces the boiler’s effici cy, and restricts water fl w which increases pressure drops and lowers pumping capacity, resulting in comfort and performance issues.

Combustion setup

Proper combustion setup is important, whetherthe system is natural gas or propane. The cleaner it burns, the better. Fuels like

propane leave behind deposits when it is burned on the fireside of the tubes. The situation is amplified if the tank is not properly filled year-round.

In tests that have been conducted, it has been shown that 0.8 mm of scale reduces the heat transfer by 9.5 per cent. That is 0.03 inches!

If there is 4.5 mm or 0.18 inches of scale, the boiler’s heat transfer has been reduced by 69 per cent.

System design

There might be some people skeptical of the importance of system design and believe that a system design can be winged. The reality is that paying for a design will save money up-front and, more importantly, pay high dividends to make technicians profitable. A design ensures that the pumps, pipes, and controls are sized correctly. This will help

Continued on page “37"

March/April 2023 – Plumbing & HVAC 35
This installation was conducted by Curtis Boyd of Nottawsaga Mechanical. He utilized his social media platforms to create a dialogue with other HVAC installers to discuss the work done.

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n Hydronics

Continued from page “35”

eliminate three or more unnecessary trips to the wholesaler to grab forgotten parts.

Maintenance

It’s a bit ironic when the contractor gets blamed when a piece of equipment fails prematurely. In a lot of cases, the failure is a result of a lack of maintenance; yet the reality is that contractors struggle immensely getting their customers to agree to maintenance. They see the cost of annual service as being prohibitive and not worth it.

Recently, I spoke with Derek Trudgen, HVAC supervisor at the Hayter Group, and asked him what his experience with maintenance on equipment is. He told me, “When we do our annual boiler maintenance, we typically charge $170. We clean the boiler and go through a detailed inspection list of 55 items and ensure the unit is meeting and exceeding factory specifications wherever possible.

Most of our maintenance plans originate from us going out for a service call on a unit that has never been maintained. The homeowner, depending on how bad the system is, can face up to a $1,500 repair bill and are now on our annual maintenance program.”

“The homeowner doesn’t always see the value in our maintenance plans, but they all want to sign up after they have a problem.

People before profits

This is something that happens a lot and is something hard to solve. Very often, contractors will be asked to work on equipment that they are unfamiliar with. I recall my fist experience seeing a geothermal heat pump. On that occasion, I packed up my tools and went back to the truck. Sometimes it’s good to understand when you might do more harm than good and walk away.

a hydronic heating system is to not do it at all. As a contractor, if you have never piped a boiler before, don’t do it without help. If you have never seen a hydronic heat pump, don’t pass go, do not collect $200. Get back in your truck and do the right thing. Let somebody who is qualifid do the work and put people before profits. The potential harm to the homeowner and your brand is not worth it. :

Scale within the system can build up to the point where the heat transfer and performance are negatively impacted.

“The number one thing we much do to make sure we are the best is to partner with the best. We don’t want to sell ourselves short,” explains Brandon Farr, president of Farr Mechanical. “When you pick a good company to work with, you get really good technical support. There are also good companies that do shit work.”

Sometimes the simplest way to protect

Michael Ridler is a technical services manager at Eden Energy Equipment. He started out working for a Ont-based HVAC company and now focuses on providing fild support and technical training to contractors, engineers, and builders on heat pumps, boilers, and all things hydronics. He can be reached at edenenergymike@gmail.com.

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 37
It can’t be stressed enough the importance of water quality in a hydronics system; using TDS meters can ensure the water isn’t too aggressive.
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One worker was killed during the dismantling of an ammonia refrigeration system at the Artic Glacier facility in Kamloops, B.C., on May 26, 2022. The worker opened a one-inch quarter-turn ball valve on a cut-off pipe that was connected to a high-pressure receiver for the P34 ice machine, believing that the vessel was empty The vessel was not empty; as a result, there was a large release of ammonia, and the worker was sprayed with the liquid refrigerant. Immediately following

the ammonia exposure, the worker moved further into the building away from the receiver. Other workers were able to evacuate the area to the outdoors, but the injuries sustained by the worker who opened the valve were fatal.

It would take more space than we have here to go through every detail of the incident. And if you are interested, Technical Safety BC’s report and appendices are available on its website.

Miscommunication

In this article, we will focus on one of the themes that emerged during the investigation: terminology and language.

Continued on page “41”

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 39 n Refrigeration
Lack of communication led to a worker believing the system had no ammonia in it.
A cloud of ammonia coming from the open valve on the P34 receiver. Photo by Technical Safety BC

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Continued from page “39”

The facility stopped producing ice in 2016 and the two on-site ammonia systems (P24 and P34) were shut down. As part of the shutdown, a refrigeration mechanic “pumped down” the systems and stored the ammonia in the high-pressure receiver and “dismantled” the ice machines. There is a note on the invoice for this work that the ammonia will need to be removed later. However, in future conversations regarding the invoicing for that work, the work was characterized in an internal email exchange as “repairs to the facility freezer and NH3 removal” and “NH3 removal and blow down of P24 and P34.”

Additionally, around the time the equipment was being shut down, there was also a call to the fire department about an ammonia odour. The fie department was told that the system was being “decommissioned” and they were “venting residual ammonia."

Ths seemingly confliting information led those who remained in charge of the facility in the following years to believe there was no ammonia in the systems. In 2018, they hired another refrigeration mechanic to remove the evaporative condenser from the P34 system so it could be reused at another facility and this mechanic did so

More to the story

There is of course more to the story than this, but you likely get the picture and can see how communication could result in assumptions that the ammonia was removed and that the system was empty. It seems that the contractor who shut down the system and pumped it down vented the residual ammonia from the piping and other components and leftthe bulk of the ammonia in the receiver.

Several words contributed to miscommunication throughout the end of life of this equipment that are worth discussing.

• Pump down

• Vented

• Disassembled

• Dismantle

• Decommissioned

• Pump out

• Evacuated

I think it is mostly clear in the industry what “pumped down” means, but as I start to think about more complex systems, some of this clarity disappears. For example, in small commercial refrigeration systems, the act of pumping something down almost always means closing the king valve and using the compressor to move most of the refrigerant to the receiver. In some cases where the receiver isn’t big enough (or when there isn’t one, like

there isn’t a large enough receiver to contain all the charge (which is common), or where there are multiple low-pressure receivers? You would, in these cases, be able to pump down a portion of the system. Would the system ever be considered pumped down? Is that different than a pump out?

They don’t remember checking the rest of the system for ammonia but are certain that they did not fid any residual ammonia in the condenser or the associated piping, which reinforced the understanding that the system was empty and didn’t contain ammonia.

in residential A/C units), a system would still be considered pumped down as long as the liquid is mostly contained on the high side of the system. I don’t think this definition is controversial. But what about a complex system or larger industrial system where

To each their own

As a refrigeration mechanic, I think I can understand the following sentence. “We

Continued on page “43”

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 41
n Refrigeration
The truth is that out of everyone who reads these two sentences, there will probably be dozens of interpretations
The quarter turn valve that was the source of the ammonia leak is shown “as found” in the open position. Photo by Technical Safety BC
www.plumbingandhvac.ca

Continued from page

are going to pump out the header and vent the residual ammonia so that we can decommission the piping to an evaporator before dismantling a freezer; the header will have to be evacuated before being put back in service for the other coils.”

Consider the following change: “We are going to pump down the system and evacuate the header so that we can decommission a freezer and disassemble the evaporator; once this is done, the header will be put back into service.”

Do these sentences mean different things? Does their meaning change depending on specificdetails about the system? Does their meaning change if you are an ammonia mechanic or a freon mechanic? Does the meaning change in different geographical regions?

The truth is that out of everyone who reads these two sentences, there will probably be dozens of interpretations. What does decommissioning mean? Is it permanent or can something be temporarily decommissioned? Can pump out and pump down sometimes mean the same thing? Does evacuation mean using a vacuum pump or does it simply mean emptying something?

Creating a safe workplace

I know some people will have strong opinions about the questions I asked, and I have mine. The reality is that we work in an industry that many people don’t understand so it’s important to remove the ambiguity that language and word choice bring

One of the ways we can do this is by implementing procedures and industry practices that always leave the systems we work on safe. There are standards developed in many industries (including ammonia refrigeration) that outline procedures for properly decommissioning systems and they can provide useful guidance

There are also steps we can take every day to help when we are working on systems and leaving systems offline. This might include labelling of systems, lock-out and tag-out of isolation valves, marking gauges as “out of service” if they are connected to the system but have been isolated or vented. And the list could go on.

Going back to the Kamloops incident, it seems clear that communication played a central role in leading the worker who opened the valve to believe the system was empty. Ths worker was not a refrigeration mechanic, and neither were any of the riggers that were there performing the demolition. They didn’t

think they needed a refrigeration mechanic because the system was empty.

There is much more that could be discussed concerning this incident, and I have skimmed over some of the explanations of what exactly happened for the sake of brevity. The Technical Safety BC report does a good job of explaining the incident in much more detail. Perhaps in a future article, we can discuss some of the engineering analysis that was done to support the investigation. :

Greg Scrivener is the lead refrigeration engineer and a partner at Laporte Consultants, Calgary, and works throughout Canada and the U.S.  He is a professional engineer and journeyperson refrigeration mechanic. He can be reached at GScrivener@laporteconsultants.com

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 43 n
Refrigeration
“41” The state of the valves around the receiver when the ball valve was opened. Photo by Technical Safety BC

HVAC/R industry celebrates International Women’s Day

Women in HVAC/R Canada hosted a very successful first in-person event on International Women’s Day on March 8 at the Novotel Toronto Vaughan Centre in Vaughan, Ont. The one-day event sold out both attendees and sponsorship with over 130 attendees participating virtually and in-person.

There were three presentations and one panel discussion held. Christine McIver, CEO of Inspired Choices Network, Jennifer Bagley, CEO and founder of CI Web Group, and Julie Cole, co-founder of Mabel’s Labels, each gave their own presentation.

The panel discussion was moderated by Brandi Ferenc, HVAC journeyman at Southlake Regional Health Centre, and

featured Tania Johnson, CEO at MCAC, Glenda Rahn, program director at Support Ontario Youth, Mark Venters, managing partner at Venters Recruits and Rockstar Recruiting, and Katie Hughes, owner of HVAC Doris, as the panellists.

After, there was a question and answer period, which ended on an interesting discussion. Chelsea Goberdhan, government relations specialist for HRAI, asked Venters to discuss best practices for hiring women of colour in the skilled trades. A Venters' employee from the audience stood up to answer the question. She mentioned her own experience being used as a token minority and stated that the best candidate should be hired based on skill, not on gender or skin

Women in HVAC/R Canada’s founders Shelley Vallee-Ewing (left) and Nathalie Brooks (right) kicked off International Women’s Day with a call to the industry to help mentor and offer more career opportunities for women in the trades.

colour. But she also stressed that neither should hinder the individual in their career.

After all the business talks were over, the event hosted a dinner and dance.

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This year I was fortunate enough to be invited to join Taco Comfort Solutions alongside a group of 20 contractors, engineers, and reps on a fantastic trip to ISH Frankfurt. To try and describe ISH to someone who hasn’t gone is difficult because we don’t experience anything like it in North America With 153,734 visitors from 154 different countries, it is a mega industry event.

“ISH more than fulfilled the expectations of our customers and came at just the right time to meet the challenges of our time such as climate protection and security of supply,” said Wolfgang Marzin, chairman of the board

of management of Messe Frankfurt. “The industry presented tangible solutions for the current political requirements, so that the installing trade, as the strongest visitor group, also benefited.” The event ran March 13-17 at the Frankfurt Fair & Exhibition Centre in Frankfurt, Germany.

The group spent two full days taking in all 12 halls at the show and wasted no time in discovering how different our industry is in Europe. When I asked the group what stood out to them, a number of common themes emerged. Chris Conley, principal engineer at Daniels Wingerak Engineering Ltd., was impressed with how products have a real focus on their finsh and appearance in a way

we don’t see in North America, “Clean lines, smooth corners, and colour selection were all considered on most products.”

Priorities

Blake Erb from HVAC Sales/Service noticed the quality build of products, “Cost is not the most important factor in the European market, but rather energy efficiency and lifecycle costs were given priority.”

It was interesting to see the prevalence of air-to-water heat pumps at the show. What used to be a huge hall filled with boilers has turned into an incredibly diverse display of air-to-water heat pumps. Hardeep Chahal from Next Supply remarked, “The number and diversity of heat pump manufacturers currently in the European market predicts what will be available in North America in the coming years. We need to be well prepared and adapt quickly to arising changes in the market.”

www.plumbingandhvac.ca n Letter from the Publisher
Jean-Francois Bergevin of Enviroair
46 Plumbing & HVAC – March/April 2023
One of the highlights from the show was learning about Taconova’s Nano Panel, which utilizes the hydronic system to provide in-suite domestic hot water through a double wall heat exchanger. A group of 20 contractors, engineers, and reps joined Taco on a trip of a lifetime to ISH Frankfurt.

Industries commented on the common use of propane as the refrigerant, “Propane R290 seems very common in Europe and that is something we have never seen here in North America… The big hurdle will be convincing people that this flammable refrigerant is not dangerous.”

Sarmad Gorial, principal of MCW Consultants Ltd, was really impressed with the Nano Panel from Taconova, which utilizes the hydronic system to provide insuite domestic hot water through a double wall heat exchanger, eliminating the need for a central domestic hot water plant, distribution pipes, and a recirculation system. “It is a simple concept but powerful and thoughtful. Imagine that you don’t have a centralized DHW system in the building and rely on the heating boilers and system to provide heating and DHW at the same time!”

Wood pellet heating

Additionally, Erb was impressed with the amount of ultra-high efficient packages including “boiler/heat pump packages, cogeneration technology, dual fuel utilizing wood waste, and even simpler items like integrating balancing and three-way valves together for

a simpler fan coil piping application.” Conley agreed noting the presence of “wood pellet heating, hydrogen (and hydrogen/natural gas mixes) combining with air-source heat pumps to provide a balanced method to control carbon emissions.”

Bergevin discovered in discussions with air-source heat pump manufacturers that they use water even in freezing temperatures, “Their design temperatures are not as cold but still I feel that in North America, glycol is put everywhere as soon as there is a freezing risk.”

Barry Cunningham of Bartle & Gibson commented as well on the lack of glycol in European systems, “Some concern should be given to making sure the equipment we use in North America has considered the use of glycol and in concentrations as high as 50 per cent and that they address that in their manuals.”

Plastic piping galore

On the plumbing side, the amount of plastic pipe stood out to Phillippe Poitras of Le Groupe Jenaco, “Lots of drainage piping in North America are glued for plastic or

connected with clips for metal, but I have seen only plastic piping at the ISH, and it is a clipping system with a gasket.” The rest of the trip included sightseeing and plenty of other excursions. Highlights included visiting Heidelberg Castle, driving mini hot rods through the streets of Munich, joining thousands of beer enthusiasts at a local strong beer Octoberfest-like festival, and an unforgettable experience at a football match between Augsburg and Schalke.

Since I joined this industry almost 20 years ago, I knew this industry had great people. It was amazing how fast this group gelled and this experience has created lifelong memories and friendships. I am sure I speak for the group when I say thank you to Taco for an unforgettable experience.

The next ISH trade show will be held from March 17-21, 2025 at the Messe Frankfurt, Frankfurt, Germany. :

Mark Vreugdenhil is the publisher of Marked Business Media.

He has been in the trade publishing business for almost 30 years and has been the publisher of Plumbing & HVAC magazine for close to 20 years. He also owns/ operate TrainingTrades.ca, an educational hub for the skilled trades.

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 47
Mixed in with business, the team of Canadians had a bit of fun racing down the streets of Munich. There was a surplus of plastic pipe at the trade show, many of which utilized a clipping system with a gasket. Many of the toilets seen along the halls of the huge trade show were wall mounted with plastic in-wall reservoirs.

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n People & Places

Laars reaches 75th anniversary milestone

“Seventy-five years of business is a wonderful milestone to celebrate, which could not have been reached without all the efforts of our valued employees, customers, and channel partners,” shared Domingo Mohedano, vice president and general manager of Laars Heating Systems.

The residential and commercial boiler and volume water heater manufacturer will celebrate its 75 anniversary in 2023.

Laars first started in 1948 as Laars Engineering with its creation of low-mass finned copper tube heat exchangers. The company’s first success came within the swimming pool heater market that emerged in California after the Second World War.

Modern era

With electrifiation hitting North America by storm in recent years and climate goals soon hitting deadlines, Laars has been looking to

People Th

support those efforts by developing products such as heat pump technology that will “play an important role in the future of space and water heating.”

The company will be launching its Laars E-Therm commercial heat pump later this year. “Ths exciting new technology is based on R744 refrigerant, more commonly known as CO2, that offers superior performance in cold weather climates.” It will be able to operate

in temperatures below -17 C, while outputting hot water as high as 82 C. “We are very excited about what these new technologies can bring as we strive to meet the needs of North America’s electrification targets. However, it is important to note that high-efficicy gas-fied boilers and water heaters will continue to play a critical role for years to come as the electrical supply infrastructure is built out to support North America’s aggressive electrification goals,” explains Mohedano.

Laars recently phased expansion plans to its facility and is looking to hire manufacturing, technical, and support positions to further these efforts. As such, Laars recently purchased 7.6 acres of land in Rochester, New Hampshire.

“I want to thank everyone for those efforts and to also thank our loyal customers; we appreciate their support and look forward to serving them for years to come,” shares Mohedano.

Franklin Electric announces three new additions to its Industrial & Engineered Systems (IES) business unit. Andrew Ros s will take on the senior business unit manager role, leading the company’s growing aftermarket parts business. David Gray and Marty Lehmann will serve as business unit sales managers for the industrial distribution and OEM business units, respectively. Gray will take over responsibility for the company’s industrial distribution customers across the Southwest region. Lehmann will focus on bringing Little Giant’s growing product line to OEM customers.

Brian Cox joins Navac as its new director of sales for its industrial vacuum business unit. Cox has more than three decades of sales and business development experience in the industrial vacuum sector. Most recently, he oversaw business development for Nashua, NH-based Pfeiffer Vacuum

Saniflo Canada promotes two business development managers with new regional sales management positions. Eric Delarosbil will act as the eastern regional sales manager, with continuing responsibility for all sales activities in Ontario, Quebec and Atlantic Canada. Clifford Bassey will act as the western regional sales manager in charge of Alberta, British Columbia, Saskatchewan, Manitoba, Northwest Territories, and Yukon.

Roger Corrente has been promoted and will now act as Caleffi’s new vice president of sales. Corrente began his career with Caleffi in 2007 as a regional sales manager and most recently served as Caleffi’s national sales director.

Pat Gramsch has joined the Canadian Institute of Plumbing and Heating (CIPH) as its newly appointed trade show manager, as of January 2023. Her primary role is the planning and coordination of MCEE , CIPHEX Wes t, and liaising with show committees for CMPX and MEET . She has over 28 years of experience in the consumer and trade show industry.

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 49
Pat Gramsch Roger Corrente Clifford Bassey Eric Delarosbil Brian Cox Andrew Ross David Gray Marty Lehmann Laars celebrates its 75th anniversary in 2023.

The Master Group is accelerating its expansion into Southwestern Ontario with the acquisition of Fortress Group Inc , a Waterloo, Ont-based wholesaler of heating, ventilation, air conditioning and refrigeration products for residential and light commercial applications. In addition to its Waterloo branch, Fortress operates branches in Guelph, Hamilton, London and Cambridge.

Nibco has acquired Matco-Norca LLC , a residential, commercial, and industrial plumbing and PVF product supplier. The acquisition also includes the purchase of Matco-Norca’s sister company, SVF Flow Controls LLC.

Saniflo Canada is appointing Canma Sales Agency as its new plumbing wholesale channel representative for the greater Ottawa and Gatineau region in Ontario. Based in

Ottawa, the recently established Canma Sales Agency serves the residential, commercial, and luxury product markets.

Wolseley Canada and GE Appliances Air and Water Solutions are teaming up to offer a new line of premium heating, ventilation, and air conditioning products to the Canadian market. The new residential ducted HVAC line-up from GE Appliances Air and Water Solutions includes furnaces, air conditioners, air handlers, heat pumps, evaporator coils, and package units. The new products are now available at Wolseley stores across Canada.

Bartle & Gibson Co. Ltd. announced a new regional partnership across Western Canada with T&S Brass, a manufacturer of commercial plumbing fixure products.

Wolseley Canada will donate a portion of all sales, up to $10,000, from its Profloline to Water First , an organization dedicated to working collaboratively with Indigenous

communities in Canada to address water challenges through education and training. The donation will be made to celebrate World Plumbing Day on March 11, and World Water Day on March 22.

Franklin Electric Co., Inc. has launched the Franklin Women’s Network (FWN), a new employee resource group dedicated to providing an avenue for women to grow professionally and personally through education, networking and advocacy. The group’s kickoff event was held on Feb. 22, and more than 70 employees participated.

Daikin Applied has acquired Alliance Air Products , a San Diego-based custom air-handling equipment design and manufacturing company. The acquisition will see Alliance Air’s engineering and technology expertise add to the Daikin portfolio of high-efficiency equipment and services for data center cooling and other mission-critical and custom applications.

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www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 51
n People & Places Companies Th www.giantinc.com 1-800-363-9354

The mechanical trades are primarily an industry of owners/ managers and most of them have a trade background. Oftentimes, the focus ends up being on running the dayto-day operations of the business. Few, in my experience, have a business background. The greatest strengths of these owners/managers are their technical knowledge. Many have good management skills and, unfortunately, many don’t have good people skills.

In Canada, as of 2021, there was a total of 15,039 companies within the plumbing and HVAC/R industries, according to Statistics Canada.

Ninety-six percent of these contractors have fewer than 50 employees. Smaller businesses do make up the bulk of these companies, with 55 per cent having no more than four employees and another 22 per cent with five to nine employees. That means that 77 per cent of the industry is operated by very small companies. By my calculations, that means that with very few exceptions, all these companies are doing less than $2 million in annual sales.

From 1997 to 2019, I completed an annual

financial analysis of HVAC contractors, sponsored by the Heating, Refrigeration, and Air Conditioning Institute of Canada (HRAI). I found that 25 per cent lost money,25percentmadesomewherebetween zero and five per cent profit, 25 per cent made between five and 10 per cent, and the top 25 per cent made over 10 per cent, with several recording more than 20 per cent operating profit on a fairly regular basis.

In recent years, I have become increasingly involved in helping owners exit their businesses. Some had great success, and some really struggled to either sell their business or pass it on to employees or family members.

Uncertain times

Thereisalsoalargeriskinsellingthebusiness to employees as they tend to have little availablecashandtheownerendsupcarrying most of the selling price.

The ones that had the most success in selling are those with 10 to 19 employees. When you take the owner out of the picture with the smaller contractors, there is a major vacuum in leadership and management.

The uncertainties created by the impact of COVID-19 have made it very difficult to defi e a fair market value for businesses. If you can wait two to three years before selling your business, you will likely get better value for it. However, this means working on the business

52 Plumbing & HVAC – March/April 2023 www.plumbingandhvac.ca
n Shop Management
A business owner’s goal should be to prepare the company to sell for its highest price so they can enjoy retirement without any fiancial worries.
2021 1-45-910-1920-4950-99100-199 200-499 500+ Total Number of employees 8,306 3,239 1,870 1,089 349 143 40 3 15,039
Most contracting companies in Canada within the mechanical trades operate with less than 50 employees.

rather than spending all your time working in the business.

We will break this topic down into several parts. The first is to remember that you are in the business of making money, not in the business of plumbing or HVAC/R. The conduit is our plumbing and HVAC/R business and the expertise that comes with it. Additionally, you need to know the ideal size for your business and how to maximize the benefits of the size that works for you. Finally, there needs to be an exit plan.

Valuing your business

We will explore succession strategies and how to value your business. Fewer than 40 per cent of listed businesses sell and there needs to be a plan in place to prepare the business selling and getting the best return on it.

It is a particularly valuable trait of the owner/manager of a smaller contracting company to focus on day-to-day operations instead of focusing on the bottom line. Ths should be done for the long term and not just for the year.

Your goal should be to prepare the company so that you can sell it for the highest price and enjoy your retirement without financial worries. This means fighting your Canadian roots of being nice, and focusing on being realistic.

Most contractors could easily increase their charge-out rates by $10 per hour without losing any, or, at the very most, very few customers. Key customers will still be there. For 2023, the lifetime capital gains exemption for selling the shares of a small business is $972,190. Double that if the business is owned by you and your spouse or other partner. Would it be nice to have all that tax-free money?

When determining the ideal size of a business, ask yourself “how much more work can you do without adding overhead?” If adding one more technician.

When contractors ask me what the ideal size for their business is, I ask them how much more work could you do without adding overhead? If you could add one more technician and do

around an additional $300,000 in billings, then do it. However, if you must add another manager, don’t. If you are at capacity and can’t take on any more work, you have the option of increasing your prices. Do less for more.

It’s complicated

If sales are under $1 million annually, it is very difficult to make money. You have a job, not a business. If sales are from $1 million to $3 million, the business can run effectively with one good manager. If sales are over $3 million and you start to drop the ball and need another manager, this will likely mean that until the business earns over $4 million, there won’t be any addition profit. Likely, the profit would go down due to the additional overhead. These are broad guidelines based on experience with plumbing and HVAC/R contractors.

At the end of the day, you have three choices. Sell to a third party, sell to family or employees, or close down the business. Selling

to a third party is the best option as it carries the least risk, has the fastest payout, and is likely the better price. Your buyer is most likely someone in a complimentary trade or a competitor who would gain from the synergies of combining the two businesses. A family member or employee likely would have less capital, so you will have the risk of carrying the fiancing. Winding the business down can be expensive and it takes time to wind down, with little or no income. Ongoing overhead also eats into your retirement nest egg. It’s okay to love your business, but your business won’t love you back. Visualize your retirement and plan for it. :

www.plumbingandhvac.ca March/April 2023 – Plumbing & HVAC 53
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YEAR Operating Pro t 1997 - 2019 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0 PERCENTAGE 0.4 2.0 2.8 3.4 3.1 3.9 4.8 3.9 4.6 5.4 7.4 6.0 6.1 7.2 6.4 6.0 6.7 6.7 8.0 7.4 8.3 7.8 8.2
Graph 1: From 1997 to 2019, 25 per cent of businesses polled lost money, 25 per cent made between zero and five per cent profit, 25 per cent made between five and 10 per cent, and the top 25 per cent make over 10 per cent. Data collected via HRAI Benchmark Program Ronald Coleman is a Vancouver-based accountant, management consultant, author and educator specializing in the construction industry. He can be reached by e-mail at ronald@ronaldcoleman.ca.

MCEE returns to Montreal

Spring is upon us, which means rain and the return of the MCEE trade show. After a four-year absence, the trade show returns to Montreal from April 19 to 20 at the Montreal Convention Center. “During this major twoday event, the 6,000 expected visitors will have access to new products, nearly 400 exhibitors and 20 seminars on the latest technologies and industry issues,” said Pat Gramsch, trade show manager at the Canadian Institute of Plumbing and Heating (CIPH).

Produced by CIPH, the Corporation of Master Pipe Mechanics of Quebec (CMMTQ), the Corporation of Master Electricians of

INDEX to Advertisers

Quebec (CMEQ), and the Corporation des entreprises en traitement de l’air et du froid (CETAF), the MCEE trade show is Canada’s biggest mechanical, plumbing, HVAC/R, electrical and heating expo.

Seminars will cover various topics such as plumbing 201, calculator of an apartment building connection, the benefits of aerothermal heat pumps to reduce carbon emissions and increase building energy efficiency, what to do when responding to a power problem reported by a residential customer, and more. Offered free of charge to visitors to the MCEE Show, these conferences

can meet continuing education obligations. Unless otherwise noted, all lectures are presented in French.

While walking the show flor, guests can expect to see a full range of new products, including heating, refrigeration, air conditioning, plumbing, hydronic heating, tools, software, trucks and accessories, backflow, and electrical. Some exhibitors that can be seen on the show flor include Wolseley, Sanifl, Grundfos, Taco Comfort Solutions, Caleffi, Viessmann, and more.

Products showcased at the show by exhibitors will also participate in the “New Products Competition.” Eligible products will be placed in one of the following nine categories: forced air heating and/ or air conditioning, hydronic heating and/ or air conditioning, forced air heating and/or ventilation and/or conditioning components, water heaters, plumbing and faucets, pipes/backflw preventers/cisterns and accessories, protective tools/hardware and equipment and software, controls and related components.

The judges will also select one grand prize winner from all category winners as the most innovative new product at the 2023 MCEE Expo.

Calendar

April 19 – 20:

MCEE, Palais des congrès de Montréal, Montréal, Que. For more information, please visit www.mcee.ca.

June 18 – 20:

CIPH ABC 2023, Delta, St John’s, Newfoundland and Labrador. For more information, please visit www.ciph.com.

June 24 – 28:

ASHRAE Annual Conference, JW Marriott Tampa Water St. and the Marriott Tampa Water St, Tampa, Florida. For more information, please visit www. ashrae.org.

54 Plumbing & HVAC – March/April 2023 www.plumbingandhvac.ca American Standard 16 Bibby-Ste-Croix 30 Blade 11 Bradford White 44 Enbridge 48 Fieldpiece 8 Flocor 4 Fujitsu 14 Giant 51 Honeywell 38 IBC 2 ICP 17 Intellihot 34 Intertek 29 IPEX 26 Laars 55 Lyncar 50 Master 40 Navien 9 RLS 18 RWC 28, 29 Saniflo 45 Taco 32 Thermomegatech 10 Watts 56 Wolseley 20
n Coming
Events
This will be the return of the MCEE trade show after a four-year hiatus due to the COVID-19 pandemic.

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