Viessmann and Carrier align; Uponor rebuffs Aliaxis. Are we seeing a renewed “trend” toward consolidation in the PHVAC industy? Inflation, fuel prices, war, supply chain, electrification, and economy woes are all factors for potential wholesale changes. Over the past month, there has been heavy movement in the industry to suggest such a thing. In a Read more
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Viessmann and Carrier align; Uponor rebuffs Aliaxis.
Are we seeing a renewed “trend” toward consolidation in the PHVAC industy? Inflation, fuel prices, war, supply chain, electrification, and economy woes are all factors for potential wholesale changes. Over the past month, there has been heavy movement in the industry to suggest such a thing. In a week that saw big movement, we learned recently that two major players in the PHVAC industry have been active in talks.
The first, just officially confirmed, Carrier will acquire Viessmann Climate Solutions, the largest segment of Viessmann Group, in a cash and stock transaction valued at €12 billion, subject to working capital and other adjustments. According to the release, Viessmann Climate Solutions provides Carrier with an iconic, premium brand in the highest growth segment of the global heat pump and energy transition markets. In addition, Carrier announced plans to exit its Fire & Security and Commercial Refrigeration cabinet businesses.
“The acquisition of Viessmann Climate Solutions is a game-changing opportunity,” said Carrier Chairman & CEO David Gitlin. “Climate change, sustainability requirements and geopolitical factors are driving an unprecedented energy transition in Europe. Accelerated by government regulations and incentives, the transition creates a significant, long-term growth opportunity.
“Viessmann Climate Solutions is uniquely positioned to capitalize on this opportunity with its premier brand, highly differentiated distribution channel and innovative product offerings. With 70% of its business consisting of heat pumps and related accessories, solar PV, batteries and services, Viessmann Climate Solutions is a critical leader in Europe’s energy transition. We look forward to welcoming its 11,000 team members to the Carrier family and Max Viessmann, CEO of Viessmann to the Carrier Board of Directors at closing, which is expected around the end of 2023.
But a recent announcement from Viessmann found on LinkedIn read, “the new transatlantic partnership underlines the importance of international, cross-border collaboration in the fight against global climate change. Both companies are fully committed to take more responsibility for a sustainable energy transition in the building sector, focusing on our purposes: Viessmann Group’s purpose is to co-create living spaces for generations to come. Carrier’s vision is to create solutions that matter for people and our planet. We both regard the climate goals in North America and Europe as a once-in-a-century opportunity to make a positive impact, by actively shaping sustainable climate and energy solutions for future generations.
“The Viessmann Group will continue to remain an independent family business in full ownership of the Viessmann entrepreneurial family. Today, the Viessmann Group—excluding its Climate Solutions business area—generates a total revenue of EUR 1 billion in sales—including non-consolidated entities—with around 4,000 employees. Looking ahead, the clear goal and ambition of the Viessmann Group is to grow to a size that is larger than the Climate Solutions business area today, latest by the end of the decade.”
How does this affect contractors? The Hub’s Eric Aune, who is an ardent Viessmann installer, was sent this message: By combining Viessmann Climate Solutions and Carrier, we are co-creating one of the leading climate solutions companies in the world. Through the combination of both companies, we are forming a resilient, fast-growing innovation leader in a highly competitive market environment. All partners and customers of Viessmann Climate Solutions will significantly benefit from this new partnership:
- Viessmann Climate Solutions’ premium integrated offering will be complemented by electrified products and services from Carrier and its sub brands (heat pumps, battery storages, cooling and ventilation solutions as well as after-sales-services, digital and value-added solutions). This will lead to a wider product range for you.
- Viessmann Climate Solutions will get better access to suppliers via the global network of Carrier, especially its subsidiary Toshiba Carrier Corporation in Asia. This will lead to a faster delivery for you, in the long run. Thereby, you can significantly shorten your time to installation completion—a decisive component for the decarbonization of the building stock both in Europe and beyond.
- The iconic brand of Viessmann will be continued. All your respective contact persons at Viessmann will remain in charge. The Climate Solutions Executive Board and leadership team of Viessmann Climate Solutions, led by CEO Thomas Heim will continue to run the business. Viessmann Climate Solutions will become a major driver of Carrier’s growth strategy in Europe. Its headquarters will remain in Allendorf, Germany. The Viessmann Group will become one of the largest shareholders in Carrier. Consequently, Viessmann Group CEO Max Viessmann will become a new member of the Board of Directors of Carrier.
Meanwhile, according to an industry insider close to Mechanical Hub, Putin’s iron grip on the fuel supply in Europe could be a contributing factor to sell now. And, will Viessmann alter its path to market? One observer asked, “Will it be through the DCNE wholesale network?” We will see how things shake out in the next few weeks to months.
PEX Power
On the piping side, there have been tremors of a major shake-up in the PEX world. But all for naught, it turns out. Mechanical Hub has learned that Belgian company Aliaxis, a manufacturer of advanced fluid management solutions—with IPEX already a part of the company—had approached Uponor in its interest to sell. According to information acquired by Mechanical Hub, Aliaxis had announced a non-binding intention to make a tender offer to acquire all shares in Uponor.
Finland’s Uponor said on Wednesday (4/26/23), it rejected an unsolicited offer from Belgian rival Aliaxis, adding that the suggested price of 25 euros per share did not reflect the company’s value and long-term prospects.
According to Reuters and from sources within Uponor, the company’s board unanimously rejected the offer, but said it would consider any further proposals made by Aliaxis or any other party, if it was in the best interest of its shareholders.
Aliaxis last Monday made a $2 billion unsolicited offer to buy Uponor, seeking to form a global water management group, and the following Monday raised its stake in the Finnish company to 10.6%.
Oras Invest, Uponor’s largest shareholder with about 25.7% of the company’s shares, said on the day Aliaxis made its unsolicited offer that it had no intention of accepting it.
Last week, the Mechanical Hub Team was onsite to visit the Iowa Build My Future event, where 5,500 kids from across the state were bussed to experience the hands-on trade job fair. Here is a video that accurately describes the event. https://youtu.be/rWG8JLM07k4 Read more
Last week, the Mechanical Hub Team was onsite to visit the Iowa Build My Future event, where 5,500 kids from across the state were bussed to experience the hands-on trade job fair. Here is a video that accurately describes the event.
Way back in 1987, ASHRAE experts developed the BACnet protocol as a communications standard for Building Automation Systems (BAS). BACnet has since earned the respect of specifying engineers, facility managers, controls experts and service technicians worldwide as it’s now the leading technology in building automation. BACnet offers an open architecture and the ability to control Read more
Way back in 1987, ASHRAE experts developed the BACnet protocol as a communications standard for Building Automation Systems (BAS). BACnet has since earned the respect of specifying engineers, facility managers, controls experts and service technicians worldwide as it’s now the leading technology in building automation.
BACnet offers an open architecture and the ability to control and monitor any building automation process—from water sourced heat pumps and chillers to boilers and volume water heaters.
At North Andover, Mass.-based Watts, one of the largest and most diverse manufacturers in the plumbing and mechanical and HVAC market, BACnet has been incorporated into several of its brands’ technologies, most notably through its HVAC and snow-melting controls brand, tekmar; “IntelliStation” digital mixing stations for commercial domestic water control and tempering by their brand, Powers; and for Benchmark boilers and Innovation water heaters (via their “EDGE” controller), offered by the company’s brand, AERCO.
“For us, BACnet is so useful because it’s a standardized communication protocol that interconnects and ‘talks to’ all other BAS-connected technologies throughout an entire facility, and also facilitates remote monitoring and control,” said Amar Dhore, AERCO Software Engineering Supervisor. “When fully integrated, all communications can work through one BACnet device. That’s the advantage of standardization, and what it enables.”
New York-based AERCO is one of the nation’s leading suppliers of commercial condensing boilers and water heaters for a variety of industries. Several years ago two of AERCO’s brands—Benchmark boilers, andInnovation water heaters—adopted the use of BACnet to offer sophisticated communications through their EDGE controller and ProtoNode gateway, the key interfaces to BAS for legacy system communications.
AERCO offers a multi-protocol, communications gateway to support integration with customers’ building automation (BAS) and energy management systems (EMS). The plug-n-play package supports build in integration with BACnet/IP, BACnet MS/TP, Modbus RTU, Modbus MSTP. AERCO also has a ProtoNode Gateway to support legacy products like Benchmark standard, Modulex EXT boilers; Innovation and SmartPlate water heaters.
AERCO’s EDGE features built-in translation for BACnet/IP, BACnet MS/ TP, Modbus RTU and Modbus TCP protocols; these communications are selectable and configurable via touch screen (No DIP switch needed). With this easy access to data, customers have ready access to more data. They can also choose and map BAS points of his interest to access, control and monitor devices.
In fact, the company’s Benchmark Platinum boilers can be managed effectively with an app that connects with the EDGE controller. With the app, a service technician or facility manager can monitor or balance hydronic system flow, perform a wide variety of system diagnostics, or combustion analysis and calibration.
For building owners, the EDGE permits trouble-free management of all boiler/water heaters functions—whether one unit or up to 16 units, connected in a cascade.
The EDGE controller also permits flow balancing—a function that allows elimination of balancing valves and also reduces commissioning costs, one of many operations enabled through the built-in communications via BACnet IP, BACnet MS/TP, Modbus IP or Modbus RTU.
Start-up and maintenance functions are also simplified. Boilers +/or water heaters can be calibrated through assisted or manual operations, a big time-savings advantage. The assisted options offers guided steps that automatically adjust precise air/fuel ratios for optimal performance.
AERCO access and control security:
AERCO managers understand the importance of security and have taken steps to make BAS communication secure. EDGE offers built in security using IP and MAC address. Once the security is enabled, user needs to enter front end BAS MAC and IP address. Once done, Edge will only accept the communication from the BAS with specified MAC and IP address.
tekmar’s 680, 681 + 284
Vernon, BC-based tekmar Control Systems, a Watts brand, is a world class integrated engineering and manufacturing company that provides solutions for the HVAC industry. For the past 38 years, tekmar has earned a reputation as the leader in complete control solutions for hydronic radiant floor and baseboard heating systems, multi-stage boilers plants, and automatic snow melting controls.
tekmar provides energy-saving control solutions for a broad range of hydronic systems—whether within a building, or outside (for snowmelt or turf-warming)—while assuring no-compromise comfort control, system efficiency and durability.
The company’s technologies provide:
- Setpoint controls—offering precise temperature control for domestic water storage tanks, pools and hot tubs.
- Boiler + domestic water controls—These technologies are designed to control temperature and operation of multiple boilers or volume water heaters. Multi-staging controls provide significant energy savings while also enhancing system reliability.
- Heating controls—Here, tekmar offers controls to provide zoning solutions for heating systems; specific models are designed for use in hydronic heating, radiant heating, HVAC systems, and baseboard or “hydro-air” applications.
- tekmarNet 4 zoning controls—These technologies connect to thermostats to control operation of heating system zone valves or heat pumps for precise delivery of heat.
- Snowmelt control and sensors—Snowmelt control systems measure and control road, driveway or walkway surface temperatures to provide safe, snow- and ice-free surfaces, and at the lowest operating cost. Controls may connect to electric or hydronic systems as the source of warmth. Fully automatic controls, or manual controls can be chosen.
“Our specialties are boiler and snowmelt system controls,” explained tekmar’s Cleber Alves. “One of our unique products is the new BACnet snow/ice sensor interface 681—designed to measure the presence of snow or ice and interfaces with the BAS to activate or deactivate electric or hydronic snow melting systems.”
According to Alves, the 681 uses tekmar sensor technology to automatically detect precipitation, then communicates with the BAS through BACnet MS/TP. This operation allows the BAS to automatically turn the heat source and distribution system on, or off, and provide operational status for all snow-melt functions. The 681 is ideally suited for commercial applications such as hospitals, schools, airports, ski resorts, business entrances, driveways, loading docks, and shopping malls.
The 681’s features include slab target temperature, automatic snow and ice detection, error codes, warm weather shut-down, melt pending function, cold weather shutdown, and supports both in-slab and retrofit aerial sensors—all with BACnet MS/TP communication.
IntelliStation digital water control
Public safety relies chiefly on the availability of clean water. As it can affect water quality, the condition of premise (building-specific) plumbing systems have a direct impact on the safety of those within the facility. The ability to remotely monitor and control water temperature, flow, and other parameters in a quick and precise way is vital to delivering healthy, safe water in an efficient manner.
Patents held by Powers, a Watts brand, function as the backbone for many products in commercial and industrial water temperature control markets. The company develops and manufactures thermostatic and digital mixing solutions to bring safety and comfort to modern plumbing systems.
“IntelliStation and IntelliStation Jr. [a smaller version] digital water mixing systems are designed to deliver tempered hot water throughout a recirculation loop in commercial and institutional facilities,” explains Sr. Product Manager Bruce Fathers. “Our digital solutions can be integrated into a BAS to allow facilities managers to remotely monitor and control water temperatures.
“We offer most of the common protocols, with gateways to others if need be,” added Fathers. “Modbus and BACnet are native to our controller, so it’s integrated into our IntelliStation products with no additional cost. Most of our competitors do require an additional module at an added cost to facilitate BACnet. So, it’s become a competitive edge for us, one our customers have come to appreciate.”
According to Fathers, BAS is used to seamlessly monitor and control important facets of system operation—such as mixed outlet temperature, pressure, flow, and inlet temperature. The sensors all require connection/input points.
“For commercial domestic water systems, mixed outlet temperature is most important,” explained Fathers. “It’s typically set at 120°F, or 140°F—to either render [biogens/pathogens] unable to reproduce, or to outright kill them [point-of-use mixing valves are then used at showers and faucets to protect users. Facility managers have remote visibility to all critical datapoints.
Fast, responsive digital technology enables the collection of a large amount of data which can be stored and communicated through a building automation system (BAS) or locally at the controller, providing intelligence at the foundation of the entire plumbing system.
Internet of Water
Control of the water recirculation loop ensures safe, precise, and consistent water temperatures (+/- 2oF), supports energy conservation, and reduces energy costs. BACnet IP, BACnet MSTP, and Modbus protocols are supported.
Technology helps to fulfill these needs with digital mixing and connected components like sensors and cloud-based monitoring.
The extent to which COVID-19 has impacted public health and the increased prevalence of Legionella bacteria have highlighted the need for:
- Visibility of water temperature, flow, and quality even when off-site
- A way to remotely control water temperatures
- Automated monitoring and reporting of premise plumbing water parameters and facility management activity
- Connected products that help increase safety and efficiency
- Reliable ways to reduce the risk of Legionella and other harmful bacteria
BAS empowers facility managers and engineers to proactively prevent issues before they arise, rather than having to react to or attempt to mitigate issues once they’ve occurred,” added Fathers.
There are three main technology-driven components in a digital mixing solution:
- Sensors, serving as eyes and ears
- The controller’s algorithm (the “mind”)
- Electronic, high-speed actuated valve, continually responds to sensor inputs, to maintain set point
“Our digital mixing controller algorithm processes data from the mixed temperature outlet sensor and signals the actuator to make adjustments to maintain set-points in real time,” continued Fathers. “Sensors relay key system data for pressure, temperature and flow for troubleshooting and optimization.”
Building automation systems give facility managers the ability to see vital data, quickly make informed decisions, and act, even remotely. Digital water mixing controls hot water delivery through a programmable valve or system that processes temperature, flow, and pressure data.
Serious risks, such as Legionella growth, scalding, and thermal shock are associated with mismanaged water temperature. Legionella bacteria are destroyed almost instantly at water temperatures above 160°F, but at temperatures between 70°F and 115°F, their growth is abundant. The Catch 22 is that uncontrolled and unmonitored water distribution systems can create high-temperature scalding hazards in bathtubs, sinks, and showers.
A proactive monitoring program can help reduce risks, predict trends, and improve operational efficiency. Proactive monitoring enables three key control measures that help address modern-day public safety risks:
- Allows for quick decisions based on real data
- Allows facility managers to more easily manager their systems
- Generates automatic reports showing trends and performance
Fortunately, there’s no Catch 22 to the use of BACnet technology. It facilitates fast, reliable communications between all facets of the network it operates in. Watts and its brands rely on BACnet for many operational uses, successfully, and with no compromise.
As far back as he can remember, Derek Zeolla, general manager and licensed plumber at Zeolla Plumbing & Heating Corp., was running plumbing jobs with his father in downtown Boston as early as seven years old. Derek’s dad was a Boston service plumber that ran a 1- to 2-man shop. “It’s not like this was Read more
As far back as he can remember, Derek Zeolla, general manager and licensed plumber at Zeolla Plumbing & Heating Corp., was running plumbing jobs with his father in downtown Boston as early as seven years old. Derek’s dad was a Boston service plumber that ran a 1- to 2-man shop. “It’s not like this was common, I was just growing up around it,” says Zeolla (@zeollaplumbing).
Derek’s father eventually stopped working as a plumber in the late ’90s. Around this time, while still a teenager, Derek dropped out of school had a baby at the age of 18. Moving forward, “My brother, Doug, and I convinced our dad—also named Doug—to get back into the trade, but before we worked as a family, he sent us off to get experience elsewhere,” recalls Zeolla.
According to Zeolla, they worked all over the city and jumped around recklessly from company to company, some jobs together, some not. “We always found a way of getting together with a new employer, one of us would talk up the other,” says Zeolla. “It’s funny looking back on that thinking how little we knew back then. My parents were coming off of a divorce and my father was starting to take on some service stuff in our new town Stoughton, Mass. where we grew up and went to high school. Eventually, he had enough work for both of us and we stayed pretty busy,” says Zeolla.
And that’s how Zeolla Plumbing & Heating Corp.—residential service plumbing, drain cleaning, heating, and boiler installation—came to be. “We have built a solid reputation in our area through more than a decade of answering the phone and showing up. Man, we have come a long way since then,” says Zeolla.
The Family Dynamic
Working with his father, brother and one of his cousins most of the time were the best memories in the field for Zeolla. “I can’t explain it, but something about sharing the bond of working together, figuring out problems together, feeling the pride was the best, and I hope to share that with my two boys one day,” says Zeolla.
But with life, things change. “As many know, my brother passed away. This was tough, and even before that, my father took a step back from the business and went to Florida (but still flies back to Boston from time to time to help out). Add to that, my cousin and I haven’t talked in years so it’s not the same out here anymore,” says Zeolla.
Zeolla says he is blessed that his wife Arlene has filled a void. “She is the savior in the office, and I have a great team.”
Derek also hired his younger cousin Justin last year and he has been phenomenal. “I was out with him today clearing drains on a Sunday and it brought back that feeling again of working with family. Working with a Zeolla,” says Derek nostalgically.
And while Derek puts his father center on the Mount Rushmore of mentors, there were some other people outside the family that were strong influences on Derek. For Zeolla, one of the best was a Greek guy named Alex, who, when Derek was looking for work, took him on for a couple of years. “He taught me how to get shit done; he taught me how to move.”
Alex was a great mentor yet has since passed away. “Which brings me to, am I a role model? I don’t know, but Alex has two sons. One has come to me looking for mentorship, and it’s just so crazy how things come full circle because now he works with me and he is already just like his father when it comes to plumbing skill.”
Zeolla hopes to be a good role model for him, including and all his younger guys he works with. “I will never steer them in the wrong direction, that’s for sure. This is too important to me,” says Zeolla.
Challenges/Rewards
One of my biggest challenges isn’t the pipes, says Zeolla, it’s the people. “I say this phrase a lot, and I love people in general, and I love my customers, but sometimes when it comes to understanding what we are doing in their homes, it can be challenging. It’s very important to explain things and make sure they feel comfortable. It’s a delicate balance between taking control of a situation and saying, ‘hey, look, I’m the professional here I need you to trust me,’” says Zeolla.
Again, the pipes are the easy part! “I’m lucky that I have great customers. The rewarding part is helping people out, getting someone’s heat back on, clearing a main drain, getting the hot water back, or being told that you are appreciated is probably the best. That ride home to then seeing your family after you helped another family, that’s the reward.”
Leisure Time
Derek and his wife love to travel, and they take their kids literally everywhere they go. AHR Atlanta was their second time leaving them overnight in five years. But basically, there is no leisure time without the phone ringing and Derek coordinating with his six guys, and customers. “My wife and I are like running a telethon while ‘trying’ to be on a vacation. We love it and we are good at it, but she knows I can’t be away from the field long. It’s my therapy and I get depressed if I’m not turning wrenches,” says Zeolla, a self-described workaholic.
As far as spare time close to home, Zeolla enjoys fishing, hiking and hanging out at his cabin nestled in the White Mountains of New Hampshire. “Summer weekends there with my boys are what I work toward every week. When my brother passed, I wanted to find a place to escape, and I found something special,” says Zeolla.
The Skilled Trades
According to Zeolla, “We” need to push our way into middle schools and high schools to get “our” message heard. Kids need to know that they have options at a younger age, says Zeolla.
“Listen, school isn’t for everyone. You might be told you aren’t good enough, or your attention span is too short, or you can’t listen to lectures all day, but put that kid in front of something hands-on, something he or she can feel—and feel the pride of building something—the sky is the limit. Once you get that feeling of being productive and important, you will open doors you didn’t even know were there,” says Zeolla.
The past few years have been good for contracting businesses, barring component availability and skilled labor woes. For anyone in the trades, operating a plumbing and mechanical company profitably looks different today than it did 20 years ago, but there are still plenty of similarities. Joe Tull, 36, founded Straight Plumbing, LLC seven years ago Read more
The past few years have been good for contracting businesses, barring component availability and skilled labor woes. For anyone in the trades, operating a plumbing and mechanical company profitably looks different today than it did 20 years ago, but there are still plenty of similarities.
Joe Tull, 36, founded Straight Plumbing, LLC seven years ago, and feels as though he’s settled into a sweet spot. Right now, that includes running two trucks and focusing on Maryland’s Hartford County and northern Baltimore County. The company used to be bigger, but not necessarily better, according to Tull.
“I’ve always preferred quality over quantity,” he explained. “When I had more employees, I spent a lot of time going behind them and fixing their mistakes or shortcuts. Right now I have a fantastic apprentice, Robert Howard, who’s been with me four years. He’s always respected me and done things my way, which simply means not cutting corners. I’d hire 20 like him, if I could find them.”
Joe grew up working for his father’s plumbing company, but after a while, the two Tulls couldn’t see eye to eye. So Joe left and spent several years on the plumbing service crew for a large company before hanging out his own shingle in Jarrettsville, Md.
Specialization
“Specialization gives the people . . . the opportunity to go further in any direction of study than any other human has gone before.” – Ryan North
“Service is what I knew best, and what I could build a reputation on most rapidly,” said Tull. “Service work also provides the greatest opportunity to solve people’s problems. The new construction side of the business is more volatile. So I specialized in plumbing service, and as soon as I was up and running, I dug into hydronics to expand our offering.”
Today, 30 percent of Straight P&H’s work is hydronic heat. The rest is plumbing service, both residential and commercial. Due to the rural nature of his territory and the presence of hard and harsh water, many of their service calls involve well pumps and water conditioning. A deep understanding of water quality has infinity improved Tull’s hydronic and plumbing work.
Forging relationships
“Technology does not run an enterprise, relationships do.” – Patricia Fripp
Tull learned early in his career that relationships are critical to the success of a business. In addition to learning from his father, he had mentors at supply houses, rep firms and within his social circle.
“I had a lot to learn when I first started installing boilers” said Tull. “Jim Bull, at Thomas Somerville became a mentor. He has a wide range of heating knowledge and was always generous with that information. He’d even stop at my jobs in the evening and set me straight if I was in a bind.”
Relationships are as important to Tull today as they were then, when he was still building his portfolio of experience.
“I try to be an information sponge and do my best to become an asset to the people who add value to my life,” said Tull. “Over the past three years, I’ve worked closely with the reps at ROI Marketing, specifically Dan Byrne, district manager, and Dave Raabe, sales manager. Those guys are never more than a phone call away.”
Byrne has known Tull for more than 20 years, but has only been his hydronic rep for about three years, after helping Straight P&H sort out some technical issues on a particularly challenging project. Tull installs their line of U.S. Boiler Company condensing and cast iron boilers, ComfortPro PEX, State water heaters and Webstone valves. Some of that equipment comes through Jordan Mitchell, at Northeastern Supply, while some is sourced at other supply houses throughout the area.
“Dave and Dan rock,” said Tull. “Their support, and the help I’ve received from the factory tech support at U.S. Boiler has been outstanding. I’ve used other boiler brands with less success and non-existent customer service.”
Byrne and Raabe visit Tull’s jobsites a dozen times or so each year, often on the front end, to provide sizing assistance, system concepts, etc.
“What I observed when I first met Joe was a young guy that wanted to install stuff properly,” said Raabe. “He’s very talented and his work is extremely professional, yet he’s humble and not afraid to ask for help.”
“I wish all our customers were like Joe,” added Byrne. “He takes real pride in his work.”
Referral marketing
“Courteous treatment will make a customer a walking advertisement.”
– James Cash Penney
“I left my previous job because I saw customers being taken advantage of,” Tull said. “I don’t hard-sell anyone. I present their options along with fair pricing and let them decide what they prefer. I want customers for life. If I’m fair and I do the job to the best of my ability, my customers become my salesforce.”
Tull doesn’t just talk the talk. His 38 five-star reviews on Facebook are proof enough. One review states, “Joe came to my house and fixed me up. After I got estimates from other plumbers that were way too expensive, Joe fixed my old water treatment system without pushing me to buy a new one. He simply stated ‘Please think of me when you decide to upgrade.’ And you bet your butt I will.”
Create value
“You don’t get paid for the hour. You get paid for the value you bring to the hour.” – Jim Rohn
Straight Plumbing and Heating creates value as well as anyone in the business. Homeowner Steve Shelley learned this when he first hired Tull to solve some minor plumbing issues. Years later, when it came time to replace the home’s oil-fired boiler, Joe was his first and only call.
“Joe is very responsive, knowledgeable and thorough,” said Shelley. “He doesn’t try to oversell, he’s happy to answer questions, and he’s never in a rush to get things done. I didn’t have to think twice about hiring him to convert our home from oil to propane, which we did mainly for the energy savings.”
The home is heated by hot water fan coils, and the existing boiler used to provide DHW through a 40-gallon indirect tank. Shelley estimates that the unit burned 800 gallons of oil each year, or roughly $3,200.
Tull buried a large propane tank in the yard, replaced the existing unit with a 200 MBH Alta Combi boiler, and sidewall vented the new unit.
The retrofit took place in June last year, giving Shelley nearly a year to calculate the energy savings that Straight Plumbing and Heating had provided.
“We used 400 gallons of propane over the winter, and I’m sure we’ve consumed a little more through the fall and spring for hot water,” he Shelley. “With LP at $2.00 per gallon, we’re saving somewhere around $2,000 per year.”
Shelley also noted that the family used to run out of DHW quickly. Now they can shower as long as they want and run multiple taps.
“We have all the hot water we need,” Shelley explained. “We can’t smell oil in the basement anymore, and we don’t hear the boiler start up like we used to.”
“We have about a dozen Alta boilers in the field,” said Tull. “They work very well on LP. Most of the installations in Hartford County are on propane. The Alta is also easy to clean, and access is fantastic because the side panels are removable.”
There’s another reason that Tull installs the Alta. Much like other models in the U.S. Boiler Company lineup, the Alta is available at a variety of local supply houses, including Northeastern Supply, Thomas Somerville and R.E. Michel.
“When it’s cold and a customer needs heat, I can’t come up empty-handed on parts and product,” said Tull. “Having equipment that’s readily available is extremely important.”
Overcoming challenges
“A challenge only becomes an obstacle when you bow to it.” – Ray Davis.
Last heating season, Straight Plumbing and Heating installed 35 boilers. This year, only 20. He suspects the economy has something to do with that, but he’s certain there’s another reason.
According to Tull, many big HVAC companies are pushing homeowners toward inexpensive heat pumps. There are lots of “house flippers” in his territory, as well. Typically, flippers install the cheapest heat pump on the market.
“I’m not talking about high-efficiency, low-ambient temperature systems,” he said. “I mean the cheap, undersized unitary systems. I’ve had homeowners call me after buying a house with a new heat pump, asking if I can install ‘a real heating system.’ Once winter hits, they’re uncomfortable and their electric bill spikes because the units constantly run on emergency heat.”
It’s hard to sell a premium system against a budget option when the customer doesn’t know the difference before signing the contract.
“I know it will all come full circle,” said Tull. “You only make that mistake once. If I was trying to grow rapidly, I’d be concerned about it, but I’m happy with where the company is. It’ll grow gradually. We’ll continue solving harsh water problems and creating extremely comfortable heating systems. If we do that and remain transparent with our customers, the company will continue to do well.”