Industry News

Navien kicked off its USA and Canada Roadshow on March 27, 2025 at Brewery X in Anaheim, California. The event showcased a suite of groundbreaking HVAC products, including the NAZ Air-to-air Heat Pump, NPF Hydro-Furnace, NAS Air Handlers, NAM Cased Coils, NAE Hydro-AC, and NWP500 Heat Pump Water Heaters.

The roadshow will visit multiple locations across the United States and Canada over the next three months, providing HVAC professionals and industry leaders with an exclusive opportunity to experience Navien’s latest innovations in person. Attendees will get detailed product insights and expert guidance on integrating these cutting-edge solutions into their business offerings.

“We’re thrilled to bring our new HVAC products directly to professionals across North America,” said Jacob Ford, Vice President of Sales at Navien. “This roadshow is a unique opportunity for our customers to interact with our latest innovations and learn how they can elevate their service offerings with the extremely energy-efficient and reliable HVAC systems from Navien.”

The Anaheim event at Brewery X marks the first stop in this extensive roadshow, with several other stops in Southern California already planned and others across the US and Canada coming soon. For up-to-date information on upcoming stops, visit Navien’s official roadshow page at navieninc.com/hvac-roadshows.

New facility promotes collaboration, sustainability and innovation

A. O. Smith Corporation (NYSE: AOS), a leader in water heating and water treatment, announces the grand opening of its new Product Development Center (PDC) in Lebanon, Tennessee, a 60,000-square-foot state-of-the-art research and development facility on the Lochinvar campus. The new center brings together the company’s North America Water Heating commercial engineering and platform electronics functions with Lochinvar engineering to support commercial product development, including heat pump water heaters. The estimated $33-million-project, which kicked off in 2023, combines a mix of new construction and existing facility renovation to create an environment of innovation and collaboration.

A grand opening celebration will be held for employees and key partners Tuesday, April 15 at the new facility, located at 300 Maddox Simpson Parkway in Lebanon. The morning event will kick off with a ribbon-cutting, followed by executive speeches and self-guided tours. Attendees will see the facility’s environmental chambers, product engineering development lab, electronics lab and other new spaces that will house more than 120 new and existing employees with room for future growth.

“This new facility enables us to advance one of our top strategic priorities – investing in innovation and expanding our product portfolio to ensure the company’s continued growth and success,” said Kevin Wheeler, chairman and CEO. “A. O. Smith remains committed to driving meaningful progress, and the work conducted at this facility will play a pivotal role in future product requirements and sustainability efforts.”

The program will feature President and Chief Operating Officer Steve Shafer, Chief Technology Officer Bob Heideman, North America Water Heating President and General Manager Steve O’Brien and Lochinvar President Darrell Schuh.

The demand for sustainable, energy-efficient products, including heat pump water heaters, will continue to increase, and at A. O. Smith, we want to ensure we have the tools, talent and capabilities to provide customers with the solutions they need when they need them.

“The PDC is a future-focused innovation hub that enables us to design heat pump water heaters and other sustainable products that are not only in demand now but will continue to be a major emphasis for us in the coming years,” said Heideman. “We’re excited about the possibilities that lie ahead, and we know from experience that a facility like this gives innovation a space to thrive.”

Media is encouraged to join the in-person event on April 15 from 10:30 a.m. to 12 p.m. CDT. To confirm your attendance or schedule an executive interview, please contact Sara Bojar, external communications manager, scbojar@aosmith.com.

Top Business Risks to Meeting Goals Include Rising Labor and Overhead Costs (63%), Increasing Material Prices (51%), and the Shortage of Skilled Labor or Workforce Availability (40%)

ServiceTitan (Nasdaq: TTAN), a software platform built to power the trades, today released its Commercial Specialty Contractor Industry Report, a study of over 1,000 specialty contractors primarily in plumbing, HVAC, and electrical, that focus a significant part of their business on construction. The report reveals that amid significant hurdles, contractors are pushing for growth, with 93% focused on winning new projects. Of the factors threatening growth, nearly two-thirds (64%) anticipate material prices to increase, making it harder to forecast job costs and protect margins. The report also found that to stay agile, contractors are focused on diversifying service offerings (43%), improving project execution (59%), and internal processes (51%), which is spurring software adoption.

“The commercial sector is in the midst of a perfect storm with a fluctuating economy, regulatory changes, and rising costs,” said Alex Kablanian, Vice President and General Manager, Commercial & Construction Markets. “In this challenging landscape, adopting innovative technology, including artificial intelligence, is essential for streamlining operations and driving profitable growth even in uncertain times. Historically, we’ve seen the best operators use periods like this as a catalyst to harden their business and build long-term durability and it’s our job to help our customers make that happen.”

Increasing profitability with better cash flow management 

Specialty contractors are optimizing operations to grow revenue, but in parallel with rising material prices, rising labor, and overhead costs are top challenges that could impact revenue growth this year. Only 50% of contractors factor volatile material costs into their planning, and as a result, 36% are regularly adjusting budgets mid-project to deal with unexpected material costs. Approximately 83% of contractors cite budget overruns as a top issue, as well as unplanned risks not covered by contingency funds or change orders (70%). To keep projects on track and financially stable, 57% of contractors are prioritizing cash flow management. In addition, to stay profitable contractors are aiming to secure better material pricing, including using general contractors’ preferred suppliers for discounts (65%) and building stronger supplier relationships for better pricing (40%). To drive profits, contractors must be strategic about the projects they take on with the report revealing a strong focus on optimizing bidding strategy (51%) and three-quarters (75%) of contractors are increasing their client base. A majority of respondents (70%) are converting less than 20% of their bids, with the average bid conversion rate at 17.9%. Bid conversion rates have remained the same year-over-year for 79% of respondents.

Impacts of the labor shortage on business volume and retention strategies

The ongoing labor shortage continues to impact the commercial construction sector, forcing specialty contractors to re-strategize areas for business growth. Forty percent of respondents indicate labor shortages as a primary risk to meeting goals and over three-quarters (76%) report they are actively hiring. Among the contractors who are decreasing bid volume, 46% say it’s because of workforce and capacity limitations.

While 63% of contractors cite labor costs as a top risk to meeting goals, as businesses are met with slim talent pools, over half (55%) still plan to raise wages. To recruit and retain top talent, contractors must offer competitive pay and factor employee wage increases into their budget.

Optimizing workflows to drive larger profits

Amidst a competitive talent war and heightened cost pressures, contractors must readily adopt technology to remain agile to alleviate cash flow. Approximately 63% of respondents indicate enhancing budget forecasting and accuracy as a top priority for improving cost management, followed by managing change orders and variances (62%) and streamlining cost tracking and reporting (54%). Only 46% of contractors think they have the necessary tools to effectively manage costs. Timely payments are also critical to driving revenue growth. Nearly 80% of respondents indicated timely billing as a top strategy for being profitable, with the majority of contractors noting 38 days as the average length of time for payment.

Technology investments for more efficient operations 

To optimize workflows and drive efficiency, 80% of contractors use communication tools, 51% use project management software, and 40% use specialized workforce management software. Almost half (49%) continue to use spreadsheets, highlighting the potential for wider technology adoption. Thirty percent of contractors are looking to invest in technology to achieve their goals, with 59% hoping to improve project execution and 51% their internal procedures. AI adoption is growing with 17% already seeing it impact their business. Contractors believe document management (57%), reporting (41%), project planning and scheduling (20%), bid management (19%), and equipment and fleet management (17%) will be the most significant way AI transforms their businesses.

“ServiceTitan’s end-to-end platform fuels the growth of billion-dollar businesses, empowering commercial construction companies with enterprise-level capabilities to scale to their full potential,” said Kris Blankenship, Industry Advisor at ServiceTitan for Commercial and Construction. “AI adoption will be critical as these businesses look to increase efficiency and raise their bottom line.”

To review the full findings and key takeaways, download the Commercial Specialty Contractor Industry Report here.

Malco one of just 1,500 U.S.-based Top Workplaces determined solely by employee feedback  

Malco Tools, one of the nation’s leading solution developers and manufacturers of high-quality tools for the HVAC and building construction trades, announces it has earned the 2025 Top Workplaces USA award, making it just one of 1,500 companies across the country to earn this top recognition.  

Top Workplaces USA celebrates organizations with 150 or more employees that have built great cultures. Results are calculated by comparing the survey’s research-based statements, including 15 Culture Drivers that predict high performance against industry benchmarks.  

“At Malco, we believe that a strong workplace culture is the foundation of our success. This recognition is especially meaningful because it reflects the voices of our employees—the people who make Malco a great place to work every day. We are proud to foster an environment where our team feels valued, supported, and empowered to do their best work,” said Kirk Langbehn, vice president of people operations at The Malco Group.

Malco’s culture is focused on the company’s core values, which are at the center of every decision. This people- and values-centric approach has created a high level of trust, transparency, accountability and engagement among the team. Through programs like the company’s “Look Good, Feel Good, Do Good” campaign, Malco has made significant investments in workspaces, safety and training, internal awards and recognitions, and the implementation of several company-wide events and activities focused on strengthening the team and celebrating successes. Additionally, Malco places a high value on doing good in their local communities and has given back thousands of dollars and countless hours of volunteer time to organizations that are meaningful to the team.  

“Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That’s something to be proud of. In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. Top Workplaces do this, and it pays dividends.”

The Top Workplaces program has a 15-year history of surveying more than 20 million employees and recognizing the top organizations across 60 markets for regional Top Workplaces awards.