air conditioning

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:

1. 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.
2. 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.
3. 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.

Nashville field tech enablement software provider equips HVAC leader’s nationwide dealer network with comprehensive technical services solution

XOi, a leading provider of technician-focused technology solutions, announces an enhanced collaboration with Carrier, an industry leader in heating, air conditioning and refrigeration solutions.

Dealers will benefit from a more streamlined experience between Carrier technical support services and distributor and dealer networks by utilizing XOi’s advanced technology for improving real-time installation or maintenance troubleshooting.

The Carrier Digital Advantage is a fully connected, incentivized ecosystem of digital tools and technologies provided to Carrier dealers and technicians. This program empowers dealers to provide best-in-class customer service by being more productive and efficient.

“The collaboration with XOi supports the Carrier Digital Advantage by empowering service teams with data insights and virtual support tools for each step in resolving service requests,” said Bob Lang, Director of Quality Assurance, Carrier. “Field technicians can quickly access resources from the Carrier support team to provide exemplary HVAC service.”

With XOi, Carrier technicians can access educational resources and equipment information to enhance efficiency and accuracy and provide exceptional customer service.

“We’re enhancing how information is shared among Carrier distributors and our dealers,” said David Kesterton, President of Mingledorff’s, a large HVAC distributor in the Southeast. “The collaboration between XOi, Carrier and our distribution team drives an even more efficient process for reporting and resolving issues in the field and keeping projects on track. Technicians have immediate access to the information they need with a tablet or smartphone. That kind of accessible, easy to navigate knowledge base helps deliver a premium customer experience.”

“Having both the distributor and Carrier technical support teams utilizing XOi brings closer alignment on field needs in real-time,” said John Holloman, Distributor Service Manager for Robert Madden Industries of Lubbock, Texas. “This enhancement to the partnership helps provide superior customer service to our dealers and each customer.”

Equipped with the data and analytics capabilities of XOi’s curb-to-curb solutions, Carrier service technicians can collect, index and analyze jobsite information and build an accessible institutional knowledge base that supports real-time decision-making.

“Expanding this collaboration to all service technicians helps Carrier contractors meet and exceed the demands of their customers,” said Aaron Salow, CEO and Founder of XOi. “The unique functionality and comprehensive communication and support XOi delivers supports Carrier’s commitment to providing an extraordinary service experience.”

XOi helps field service contractors and their teams drive productivity, elevate customer experience and help identify skilled technicians. For more information about XOi, visit https://xoi.io.

AHR 2023 is a wrap, and the biggest U.S. HVAC show marks the 20^th time—minus the COVID year—that I have attended this great event. A huge shoutout to the Stevens family for organizing such a great experience. Also, huge props to Nicole Bush and her press team for helping the trade press throughout the event, and keeping them fed and hydrated.

Now that we’re all back home safely—I hope—we can digest the event and gain a better perspective of what transpired over these past three days. The numbers haven’t been shared yet attendance-wise, but it was a hugely successful event, especially coming through what some call the “COVID years,” where traveling came to a stop—with more people now connecting again.

The MH team, and some old guy.

I would be remiss if I didn’t mention some of the manufacturers’ investment in after parties that are always a hit! For the Mechanical Hub crew, for example, it was Taco, Burnham/U.S. Boilers, Rheem, RLS, Franklin Electric, RIDGID and Viega.

From what I heard, over and over again, is that Atlanta just isn’t the most optimum place for a trade show, if I can be perfectly honest. Listen, Atlanta is a wonderful city with plenty to do and many fine places to eat and drink, but the traffic, and the infrastructure to support such a trade show, need to improve. But hey, it was 65 degrees and sunny, and relatively quick flight to the show. So, I suppose it does have its advantages. Where does Atlanta rank for you? Atlanta, Chicago, Orlando, Las Vegas. Perhaps it should be noted that the sooner you book accommodations for a show, the more strategically you will be for rides, dinners, walking, etc.

Nevertheless, I can’t tell you how many people sniped about the layout of the show floor—getting from one end of Exhibit Hall C, and its meeting rooms, to the other end of Exhibit Hall B, and its meeting rooms was a hike. My feet, and the 55,000 steps according my trusty Fitbit, were a testament to that.

Also, as I mentioned, 20 years of covering the event, it’s nice to see the changing of the guard with some young talent in attendance, more pointedly—and I know some don’t like to be referred to as this—social influencers. They cover the floor tirelessly to promote the show and new products. In fact, I was lucky enough to attend the social media breakout on the last day. Ten of the brightest influencers graced the stage to talk about their experiences and the importance of social media, and what it means to be an influencer.

HVAC & Social Media: Strengthening the Trade with a Community Mindset—from l to r: Ben Poole @hvactactical, Jamie Christensen @northwest_hvac, Aaron Bond @bond_aaron, Michael Flynn @flynnstone1, Jeff DeMassari @jeffjdemhvac, Jessica Bannister @hvacjess, Rachel Sylvain @hvacrara, Chris Stephens @hvacrvideos, Eric Aune @mechanicalhub, and last but not least, Omar Harris @omartheplumber.

We also were fortunate to share the stage with some of the best podcasters on the planet, as our Make Trades Great Again, hosted by Eric Aune and Andy Mickelson, featured three podcasts during show hours to much fanfare. Guests included representatives from RIDGID, NIBCO, Navien and guest Travis Albaire, T.A.P. Plumbing and Heating. Check them out wherever you stream. Also, the Appetite for Construction podcast, hosted by John Mesenbrink and Tim Ward, featured two podcasts, which featured guests from Bradford White, Rheem, Spirotherm, Lochinvar, and Danny G and Louie the Boiler Man. These recording will be launched within a couple of weeks. In the meantime, check out these podcasts wherever you like to stream stuff, or you can always find them right here on our site.

The Appetite for Construction Podcast with guests Louie Medina @louietheboilerman and Danny Gronendyke @howitbewithdannyg

The Make Trades Great Again Podcast with guests Michael Provenzano, director of pressing and Jim Vild, Atlanta territory manager, RIDGID.

As far as the latest and greatest, you couldn’t get far without seeing the future. Electrification, decarbonization, hydrogen technology are making waves as more heat pumps, electric furnaces, electric boilers, hybrid heat pumps and prefabbed distributed pumping methods are front and center; the latest in thermostats, and a plethora of other products that can talk to each other, and you, with a WiFi signal—from circulators, forced air furnaces to tankless water heaters. New or improved pipe joining methods through press technology, push-to-connect fittings, fusion welding, advances in pipe bending and cutting drew eyes. Listen, if it’s in the HVAC industry, it’s at AHR.

Check out Mechanical Hub websites, social media (@mechanicalhub & @plumbing_perspective on Instagram and TikTok, Facebook and LinkedIn.) and check out our ever-growing YouTube for products from the show.

Next year’s AHR Expo will take place in Chicago, my back yard, January 21-24 (2024). Again, check back for updates on the show or any other breaking announcements surrounding the event.

Burnham Holdings, Inc., has announced that Douglas S. Brossman will retire as CEO, effective April 24, 2023, after a fifteen-year career with the company. Christopher R. Drew, currently President and COO, will become Chief Executive Officer.

Christopher R. Drew, currently President and COO, will become Chief Executive Officer.

Drew brings extensive knowledge of the HVAC industry to the position. He has been a long-standing participant in the Air-Conditioning, Heating and Refrigeration Institute (AHRI) and continues to serve as an Ex-Officio member of the AHRI Board of Directors after previously serving as Treasurer and Chairman.

Burnham Holdings Inc. is also pleased to announce several other additions to its executive management team.  Paul D. Spradling has been promoted to Vice President of Operations, and Bryan O’Toole has been promoted to Vice President of Business Development.

Burnham Holdings, Inc. is the parent company of numerous subsidiaries that are leading domestic manufacturers of boilers and related HVAC products and accessories (including furnaces, radiators and combined heat and power systems), for residential, commercial and industrial applications. Products are manufactured at plants in the East, South, and Midwest.