Mechanical Hub kicks off its 2023 Industry Forecast series with good friend, Bruce Carnevale, President and CEO, Bradford White Corporation. You would think coming out of a global pandemic there might be signs of positive growth. But hold your horses, as they used to say. For the economy to back on the right track, it’s going Read more
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Mechanical Hub kicks off its 2023 Industry Forecast series with good friend, Bruce Carnevale, President and CEO, Bradford White Corporation. You would think coming out of a global pandemic there might be signs of positive growth. But hold your horses, as they used to say. For the economy to back on the right track, it’s going to take some time, and steady leadership.
Bruce Carnevale, center, right, holding water bottle
MH: I’ve heard that the first half of 2023 might be a bit bumpy, how do you see 2023 shaking out and the short-term economy in general?
Carnevale: I’m actually a bit more concerned about the 2nd half of 2023, John. While most economic indicators are not good right now, some are headed in the right direction so there feels like there is a bit of stability for now. Even though it has moderated the past couple of months, inflation continues to be stubbornly high, but the jobs market had been surprisingly strong. I’m not sure everyone understands that when the inflation rate falls from 9.1% to 6.5% (for current US inflation info), that doesn’t mean prices have fallen. It means that prices are increasing at a lesser rate, but they are still increasing at over three times the Fed’s target rate!
I believe that historically high prices have slowed demand, and helped slow the pace of inflation more so than the Fed’s rate increases have up until now. It takes time for the Fed’s actions to take hold, and I think we will see the impact of that later this year in the form of a significant slowdown. If not technically a recession, I think it will feel like one to the American consumer. I hope that the Fed becomes less aggressive with its 2023 rate increases.
I mentioned that the labor market has remained strong, but my sense is that is changing fast…every day we are hearing of new layoffs at some of the country’s largest employers. This is a clear indication of how much demand has slowed, and I think that will continue into the 2nd half of 2023.
MH: What causes you pause for concern? (Steady inflation, supply chain, housing starts, interest rates, foreign factors, etc.)
Carnevale: All of the above! But what concerns me most is labor availability. I think most companies would say the shortage of workers is still their number one business concern, despite all of the other challenges you mentioned. I am hopeful that the slow down in the labor market will bring the number of available workers and the number of job openings back to equilibrium.
The global geopolitical instability also keeps me up at night. We all saw the effects of Russia’s invasion of Ukraine and the ensuing war. That continues to be impactful to supply chains and economies, especially in Europe. But there are several other hot spots in the world that could erupt, whether it be wars or new COVID outbreaks, and have dramatic impacts on the global economy and supply chains.
MH: Are you seeing any signs of positivity? If so, where?
Carnevale: Absolutely. I’m actually somewhat bullish for our business for 2023. As I’ve mentioned in articles and presentations over the last year and a half, we’ve been in a period of correction from the over buying of water heaters in 2020 and 2021, but the worst seems to be behind us. It is also great to re- engage with our customers and business partners in person, and their businesses have mostly normalized to what they were pre-pandemic.
MH: Without getting too deep into the weeds, how do regulations help or hinder the manufacturing process, and are there any significant ones coming down the pike of which contractors should be aware?
Carnevale: Really, John? How long do we have? If your question is specific to the impact on manufacturing processes, significant regulations which require manufacturers to build entirely new models are a huge challenge. Imagine that you have a factory which builds products that are currently compliant, and then five years from now, you have to build a completely different products to meet new regulations. That sounds like a sufficient amount of time, right? But you have to continue to produce the current product while you are re-tooling the factory to build new product. There is no practical way that you can just remove all the old equipment, roll in the new equipment, flip a switch to stop making the old models and start making the new models on the date the new regulations take effect. We expect that the Department of Energy’s upcoming NAECA 4 regulation will require us to do just that. We’ll figure it out, but it’s a significant challenge and it will be very expensive.
Contractors need to prepare for a significant shift to heat pump water heaters, condensing commercial gas water heaters, and condensing boilers. Every indication is that is what the DOE will require, and several states are moving in that direction even faster and more aggressively. Some municipalities have already banned gas water heaters, and some have announced that they will within the next 5 to 10 years. I would encourage contractors to really dig into the regulations pending in their market area and prepare accordingly.
As it relates to contractors, what is your “message” to them as it relates to your company and its line of products and services? Last year, Bradford White celebrated the 30th anniversary of our commitment to the professional installation of our products. As stated in those messages, we will remain “For the Pro” with the products, services and support we bring to our contractor customers. We will strive to continue to be your best partner for success in your business.
MH: What specifically does BW have its sights set on in 2023? (New products, working with assocs. for workforce development, etc.)
Carnevale: Despite some of the headwinds that still exist with regard to the supply chain and the economy, we are excited about 2023. As you know, toward the end of last year, we released our new formula for Vitraglas tank lining where it now includes Microban. The excitement around that has been tremendous and we expect Vitraglas with Microban to help our customers win against the competition in both residential and commercial water heaters. We also have several other new products that launched in 2022 and even more to be announced in 2023.
We are also excited to be expanding the reach of our Industry Forward (IF) program, which was created to put a focus on the wonderful career opportunities available in our industry. As you know, all of us in this industry have workforce challenges so we expect to get more traction for IF in 2023 to shine a brighter spotlight on this challenge and increase awareness of our industry’s career opportunities to the general public.
As of Jan. 6, 2023, Mark Ingrao is no longer the chief executive officer of the Plumbing-Heating-Cooling Contractors—National Association (PHCC). Former PHCC Educational Foundation Chief Operating Officer Cindy Sheridan, CAE, has been named PHCC’s interim chief executive officer. Sheridan joined PHCC as the membership director in 2000 and became the Foundation Chief Operating Officer in Read more
As of Jan. 6, 2023, Mark Ingrao is no longer the chief executive officer of the Plumbing-Heating-Cooling Contractors—National Association (PHCC).
Former PHCC Educational Foundation Chief Operating Officer Cindy Sheridan, CAE, has been named PHCC’s interim chief executive officer. Sheridan joined PHCC as the membership director in 2000 and became the Foundation Chief Operating Officer in 2010.
“We are delighted to have Cindy serve as staff leader for our PHCC team,” said PHCC President Dave Frame. “She is a well-respected professional who knows our association and industry well. Her extensive knowledge and expertise will help guide us as we collaborate together to build the future for our industry.”
Just in time for heating season, Weil-McLain® has updated its ProTools™ App with enhanced features to provide contractors and service technicians with the support they need to streamline customer visits and provide clients with a premium experience. Available for iOS and Android devices, the app now allows heating professionals to work virtually with Weil-McLain’s Tech Support team to Read more
Just in time for heating season, Weil-McLain® has updated its ProTools™ App with enhanced features to provide contractors and service technicians with the support they need to streamline customer visits and provide clients with a premium experience. Available for iOS and Android devices, the app now allows heating professionals to work virtually with Weil-McLain’s Tech Support team to problem-solve issues as they occur on the job site.
“Our goal is to continuously optimize this platform by adding additional features that make service technicians’ and installing contractors’ jobs easier – especially during the busy heating season period,” said David DeVries, Director of Product Management with Weil-McLain. “The new Site-Call video assistance opens new opportunities for service technicians to receive instant support from our Tech Support team.”
Service technicians who run into complications while on the job can contact Weil-McLain Tech Support for Site-Call video and receive immediate real-time assistance. After requesting support, they simply accept the call from Tech Support on their smartphone and share a live video of the issue they are experiencing on the job site. Tech Support will then highlight the issue on the service technician’s screen and propose corrective action to solve it.
“This new feature provides heating professionals with immediate access to our support team and also allows them the opportunity to learn new methods for troubleshooting, maintenance and boiler setup,” added DeVries. “As we prepare for what could be another colder than normal winter, we want to ensure service technicians have all the digital tools and knowledge they need to help expedite customer visits while providing homeowners a best-in-class service experience.”
The Weil-McLain ProTools App helps enhance service technicians’ hydronic expertise by putting a variety of Weil-McLain boiler product information at their fingertips. From reviewing fault codes for troubleshooting and accessing how-to videos to viewing product manuals and schematics and quickly finding parts, the app has become a one-stop resource for boiler installation and maintenance.
For more information on the upgraded Weil-McLain ProTools App, visit www.weil-mclain.com or download the app via the App Store or Google Play.
Central Florida plumbing and HVAC company to celebrate rapid expansion, company culture. Mechanical One, a leading HVAC, gas and plumbing services provider, will change lives when it awards mortgage-free homes to two employees this holiday season. The winners will be picked in a lottery during an event on December 3 at the Hard Rock Live Read more
Central Florida plumbing and HVAC company to celebrate rapid expansion, company culture.
Mechanical One, a leading HVAC, gas and plumbing services provider, will change lives when it awards mortgage-free homes to two employees this holiday season. The winners will be picked in a lottery during an event on December 3 at the Hard Rock Live at Universal Orlando Resort. More than a thousand people are expected at the event, which will include a speech from Orange County Mayor Jerry Demings.
At the time of the home giveaway announcement in December 2021, there were 65 employees working at the company. That number has grown more than 500% in just the past nine months. With demand for HVAC, gas and plumbing services growing to meet housing needs in Central Florida, Mechanical One is meeting builders’ needs with its expanding workforce.
“We build communities at work, but we want to better communities during that time outside of work. Investing in our employees has been one of our top priorities. We see each employee as a family that our company is supporting, rather than an individual who is coming to work each day,” said Mechanical One President Jason James.
The company offers day one health insurance options that also include coverage for mental health. Mechanical One also gives employees access to free financial education tools. In order to qualify for the free home giveaway, employees must be employed at Mechanical One for a year, take a financial education course and complete 20 hours of community service.
Mechanical One first opened its doors in July 2021. The company serves top homebuilders, such as Pulte, Lennar and Taylor Morrison. With a presence throughout Central Florida and the Treasure Coast, employees work on HVAC, plumbing and gas for thousands of homes each year.
To learn more about Mechanical One, visit their website.
A Rolls Royce with a Veto Pro Pac tool bag in the trunk. Now that’s pretty drippy. For Moe Hirsch, Moes Consulting and Mechanical Services, Rockland County, N.Y., his bucket list item is a good representative mix of work and swaggy. Hirsch basically started off in the trades when he joined his cousins, who were plumbers Read more
A Rolls Royce with a Veto Pro Pac tool bag in the trunk. Now that’s pretty drippy. For Moe Hirsch, Moes Consulting and Mechanical Services, Rockland County, N.Y., his bucket list item is a good representative mix of work and swaggy.
Hirsch basically started off in the trades when he joined his cousins, who were plumbers, for a few days and he immediately loved the excitement. Eventually, when things began to slow down, “I went out on my own using the heating knowledge I had learned. I had the mentality that if someone was going to figure it out, it might as well be me.”
From there, Hirsch grew into a plumbing, heating and cooling company, and two years ago began distributing and installing Cummins generators. Currently, the company focuses on the mechanical trades but offers property services to its clients as well.
Hirsch says he’s learned a lot from so many that narrowing it down would be impossible to credit everyone. Having said that, “The trade leaders for me were Dan Holohan, Mark Eatherton, Bob Hot Rod Rohr and John Siegenthaler. In the business world, Grant Cardone and Brandon Dawson have showed me what my true potential is. You really can learn something from everyone,” says Hirsch.
In addition to meeting and helping so many people, another rewarding aspect of the trades is that it can be very profitable. And while you can be in the trenches working hands-on, says Hirsch, you can use your skills to be a great manager, assistant or other asset to a company. “It’s not all wrenching knowledge. Business to me is 33% knowing your trade, 33% knowing business management, fact finding and sales, and the other 33% is just being a genuine, kind person.”
How can the PHVAC industry do a better job attracting people to the trades? Hirsch, you could say, practices what he preaches. As he prepares for every job, Hirsch makes sure he has his MacBook, latest smart phone, his personal CO detector and his loaded Veto bag, and says, “Make trades cool again; show kids the cool stuff. If they’re into muscle cars show them a tradesman driving his mustang to work. If they’re techy, show them someone performing a diagnostic using a computer.”
Moreover, social media, whose influence on young people can’t be denied, has opened many doors for tradespeople. “Social media is a free outlet to showcase your work—you can share your work, learn from others and link up with locals. Plus, social media can make the sale easier. The client feels they know you and is more willing put their trust in you,” says Hirsch.
As far as balancing work/leisure time, “I don’t balance them,” says Hirsch. “I try to do both to the max.” And that includes spending time with his wife and kids, training his new Golden Retriever, Marshmallow, and, of course, bumping into clients and seeing their happiness.