HVAC

P1 Service Group, an industry-leading growth partner that provides world-class resources to its home service partner companies across the country, announced a partnership with Portland-based Sky Heating, AC, Plumbing & Electrical, launching P1’s family of companies into the Pacific Northwest.

Sky Heating, AC, Plumbing & Electrical has offered expert home service solutions to homeowners across Oregon and Southwest Washington since 1979. With physical locations in Portland, The Dalles, and Gresham, the company has continuously added services and solutions to help meet the needs of their expanding customer base and supported their communities through The Home Builders Foundation, Meals on Wheels, Dash for Kids, and other organizations.

“Sky demonstrates the values we seek in home service partner companies,” said P1 CEO Jeff Belk. “We quickly noticed the level of care and commitment Sky had for their team, and it was clear that they are an ideal partner company for us. Together with our team at P1, I’m confident that Sky will continue growing throughout the Pacific Northwest.”

Sky’s president, Travis Smith, recognized there was a ceiling given his existing resources that would ultimately prevent his team and company from reaching their full potential. He wanted a partner that would prioritize the development of his team and help them deliver their outstanding service to more homeowners across Oregon, Southwest Washington, and beyond.

“I saw the point coming at which we would reach a leadership lid at Sky, and I immediately started to search for a true partner that would ensure my team’s growth was not limited,” Smith said. “Our two primary goals were to find a company that believed in our employees first and that would empower them to grow both personally and professionally. From the first moment we discovered P1 Service Group, we knew we found a fit. Since partnering with P1, we’ve continued to grow and develop leaders from within our company at a level higher than previously possible.”

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, 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.

Monumental concerns in the industry—from supply chain issues and inflation concerns to electrification and decarbonization—challenge contractors and manufacturers alike to be ready to rise above the fray.

On September 28, Hurricane Ian, a Category 4 storm, hit the Florida coast, leaving a trail of destruction, loss of life, and people without power, and a place to live. The following week, after the residual rains moved through the South Atlantic states, PHCC CONNECT attendees, exhibitors and staff were fortunate to convene in Charlotte, N.C. for the annual show.

One of the many bright spots during CONNECT was the annual Industry Perspective panel—back by popular demand—which featured some of the industry’s finest: Elisabeth Sutton, Director—Marketing, Professional Channel, Kitchen and Bath Americas, Kohler; Bruce Carnevale, President and CEO, Bradford White Corporation; Randy Roberts, Vice President of Sales and Marketing, Rheem; Scott Teson, Senior Vice President of Skilled Trades, Milwaukee Tool; Jeff Fetters, Chairman, Federated Insurance Companies.

As I prepared for the panel, I would have been remiss if I didn’t mention those people still struggling in the Sunshine State. And the more I thought about what was happening in Florida, the more I could draw some symmetry of what has been plaguing our nation the past few years.

Things like supply chain. Are the right people getting what they need in Florida? Labor shortage. Do we have the manpower to provide assistance? Or, do we have the proper infrastructure in place? What about electrification? I mean, I had just seen a meme that said something like, “2.8 million people without power, time to fire up the Teslas.” Now that could be perceived as a bit naïve, but when you look at California, for instance—declaring no new gas cars sold in the state by 2035—concerns about adequate infrastructure are real.

It’s a good thing we had the right people on the panel to address such concerns. I learned that Federated Insurance sent “catastrophic teams” to Florida to help. “We needed to have boots on the ground as quickly as we could,” said Fetters. “Businesses need to have high expectations for employees to remain safe. Disasters can strike at any time. A risk management culture has to perpetuate through every single employee,” said Fetters.

As a side note, how can contractors prepare for such an event? “Make sure you sit down with an agent to see what it would cost to replace your business, and any personal property in the event of any potential catastrophe,” said Fetters.

Supply Chain Woes

Nonetheless, supply chain issues dominate conversation almost daily among working contractors. “We are still challenged by supply chain issues, and it has forced us as a company to better manage our supply chain. We do things differently now,” said Carnevale.

As a manufacturer, you’re never getting what you need from plastic resins overseas, nickel component slowing lines down to component issue challenges,” said Roberts. “This makes us be creative on managing supply chain.”

According to Sutton, “We see that luxury side of remodeling is still high. The thing impacting supply chain is that distributors are receiving more products, managing inventory for distributors.”

Investments in People/Training

Milwaukee Tool has made an $400 million investment in domestic manufacturing. “We want to control our own destiny,” said Teson. Yet, Teson pointed out that with more commercial construction projects on the books, how do we find the right people to support those jobs? “We need skilled tradesmen and women to support those efforts,” said Teson.

Sutton suggests that technology in products is a viable avenue to attract the younger generation. C’mon, who doesn’t like the way an impact driver or press tool feels in their hands?

“We also need to attract people to the industry to show them how wonderful it is, and that should not be specific to one type of person,” said Sutton. “We need more diversity, not just one profile,” continued Sutton.

“This is a fantastic industry, and once people are a part of it, they stay,” said Roberts.

Yet, once in the building, how do we get people to stay? Training. “It has always been a critical part of what we do. We have been very flexible with our training—we will take it to customers and also bring them into our facility,” said Carnevale.

How do employees continue to get better year after year? The panel agreed that it’s about establishing a culture of training in your office. This gives employers a competitive advantage in keeping people and attracting people because they will be seen as investing in them.

Electrification is the Buzzword

According to Carnevale, topics surrounding electrification loom large. For example, will the infrastructure be in place to support the new products? How will the infrastructure build out in a very short time? This puts the consumer in a bad position and puts our national security at risk—i.e., supply chain issues and the country’s fragile relationship with China.

“Electrification and decarbonization, whether we like it or not, we need to be prepared. We have the products available,” said Roberts.

Government Regulations

Carnevale noted that he receives email relating to a regulatory issue almost daily. “The DoE is extremely active, and there’s a requirement that is in the foundational law that once the DOE sets a new minimum efficiency standard, it cannot go backward.”

According to Rheem’s Roberts, there is an “Install Date Standard for Air Conditioning Systems” looming and, “Contractors will be breaking the law if they install an AC system not rated to the new standard come January, 1 2023.” Efficiency standards dictate that sell through of existing systems will be allowed in the northern states if the product was manufactured prior to January 1, 2023. This is not the case in the South and Southwest. AC systems must comply with the 2023 federal minimums to be installed after January 1, 2023. Current Heat Pump systems can continue to be installed in all regions as long as they were manufactured before January 1.

And who is enforcing this, you may ask? “Contractors and distributors will be self-policing installations to make sure they meet the new standard. In addition, manufacturers cannot ship products that don’t meet the new standards or allow them to be registered for warranties if installed after January 1. A standard based on install date will ultimately create inventory challenges for everyone in the industry,” said Roberts.

That Dreaded ‘R’ Word

There are whispers of the “R” word and I don’t think it means that “relief” is on the way anytime soon. From inflation to fuel prices, contractors have faced economic hardships that may continue to linger into 2023, and beyond. “We’ve been bearish on the economy longer than the financial press has been,” says Carnevale. “It is pretty clear that we are in a recession. There have been some positive signs, the fed is getting aggressive, and we will see significant drop in housing market.”

Carnevale continued that he is concerned about the macro economy, even though there are some good signs. “Labor shortages continue to be a vexing problem, and we need to focus on the labor participation rate compared to pre-pandemic, meaning there are a lot of people who are choosing not to work,” said Carnevale.

Teson said that interest rates are the real threat. “We’re watching it very closely and trying to make decisions that will make us come out stronger than our competitors.”

Carnevale added that there is a very distinct demand for discretionary vs. non-discretionary products. In the end, “As the demand starts to soften, we are subject to the laws of supply and demand. It is not going got back to where it is pre-pandemic, but will see some softening on pricing.”

Roberts says that overall, we should see a correction. “How do you position yourself to come out stronger than you go into it?” That’s the question.

For more info, visit PHCC.