Over the past few years—wink, wink COVID—the industry has seen a rise in purchasing activity between plumbing and HVAC companies and private equity firms and other outside influences—coming in and gobbling up already successful contracting shops with a message of making them better. Sure, it’s a smart exit strategy as well for those looking to Read more
HVAC
Over the past few years—wink, wink COVID—the industry has seen a rise in purchasing activity between plumbing and HVAC companies and private equity firms and other outside influences—coming in and gobbling up already successful contracting shops with a message of making them better. Sure, it’s a smart exit strategy as well for those looking to hang up the wrenches.
But why the flurry of activity now? “What we’ve seen from COVID is that the trades are pandemic-proof and to some extent recession proof. When money gets tight, consumers may hold off on that new car, going out to eat, but when that water heater goes out, it’s a necessity,” says Dan Foley, Foley Mechanical, Lorton, Va.
Foley continues, “Artificial Intelligence (AI) will never be able to take over this industry. You will always need someone to walk into someone’s home and make a repair, and that’s not easy to do. It’s the technician’s skill that AI cannot replace.”
According to Mike Prencavage Jr., president/owner, The Family Plumber, Los Alamitos, Calif., president, PHCC ORSB, director, PHCC National Business Development, “Working on margins is crucial for any business to succeed; however, in the plumbing industry most companies aren’t struggling with tight margins to turn a profit.”
As an example, Prencavage Jr. says restaurants and bars can stand to lose greatly if more than two ounces of alcohol is poured into any drink or if larger than accounted for portions of food are served on any plate. These private equity firms have seen that plumbing companies have a greater amount of sold labor income per invoice that can offset losses on jobs allowing for much wider margins to run a profitable business.
“Private equity firms are also looking to the future of renewable energy. With the electrification of the nation soon to be at every state’s doorstep, government grant funding has already become available to plumbing companies who are leading the way by installing energy efficient products. These grant programs. combined with the opportunity to capitalize on wider margins, are creating a buzz of interest from private equity groups to get more involved in the plumbing industry sector,” says Prencavage Jr.
Speaking of grants, on a national level, the Infrastructure Bill and Inflation Reduction Act, are ripe for the taking, if eligible.
On the flipside, private equity firms offer contractors security, not only monetarily, but though the expansion of their reach and service offerings across their respective regions, expand evolving customer bases and refine overall strategic growth initiatives.
Just last month, Grove Mountain Partners—a private equity firm investing in lower, middle market home service companies and specialty business service companies—announced the sale of Unique Indoor Comfort Holdings LLC to Ace Hardware. Nate Kukla, CEO, and the entire management team, including the brand presidents, will continue to lead the company as it embarks on its next growth phase.
Grove Mountain brought together 12 independent service-providing businesses, beginning in June 2021, with the acquisition of three related companies: Moncrief Heating & Air, Unique Indoor Comfort of Philadelphia, and Werley Heating & Air. It added nine other companies in the Eastern region of the U.S., including Clay’s Climate Control, Detmer & Sons, Canella Heating & Air, A-Total Plumbing, All Phase Electrical, Dick Hill & Son, Carolina Custom, Rye Heating and Air, and Jackson Plumbing and Heating & Air.
“We are grateful for our partnership with Grove Mountain and are proud of what we have built and accomplished,” said Nate Kukla, CEO. “Now, we are excited to be part of the Ace team which will allow us to leverage their combined financial and operational capabilities and expertise. Since day one, Unique has been passionately dedicated to an employee-centric, high-integrity, and customer-focused culture. Ace shares in our mission and values and brings a plethora of resources to allow us to continue and grow the business.”
Also, this month, Auctus Capital Partners—a leading financial services and investment banking firm focused exclusively on creating value for the lower middle market, which specialize in merger and acquisition advisory, institutional private placements of debt and equity, financial restructuring, valuation, and strategic consulting—announced its role as exclusive advisor to The Precision Group and its affiliated entities, supporting the environmental and infrastructure services leader in completing a majority recapitalization by PowerVac, a Pillsman Partners LLC and Peninsula Capital Partners, LLC portfolio company.
The Precision Group is comprised of three separate yet complementary companies that serve a diverse array of commercial, industrial, and municipal customers. Founded in 1992, Precision Industrial Maintenance, Inc. provides environmental remediation, industrial cleaning services, hazardous and non-hazardous waste transport and disposal, and other industrial waste services. Martin Environmental Services, Inc. was acquired by Precision Group in 2002, adding new services in asbestos and lead abatement, and disposal services. Precision Trenchless, LLC was formed in 2013 to focus on environmentally-friendly pipe rehabilitation using less disruptive technologies, such as UV-Cured and other Cured-in-Place Pipe Lining (CIPP) methods, potable water line rehab to minimize air, water and soil pollution and support advanced monitoring services.
The group of companies operate as a unified provider of services to several broad regional markets with strong projected growth through 2026 — including the sewer and pipeline rehabilitation market with a compound annual growth rate (CAGR) of 4.6%, as well as trenchless pipe rehabilitation (4.8% CAGR), and liquid waste management (3.7% CAGR).
“Underpinned by significant government support for the repair of aging infrastructure, pipeline rehabilitation and wastewater management services are seeing record investment. In addition, an ever-growing awareness of ESG issues has been driving strong investor demand,” says Muhammed Azfar, CEO and managing partner, Auctus.
More to come on this topic.
The free app serves as a centralized resource to find equipment information and contact technical support for commercial rooftop units (RTUs) and residential equipment Installation, troubleshooting and maintenance processes are streamlined with easy-to-access product information, guides and videos designed to help save time and reduce errors Content can be accessed via search or by simply Read more
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The free app serves as a centralized resource to find equipment information and contact technical support for commercial rooftop units (RTUs) and residential equipment
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Installation, troubleshooting and maintenance processes are streamlined with easy-to-access product information, guides and videos designed to help save time and reduce errors
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Content can be accessed via search or by simply scanning equipment QR codes
Johnson Controls, the global leader for smart, healthy and sustainable buildings, has expanded their collection of residential and commercial contractor resources with the new Johnson Controls Ducted Systems (DS) Solutions App. The free app provides contractors with instant access to commercial and residential equipment information to help streamline installation, troubleshooting and maintenance processes.
The digital resource was designed to help contractors save time by reducing the need for physical manuals and paper assets that can be time-consuming to sort through and difficult to navigate while on the job site. Using the app, content can be searched by model number, or an equipment QR code can be scanned to quickly access product-specific information. Additionally, the app utilizes mobile technology, including camera-integration and geolocation services that enable contractors to upload videos or photos that can be accessed by Johnson Controls technical support teams to assist the troubleshooting process.
“The HVAC industry is in a state of rapid transformation, and for many contractors this means an increased workload burden with fewer technicians on the job,” said Charles Hurd, director of residential product management, Johnson Controls. “Contractors need intelligent, easy-to-access resources that can help make their processes more efficient and more accurate. The DS Solutions App is an example of how technology can be leveraged to bridge communication, reduce time and support positive outcomes.”
Contractors can access materials within the DS Solutions App using a Johnson Controls login.
Resources found within the app include:
- Unit start-up sheets
- Product registration details
- Wiring diagrams
- Parts lookup
- Sequence of operations
- BAS control points
- Fault codes
- Engineering guides
- Installation manuals
- Product training
- Warranty information
The Johnson Controls Ducted Systems Solutions App is available for Android and iOS and can be downloaded from Google Play and the Apple App Store. For more information, visit www.johnsoncontrols.com/ds-solutions-app.
Leading U.S.-based manufacturer of boilers and water heaters, celebrating its 75th anniversary in 2023, showcases reliable, innovative products at energy and comfort industry event in Atlantic City May 21-24 Laars® Heating Systems, a leading U.S. designer and manufacturer of boilers, water heaters, and pool heaters celebrating its 75th anniversary in 2023, will showcase its high-performing and efficient products Read more
Leading U.S.-based manufacturer of boilers and water heaters, celebrating its 75th anniversary in 2023, showcases reliable, innovative products at energy and comfort industry event in Atlantic City May 21-24
Laars® Heating Systems, a leading U.S. designer and manufacturer of boilers, water heaters, and pool heaters celebrating its 75th anniversary in 2023, will showcase its high-performing and efficient products at the Eastern Energy Expo in Atlantic City, New Jersey, May 21-24.
“As the premier event for the energy and comfort industries, the Eastern Energy Expo is a great opportunity for heating and HVAC professionals to experience the reliable and high-quality products Laars has been known for since 1948,” said Chuck O’Donnell, director of marketing for Laars Heating Systems. “We are driven by a commitment to our customers and continue to deliver solutions that help them thrive and succeed as our industry evolves.”
Representatives from Laars will be available at Booth #825 during the Eastern Energy Expo with hands-on demonstrations of the following products:
- Laars® FT Series Floor Combi Boiler featuring a built-in low loss header for an easy install, and industry-best DHW delivery from a combi floor boiler.
- Laars® FT Series Wall Combi Boiler with built-in mini-indirect tank technology providing up to one gallon of stored hot water on standby.
- Laars® LT Series Tankless Water Heater, ideal for residential or light commercial applications with a high temp output setting (180 degrees) and the ability to cascade up to 16 units.
The Eastern Energy Expo brings together wholesale and retail liquid fuel marketers, motor fuel distributors, diesel and biodiesel distributors, propane marketers and HVAC service professionals to experience informative business presentations, technical education programs, a two-day trade show and memorable networking opportunities.
For more information about Laars Heating Systems, visit http://www.laars.com.
For more information about Bradford White Corporation, visit https://www.bradfordwhitecorporation.com.
Business Development Resources (BDR), a trusted provider of business coaching and training services for the HVAC, plumbing, and electrical industries, is excited to announce the return of its Leadership Excellence Academy this fall. This innovative program helps owners, managers, and team leads develop leadership skills and build high-performance teams that drive business growth and success. The Leadership Excellence Read more
Business Development Resources (BDR), a trusted provider of business coaching and training services for the HVAC, plumbing, and electrical industries, is excited to announce the return of its Leadership Excellence Academy this fall. This innovative program helps owners, managers, and team leads develop leadership skills and build high-performance teams that drive business growth and success.
BDR announces its new season of Leadership Excellence Academy, an ongoing leadership development program that focuses on creating connection, building influence, and generating enhanced results.
The Leadership Excellence Academy is a one-year leadership development program that enhances key leadership competencies for success in the HVAC, plumbing, and electrical industries. The program is structured into sessions to cover a wide range of topics, such as communication, coaching, team building, and performance management.
“At BDR, we believe leadership development is essential to building a successful business,” said Bruce Wiseman, president and owner of BDR. “We want to empower owners, managers, and team leaders to become better leaders who build high-performance teams that drive their businesses forward.”
The Leadership Excellence Academy journey consists of six four-hour training workshops targeting key leadership elements. In addition to the six bimonthly workshops, Leadership Excellence Academy offers podcasts to help participants prepare for and review each session, along with self-paced online courses available between the live online workshops.
“We know leadership is critical to success in today’s business environment, and that’s why we have designed the Leadership Excellence Academy to develop and enhance the leadership skills of owners, managers, and team leads in the HVAC, plumbing, and electrical industries,” said Jeff Plant, trainer and leadership expert at BDR. “We are confident this program will help contractors build better teams and achieve their company goals.”
With the Leadership Excellence Academy, attendees can expect to learn how to communicate effectively with their teams, develop coaching skills to help employees grow and excel, build cohesive and productive teams, and effectively manage performance to ensure the business’s success.
To learn more about the Leadership Excellence Academy and how it can help owners, managers, and team leads become better leaders and build high-performance teams, visit the BDR website at https://www.bdrco.com/leadership-excellence-academy/.
Providing accurate, detailed bids is important to homeowners. According to proprietary research from Lowe’s, 65% of homeowners cited lack of clarity on project costs as a top challenge in working with Pros. Consider taking advantage of online tools, like Lowe’s Online Order Quoting, to efficiently build and receive quotes for orders purchased via the Lowe’s Read more
Providing accurate, detailed bids is important to homeowners. According to proprietary research from Lowe’s, 65% of homeowners cited lack of clarity on project costs as a top challenge in working with Pros. Consider taking advantage of online tools, like Lowe’s Online Order Quoting, to efficiently build and receive quotes for orders purchased via the Lowe’s app/website. Pricing for Lowe’s online quotes is guaranteed for seven days, so you can share with clients in advance and help eliminate uncertainty. Learn more here.