In today’s ever-changing business landscape, strengthening the contractor/wholesaler channel is critical to survival. A recent general session at PHCC CONNECT drilled deep into the conversation. “How does my supplier make me look like a rock star?” asked Dan Callies, President, Oak Creek Plumbing, Inc., Oak Creek, Wis., during the “Collaborative Connections: Strengthening Supplier-Contractor Relationships for Read more
PHCC
In today’s ever-changing business landscape, strengthening the contractor/wholesaler channel is critical to survival. A recent general session at PHCC CONNECT drilled deep into the conversation.
“How does my supplier make me look like a rock star?” asked Dan Callies, President, Oak Creek Plumbing, Inc., Oak Creek, Wis., during the “Collaborative Connections: Strengthening Supplier-Contractor Relationships for Success” general session at the PHCC Connect show last month in Cleveland. Joining Dan on stage was an all-star cast featuring emcee Robert Grim, Senior Vice President, Global Sales, InSinkErator, Mount Pleasant, Wis.; Scott Robertson, President, Robertson Heating Supply Co., Alliance, Ohio; Kathryn Poehling-Seymour, President and CEO, First Supply LLC, Madison, Wis.; and Jason Pritchard, Co-Founder, PriCor Technologies, Seattle.
From l to r: Robert Grim, Senior Vice President, Global Sales, InSinkErator, Mount Pleasant, Wis.; Scott Robertson, President, Robertson Heating Supply Co., Alliance, Ohio; Kathryn Poehling-Seymour, President and CEO, First Supply LLC, Madison, Wis.; and Jason Pritchard, Co-Founder, PriCor Technologies, Seattle.
That’s the million-dollar question, right? How does the supplier/contractor relationship make each other better at his/her jobs, and contribute to the overall company mission? Throw in the manufacturer here too, for that matter. Some of the fundamental tenets for strengthening that relationship—that were discussed at the general session—included collaboration, value distribution services, availability, technology and training, and expectations.
Can’t We Just Get Along?
InSinkErator’s Grim asked about the value of working together, and Poehling-Seymour stressed that collaboration is critical in this relationship. “We must understand the pain points and what is working and what isn’t.”
And with that comes better communication. “We are in a relationship industry where communication is imperative,” said Pritchard. If that means paying a bit more for that stronger relationship, then so be it, intimated Pritchard.
Callies echoed this but stressed right communication over more communication. The common thought is “wide equals pricing and deep equals relationships,” said Callies.
So, let’s go deep as an industry. When asked what the landscape is going to look like in five-to-10 years for the contractor/wholesaler/manufacturer, people, processes and services matter. Through trust and preferences, “Relationships are going to matter more,” said Pritchard.
What about expectations? “We want to be around for another 10-20 years,” said Robertson. “We want to see contractor loyalty in the channel,” continued Robertson. “And that means a loyalty to the wholesaler in your particular market.”
Stock Market
Let’s not avoid the 800-lb. gorilla in the room. With contractor loyalty, comes availability and pricing. For Robertson, inventory presence is critical so much so that Robertson Supply holds inventory for approximately 100-125 days. “Listen, we don’t make or install anything so we better be damn good at inventory management,” said Robertson.
Value distribution services ties right in here, “It’s about right product, right time, right price,” said Poehling-Seymour. “Be that added value family.”
Tech Relevant
It’s imperative for these brick-and-mortar supply houses to stay on top of the latest trends and technology. “The key to survival is to stay progressive and current,” said Robertson. Upon further self-reflection, “how do we make it easier to find product?” asked Robertson. “This includes being totally integrated with our contractor partners and researching and developing a technology that contractors will use.”
Poehling-Seymour added that First Supply LLC institutes “customer councils” to continuously get a pulse of the customer. “We try to make sense of the noise,” said Poehling- Seymour. “Where is critical mass in that noise so we can make the right decisions?”
Unless you’ve been riding under a technology rock, Artificial Intelligence (AI) has dominated the talk in most every corner of the tech universe, and it has crept into the PHVAC industry as well. While artificial intelligence, in and of itself, can sound scary and intimidating, according to Poehling-Seymour, “AI has real application in the industry purchasing and predictability.”
For suppliers, it’s imperative to keep all “moving-forward” options available, as Robertson suggests. This includes, and nothing new and earth shattering in our industry, maximizing e-commerce when necessary. “E-commerce presents the right tools at your fingertips,” said Poehling-Seymour. Robertson adds that for his company, online ordering represents 20% volume. Other tech advancements, which included the use of QR codes to streamline processes and online training, were mentioned.
Training Room
InSinkErator’s Grim offered that in today’s business landscape, there is more need for training.
In fact, says Grim, PHCC members ask for training and education now more than ever. “With evolution and advancement comes training and education,” said Callies. Doubling down on this, Poehling-Seymour stated that First Supply opened a training center and offers a variety of training through streaming content.
Callies suggests that people still are the cogs in the wheel that makes this industry run, “Digital when you can, verbal when you must.” Pritchard and Poehler-Seymour agree, saying that people and the process are key through direct communication, and that includes all members of the channel—contractors, manufacturers, all the way down to the inside and outside sales, drivers, dispatchers, etc. within each organization.
So, let’s go back to the original question: How do we all make each other look like rock stars? Consuming all of the above, and, quite simply, “look for successes and build on them,” said Callies.
This article originally ran in PHCC’s Solutions magazine. You can learn more about the Plumbing-Heating-Cooling-Contractors (PHCC) Association at www.phccweb.org.
The kitchen sink being attendees, that is. PHCC CONNECT, this past October 25-27, was set up for one of those “best-ever” shows. Beautiful downtown Cleveland was the backdrop to very a good week of meetings, connections, site visits and much more. Oh, and the weather didn’t hurt either, with temps lingering in the mid-70s. RIDGID Read more
The kitchen sink being attendees, that is. PHCC CONNECT, this past October 25-27, was set up for one of those “best-ever” shows. Beautiful downtown Cleveland was the backdrop to very a good week of meetings, connections, site visits and much more. Oh, and the weather didn’t hurt either, with temps lingering in the mid-70s.
Mechanical Hub’s John Mesenbrink and The Family Plumber owner, Mike Prencavage, Jr. take the RIDGID tour.
RIDGID, Oatey, Moen and Merit Brass all call the “City that Rocks” home, or close to it anyway, and they each offered a bus trip to visit their respective HQs. Contractors visited their location of choice and all benefitted from their site visits.
The opening keynote, “Growth Begins at the End of Your Comfort Zone,” was presented by a compelling Ken Carter whose story blew up on the big screen as “Coach Carter,” played by none other than Samuel L. Jackson. The story of his 1999 season as coach at Richmond High School is the basis for the film. Throughout his life and tenure as a coach, he has inspired and guided numerous lives of young men to reach their highest potential. His “no non-sense” approach to getting things done is the force that has sustained him to have the tremendous positive influence that he currently possesses.
One of the contestants of the Plumbing Apprentice Contest.
One of our favorite annual events at PHCC CONNECT is the Plumbing and HVAC Apprentice Contest. A total of 21 plumbing and 11 HVAC apprentices from across the U.S. competed for top billing. The Plumbing Apprentice Contest winner was Cody McDonald of Van Contracting, Inc. in Columbia City, Ind. He was sponsored by the International Code Council.
The HVAC counterpart apprentice winner was Jacob Lee of P1 Service in Lenexa, Kan. He was sponsored by RIDGID.
The plumbing apprentices were required rough-in a bathroom system. The set-up includes a toilet, sink and shower, complete with supply, waste and vent lines, plus cleanouts and extra features designed to test the contestants’ knowledge and skills. The test set-up includes a variety of pipe materials—cast iron, copper and PVC and corresponding joining methods.
A Bradford White AeroTherm heat pump water heater was on display during the Product & Technology Showcase.
The HVAC competitors were required to complete a written test, demonstrate proper brazing techniques and perform a hands-on diagnostic on an HVAC package unit, with system errors created by the Foundation’s contractor volunteers for the competition. The competitors also had to perform a pressure and leak test, demonstrate proper refrigerant recovery procedures and the ability to accurately take a variety of instrument readings.
Adjacent to these apprentices diligently working on their assignment, a Product & Technology Showcase buzzed with activity surrounding the lates in tool technology, kitchen and bath, and water heating and heat pump tech.
The kitchen sink.
Seminars and breakout sessions included a Government Affairs Update, Private Equity’s Interest in Plumbing Industries, DOE Standards for Water Heating Products and an Open Roundtable with Union Affiliated Contractors.
A strong session on Women in Industry: “Unlocking Potential and Breaking Barriers: Fostering Success for Women in the Trades through Gender-Inclusive Practices in Recruitment, Retention, and Engagement,” featured some of our personal friends, including Linda Hudek, LH Plumbing Services, Fairfield, Ohio; Ashley Martin, Executive Vice President, NIBCO; and Cassie Pound, co-owner of Quality Heating, Cooling & Plumbing in Tulsa, Oklahoma.
Linda Hudek addresses a question from moderator Susan Frew.
In today’s ever-changing business landscape, strengthening the contractor/wholesaler channel is critical to survival. A recent general session at PHCC CONNECT drilled deep into the conversation. This session, “Collaborative Connections: Strengthening Supplier-Contractor Relationships for Success,” featured RobertGrim, Senior Vice President, Global Sales, InSinkErator, Mount Pleasant, Wis.; Scott Robertson, President, Robertson Heating Supply Co., Alliance, Ohio; Dan Callies, President, Oak Creek Plumbing, Inc., Oak Creek, Wis.; Kathryn Poehling-Seymour, President and CEO, First Supply LLC, Madison, Wis.; and JasonPritchard, Co-Founder, PriCor Technologies, Seattle.
From l to r: Robert Grim, Scott Robertson, Dan Callies, Kathryn Poehling-Seymour, and Scott Pritchard.
And many, many more worthwhile seminars were offered. In fact, PHCCCONNECT2023 education sessions had been approved by OCILB (Ohio Construction Industry Licensing Board) for 19 CEUs.
A RIDGID afterparty at a brewery on the river in downtown Cleveland with some American Plumber Story stickers? Yes, Please! Here with RIDGID’s Becky Brotherton, the Hub’s John Mesenbrink (l) and Tim Ward (r) from the Appetite for Construction podcast, recorded a series of podcasts from the event.
So, mix in some fun nights out with Oatey, RIDGID and PHCC’s receptions “Ohio Night House of Blues” and its closing event at the Rock ‘n Roll Hall of Fame, and, of course, connecting with industry peers, and you had the recipe for one kick-ass event.
Next year’s PHCC CONNECT will be held in Birmingham, Ala. Of all places, I sure hope that words gets around about the event. It’s worth the time, but more people need to come experience it, Birmingham or not.
Falls Church, Va. — The Plumbing-Heating-Cooling Contractors—National Association (PHCC) Educational Foundation is proud to announce the six plumbing students who received top honors in the plumbing competition during the annual SkillsUSA National Leadership and Skills Conference, held June 22nd and 23rd in Atlanta, Ga. Members from the Foundation’s Plumbing Apprentice and Journeyman Training Committee serve Read more
Falls Church, Va. — The Plumbing-Heating-Cooling Contractors—National Association (PHCC) Educational Foundation is proud to announce the six plumbing students who received top honors in the plumbing competition during the annual SkillsUSA National Leadership and Skills Conference, held June 22nd and 23rd in Atlanta, Ga.
Members from the Foundation’s Plumbing Apprentice and Journeyman Training Committee serve on the SkillsUSA Plumbing Technical Committee. Committee members were on hand to set up, run. and assist with contest judging.
The PHCC Educational Foundation partners with SkillsUSA to sponsor the plumbing contest each year. The Foundation also supports the HVACR Contest. The SkillsUSA Championships is the nation’s largest hands-on workforce development event for middle school, high school, and college/post-secondary students enrolled in career and technical education programs. The SkillsUSA Championships occupy 1.79 million sq. ft. (31 football fields or 41 acres) of floor space. More than 6,000 students competed in 110 contests.
The Plumbing Contest winners were:
- 1st Place Secondary – Shadrach Roundy, Davis Technical College, Kaysville, Utah
- 1st Place Post-Secondary – Christopher Hayes, Pinellas Technical College, St. Petersburg, Fla.
- 2nd Place Secondary – Nicholas Gerasimov, Shawsheen Valley Technical High School, Billerica, Mass.
- 2nd Place Post-Secondary – Brent Offenberger, Rowan Cabarrus Community College, Salisbury, N.C.
- 3rd Place Secondary – Benjamin Tuck, Putnam Career & Technical Center, Eleanor, W.Va.
- 3rd Place Post-Secondary – Chris Martinez, Texas State Technical College – West, Brownwood, Texas
“The PHCC Educational Foundation is dedicated to improving the industry by helping students in
the plumbing, heating and cooling fields reach their full potential. The SkillsUSA Championships
competitions are an outstanding example of the professionalism that results when industry is joined with education,” said PHCC Educational Foundation CLO, Angela Collins.
Technical committee members for this year’s event included:
- Robert Hahn, Chair, Eastwick College, HoHoKus School of Trades, Union, N.J. (plumbing)
- Dale Powell, Project Manager, PHCC Educational Foundation, Gettysburg, Pa. (plumbing)
- Danny Crigler, III, L & D Coates Inc., Aroda, Va. (plumbing)
- Roman Grier, Viega, Broomfield, Colo., (plumbing)
- Victor Hatcher, Tyler Pipe and Coupling, Tyler, Texas (plumbing)
- Warren Lupson, Lupson Assoc., Silver Spring, Md. (HVACR)
- Harold Moret, Copper Development Association, McLean, Va. (plumbing)
- John Mullen, International Association of Plumbing & Mechanical Officials, Ontario, Calif. (plumbing)
- Patrick Peterson, TOTO, Morrow, Ga. (plumbing)
- Larry Shoemaker, Deluxe Plumbing & Heating, Bethlehem, Pa. (plumbing)
- Jeff Voss, Jeff’s Plumbing and Repair, Boone, N.C. (plumbing)
- Jamie Simpson, Schaal Heating & Cooling, Des Moines, Iowa (HVACR)
- James Walls, Cast Iron Soil Pipe Institute, Garland, Texas (plumbing)
The Plumbing-Heating-Cooling Contractors–National Association (PHCC) welcomed PHCC members, chapter executives, and corporate partners to Washington, D.C., May 16-17, to meet with lawmakers and educate them on energy, economic, and workforce policies that are important to the industry and consumers. Before heading to Capitol Hill as industry experts, members first heard from political expert Charlie Cook, who was the keynote speaker Read more
The Plumbing-Heating-Cooling Contractors–National Association (PHCC) welcomed PHCC members, chapter executives, and corporate partners to Washington, D.C., May 16-17, to meet with lawmakers and educate them on energy, economic, and workforce policies that are important to the industry and consumers.
Before heading to Capitol Hill as industry experts, members first heard from political expert Charlie Cook, who was the keynote speaker for the event. Cook spoke on the current political landscape, lessons from the 2022 midterms, and predictions for 2024.
After hearing from Cook, the group was briefed by PHCC Legislative Affairs Director Mark Valentini, PHCC Vice President of Regulatory Affairs Chuck White, and a panel of other industry lobbyists. Panelists included Jim Collura, vice president and director of government affairs for the National Energy & Fuels Institute (NEFI); Steve Rossi, vice president of advocacy for the American Supply Association (ASA); and Robert Wolfer, manager of government relations for Bradford White Corp (PHCC Strategic Partner). That evening, the group attended a reception in the historic Caucus Room of the Cannon House Office Building. This reception was held in conjunction with the Heating Air-conditioning and Refrigeration Distributors International (HARDI) and the Air-conditioning, Heating and Refrigeration Institute (AHRI). Members of Congress stopped by to network with members of PHCC and these other industry groups.
The next morning during breakfast, attendees heard insights from a second Washington Insider panel consisting of Craig Brightup, chief executive officer of the Brightup Group LLC; Matt Kiessling, senior director of state affairs for the American Gas Association (AGA); and Christopher Lindsay, vice president of government relations for the International Association of Plumbing and Mechanical Officials (IAPMO – PHCC Supporting Sponsor). After a quick stop for a picture on the Capitol steps, they headed to their respective meetings. In total, 71 PHCC members from 27 different states had 111 meetings with elected officials and their staffs. At a closing roof-top reception that evening, members spoke in-depth about how much they valued the in-person meetings on Capitol Hill, in addition to getting to participate in the rest of the sessions as a part of this two-day event.
“The 2023 PHCC Legislative Conference was an extremely valuable event for all who attended,” said PHCC—National Association President Dave Frame. “Besides the very beneficial one-on-one meetings with legislators, the conference was a great opportunity for PHCC members to connect with each other and with others in the industry supply chain. Together, we are able to accomplish so much more on behalf of our members, the industry, and society.”
The conference was sponsored by PHCC Corporate Partner Federated Insurance. Next year’s event will be May 21-22, 2024.
Falls Church, Va. — Plumbing-heating-cooling contractors are feeling cautiously optimistic, according to a new report from the Plumbing-Heating-Cooling Contractors — National Association. The PHCC Business Intelligence Department just released its newly developed Contractor Confidence Index (CCI). Sponsored by PHCC Strategic Partner Bradford White, the PHCC CCI is based on a quarterly survey of PHCC members designed to take Read more
Falls Church, Va. — Plumbing-heating-cooling contractors are feeling cautiously optimistic, according to a new report from the Plumbing-Heating-Cooling Contractors — National Association. The PHCC Business Intelligence Department just released its newly developed Contractor Confidence Index (CCI). Sponsored by PHCC Strategic Partner Bradford White, the PHCC CCI is based on a quarterly survey of PHCC members designed to take the pulse of the plumbing, heating, and cooling market.
The PHCC First Quarter 2023 CCI summary report revealed a CCI of 52.2, meaning contractors believe industry conditions are better than the previous six months, but are trending lower because of ongoing challenges. The first quarter CCI dropped from 56.0 in the Fourth Quarter of 2022, with an increasing number of respondents citing economic uncertainty and fear of a coming recession.
Any rating over 50 indicates a higher share of PHCC contractors reporting industry conditions are better than they were in the previous quarter, while any rating under 50 indicates a higher share of respondents reporting conditions are worse than they were in the previous quarter.
Plumbing contractors reported a lower future confidence index of 42.2 percent, versus 48.9 percent in the fourth quarter 2022, indicating that contractors who own plumbing businesses believe industry conditions were worse than the previous six months. HVAC contractors reported a higher future confidence index of 56 percent, versus 60.6 percent in the fourth quarter, suggesting industry conditions still feel better than the previous six months, though sentiment is trending lower.
The top contractor challenges reported were:
- Operating short-staffed
- Customers holding off on projects
- Low call volumes
- Too much work
- New construction slowdown
While roughly 70 percent of PHCC Contractor respondents anticipated normal to better sales in the future, 30 percent of respondents are not operating with a full staff, employees, and technicians. Double the number of respondents reported that customers are holding off on projects and replacements due to economic concerns — a significant increase when compared to fourth quarter results. 72 percent cited rising costs, and half of the respondents noted delays in shipping materials. The results were flat at 25 percent for those who indicated concerns about lower construction starts when compared to the last quarter.
Looking ahead, 73 percent of PHCC respondents are anticipating increased cost of doing business (parts, materials, labor), and most of those respondents are worried about an impeding recession, as well as continued challenges finding qualified employees and technicians.
The top three concerns for contractors over the next six months include the cost of health insurance, fear of recession, and increased (additional) insurance costs. Additional concerns were increased regulations, decreased construction starts, and cash flow.
“We are very pleased to unveil this first quarter 2023 Contractor Confidence Index that will help us determine the current sentiment of PHCC members,” said PHCC—National Association President Dave Frame. “With access to this valuable information, our members will be able to track challenges and trends that affect their business, as well as maximize any business opportunities that are identified. And from an organization perspective, PHCC will be well-positioned to identify and develop programs and services that will meet our members’ needs.”
The PHCC Business Intelligence Department works to favorably position PHCC members and affiliates to achieve the highest level of market awareness, professionalism, leadership, and business profitability in the emerging and ever-changing built environment. Relevant resources are updated on a regular basis on the new PHCC Business Intelligence website: www.phccweb.org/business-intelligence.
Disclaimer: The PHCC Contractor Confidence Index (CCI) is based on a quarterly survey of PHCC members designed to take the pulse of the plumbing heating and cooling market. The survey asks respondents to rate market conditions for the present time and for the next six months. Survey results and the PHCC CCI were developed as a general sense of contractor sentiment and should not be used as a guaranteed indication of future performance of economic and industry performance. Many PHCC Contractors provide both plumbing and HVAC installation and service.