We recently asked some of the major players in the phvac markets to give us their feel of how the economy, supply chain, etc. plays out for 2022. We caught up with Bradford White’s Bruce Carnevale, president and CEO, and here are his thoughts on the rest of the year and beyond. MH: We’ve all experienced Read more
Plumbing
We recently asked some of the major players in the phvac markets to give us their feel of how the economy, supply chain, etc. plays out for 2022. We caught up with Bradford White’s Bruce Carnevale, president and CEO, and here are his thoughts on the rest of the year and beyond.
MH: We’ve all experienced supply chain shortages, whether it’s industry related or things such as computer chips, plastics, bacon, etc., for example. Do you project a turnaround soon or within the next 6-12 months for certain materials that relate to your specific company?
Carnevale: While the supply chain issues for some materials and components is improving, for others it’s actually getting worse. In the aggregate, I think that supply chain issues will continue to impact our business for most of 2022, and for some components, into 2023.
MH: We are in the midst of some of the highest inflation rates since the early ‘80s. Do you think that higher inflation becomes a “newer normal”? Explain.
Carnevale: No. Inflation is somewhat of a self-correcting problem. One of the many economic indicators we follow is the consumer savings rate, which was at an all-time high during the peak of COVID. It is now back to normal levels, so at some point, prices increase to the point where consumers are no longer willing or able to pay the higher prices. Demand then falls, and that puts downward pressure on prices. This will go back through the supply chain from the consumer to commodities suppliers, and I expect we will see deflation on some products driven by lower material costs. There will, however, be a “new normal” for prices because of increased labor costs. Those costs are very unlikely to adjust downward, and therefore even when commodities adjust, the total costs will still be higher than pre-COVID.
MH: In general, how do you see the economy short-term? Give a few examples of how you draw that conclusion (housing starts, commercial construction, etc.).
Carnevale: I have concerns about the macro-economy for 2022 and 2023 and have had concerns since the beginning of 2021. I don’t see how we can’t have a significant slowdown in the economy with all of the headwinds we are facing: Inflation, rising interest rates, energy prices, labor shortages, global instability, the politics of a mid-term election year, etc. I see the slowdown taking hold going into the second half of 2022.
MH: Where are you seeing signs of positivity, if any?
Carnevale: Clearly COVID cases are falling, and hospitalizations and deaths are significantly lower with Omicron vs. previous variants. There is hope that we are nearing the end of the pandemic phase and entering the endemic phase.
MH: How do you as manufacturers work with customers who are dealing with longer lead times and/or higher prices? Is it a matter of open lines of communication?
Carnevale: Each manufacturer deals with it differently. Our team has communicated very openly with customers when issues arise, or even when we expect issues to arise so that our customers can have the most time and information to make appropriate adjustments in their operations. So, yes, transparent communication is the best way to deal with rapidly changing conditions.
MH: It seems that in today’s employment landscape, it’s hard to find good labor, whether it’s truck drivers, waiters at restaurants, etc. In our industry, how do we continue the fight to highlight the trades as a great career choice?
Carnevale: Very true. The restaurant where I had lunch this afternoon had a sign on their entrance door that read: “Every business is short on labor. Please be kind to those who showed up to work!” That really sums up the current labor environment.
As everyone in our industry knows, the labor shortage was our biggest challenge before COVID, and it will continue to be post-COVID. There are many industry initiatives working to position the trades as a great career choice, and many companies in our industry are working diligently to promote the trades as well. I still believe what we are missing is a well-funded, well-coordinated public/private message with a big voice and a clear message that would connect with younger audiences. While we continue to work towards that, Bradford White will continue our initiatives, and 2022 we will be launching an entirely new foundation designed to promote our industry and attract new people.
MH: In spite of COVID, people must move on. How has your company evolved—or continued to march forward—over the past two years, and talk about any new initiatives, expansions, etc.
You’re right, organizations and individuals must move on. We have found that it is very helpful to shorten the time horizon for goals and objectives, otherwise you can really get bogged down by all the negative things happening all around you. So, whereas you might have had the monthly or quarterly goals, now you have to look at them weekly, or even daily. That doesn’t mean that you don’t still have long term, strategic goals, but rather that you shift more of your focus to just getting through each day or week.
From a business philosophy perspective, we, and I think most organizations are looking at supply chain improvements and diversification. I think some of the important trends will be shortening supply chains by working with suppliers closer to manufacturing operations and reviewing the risks of just-in-time inventory models versus the overall value.
A part of Emerson’s professional tools portfolio, RIDGID will select five winners for this year’s trip RIDGID®, a part of Emerson’s professional tools portfolio, is once again giving trade professionals a contest to win the trip of a lifetime. The company announced today they have begun accepting entries for the RIDGID Experience contest, being held Read more
A part of Emerson’s professional tools portfolio, RIDGID will select five winners for this year’s trip
RIDGID®, a part of Emerson’s professional tools portfolio, is once again giving trade professionals a contest to win the trip of a lifetime. The company announced today they have begun accepting entries for the RIDGID Experience contest, being held Aug. 3-5 at RIDGID world headquarters. Five grand prize winners will be selected to receive the event’s signature VIP treatment at the annual, all-expenses-paid trip that continues to grow in popularity.
Entries will be accepted through April 29, 2022. Contest winners will be selected based on their response to questions, trade involvement, enthusiasm for RIDGID tools displayed in submitted picture or video, and originality and uniqueness of entry. To enter, and for additional rules and details, visit the RIDGID Facebook page.
“It is so important to us as a brand to recognize the hard work, commitment and dedication that trade professionals put into their jobs every day. The RIDGID Experience contest gives us the opportunity to reward a select group of individuals with a truly unique event, and it puts a spotlight on the work they do,” said Becky Brotherton, director of engagement marketing, RIDGID for Emerson. “This year marks the fifth RIDGID Experience contest and the excitement it generates is a direct result of the people who join us: their enthusiasm for what they do is evident. Our goal always is to highlight the importance of the skilled trades, and every year we’re thrilled to see that pride within our winners.”
Past contest winner, Bobby Scirica, a plumbing service technician from Arizona described the trip this way, “I’ve been using these tools for years and being here and seeing the machines and people who make the tools, it’s emotional.” And another past winner, Rob Broccolo, owner of Professional Drain Services of Southern New England, said, “RIDGID is a big name in the industry and it felt incredible to be selected for a once in a lifetime opportunity. By far the highlight of my career and time in the trades.”
RIDGID Experience contest winners will receive:
- An all-expenses-paid trip to RIDGID world headquarters
- A VIP RIDGID headquarters tour
- A custom RIDGID pipe wrench
- Hero photoshoot, celebrating winners’ dedication to the skilled trades
- Suite seats to see the Cleveland Guardians
- A trip to Topgolf, a sports entertainment complex that features an inclusive, high-tech golf game
- And more
Winners will also have the opportunity to shape the future of professional tool development by providing their expert insights with RIDGID leadership including the engineering, marketing, research and product developments. How to enter and full 2022 RIDGID Experience official contest rules can be found here.
Emerson’s professional tools business, which includes RIDGID as well as the Greenlee® and Klauke® brands, provides the industry’s broadest portfolio of advanced, reliable tools and technologies for the mechanical, electrical and plumbing trades globally. Visit emerson.com/professionaltools for more information.
Leading manufacturer announces its continuing investment in the plumbing and HVACR trade organization’s training, education and workforce development programs Bradford White Corporation, an industry-leading manufacturer of water heaters, boilers and storage tanks, and the Plumbing-Heating-Cooling Contractors—National Association (PHCC) announce the renewal of their exclusive strategic partnership agreement and confirm their joint commitment to promoting and strengthening the Read more
Leading manufacturer announces its continuing investment in the plumbing and HVACR trade organization’s training, education and workforce development programs
Bradford White Corporation, an industry-leading manufacturer of water heaters, boilers and storage tanks, and the Plumbing-Heating-Cooling Contractors—National Association (PHCC) announce the renewal of their exclusive strategic partnership agreement and confirm their joint commitment to promoting and strengthening the plumbing and HVACR industries.
The continuing partnership between two of the PCHP industry’s most trusted organizations reflects their shared mission to support professional contractors and their teams through investments in training, education, recruiting and advocacy resources.
“Our exclusive strategic partnership is based on the foundational values that drive Bradford White and PHCC,” said Joel Long, president of PHCC. “Bradford White’s deep, demonstrated commitment to the priorities of contractors aligns with PHCC’s dynamic initiatives for advancing the industry, and together we can enhance the positive effect we have on the lives of professionals on the ground who are providing essential plumbing, heating and cooling services now and in the future.”
Through its strategic partnership agreement with PHCC, Bradford White supports a range of scholarships, programs and initiatives dedicated to the advancement of contractor education and excellence, contractor business development, and promoting the value of the trades, including:
- The PHCC Educational Foundation, which provides innovative educational programming to enhance the growth and success of the plumbing and HVACR industry workforce.
- The SkillsUSA Plumbing Championship, a national competition for high school and post-secondary students featuring more than 16,000 competitors, instructors, industry representatives and volunteers.
- The Invest in Your Future Campaign, a fundraising effort supporting future workforce development.
- PHCC Education Partner, in support of PHCC education and training that provides PHC business owners and their employees with easy access to high-quality education and training opportunities.
“Bradford White’s unique relationship with PHCC through the years has given us an opportunity to elevate and amplify our investment in the plumbing, heating and cooling industry,” said Carl Pinto, Jr., senior director of marketing communications for Bradford White. “Supporting the hard-working professionals in our industry and developing future generations of PHC experts not only enhances the current state of our profession, it’s critical to ensure safe, reliable delivery of essential services for years to come.”
For more information about Bradford White Corporation, visit https://www.bradfordwhitecorporation.com.
A. O. Smith, a leader in water heater manufacturing, announces the launch of In Our Element, a monthly live talk show. Hosted by A. O. Smith Senior Technical Trainer, Jerry Winslett, the show will highlight news from A. O. Smith, offer service tips, discuss industry topics, answer common product questions and more. “This show will Read more
A. O. Smith, a leader in water heater manufacturing, announces the launch of In Our Element, a monthly live talk show. Hosted by A. O. Smith Senior Technical Trainer, Jerry Winslett, the show will highlight news from A. O. Smith, offer service tips, discuss industry topics, answer common product questions and more.
“This show will help us connect with our customers in a new way,” said Winslett. “By providing additional opportunities to expand their knowledge of A. O. Smith products and important industry topics, we’re hoping the show will help them make more informed decisions out in the field.”
In Our Element will premiere on Monday, Feb. 28 at 1 p.m. CST, and will be hosted live on the
A. O. Smith YouTube page. The premiere episode will feature A. O. Smith Marketing Director, Jeff Storie, and will discuss marketing in the water heating industry.
“We’re constantly striving to find new ways to further develop the relationships we have with our customers – especially in a digital format – and we hope this show will do just that,” said Winslett.
Each episode will run roughly 30 minutes and will feature a new topic and guest star. Topics will include industry news, product launches, resources and more. The second episode will run on Friday, March 25 at 1 p.m. CST, and will feature A. O. Smith Technical Trainer, Kenneth Ezzell, who will highlight A. O. Smith University.
Visit the A. O. Smith YouTube page and subscribe to the channel to be notified of future shows and view other content. For more information on A. O. Smith and its products, visit www.hotwater.com.
The Rinnai PRO Network improves benefits with addition of leasing option through Advantage Alliance™ As professional contractors seek opportunities to maximize their engagement with customers and strengthen relationships with reliable manufacturers, Rinnai America Corporation is ready to take on the challenge. The company recently announced a nationwide partnership with Advantage Alliance™ to enable residential heating, cooling and plumbing Read more
The Rinnai PRO Network improves benefits with addition of leasing option through Advantage Alliance™
As professional contractors seek opportunities to maximize their engagement with customers and strengthen relationships with reliable manufacturers, Rinnai America Corporation is ready to take on the challenge. The company recently announced a nationwide partnership with Advantage Alliance™ to enable residential heating, cooling and plumbing contractors to offer homeowners a cost-effective approach to maintaining home comfort. This will be part of Rinnai’s PRO Network, a member-only program offering contractors tools, training and support to help grow their business.
Rinnai’s Worry Free Hot Water program, powered by Advantage Alliance, gives homeowners the ability to install a tankless water heater or home heating products with no money down and low monthly payments through a leasing agreement that includes 100% maintenance and upgrades. The program allows contractors to offer customers an all-inclusive membership plan that includes new, high-efficiency equipment as well as routine maintenance and repairs.
“Our partnership with Advantage Alliance™ expands upon benefits Rinnai PROs can offer to customers,” said Rinnai America Corporation President, Frank Windsor. “Our initiatives, programs and partnerships are designed to support the needs of professional contractors and we want to continue to provide innovative solutions and support. From our standpoint, this addition not only benefits our PROs, but it’s also a valuable offering for their customers.”
Rinnai’s PRO Network launched in early 2020 in an effort to engage professional contractors. Comprised of elite benefits for registered users including qualified leads, rewards, advertising and technology support, the introduction of this partnership will provide yet another avenue for business growth.
“Rinnai understands the importance of helping these hard-working contractors evolve and find greater efficiencies to increase profitability,” said Nicholas Blaylock, Director of Business Development at Advantage Alliance™. “The Advantage Alliance Program also brings many benefits to homeowners by making it even easier to manage and maintain their water heating systems.”
The Advantage Alliance Program provides contractors with the necessary infrastructure and support to implement the program while also providing flexibility to customize the program to meet their vision. It will be available to all Rinnai PRO Network registered users in 2022. To learn more about Rinnai, visit www.rinnai.us.
To learn more about the Advantage Alliance Program visit www.advantageallianceprogram.com.