Mechanical Hub is kicking off a series of posts of what we see as trending topics for 2024. The first in the series is Artificial Intelligence.

As an editor covering the PHVAC industry for more than 20 years, not too much has been as polarizing as the topic of Artificial Intelligence (AI). Okay, maybe press technology, tape vs. dope or drain cleaning is plumbing. But I digress.

What’s interesting to me is that AI is all around us, and whether we know if it “shits in the woods,” does that make it okay? Listen, we’ve all had conversations around a certain topic only to find out later that said topic has now filled your social media feed. But we’ve become to desensitized to that by now, haven’t we?

Recently, the once revered Sports Illustrated magazine employed a product review columnist, that wasn’t. I mean he didn’t exist. It was revealed the columnist was AI generated, picture and all, and so was the creation of content. So what information is real or believable?

Coming full circle, I was working recently on a case study regarding a pretty sizable mechanical contractor and a boiler retrofit. I was told to reach out to the marketing department for some background info and some initial quotes on the project. When I submitted the story to the contractor for review and approval, I was asked if I had used ChatGPT for the article. Say what?! As it turns out, I had been working— via email—with a PR intern and he used ChatGPT pretty extensively. Turns out, the two sentences I included in the text to describe their own company were, in fact, auto generated. But why? Easy and efficient means of collecting information, I guess.

But there is much more to AI than just chat bots—such as data collection and machine learning, for example. There are some in the industry that follow AI much more closely than me, and there is a growing consensus is that we need to embrace AI. “The crux of Artificial Intelligence is that it is already here, so we have two choices: either get shaped by it or we shape it,” says Anmol Bhasin, Chief Technical Officer, ServiceTitan.

John Mullen, industry subject matter expert, has an optimistic take on AI and how it will shape our industry over the next decade or two. “My philosophy on AI remains malleable on a personal front always, as we continue into this new era of AI being everywhere. With that said, it’s clear that plumbing and mechanical work has been having a revolutionary moment with the advancement of technology in construction materials and tools. These next few years will undoubtably keep the skilled trades trending in the right direction as an opportunity to work, learn and live well,” says Mullen.

There are so many opportunities in our industry for advancement with artificial general intelligence (AGI) and GPT chat bots that assist with dataset specific outputs, continues Mullen. “I’m excited for the organization of efforts, focused on the sustainability of our planet and how it can help us build resilience. Quality data is what makes artificial intelligence impactful, and if harnessed correctly, we could make transformative changes and provide an undeniable increase to the quality of our daily lives.”

Yet, is there any oversight on AI? Last October, the White House released a statement on AI which reads, “Artificial intelligence (AI) holds extraordinary potential for both promise and peril. Responsible AI use has the potential to help solve urgent challenges while making our world more prosperous, productive, innovative, and secure. At the same time, irresponsible use could exacerbate societal harms such as fraud, discrimination, bias, and disinformation; displace and disempower workers; stifle competition; and pose risks to national security. Harnessing AI for good and realizing its myriad benefits requires mitigating its substantial risks.

“The Federal Government will enforce existing consumer protection laws and principles and enact appropriate safeguards against fraud, unintended bias, discrimination, infringements on privacy, and other harms from AI. Such protections are especially important in critical fields like healthcare, financial services, education, housing, law, and transportation, where mistakes by or misuse of AI could harm patients, cost consumers or small businesses, or jeopardize safety or rights.  At the same time, the Administration will promote responsible uses of AI that protect consumers, raise the quality of goods and services, lower their prices, or expand selection and availability.”

John Mullen is continuously seeking out the new trends and technology. Here, John is checking out the latest in VR tech.

However, as of right now, says Mullen, we are in the organize phase, where data is being collected and integrated without a real unbiased vetting of knowledge. This is an era that will be ripe with scams and schemes but before long, we will be in the most optimized and transparent version. Most will utilize artificial intelligence and scale their needs to help assist with the things we no longer have the passions to pursue. “It looks to me like skilled trade work is going to get very technical over the next few years and that is super exciting. Having a general understanding of how to use and prompt AI models as a service provider will become a standard skillset for the workforce. This becomes truer each day, as contractors build buildings for the most technical end users the world has ever seen,” says Mullen.

According to Bhasin, data is an industrial revolution in and of itself, and AI is taking it one more level forward. “Over the last year, year and a half AI has leveled the playing field because the barrier to entry has suddenly and dramatically dropped.

For example, “For Service Titan’s Titan Intelligence, there were peculiar scenarios where we saw opportunities for optimization and started putting algorithms there to facilitate outcomes for our customers. If you bridge that and collect all of these features together, the results are best practices for the contractors using AI algorithmically to facilitate those specific outcomes of top line revenue efficiency and effectiveness,” says Bhasin.

Mullen says that we must stay vigilant about AI during the initial programming. “This technology was developed to outpace humans in all the tasks and protocols we, the collective society, have established. This will undoubtably lead to the emergence of information about how and why we do the things we do, leading to gained efficiencies and greater understanding of general principles,” says Mullen.

But what about those legitimate concerns with AI such as data breaches, social manipulation, fake news, etc.? “Much of this will be resolved through exposure and transparency,” says Mullen. “I think we are going to learn a lot about ourselves over the next few decades and with the help of AI, we’ll have an easier time determining good from bad with analysis and visualizations of data.”

Bhasin says that world of hackers is an enemy that is never going away so you have to keep up on your game. An ironic twist, “All of this AI stuff we’re talking about; it is the similar set of technologies we are placing against for safeguarding from nefarious actors.” It’s like using venom from the snake as an antidote for a snake bite, right?

And what is a deepfake, and is it concerning? Deepfakes are very concerning, says Mullen. As part of the general terms and agreements, being on social media means you have donated your personal information to a large language model (LLM) that has more than enough audio and visual content to create a digital avatar of you, in most cases. This part of the topic can get quite controversial when discussing digital verification, but truly there may not be another way to ensure we have our own voice. “Only through verification, can we ensure our privacy and sovereignty on the internet. There are still federal policies being discussed surrounding these “growing pains” and I follow them keenly to remain aware and able to help identify fraud,” says Mullen.

Will AI be replacing real, tangible jobs anytime soon? Mullen tends to be bullish on AI’s ability to create new roles and purpose. “Certainly, in the short term, work is going to increase for the skilled trades as we build more intelligent facilities and infrastructure for a new digital landscape.”

Mullen believes that AI and robotics together will help us build a prosperous future, full of abundance that for the first time in our history, gets shared for the betterment of people. When we can create locally the needs of our communities, our sustainability increases drastically. “It’s an interesting experiment that is being played out in real time that will inevitably have some bugs but again, I’m an optimist,” says Mullen.

In the end, says Mullen, it seems that having respect for how it works, why now and what it could become, seems like a smart move. There is no putting this genie back in its bottle. Over the next few years innovation competition is going to be at an all-time high and periods like these can leave a giant mark on our timelines.

“I hope to see our industry and tradespeople use these new technologies and create new ones with it, as it was intended. Creating and building the world around us is something we will continue to do forever. Considering this another tool of the trades can preserve the craft and ‘protect the health of the nation,’” says Mullen.

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.

If you run a service contracting business, you might be happy with how things are going. You might think everything is fine and there are no changes you have to make. However, is this really the case? In reality, there are usually all kinds of things you can do to make your business better, even if it seems to be going well right now. The thing to remember is that there is always room for improvement. To help you get an idea of the kinds of things you might want to improve in your service contracting business, we’ve put together a list of a few ideas. Read on to find out more. 

Modern Payment Options 

How do your customers pay you right now? It might be that although the payment methods you have right now are technically fine, other, more modern methods might be better. Being paid by cash can be problematic as you might lose it or spend it before you can put it back into the business. Cheques are an issue as they might not clear, which means you have extra work to do to get paid again. Bank transfers take time to set up, and your customers might forget. 

By adding different methods like card payments, you make it easier for people to pay you instantly, and they can choose the card type that works best for them. This might even entice more people to use your business because they know they can pay for the service easily. The key thing to remember is to pick the right card processing software – take your time making sure you have something that works well for you. After all, credit card processing for CBD businesses might be different from credit card processing for plumbing businesses, and you want to help your customers, not hinder them

Embracing Technology 

Plumbing is a service that has been around for a long time, and many of the methods used today are the same as they have always been. So if you work in this way, it can be hard to think of making any changes. However, it might be that you can become more efficient and cost-effective (for you and your customers) if you start to embrace technology more and use it to your advantage. 

Following on from the point above, you can use technology to make invoicing and accounting easier, for example. Or you can use different technology to help with certain plumbing tasks. You could even create an app for your customers so they can book appointments easily and learn how to do some plumbing jobs themselves (boosting their trust in you and saving you time to work on larger jobs). You don’t have to change everything – some older ways of doing things are better and could even be your USP – but changing what you can and embracing technology will definitely update and improve your business. 

Better Marketing 

A lot of the time, plumbing businesses rely on word of mouth and positive reviews and recommendations to get more business. They will do a good job for a customer who will then go on to recommend the company to friends and family, and so it keeps going. 

However, if you want to update your plumbing business and do more, you’ll need to think about better marketing methods. Word of mouth is excellent as it doesn’t cost anything, but it’s wise to invest some money in marketing to enhance your reach. Do some market research to determine who your target market is and create a marketing campaign that is tailored to them and used in the places they spend time, whether that’s social media or somewhere in the ‘real world’. 

Every business is going to be different, so it might be that social media is the right place to advertise, but it could be that you need to invest in print advertising, radio spots, or even billboards. The more you put into your marketing, the more you’ll get out of it, but do remember to have a good plan in place first so you don’t overspend and you remember to test that each marketing method is really working. 

More Training 

Plumbing is not an easy sector to work in and it takes a lot of effort and studying to get to a point where you can be qualified and do good work. However, it’s crucial that you don’t assume you know everything once you get your qualification – there are always new ideas coming out. 

This is why you need to keep up with your training and do refresher courses from time to time. It’s also wise to watch vlogs, read blogs, and go  to industry conferences so you can always be up to date with new ways of working. 

A part of Emerson’s professional tools portfolio, Greenlee hosted a day of hands-on STEM learning

Greenlee®, part of Emerson’s professional tools portfolio, hosted its second “We Love STEM Day” on July 15th for 13 students in grades three through eight. The event was designed to support local schools and engage students in science, technology, engineering and mathematics (STEM). It also helped Greenlee demonstrate the role these vital subjects play in manufacturing.

“Our second annual ‘We Love STEM Day’ was a success in encouraging a love of learning STEM subjects in the next generation of creators, innovators and inventors,” said Jennifer Hoang, event chair of Greenlee’s “We Love STEM Day” for Emerson. “The excitement and energy students had for learning about STEM and the way it is used in the work we do was inspiring.”

Students participated in a variety of hands-on activities that strengthened their problem-solving skills, including Lego® maze coding, building towers out of pasta, egg drop competitions and hydraulic claw building.

Greenlee is a proud supporter of local programs and education-based initiatives throughout Winnebago County where Greenlee is based, including Northern Illinois University’s STEMfest and Academy Expo. Greenlee also participates in National Manufacturing Day, where local high school students are invited to tour the Greenlee headquarters and learn about manufacturing careers. Greenlee additionally partners with current and future trade professionals by regularly donating its products for educational purposes.

Emerson’s professional tools business includes Greenlee, as well as the RIDGID® and Klauke® brands and 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.

Greenlee®, RIDGID®, and Klauke® are trademarks of Emerson or its subsidiaries. All other trademarks belong to their respective holders.