SEPTEMBER/ OCTOBER 2022 SERVING CONTRACTORS IN THE HVACR INDUSTRY Fire Prevention Starts with You What To DoWhen OSHA Knocks LET’S GET POLITICAL A LOOK AT HVACR AND THE MIDTERM ELECTIONS
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4 CEO’s Column 5 Chairman’s Column 6 Now@ACCA 10 Committee Crunch 12 Business Buzz 14 Safe@Work 16 Service Savvy 28 Tech Tips 30 Legal Tools 34 Training Tip 36 Corporate Partner Spotlight – Resideo 38 Tech Challenge & Ad Index 34 6 contents Volume 11, Issue 5 / Published in September 2022 PUBLISHER Melissa Broadus melissa.broadus@acca.org EDITOR Natalie D’Apolito natalie.d'apolito@acca.org AD SALES Tom Murphy tom.murphy@acca.org 703-824-8875 ACCA NOWASSISTANT Heather Donaldson accanowsupport@acca.org ART DIRECTOR Lynn Riley Lynn Riley Design www.lynnrileydesign.com BLOGGERS & COLUMNISTS Steve Coscia, Brooke Duncan, Tom Grandy, Barton James, Wes Davis, David Bixby, Matt Akins, Ed Janowiak, Frank Besednjak, Katie KuehnerHebert, Melissa Broadus ACCA Now (USPS 9910) is published bi-monthly for $29 per year by ACCA, 1330 Braddock Place, Suite 350, Alexandria, VA 22314. Periodicals postage paid at Arlington, VA, and at additional mailing offices. ©2022 by ACCA Association, Inc. All Rights Reserved. Postmaster send address changes to: ACCA Now 1330 Braddock Place, Suite 350, Alexandria, VA 22314 ACCA Now is published by the Air Conditioning Contractors of America. www.acca.org Air Conditioning Contractors of America ® Midterm elections take place in November, which means now is the time to familiarize yourself with the current political landscape and its effects on the industry. Continue reading for an inside look at HVACR and the Midterm Elections. 20 16 6 LET’S GET POLITICAL A Look at HVACR and the Midterm Elections
Train Your Team with ACCA C EO ’ S COLUMN Barton James is President and CEO of ACCA. He can be reached at barton. james@acca.org. AS THE COOLING SEASON comes to a close, ACCA’s in-person, live virtual, and on-demand training series return. These courses provide everyone, even the most seasoned professionals, with the skills needed to complete a quality installation and best serve cus- tomers. From reviewing the basics to perfecting soft skills, ACCA has a course for every aspect of HVACR. Our in-person courses provide a hands-on setting for industry education. Residential HVAC System Design is a three-day course covering Residential Design for Quality Installation. Participants of the class receive a five-year ACCA Certificate and ACCA maintains a record of their successful completion. Successful completion of this course will also pro- vide you with 24 NATE CEUs, 12.5 BPI CEUs, 25 RSES CEUs for CM (Certificate Member), or a CMS (Cer- tificate Members Specialist) designation. Practical HVAC – Beyond the Box Diagnostics is for the team ready to ensure the whole system delivers the comfort your clients want. Learn how to improve your ability to install and commission systems, and how to quickly identify key issues that steal com- fort. Finally, ACCA’s Airflow Measurement Class covers correct airflow, methods of measuring air- flow, and more. Upcoming live virtual courses include Design Essentials – Reviewing HVACR Basics, RightTek Training, Tech Rehab – Kicking Bad Habits, and Con- sistency is Key. Design Essentials – Reviewing HVACR Basics covers Manual J,® Manual D,® Manual S,® and Heating Basics. Taught by Ed Janowiak, ACCA manager of HVACR design education, these courses provide an opportunity to expand your knowledge of the basics so you can confidently work in the field. RightTek Training is another live virtual series that covers HVACR basics, including HVAC for Office and Sales Staff, Residential Airflow and Zoning, and Residential HVAC System Design. Taught by Anthony Maynor and Bill Timberlake, P.E., these courses are a comprehensive way to learn about HVACR no matter what your role is. While Design Essentials and RightTek cover the basics of HVACR, Tech Rehab, Kicking Bad Habits offers tips on how to correct bad habits that tech- nicians perform in the field. Taught by Matt Akins, ACCA manager of HVACR education, upcoming course topics include Water Damage and Prevention, Total Capacity and Technical and Sales, IAQ Benefits and How to Sell to Customers, System Performance Evaluation, and the ACCA Duct Wheel. Finally, Consistency is Key, also taught by Matt Akins, helps you learn how to get your managers to understand the importance of standardization, doc- umentation, and consistency. Consistently following system and safety inspection checklists reduces frequent customer callbacks and complaints and makes you money. Visit www.acca.org/education/events to register for these courses. ACCA’s on-demand training and the ComfortU® training center provide 24/7 education. Follow our on-demand Qtech series tolearn topics such as Elec- tricity for the HVAC Contractor, Duct Design Basics, Duct Diagnostics and Repair, Hydronic Heating, A2L Refrigerants, and more. ACCA also offers Residential and Commercial HVAC Online Certificate Programs and EPA 608 Certification Test Prep. For even more industry learning, ACCA’s HVAC Code Essentials, an ICC CEU-approved course, teaches the basics of HVAC design as required in Sections M1401.3 and M1601.1. The three-part course covers residential load calculations (ACCA Manual J), residential equipment sizing (ACCA Manual S), and residential duct system design (ACCA Manual D). Visit www.acca.org/education/on-demand-train- ing to access these courses. ACCA wishes you the best of luck in finishing out the busy season. We look forward to supporting you in any way we can as the seasons change. SEPTEMBER/OCTOBER 2022 4
WHEN YOU GET INVOLVED WITH a trade organi- zation like ACCA, you typically come in strictly with a perspective solely focused on your own business. But ACCA embraces a much different philosophy that encompasses a bigger picture, with resources to help you round out your understanding of an HVACR business and the industry. As Board Chair, we’re continuing to expand our capabilities as a trade organization that supports all different sized companies, even the smallest of ones, instead of only providing “one-size-fits-all” resources. One terrific resource for members is the ability to participate in a Management Information Exchange (MIX) Group®. These are close groups of people who agree to work together and share openly about their business. It’s a more intimate way to support each other’s businesses by learning from each other about what works and what doesn’t. ACCA has a great new video on the MIX Group page, featuring members who talk about the numer- ous benefits of networking with colleagues in their MIX Groups. It’s worth checking out! Belonging to a MIX Group helps you feel like it’s much more than just “you” – it’s us. MIX Groups are comprised of non-competing ACCA contractor members. WhenMIX Groups meet, the goal is to help every company improve through honest and frank counsel from your non-competing peers. ACCA MIX Groups typically meet twice each year and travel to each participant’s location to review and provide feedback on sales, operations, policies, advertising, staff, strategy, facilities, and more. Exclusively for ACCA contractor members, most MIX Groups consist of eight to 10 companies. All par- ticipants must be non-competing and must be ACCA members in good standing. Among the existing MIX Groups, some consist of residential contractors only, others consist of only commercial contractors, and some are a mixture of both. Most often, MIX Groups are comprised of contractors whose companies are about the same size, based on annual sales volume. Besides your annual ACCA National membership dues, the cost of being involved in aMIX Group can vary greatly depending on where participants are located and how often they meet. Expenses can include travel, hotel, meals, social events, and facilitator fees if your group hires someone to facilitate meetings. If you’re interested, complete the company profile section at www.acca.org/members/mix and submit it to Matt Grizzard, ACCA’s director of mem- bership and advocacy. Then your anonymized company profile information will be posted to the ACCA MIX Group Leaders Forum. When a group expresses interest in your candidacy, your full profile will be provided to them. You will be notified by ACCA staff that a group has expressed interest and that some- one from the group will contact you. At that point, it will be up to you and the group to determine whether there’s a good fit. You are welcome to start your own ACCA MIX Group and recruit ACCA members of any size and profile. The appendix to the document found at www.acca.org/members/mix includes an ACCA MIX Group Start Up sample document to guide you as you work with other ACCA members to create a group. ACCA staff can provide some assistance in this process. Additionally, ACCA can recommend a facilitator to help get your group started. If you have questions about the program and how to become involved, email Matt Grizzard at matt. grizzard@acca.org. Do you belong to an existing MIX Group and are you looking for a guest speaker for your next meet- ing? ACCA’s corporate partners are a good resource! They will visit with your group to provide expert advice and guidance, facilitate focus group events, and provide exclusive product demos or thoughts on the future of our industry. Feel free to reach out to Matt Grizzard for more information. ACCA MIX Groups® Build Business Value CHA I RMAN ’ S COLUMN By Keith Paton, Vice President of Service at Ivey Mechanical Co. based in Kosciusko, Mississippi SEPTEMBER/OCTOBER 2022 5
NOW @ ACCA > > > > > ACCA PRESIDENT MEETS WITH ARKANSAS DEPT. OF LABOR SECRETARY AND CHIEF OF STAFF By Natalie D’Apolito Barton James, ACCA president and CEO, and Tom Hunt, executive director of Arkansas HVACR Association, an ACCA Allied Contracting Organization (ACO), met with Daryl Bassett, Arkansas Department of Labor cabinet secretary, and Steve Guntharp, Arskansas Department of Labor chief of staff, on August 19, 2022. The purpose of the meeting was to discuss Arkansas’ recent HVACR continuing education requirement law. The law, which was approved on April 28, 2021, concerned the powers and duties of the Arkansas HVACR Licensing Board. The bill established by board rule a maximum of four hours of continuing education per year if the board determines that a specific class of license requires continuing education. The Arkansas Department of Labor and Licensing provides consultation to local public health officials, architects, engineers, and other construction-related offices regarding HVACR. They also provide testing for the HVACR contractors and the issuance of various types of HVACR licenses and publish codes, rules, and regulations of licensing. Highlights of the meeting include talks about tweaking the current higher education needs to focus on the trades and changing the current funding formula for higher education to focus more on in-demand jobs like those in HVACR. The group also discussed the importance of having a quality workforce. The Cabinet Secretary expressed his desire for HVACR to be industry-driven and discussed the current manufacturing challenges facing the industry. He also shared his frustration with the lack of industry support from Arkansas manufacturers. “The HVACR industry has a considerable shortage of skilled workers, and the problem is accelerating due to constraints within the training pipeline, quality, and relevance of what is being taught, and record-low workforce participation,” said Barton James, ACCA president and CEO. “This challenge is the number one constraint for growth for ACCA’s members. ACCA is committed to leveling the playing field and leveraging our relationships to ensure that indemand careers like HVACR have strong support from state agencies and elected officials. It is critical that each state have a strong licensing and continuing education requirement that rewards good contractors and eliminates unfair competition. With seventeen states in our country not having a license requirement and many existing ones under attack, ACCA is pleased to partner with ACO friends to build stronger partnerships with officials like Secretary Bassett that are on the front lines.” ACCA Fights Against Tax Increases for Small Businesses The Air Conditioning Contractors of America (ACCA) joined 192 trade associations in opposing Congress’s latest efforts to raise taxes on small, individually, and family-owned businesses as part of the effort to enact a reconciliation bill in 2022. The letter, signed by ACCA and numerous other trade associations, urges Congress to reject two proposed tax increases that would fall entirely on small businesses, like many ACCA member companies. The first increase would expand the 3.8% Net Investment Income Tax (NIIT) to individuals and families who actively participate in their business. The second would limit the ability of small businesses to deduct their losses during an economic downturn by expanding and extending the “excess business loss limitation” for “noncorporate taxpayers.” “These increases will do nothing but harm ACCA members that are small, individually, and familyowned businesses, as well as many others in the HVACR industry,” said Barton James, ACCA president and CEO. “ACCA will do everything we can to prevent these unfair tax increases and protect these essential businesses that are responsible for keeping our economy moving.” SEPTEMBER/OCTOBER 2022 6
NOW @ ACCA The Air Conditioning Contractors of America (ACCA) is sad to announce the passing of ACCA past Chairman, Mike Callahan, president of Callahan Roach & Garofolo, Inc. on July 26, 2022. Callahan was an active HVACR industry champion, working both on the state and national level to fight for contractors. He, along with six other contractors in Ohio, came together to form what is now known as the Air Conditioning Contractors of Ohio (ACCO) over concerns about mechanics lien laws. He was the first elected leader of the group in 1977 and through their efforts defeated the law. On the national level Callahan served on ACCA’s Board of Directors in the 1980s and as ACCA Chairman of the Board in 1988. After his time on ACCA’s Board of Directors, Callahan founded Callahan Roach & Associates with Mike Hajduk and introduced the concept of flat rate pricing to the HVACR industry. Over the years this concept revolutionized how contractors sold their services and became more profitable. Along with the flat rate pricing program, Callahan was a business coach for many contracting companies across the United States. His generosity did not end within the industry. For the past two years he volunteered for Meals-on-Wheels and the ACS’s Road to Recovery, providing transportation to cancer treatment centers for patients in need.“ ACCA is saddened by the loss of such a profound member of our community,” said Barton James, ACCA president and CEO. “Mr. Callahan was a champion for contractors not only on the national level, but also on the state and local levels. He walked the walk and talked the talk when it came to fighting for what was in the best interest of contractors. Losing such a significant force leaves a hole in our industry that will not quickly be filled.” Services for Callahan are August 13, 2022, at Resurrection Cemetery in Columbus, Ohio. The family asks that in lieu of flowers, please consider donations in Callahan’s name to either Empath Suncoast (SuncoastHospice.org) or The James Cancer Hospital (cancer.osu.edu). ACCA ANNOUNCES PAST CHAIRMAN, MIKE CALLAHAN, PASSED AWAY > > > > > GOLD MEMBERS TAKE TRAINING TO THE NEXT LEVEL By Sean Robertson, ACCA vice president of membership and business operations This year, ACCA launched a new membership structure that offers its most engaged members a more comprehensive membership experience and enhanced recognition for their greater overall investment in ACCA’s mission. So far, 24 contractors have chosen Silver Membership, and 10 contractors with 99 total locations have invested in Gold Membership. Each tier delivers deeper discounts, plus half your dues back in ACCA Bucks, good for anything ACCA sells, making it effortless to get your team members the quality training they need. One of the first Gold members was Holtzople Heating and Air Conditioning of Emmitsburg, MD. They used their Gold discount and ACCA Bucks to bring ACCA’s Manager of HVAC Design Education, Ed Janowiak, to their shop for three days of private residential design training. “Ed’s training brought our entire team to a higher level of technical excellence, helping every one of our field personnel understand airflow much better. Our technicians have been able to recognize ducting problems quickly, allowing us to be more profitable on these types of projects, by offering the correct fixes immediately,” said Jerred Holtzople, owner, Holtzople Heating and Air Conditioning. “Between our ACCA Bucksand Gold discount, we saved more than the cost of our upgrade right off the bat, and we’ll enjoy the enhanced benefits and recognition of Gold status for the entire year.” Another benefit of Gold membership is unlimited access to on-demand training for your entire team – a great value considering that individual courses can cost as much as $495. “In just our first four months as Gold members, our team took 29 online courses that otherwise would have cost us more than $3,500,” said Tonya Jonas, general manager, Jonas Energy Solutions in Lower Lake, CA. “I know we could go elsewhere for online training, but we’re proud that our investment in ACCA's high quality training also supports quality representation for contractors like us.” “We all know that quality training can help reduce callbacks, reduce liability, and increase average ticket size, but it’s hard to find the time, especially with the hassle of filing an expense report for each course. Gold Membership makes it easy, like a maintenance plan for my business,” said ACCA past chair, Brian Stack, president of Stack Heating, Cooling, and Electric. Learn more at www.acca.org/upgrade. ACCA’s Ed Janowiak, ACCA manager of HVAC design education, delivers private training for the Holtzople Heating and Air Conditioning team. SEPTEMBER/OCTOBER 2022 8
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ACCA’sMember Services Committee Profile ACCA has five committees that help the team plan, develop, and deliver programs and services that ACCA members want and need to grow and strengthen their businesses. The committees are: Events; Member Services; Membership; Part- ners; and Products. Over the next five issues of ACCA Now magazine, I will highlight each of these committees and share how you can get involved with them. In this issue, I’m highlighting ACCA’s Member Services Committee. The purpose of the Member Services Committee is to develop the products and services that ACCA has to offer members through numerous sources. This includes internet sales, online training, training and education downloads, and anything else that provides value to membership. The committee works in conjunction with other committees to deliver new materi- als and assist with the repackaging of currently offered materials, making them easily accessible. Co-Chairs: Matt Marsiglio, vice president of operations at FLAME Heating, Cooling, Plumbing, and Electrical in Warren, MI Eric Knaak, president of Isaac Heating & Air Conditioning, Inc. in Rochester, NY CommitteeMembers: Tom Jackson, Jackson Systems, LLC, Indianapolis, IN Ben Kelley, CroppMetcalfe Services, Fairfax, VA Eddie McFarlane, Haller Enterprises, Lititz, PA Cody Novini, SoCal Airflow Pros, Rancho Santa Margarita, CA Nate Oland, Federated Insurance, Owatonna, MN Keith Paton, Ivey Mechanical Co., LLC, Kosciusko, MS Jen Pierce, Clay’s Climate Control, LLC, Linwood, NJ When are meetings? The fourth Tuesday of each month at 1:00 pm eastern. Upcoming Meetings: September 27, 2022 October 25, 2022 November 22,2022 December 20, 2022 January 24, 2023 February 28, 2023 April 2023 – At the 2023 ACCA Conference & Expo in New Orleans (date and time TBD) What Hot Topics is This CommitteeWorking On? Over the past year the Member Services Committee worked with staff to bring on new and updated services that are exclu- sively for ACCA members. Of particular note was the launch of CareerPlug. Through ACCA’s partnership with CareerPlug, members receive a free basic CareerPlug account that comes with a branded careers page, pre-built job tem- plates, and a configured hiring process. The built-in evaluation tools help you confidently identify, interview, evaluate, and hire the right person. For greater success, you can upgrade the free account to a paid Pro subscription at an exclusive part- nership rate of $495/year for unlimited job postings to top job boards, including Indeed, ZipRecruiter, GoogleJobs, Facebook Jobs, etc. You’ll also be able to use personality assessments. Learn more about Career- Plug at https://bit.ly/ACCACareerPlug. The committee also helped update ACCA’s Social Media Toolbox to include new engagement posts for each month of the year and posts to help recruit new team members. You can download these free resources at https://bit.ly/ACCASocialMedia. Finally, the committee’s focus on hiring also led to work on diversity, equity, and inclusion (DEI). DEI has become a more prevalent topic in society, and the Member Services Committee took the initiative to help ACCA members better understand the importance of fostering a more diverse, equitable, and inclusive work environment. Through their efforts, they helped ACCA develop three new resources for members: Diversity and Inclusion Guide for Business Owners Tips for Recruiting, Hiring, & Retaining a Diverse Team (video) Create Job Postings that are Sensitive to Diversity and Inclusion (document) More DEI resources are in the works and ACCA members can access these cur- rent free resources here: https://bit.ly/ ACCAWorkforce. HowDo You Get Involved? The Member Services Committee is always looking for new members to provide insight into what members need to be successful. ACCA is always accepting applications for committee members. To apply to be a part of the Member Ser- vices Committee visit www.acca.org/ members/acca-committee-application or email accacommittees@acca.org. Committee Crunch By Melissa Broadus SEPTEMBER/OCTOBER 2022 10
Business Buzz By Tom Grandy Many years ago, a good friend in the industry told me something that I will never forget. He said, “Never abandon what got you to where you are.” That statement can mean a lot of things to different people, but when it comes to being successful in the trades, the meaning is clear. At some point during the journey of building your company, a light bulb went off. You had been working hard for several years with sales increas- ing, but there was something missing in the mix of consistent growth—profit. The company was getting bigger, and profits should have been going up, but they were not. After exploring the reasons for reduced profitability, you came to the realization that you were not charging enough. Since most owners in the trades used to be technicians prior to starting their own businesses, the ques- tion of how much you need to charge per hour to cover the real costs of doing business while generating profit is tough to answer. So, the company owner does some research, talks to other contractors, attends a seminar or two, and reads some books or articles on how to set proper hourly rates. Armed with the needed education, new, profitable rates are calculated based on their company’s unique costs of doing business. Finally, the new rates are instituted, and two amazing things happen. First, most of the customer base doesn’t realize the prices went up, and the volume of complaints you expected to occur did not happen. Second, the new rates produced a consistent profit. Now fast forward a few years. The company has grown and continues to grow. However, it seems harder and harder tomake a profit. The company has put systems into place, excelled in customer service, and invested large amounts of money into market- ing. The staff has attended classes on leadership and teamwork, equipment and vehicles are in great work- ing order, and everyone has bought into the company vision. The only thing missing is profit, again. The process of adjusting hourly rates as things change within the business is key. Any time costs change within the company, whether it’s overhead, the price ofmaterials/parts, the hire of addi- tional employees, etc., it is necessary to change what the company charges per hour to maintain profitability. Take time to review your actual costs of doing business from a cash flowperspective. If costs have changed over the past year, there is a good possibility that your hourly rates need to be adjusted. The company may be the best in the area, the qual- ity of work might be outstanding, and customer rela- tions can be far above your competition. Everything from an operations standpoint might exceed your cus- tomers’ expectations, however, if the company is not priced for a profit, they are going to go out of business sooner rather than later. Tom Grandy is president of Grandy & Associates, producers of the well-known “Business Boot Camp” training series. Back To Square One Never abandon what got you to where you are. SEPTEMBER/OCTOBER 2022 12
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Fire Prevention Starts with You DISCLAIMER This article is for general information only and should not be considered legal or other expert advice. The recommendations herein may help reduce but are not guaranteed to eliminate any or all risk of loss. The recommendations herein are not intended to cover or identify all risk exposures. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. Qualified counsel should be sought with questions specific to your circumstances. © 2021 Federated Mutual Insurance Company. SAFE@WORK By Nate Oland, Senior National Account Executive, Federated Mutual Insurance Company IT CANBE HARD to imagine a catastrophic fire affecting your workplace. But that is exactly what can happen if a blaze begins at your business. However, fires are preventable. Maintaining a culture of risk management, controlling common hazards, and continuously monitoring for fire hazards can go a long way when it comes to stopping fires before they start. Fire Safety at theWorkplace It can’t be overstated how dangerous fires can be, how fast they can spread, and how the damage can have long-term effects. Most importantly, you and other employees could be in serious danger if a fire starts while you are on the job. Remember, the risk management culture at your place of work is only as strong as those following safety examples and adhering to fire prevention programs and policies. Keep in mind that you and your fellow employees have a responsibility to reduce fire risks, just as your supervisors and business owners have a responsibility to offer frequent fire safety training, complete fire hazard assessments, and ensure that all employees understand what to do if a fire occurs. Controlling Common Hazards As always, the three elements that make up a fire — fuel, oxygen, and an ignition source — should be separated. While working, keep an eye out for any potential threats, and act to remedy or report them immediately. Your preventative actions now could have a positive chain reaction in helping to reduce the risk of fire losses. Your workplace likely has copies of their fire prevention programs and emergency action plans available. If they do not, request them. During training, pay attention to common fire risks that may pertain specifically to your workplace. These hazards and more will likely be caught during your company’s fire hazard assessment, but controlling fire hazards is a continuous effort, not something that is a one-and-done fix. Utilize a Checklist Once your company has completed a fire hazard assessment, the next step is to review findings and implement fire protection practices and procedures. This should include a checklist to help keep property, assets, and people safe. Along with basic fire prevention items, your company’s checklist should include a section on fire and life protection systems. As important as eliminating fire risks are, it’s also essential to take preventative action for your evacuation plan before a fire breaks out. Your company may be checking every fire hazard prevention box, but if your evacuation plan isn’t clear, you could run into further dangers. Consider the following: • Does your company conduct regular fire drills? • Are fire extinguishers and sprinkler systems functioning and regularly serviced? • Are exit signs visible and posted in clear, easy-to-see places? As you read through your company’s fire hazard checklist, take note of areas you know that could use improvement, and areas that may be “red flags” that need immediate fixes. Bringing these risks up to a manager or remedying them yourself could be the difference between a successful business and one that faces deadly losses. Federated Insurance® offers a variety of fire prevention plan samples, checklists, and resources. Speak to your local Federated marketing representative today to learn more. SEPTEMBER/OCTOBER 2022 14
Left: Jeffery Wallace Right: Bob McHolland “Safety is the #1 priority and placed ahead of everything – especially production schedules. We have found that by focusing on safety, quality improves as well. Safety is a choice; everyone must make the correct choice because each team member of the company depends on it.” Bob McHolland United Mechanical Corporation | Charlotte, NC Committed to Client Success Our value is measured by your success. It’s our business to protect yours.® Commercial Insurance Property & Casualty | Life & Disability Income | Workers Compensation | Business Succession and Estate Planning | Bonding Federated Mutual Insurance Company and its subsidiaries** | federatedinsurance.com 21.22 Ed. 1/22 *View A.M. Best Rating Guide information at www.ambest.com. **Not licensed in all states. © 2020 Federated Mutual Insurance Company Scan to learn more about what we can offer members. *
One of the best things about my work is travel. Driving across the U.S.A. in my pickup is more fun and personable than taking a plane. The nice people I meet in small towns and big cities renew my faith in our country as a special place. During a recent trek to southwestern states, I was driving east on I-40 after serving Nevada clients. The drive from Las Vegas to Amarillo was uneventful. Things got more interesting as I crossed the Texas border into western Oklahoma. I stopped at a Pilot Travel Center for fuel and coffee. After fueling up, I went inside the Pilot building and stopped in my tracks because there was an old Leon Russell song on their PA. The tune was Tight Rope. I hadn’t heard it in decades. I just stood there mesmerized by the lyrics and quirky rhythm. Then it hit me, Leon Russell is from Oklahoma! Filled with new energy and excite- ment, I created a Leon Russell playlist when I returned to my truck. Leon and coffee kept me going all the way to Tulsa, where I would soon be meeting two HVACR instructor friends, Pat Enochs and Jimmy Hawley. We met at Tulsa’s White River Fish Market and caught up on each other’s lives during a tasty lunch. Our relationships go back many years, during lunch, we discussed the HVACR industry, students’ educational needs, curriculum, textbooks, and Leon Russell. Jimmy Hawley suggestedwe visit Tulsa Tech after lunch so he could introduce me to the new faculty along with this year’s HVACR students. My flexible schedule permitted me to accept Jimmy’s invita- tion, and we were soon at Tulsa Tech. Upon our arrival, there was a class in session, and Jimmy introduced me to the HVACR instructor and the students, some of whom had their copy of my textbook – the HVACR Customer Service Handbook. Within a few seconds, students asked if I’d sign their textbook, and this led to more dialogue and student questions about career opportunities. It wasn’t long before I was teaching a soft skills class about the importance of attitude, per- sonal accountability, being on time, communication, listening, first impressions, critical thinking, and problem-solving. The students asked terrific questions, and this drove us deeper into personal development and career success discus- sions. Much of my instruction is based on the principle that relationship behav- ior is mostly reciprocal. Specifically, we invite the type of behavior that we convey towards others. This reciprocation occurs in a person’s personal life and in their profession. If you convey niceness, you will invite cooperation. When people convey arrogance, they invite commotion. Anger conveyed to another invites retaliation. Conveying a bad attitude is like hurtling darts at the other person. This type of behavior has consequences. After those darts have been thrown, be prepared for the dag- gers that will soon be aimed at you. This common-sense principle, when applied, will enable HVACR professionals to expe- rience less stress, because they’ll never get stressed in the first place. The Tulsa Tech students were fully engaged as they wrote notes about the key points regarding self-control and personal accountability. After the class, it was time to continue my eastbound trek to Tennessee where I would be serving more clients. The long-term relationships we estab- lish with other HVACR industry professionals benefit others in our midst. In my case, the Tulsa Tech students were the benefac- tors of my friendship with Pat Enochs and Jimmy Hawley. And Leon Russell’s music set the stage for a terrific afternoon. How about you? Have your friendships with HVACR professionals spilled over to help others? Send an e-mail to steve@ coscia.com and tell me about it. Steve Coscia, CSP is an industry expert that helps HVACR companies make more money through increased customer retention, improved upselling, and reduced job stress. HVACR Service, Oklahoma, and Leon Russell Service Savvy By Steve Coscia SEPTEMBER/OCTOBER 2022 16
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LET’S GET POLITICAL A LOOK AT HVACR AND THE MIDTERM ELECTIONS By Katie Kuehner-Hebert There’s a lot at stake for the HVACR industry from midterm elections – both in Congress and in statehouses across the country. 21 SEPTEMBER/OCTOBER 2022
ACCA ON THE NATIONAL FRONT The 2022 midterms are crucial as we look to elect all members of the U.S. House of Representatives, 35 U.S. Senators, and 36 Governors across the country. There are also 88 of the country’s 99 state legislative chambers holding their regularly sched- uled elections. This represents 6,166 of the country’s 7,383 state legislative seats. There is a lot at stake. On the federal level, predictions are high that at least the House will be flipped, and it’s a toss-up about how those 35 Senate races will shake out, says Barton James, the association’s president and CEO. A change in the majority rule within Congress could mitigate the Administration’s agenda overreach regardless of the majority. Whatever happens, ACCA is focused on policy development to ensure a biparti- san, pro-small business focus. ACCA is working hard on behalf of its members, both for future bills and legislation that has recently been passed. In particular, the Inflation Reduction Act (IRA), which now needs to be implemented by the respective federal regulatory agencies, James says. One of the largest legislative packages that’s been moved in years, the IRA is all- encompassing, including many aspects related to reducing climate change and electrification, he says. “ACCA opposed the overall legislation because the costs will likely burden small businesses and their employees, and also because there’s an emphasis on prevailing wages that already have been codi- fied that could disadvantage non-union HVACR contractors,” James says. “However, there are some aspects of the leg- islation that are actually really exciting for the HVACR industry. The incentives to transition from fossil fuels to electric, if paired with a focus on proper installa- tion, service, and maintenance, could be a real boost for HVACR contractors. As more ACCA members ease into solar it’s exciting to see the additional incentives that were included.” “It is important to celebrate the HVACR victories. Getting these sorts of provisions into the legislation has been building a case and leveraging the cur- rent political climate. Sadly, that comes with tradeoffs. Washington is truly a game of give and take, and as long as we are effective at working on both sides of the aisle, we can still have meaning- ful wins even in pieces of legislation that are not fully supported. We must remember this: each time the pendulum swings, we end up with extremes as we have now,” he says. “The legislation is SEPTEMBER/OCTOBER 2022 22
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heavily focused on climate change, and there are questions about the timeline of how the implementation or “rule- making” will happen, and how HVACR contractors will be impacted. It is hard not to forget about the real-world chal- lenges with the electric grid—if we’re adding more to the load, will the grid be able to handle it?” “As the implementation of subsequent regulations pertaining to the new law will likely be fast-tracked by the agencies under the Biden Administration, ACCA will work to make sure the regulatory agencies focus on mean- ingful impacts for HVACR contractors, and not overlook the need to focus on installation, service, and maintenance, not just on the equipment,” James says. “Our job is to fight for our members to make sure their needs and concerns are heard,” he says. IRA HVAC highlights include long- term extension and expansion of the renamed Energy Efficient Home Improvement Credit (25C) tax incentive, which is extended for 10 years, limited to 30 percent of the cost of qualified products or equipment, and as a general rule is limited to $1,200 annually. Certain energy property types, such as central air conditioners and natural gas, pro- pane or oil water heaters, furnaces, or hot water boilers, are limited to a maximum credit of $600. Other product types, such as electric and natural gas heat pumps, and identified biomass stoves are limited to $2,000. The new provision provides credit for certain electric panel board replacements or enhancements and allows up to $150 for energy audits. In addition, the legislation includes an electric appliances rebate program for low- and moderate-income customers and provides $500 million in Defense Production Act funding for heat pumps and tax credits for thermal energy storage. An ACCA summary of relevant provisions in the IRA can be found at acca.org. The leaders of two Allied Contracting Organizations give a taste of what’s happening on the state level regarding the midterm elections, and how the results could impact HVACR contractors within their respective states. GEORGIA “Of course, any election is important and has great implications for what we do on the advocacy side,” says Tucker Green, executive director for the Conditioned Air Associ- ation of Georgia. “Candidates have views on issues that can impact our members. They may not be HVACR-specific, but many of the policy ideas ultimately can make it more difficult for our members to do business or they can make it easier for them to operate. Elections certainly have consequences.” In the Peach State, politics has been changing for the last 20 years and there’s starting to be a divide, both on the federal and state levels, he says. That makes elec- tions even more critical, as sometimes there are tight races, and the state Leg- islature and Congressional seats can flip back and forth. “Every time that happens, there’s an impact on our mission and what we do – both good and bad,” Green says. “Government relations is a relationship business. It takes time to invest and build relation- ships, and that itself has a huge impact on us when things flip.” This year there are more than 40 mem- bers in the Georgia Legislature who are leaving, either due to retirement, redis- tricting or they’re seeking higher office —or they’re getting beat in the primaries, he says. “That’s a pretty large change, and that means that we have to build a lot of new relationships,” Green says. “We try to stay in tune with decision makers, making sure they know our perspective —that’s crucial.” In addition, every statewide office is on the ballot, including the Secretary of State, which is uniquely important to the HVACR industry because the posi- tion also oversees professional licensing in the state, both residential and commercial—and the ACO’s members are very supportive of being professionally licensed, he says. “The Governor’s race is also crucial,” Green says. “We’re one of the top states “ACCAWILLWORK TOMAKE SURE THE REGULATORY AGENCIES FOCUS ONMEANINGFUL IMPACTS FOR HVACR CONTRACTORS, AND NOT OVERLOOK THE NEED TO FOCUS ON INSTALLATION, SERVICE, ANDMAINTENANCE, NOT JUST ON THE EQUIPMENT.” —Barton James SEPTEMBER/OCTOBER 2022 24
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to do business—things are booming here, and government policies from the top down have an impact. More jobs and more economic development mean more work opportunities for our members.” Green also serves as the in-house lobbyist on the state level, as well as on the local cities and countries levels. He views government relations as a crucial part of the ACO—“really being the eyes and ears for contractors.” “They are really dedicating themselves to their business and they usu- ally do not have the time to monitor and keep up with regulatory laws and changes in statutes and codes— although all of those things impact their business every day,” he says. That’s why it’s so crucial for the ACO to be a watchdog for things that are going to impact their business, both positively and negatively, Green says. “There’s a saying in Georgia politics —you’re either at the table or on the table,” he says. “We advocate on our members’ behalf, to make sure they are at the table.” OHIO “When it comes to the elections or any- thing legislative, it’s always imperative for our members to get involved, be educated, and get out and vote, whether for or against issues or candidates running for office,” says Rocco Fana, executive director for the Air Conditioning Con- tractors of Ohio. The ACO does not typically endorse candidates, but its leadership does meet with candidates to discuss issues impor- tant to the HVACR industry, Fana says. The ACO then helps members to educate themselves about candidates to deter- mine whose political stances might be hazardous to their business. “The cost of materials and supply chain problems continue to be significant issues to our members,” Fana says. “Getting materials for repair and service work, or to restock inventories is particularly challenging. Schedules are sev- eral months out waiting for materials to come in.” In Ohio, all 99 house seats are up for reelection as well as 17 senate seats, he says. The Legislature has been dealing with gerrymandering issues, making newmaps, and “causing a lot of confusion and heartburn in the state.” “The state Legislature has been dominated by Republicans for the last several years, so there is a lot less legislative action,” Fana says. “The attitude is to stay out of theway of small businesses and let thembe as successful as they can bewithout new taxes or burdensome regulations. It can be hard to explain to members that there’s not a lot happening, at least not business-related.” One thing that the ACO’s members have beenworking on is trying to pass a residential contractor licensing bill and educating state lawmakers about the importance of residential contractor licensing, he says. They share their stories about things that have gone wrong from an unlicensed repair or install, to make it clear why residential contractors need to be licensed. “It’s an ongoing issue that we’ve been fighting for a long time. Our members get frustrated when they don’t see any action,” Fana says. “In their business, they must fix problems immediately, but that doesn’t always happen at the state house and our members have a hard time wrapping their heads around that.” The ACO’s leadership continues to remind members of the importance of getting to know their Congressional delegation and their state legislators and build a relationship with them on a first- name basis, he says. “There will be times they will need to be educated by someone in our industry or someone who is a small businessperson, and our members can be that go-to person for them,” Fana says. “Our mem- bers know the issues and have answers to problems, and they should make it that elected officials will lean on them and call them if an issue pops up.” For more voting information, visit www.acca.org/advocacy/voting. Regardless of who you vote for, voting is extremely important to make your voice heard. If you are not currently registered to vote, have questions about your polling location, or are looking for general voting information, visit www.acca. org/advocacy/voting#!/voting. ENSURE YOUR COUNTS SEPTEMBER/OCTOBER 2022 26
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Tech Tip By Matt Akins Building Consistency Through Invoicing HVAC invoices energize your com- pany’s operations, often creat- ing the separation between a growing net profit and strug- gling to meet monthly payroll. If you want to increase your company’s revenue, reduce liability, and protect your brand’s integrity, this article is for you. It’s Time to Take the First Step The first step toward consistency is with your maintenance and safety inspection operations. Begin with a checklist and add items that are constantly checked during maintenance; include all items that you want to be consistently tested or inspected on a service call. Second, train new technicians to perform maintenance how you expect it to be completed. It is recommended to place a new technician with a trusted technician in the field. That way, you know they are following your company’s standards. Once the new technician can demonstrate they can perform essential tasks correctly, they are ready to work alone. To practice, give your technicians a scenario during a weekly training meet- ing: “You have been dispatched to perform maintenance at Mrs. Jones’ house, on her upstairs air conditioner. She has no com- plaints, knows of no problems, and simply wants the air conditioner inspected before turning it on for the summer.” Have each technician fill out an invoice and inspection list on their own, then among the group, compare them, and provide feedback on what they did well and what they can improve upon in the future. You may even find items that need to be added to the checklist that were not previously there but should have been included. Third, maintenance checklists must be reviewed regularly by a manager or owner. Follow-up is critical. Publicly reward those technicians who follow the system; remem- ber, what gets rewarded gets repeated. Ser- vice invoices should be reviewed every day. If you are on a digital platform, you need to check the notes of every call. The reason I encourage review of documentation is to ensure an action plan is communicated to the client. First, does the invoice tell a story? Does it build the case for why repairs are needed, or does it clearly document that the system is work- ing well, at or near benchmarked measurements? Second, it is difficult to bill or charge clients with poorly written notes on an invoice. This can lead to confusion about what is being provided, affecting whether recommendations are accepted or rejected. This may seem time-consuming, but the rewards are worth the time investment. Documenting an Invoice All of the above further supports getting your staff to document their invoices properly every time to reduce liability and better protect you, your company, and your team. To avoid serious documentation problems, always follow these car- dinal rules: Take time to document accurately, objectively, and thoroughly. Be consistent and write legibly. Capture the customer’s comments, needs, and wants. Conclusion Consistency is one of the essential busi- ness behaviors that you and your team should foster. Now is a great time to start reviewing and coaching how to write invoices. This is a simple thing that can have a significant impact on your busi- ness. Technicians who correctly docu- ment an invoice will maximize their service and maintenance calls. To learn more about improved and con- sistent performance levels, how to reduce callbacks and liabilities, and increasing sales opportunities, consider attending ACCA’s Consistency is Key course. This online virtual course takes a deeper dive into documenting invoices. It guides your training efforts in “what gets measured, gets done.” In addition, it supplies your team with a holistic approach to improved operations. If you are not reviewing your technician’s invoices and safety inspec- tions for consistency every day, you may be having reoccurring encounters with unhappy technicians and clients. Matt Akins is ACCA’s Manager of HVACR Education. He can be reached at matt.akins@acca.org. Begin with a checklist and add items that are constantly checked during maintenance. SEPTEMBER/OCTOBER 2022 28
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