JANUARY/ FEBRUARY2022 SERVING CONTRACTORS IN THE HVACR INDUSTRY WHAT NOW? THE FUTURE OF THE HVACR INDUSTRY POST COVID-19 The Future of HVACR is CLEAN ENERGY The Value of ACTIVE LEARNING in the Trades
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4 CEO’s Column 5 Chairman’s Column 6 Now@ACCA 9 Capitol Insights 10 Business Buzz 11 Mini Feature: The Future is Clean Energy 18 Committee Crunch 19 Service Savvy 20 Safe@Work 22 Tech Tips 23 Training Tip 24 Legal Toolbox & Ad Index 25 Corporate Partner Spotlight – Pearl Certification 26 Tech Challenge 10 19 11 contents Volume 11, Issue 1 / Published in January 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 Jack Rise, Steve Coscia, Brooke Duncan, Tom Grandy, Barton James, Wingel Caburian, Chris Czarnecki, Wes Davis, David Bixby, Matt Akins, Ed Janowiak, Frank Besednjak 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 ® What Now? The Future of the HVACR Industry As we’re nearing the second year of the COVID-19 pandemic, it is no surprise that the American economy has faced a multitude of challenges, with the HVACR industry being no exception. So, what now? In this issue of ACCA Now, we discuss what contractors can do to continue coping with a global pandemic. 14
Starting the Year 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 ONLY NATIONWIDE, non-profit association for HVACR professionals, we are proud to serve more than 3,000 business members, and thousands of individuals by providing networking, education, and advocacy services that support the interests of our members while championing the health of our industry. As we push through the COVID-19 pandemic, we continue to prioritize the success of our contractor members above all else. Over the past year, we have been fighting to ensure that your voices are heard on Capitol Hill and before state legislators, utilities, code officials, and manufacturers. We’d like to share a few of the initiatives ACCA has taken on for the advancement of our indus- try since the beginning of the COVID-19 pandemic. In March of 2020, we worked with the Department of Homeland Security to ensure that our members stay as essential businesses during the pandemic. Through our actions, we were able to issue a nation- wide action alert for the HVACR industry, and as a result sent 21,000 emails and letters to President Trump and every member of congress. Additionally, we urged the Advi- sory Committee on Immunization Practices (ACIP) to grant early vaccine access for HVACR professionals from the beginning of the vaccine’s announcement. We also prioritized refrigerants, regula- tory reform, maintenance, tax deduction, energy efficiency, commercial efficiency programs, taxes, and climate change issues to policy and law makers. Over the past year, ACCA has worked on a handful of bills and policies such as: • Jumpstart Our Businesses by Supporting Students (JOBS) Act (H.R.2037, S.864) • Workforce Innovation and Opportunity Act Reauthorization (WIOA) • Protecting the Rights to Organize (PRO) Act • Main Street Tax Certainty Act (H.R. 1381, S.480) • Incentivize Residential Energy Efficiency Act Additionally, we have been working to keep our workforce strong as labor shortages con- tinue. As your trusted association, we know that the role of skilled labor is vital to promoting proper installation and maintenance of innovative energy efficient equipment. We also know the difficul- ties that comewhen findingworkers with the right skill set. In an effort to help alleviate these problems, we’ve created the ACCA Workforce Development initiative. The initiative provides ACCA members with direction and a variety of online resources to help attract and train students to enter and thrive in the HVACR trade. As we are an ever-changing industry with continuous trends and updates, we also know how valu- able it is to keep your technicians ahead of the game. In addition to the ACCA Workforce Development, we also offer a variety of training and education courses, both virtually and in-person, for all members of the HVACR industry to participate in, including: • Practical HVAC – HVAC Training for Enhancing Your Team’s Performance • Residential HVAC Design for Quality Installation • Tech Rehab • Design Essentials While skilled technicians are an important component to a successful business, we also know the value of networking to a business’ overall growth. To help every company improve through honest and frank counseling fromnon-competing peers, ACCA has devel- oped the MIX Group® Program. In addition to the ACCA MIX Group® Program, ACCA has offers other networking opportunities through multiple events such as: • ACCA Fall Meetings • The 2022 ACCA Conference & Expo • The Solar Forum 2022 Within these events, we not only promote network- ing between our ACCA members, but also recognize their hard work and dedication. During these events, we have awarded countless contractors and individu- als with our prestigious annual honors such as: • ACCA Commercial and Residential Contractor of the Year • ACCA Community Leadership Award • Distinguished Service Award • Federated Insurance ACCA Super S.T.A.R Award • Service Manager of the Year I am grateful for our hardworking and passionate ACCA contractor members, and I look forward to all the possibilities and growth that we can accomplish together. We should be proud of how we have upheld the quality of work during such a challenging time. On behalf of the entire ACCA staff, thank you for choosing us to be your association. Get Recognized by the Industry – Apply for an ACCA Award Today ACCA offers a variety of awards highlighting every aspect of the industry. Visit www.acca. org/members/awards to apply and get the chance to be recognized as the best of the best. Access Resources to Strengthen the HVACRWorkforce Through ACCA ACCA’s Workforce Development initiative provides ACCA members with direction and a variety of online resources to help attract and train students to enter and thrive in the HVACR trade. Visit www. acca.org/members/ industry/workforce today. JANUARY/FEBRUARY 2022 4
WE ALL KNOW that regular maintenance of impor- tant home systems ensures system efficiency and extends equipment life. That’s why we give our customers the whole package with Stack’s HVAC Maintenance Program. It puts tune-ups on autopi- lot and ensures customers have the best possible pricing on services. Likewise, I know that regular training for every part of my teamcan help reduce callbacks and liability, while increasing the average ticket size, but it’s hard to find the time, especially with the inconvenience of filing an expense report to pay for each course. Because of this, I’m excited to get the whole pack- age with ACCA’s new GOLD Membership, which is a part of their new membership tier structure. ACCA’s new membership structure provides the industry with three options for ACCA membership—Bronze, Silver, and Gold. With these new options for membership, I’d like to share how I evaluated the choice between each tier and chose which would work best for my company. SILVER and GOLD membership both make it easier for my team to access ACCA’s on-demand, live virtual, and in-person training and events by giving half my dues back in ACCA Bucks that Stack Heating, Cooling, & Electric can spend on any ACCA training, event, product, or service. The GOLD tier makes training truly effortless with unlimited access to ACCA’s ComfortU® on-demand training. Our company has invested in an in-house instructor and online training from Inter- play Learning, but even with such great tools, basic electricity and A2L refrigerants remain gaps in our curriculum that ACCA’s Qtech courses can fill. More importantly, I can now empower my entire team to take refreshers, fill skill gaps, and earn CEUs in ComfortU® with ease. Of course, we also know that HVAC Main- tenance Program customers are more likely to come back to Stack for all their electrical and system upgrade needs. As ACCA’s Board Chair, I also hope you will hire ACCA to do more for your company. Let’s face it – we’re spoiled for choice when it comes to technical training and business confer- ences in this industry, but only ACCA training also supports ACCA in fighting for contractor priorities. For example, I’m glad to support ACCA’s mission by shifting to in-house 608 exams as an ACCA proctor. Another reason to upgrade is that it’s money we’re already spending. Last year, my company spent about $2,400 at ACCA. That makes SILVER membership ($1,800) an easy decision, but I’ve made the choice to step-up and spend a bit more for GOLD ($5,000). I know I’ll be getting deeper discounts, greater convenience, and exclusive recog- nition opportunities all year long. It’s also a way of giving back to the mission of an organization that has meant so much to the success of our industry and my company. If you’re interested in stepping up as one of ACCA’s first elite members, please contact Matt Grizzard at 703-824-8854 or membership@acca.org to discuss options and set up access for your entire team. On behalf of the entire ACCA board and staff, thank you for allowing us to do more to support you and your business’s growth. A Maintenance Plan for Your Business CHA I RMAN ’ S COLUMN Brian Stack is president of Stack Heating & Cooling in Avon, OH, and ACCA's 2021–2022 Board Chair. Contractor Membership Options JANUARY/FEBRUARY 2022 5
ACCA Fall Meetings Brings IndustryMembers Together Again The Air Conditioning Contractors of America (ACCA) held backto-back fall meetings, the Office & Operations Managers Forum, November 1-2, and the Service Managers Forum, November 2-3, in New Orleans, LA. These events brought together contracting professionals for industry-led educational programs and networking for the first time since 2019. “ACCA’s 2021 Fall Meetings was a great way to invest in ourselves and our team,” said Renee Lucas, LCS Heating and Cooling, LLC owner and event attendee. “We always learn something new to implement into our business from the breakout sessions, but most of all, we find so much value in networking with other contractors. It felt so good to be back in-person at this event.” Both events featured Jacob Schick, One Tribe Foundation CEO, as the keynote speaker. Schick, a USMC Veteran, shared valuable insight on maximizing the potential in people from all backgrounds, and his experience dealing with a traumatic brain injury (TBI) and post-traumatic stress disorder (PTSD). “It was truly my honor to speak at ACCA’s Fall Meetings this year,” said Schick. “I look forward to supporting this amazing group of Patriots and the essential work they do in the future.” Additional sessions included: Shining a Positive Light on HVAC as a Career with Shelly Matter of HB McClure. Workforce Development: From Homelessness to Hope with Ishan Heru of Community Connections. Renee’s Top 10 for Building Strong Teams Through Communication with Renee Lucas of LCS Heating and Cooling, LLC. Trust Sucks with Nick Espinosa of Security Fanatics & BSSi2 LLC. ACCA also presented its Service Manager of the Year Award, sponsored by XOi Technologies, to Michael Barone of Encon Mechanical in Ocean Township, NJ. “We had a wonderful turnout for our first in-person industry event in two years,” said Barton James, ACCA president and CEO. “The insights shared by speakers during both forums will help shape the future of our industry, and the camaraderie shown by those who attended made this one of our best events yet.” ACCA’s Fall Meetings were sponsored by; Adrian Steel, AIG, Arkema, Inc., Aspen Refrigerants, Carrier, Chemours, CompanyCam, Daikin, Data-Basics, Inc., Dell Technologies, Emerson Climate Technologies, Federated Insurance, FieldEdge, FTL Finance, Fujitsu, Goodman, High Level Marketing, Home & Local Services, HoneyNOW @ ACCA We always learn something new to implement into our business from the breakout sessions, but most of all, we find so much value in networking with other contractors. It felt so good to be back in-person at this event. — RENEE LUCAS, LCS HEATING AND COOLING, LLC ACCA MOURNS THE LOSS OF JACK RISE ACCA is saddened to share that Jack Rise, ACCA Educational Program Instructor and former ACCA Now contributor, has passed away. Rise was a certified member of the Refrigeration Service Engineers Society and had 36 years of industry experience, having worked as both a contractor and distributor of HVAC products. As an ACCA/EPIC certified instructor, Rise shared his vast industry knowledge with countless students through ACCA's residential and commercial design manuals, on-demand and live-virtual courses, and ACCA’s nationally recognized industry standards. He cared deeply about the industry and emphasized that contractors must have a strong and unified voice representing them on Capitol Hill, and underscored this by being a toplevel supporter of ACCA advocacy programs. Rise’s success stemmed from his ability to share from his personal experiences as a technician and contractor. He truly cared about advancing the industry and had a unique teaching style that was adaptable and relatable. He will be remembered as a dedicated contractor and champion of ACCA, whose positivity, generosity, and kindness touched an entire industry. Our deepest condolences are with Rise's family and friends. He will be greatly missed. > > > > > JANUARY/FEBRUARY 2022 6
well, Inside the Blueprint, Interplay Learning, Jackson Systems, JCI/York, Mitek-Wrightsoft, Mitsubishi, Nexa, Nortek, Online Access, Owens Corning, Pearl Certification, Resideo, Rheem, Rival Digital, RUUD, RYNO Strategic Solutions, Sawin Service Automation, Schedule Engine, Scorpion, Service Factor, ServiceTitan, To The Point Home Services Podcast, Trane, Weave, Women in HVACR, and XOi. ACCA’s next contractor events are The Solar Forum 2022, in partnership with Pearl Certification, January 24-25 at the Crowne Plaza in Phoenix, AZ, and ACCA’s 2022 Annual Conference & Expo, March 28-30 at the St. Louis Station in St. Louis, MO. THE SOLAR FORUM: THE NATION’S FIRST HVAC & SOLAR EVENT PRESENTED BY ACCA AND PEARL CERTIFICATION, SPONSORED BY MOSAIC Helping elite residential HVAC contractors stay ahead of the game in the rapidly evolving home services industry. The Air Conditioning Contractors of America (ACCA), the only nationwide non-profit association for HVACR professionals, indoor environment, and building performance systems, has teamed up with Pearl Certification, a national provider of third-party certifications for high-performing homes, to present The Solar Forum - the nation’s first-ever event to specifically address the challenges and opportunities that HVAC contractors face from the rapid adoption of solar, storage, and connected home devices. The event takes place, November 14–15, 2022, at the Crowne Plaza, Phoenix, AZ. At The Solar Forum, HVAC contractors will learn strategies to expand into other home services like demand response systems, EV chargers, and home electrical upgrades. Contractors will also learn how homes with solar and batteries can impact the design and sales process and drive adoption of higher-efficiency heating and cooling equipment. New refrigerants and a push to electrify heating will lead to more system changeouts. Increased adoption of variable speed compressors, whole-house ventilation systems, and other IAQ products, along with smart thermostats and other new technologies, add to the complexity of HVAC work — even as designers and technicians are in short supply. Sessions include: HVAC, Solar, & SMART Technologies Alternative Business Models for HVAC & Solar Contractors Are Your Clients Richer When You Leave Their Home? Are You Taking Advantage of Legislative Dollars that are Available to You for Renewable Energy? And more! “For HVAC and solar contractors, past strategies for success can no longer predict future good fortune,” said Barton James, president and CEO of ACCA. “The quicker change occurs, the more likely the old ways of doing business will fail.” “For contractors who want to stay ahead of the curve, it’s vital that they understand the intersection of efficient HVAC and solar. When it comes to generating leads and revenue from new lines of business, few opportunities are as rich as the convergence between these two home improvements.” said Cynthia Adams, CEO of Pearl Certification. “Changing consumer preferences (and limited pocketbooks) will reward contractors who understand, communicate, and deliver lifetime value to their homeowner customers,” said Casey Murphy, vice president of Customer Solutions at Pearl Certification and The Solar Forum’s Education Director. “Likewise, contractors who understand how homes create, distribute, and use energy will be best positioned to succeed in the future.” Contractors will find inspiring educational sessions, innovative products and service providers, as well as opportunities to network with contractors who are engaging in HVAC and solar to varying degrees. Together, Pearl and ACCA are leading the charge for elite contractors to futurize their businesses and create a powerful ripple effect in our industry and in the communities we serve — one home, one region, one state at a time. Learn more and register for The Solar Forum 2022. Space is limited: www.acca.org/ solarforum. Register: The Solar Forum 2022 www.acca.org/education/solarforum ACCA’s 2022 Annual Conference & Expo www.accaconference.com View pictures from ACCA 2021 Fall Meetings www.flickr.com/photos/acca/sets/ 72157720127273328 > > > > > JANUARY/FEBRUARY 2022 7
ACCA HIGHLIGHTS EMERSON’S DEDICATION TO CONTRACTOR EXCELLENCE The Air Conditioning Contractors of America (ACCA) highlights Emerson and their longtime commitment to the ACCA Corporate Partner Program of 10 years. The ACCA Corporate Partner Program supports the association’s extraordinary work on behalf of HVACR contractors and the entire indoor environment industry. As an innovative manufacturer, Emerson helps customers in the world’s most essential industries to create a healthier, safer, smarter, and more sustainable world. As a Corporate Partner, Emerson is dedicated to contractor excellence by supporting ACCA and its members. Over the last 10 years, Emerson has been actively involved in ACCA events by participating in manufacturer leadership forums and sponsoring networking opportunities. Emerson recently participated in ACCA’s 2021 Fall Meetings, held November 1-3 in New Orleans, LA. ACCA’s 2021 Fall Meetings was their first in-person event since the ACCA 2019 Fall Meetings, which were held in Dayton, OH. At ACCA’s 2019 Fall Meetings, event attendees had the opportunity to tour the Emerson Helix Innovation Center, a 40,000-square-foot facility focused on providing a collaborative environment for researchers, academia, and industry professionals to develop solutions to industry challenges. Every year, Emerson hosts a party for event attendees at the ACCA Conference & Expo. This year’s 2022 Conference & Expo is in St. Louis, MO, March 28-30. In addition to this year marking 10 years of partnership, it is also the 100th anniversary of Emerson’s Copeland™ brand. In 1986, Emerson acquired Copeland and made significant investments in the development of its flagship scroll technology. The first scroll compressor was introduced under the Copeland brand in 1987, ultimately revolutionizing the air conditioning and refrigeration industries worldwide with the family of compressors known for highly efficient, reliable performance. “Emerson has consistently demonstrated their extraordinary commitment to the hard-working professionals of the HVACR industry by supporting ACCA and its members over the last decade as a corporate partner,” said Barton James, ACCA president and CEO. “ACCA’s partnership with Emerson is truly the epitome of collaboration as we work together to support contractor excellence. We value Emerson’s involvement in improving our industry.” Emerson remains committed to the continuous innovation of Copeland technology – from research and development, design, and engineering, to advanced testing and manufacturing at innovation centers and plant locations across the globe. “At a time when there is increased demand on contractors while they continue to face a labor shortage, support through organizations such as ACCA is paramount,” said Brent Schroeder, group president, HVACR Technologies for Emerson. “When ACCA established its corporate partnership program, we were one of the first to sign on, recognizing the valuable opportunity to extend our resources to help contractors. We truly appreciate the work that ACCA is doing for its members and are proud to be a part of that support.” NOW @ ACCA At a time when there is increased demand on contractors while they continue to face a labor shortage, support through organizations such as ACCA is paramount. — BRENT SCHROEDER, EMERSON ACCA ANNOUNCES 2021 SERVICE MANAGER OF THE YEAR The Air Conditioning Contractors of America (ACCA) announces that Michael Barone of Encon Mechanical in Ocean Township, NJ, has been named ACCA’s 2021 Service Manager of the Year, sponsored by XOi Technologies.“XOi Technologies is proud to present the ACCA 2021 Service Manager of the Year to Michael Barone of Encon Mechanical,” said Aaron Salow, XOi founder and CEO. “Michael was nominated by his peers for his outstanding character, performance, and leadership. As XOi Technologies continues to provide service teams with quality solutions, we are honored to recognize those who go above and beyond for their customers and each technician. Congratulations to Michael and Encon Mechanical for such an outstanding accomplishment.” To view XOi Technologies’ 2021 ACCA Service Manager of the Year video, visit www.youtube. com/watch?v=gRnMBd34lbo. “This is a special moment for me. When I found out that I was nominated, I was honored. When I found out that I had actually won, I was completely humbled,” said Barone. “I want to pay homage to all of the service managers out there, because it encompasses a lot of different professions. Sometimes we’re a lawyer, an editor, a meteorologist, or technical supervisor. A lot of times, we’re a therapist. This award is for all of the service managers out there.” The Service Manager of the Year award was presented to Barone during ACCA’s 2021 Fall Meetings in New Orleans, LA, which took place November 1-3. Though Barone could not attend the meetings inperson, he accepted his award via video, which can be viewed at www.youtube.com/ watch?v=VDRymeIH1BU. “It is important for us to recognize the outstanding and dedicated professionals we have in the field,” said Barton James, ACCA president and CEO. “We received a multitude of wonderful nominations for this award, and Michael has shown that he is truly the best of the best.” “When we put his name into the arena for the award, we were super honored to be a part of it and to be considered,” said David Indursky, Encon Mechanical president. “Michael is really the glue that holds our service group together.” JANUARY/FEBRUARY 2022 8
Capitol Insights By Chris Czarnecki What’s Going on inWashington? COVID-19 VaccineMandates Paused—For Now Earlier this year President Biden issued two vaccinemandates for employers that would affect contractors. The first was a mandate covering federal contractors while the second covered all employers with 100 or more employees. As we expected, these policies were met with challenges in court almost immediately. It was not long before injunctionswere issued in both cases, paus- ing the mandates while they work their way through the courts. We don’t know exactly when these cases will be resolved, but for the time being, employers are not legally required to ensure their employees are vaccinated. Build Back Better What would Build Back Better (BBB) mean for contractors? I’m glad you asked. The House-passed version included several contractor priorities, like the extension and expansion of all major energy efficiency tax incentives, the HOPE4HOMES energy rebate and training program, as well as additional money for HVACR improve- ments in schools. This version also included a change to energy efficiency tax incentives that would require the technicians install- ing equipment to be paid a prevailing wage. Regardless, though, there is roughly $320 billion included in the House passed BBB legislation for energy efficiency improve- ments which would undoubtedly drive business for contractors. Looking ahead, no one knows exactly what the final bill will look like, or how many of those contractor priorities will be included. Moreover, we aren’t exactly sure how this all would be paid for. There have been a number of tax increases discussed, including, but not limited to the follow- ing: limiting the Small Business Deduction (IRS Section 199A), raising the corporate tax rate from 21 percent raising the top income tax rate on individually and family-owned businesses from 37 percent to 39.6 percent, expanding the estate tax’s reach, increasing the top capital-gains tax rate, and imposing the 3.8 percent tax (NIIT, SECA) on all business income earned by S corporations partnerships and LLCs. Other items that lawmakers have considered including in BBB which could raise operating costs for contrac- tors include enacting elements of the Protecting the Right to Organize (PRO) Act, mandating that employers provide paid sick leave and retirement accounts, and establishing a complicated and inflexible new federal-government-run family and medical paid leave program. At the time of writing this, there is no clear path forward for the passage of BBB. Since the House of Representatives passed its $2.2 trillion version of the bill in mid-November, there have been no sub- stantive developments. It now must pass the Senate, where Democrats hold a 50-50 majority with the Vice President’s tie- breaking vote. As such, unanimous party support is needed to pass the bill. Senator Joe Manchin (D-WV) has expressed seri- ous concerns about the price tag of the bill, as well as how it will be paid for. It has been reported that he is not willing to go over $1.5 trillion in total spending on BBB and has shown no signs that he’s willing to move off this number. This means there’s a $700 billion difference between what the House passed, and what the price tag needs to be to have a realistic shot at being made law. Majority Leader Schumer set a target of passing BBB by the end of 2021, though this goal is widely viewed as impossible. A more realistic timeline for passage (or bill death) is the middle of March. ACCA, HARDI, PHCC File Litigation to Overturn Cylinder Ban You might recall that ACCA opposed the EPA’s ban on disposable cylinders for HFC refrigerants. Based on our feedback, the ban was moved from a 2023/2025 implementation schedule to 2025/2027. While this is better than nothing, it’s not what we hoped for. Since then, we’ve partnered with fellow HVACR industry associa- tions HARDI and PHCC to oppose the ban through litigation. The basis for our suit is that the EPA exceeded the authority granted to it under the AIMAct by banning disposable cylinders and implementing an invasive tracking system. Our petition was filed in early December 2021 and will make its way through the courts in 2022. We are hopeful that this burdensome policy will ultimately be overturned. ACCAMeets with CongressmanMike Carey to Discuss Legislative Priorities I had the pleasure of meeting with Congressman Mike Carey (OH-15) and his staff in his D.C. office to discuss issues affect- ing the HVACR industry. Issues discussed include workforce, taxes, the AIM Act, and the EPA’s ban on refillable cylinders. Congressman Carey is the newest member of the House of Representatives. He was sworn into office into office on November 4th, 2021, after winning a special election to fill the seat of Congressman Steve Stivers, who retired to lead the Ohio Chamber of Commerce. Congressman Carey represents Ohio’s 15th Congressional District, which includes a portion of Columbus, in addi- tion to several counties in central Ohio. He serves on the House Budget Committee as well as the Science, Space and Technology Committee. ACCA appreciates Congressman Carey and his staff taking the time to meet and looks forward to working with them on the issues that affect contractors. Chris Czarnecki is ACCA’s Government Relations Representative and Coalitions Manager. He can be reached at chris. czarnecki@acca.org or 703-824-8869. JANUARY/FEBRUARY 2022 9
Business Buzz By Tom Grandy Most people are familiar with the TV show Shark Tank. It features five self-mademulti-millionaires that listen to young entrepre- neurs pitch their products in exchange for receiving funding for their business for a portion of ownership. If a shark makes an offer, and the entrepreneur accepts it, the individual also receives personal guidance from the shark. However, between the individual’s presentation, and the pos- sible acceptance of funds, the process can be brutal. Questions from all the sharks are coming in rapid fire procession. They question everything from how/why they developed the product, to challenging them on their business plans and how they would utilize the requested funds. If you are a business owner, the show can be both entertaining and informative. One specific episode I want to focus on featured two Harvard grads who believed they had created the world’s best under- wear. Their presentation was excellent. Their product was well accepted, and already had amazing sales. When they described their marketing program, it was both unique and effective. What did the bottom-line net profit look like? Again, it was outstanding. They earned an A+ for presenta- tion, products, market- ing and profits. It was seemingly the perfect company for one of the sharks to invest in. Now it was time for the young entrepre- neurs to be questioned by the sharks. It was ugly. Every time one of the sharks asked a question our two “pride- ful” Harvard grads snapped back with responses of how great “they are.” They had the classic, “we are the best” attitude. It came through loud and clear, no matter the question. After the frustrated sharks listened for a while, each one verbally told the two entrepreneurs that they were not willing to invest in their company. Each shark gave a variety of surface reasons for why they were not investing. Finally, the two Harvard grads left the stage without an offer. The sharks then explained, in pri- vate, their real reason for not investing. The unanimous bottom line was clear. The two young entrepreneurs were arrogant and unwilling to listen to anyone’s advice, even when it was coming from men and women who had “been there and done that.” Everyone on the panel of sharks were multi-millionaires. They explained that by being open to suggestions throughout their careers played a big part in why they were so successful. So, what’s the point of all this? The point is that few contractors within the trades industry know it all, especially from the “business” side of their business. Let’s face it. Most company owners used to be a tech- nician, not a businessperson. There is no shame in that statement, it’s simply who we are as an industry. However, armed with that knowledge, I want to strongly encourage you to join an ACCA Management Information Exchange (MIX) Group. ® A MIX Group® is composed of 5-10 contrac- tors that do similar types of work but are in non- competing geographic territories. Contractors in the Group share ideas, advice, and strategies with each other to support the collective suc- cess of the industry. Like being on Shark Tank, the process can sometimes be a bit brutal but if you have thick skin, it’s well worth the temporary pain. Each of my three daughters played tennis in high school. I always encouraged them to practice, and play, against more skilled players. They normally got beaten but an amazing thing was happening in the midst of the stiffer competi- tion. My daughters were not only getting better at tennis each week, but they also learned to be a bit humbler! Joining an ACCA MIX Group® will help you to accom- plish the same objectives and continue to improve your business. Tom Grandy is president of Grandy & Associates, producers of the well-known “Business Boot Camp” training series. Shark Tank Lesson: Don’t Be AKnow-It-All The two young entrepreneurs were arrogant and unwilling to listen to anyone’s advice, even when it was coming from men and women who had “been there and done that.” JANUARY/FEBRUARY 2022 10
HVACR is an ever-changing industry filled with constantly evolving trends, products, and updates. As President Joe Biden pushes for clean energy, it is no surprise that the demand for renewable energy, like solar and wind, along with energy-efficient products, has increased. Unfortunately, many American homeowners hear misconcep- tions about clean energy, promoting misinformation about the energy- efficient industry. As business owners, it is your responsibility to stay on top of industry trends to ensure that they are provided with the correct information and latest products. However, we know that the clean energy industry can be overwhelming. In this article, you will learn about two important benefits to consider when venturing into clean and energy-efficient products. IT BRINGS REVENUE Did you know that clean and sustainable energy has become important for many homeowners and individuals today? According to Forbes magazine, businesses must begin incorporating sustainability in their marketing tactics as it has become a deciding factor in many consumers’ purchasing decisions. In addition, past strategies will no longer predict nor benefit the growth and TheFutureisCleanEnergy JANUARY/FEBRUARY 2022 11
success of your business. As energy-efficient prod- ucts become more popular, constant changeouts are inevitable. If you find yourself behind these up-andcoming trends, you will prevent your business from bringing in more revenue. According to a recent national survey conducted by Consumer Reports, most Americans prefer that their homes be powered from renewable sources such as solar and wind. Additionally, homeowners from states with a higher average use of coal such as Illi- nois, Ohio, Tennessee, and Virginia are also interested in clean energy. See survey statistics in figure below. If you are unsure where to start, the upcoming Solar Forum will be the best way to learn about the value of renewable energy solutions and solar certifications. The Solar Forum 2022, presented by ACCA and Pearl Certification, will be the nation’s first HVAC and solar event and will occur on November 14–15, 2022, at the Crown Plaza in Phoenix, Arizona. The forum will offer HVACR contractors inspiring educational sessions, innovative products, service providers, and networking opportunities with other contractors, and will include multiple Learning Lab sessions, including: HVAC, Solar & SMART Technologies with Casey Murphy, Pearl Certification, and Guest Panelists. Oh My, We Want More Pie! AKA: Alternative Business Models for HVAC & Solar Contractors with Bethany Profaizer and Derek Estes, Pearl Certification. Are Your Clients Richer When You Leave Their Home? With Robin LeBaron, Pearl Certification. IT CREATESMORE JOBS As the HVACR industry continues to struggle due to the labor shortage, it is no surprise that the demand for skilled technicians is expected to rise by 15 per- cent between 2016 and 2026. However, a new report states that the clean energy industry can help job growth across the country. According to an E2 (Envi- ronmental Entrepreneurs) report, the energy effi- cient industry employs 2.25 million workers across the country, making it the top employer and biggest job creator. In addition, E4TheFuture states that 49 percent of the 2.25 million energy efficiency jobs in the United States are currently in the HVACR field. To give a better perspective about the job oppor- tunities, statistics show that: The energy efficient industry is the fastest growing job sector in energy, accounting for half of the entire energy industry’s job growth (133,000) in 2017 11 percent of energy efficient jobs held by veter- ans, which is greater than the national average of veterans in the workforce (6 percent) 315,578 manufacturing jobs in energy efficiency, an increase of nearly 10 percent in 2017 alone 2X energy efficiency employs twice as many work- ers in the USA as all fossil fuel sectors combined While it can be overwhelming, the clean industry is an industry that will not only benefit the environment and your customers, but it can also benefit your busi- ness. As more businesses continue to invest and support the clean industry, this can open even more job opportunities for you and the entire HVACR industry. 81% agree that reducing pollution from power plants is a worthwhile goal 76% agree that increasing renewable energy is a worthwhile goal 70% agree that they expect electricity to become cleaner over time 53% say they would be willing to install solar panels on their own roof or participate in a community solar garden or array if they could recover their investment in five years 48% say they’d be willing to pay five dollars more per month for energy that comes from renewable sources A new report states that the clean energy industry can help job growth across the country. JANUARY/FEBRUARY 2022 12
THE FUTURE OF THE HVACR INDUSTRY WHAT NOW? 14 JANUARY/FEBRUARY 2022
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PRIORITIZE SAFETY While the HVACR industry has cer- tainly been impacted by the effects of the COVID-19 pandemic, countless technicians continued to work and provide critical repairs to millions of Americans. However, it is more important than ever to prioritize their safety and comfort to ensure that your business continues to run efficiently. First, conducting daily in-person and/ or virtual health checks while enforcing social distancing will help reduce COVID19 infections from spreading between staff members. “We’ve mandated social distancing, masks, gloves, boot covers, and the use of sanitizer. We also installed sanitizer dispensers and hand washing stations in all vehicles,” said Martin Hoover, Owner of Empire Heating and Air Conditioning in Decatur, GA. In addition to providing safety gear, it is important to actively encourage sick members to stay home. If there are employees who appear to have symp- toms upon arrival at work or who have become sick during their shift, they must be immediately separated from other employees and customers, and then sent home. “We are very conscious of public con- cerns,” said Hoover. “We’re ensuring that all employees who are not well are always kept at home.” Lastly, do not forget to inform your customers of your safety protocols. When they are scheduled for a home visit, it is also important that they receive a reminder regarding safety guidelines and fill out a questionnaire regarding COVID-19 symptoms. “As essential workers, we need to let our customers know we are open and available,” said Hoover. “However, you must do everything in your power to keep both your team members and your customers safe from each other.” ENFORCE BETTER COMMUNICATION Today, miscommunication is the key to a business’ downfall. As the COVID-19 pandemic brings uncertainty in many aspects of society, it is more important than ever to practice active communica- tion with your customers and employees to eliminate doubt and uncertainty. As the HVACR industry is facing product shortages and supply chain issues, there may be instances where your customers will not be able to receive their products on time. In order to avoid unhappy customers, make sure to explain the situation to them sooner rather than later. From the customer’s point of view, there is nothing more frustrating than waiting for a product ASWE’RE NEARING THE SECOND YEAR OF THE COVID-19 PANDEMIC, it is no surprise that the American economy has faced a multitude of challenges, with the HVACR industry being no exception. Similar to other industries, many HVAC businesses are prioritizing customer and employee safety, while also remaining profitable as product shortages and supply chain issues continue. While the Centers for Disease Control and Prevention (CDC) reports that COVID-19 vaccination rates are on the rise, the future of the HVAC industry remains uncertain due to factors like the Omicron variant. In this article, several ACCA contractor members share their experiences during the height of the COVID-19 pandemic, and also provide recommendations to ensure that other contractor members stay successful and kick off the new year with a bang. As essential workers, we need to let our customers knowwe are open and available. However, you must do everything in your power to keep both your teammembers and your customers safe from each other. —Martin Hoover JANUARY/FEBRUARY 2022 16
over a long period of time while being kept in the dark. “You have to tell the truth to your cus- tomers and update themwhen you get the bad news of another delay in delivery,” said Malcom Sweet, General Manager at Integrated Facilities Services, Fenton MO. During this conversation, explain to your customer that there are a multitude of factors causing these delays. You can also inform them that the delays may be due to shifting consumption patterns from the COVID-19 pandemic as well. “The general public seems to be very considerate and patient with these cur- rent issues,” said Hoover. “There are always exceptions that will demand ser- vice immediately, and that is where we try to accommodate the best we can.” In addition, don’t forget to communi- cate with your service technicians. As it is their responsibility to ensure that each of their customers are happy and satisfied, there will be instances where they will be provided with very limited resources and will be forced to work with equipment that they may be unfamiliar with. In order to prevent this from happening, it is best to provide them with additional resources such as access to equipment manuals, training programs, or virtual assistance to help them overcome any of these issues. PLAN AHEAD As the saying goes: “time is money.” During a shortage, planning ahead is the secret to success. For example, one of the best ways for your customers and technicians to save time and complete a job faster is to provide remote diagnostics. When you offer remote diagnostics, you will be counteracting extended lead times by allowing your service technicians to survey a customer’s home, diagnose any JANUARY/FEBRUARY 2022 17
issues, and order any necessary parts and equipment sooner. In the event that you are having trouble ordering specific parts, do not be discouraged. Instead, opt for alter- natives that offer the same functions. “Make sure to look for alternatives and propose them,” said Sweet. “For example, use a steel tank for a specified FRP tank instead.” In addition, never fail to double check on your inventories. When your technician is working on their customer’s home, nothing is more frustrating than needing a specific part under the impression that they are in stock, to later find out that they are not available. “Stay ahead of shortages as best you can and check on your inventories before committing to the job timeframe,” said Hoover. While providing quick service to your customers is the ideal goal, do not be afraid to provide services that will take longer than usual. “Battling product shortages and supply chain issues changes day by day,” said Hoover. “It is not just the inability to get products, but also the pricing changes. We often have a longer job prep time to be able to get components from multiple vendors.” While it may seem like we are nearing the end of the COVID-19 pandemic, the HVACR industry is far from overcoming product shortages and supply chain issues. In order to prevent these issues from affecting your business, follow these proactive measures to ensure that you are able to serve your customers in an effi- cient and effective way. Serving on an ACCA Committee ACCA’s committees are one of the best ways to have an active say in what ACCA is doing and the products, services, and events that are being developed. Regardless of where your interests lie, there is a committee should pique your interest and needs your involvement. One of the biggest reasons many ACCA members say they don’t want to serve on a committee is they just don’t have the time to serve. This is a valid concern, but let’s break down how much time it really takes to serve. Q: Howmuch time do I need to give to serve on a committee? A: On average, ACCA committees meet once a month via Zoom for 1 hour. They also meet in-person at the ACCA Confer- ence and Expo each year. And, many of the ACCA committees take a short break from meeting in the summer (June, July, August) to focus on their businesses during the busiest and most profitable times of the year. Other than these meetings, from time- to-time committee members are asked to review content, speak at events, post to the Contractor Forum, and/or write short blogs to share with the membership. Q: How long do you serve on a committee? A: One year. Yes, that is correct. ACCA asks that if you accept a seat on a committee that you serve for one full year, which is ACCA conference to ACCA Conference. So, if you apply to be a member of an ACCA committee now, you will begin serving in March 2022 and your term will end in April 2023. Q: What happens if I can no longer serve on a committee? A: It happens, things change, and other priorities take precedence. If there is at any time you need to step down from an ACCA committee, all you need to do is email the committee chairs and ACCA’s Committee Liaison. That’s it! It’s that easy. The time com- mitment is small, but the rewards you receive for the investment far exceeds what you put in. So, there is only one last question…can we count you in for a committee to help ACCA continue to grow and provide contractors like you the resources and services you want and need. Committee Crunch By Melissa Broadus APPLY TO JOIN AN ACCA COMMITTEE ACCA’s committees only work if members actively participate in them. The time investment is small, just about an hour a month, but the reward is much greater: a seat at the ACCA table. We are always looking for great committee members! Scan the QR Code or visit https://bit.ly/acca_committees to apply and give back to your association! What Now? The Future of the HVACR Industry Post COVID-19 (continued) Make sure to look for alternatives and propose them. For example, use a steel tank for a specified FRP tank instead. —Malcom Sweet JANUARY/FEBRUARY 2022 18
My travel through the United States gives me a glimpse into various companies and their sustenance throughout the pan- demic. I have found that the single differen- tiating factor among companies that thrived through COVID-19 was their infrastructure. When using the term infrastructure, I mean their procedural documentation. Companies that document their work are in a better position than those that do not. In the absence of documentation, manager and employee output can be incon- sistent and varied. It is a manager’s role to enforce consistent behaviors. The best way to achieve this is through documentation. During my customer service seminars, I share two success words: tenacity and perseverance. Talent and skill are no match for tenacity and perseverance. Sticking to long-term goals, especially during setbacks and failures, serves us well. Tenacity andperseverance canbe encap- sulated into a single word: grit. People who display grit are courageous with boundless resolve and strength of character. Today’s service managers must possess the grit to help navigate through tumultuous and rapid change in every facet of business and management. The most important benefit of grit is the posi- tive example it displays for subordinates. Employees become more valuable when they learn to stick with a problem and follow through to a resolution. Service managers who lead by example achieve a better balance of people and systems. System dynamics involve people, processes, and continual improvement. The managers who rely on their grit when establishing big goals are likely to achieve them. How do you know what a system’s goal is? Frequently, service managers have different ideas about the system’s goal. In most businesses, the company owner usually considers that the system’s goal is to make money. The assumption here is that a money-making company keeps people employed, serves the community, and facilitates future growth. Service managers might see the goal a little differently. While they acknowledge the need to make money for the company owner, service managers also realize that other things are important too. Things like parts availability, customer satisfac- tion, a satisfied, secure workforce, and service quality. Are the service manager’s priorities goals, or are they necessary conditions? A goal can be defined as the result or achievement toward which effort is directed. A necessary condition is a circumstance indispensable to some result, or that upon which everything else is contingent. There is a dependent relationship inher- ent in these conditions. So here is a question: Must a service manager satisfy the necessary conditions to attain the goal? The correct answer is that the relationship between a goal and a necessary condition is interdependent. Therefore, it does not matter what you call a goal and what you call a necessary condition. This interdependency is con- stant, no matter what factor a service manager labels as a goal. So, if a service manager labels customer satisfaction as a goal, then all other related factors become necessary conditions to achieve that goal. A company cannot have satisfied cus- tomers without profitability, parts availability, a satisfied, secure workforce, or service quality, and so on. Service managers who simplify complexity, leverage interconnected- ness, and measure improved change over time are maximizing their system dynamics potential. System dynamics is a combination of personal and systemic factors which enable service managers to be leaders. Steve Coscia, CSP is an industry expert that helps HVACR companies make more money through increased customer retention, improved upselling, and reduced job stress. NewYear, NewOpportunities for Success Service Savvy By Steve Coscia Today’s service managers must possess the grit to help navigate through tumultuous and rapid change in every facet of business and management. JANUARY/FEBRUARY 2022 19
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