MAY/JUNE 2022 SERVING CONTRACTORS IN THE HVACR INDUSTRY 2022 RESIDENTIAL CONTRACTOR OF THE YEAR HowMuch Debt Is TooMuch Debt? Work Ethic and Personal Accountability Giving Back to the Industry DOCTOR COOL + PROFESSOR HEAT
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4 CEO’s Column 5 Chairman’s Column 6 Now@ACCA 13 ACO Spotlight: Gateway 14 Committee Crunch 16 Capitol Insights 18 Safe@Work 28 Business Buzz 29 Service Savvy 30 Tech Tips 32 Legal Toolbox 34 Training Tip 36 Corporate Partner Spotlight – Home & Local Services 38 Tech Challenge & Ad Index 34 6 contents Volume 11, Issue 3 / Published in May 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, Katie Kuehner-Hebert 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 ® Doctor Cool + Professor Heat ACCA congratulates Doctor Cool & Professor Heat in League City, TX for being named ACCA’s Residential Contractor of the Year! This third-generation company serves its community in more ways than one, and is a true champion of the industry. 22 29 6 2022 Residential Contractor of theYear:
Highlighting ACCA 2022 C EO ’ S COLUMN Barton James is President and CEO of ACCA. He can be reached at barton. james@acca.org. ACCA WOULD LIKE TO THANK everyone who was able to join us in St. Louis for the ACCA 2022 Conference & Expo. ACCA 2022 featured a soldout expo floor and over 40 educational speakers, including our amazing keynote speaker, Gerry O’Brion, What Big Brands Know founder, sponsored by Rheem and RUUD. Speakers talked about a vari- ety of topics that covered everything from technical and codes issues to succession planning, recruiting, and relationship-building. I am especially thankful that ACCA members who attended were able to share their thoughts and insights on ACCA’s advocacy activities at the ACCA Town Hall. ACCA is the voice of HVACR contractors, advocating on your behalf to congress and to state legislators, utilities, code officials, media, manufac- turers, and more. Hearing directly from attendees was vital, and we appreciate learning more about your concerns, how ACCA can be more supportive of positive laws and regulations, and fight those that would negatively impact our industry and your bottom-line. As you know, everything ACCA does is member-driven and member-focused, so we appre- ciate attendees sharing their thoughts and concerns during this important session. ACCA 2022 also featured the Manufacturer Lead- ership Forum and the Contractor Forum Live. Both sessions provided attendees with valuable insights into the most pressing issues facing our industry, like supply chain issues and the EPA’s cylinder ban. It was wonderful to see everyone come together for one common goal: advancing and protecting our industry. ACCA honored 13 companies and five individuals with awards for their commitment to the HVACR indus- try during ACCA 2022. ACCA’s 2022 AwardWinners are: Marketing Masters Awards, sponsored by RYNO Strategic Solutions • American Mechanical, Inc., Virginia Beach, VA • Blue Bear Services, Boston, MA • Buehler Air Conditioning, Jacksonville, FL • Chesterfield Service Company, Chesterfield, MO • Clay’s Climate Control, LLC., Linwood, NJ • Oliver Heating & Cooling, Morton, PA • Quality Heating, Cooling, & Plumbing, Glenpool, OK • Rosenberg Indoor Comfort, San Antonio, TX • Rumer-Loudin, Inc., Barnesville, OH • Triple Play Home Services, Edmond, OK Ultimate Marketing Master Award • Rosenberg Indoor Comfort, San Antonio, TX ACCA Spirit of Independence Award • Jack Rise Residential Contractor of the Year, sponsored by Honeywell • Doctor Cool & Professor Heat, League City, TX Commercial Contractor of the Year, sponsored by Honeywell • Howell’s Heating & Air, Ashland, VA Federated Insurance’s ACCA Super S.T.A.R. Award • Hartley’s Climate Control, Rolla, MO ACCA Community Leadership Award, sponsored by Jackson Systems & Supply • L anny Huffman, Hickory Sheet Metal Co, Inc., Hickory, NC Coolest in Congress Award • Congressman Markwayne Mullin (OK-02) • Congressman Roger Williams (TX-25) ACCA Distinguished Service Award, sponsored by Honeywell • R yan Kletz, Classic Air’s One Hour Heating & Air Conditioning, Virginia Beach, VA ACCA’s success at the 2022 Conference & Expo would not have been possible without outstanding members like you. We value your guidance and feed- back and will continue to provide you with quality content and resources that will help your business continue to grow and flourish. If there is anything you want to share with me, or any of your ACCA staff, about the conference or any- thing that ACCA is doing, don’t hesitate to reach out to us. We are committed to being your number one resource and we are here to listen to you and help you. On behalf of the entire ACCA staff, thank you for trusting us as your association. MAY/JUNE 2022 4
HAVE YOU CONSIDERED how you could get more out of your association and give more back to the industry at the same time? Perhaps serving on one of ACCA’s committees would be a great way to accomplish both. ACCA is aiming to providemore value for themem- bership, and its committees are a very good resource for that. The association also seeks to garner as much information from the membership as possible about the latest trends in the industry, and its committees are an important way to do that. ACCA’s staff are heavily involved in collaborating with members of committees to make the association the best it can be for the HVAC industry. One of the things I like best about being a commit- tee member is that it’s not a paid position – they’re all volunteer jobs. There are so many things in our pro- fessional and personal lives that are time-consuming and there are only so many hours in the day, so it’s vital that ACCA’s committees are regularly refreshed with new members who are engaged and excited about moving the industry forward. Serving on a committee means just a monthly conference call for about an hour on average, so it’s easier to fit into your busy schedule. Committees also double as a great pipeline for ACCA’s board – members on these committees poten- tially could be tapped to be ACCA board members, particularly those who have a strong commitment to give back to our industry. There are five main committees that work with the ACCA staff to develop and produce resources, events, products and services that help contractors and their teams stay on the leading edge and ahead of their competition. Events Committee If ACCA is going to sponsor, attend, or create an event, this is the committee responsible. They provide sup- port for the annual conference, fall forums, regional training events and anything else that they can come up with that will help to support our members and our industry partners. Member Services Committee This committee is responsible for delivering the products and services that ACCA has to offer our members, including internet sales, online training, training and education downloads, and anything else that provides value to membership. This committee works in conjunction with other committees to develop new materials, assist with repackaging of currently offered materials, and making materials easily accessible. Membership Committee This committee is responsible for bringing in new members to ACCA, which is vital, as our numbers are our strength, and the stronger we are, the louder the voice we have in the industry. This committee by natural extension also helps to retain current mem- bership by creating a more engaging dialogue. This group is the marketing arm of ACCA in that we need to let people knowwho we are and what we can offer their business when it comes to being successful. Partners Committee This committee is responsible for partnering with the ACCA staff to nurture and build substantive, long-term and mutually beneficial relationships, for the association and our members, with a pri- mary focus on building a sustainable and enduring Corporate Partner program. A critical component of this is identifying partner leads and facilitating introductions. Products Committee This committee develops and maintains the techni- cal materials that ACCA has to offer our members. They are also responsible for creating new stan- dards as they are needed and ensuring that any ANSI certified products remain qualified/certified. They also help to create whitepapers to support questions that come from our members or industry partners. Any ACCA contractor member may apply to be a member of any of ACCA’s committees. If you have questions about any of the committees, please con- tact Melissa Broadus, ACCA’s Committee Liaison at accacommittees@acca.org or 703-824-8842. ACCA’s committees are very vital – helping to enhance the association for the betterment of the entire HVAC industry. Consider giving back and get- ting so much in return! Giving Back to the Industry CHA I RMAN ’ S COLUMN By Keith Paton, Vice President of Service at Ivey Mechanical Co. based in Kosciusko, Mississippi MAY/JUNE 2022 5
NOW @ ACCA ACCA 2022 MARCH 28–30 / ST. LOUIS, MO Above: Barton James, ACCA president and CEO, greets Adinsson Salazar and Zuleyka Salazar of AJ’s Heating & Air Conditioning LLC in Springfield, VA. Top right: Attendees at the Operations & Growth Roundtable Lunch. Right: Contractors chat with students from Southwestern Illinois College at the Operations & Growth Roundtable Lunch. MAY/JUNE 2022 6
Attendees enjoy Take Ownership of Leadership, a lively Learning Lab with speaker and business coach, Bryan Dodge. Left: Michael Sauer, Scorpion executive vice president of partnerships, explains how to communicate efficiently with each generation of the workforce during the Learning Lab, From Baby Boomers to Gen Z: How to Work and Communicate More Effectively. Left: Eric Murr of Kegerreis Digital Marketing asks a question during a Learning Lab. Right: Attendees enjoy food and drinks during the Emerson Celebration, commemorating 100 years of the Copeland™ brand and 10 years of partnership with ACCA. > > > > > Right:Alyx Simon, ACCA marketing & advocacy coordinator, ACCA-PAC manager helps an attendee find session times through the ACCA 365 app. > > > > > MAY/JUNE 2022 7
> > > > > > > > > > NOW @ ACCA From left to right; Andrew Oser, Ben Kelley, and Tim Cropp of CroppMetcalfe Services in Fairfax, VA; Gary Marowske and Matt Marsiglio of FLAME Heating, Cooling, Plumbing, and Electrical in Warren, MI; and Mitch Cropp of CroppMetcalfe Services in Fairfax, VA, enjoy the live band during the Emerson Celebration. Below: Sarah Michel, vice president of professional connexity at Velvet Chainsaw and Renee Lucas, co-owner of LCS Heating & Cooling, LLC in Indianapolis, IN, help attendees make a plan of action with the information they’ve learned throughout ACCA 2022 at the closing session, Lessons in Leadership. Will Powers of CompanyCam explains a product to Brian Bovio of Bovio Rubino Service in Voorhees, NJ, at the ACCA 2022 Expo. Attendees and exhibitors discuss exciting new products and services at the ACCA 2022 Expo. MAY/JUNE 2022 8
NOW @ ACCA > > > > > Left: Ken Goodrich, president of Goettl Air Conditioning & Plumbing, shares how he has been successful during the Contractor Forum Live session. RIght: Rosenberg Indoor Climate in San Antonio, TX, was honored with ACCA’s firstever Ultimate Marketing Master Award sponsored by RYNO Strategic Solutions (left to right: Lee Rosenberg, Betsey Rosenberg, Mike Venidis, Michael Rosenberg, and Brian Stack). Below: Howell’s Heating & Air’s Service Manager, Tracy Parrish, addresses the crowd after receiving ACCA’s 2022 Commercial Contractor of the Year Award. Below: Nate Oland, Federated Insurance senior national account executive, presents Ericca and Jon Hartley, owners of Hartley’s Climate Control in Rolla, MO, with the ACCA’s 2022 Super S.T.A.R. award. Right: Exhibitors from Emerson talk with attendees of the 2022 Expo. Left: Exhibitors from Pearl Certification talk with an attendee of the 2022 Expo. ACCA had leaders from top manufacturing companies share their insight with contractors during the Manufacturers Leadership Forummoderated by Eddie McFarlane. (From left: Eddie McFarlane, Mike Branson, John Schneider, Justin Keppy, Casey Yates, and NathanWalker) ACCA’s 2022 Board Chair Brian Stack congratulates Past ACCA Board Chair, Lanny Huffman owner of Hickory Sheet Metal in Hickory, NC, on receiving ACCA’s 2022 Community Leadership Award sponsored by Jackson Systems. MAY/JUNE 2022 10
Service Savvy By Steve Coscia NOW @ ACCA > > > > > ACCA held its Board of Directors meeting the Sunday before the Conference and Expo began in St. Louis. (From left to right: Barton James, Brian Stack, Cardboard Keith Paton, Lanny Huffman, and Stephen Pape) RYNO Strategic Solutions CEO, Chris Yano, moderated the Contractor Forum Live panel at ACCA 2022. (from left: Brian Bovio, Ryan Kletz, Chris Yano, Ken Goodrich, Chris Hoffmann, and Lee Rosenberg). Ryan Kletz, vice president of Classic Air’s One Hour Heating & Air Conditioning in Virginia Beach, VA, talks about the power of volunteering while accepting ACCA’s 2022 Distinguished Service Award. Right: A Scorpion representative explains their products to an attendee at the ACCA 2022 Expo. Below: James Barry owner of Doctor Cool & Professor Heat in League City, TX, talks about what an honor it is to be named ACCA’s 2022 Residential Contractor of the Year. MAY/JUNE 2022 12
DURING ACCA 2022, contractors and staff had the opportunity to visit with the Gateway Air Conditioning Contractors (Gateway ACC), one of ACCA’s 19 Allied Contracting Organizations (ACO). This visit gave a unique, inside look at how an ACO works for contractors. Field Trip to The Hill District Conference attendees took a trip to visit the Hill District of St. Louis, MO. The Hill is a long-established Italian-American neighborhood with family-owned delis, sandwich shops, bakeries, trattorias, piz- zerias, and upscale Italian eateries dotting the streets. It is also home to the Gateway ACC office. During the field trip, guests visited the office, where Kellie Jones, Gateway ACC’s executive director, shared information on the association, along with their efforts to help contrac- tors grow and thrive. The group then vis- ited bakeries and restaurants in the area and finally headed over to the famous Milo’s Bocce Garden to try their hand at the neighborhood’s favorite past time. ACCA Leadership Visits Gateway ACC Also, while in St. Louis, Barton James, ACCA president & CEO, and Sean Rob- ertson, ACCA vice president of membership and business operations visited with Jones. Both James and Robertson were excited to get a firsthand look at what the association is working on and to discuss how the ACCA and Gateway can grow their relationship and do even more together to reach the common goals of both groups. “Kellie Jones is one impressive lady, and she works hard to ensure that con- tractors are game-changers for the industry in Missouri,” said James. “She meets with state legisla- tors, advocating for legislation that would streamline the cur- rent patchwork of local licensing by creat- ing a mechanical contractor license that’s recognized statewide.” “It was great having Bart and Sean visit our office while they were here in St. Louis and I was encouraged at how much time they shared getting to know me, Gateway, and the work that we’re doing,” said Jones. “Working together is a critical part of contractor success and I appreci- ated the opportunity to understand how ACCA national supports contractors at every level.” > > > > > ACCAMEMBERS AND STAFF VISIT GATEWAY AIR CONDITIONING CONTRACTORS IN ST. LOUIS By Melissa Broadus MAY/JUNE 2022 13
ACCA CommitteesMet In-Person in St. Louis After two years, ACCA’s commit- tees met for in-personmeetings at ACCA 2022 in St. Louis, MO. Being together in-person increased the energy and boosted collaboration among committee members, staff, and guests at the meetings. All ACCA members attending ACCA 2022 were welcome to attend the committee meetings to see what it is like to be part of a committee. Here are the highlights. Events Committee The meeting started with Ryan Kletz of Classic Air’s One Hour Heating and Air Conditioning in Virginia Beach, VA, introducing his new co-chair, Renee Lucas of LCS Heat- ing & Cooling LLC in Indianapolis, IN. ACCA structures it’s committees with co-chairs to ensure that each committee has strong leaders that can help navigate the programs and help ACCA serve its members. The committee celebrated moving past the COVID-19 pandemic and holding its first in-person conference since 2019. They then began working on planning the ACCA Fall Meetings, taking place Sept. 12- 15, 2022 in Baltimore, and discussing the ACCA and Pearl Certification Solar Forum, taking place Nov.14 – 15, 2022 in Phoenix, AZ. The committee also began working on ACCA’s 2023 Conference and Expo taking place Apr. 2-5, 2023, in New Orleans, LA. Member Services Committee The meeting started with Matt Marsiglio of Flame Furnace in Warren, MI, introducing his new co-chair, Eric Knaak of Isaac Heat- ing & Air Conditioning, Inc. in Rochester, NY. The committee discussed what products and services ACCA can develop and provide for members that will help with the current workforce shortage. Discussion surrounding different training programs and ways to release them to members were high priority items. The workforce discussion wrapped up with an update on the new CareerPlug Plat- form that ACCA launched this year. There were also updates on ACCA’s benchmark- ing efforts and safety programs. Membership Committee This committee hit the ground running, discussing the marketing of ACCA’s new Tiered Membership, strategizing with ACCA staff on what they could do to help advocate the value of the new program with their peers. They also reviewed the current mem- bership levels, and membership dues revenue. They celebrated that ACCA non- contractor membership is at its highest level in ACCA’s history. The meeting wrapped up with a review of ACCA’s government relations efforts and a discussion of how to engage more members in ACCA advo- cacy efforts. Partners Committee ACCA’s Partners Commit- tee held an invite-only sessionwith ACCA’s Corpo- rate Partners. The session was facilitated by Lewis Flax of Flax Associates, an ACCA consultant. During the meeting, attendees sat in groups and discussed how they feel about their partnerships with ACCA. Each group talked about what partnership means to them, what they like about their partnership with ACCA, and their wish list for ACCA part- nership in the future. This meeting was just the start of the Partners Committee holding these types of collaborative sessions to help grow and adjust ACCA’s partnerships. Products Committee This committee got right down to busi- ness, looking at the status of ACCA’s work on standard development. An update was shared on the ongoing Manual S® update and what the schedule is for the review and update of ACCA’s other ANSI-recog- nized standards Manual J® and Manual D®. The Codes sub-committee also gave an update on their work with various code councils. They discussed the status of ACCA’s work with the Rocky Mountain Gas Association in Utah to review homes that builders have deemed as having issues due to their HVAC system installation, which were then used to pass leg- islation removing the requirement for Manual J® load calculations to be performed in the area. Join a Committee! ACCA has plenty of work to do and we need your help. ACCA volunteers are what make ACCA great, because they help steer the ACCA staff in their efforts. Just fill out the online application (www.acca.org/ members/acca-committee-application) and we will work with you to get you on your committee of choice. Since conference, we have had several ACCA members step up to join com- mittees. We want to thank the following people for answering the call to serve: • Kane D’Amico, Alliance Heating & Air Conditioning (Partners & Events) • Ben Kelley, CroppMetcalfe Services (Member Services) • Paul Adams, Royal House (Membership) Committee Crunch By Melissa Broadus Jim Cika and Mark Fasel of the International Codes Council participate in ACCA’s in-person Products Committee Meeting. MAY/JUNE 2022 14
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Capitol Insights By Chris Czarnecki DOE Regional Standards Updates Coming—Installation You may have heard by now that the Department of Energy (DOE) is updating its regional efficiency standards on January 1, 2023. The new standards will require a new sea- sonal energy efficiency ratio (SEER) for residential systems. In the North Region the requirement is 14 SEER. In the South and Southwest Regions, the requirement is 15 SEER. That’s not all, though. For the first time ever, the DOE is basing its regional standards in the South and Southwest Regions on the date of instal- lation as opposed to the date of manufac- ture. This means that after January 1, 2023, contractors in the South and Southwest Regions will be PROHIBITED from install- ing equipment that does not meet the new standards. For contractors in the north, it will be business as usual—as long as your equipment was manufactured in accordance with the regional standards in place at the time, you are good to go. Under DOE’s regulation, contractors will also be required to track and store certain information for up to four years. This includes manufacturer, model #, serial #, date of purchase, contact of dis- tributor, date of sale, contact of customer, and install address. In the Southwest this will apply to both split systems and single package units. In the South it will only apply to split systems. Based on a report of an illegal instal- lation, DOE can request records from the installer, as well as the dealer, distributor, or manufacturer of the air conditioner. These records must be provided to the DOE within 30 days of the request. If DOE finds that an installer has violated regional standards, DOE will issue a Notice of Viola- tion to the installer. If the installer remediates the violation before DOE issues a Notice of Violation, DOE will not issue the Notice. If the installer remediates the violation after DOE issues a Notice of Viola- tion, the violation will not count toward DOE finding that the installer is a “routine violator” of regional standards. DOE may assess penalties of up to $440 per violation against manufacturers, private labelers, or distributors who sell air conditioners or heat pumps to routine violators. According to DOE, regulations provide an incentive to the installer to promptly “remediate” the violation by replacing the noncompliant air conditioner with a compliant product, at no cost to the consumer. If an installer is found to routinely violate the regional standards, distribu- tors and manufacturers will no longer be able to continue to provide product to the installer for sale. Legislation has been introduced to change the requirements. Congress- man Bob Latta (OH-5) has introduced the SMART Energy Efficiency Standards Act, which would change the date that furnace, central air conditioner, and heat pump manufacturers must comply with regional energy efficiency standards to the date of manufacture instead of what it currently is, which is the date of installation. This action would bring the regula- tions into line with the rest of the Energy Policy and Conservation Act (EPCA). You can do your part by letting your rep- resentatives in Congress know why they need to support this legislation to change date of install to date of manufacture and do away with this entirely unnecessary and burdensome regulation. You can tell your representatives in Congress to support the SMART Energy Efficiency Standards Act by visiting ACCA’s advocacy page at acca.org/ advocacy and clicking on the engage tab. How Contractors Should Prepare Be ready for this change. Manage your inven- tory and make sure the systems that you install meet the new standards. This update may cause further strain to an already trou- bled HVAC supply chain, so plan accordingly. Also, think about how you’ll track and store the necessary information under this regu- lation and how you plan to access it if DOE issues a request. Many contractors already use software with these capabilities. ACCA Launches Stop the EPA Ban! Campaign ACCA has partnered with HVACR dis- tributor association HARDI and cylinder manufacturer Worthington Industries for a campaign to stop the EPA’s disposable cylinder ban for HFC refrigerants. This is in addition to ACCA’s involvement in liti- gation against the Agency. EPA’s cylinder ban, which will go into effect in 2025 and 2027 harm the HVACR industry and Amer- ican economy in several ways including the following: • A merican manufacturing jobs will be lost • I ncreased cylinder weight means more injuries and long-term strain on technicians • T hose unable to lift, pull, or carry 50 lbs. will be effectively barred from certain HVACR jobs • S mall businesses will pay significantly more for cylinders • T he overall financial burden will be roughly $2 billion • I t will further strain the already stressed HVACR supply chain • It will contribute to price inflation meaning some American families may not be able to service their AC units • B usinesses will need to reconfigure trucks, adding to vehicle weight and fleet maintenance Worthington Industries is the only domestic manufacturer, and if they cannot accommodate the HVACR market in time, we will see a massive influx of poorly made cylinders from China Vulnerable populations may lose access to AC when they need it most. Please visit StopTheEPABan.com to participate in our campaign and let your members in Congress know why this ban can’t take effect. Chris Czarnecki is ACCA’s Government Relations Representative and Coalitions Manager. He can be reached at chris. czarnecki@acca.org or 703-824-8869. MAY/JUNE 2022 16
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Help Reduce the Risks of Mobile Device Distraction 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 WOULDYOU EVER agree to drive the length of a football field with your eyes closed? Probably not. And yet, at 55 mph, that’s approximately how far your vehicle will travel while you spend five seconds reading or composing a text message instead of focusing on the road ahead. Distracted driving is an epidemic that claims the lives of thousands of Americans each year.1 And while there are various distractions that can occur behind the wheel, there is one type that can be easily eliminated: mobile devices. The Myth of Multitasking Safety-minded businesses generally take the necessary step of prohibiting mobile device use while operating machinery, or while in areas where potentially hazardous activities are taking place. Although humans are capable of many amazing things, it is important to consider one simple fact: multitasking does not work.2 The human brain can switch swiftly from task to task, but it can’t focus on more than one task at a time, even though it may appear that way to an outside observer. It is one of the many reasons why mobile device use behind the wheel can have such dire consequences. Creating a Strong Driving Policy. Without clear outlines and policies regarding mobile device use for company drivers, there may be a higher risk of ignoring the rules and causing disasters that may have been preventable. The primary reason to ban or restrict the use of mobile devices in company vehicles is for your own protection — and to help stay focused on the main task at hand: driving. Review your company’s driving policy and consider the following: • A strong policy may prohibit company drivers from using mobile devices and other items that cause distractions behind the wheel. • Where appropriate, this policy may incorporate driver standards and screening for company drivers. • It will outline expectations across the board for safe usage of company vehicles. • Consequences may be clarified for failure to follow the company policy. It may go beyond the minimum local, state, and federal laws applicable to your business. Understanding Your Driving Policy It is important for everyone to be trained, and regularly retrained, on your company’s driving policy and safe driving practices. Work through information in a fresh and memorable way to increase retention when you reinforce the message with your teammates. The driving policy may also detail the consequences of failing to comply with your company’s driving policy consistently. For Brian Stack, president of Stack Heating, Cooling, & Electric, located in Avon, Ohio, distracted driving has become a daily battle for his company’s drivers. Any type of collision can cause down time and loss of revenue, and above all else, Stack wants to keep his employees safe. To help with this important message, they utilize their driving policy created from a sample policy from Federated Insurance. “We reinforce that this policy is in place for their safety, and others on the road,” he said, adding that they conduct trainings on the dangers of distracted driving, with plans to explore in-cab technology later this year. Prevention is Protection Auto crashes due to mobile device use are not going away, and their financial consequences keep growing, along with the risks to you as employee drivers, and others on the road. Keeping attention on this important topic is key. 1 National Highway Traffic Safety Administration. Statistics 2019. www.nhtsa.gov/risky-driving/distracted-driving. Accessed 2/15/22. 2 Cleveland Clinic – Health Essentials. 3/10/21. Cleveland Clinic Health Essentials. Accessed 2/16/22. MAY/JUNE 2022 18
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. 12/21 *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. *
THE FUTURE OF THE HVACR INDUSTRY SPLIT AC SPLIT < 45K BTU SPLIT ≥ 45K BTU 11.7*** 11.2*** EER 2 14.3 13.8 SEER 2 SPLIT HP 14.3 SEER2 7.5 HSPF2 PACKAGED AC 13.4 SEER2 10.6 EER2 PACKAGED HP 13.4 SEER2 6.7 HSPF2 SOUTHWEST SPLIT AC SPLIT HP 14.3 SEER2 7.5 HSPF2 SPLIT < 45K BTU SPLIT ≥ 45K BTU 14.3 SEER2 13.8 SEER2 PACKAGED AC 13.4 SEER2 PACKAGED HP 13.4 SEER2 6.7 HSPF2 SOUTHEAST NORTH SPLIT AC 13.4 SEER2 PACKAGED AC 13.4 SEER2 PACKAGED HP 13.4 SEER2 6.7 HSPF2 SPLIT HP 14.3 SEER2 7.5 HSPF2 NEW DOE MINIMUM SEER2 REQUIREMENTS TAKE EFFECT 1/1/2023 READY FOR 2023? WHAT ARE THE DIFFERENT SELL-THROUGH REQUIREMENTS BY REGION? DOE PRODUCT CLASS NEW STANDARDS EFFECTIVE BY EXCEPTION RESIDENTIAL NORTH/NATIONAL AC DATE OF MFRG – SELL-THROUGH ALLOWED N/A RESIDENTIAL SOUTHEAST AC DATE OF INSTALL – SEE EXCEPTION PRODUCTS > 2023 MINIMUMS CAN BE SOLD AND INSTALLED AFTER 1/1/2023 RESIDENTIAL SOUTHWEST AC DATE OF INSTALL – SEE EXCEPTION PRODUCTS > 2023 MINIMUMS CAN BE SOLD AND INSTALLED AFTER 1/1/2023 RESIDENTIAL NATIONAL HP DATE OF MFRG – SELL-THROUGH ALLOWED N/A COMMERCIAL, ALL PRODUCTS DATE OF MFRG – SELL-THROUGH ALLOWED THREE-PHASE < 65K BTU DELAYED UNTIL 2025 (PENDING DOE FINAL RULE)
SEE YOUR YORK REGIONAL ACCOUNT MANAGER FOR DETAILS | YORK.COM Currently re-testing and re-optimizing all residential and light commercial equipment Launching new SEER2 Compliant equipment to serve your markets Updating testing procedures Now’s the time to move existing inventory Expanding parts inventory WE’LL HELP YOU PREPARE. • New minimum cooling energy efficiency requirements for newly manufactured residential and commercial air conditioners and heat pumps. • Air conditioners installed in northern climates must achieve a 14.0 SEER rating (up from 13.0 SEER), and in the southeast and southwest regions must achieve a 15.0 SEER* rating (up from 14.0 SEER). • New, more rigorous testing and measurement procedures for all residential and 3-5 ton light commercial, single-phase products. HEAT I NG AND A I R COND I T I ON I NG Department of Energy COMPLIANT 2023
2022 RESIDENTIAL CONTRACTOR OF THE YEAR DOCTOR COOL + PROFESSOR HEAT By Katie Kuehner-Hebert MAY/JUNE 2022 22
CONGRATULATIONS to Doctor Cool & Professor Heat in League City, Texas for being named a finalist for ACCA’s Residential Contractor of the Year! This is the company’s second time they’ve been honored with this distinction, having been named a finalist in 2011. The third generation company was founded by Jim Barry, who in 2013 succeeded the business to his son, James. Granddaughter Kiley Barry is now the marketing manager. James has served on the board of the Texas ACCA organization as secretary, director, and president. It can’t be disputed that part of the company’s success has been due to its catchy name distinguishing it within its greater Houston and Galveston markets. MAY/JUNE 2022 23
“The name Doctor Cool & Professor Heat came to my dad in a dream and was stuck in his head for a number of years,” James says. “He had been work- ing in New York for a company called Allied Technical and then moved to Houston and worked for a couple of years at another company, Mischer. When that company closed in 1979 my dad started this company and he remembered that unique name.” Doctor Cool provides air conditioning, heating, air balancing, air quality, high performance, clean air duct systems, and electrical services for resi- dential homes. About 5 percent of the company’s business is in light commercial – installing HVAC units that are 20 tons and under, for small busi- nesses in strip centers and other locations. Even during the pandemic, the company has performed more than 700 equipment installations since the beginning of 2021, and now has more than 3,900 maintenance agreements. “Our company strives to be the best, and we have a strict formal training process to ensure home- owners receive top quality service,” Kiley says. FAVORITE PROJECTS These days it’s the mini split by Mitsubishi – “I enjoy those probably the most,” James says. “The installs can be challenging with so many design options that you can customize for the homeowner’s space and needs,” he says. “We’ve been ret- rofitting a lot of historical homes in Galveston and Houston where the homeowner’s did not like the eye sore of their current package unit sitting on the side of their house, and the ductwork underneath was really nasty.” Doctor Cool retrofits homes with ductless mini- split units, which also create a slimmer line that blends in better with the house and can be decorated with landscaping. The units are also highly efficient and don’t sweat in high humidity. “We’ve been installing mini-split units for about 10 years and there is so much change going on that you have to stay up on technology,” James says. MOST CHALLENGING PROJECTS With south Texas’ high humidity, duct sweating can be a constant problem – particularly for homes that have spray foam insulation, which changes the home’s parameters inducing duct sweating – not to mention stained heaters in attics. “When we go to service HVAC systems at these homes, we have to educate them on the house changes and how that impacts safety and health,” he says. “Because the home is spray foamed we use sealed combustion equipment, and add dehumidifiers to help with their ducts sweating. We have actu- ally had to educate city inspectors about this issue as oftentimes they are also unaware.” When we go to service HVAC systems at these homes, we have to educate them on the house changes and how that impacts safety and health. MAY/JUNE 2022 24
CUSTOMER SERVICE PHILOSOPHY From the very beginning when customers call, Doctor Cool’s team members answer the phone by saying, “How can we make you smile today?” “We realize often when a customer is calling, their home is hot and they are not thrilled to be needing our services, it gets a lot of them laughing a little bit,” James says. “They realize we’re a really relaxed and friendly environment right then and there.” James empowers everyone at the company to make a decision if a customer is upset, though if team members are uncomfortable, they can refer complaints to him or the other managers. “If it’s a matter of giving money back or giving free service, I tell my employees to treat customers like their mother or grandmother – you can’t go wrong with that,” he says. “For the few com- plaints that I do get, I feel that we let the ball drop and I’m going to make it right and do it for free. We’re going to make sure customers are happy.” Doctor Cool guarantees no hidden fees and provides the full price before performing any work, says Adina Nolan, operations manager. Technicians perform the entire job before asking for payment, so if customers are not 100 per- cent satisfied with the work performed, they do not have to pay until the company has met their expectations. For new installs, Doctor Cool always performs a quality assurance inspection that the company’s install supervisor follows up after the installation. “Our install supervisor is there to inspect the equipment and ensure it was done not only to city code, but also meets Doctor Cool’s standard of excellence,” Adina says. “Who wouldn’t want that peace of mind on their investment? Our quality assurance inspector even does a performance test to make sure the system is operating as intended by the manufacturer.” Moreover, technicians “always show respect” to customers by wearing protective shoe covers in their home, she says. During the pandemic, the company has heightened its protective wear by having all field employees wear disposable masks and gloves in cus- tomers’ homes to ensure the safety of both customers and the employees. “We coach our employees on the foundation that there is no right way to do the wrong thing, and that the customer is always right,” Kiley says. “If any customer ever feels overcharged or that the work was not done properly, and we cannot show them otherwise with photos and documented proof, there will be no charge or we will refund or repair to their satisfaction. The work we perform will always be done honestly, and with the best quality. No exceptions, no excuses.” If it’s a matter of giving money back or giving free service, I tell my employees to treat customers like their mother or grandmother – you can’t go wrong with that. MAY/JUNE 2022 25
STAFF EXPERTISE Doctor Cool’s technicians have certifications for EPA, NATE, Indoor Air Quality Association – Certi- fied Indoor Environmentalists, National Balancing Institute – diagnostics and air balancing, Spring Valley College – Heat Gain Load Calculations, Refrigeration Thermodynamics, National Certified Carbon Monoxide Analyst, and Duct Blaster Duct Leakage Certification. The company works to retain its employees by offering growth opportunities, helping them con- tinue their education by sending them to training programs, and by fostering team bonding with luncheons and holiday parties. With employees who have worked here for as long as 25 years, our customers know who is coming to their home, and trust their expertise and advice, knowing they are not just trying to sell them something. MAY/JUNE 2022 26
“We pride ourselves in our employee tenure,” Kiley says. “As we all know in the HVAC industry, getting and keeping good employees is difficult, and your customer trusting who is coming into their home and their recommendations is vital. With employees who have worked here for as long as 25 years, our cus- tomers know who is coming to their home, and trust their expertise and advice, knowing they are not just trying to sell them something.” COMPANY RECOGNITION Doctor Cool is the only HVAC company in the greater Houston area to win the BBB Award for Excellence, Winner of Distinction, for 15 consecutive years as well as being a two-time BBB Pinnacle Award winner – the bureau’s top honor. “The Pinnacle award is a coveted award that spot- lights a commitment to excellence in themarketplace, with only one winner each year among hundreds of HVAC companies in Greater Houston,” James says. “Being the only HVAC company to earn this award twice sets us apart from the competition by giving proof we are a company you can trust.” Doctor Cool has also been named Trane’s National Contractor of the Year for 15 consecutive years, as well as the Finalist Best Contractor toWork For in the US Southern Region. COMMUNITY SERVICE As a family-owned business, Doctor Cool believes giving back to the community is “vital,” Adina says. The company accomplishes this in many different ways, from collecting back-to-school supplies, to donating more than 1,000 pounds of goods to a local food pantry, to collecting and delivering nearly 100 toys and bikes to Dickinson Police Department’s Blue Santa toy drive. “With so many struggling in the pandemic last year, Doctor Cool’s team decided to take their giving even further by ‘adopting’ 54 foster children from Benchmark Family Services in League City, as well as sponsoring over 40 children and 10 adults from the Salvation Army’s Angel Tree,” she says. “Our com- pany also has a pink and purple truck where a por- tion of the revenue generated by these vans goes to MD Anderson Breast Cancer Center and Alzheimer’s Houston Chapter.” What makes Doctor Cool & Professor Heat the best choice for ACCA’s Residential Contractor of the Year? “With nearly 1,000 Google reviews, you don’t have to take our word for it,” James says. “The respect and honesty we show our customers, qual- ity of work, and employee satisfaction speaks for itself. At Doctor Cool we have a win, win, win moto – when the customer wins, the team members win, and ultimately the company wins. This has proven itself to be effective with referrals being our No. 1 source of new customers.” MAY/JUNE 2022 27
Business Buzz By Tom Grandy There are few commercials on the radio that irritate me more than this one. “Don’t let your credit card company fool you into thinking you owe the full amount of your credit card debt!” Of course you owe it. You consciously made a decision to purchase something and buy it using your credit card. It’s called personal debt, and yes, you need to pay it back! That is what integrity is all about! I understand our whole economy is built on debt, but guess what, one day it will catch up to us and it will not be a pretty picture. Many of you remember 2008 and 2009 when the stock market fell, and the economy went way south. I remember being totally shocked to hear how many of the Fortune 500 companies were in panic mode. It wasn’t because of the potential lost sales. They were panicked because of their, “unexpected inability to borrow money,” to meet payroll! Billion-dollar companies dependent on “borrowing money” to make payroll. Wow, that was an eye-opener. Debt has serious consequences for individuals, small businesses, and corpo- rations. Outside of the obvious additional overhead costs to the company, debt cre- ates a false sense of profitability. Any, and all, principal repayment on debt reduces “cash flow” profitability dollar for dollar. The irony is that it does not affect the normal P/L statement from an accounting standpoint. Let me explain. If the company has a $500 loan payment of which $100 is interest and $400 is princi- pal, guess what shows up in the P/L state- ment. Right, only the $100 in interest shows up as an expense. However, from a cash flowperspective (dollars in and dollars out) the company wrote a check each month for the full $500. Where did the other $400 go? Well, pretty much off to never-never land. Sure, assets and liabilities are affected, but not the P/L statement. Think about it this way. The company produced $1,000,000 in gross sales. They have multiple loan payments, plus money going out to pay off their line of credit, which is quite possibly maxed out. The principal portion of the loans, and line of credit repayment, total $35,000 a year. The company’s P/L statement shows a net profit of $63,000 for the year. Now6.3%net profit isn’t great, but for many companies there would be a great deal of rejoicing with a $63,000 profit after all expenses, and salaries, had been paid. However, there is NOT $63,000 in the checkbook! Why not? Because the principal portion of the loans, and the line of credit repayment, sucked out $35,000 of what the CPA and Uncle Sam called profit. Worst yet, the company now needs to pay taxes on the “accounting” $63,000 when in reality they only made a cash flow profit of $28,000. Sound crazy? It’s not. I have worked with companies that found their entire net profit was eaten up by the principal por- tion of their debt repayment. The question asked by the title of this article is “How much debt is too much debt?” The answer is quite simply, how much real profit do you want your company to make? If you want to keep what you earned...eliminate debt! The reality is that most reading this article have at least some debt. My sug- gestion is quite simple. Be sure you include the full amount of the loan payment (or what you want to pay off of your line of credit) as an overhead cost just like rent and utilities. That means listing the entire loan payment, principal, and inter- est, as a cash flow expense. Once you know your true overhead, you will be able to set proper hourly rates to cover those costs while generating the profit you desire. The good news of including the full amount of the loan payment in your overhead is this: once the debt is paid off, the entire loan payment, prin- cipal, and interest, goes straight to the bottom line as profit. Each time a debt is paid off profitability increases without having to raise your hourly rate. Debt may not be a four-letter word you think about a lot, but it’s just as destruc- tive. Count the cost before you borrow those additional funds, no matter what the purpose. Remember, there will be another 2008–2009 in the future. The less debt you have, the better the possibly of staying in business when (not if) the next recession comes. Tom Grandy is president of Grandy & Associates, producers of the well-known “Business Boot Camp” training series. HowMuch Debt Is TooMuch Debt? MAY/JUNE 2022 28
Recently, I had the pleasure of serv- ing Texas clients in a variety of training and consulting assignments. My clients are the best of the best –and they’re looking to get even better. From Houston to El Paso, I enjoyed serving contractors, distributors, and educational institutions. Driving from Pennsylvania to Texas gives me lots of dashboard time to think about my own career development. Do you wonder if people learn to work at home or on the job? Learning to work at home might include daily chores and these require soft skills such as being on time and finishing work that is started. The terms “work” and “job” conjure up disci- plines such as efficiency, productivity, and expectations. Most company owners hope that new employees have already heard the “work smarter, not harder” mantra. Folks my age learned a mix of professional and personal disciplines prior to earning their first paycheck. My customer service career began in October 1970, when I landed a part-time job delivering groceries for a local market. Entering the homes of our customers was neither difficult nor uncomfortable—all I had to do was be myself. My parents had taught me about respect, serving others, and honesty, and the lessons stuck. Serving customers during those early years was an education in itself. I learned that people come in different shapes, sizes, and dispositions. The customers who anticipated my arrival welcomed me into their home and prolonged my deliv- ery with chitchat. Only a few customers thought I was unfit to enter their abode— or they perceived me as an interrup- tion and stopped me at their front door, grabbed the groceries, and sent me on my way. Either customer disposition suited me just fine because my primary concern was that orders were accurate, delivered on time, and in good condition. The most profound lesson I learned was two-fold: always maintain a positive attitude and establish a stable service infrastructure. Years later, my experiences as a service manager taught me that hiring employees with the most positive attitudes was the safest bet, regardless of field experience. People with positive attitudes learn that each problem they overcome today pre- pares them for the obstacles lying ahead. The cumulative result of resolving daily problems eventually translates into a life- time of field experience. Technical skills can be taught, and a person with a positive attitude is more resilient, adaptable, and open to new ideas. A positive attitude almost always trumps technical ability, especially when you consider tenacity and perseverance as attitudinal factors. Service professionals are able to endure the hardships because of tenacity and perseverance, not technical ability. Willingness to go the extra mile, maintain a positive attitude, and remain construc- tive are vital, world-class behaviors. A person’s belief system and personal constitution about work usually begins at home. Parents help instill the disciplines and good habits that translate into professional workplace behavior. Remember when your parents urged you to clean your room or put your toys away? The most meaningful lessons I learned about work, life, and serving others came from working with my father. He was born in 1912 and managed to achieve only a fifth-grade education. Students who were unable to maintain specific academic standards in those days discontinued their edu- cation after the fifth grade in order to enter the workforce. I suppose my father just did not learn the way other children did. My father eventually began working with construction crews, where he developed a skill for working with concrete. Even without a formal education, he was able to teach himself the use of a slide rule so that he could calculate square yardage. Many a Saturday of my boyhood was spent accompanying my father on one of his smaller concrete projects such as driveways, patios, and walkways. We would rise early to load a large concrete mixing bin on top of his 1959 Ford Ranch Wagon. After gathering the necessary shovels, hoes, trowels, levels, and toolboxes, we drove to the worksite. My father taught me the importance of knowing how to select and use the correct tool for the appropriate job. I also learned the importance of properly storing the tools so that we would be able to find them when needed. Being organized is a key to success, whether I was a laborer or a consultant. How about you? Did your parents teach valuable work and life lessons? Send me a note (steve@coscia.com) about the most important lessons learned at home. Steve Coscia, CSP is an industry expert that helps HVACR companies make more money through increased customer retention, improved Work Ethic and Personal Accountability Service Savvy By Steve Coscia MAY/JUNE 2022 29
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