Supplier Viewpoints: Why Does High-Performance Matter? hvactoday.comMAY 2022 HIGH-PERFORMANCE HVAC TODAY TM If You Don’t Measure, You’re Just Guessing! ™ Do the right thing… Best training… Prove you delivered on your promises… Pricing your work correctly… Do more testing & measuring… No silver bullets… Create more foundational partnerships… Less warranty claims, more sales… • NCI’s Summit Takes A Personal Approach • Total HVAC System Rating • How to Stand Out in Sales and Marketing ALSO IN THIS ISSUE:MAY 2022 3HVACTODAY.COM MAY 2022 VOLUME 6 NUMBER 5 HIGH-PERFORMANCE HVAC TODAY TM SUMMIT 2022: Highlights from This Year’s In-Person Summit Event From the opening general session through the awards banquet, here are the highlights from Summit 2022. 14 DEPARTMENTS Today’s Word .........................................................................................4 High-Performance Product Review ...............................................5 NCI Update .........................................................................................23 HVAC Smart Mart ...............................................................................24 Ad Index ................................................................................................25 One More Thing ................................................................................26 10 TECHNICAL: Total System HVAC Rating with ComfortMaxx Verify™ David Richardson shows how you can perform a complete HVAC system rating using ComfortMaxx Verify software. 19 SALES AND MARKETING: Standing Out in Your Market with High Performance A recent readership survey unveils how High-Performance HVAC Contractors separate themselves from competitors. 6 PARTNER SPOTLIGHT: Why Does High-Performance HVAC Matter? Five NCI partners gathered during Summit 2022 for a roundtable discussion on the importance of performance and its impact on the industry.chaos of summer ensues. Training Up: Training should be on-going, especially in the spring before the summer mad- ness hits. Think about having some kind of pro- gram to get new hires trained as does Tom Hearn of Hearn Plumbing and Heating (ncilink.com/ ICYMI0406). There are also on-going train- ing options for existing team members (ncilink. com/ICYMI1216). Training might even include using some of those golden nuggets you pick up from attend- ing events like the High-Performance HVAC Summit. Take advantage of the slower time to go over your notes from such events, and may- be pick one or two things you can put into place quickly. This way it becomes routine when the busy season hits. In this issue we have the key highlights from Summit to remind you of your time there. Plus David Richardson shares an article based on his Summit presentation, “Total HVAC System Rating Using ComfortMaxx Verify™.” Marketing Up: Many marketing ex- perts believe that direct mail postcards are effective for letting your customers know it’s time to prepare for warmer weather. If you already use social media to let your community know about your ser- vices, think about shifting your focus to let them know it’s time to get their homes ready for summer. Oh, by the way: those same marketing exec- utives will tell you that promotion isn’t always about what you sell. Its also about relationship building (ncilink.com/SM-VHP). So are you ready for Summer Madness Mode? It’s almost here for many of us and is already heating up for others. Have a great busy season! F or some contractors, especially those in the south and southwest, May is already heating up and throwing them into “Sum- mer Madness Mode.” For the rest of the country, madness mode is coming. And fast. For many HVAC businesses, spring is the slowest season. It is usually a time to get caught up from the chaos of the previous winter, take a moment to assess the current state of the busi- ness, re-stock inventory, and start planning for a busy summer. It’s during these “shoulder months” that busi- ness owners, who capitalize on this slow-down by putting together a game plan for the summer, will almost always come out ahead. Below are three simple strategies HVAC companies can use to get ready for the rush of summer. Staffing Up: In this current job market, hir- ing technicians (ncilink.com/hiring) is chal- lenging to say the least. The competition for hir- ing quality people is at an all-time high. In preparing for summer you should look at your seasonal data from years past to help you determine how many people you’ll need this summer. Knowing the numbers will allow you to come up with a hiring plan so you can appropri- ately budget for hiring bonuses, additional bene- fits, or other perks. It may also allow you to begin your hiring pro- cess earlier than your competition. That may give you a bigger talent pool from which to choose. It also has the advantage of bringing in new em- ployees to train and learn your systems before the 4 MAY 2022HIGH-PERFORMANCE HVAC TODAY It’s Time for Your Pre-Summer Prep: Are You Ready? TODAY’S WORD By Mike Weil Mike Weil is editor- in-chief and director of communications and publications at National Comfort Institute, Inc. Contact him at ncilink. com/ContactMe. SHOULDER MONTHS LIKE MAY ARE IDEAL FOR YOU TO PUT TOGETHER A GAME PLAN FOR SUMMER.Contractors can then purchase NCI Certified System Performance packets through ComfortMaxx™ in increments of five. Each packet is good for one System Certification in either heating or cooling mode and is shipped to the contractor. They will also receive a customer-facing sales tri-fold, a customer brochure, and system certification labels. To certify a system, the contractor per- forms a ComfortMaxx Verify test, typical- ly after a new installation or renovation work is complete. ComfortMaxx performs automated quality assurance on test in- puts and checks four key performance in- dicators: fan airflow, total external static pressure, equipment performance score, and system performance score. If the system performance meets the required thresholds for silver or gold level certification, the option to certify system performance is presented. The contractor then enters the unique serial number for their certification pack- et to generate a digital certificate that the customer can access and print 24/7 at ncicertified.com . Lastly, the contractor applies certifica- tion labels to the equipment and the pro- cess is complete. The customer now has peace of mind that their new or renovat- ed system is performing in line with their expectations and has the 3rd-party cer- tification to prove that, adding value to their home. Contractors can learn more at ncicer- tified.net . -- By Ben Lipscomb, P.E. NCI Certified System Performance Program National Comfort Institute (NCI) launched a new program that allows High-Performance HVAC contractors to test residential system performance and then third-party certify those results. This allows contractors to prove that they are delivering high-performing systems to their customers. NCI Certified System Performance is a complete package including soft- ware-based performance testing and physical certification materials. To get started, you’ll need at least one individual in your company certified by NCI in Residential System Performance. It also requires a subscription to NCI’s ComfortMaxx Verify™ software. MAY 2022 5HVACTODAY.COM HIGH-PERFORMANCE PRODUCT Written by HVAC Professionals, for HVAC Professionalsasking our partners what high-perfor- mance means to them and why. THE IMPORTANCE OF HIGH-PERFORMANCE Robin LeBaron: For Pearl Certi- fication, our goal is to help improve the US housing stock. Four-fifths of the U.S. housing stock was built more than 20 years ago. If you think that’s before the era of modern code, you can see how much room there is for improvement. What we want to push is having the best improvements possible. In that sense, we see our partnership with NCI as foundational. Why? Because NCI is driving where the entire con- tracting industry should go but is not there yet. Chad McAllister: From a distri- bution point of view, our mission is to grow our sales, not warranty claim issues. We want to work with HVAC con- tractors who know how to install equip- ment properly and understand the need to test those in- stallations to ensure they are working correctly, delivering the comfort con- sumers want, and saving energy. We see the training and the ap- proach to selling highly performing systems that NCI espouses as a big plus for our contractors, their custom- ers, and us. Colleen Keyworth: We work with contractors to improve the digital as- pects of their business, marketing, and technical best practices. Around 80% of this industry consists of smaller contracting companies that won’t grow without these best practices. Every- body wants to find that silver bullet, but they don’t have the craft of contract- ing down well. That’s part of a growth problem. For Online Access, having a part- nership with an organization like NCI that values training, building the craft, and providing those resources is very important. Rodney Koop: To me, high perfor- mance means contractors know how to do the right thing for consumers and employ fully educated technicians in their trade. Without understanding this, contractors are less craftsmen and more laborers. At The New Flat Rate, Inc., we under- stand that we are at odds with much of the industry. Too many contractors don’t un- derstand the importance of how to price their work properly. Many don’t T he days and nights of every HVAC contractor are filled with challenges and con- cerns that include business worries, technical evolution, legisla- tive changes, environmental issues, and more. Add to that the acute short- age of technicians and how to attract younger people into the industry. During the 2022 High-Perfor- mance HVAC Summit held in Scotts- dale, AZ, in March, the editorial team of this publication sat down with sev- eral key National Comfort Institute (NCI) partners. The goal was to talk about the importance of the high-per- formance approach and share ideas on everything from why they team up with NCI to helping contractors over- come issues. This was the first time we held a roundtable event during Summit, and we wanted to share the results of these candid conversations with you, our readers. Participants included: z Dominick Guarino – National Comfort Institute z Colleen Keyworth – Online Access, Inc. z Rodney Koop – The New Flat Rate (TNFR) z Robin LeBaron – Pearl Certi- fication zChad McAllister – R.E. Michel z Ben Middleton – Goodman Manufacturing. The conversation began with us 6 MAY 2022HIGH-PERFORMANCE HVAC TODAY PARTNER SPOTLIGHT By Michael Weil Supplier Viewpoints: Why Does High-Performance HVAC Matter?Industry as well. That is an evolu- tionary change from how this indus- try has always worked. So even with all the changes flying at this industry, I feel that contractors need to return to the industry’s origi- nal focus: being a skilled trade. CHANGE ADAPTION MEANS PARTNERSHIP Robin LeBaron: I complete- ly agree with Ben. I would add in the need to develop best practices and training contractors on how to adopt these skills. I love that NCI is a training ground for contractors. They may be at the small end of the spectrum, but they’re hungry for growth and want to do it in the right way. That’s exciting because our take on the industry is that the top end of the spectrum is not nearly as large as it should be to meet the growing demand. NCI is helping to solve that problem. That helps us as well because we want better contractors in our network. Chad McAllister: That very much falls in line with what we’re looking at as a distributor. NCI attracts top-level contractors, as do most best practice groups. We hope that supporting such groups helps them attract more people into the high-perfor- mance realm. We need more con- tractors to see per- formance as testing, measuring, and diagnosing HVAC sys- tems, then verifying their results and fixing problems. That is an important dynamic that goes well beyond just installing equipment. As an HVAC distributor, we love people who install HVAC systems, but we love them even more when we don’t have warranty or other problems with their work. Colleen Keyworth: In addition to all the technical expertise, contractors also need best prac- tices for business and marketing. Having a well-rounded busi- ness approach helps contractors set themselves apart from competitors and do what they must to stay on top of their game. Ben Middleton: As an equip- ment manufacturer, it is natural for our focus to be on the product. But at a recent NCI conference, Good- man’s Global Group president Satoru Akama said that manufacturers take pieces of metal and plastic and put them together into a box. He then said it’s the HVAC contractors who bring systems to life. I think that is so very true. I also be- lieve that what gives our equipment its reputation and allows us to offer the types of warranties and support that we do is the expertise in the field. But there are challenges to this. The United States is one of the least HVAC-regulated countries globally, making it very easy for anyone to be- come a contractor. That has its pluses and minuses. One of the negatives is that consumers have little protection. It’s not plug-and-play. Manufac- turers rely on contractors primarily even care. There is much lip service regarding the truth and quality of how well systems operate. That has to change. CHANGES KEEP COMING Ben Middleton: It’s no secret that we live in a time of accelerated change and transformation. Think about all the technological advancements, glo- balization, and other factors that are accelerating change throughout the world. Our industry has been shielded for a long time because North America is the only place that pri- marily uses ducted systems in residen- tial applications. Now you see manufacturers from all over the world importing non-ducted solutions in a quest for better efficien- cies. You also see significant changes in regulations that impact the entire HVAC supply chain. With all that going on, contrac- tors need organizations to help them adapt. For example, just because a contractor can work on a ducted sys- tem doesn’t mean they know how to install a geothermal system. Just be- cause they can work on a geothermal system doesn’t mean they can work on a hydronic system. There are so many technologies to- day that nobody can be expert in all of them. Contractors need help. I see the HVAC Industry evolving into one made up of specialists, just like in the medical industry. They have gener- al practitioners who refer us to spe- cialists to get at the root of whatev- er medical issue we are having. I see that happening in the HVAC MAY 2022 7HVACTODAY.COMused the “beer-can-cold” rule for in- stallations. Back then, we could put six 10-SEER condensing units in the back of a pickup truck, slam them into six houses, and feel like we had good installations if the air coming out of the registers was beer can cold. Now through leg- islation calling for 13 SEER min- imums, high-efficiency products have become more complicated. I am talking about the use of inverter drives, variable refrigerant flow tech- nologies, etc. Today, we are looking at the new SEER Two standards and A2L refrigerants. The margin for er- ror is so slim that contractors who aren’t using best practices will be left on the sideline. And I’m talking about best practic- es like those taught by NCI – testing, measuring, and diagnosing issues using data. I feel that if contractors don’t train in these things, there will come a point when they cannot keep up and stay in business. Robin LeBaron: Another huge factor in all of this is the move toward all electrification. That accentuates ev- erything Chad just said. It adds to the complexities of HVAC contracting. As I talk to state officials about such poli- cies, I still hear a lot of interest in con- sumer rebates. This approach is the age-old method for helping customers afford higher-efficiency products. But it doesn’t necessarily work and so pro- grams come and go. In my opinion, the testing-in and testing-out approach of high perfor- mance should be an important part of public energy savings inititiatives. Colleen Keyworth: Generally, homeowners don’t care unless it af- fects their pocket- books. Utilities would have to provide sever- al rebates or savings each month to get real consumer attention. Otherwise, consum- ers will always default to price. PRICING, PRICING, NOT PRICING Ben Middleton: I think the big message we should get out to the con- tracting community is that it’s NOT pricing; it’s affordability. We can talk about affordable quality with fi- nancing instead of being worried about sticker shock. This industry has been so resistant to fi- nancing. If you look at every other indus- try — automobile, fur- niture, roofing, and window industries, for example — each embraces financing wholeheartedly. For whatever reason, the HVAC in- dustry has a hard time with the idea of talking about payments versus the big ticket. What it comes down to is compar- ing actual performance to equipment design. Homeowners won’t get prom- ised efficiencies or Btu capacities if contractors don’t install everything correctly. When that happens, the customer will be unhappy. This leads to 95% of the warranty calls that we process being installa- tion-related. They are not equip- ment-related. So I think the idea of high-performance contracting is having the skills necessary. And I reiterate that this goes back to the for assistance to make systems work. That is why we need different certifica- tions and different levels of recognition so that homeowners and other people can see the quality and be confident they are getting what they pay for. THE GOVERNMENT, UTILITIES, AND MORE Robin LeBaron: I find it very in- teresting to speak of certifications re- garding the high-performance ap- proach. Why? Because its path leads toward energy savings. Energy sav- ings is a sticky wicket. We’ve spent a lot of time not play- ing in the energy sav- ings public policy space. Instead, we fo- cused on developing a market-based mod- el because we think that’s the right basis on which to build. However, what has been happening at the federal level over the last year has made us revisit our market-only approach. The government is focus- ing tremendous resources on energy savings. That is happening on two di- mensions: how to reduce overall en- ergy consumption and reduce con- sumption at times of peak load, which is what utilities care about. This government focus creates fur- ther opportunities for NCI and Pearl to collaborate because the public pol- icy space needs to be more aware of the impact and benefits of high-per- formance HVAC contracting. Chad McAllister: As far as the high-performance contractor is con- cerned, I think it will have to be the standard. Twenty years ago, when I got into this business, contractors 8 MAY 2022HIGH-PERFORMANCE HVAC TODAY PARTNER SPOTLIGHTMAY 2022 9HVACTODAY.COM PARTNER SPOTLIGHT bedroom. None of us really thinks about resale value in terms of insula- tion, air sealing the HVAC, and so on. I recently read about widespread, massive buyers remorse. Everybody buys sight unseen, and then they’re like, ‘what the heck did I buy?’ Having something like the system certification that NCI is now offering can help change that. I think there is an opportunity to change the equation and raise the bar in contracting. Rodney Koop: High-Performance HVAC contractors are the cream of the crop in quality practices. But they are outnumbered by bigger companies. We want to see that change. That can only happen if we work better togeth- er and if everyone in the supply chain does too. way, but even that isn’t effective if con- tractors don’t understand current re- tail selling methods. What does that mean? Retail think- ing is based on what value a contractor brings to the table and what price the market will bear. On the other hand, wholesale thinking is based on mark- ing up the cost. Robin LeBaron: It also has to do with customer education and ensuring that they see the high-performance contracting approach as an invest- ment that will generate a return after selling the house. As homeowners ourselves, we have an eye toward resale when thinking about making improvements. This is true when replacing kitchen cabi- nets or putting in a pool or a master concept of specialization because of how complex everything is today. Colleen Keyworth: As true as that is, it is all for nothing if contrac- tors don’t price their work correctly. We find very few HVAC contractors are charging what they should. WORKING TO MOVE MORE TOWARD HIGH PERFORMANCE Robin LeBaron: The proper pric- ing issue is a fundamental problem and crucial for all stakeholders in the industry to work on together. Con- tractors must become better at pricing their work. Rodney Koop: For high-perfor- mance contractors to be effective in the long term, they must be able to make money. Flat rate pricing is one Next >