ALSO IN THIS ISSUE: • Thermal Storage and Ice Banking Systems • How to Create Custom Air Upgrades • 2022 Contractor Spotlight Retrospective: Lessons Learned COMMERCIAL HVAC MARKET OUTLOOK 2023 hvactoday.comJANUARY 2023 HIGH-PERFORMANCE HVAC TODAY TM If You Don’t Measure, You’re Just Guessing! ™MANAGEMENT: 2023 Commercial Market Outlook Economists see the New Year as a potentially great year in the commercial HVAC space. But there are some indicators you should heed. DEPARTMENTS JANUARY 2023 3HVACTODAY.COM Today’s Word .........................................................................................4 High-Performance Product Review ...............................................5 Contractor Spotlight: 2022 Retrospective .................................6 NCI Update .........................................................................................23 HVAC Smart Mart ...............................................................................24 Ad Index ................................................................................................25 One More Thing ................................................................................26 TECHNICAL: Thermal Storage and Ice Banking Systems Historically, these commercial systems work well until build- ings undergo redesigns. Then bad things can happen. 1015 JANUARY 2023 VOLUME 7 NUMBER 1 HIGH-PERFORMANCE HVAC TODAY TM MANAGEMENT: How to Create Custom Air Upgrades NCI’s David Richardson talks about the “SMART(R)” choice of adding these capabilities to your high-performance business. 19measurement instruments. CULTURE MATTERS The right culture is also crucial for creating at- tractive, high-paying careers with flexible hours. Incentivizing performance and creating perks are essential to attracting younger techs. SUPPLY CHAIN ISSUES The U.S. is still trying to solve shortages from manufacturers, distributors, and contractors. Economists predict that 2023 will be a better year as supply chain issues sort themselves out. Still, in the meantime, as High-Performance Con- tractors, you need to step up your game when it comes to working with your suppliers and com- municating with your customers. Remember that great service matters! HIGHER CUSTOMER EXPECTATIONS The pandemic pushed the U.S. workforce into home-based offices. Today many companies are operating hybridly with their employees working partially at home and in the office/workplace. A di- rect result is increased continued demand for bet- ter indoor air quality, improved comfort while sav- ing energy, and more throughout the coming year. ENERGY REDUCTION The Greening of America is being pushed through government regulations and consum- er demand. New refrigerant laws, electrification, lower carbon emissions, and more are high on the agenda, and will continue in 2023. As High-Performance HVAC contractors, you sit in the catbird’s seat. With your training and prac- tices, 2023 should be a great year. Make it even better by attending the High-Performance Summit in April. I hope to see you there. S o much has happened in the past year that impacted the HVAC Industry. As 2023 begins, I wonder which trends will continue, what others are coming down the pike, and what those of you in the High-Per- formance Contracting segment of the industry should be on the lookout for. Here are seven trends, not necessarily in order, that I see impacting the trades this year. ATTRACTING AND RETAINING TECHS We live in a time that is seeing a vast exodus of people retiring from the industry. There is concern over young people’s lack of interest in the trades as a career. This remains a key issue. It is incumbent on individual companies to de- velop and work recruitment strategies and find ways to attract young people in the HVAC trades. It is also an industry issue that requires the team- work between every channel, the trade associa- tions, and affiliated training organizations. TECHNOLOGY TRENDS One thing that can help attract young peo- ple to the trades is HVAC technology. From the tools and instruments your HVAC company uses to the Smart Technology built into building and equipment, the HVAC Industry certainly offers the “cool factor” seen in other trades and career paths. Be sure to build a culture of training so in- coming talent knows how to use the tools and can present to customers as professional craftsmen. Measuring performance is important. Younger people want to know where they are and how they can advance. Technology will continue impacting our in- dustry throughout 2023 and the years to come. Watch out for improvements in geothermal heat pumps, smart thermostats, zoning, and test-and- 4 JANUARY 2023HIGH-PERFORMANCE HVAC TODAY Happy New Year: Here are Seven Trends to Expect in 2023 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.HVACTODAY.COM racy specs when used within its design limits. Remarkably it gave good results even when we pushed those limits. We don’t always have the option to measure within published constraints in the field, and it’s comforting that you can still get a reasonable measurement in those situations. Perhaps more impressive than the ac- curacy is its ease of use. The TrueFlow uses a mobile app to walk you through the measurement process. Within a few minutes, you get an accurate airflow mea- surement and a report containing diag- nostics based on static pressure measure- ments — an excellent value-add! It’s clear that TrueFlow is a powerful tool for a service technician or installer to diagnose or verify airflow. What was unexpected is that it’s easy and quick enough to use as a sales tool. The Digi- tal TrueFlow can clearly show customers where the deficiencies are in their cur- rent system, providing evidence-based support for system renovations, with or without equipment replacement. For more information, go to ncilink. com/TECTrueFlow. — By Ben Lipscomb, P.E., NCI director of engineering and utility services TEC DIGITAL TRUEFLOW SOLUTION A few months ago, NCI’s own David Richardson and I visited The Energy Con- servatory (TEC) in Minnesota to closely examine their Digital TrueFlow Air Han- dler Flow Meter . This product is a signif- icant redesign of their original TrueFlow, which was revolutionary for its time. Still, it pales compared to the new model re- garding user friendliness and versatility. After our visit, I am confident that the TrueFlow is the most accurate way to measure airflow through a residential air handler or furnace in the field, even in challenging measurement situations. David and I and the TEC team put the product through its paces in their NIST-certified “ Chamber of Truth .” The TrueFlow performed well within accu- HIGH-PERFORMANCE PRODUCT Written by HVAC Professionals for HVAC Professionals JANUARY 2023 5HVACTODAY.COMer comfort issues using the high-per- formance approach of looking at the entire structure as part of the HVAC system. The economic and societal situation of 2022 directly impacted a company’s ability to solve these issues, and we wanted to learn how contrac- tors worked to overcome them. In 2022, we spotlighted the follow- ing companies: z James A. Wheat and Sons, Gaithersburg, MD z Hearn Plumbing and Heating, Madison, OH zSoCalAirflowPros, Orange County, CA zIntegrity Test and Balance, Tra- verse City, MI zLakeside Service Company, Brighton, MI z Bailey’s Heating and Air, Modesto, CA. COMMON GROUND What do all six of these companies have in common? Five are in the res- idential-light commercial service and installation markets; one serves most- ly commercial customers. All of them, at some point, wanted to find bet- ter ways to help their customers by solving comfort and energy efficien- cy problems and then be able to prove how they did it. The result was a re-focus on contin- uous training of their field service and installation teams. For 45-year-old James A. Wheat and Sons, their focus from day one was on providing the best customer comfort in the Gaithersburg area. In the company’s early days, they subbed out any necessary ductwork. It wasn’t until Jeff Wheat and his brother at- tended a balancing certification class taught by National Comfort Institute (NCI) in the late 1990s that they dis- covered the importance of properly testing and measuring before and af- ter doing the work. That led to them to do all their own ductwork and changing their business model. Though training was always necessary, Jeff Wheat says it is more important now than ever. “From my perspective,” Wheat says, “if I don’t train my people, who will? Frankly, I consider spending time and money on training an investment in our team so they can go out and do the work correctly.” Tom Hearn of Hearn Plumbing and Heating agrees. This 76-year- old company slowly began to change from a mostly one-man operation over the decades to a small-but-growing I n 2022 so many things were impacting the world in which we live and work. The major head- lines focused on pandemic-caused supply chain issues and crazy high inflation that was out of control. Head- lines also focused on how the Federal Reserve increased interest rates to counter it. Also, in 2022, wages and benefits, according to the U.S. Department of Labor, rose to a 20-year high, gaso- line prices soared after Russia invad- ed Ukraine, and U.S. mortgage rates climbed as cryptocurrencies crashed. It was a strange year. We approached six High-Perfor- mance HVAC contracting firms to find out how these events impacted their businesses as part of a series called “Contractor Spotlights.” These articles typically focus on contracting com- panies that work hard in the realm of High-Performance HVAC contracting in terms of measuring, testing, and diagnosing using static pressure and other measurements. We also address successes and chal- lenges they have addressing custom- 6 JANUARY 2023HIGH-PERFORMANCE HVAC TODAY CONTRACTOR SPOTLIGHT By Mike Weil 2022 High-Performance HVAC Contractor Spotlight Retrospectivein more jobs and better profits. That is when we decided to get 100% of our team trained and certified. “But that meant making a lot of changes in how we did our work,” he adds. “It also meant investing heavi- ly in our people and tools. The magic is in our commitment and hard work.” From a commercial perspective, Kevin Heikkila’s company, Integrity Testing and Balancing, finds that without proper technical training, he and his team cannot stay on the cutting edge and provide the testing and bal- ancing services his customers require. “I know how important it is to stay ahead of the curve, improve ourselves, and serve our customers better,” Heik- kila says. “I want to continue to be rec- ognized as a leader in the TAB indus- try in Western Michigan.” AIR UPGRADES & DUCT RENOS HELP BATTLE PANDEMIC WOES Interestingly enough, all six of our spotlight contractors say they experi- enced growth despite the impacts of the COVID-19 pandemic. John Boy- lan attributes that growth to the com- pany’s commitment to training and developing internal processes to sup- port a high-performance approach. He says that led to closing more air upgrades, especially with rising costs for new HVAC equipment and supply chain shortages. The air upgrade sale and duct ren- ovations have “added nicely to our overall profits,” Tom Hearn adds. “The air upgrade approach helps us to help take care of issues that can prolong system life and add comfort to the house,” Hearn says. “Plus, air up- grades increase the average ticket for a project and our overall gross margin on replacement. The best news is that it helps customers save on energy.” At Bailey’s Heating and Air, owner Mitch Bailey says it’s always about the ductwork. “In addition to doing load calculations, we measure the entire existing system to see how it performs before we do anything else.” Bailey also says that his goal is to “stop swapping boxes.” Part of that is because “boxes” aren’t as readily available due to supply chain issues. Even before he says they pushed back against swap-outs. “Our industry needs contractors to test in and test out. They should take static pressure readings, measure to- tal system and room-to-room airflow, and do load calculations. Help the cus- tomer see how their system operates before you make any changes and then show them what their system is doing after your changes.” Does this add to their bottom line? Bailey says yes, and most of his re- placement and renovation jobs save customers around 30% in energy use costs! DIFFERENCES DO NOT MATTER The 2022 “class” of contractors we spotlighted are from across the country High-Performance HVAC firm that started training its people in perfor- mance-based service and installation. He says training became an essen- tial cornerstone to the changes in the company. “In addition to business management training, we began en- rolling our technicians in technical training from manufacturers, distrib- utors, and National Comfort Insti- tute,” Hearn adds.” Training is also the cornerstone of SoCalAirflowPro’s approach to High-Performance Contracting. Own- er Cody Novini says he’s been able to grow his one-person business in just seven years into a company that em- ploys 36 people and fields 25 service and installation vehicles. “Airflow is the most important part of a heating and air conditioning sys- tem,” he says. “That is why our name is Airflow Pros. Early in my service tech- nician career, I understood that stat- ic pressure is the key to getting these systems to work right, achieve proper flow, and make every room comfort- able per customers’ wishes.” John Boylan of Lakeside Service Company adds that it wasn’t un- til 2014 that he and his company got serious about airflow testing, mea- surements, and diagnosing invisible problems. “Before that, we participated only in a smattering of NCI air balance and combustion classes. The light bulb went off for me when our dabbling in testing and measuring began bringing JANUARY 2023 7HVACTODAY.COM 3/80%,1*someone when you have a question. That is how you build relationships and increase your knowledge about your partners, customers, business, and projects. Those relationships help build trust, and we all know how im- portant that is.” LESSONS LEARNED One of the most challenging les- sons most of our contractor spotlight companies say they faced was how to price their work correctly. Tom Hearn says this is true for every contractor out there. “But when you are operat- ing as a High-Performance Contrac- tor, proper pricing is key to making it work. After all, if we are testing, mea- suring, and diagnosing problems cor- rectly, we provide customers with great value. That is worth charging the right price.” Hearn adds that another lesson he learned implementing high-perfor- mance processes was to “make it part of how we usually run our processes in the company. Testing and measuring are required. They are not negotiable.” Culture is another common factor among these companies. Jeff Wheat says a culture focused on delivering High-Performance HVAC systems to customers is the mission. “But it’s not like we are there yet. It is a chang- ing and evolving process that requires someone to lead it. “For me, what makes things suc- cessful is when our field team under- stands and believes in it. It’s always a matter of training them and keeping them up to date on everything.” Cody Novini at SoCal Airflow Pros agrees. “NCI’s high-performance con- tracting approach is all we do. Testing, measuring, and diagnosing airflow, static pressure, and other readings change you from being a contrac- tor who guesses into a true pro- fessional,” he says. Novini sums up the lessons from implementing a perfor- mance approach into his busi- ness: “No matter where you are in your career – a tech fresh out of school or a grizzled veteran -- you need always to be a student. You should always be willing to learn. You will be learning until the day you die, or the industry will surpass you.” Ultimately, these Contractor Spot- light stories show other contractors that High-Performance HVAC works if you make it part of your daily pro- cesses and culture. The companies highlighted here are proof that it is do- able and profitable. OPPORTUNITY KNOCKS As you continue working toward im- plementing this culture and approach into your company, don’t be surprised if you receive a phone call or email asking you to share your story. It’s an opportunity to share your successes and help raise this indus- try’s professionalism. and differ in terms of size and back- grounds. Some are multi-generational companies; others are much younger. Some achieve multimillions in annual revenue dollars, while others achieve much less. And as I’ve said, one is a commercial testing and balancing com- pany, while all the others serve the res- idential/light commercial marketplace in their areas. These differences don’t matter. Each company has several things in common: zThey all have what I’ll call a ser- vant-leader mindset. This means they focus on provid- ing the service their customers want and need zCompany owners believe in training and invest heavily in it zThey treat employees as family and work to create career paths and growth opportunities for them. Training is a big part of that growth zEach company’s management believes in equipping their teams with the tools and instru- ments they need to conduct system performance testing correctly. How they approach high perfor- mance also differs from company to company, but they all say it requires dedication, perseverance, and the ability to learn from mistakes. Kevin Heikkila of Integrity TAB says, “The key is how our team lis- tens to customers, how they talk with them, and how they ask open-ended questions. “Knowledge is the secret weapon to help you help your customers. It will bring you more business. It helps cre- ate your success. So be tenacious in your efforts, and don’t hesitate to call 8 JANUARY 2023HIGH-PERFORMANCE HVAC TODAY CONTRACTOR SPOTLIGHTNext >