Industry News

In their new Amazon Bestselling book, ‘Make More Money: 12 Profit Pillars for HVAC Contractor Success’, author Scott Ritchey and contributing author Gary Kerns give HVAC business owners the tools they need to succeed and be in the 10% of HVAC businesses still in business by year 10, and thriving. Thirty to 35% of HVAC Read More

In their new Amazon Bestselling book, ‘Make More Money: 12 Profit Pillars for HVAC Contractor Success’, author Scott Ritchey and contributing author Gary Kerns give HVAC business owners the tools they need to succeed and be in the 10% of HVAC businesses still in business by year 10, and thriving.

Thirty to 35% of HVAC ownerships fail by year three, 47% by year four, and a staggering 90% of them fail within 10 years. There’s a single key reason most HVAC businesses fail: most HVAC contractors lack the business acumen needed to understand the financial ins and outs of running a successful business. In their new book, Make More Money: 12 Profit Pillars for HVAC Contractor Success, which recently became the #1 Amazon Kindle Bestselling book in Heating & Air Conditioning Engineering and Contracting Engineering, author Scott Ritchey and contributing author Gary Kerns give HVAC business owners the tools they need to succeed and thrive.

When Ritchey entered an HVAC business, he soon discovered the company he was working with was losing money, despite taking in about $2 million in revenue each year. The reason was simple: the company just didn’t understand that mark-up does not equal margin, and that an HVAC business has varying overheads between its different departments. This lack of business knowledge showed up in their pricing methods, resulting in a two percent loss in the company’s financial performance.

Worse, the company was making the fundamental mistake of thinking that all construction jobs were the same. Drastic change was needed to ensure that all jobs were competitively priced, yet would yield above-average net profits. With new visibility on each department, Ritchey helped the company see which types of construction and service work were the most profitable. By focusing on these more profitable areas, the company grew from $2 million per year to $6.5 million per year in a five-year period.

Ritchey became inspired to help other contractors suffering from the same lack of business acumen. To date, he has worked with about 400 companies and thousands of individuals, enabling them to learn important financial principles that all guarantee success in the HVAC contracting industry.

Ritchey says, “I have seen too many HVAC businesses fail by not having the financial knowledge they need to succeed. My new book will give HVAC business owners the tools they need to succeed and thrive.” He adds, “It is my goal that my readers make it past year ten in their business, instead of becoming part of the 90% of HVAC businesses that fail.”

For more info, contact Scott Ritchey at sritchey@plumbers-supply-co.com.

Scott Ritchey

Scott Ritchey is the vice president of Plumbers Supply Company. He has a demonstrated history of working with and developing sales and leadership teams in the HVAC and plumbing wholesale industry. Ritchey is skilled in P&L analysis, budgeting, and strategic planning. He has an M.B.A. focused in business and managerial economics from Sullivan University. He is a speaker, trainer, and author.

Gary Kerns

Gary Kerns is the president and owner of Superior Heating and Air Conditioning, Inc. His background has given Gary a unique outlook on the HVAC contracting industry. After high school, he joined the Air Force. After his stint in the Air Force, Gary became an apprentice with a commercial HVAC company. It was a perfect fit. Gary’s talent as a top-notch service mechanic came to the fore, and he became enamored with the idea of starting his own HVAC company and did.

Talk about a tease. Navien will be introducing two new innovations at AHR 2019 in Atlanta. Highlighted at the front of the Navien AHR show booth #B3075, these two new products will continue the expansion of Navien’s line of high-efficiency condensing tankless water heaters, combi-boilers and boilers, following the release of the NFB series fire Read More

Talk about a tease. Navien will be introducing two new innovations at AHR 2019 in Atlanta. Highlighted at the front of the Navien AHR show booth #B3075, these two new products will continue the expansion of Navien’s line of high-efficiency condensing tankless water heaters, combi-boilers and boilers, following the release of the NFB series fire tube boilers in 2018.

Be sure to see the latest in Navien innovation at AHR booth B3075, January 14-16, 2019. NavienInc.com

Apple Valley, Minn. — Uponor North America won the prestigious Tekne Award from the Minnesota High Tech Association last Thursday, recognizing the company for introducing water management to the Internet of Things. The trophy in the “building design and infrastructure” category honored Uponor for Phyn Plus, the innovative water monitoring and shutoff system launched in Read More

Apple Valley, Minn. — Uponor North America won the prestigious Tekne Award from the Minnesota High Tech Association last Thursday, recognizing the company for introducing water management to the Internet of Things.

The trophy in the “building design and infrastructure” category honored Uponor for Phyn Plus, the innovative water monitoring and shutoff system launched in partnership with Belkin earlier this year.

The Phyn Plus team, from left to right: Scott Zins, Cassie Schmid, Eric Skare, Dena Mayne, Jim Finch and Brynn Johnson

The judges cited Uponor for its “intelligent plumbing and climate solutions,” heralding the company for making a positive impact by “conserving water and energy, supporting the future of skilled labor, and creating healthier places to live and work.”

Since its inception in 2000, the annual Tekne Awards have celebrated the best of Minnesota’s science and technology industries, ranging from advanced manufacturing to healthcare and agricultural technology. For more information: https://tekneawards.org/

Arlington, Va.—The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) held its inaugural Leadership Forum November 11-13 in Tucson, Ariz., during which it elected its new officers and presented awards to industry leaders. “Without these dedicated industry leaders, AHRI would not be the recognized voice of the industry and reliable source for information,” said AHRI President and Read More

Arlington, Va.—The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) held its inaugural Leadership Forum November 11-13 in Tucson, Ariz., during which it elected its new officers and presented awards to industry leaders.

“Without these dedicated industry leaders, AHRI would not be the recognized voice of the industry and reliable source for information,” said AHRI President and CEO Stephen Yurek. “We are very grateful for their service to AHRI and the HVACR and water heating industry.”

AHRI’s new Chairman is William Steel, President & CEO of Bard Manufacturing Company, an Ohio-based manufacturer residential and commercial heating and air conditioning equipment.

The AHRI Board of Directors is as follows:

Officers
• Vice Chairman: John Galyen, President, Danfoss
• Vice Chairman: Mike Schwartz, CEO, Daikin Applied
• Treasurer: Ron Duncan, President, Magic Aire
• Immediate Past Chairman: Chris Peel, President & CEO, Rheem Manufacturing Co.

Directors
• Dennis Appel, EVP-Heat Transfer Solutions, Modine
• Gary Bedard, EVP, President, and COO Worldwide Refrigeration, Lennox
• R. Bruce Carnevale, President & COO, Bradford White
• Megan Fellinger, President & CEO, Morrison Products
• Elizabeth Haggerty, VP and GM, Global Ducted Systems, Johnson Controls
• Chris Nelson, President, Carrier Residential and Commercial Systems
• Brent Schroeder, President, Air Conditioning, Emerson
• Donny Simmons, President, Commercial HVACR, Ingersoll Rand
• John Swann, President, Weil-McLain
• Kevin Wheeler, President & CEO, A.O. Smith

The Richard C. Schulze Award is given for distinguished service and commitment to AHRI and the industry’s goals and objectives. AHRI congratulates:
• Darryl Denton, Trane
• Ken Fonstad, ABB
• Steve Lind, Trane
• Mark Menzer, Danfoss
• Mike Straub, Rheem Manufacturing Co.

The AHRI Public Service Award recognizes deserving individuals or organizations outside of AHRI and its member companies that have made a significant contribution to the HVACR industry. AHRI was pleased to present this award to Warren Heeley of Heating, Refrigeration and Air Conditioning Institute of Canada.

The Distinguished Service Award is AHRI’s highest honor; it recognizes individuals who are leaders in the industry and who have made significant contributions throughout their careers. AHRI honored Frank Stanonik, who retired from AHRI this year after a 40+ year career in the industry.

Stamford, Conn. — The colder weather is fast approaching, which means it is the perfect time to start getting your facility or plant ready for winter. Goodway Technologies recommends performing proper maintenance and cleaning on chiller systems after their shutdown to avoid headaches down the road. For many, being proactive with chiller maintenance in the Read More

Stamford, Conn. — The colder weather is fast approaching, which means it is the perfect time to start getting your facility or plant ready for winter. Goodway Technologies recommends performing proper maintenance and cleaning on chiller systems after their shutdown to avoid headaches down the road.

For many, being proactive with chiller maintenance in the early winter has led to better results in the spring when it’s time to start the systems up again. Performing chiller maintenance as early in the winter as possible gives facility managers the benefit of finding major damage with plenty of time to fix the problems before the chiller needs to be back in operation.

“Chillers are one of the biggest contributors to operational expenses in a facility’s HVAC system which means any problems can lead to additional costs,” says Tim Kane, President of Goodway Technologies. “Failing to perform adequate maintenance can also lead to additional repairs and a loss in production time.”

After performing maintenance, it’s a good idea to measure efficiency gains, which can show facility managers important information, including costs saved as a result of regular maintenance. A proper operating log can also help identify areas that show improvement following chiller maintenance.

Steps to Improve Chiller Maintenance

Developing a plan or checklist for chiller maintenance can be beneficial and helps you stay on track while keeping equipment running properly and efficiently.

• Step 1: Maintain a Daily Operating Log — The Federal Energy Management Program (FEMP) recommends updating the log four times a day to monitor key operating parameters that will help indicate if any problems are developing.

• Step 2: Keep Tubes Clean — Fouling and scale can reduce efficiency. Goodway offers a calculator to estimate how much money is being expended due to the presence of scale in chillers. For example, a 500-ton chiller with a moderate amount of scale deposit (0.012”) can cost an additional $7,020. Regular monitoring can help recognize when tube cleaning should take place, however it is recommended at least once a year. Pressure loss can also indicate tube corrosion. Goodway has a selection of ScaleBreak® chemical descaling solutions, mechanical tube cleaning solutions and expert consulting services to find the proper cleaning approach.

• Step 3: Ensure a Leak-Free Unit — Leaks can affect the efficiency and operation of the system while releasing hazardous refrigerants. Refrigerant levels should stay within the manufacturer’s recommended levels. An air-purge timer (increases in air-purge time may indicate a leak), checking the refrigerant sight-glass for bubbles and checking at all joints and connections with a gas analyzer are all ways to help track refrigerant levels.

• Step 4: Sustain Proper Water Treatment — Between cleanings, it is important to implement a water treatment program. Water treatment helps to prevent the buildup of contaminants on heat-transfer surfaces that can lead to loss of efficiency and also lead to the growth of harmful bacteria. Each facility is different, so it is important to speak with an expert resource to identify a proper water treatment program.
How Cooling Towers Can Boost Chiller Efficiency

While not all chiller systems include a cooling tower, if your facility has one, it should be included in your chiller maintenance plan. What many facility managers often forget is that the cooling tower’s performance also has a direct link to chiller efficiency. A survey conducted by Goodway found that 90 percent of facility managers and personnel have a documented cooling tower maintenance program in place and 85 percent maintain a daily log of critical system components. So, it’s clear that cooling tower maintenance is a top priority. In fact, for each degree that condenser supply temperature is above design specifications, chiller efficiency is reduced by two percent.

When left unmaintained, the warm water in cooling towers can promote algae growth, and flash evaporation can produce hard scale deposits or calcium fouling. Cooling tower fill acts like a massive air scrubber, coming into contact with dust, pollen and insects, which contribute to bacteria growth. This creates a breeding ground for bacteria such as Legionella. Like chillers, regularly cleaning cooling towers can decrease the chances of equipment corrosion or breakdowns and can increase plant efficiency.

Goodway carries a variety of chiller tube and cooling tower cleaning equipment that make are simple to use and can be operated by one person. The recently launched GDS-100 is a portable, clean-in-place pump system that is ideal for larger descaling cleanings, but can also accommodate smaller applications. Visit www.goodway.com for additional education and check out the wide array of facility maintenance tools available to sustain HVAC equipment.