ACHR News
search
Ask ACHR NEWS AI
cart
facebook twitter instagram linkedin youtube
  • Sign In
  • Subscribe
  • Sign Out
  • My Account
ACHR News
  • NEWS
    • Breaking News
    • New HVAC Products
    • Featured Products
    • Manufacturer Reports
    • HVAC Data
    • Legislation
    • ACHR NEWS Centennial
  • RESIDENTIAL
    • Air Conditioners
    • Furnaces
    • Residential Heat Pumps
    • Ductless
    • Residential IAQ
    • Testing, Monitoring, Tools
    • Components & Accessories
  • COMMERCIAL
    • Air Handlers
    • Rooftop Units
    • Chillers and Cooling Towers
    • Commercial Heat Pumps
    • Boilers and Hydronics
    • VRF/Ductless
    • Commercial IAQ
  • REFRIGERATION
    • Refrigerants
    • Refrigerant Regulations
    • Leak Management
  • CONTRACTOR PRO
    • Geothermal
    • Homeowner Study
    • VRF and VRV Ductless
    • Unitary Trends
  • EDUCATION
    • Training and Education
    • Business Management
    • Service and Maintenance
    • Continuing Education
    • Market Research >
      • HVAC Brand Awareness Report
      • VRV, VRF, VRVZ Report
      • Unitary Trends Report
      • Water Heat Professionals Report
    • Webinars
    • Sponsor Insights
    • eProducts Info
    • White Papers
  • EVENTS
    • HVAC Contractor Forum
    • Industry Events and Webinars
  • MEDIA
    • Videos
    • AHR Expo 2025 Videos
    • Podcasts >
      • ACHR News Podcast
      • HARDI Podcasts
      • AHR Expo Podcasts
      • ACCA Podcasts
    • Interactive Spotlights
    • Quizzes
    • eBooks
    • HVAC Talkback
  • HVAC GROUP
    • ACHR NEWS >
      • Current Issue
      • Digital Edition
      • Subscribe
    • Distribution Trends
    • SNIPS NEWS >
      • Join SNIPS NEWS
    • Engineered Systems News >
      • Join ES News
    • HVACR Directory
    • Contests
    • Newsletters
    • Contact
    • Advertise
    • My Account
HVAC Light Commercial MarketHVAC Commercial MarketCommercial ControlsBuilding Automation SystemsEnergy Management Systems

Opportunities in Building Automation

Trend Toward Integration Creates Opportunities, Challenges for Contractors

By Kimberly Schwartz
November 17, 2014

According to a recent IHS Technology report, “As countries, companies, and individuals try to curtail CO2 emissions and further reduce the consumption of energy, building automation systems (BAS) continue to increase in importance.”

And, as a result, those who understand BAS and are able to improve their clients’ overall energy efficiency are finding opportunities for growth.

Increasing Integration

Ross Nelson, general manager of Harris Controls, St. Paul, Minnesota, said his company is proof of this. Harris Controls’ parent company, Harris Cos.,
has expanded and opened BAS offices in Salt Lake City; Washington, District of Columbia; and Phoenix during the last eight years. The company typically establishes a mechanical office in the new location, and subsequently opens a BAS office.

As Harris grows, Nelson said the company is determined to stay on the leading edge while the traditional HVAC controls market shifts toward greater integration.

“There’s a fracturing of our industry between normal HVAC control and the world of system integration and, specifically, the continued expansion of the system integrator role in complexes of all different sizes and types,” Nelson said. “I’ve grown to feel very strongly that the organizations that limit their roles to HVAC control will eventually find it very difficult to grow and will face commoditization of their services.”

On the other hand, he said, “Organizations that can bridge into enterprise-level integration, and especially be able to connect into business processes, are going to thrive in the future. Integration of not just mechanical systems but also other building systems is becoming the new frontier for our industry.”

Trevor Palmer, vice president, products and marketing, Distech Controls, also stressed the entire building automation market is trending toward integration.

Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, our new smart AI search tool. Ask ACHR NEWS →

“Elements that had previously been treated in silos are now being brought together. For example, as opposed to treating lighting and blinds as separate elements from HVAC control, the market is now fully integrating these components into building automation. This trend will continue to gain momentum as the industry experiences the savings — particularly energy savings — and increased occupant comfort that a synergistic approach can offer.”

Nelson noted additional examples of integration include tying in security/card-access systems, elevator and escalator systems, and manufacturing processes that are specific to the facility. Plus, he said, a significant benefit of an integrated approach is the elimination of redundant systems.

“If we think of building and managing buildings as little, small, independent systems, then we’re building and managing and maintaining our buildings without this broader concept of how they interrelate — and where we’re putting in redundant infrastructure,” he said.

Often, he said: “Contractors install Ethernet or cabling systems that support each of their systems without thinking about the fact they all could use common networks or common backbones. So, we end up putting in all of these redundant systems with their own software packages and their own servers and their own technologies … when we could connect them, make them easier to use, and allow a building owner to essentially manage one system instead of five or six.”

Eliminating redundancy also ties into the trend of environmental responsibility that is contributing to the adoption of building automation. “In our world today, most people want to be responsible,” Nelson said. “They are looking for both the energy savings and financial savings … and many are starting to ask questions about the visualization of that.”

According to Nelson, this has resulted in visual scorecards for how a building is operating such as a kiosk located in a building foyer.

Sectors for Growth

Nelson said his company finds most of its work in the government and corporate sectors. While other experts agreed there are opportunities in the municipal and government market, they noted there are additional sectors poised for growth.

Palmer said building automation and advanced HVAC controls are becoming more popular in the school market.

Mike Holscher, senior product engineer, Jackson Systems LLC, agreed, noting, “We are seeing extensive growth in building automation in the K-12 and university markets.”

Nate Kehr, marketing manager, KMC Controls, also reported seeing “increased interest” from schools, health care facilities, and retail. Overall, he said, “Energy management needs, and the desire for reduction in utility costs, continue to drive building automation projects.”

Large buildings are “reaching saturation with regard to automation and energy efficiency,” according to Peter Dickinson, CTO, BuildingIQ. As a result, more opportunities for automation can now be found across all building types.

“Small-to-medium buildings is a market we have seen steady growth in as owners look for automated demand management solutions that can be easily implemented and don’t require extensive labor hours to operate,” Dickinson noted.

Summing it up, Cory Vanderpool, business development director, Magnum Energy Solutions, said, “The adoption of smarter building technologies, both controls and automation, can be seen across a multitude of verticals, including K-12 schools, universities, hotels, commercial office buildings, residential complexes, and even historic buildings.”

Opportunities and Challenges

With so many sectors holding the potential for increased automation and controls services, there is ample opportunity for HVAC contractors that want to work in this field. However, the increasing technology and rapidly developing markets require more contractors with specialized skillsets.

“The customers are there — it’s finding the right people that’s singlehandedly the biggest challenge,” Nelson said. “It’s really difficult to find someone that’s mechanically savvy and IT [information technology] savvy.”

According to Kehr, it’s very valuable for contractors to have “a working knowledge of IT infrastructure and basic IT processes.”

And Palmer noted the trend toward integration requires contractors to have an ever-broadening base of knowledge.

“Gone are the days when an integrator’s sole focus is HVAC. The industry now asks these same professionals be well versed in areas such as lighting, blinds, and access control. In addition, these HVAC contractors are also now largely expected to go beyond the traditional building management system to understanding and offering solutions that converge with the IT infrastructure of a building,” he said.

Specifically, Palmer said HVAC contractors need to understand all functions of a building management system (BMS); IT infrastructure/IP [Internet protocol] networks; programming; energy management calculations; and how external factors such as sun, wind, etc., influence BMS performance.

Holscher also pointed out the competition in the market can be tough on newcomers who are not as familiar with controls systems.

“There are many specialty controls companies in the marketplace that have been installing these types of systems for years, so the competition can be a challenge, depending on the specific market,” he said. “The other challenge facing contractors is getting educated on how these systems work and how to spec and install them. There are many opportunities to learn these systems through organizations such as ASHRAE or through product manufacturers.”

Yet, despite the challenges, Vanderpool urged contractors to investigate the building automation market.

“It’s high time that contractors move more into a role of controls contractor, if they are so inclined. Someone with a strong HVAC mechanical background could easily seek additional education and information about building automation,” he said. “Like anything related to technology, there are challenges, but, thankfully, the market for building automation, smart buildings, intelligent buildings, the Internet of Things, and a desire to reduce energy consumption in buildings is absolutely here and here to stay.”

Publication date: 11/17/2014

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!

KEYWORDS: building controls commercial buildings energy efficiency energy management

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

 

Kimberly Schwartz is Contributing Editor. She can be contacted at 248-703-3278 or kimberlyschwartz@achrnews.com. Prior to joining The NEWS in 2010, Kimberly worked on other BNP Media publications. She writes cover stories and focus articles. She holds a bachelor's degree in English from Brigham Young University.

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • HVAC-enrollment

    The Trades Are Back: HVACR Programs See Nearly 30% Enrollment Spike

    A new wave of future technicians is entering the pipeline.  
    News
    By: Matt Jachman
  • 2025 Top 40 Under 40

    2025 Top 40 Under 40 HVACR Professionals List

    The 11th annual Top 40 Under 40 list highlights those...
    News
    By: Hannah Belloli-Oster
  • LG Ductless Mini-Split Systems

    The 9 Types of Heat Pumps

    As the U.S. moves toward electrification, heat pumps are...
    HVAC Commercial Market
    By: Joanna R. Turpin
Subscription Center
  • Create an Account
  • Start a Subscription
  • Manage My Account
  • Sign Up for Newsletters
  • Visit Customer Service
  • Update Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to The News audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of The News or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Piggy Bank
    Sponsored byWatercress Financial

    Energy Prices, Inflation, and HVAC: What Today’s Homeowners Care About

  • Refrigerated Food
    Sponsored bySolstice Advanced Materials

    R-455A Refrigeration: A Cold Storage Solution for the Future

  • Airex Rooftop Units
    Sponsored byAirex Manufacturing Inc

    Consolidating Roof Penetrations: A Growing Trend in Multifamily HVAC Design

Popular Stories

Refrigerants-and-gauge.jpg

HVAC Industry Warns of Counterfeit Refrigerants Entering U.S. Supply Chain

U.S. Supreme Court building

95% Furnace Efficiency Rule to Get New Hearing

Data_Center_facility.jpg

HVAC Manufacturers Respond to Growing Data Center Backlash

Midea-training.jpg

HVAC Workforce Crisis Expands Beyond Technicians to Instructor Shortages

Lennox equipment

Platinum Equity to Sell Heat Controller to Lennox

View The ACHR NEWS
Centennial Anniversary Timeline

The ACHR News Timeline Chart
Submit a Letter
Submit a letter to our editors.

Events

November 6, 2025

Next-Gen Data Center Cooling: HVAC Innovation and Real-World Solutions

On Demand As AI workloads and high-density computing push traditional cooling methods to their limits, the data center industry is accelerating the adoption of next-generation HVAC technologies.

November 2, 2026

HVAC Contractor Forum

HVAC Contractor Forum Logo

The HVAC Contractor Forum is built for residential contractors navigating a changing landscape. Through peer-to-peer learning, structured dialogue, and technical case sessions, the event delivers grounded, field-tested insights for those responsible for day-to-day operational outcomes and big picture planning.

View All Submit An Event

Poll

Summer Staff

Are you fully staffed for the summer season?
View Results Poll Archive

Products

BNI Mechanical/Electrical Square Foot Costbook, 2026 Edition

BNI Mechanical/Electrical Square Foot Costbook, 2026 Edition

See More Products
Designing Systems Using A2L Refrigerant - Free Webinar - 7/22/2026

Related Articles

  • Oct. 16, 2013: Integrators Seek Differentiation in Building Automation Market

    See More
  • March 17, 2010: Cautious Optimism Prevails in Building Automation Market

    See More
  • Don Cochrane.jpg

    Cochrane Supply CFO Was a Leader in Building Automation

    See More

Related Directories

  • Efficient Building Automation Corp.

    Efficient Building Automation Corporation provides products, systems, services and support that enable our partners to deliver open and integrated LonWorks building automation solutions of unequalled quality, reliability and performance.
×

Sign Up. Stay Informed.

The #1 trusted source for the HVACR industry since 1926

SUBSCRIBE
  • RESOURCES
    • Advertise
    • Contact Us
    • Advisory Board
    • Classifieds
    • Submit a Letter
    • Directories
    • Store
  • ACCOUNT CENTER
    • Create an Account
    • Start a Subscription
    • Manage My Account
    • Sign Up for Newsletters
    • Visit Customer Service
    • Update Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing