In some ways, our industry resembles this tribe. We know what to do to improve our industry and how to do it, but often choose not to. Many continue to suffer the same price-driven death previous generations have endured. Let’s look at a recent example of how one bad habit is slowly killing the HVAC industry and one simple step to change it.

A Tale of Two Contractors

An HVAC contractor friend of mine recently shared an experience filled with frustration and anger. His company received a text from a homeowner they had provided a quote to. This homeowner, who works within the HVAC industry, informed my friend they chose another contractor who quoted larger capacity equipment at a lower price. As I asked questions to see what happened, it became obvious there were stark differences in each approach.

My friend took HVAC system performance measurements that included static pressure, airflow, and system temperatures. They used these “vital signs” to show the customer where they were currently losing equipment performance and recommended repairs to solve comfort problems. Next, they did a block load calculation of the home and adjusted the equipment’s capacity for real-world conditions to ensure proper size. Their recommendation was to correct the duct system and downsize the existing equipment based on their calculations and measurements. Their focus was on the HVAC system.

Unfortunately, their competitor approached the job like many in our industry do. And they won. They didn’t look at the existing duct system and measured nothing. There was no load calculation or consideration of the equipment’s capacity. Instead, they recommended increasing the existing equipment’s size to correct the homeowners’ comfort issues and overcome the bad duct system. The homeowner told my friend they didn’t feel comfortable going down in equipment size and putting their faith in the duct system to solve their comfort problems. This contractor and the homeowner focused on the HVAC equipment.

Misunderstanding what makes up an HVAC system is at the root of a bad habit slowly killing the industry. Both the competitor contractor and homeowner saw the equipment as the HVAC system, regardless of all the information and education my friend provided. This misconception is a reoccurring problem many in the industry face daily, leading to poor results.

A Vicious Cycle

When we focus on the equipment rather than the system, there’s a predictable cycle. See if this sounds familiar.

First, the homeowner chooses their contractor based on price because they believe all HVAC contractors are the same. If there are equipment issues or problems, the homeowner blames the contractor and complains about them.

The contractor, trying to keep prices low to compete, ignores the duct system and building. When the equipment doesn’t solve comfort problems or has an issue and prematurely fails, they blame the manufacturer and distributor.

The distributor and manufacturer defend the equipment they represent and blame the contractor for poor workmanship practices. However, because the contractor buys a lot of equipment, they replace the “problem” equipment to “solve” the homeowner’s problems. Sometimes they get lucky. Usually, they don’t.

The cycle continues as manufacturers send promotional materials to both homeowners and contractors advertising the equipment as the system. The pattern repeats.

While I’m grateful this doesn’t happen all the time, it happens more than it should. Why do we continue to be our own worst enemy and take part in a self-destructive spiral to the bottom? We blame one another instead of realizing we should all work together to solve this problem.

Everyone loses when we believe the equipment is the system. You lose because customers devalue your work and overlook your expertise. Customers lose because they believe all contractors are the same and overlook other factors affecting their comfort and equipment longevity. Distributors lose because of strained relationships with contractors. Manufacturers lose because their brand reputation suffers. Both the manufacturer and contractor continue to eat excessive warranty costs.

Isn’t it time to stop the insanity?

A Small Shift in Thinking with Big Possibilities

If you haven’t guessed by now, the small shift required is looking at the HVAC system instead of just the equipment. I believe our industry wants to improve, so we need some clarifications to ensure we’re all speaking the same language. We need to define what makes up the HVAC equipment and what makes up the HVAC system.

The HVAC equipment is the centerpiece of an HVAC system. Without it, nothing happens. It must be correctly sized and selected for the needs of the customer and building. When looking at equipment, bigger isn’t always better. Each building has a certain amount of heating and cooling it needs based on design conditions. The HVAC equipment should meet those needs.

While HVAC equipment is important, it’s also a commodity that anyone can sell. If the focus stays here, we’ll continue to promote oversizing and pricing per ton, while ignoring duct systems, and overlooking the building’s role in comfort. We must expand our view.

The HVAC system is the completed field installation that depends on your skills and knowledge to design and assemble. It’s a combination of:

• HVAC equipment and components
• Proper design and sizing procedures
• Duct system, insulation, registers, and grilles
• Refrigerant lines, insulation, purging, and evacuation
• Controls and electrical wiring (low and line voltage)
• Condensate disposal and safeties.

The HVAC system connects all these pieces together, and you are the one who makes them work. This small shift in thinking provides a way to differentiate and prove your craftsmanship. No one can offer what you provide unless they do exactly what you do. Only the best can make an HVAC system perform to its rated potential.

This shift won’t be easy because it requires breaking old habits that are hard to overcome.

A Cycle of Improvement

As our industry embraces a system view, a cycle of improvement emerges. Instead of a cycle of blame, consider how the results might look if we focused on the HVAC system.

First, the homeowner buys based on accurate test results and an estimated increase in system performance. They know all contractors are not the same and will deliver different results based on their knowledge and ability. The customer can then make an informed choice and see the results of their decision through delivered performance.

The contractor charges for the value and level of performance they provide. They measure the duct system and building and offer solutions to any discovered defects. The results of their work are transparent and verifiable.

Since the contractor knows how their own systems perform, the relationships with their distributor and manufacturer partners are stronger. Distributors and manufacturers now have a contractor who defends their reputation and the brands they represent. Everyone involved in the exchange wins.

Eventually, promotional materials advertise the benefits of focusing on the system, not just the equipment. Homeowners see the new marketing literature and understand the equipment is just part of the system. They change their view of HVAC systems and how they buy.

Maybe these results are a little optimistic, but they could happen. All we need to do is embrace the first step to improvement and end the cycle of blame. We know what will happen if we don’t.

Are We Willing to Change?

The story of the South Americans who refused to change is a grim reminder of what could lie ahead for the HVAC industry. We can continue to install equipment only and let it die prematurely, just as we have for generations, or we can change. We know what we need to do.

There are no silver bullets or magic pills that will correct this problem. The habit change must happen slowly and from more than one party. We all must work together to change the direction of our industry since the late 1970s. It won’t be easy.

It’s time we take ownership of installed efficiency once and for all. This way, the customer gets what they paid for, and you get paid handsomely for your work and skill. Everyone wins. We just need to get past the obstacle of cheap price in the name of moving boxes.