Uncertain About Recent Changes In The HVAC Industry?

by Dan Jacobs, June 12, 2017

Over the last few months, developments within the coil industry have created more questions than they have answered.  As you know, all industries can experience periods of upheaval, volatility, and wholesale changes in leadership at one time or another.  As you may have recently experienced, the coil industry is not immune to volatility or changes in ownership either. And, when these changes occur, they tend to destabilize the market -place more often than not.  When a company is purchased, a number of things can and usually do occur:

  • Employees of the old company are moved around and/or often let go entirely. What does that mean for your business? Your usual sales/service contacts are no longer there, continuity is disrupted, and the overall ease of doing business is much harder to attain.
  • The loyalty that you had with the old company, is in many cases, no longer present.  Loyalty and trust in business are gained and won over time.  You do business with who you like and trust, and you simply can’t operate with the same level of comfort when you’re dealing with an unknown entity.
  • Normal business operations, such as Quick-Ship programs, are disrupted and/or shutdown in response to changes in leadership. Existing factories are too small to handle even marginal increases in business, which can also lead to delays. CCA recognizes that success in the replacement market is contingent on speed and predictability, and we will not sacrifice either, under any circumstances. 
  • Larger companies buy smaller companies for agendas that in many cases, do not coincide with your’s.  Sometimes it is to service their own OEM requirements, while in other instances, one company purchases another for their customer base.  Whatever the reason, it is solely in their best interest, and not to facilitate what is good for YOUR business.
  • New technologies and innovation can also be motivating factors. Company X needs the technology of Company Y, and they won’t think twice about acquiring Company Y, and moving plants and equipment to alternative locations.

The big thing to take away from any major changes to ownership is that it is their money, their company, and they can do what they want (and will). When reviewing new owners, please take into consideration their background. Do they have actual industry experience, or are they just looking to make a “value investment” for their shareholders?  Wouldn’t you rather deal with a company that is privately owned with more than a decade of industry knowledge and experience?  If your coil supplier sells to anybody and everybody, you have zero protection on any job and are essentially spinning your wheels. This “wild west” business model will affect you, regardless if you’re an OEM, a contractor, a wholesaler, or a manufacturing rep.  You develop long term relationships with suppliers in the hope that you will get preferential pricing and special help when needed, as well as their loyalty and assistance if something goes wrong on the job. The coil business is not one big “auction”.  It’s an engineered product, where engineering knowledge and market savvy come together.  Major changes in ownership usually create uncertainty and destabilization;  neither of which is beneficial to the overall health of the industry. 

When you call Capital Coil & Air, the same people that you’re dealing with now will be the very same people that you’ll be talking to and dealing with 10-20 years from now.  Like any business, we need customers, but we are far more interested in long-term relationships than one-off transactions.  We offer the best protection in the industry, as well as competitive and balanced pricing on every job.  We will stand behind you if there is a problem during any stage of your buying process and beyond. Give us an opportunity to earn your business, and you’ll see a dramatic departure from what you’re typically used to when it comes to dealing with manufacturers.

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