Last week Ferguson shared their FY Q4 earnings and held their analyst call. While not “focused” on the HVACR market, Ferguson is growing in this space and sees opportunity to increase their influence and, more importantly, gain share in the market … and they have the war chest available to make the investments and “buy-in.” From the Ferguson earnings call (words in italics are … [Read more...] about Ferguson Q4 Earnings Report … Preparing for Increased HVAC Focus
Distribution Strategy
Loyalty Helps Take Share
We know you, or your company, is planning for 2025. We also know that many have concerns going into 2025. The question is, “what will 2025 bring?” And with PE firms supporting HVAC distributors with incremental investments, Ferguson pursuing dual trade contractors, new construction in 2025 questionable in some markets, prospects for the renovation market due to Fed cuts and … [Read more...] about Loyalty Helps Take Share
Inventory Planning Approaches for 2025
As we enter the final 4 months of 2024, I am having many conversations with HVACR distributors and manufacturers about their into stock inventory positions. HVACR growth rates have slowed from the 20's% from April 2021 to April 2023 days and now are relatively flat (2023 vs 2024). Inflation and price increases have continued to climb since early 2023. So, that means that … [Read more...] about Inventory Planning Approaches for 2025
Capitalize on the Data Center Boom: AI for HVAC Distributors
The data center market, as many know, continues to boom. According to recent data from the Bureau of Labor Statistics, almost 33% of the new construction office spend in May was by data centers! There are data center industry reports of 100 data centers scheduled to be built for the next 10 years ... and this may be conservative. The driver of the need for all of this … [Read more...] about Capitalize on the Data Center Boom: AI for HVAC Distributors
Inventory Management a Foundation for Growth
As an HVACR distributor or manufacturer having strong local inventory near the end customer and where they work, is the most important factor for growth. As a long-time distributor, I know we all talk about "our people" as being the driving factor for growth, and that is true. We could not service our customers without our great people, but I have worked for distributors … [Read more...] about Inventory Management a Foundation for Growth
Driving Share and Sales with Customer Loyalty Reward Programs
HVACR distributors and manufacturers are fighting to retain market share and seek growth in a challenging market. Typically, the most profitable strategy to strengthen, deepen and broaden opportunities within existing customers. An effective tool to achieving this is also a time-tested strategy for many HVACR distributors and some manufacturers ... contractor incentive and … [Read more...] about Driving Share and Sales with Customer Loyalty Reward Programs
Improving Pricing and Inventory Knowledge with HARDI Certification
I believe one of the biggest challenges as distributor is managing pricing and inventory effectively because you can be handicapped by your own internal viewpoints. Your culture as a distributor is crucial to your success, but it can be limiting you in terms of new ideas and approaches in two crucial areas - Inventory and Pricing. I’ve been fortunate to work for six great … [Read more...] about Improving Pricing and Inventory Knowledge with HARDI Certification
Driving Distributor Profitability Through Operational Efficiency
The “go-go” days of post-Covid are gone. We’re back to pre-pandemic industry growth rates. Maintaining, and improving, net profitability in the face of slowing growth, increased cost structure, and stagnant (if not decreasing) margins, requires improved operational efficiency, inventory management, strategic price management, appropriate implementation and utilization of … [Read more...] about Driving Distributor Profitability Through Operational Efficiency
Opinion: What is the future of “Rebate” programs for HVACR Distributors and Manufacturers?
Rebates, Backsides, End Customer Cash Back Programs, etc. whatever you call them are going to be growing in importance every year for the Channel. As I was preparing to head up to Boston this week to speak at the Enable Catalyze Conference, I was reviewing the current state of rebates in the channel. For reference - Enable is partnered with Affiliated Distributors and Net … [Read more...] about Opinion: What is the future of “Rebate” programs for HVACR Distributors and Manufacturers?
Puro Lighting – Fighting Mold in HVAC Coils (A School Solution?)
One of the lasting benefits of Covid is increased awareness of air quality (AQ) and how this impacts health, productivity, learning, and more. Few had heard of UVC lighting to kill germs. During Covid, a leader in UV lighting, and more importantly, air quality improvement was Puro Lighting. The increased AQ awareness continues today (and with the mysterious ways government … [Read more...] about Puro Lighting – Fighting Mold in HVAC Coils (A School Solution?)
HVAC Fault Detection Insights from Schneider Electric
Consulting & Specifying Engineer (CSE) magazine is conducting a training webinar on Thursday, April 25th with a topic of "What the benefits of HVAC fault detection, plus how to specify it." The description for the webinar is: Within commercial buildings, it is estimated that poorly maintained, degraded or improperly controlled equipment wastes an … [Read more...] about HVAC Fault Detection Insights from Schneider Electric
Data Centers, a Sustainability Growth Opportunity
As the world embraces digitalization ... everything from eCommerce to AI and more, the need for data centers appears to be growing logarithmically! It is a significant growth opportunity for many HVACR distributors as these "keepers of data" are huge energy hogs and need to be cooled to operate efficiently. Global spending is expected to grow a minimum of 10% per year … [Read more...] about Data Centers, a Sustainability Growth Opportunity
Can Yesterday’s Pricing Strategies Drive Tomorrow’s Profitability?
Pricing is an important element of a distributor's go-to-market approach. If you're not, at least, competitive, you know what will happen to sales. But if you are too low, getting a reputation for that isn't good, nor does it help your bottom line. The past few years, inflation and product availability enabled HVACR distributors to, hopefully, optimize pricing (and net … [Read more...] about Can Yesterday’s Pricing Strategies Drive Tomorrow’s Profitability?
Volume Rebate Webinar December 14
Register and join us Thursday, December 14th, at 11:00 AM ET for our State of Volume Rebates Webinar when we'll share results from our recent research and discuss ideas on how to make rebates more effective for your organization. As you may know, earlier this fall we sought distributor and manufacturer input regarding annual / volume REBATES. This research is a follow-up … [Read more...] about Volume Rebate Webinar December 14
Increasing Warehouse Output While Managing Costs
With business returning to a more “normal” pace, defined as “slow growth” looking forward, leading distributors are focused on improving the operational / warehouse aspects of their business. While national chains, over the years, quickly moved to a CDC or RDC model, larger independents have also adopted this approach. This achieves a dual mandate of “improved” inventory … [Read more...] about Increasing Warehouse Output While Managing Costs
