As I was going through my story idea notebook on what to write for this week's column, I saw a LinkedIn notification on a posting from Jon Hirsch. I started following Jon's work as Director of Business Development for Auer Steel & Heating Supply Company (HVACR distributor with locations in Wisconsin, Minnesota, Michigan and North Dakota) about a year ago. What jumped … [Read more...] about Auer Steel, investing for customer and the next generation’s success
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Embrace Change to Adopt AI and Improve Profits
The concept of digital transformation, let alone AI, as a future driver for your organization is probably a folly unless … You have a leader, and leadership team, which believes in change. There are two key words in the above sentence … “leadership” and “change.” Leadership infers vision, an ability to perceive “need,” an entrepreneurial mentality that desires growth, … [Read more...] about Embrace Change to Adopt AI and Improve Profits
Is your proven experienced associate led pricing model approaching a cliff?
If your winning pricing model is still being led by just your experienced sales team, it is probably time to make changes for the future. I had the opportunity to sit in on the excellent HARDI Pricing certification session that kicked off recently with my friends and colleagues leading the session from ACTvantage: Senthil Gunasekaran and Pradip Krishnadevarajan. Senthil and … [Read more...] about Is your proven experienced associate led pricing model approaching a cliff?
Rebates + Actionable Intelligence (AI) = Increased HVAC Profits
I was with a manufacturer last week and we discussed distributor acquisitions and “the why?” One of the data points we discussed was the declining net profitability of the business as a percent of sales and the corresponding increase in the contribution that rebates make to distributor profitability, which is increasing. They further affirmed this with the comment “that … [Read more...] about Rebates + Actionable Intelligence (AI) = Increased HVAC Profits
What does the IMARK/AD Merger for electrical mean for the HVAC Channel?
AD & IMARK Electrical Make the Merger Official: how does the new AD IESD impact the channel and is there any impact to HVACR Distributors? The news release that made it official called this a merger of equals to create AD Independent Electrical Supply Division (IESD) that represents 700+ independent electrical distributors with annual sales of over $43 Billion. Immediately … [Read more...] about What does the IMARK/AD Merger for electrical mean for the HVAC Channel?
Are / Can Distributors Be Demand Generators?
Recently I visited a manufacturer client who asked me about “the channel”. Specifically, they wanted to know: “What drives distributor product selection, what is the food chain, what’s the value of each?” “Are distributors proactive in creating opportunities and selling our types of products?” In all transparency, this is a manufacturer who is owned by a PE firm and … [Read more...] about Are / Can Distributors Be Demand Generators?
Where is the channel headed in 2025 and beyond? Thoughts from MDM SHIFT
I was fortunate to once again be able to attend and present at the NAW/MDM SHIFT conference, and it is interesting to see how the construction and industrial channel continues to evolve. Modern Distribution Management (MDM) has been hosting this annual event for Distribution Leaders called SHIFT (originally MDM Sales GPS) for the last decade. Some of the best and … [Read more...] about Where is the channel headed in 2025 and beyond? Thoughts from MDM SHIFT
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
The 1st Daikin World Air Survey Results highlight HVAC trends
As we head into the last days of August a recent survey by industry channel leader Daikin (Goodman, Amana, and Daikin Brands in North America) was just released that I thought had some interesting data to share. The survey results were released by Daikin in early August, This first Daikin World Air Survey was comprised of results from 1,200 people in 12 cities from around … [Read more...] about The 1st Daikin World Air Survey Results highlight HVAC trends
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
