The Supreme Court handed down a significant trade policy decision last week, and the headlines made it sound like relief was on the way. For HVACR distributors, contractors, and manufacturers trying to manage HVAC tariff costs, the reality is more complicated than the news cycle suggests. The Court struck down one major tariff mechanism. Several others remain fully intact, a … [Read more...] about HVAC Tariff Costs: What the Supreme Court Ruling Really Changes
pricing
Where Margin Is Hiding
Distributor margin rarely disappears in one dramatic event. It leaks. Slowly. Through timing gaps, unclear handoffs, and processes that span multiple departments but belong to none of them. The reality is that, in many cases, it didn't truly disappear. If that's true, the obvious question is: Where is the margin hiding? Scott Sinning has spent years working on exactly … [Read more...] about Where Margin Is Hiding
AI for HVAC Distributors: A Practical Field Guide from Pilot to Profit
For HVAC-R distributors dealing with margin pressure, labor constraints, and increasingly complex quoting environments, AI is rapidly moving from curiosity to operational necessity. After nearly a year of research, interviews, and vendor evaluations, I am pleased to announce the release of The AI-Enabled Distributor: From Pilot to Profit: A Field Guide written specifically for … [Read more...] about AI for HVAC Distributors: A Practical Field Guide from Pilot to Profit
SPAs- Are they Worth the Cost?
In a penny nickel business, every penny counts. Which is why SPAs can matter. Increasing gross margins and, more importantly, net profitability, in today’s environment is extremely challenging. Publicly-held national chains such as Rexel and WESCO report net profitability in the 4-4.5% range whereas the NAED PAR report typically proclaims a 2-4% net profitability for … [Read more...] about SPAs- Are they Worth the Cost?
Does it feel like we’re heading into a recession …
Or are we talking ourselves into a recession? Since the fall and the beginning of planning season there have been some economists who have been warning of a second half 2019 slowdown leading to a 2020 recession. Their prognostications were based upon some trends, the fact that we’ve been in a growth cycle for awhile and “are due”, the last year’s tariffs and the one that was … [Read more...] about Does it feel like we’re heading into a recession …
Tips for Distributors to Improve Gross Margin
Corporate success, for many, is typically defined as sales success as sales revenue is an easily identifiable, and discussed / shared, metric. But in a quest to grow sales, and due to competitive pressures, gross margins for many distributors have eroded making gross profit dollars more scarce for investment back into the business. And with operating costs increasing and … [Read more...] about Tips for Distributors to Improve Gross Margin
Grainger Turning a Corner?
Continuing our Q3 earnings observations, next up is Grainger which is a traditionally a good barometer for the industrial MRO space and lately has been a case study in value proposition, price and fear of Amazon Business. From the earnings call and their slides: Overall \"a solid quarter and there were some positive signs\". Seeing growth coming from their price reduction … [Read more...] about Grainger Turning a Corner?
