Issue #9 January 2022

We'll first turn our focus on our industry's current climate and how we're still in the thick of it. We also share some brief, but interesting, IAQ growth developments. Then, we'll silver-spoon feed you a hot take on what HVAC marketing success looks like in 2022... you know, like how the Cowboys feed Zeke.

Table of Contents

The newsletter from KGG designed specifically for your business. We’ll highlight industry news, market trends, and bring you every resource we have.

Good Morning and Welcome to 2022!
Fancy seeing you here. Let me start off by saying, congratulations!

You’re starting off the first Tuesday of the new year on the right track, I promise. All I’m asking for is approximately 8 minutes of your entire day to get you ramped up on what’s happening in the dynamic world of HVAC.

We’ll first turn our focus on our industry’s current climate and how we’re still in the thick of it. We also share some brief, but interesting, IAQ growth developments. Then, we’ll silver-spoon feed you a hot take on what HVAC marketing success looks like in 2022… you know, like how the Cowboys feed Zeke ⬇


1.) The Current Climate

The current climate of the HVAC industry is a mixed bag. Ken Grubbs, managing director of KGG, has blessed us with a brief breakdown.

“Massive supply chain issues are expected to continue well into the 2nd quarter.”

Why you ask? Oh you know, the (un)usual… China’s zero-tolerance policy, the Omicron variant, and the upcoming Beijing Winter Olympics. Basically:

  • China will do everything it can to keep the Olympics on track, so…
  • Should there be any Omicron breakout, anywhere…
  • They’ll be quick to shut down anything using their zero-tolerance policy.

Every single one of these has a direct impact on getting raw materials, or any product really, that travels across the sea via boat to the US.

To mitigate the stalling effects of shipping via boat, many manufacturers and distributors are opting for quicker, more reliable shipping via plane. Naturally, the costs of shipping via plane have jumped from ~$4 to $16 per kilogram.

What Does This All Mean???

Well, the obvious answer is it means that prices are going up for everyone. The not-so-obvious answer is, it means every level of the HVAC industry needs to be proactive. Here’s a breakdown by level:

Contractors

  • Should be reaching out to their customers now to schedule HVAC maintenance assessments. The sooner you do this, the sooner you can order or source the item(s) they need to run their HVAC system or upgrade their IAQ.
  • Make contact with other distributors and manufacturers now. Ideally those with product on hand right now. Have a plan B, C, and D for product and components.
  • Talk to your distributors to get a better idea of what they have in stock, and relay that information to your customers.
  • Add new services, like IAQ products to your toolkit. It’s complementary to HVAC and in demand, so it’d be wise to expand your services. More opportunities to grow your business and keep busy.

Distributors

  • Should be communicating with contractor-customers. Let everyone know:
    • where you stand on inventory
    • what you have in stock
    • how you can help
  • Understand the seasonal needs and trends of your local community to be the best supplier for your contractors. Now is the time to plan for the year.
  • Partner up with new manufacturers to work with.
  • Don’t be the supply house that doesn’t have the supplies.

Manufacturers

  • Need to be transparent with their distributors and contractors. It’s okay to experience shortages due to a lack of raw materials: everyone is. It’s not okay to overpromise and underdeliver.
  • Look for multiple, new, and creative ways to source the raw materials they need to keep up with demand.
  • Increase your inventory of finished goods to create a buffer (much easier said than done, as it goes against what manufacturers want to do: tie up cash in inventory).

“IAQ is making headway.”

On to the good stuff. We’ll keep it brief:

1.) Dust Free is officially UL 2998 ozone-free. Turns out, all this whole-home air purification manufacturer had to do was change out the bulb. Learn more about this new development here.

2.) Rectorseal distributes IAQ. To support the growing market segment, they are now proud distributors of indoor air quality products.

3.) Clean Comfort HEPA filters. They have introduced a new line of 3 & 4 stage HEPA air cleaners.

4.) More IAQ & Brew events are on the horizon. Great local beer, quality IAQ products, and the best IAQ industry experts. We ran one of these in Texas most recently and it was a big hit. While there’s no set hard dates or location for new upcoming events, it’s top of mind. We’ll be making announcements as soon as we dial it in.

IAQ & Brew KGG Consulting Event

5.) IAQ Leads is a smashing success! And it’s only getting better. Qualify your business for better IAQ leads.

If you’re in the HVAC industry and need help:

  • bridging business gaps… 
  • building new relationships…
  • want to get started in IAQ, but not sure how to start…

… Connecting with Ken will be your best bet. Meet him on LinkedIn.


2.) Hot Take on HVAC Companies in 2022 and DEI

Sure, there are many new tips and tricks for HVAC marketing we could cover:

  • Why content marketing works
  • Why you should be A/B testing
  • How to build customer confidence with social proof
  • How to effectively use influencer marketing to grow your business
  • The power of podcasts

But we won’t touch on any of these this time around. For now, you’re informally invited to check our HVAC marketing articles.

In lieu, we turn our focus to DEI (diversity, equality, and inclusion). It’s a hot topic right now, asking for all companies to champion these initiatives. We have some thoughts on the subject, but first:

What does DEI mean?

Deloitte says it best: As the consumer population diversifies (by race and ethnicity, sexual orientation, or differences in ability, for example), it’s imperative for brands to authentically reflect a range of backgrounds within their messaging.

Many marketing industry experts, including Deloitte, believe the fastest-growing brands will be the ones that champion authentic DEI initiatives not just into their workforce and marketplace, but in their marketing.

DEI marketing means creating ads, social posts, etc that include the diverse group of people you serve. The goal is to make everyone in your community feel welcome and wanted. 

What does that mean for your HVAC company?
Well, that entirely depends on your business, where you’re located, and if DEI is important enough to you to want to take a stand. You could do nothing, or you could get involved. Either way, know the choice is yours to make. Every business has the ability to take a stand for something, but maybe this isn’t one of them… Or maybe it is. There’s no wrong answer. 

What should you do?
Before you do anything, first think about the people in your community that you serve. If you’re a small business serving a small community with little to no diversity, maybe you don’t need to do or change anything. If you want to do something, use creative assets (the images you share in ads, blog posts, social posts) that mirror your community. 

Key Takeaway
The key takeaway here is to be authentic to your business and your community. Don’t force it. If your business happens to be in a diverse community of homeowners and small business owners that need your services, and you want to partake in the DEI movement, go right ahead. Use your social media posts, web content, and ads to reflect the diverse community you serve. Attract them to your business by meeting them online with your marketing. 💡


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