Specialist
Former executive at Lennox International
Agenda
- Key residential heating and cooling industry trends impacting Lennox International (NYSE: LII), highlighting supply chain challenges
- Lennox’s competitive positioning and new market entrants
- Innovations and new technologies
- Potential growth opportunities in North America HVAC (heating, ventilation and air conditioning)
Questions
1.
What key trends are affecting the residential HVAC [heating, ventilation and air conditioning] industry in North America?
2.
You mentioned that the technology has been very slow to adapt in the HVAC industry. Could you clarify that? What do you think has created this lagging technological effect in the HVAC industry?
3.
How does a changing SEER [seasonal energy efficiency ratio] affect Lennox International? Does this effect vary regionally, as you mentioned north or south? How does it affect the company’s key end products?
4.
Let’s say there was market share disruption and one of the big four players – Lennox, Goodman, Trane and Carrier – took share from one of the others. What key markers should we use to assess when share is being taken or given? What would have to happen in the industry for such a muddled competitive landscape to start to shift?
5.
How did other supply chain disruptions impact Lennox’s customers of the past 12 months, and did it affect costs and ability to complete orders? How is that relative to pre-pandemic? You mentioned a tornado affected the company’s supply chain. How do you think the supply chains will reset? Do you have a forecast for when they will ease?
6.
Do you expect any new entrants into the North America residential HVAC market? Would any China-based companies make sense, or any other particular companies that you think could make an entrance into the North America market? You discussed how the industries are dominated by four main players that are fairly similar, and you gave some markers on how to assess their health and strength.
