Specialist
Former VP at Comfort Systems USA Inc
Agenda
- Key trends and developments in the US commercial HVAC (heating, ventilation and air conditioning) industry
- Competitive positioning across OEMs, regionals and local niches
- Demand trends and labour headwinds
- Potential acquisition targets and consolidation outlook
Questions
1.
Could you share your perspective on the commercial HVAC [heating, ventilation and air conditioning] industry, including any key secular trends?
2.
Can you assess the operating environment for the HVAC service segment?
3.
What were your H2 2020 industry growth expectations? How have these altered? What recovery timeline would you expect?
4.
Could you outline the different HVAC segments and commercial end markets, highlighting any headwinds or tailwinds?
5.
When do you expect sales demand to return to 2019 levels?
6.
Can you break down the competitive landscape, pinpointing each major player’s positioning?
7.
What is your recovery outlook for larger OEMs? Might any remain more insulated than others if the work-from-home environment increases and offices continue to remain empty?
8.
Who are the large OEMs? What are their key competitive differentiators? Who is the strongest and where?
9.
What do you think is the typical revenue split across HVAC service and maintenance and new construction?
10.
Do you think the HVAC market’s fragmentation, especially across smaller niche players, is sustainable? How might this fragmentation affect larger OEM vs smaller player pricing strategies?
11.
You mentioned larger players’ cost structures can be higher. How much would be fixed costs vs variable costs that can be flexible to aid competitive advantages and recovery?
12.
Can you compare HVAC service demand to new construction demand, highlighting the service revenue streams?
13.
Indoor air quality has been a major focus for some players, heightened by the pandemic. Might this focus or other demand trends shift again post-pandemic?
14.
What investments are HVAC companies considering amid changing system regulations, such as those around indoor air quality?
15.
Would you expect OEMs to pass on costs to customers or absorb them? Will that change pricing strategies across the industry?
16.
You mentioned the cost of training skilled labour as efficiencies and technological advances start to be realised. How have companies been addressing the increasing challenge of attracting and retaining skilled labour, in your experience? What is driving this headwind, and how do you think it will resolve itself?
17.
Automation is a key technological advancement that seems to be necessary, especially for services. What do you think the timeline is for automation technologies to be implemented?
18.
What might you consider if you were acquiring a company? What is your HVAC M&A outlook? Do you expect any major consolidation?
19.
What is your 3-4-year HVAC industry outlook? What major questions will you be asking in 2021?
