Month: February 2022

Consolidating; an answer to Independent HVAC, Plumbing Providers

Consolidation in business terms refers to the combination of two or more different business enterprises or companies into one large organization. Consolidation occurs when companies of the same size or dealing with similar products join into one to streamline their business processes and management.

HVAC and plumbing services form a large industry with an estimated $75 billion market. Services rendered by HVAC and plumbing providers are essential in any commercial or residential building, either during initial installation or maintenance.

In the United States, the HVAC market is roughly a $20 billion industry that is not prone to recession, especially throughout the warmer states of Texas and Florida.

Due to the readily available market, many technicians are investing in the HVAC and plumbing enterprises. Despite the market demand for the services, it is becoming difficult for independent HVAC and plumbing operators to compete with the larger firms.

HVAC and plumbing Consolidation opportunities

In the USA, there are thousands of independent HVAC contractors. As a result, many financial buyers see the opportunity to consolidate independent firms. Consolidation of independent firms helps to create a regional or national presence

HVAC and plumbing contractors might specialize in commercial or residential services.

Independent contractors may focus on new construction, while others focus on servicing existing units that can be viewed as a recurring revenue model.

A firm that has emerged from consolidation may also specialize in HVAC services before diversifying into plumbing services.

Consolidation of HVAC and plumbing providers has advantages when compared to independent providers.

Evolution of HVAC and plumbing providers consolidation

In the early years, HVAC consolidators involved small-scale contractors who agreed to put their companies together and form one company. They would then sell some stock and benefit from the cash. They would then hand over the new company to second-tier managers

Some consolidators evolved the scope of business by focusing on growth through acquisition. This way, they could continue to show Wall Street good revenue and profit numbers. The acquisition masters began offering stock rather than cash for newly acquired companies.

Jim Abrahams remains a key figure in the Plumbing and HVAC industry consolidation. He began as an independent HVAC technician, Invented the Abrahams Best practices concept, and then pioneered HVAC consolidation.

Trends in HVAC consolidation

Private equity nowadays views HVAC as the newest market for consolidation.

An example of a middle-market private equity firm is Alpine investors, who have recently launched a new platform for HVAC contractors called Apex Service. The goal is of Alpine investors is to partner with service providers to build a national platform.

Advantages of consolidating HVAC and plumbing providers

Technological advancement

Independent HVAC and plumbing technicians rely on obsolete technology while offering their services, whereas consolidated firms have the latest technology in the market. For example, independent providers rely on handwriting to provide drawings and quotations, which might be illegible, whereas large firms use pads and tablets with inbuilt quotes.

Marketing and advertising strategies

Independent providers rely on conventional advertising media such as TVs and newspapers. Larger firms have adequate resources invested in online advertising. Nowadays, online platforms attract more clients than conventional media.

Purchasing power

Larger firms can purchase pieces of equipment in large quantities or enter into agreements directly with the manufacturers, who then sell equipment at discounted prices. On the other hand, independent providers do not enjoy discounts and may pay more, especially if the equipment is rare in the market.

Professional advancement

Large firms may organize in-house training for their staff on emerging technology in the HVAC and plumbing sector. Training on advanced equipment for independent technicians may be difficult.

Labour shortage

Large firms have staff with diversified specialization. They also train their staff and have better remuneration packages for their staff. The larger firms have a competitive advantage over the independent providers.


There exists a misconception that if an independent plumber or HVAC technician engages in consolidation, they lose control over their business. However, this is not the case since an independent operator can accelerate the growth of their business while keeping their name on the transport trucks. Consolidation enables independent HVAC technicians and plumbers to be run their businesses with better resources.

Help Small Local Businesses in Maine to Stay Afloat on Small Business Saturday

Small business Saturday is a holiday after thanksgiving, and it is celebrated to help small local businesses. Small business Saturday allows Maine resident you to shop excessively to help local businesses. Small businesses are often under dept or hardships, and it is the job of people living by to shop locally to help fellow residents. The holiday is celebrated to help the local community save a business that can close down.

Small Local Business

Small local businesses are often under dept because branding has torn their businesses. Now people prefer brand name over quality, and they avoid local businesses buying from top brands. Local businesses are small shop owners that do business locally. These businesses don’t have chains that spread across the country. These are small family businesses that transfer down generation from generation.

Small businesses are more fun to shop from, they are residents, and most people know each other. In a small local business, the hospitality that one feels cannot be felt in any big brand store. So, shopping at local stores is fun, but stores of local businessmen.

Effect of Pandemic Over Small Businesses

Pandemic has ruined small businesses in Maine and all over the United States, and the owners are in huge debt due to the lockdown. The businesses could not sell during the pandemic due to the unavailability of resources. Their businesses were closed, and this affected them a lot.

You must visit local stores that you know about and inquire about their hardships. The local stores and businesses are almost ruined due to lockdowns. Learn about the effects of pandemics over multiple online platforms.

Big brands shifted to online shops. Big brands and companies have resources and utilize those resources, and they shifted their business to the internet. The online store was opened by most businesses that were not using the facility.

Although the business was down, they were still able to make profits. They were able to sell their products to buyers with the help of the internet. Promotions through television and the internet helped them stay in the game while small local businesses were closed.

Small businesses could not shift online, which caused so many problems for them. Stocks on some stores expired, and some were paying rents while not selling. Problems like these have highly affected the local businesses in the United States of America.

How can We Help Local Businesses in Maine?

Help doesn’t mean that we will have to go out and give them money to help them; no, we will have to empower local businesses. Empowering businesses means that you should buy from those businesses. Purchase daily use items from local businesses, stop using big brands for a while and focus on local.

It would be best if you shopped in the local stores; this will help them stay in business, and they won’t have to go out due to low sales. Know more about local businesses and their efforts during the pandemic to grow your business more.  Helping them stay afloat will help the local community; local businesses invest back in local communities, so it comes back to you.

Our friends and fellow community members run small businesses, and it is our job to help them out during difficult days. So, it is the job of all the people to buy and support local businesses during this difficult time. Start spending on local businesses and save them from closing down.

Small Business Saturday and Local Businesses

Small Business Saturday is a fun holiday celebrated to help local businesses. You can provide an opportunity to the local sellers to stay in businesses. Local businesses often suffer, but small local businesses have suffered unbearable losses during the lockdown period.

Most small businesses have closed down due to unbearable losses. So, take the opportunity and start thinking about the local businesses around you. Celebrate the holiday with the best intentions in mind and start shopping at the local store. This is especially for the young generations.

They do not like shopping from the local store, and the day is celebrated to remind them about the importance of local businesses and how they can help them keep up with time. Government and local communities also try to play their part during such holidays. Offers are given to encourage local spending.