■ Ontario sets new trade fees ■ Plumbing code changes proposed ■ Poor piping can sink good design ■ Buyers’ market for new contractors
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Factory-built homes NOV/DEC 2012 WWW.PLUMBINGANDHVAC.CA Publication Mail Agreement #40063170. Return postage guaranteed NEWCOM Business Media Inc. 451 Attwell Drive, Toronto, Ontario M9W 5C4 Growing sector offers new opportunities for contractors Growing sector offers new opportunities for contractors INSIDE ■ Ontario sets new trade fees ■ Plumbing code changes proposed ■ Poor piping can sink good design ■ Buyers’ market for new contractors INSIDE ■ Ontario sets new trade fees ■ Plumbing code changes proposed ■ Poor piping can sink good design ■ Buyers’ market for new contractors INSIDE ■ Ontario sets new trade fees ■ Plumbing code changes proposed ■ Poor piping can sink good design ■ Buyers’ market for new contractors Homebuilders Issue
Transcript
Factory-builthomes
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Growing sector offers new opportunities for contractorsGrowing sector offers new
opportunities for contractors
INSIDE■ Ontario sets new trade fees■ Plumbing code changes proposed■ Poor piping can sink good design■ Buyers’ market for new contractors
INSIDE■ Ontario sets new trade fees■ Plumbing code changes proposed■ Poor piping can sink good design■ Buyers’ market for new contractors
INSIDE■ Ontario sets new trade fees■ Plumbing code changes proposed■ Poor piping can sink good design■ Buyers’ market for new contractors
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PLUMBING & HVAC Magazine is published eight times annually by NEWCOM Business MediaInc. and is written for individuals who purchase/ specify/approve the selection of plumbing, piping, hot water heating, fire protection, warm air heating, air conditioning, ventilation, refrigeration, controls and related systems and products throughout Canada.
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November/December 2012Volume 22, Number 8
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■ Hot Seat
The so-called privatization of electrical and gas utilitiescontinues to cause pain for our industry. And as theseformer government owned ratepayer fundedorganizations are urged to find ways to conserve energy,they are once again eyeing the HVAC industry.
After all, if you want to reduce natural gas use, replaceolder furnaces. If you want to cut electricity use, installmore efficient air conditioning. That makes perfectsense. But it all comes down to who does the work?
When the utilities use their gas and electric customersto subsidize the HVAC contracting side of their business,that’s unfair to private contractors. If they marketdirectly to their utility customers, that too gives them anunfair advantage.
One of the big problems is that utilities are not a privatebusiness in the conventional sense. Their customers aren’tcustomers by choice – everyone needs electricity and mostof us need natural gas. They don’t have competitors either.
Utility networks were built with taxpayer and ratepayerrevenue to provide electricity and gas to businesses andhomeowners basically at cost. That was just fine witheveryone until cash-strapped ideology driven governmentsdecided they needed to privatize these institutions andbring “competition” into the utility market.
Governments in some provinces have recognized theproblem and put regulations in place to limit the abilityof utilities to compete directly with private businesses.However, some utilities are getting around this bycreating a holding company and then forming twoseparate companies underneath that – one operating asa regulated utility and the other as an unregulated freeenterprise company – the idea being that only the
generation/distribution side of the business is regulated.However, as Roger Grochmal, a southern Ontariocontractor (AtlasCare, Oakville, Ont.) and the newchairman of the Ontario HVAC Coalition said at thatgroup’s annual meeting recently, it’s not in the DNA ofutility management to compete fairly; they are alwaysstriving for a monopoly.
So how do contractors protect their market from thesebig players? One way is to support the contractororganizations that are pushing back and lobbyinggovernments to maintain a level playing field. If unfaircompetition from utilities is happening in your area, takeit to your local contractor organization. Another key isto talk to municipal politicians. The utility typicallyreports to them and they may not be aware that the utilityis competing with local private businesses. This hasalready proven very effective with some smaller utilities.
But there is also something utilities can do. I don’twant to paint them all with the same brush. Some havegone to considerable lengths to work with localcontractors. The utilities can play a positive role inmarketing, lead generation and rebates to promote theirgreen initiatives. But as I said in the beginning, it’s allabout who does the work.
And with that, I’d like to wish all of our readers andadvertisers a wonderful Christmas and a prosperous yearin 2013!
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The Ontario College of Trades hasannounced membership fees forapprentices, journeymen and contractors asa looming election threatens its future.
In the compulsory trades the fees, whichstart in April, will be $60 per year for apprentices, $120a year for “journeypersons” and $120 per year foremployers. Tradesmen in non-compulsory trades arealso being asked to pay $60 per year. Employermembership is optional. There is a $150 fee to do thecertificate of qualification exam and a $25 fee to replacea lost certificate. Journeymen holding more than onecertificate of qualification will only pay one fee.
Multiply these fees by the approximately 500,000people working in 157 trades – everything from hairdressers to HVAC mechanics – across Ontario, and thisshould cover the college’s $22 million budget for 2013,remarked Bob Guthrie, registrar and CEO of the collegeat a public information session attended by 46contractors and industry personnel in Mississauga, Ont.on Nov. 1.
However, only about 200,000 work in compulsorytrades, with membership optional for non-
compulsory trades. Guthrie expects that many of thosewill want to get their certificate for credibility withtheir customers.
Hosted by the Heating, Refrigeration and AirConditioning Institute of Canada (HRAI), the meetingis one of a number that took place across Ontario inNovember. Guthrie and Linda Jones, manager, standardsand assessment, for the Ontario Ministry of TrainingColleges and Universities, were on hand to clearmisconceptions.
The initiative has been controversial with provincialConservative leader Tim Hudak calling it a “tax grab”and promising to scrap it if elected. An election isexpected within a year following the resignation ofPremier Dalton McGuinty.
Many in the industry haven’t warmed to the concepteither. “The College of Trades remains unknown tomany in the industry and many questions remain,”remarked Martin Luymes, HRAI director of programsand relations. It is designed to make the trades self-governing, similar to professional associations forteachers, doctors, etc. It will create and administerregulations, apprenticeship ratios and curriculum for the
trades, as well as promote trade careers.The mandate is “to self-regulate the skilled trades in
the public interest,” said Guthrie, who was previouslyCEO of the Saskatchewan Apprenticeship and TradesCommission. The Ministry will continue to approve andmonitor training institutions.
Better enforcementOne of the college’s mandates is to improve enforcementagainst individuals working in the compulsory tradeswithout a license.
There will be a public registry of licensed tradesmen,meaning that a homeowner, for example, can go to thecollege website to find out if the plumber quoting hisproject is actually licensed. However, the college muststill convince the province to give it the authority to levyfines, noted Guthrie.
“That should be the first priority,” remarked onecontractor. “We have too many companies that operateopenly and don’t have certification, safety equipment…”
Guthrie acknowledged that the college is also indiscussions with the Technical Standards and SafetyAuthority (TSSA) to work out overlapping jurisdictions.He said he would like to see TSSA regulate equipmentand specifications while the college looks after trainingand certification.
Unreasonable ratiosOne contractor noted that journeyman/apprenticeratios that require as many as four journeymen perapprentice severely restrict contractors from hiring newworkers. Those ratios are currently under review by thecollege.
Another concern was undue union influence. Guthrienoted that of 21 members of the college’s Board ofGovernors, only eight have union connections. However,he conceded, “unions take apprenticeship seriously, butthe opportunity is open to anyone.” Luymes added: “Thenon-union sector needs to step up if they don’t want toomuch union influence.”
The HRAI Contractors Division is doing just that,although it hasn’t decided whether to support theCollege or not and will wait to see what its memberswant. However, Luymes acknowledged that reform tothe apprenticeship system in Ontario is long overdueand that more industry control should be a goodthing.
Guthrie is confident that once people understand thereasons behind the College, they will support it. “This issetting the pattern for the future of apprenticeship byputting it firmly in the hands of the industry.”
For more information, visit www.collegeoftrades.ca. ✚
Ontario sets trade feesControversial college moves ahead amidst political uncertainty
By Simon Blake
Work is proceeding rapidly at the massive eight-building Canary District on Toronto’s waterfront, re-ported EllisDon construction manager Tim Dittmar, P.Eng., here leading a media tour. The design-buildproject will be home to 10,000 athletes for the 2015 PanAm games prior to being finished as condos.
Proposed changes in the 2010 Model National PlumbingCode should make life easier for building owners anddrain cleaning contractors, while requiring morethought in laying out horizontal drains.
Listed among proposals published for public review bythe Canadian Commission on Building and Fire Codes(CCBFC) from Sept. 24 to Nov. 16, the change wouldrequire an additional cleanout for every cumulativehorizontal change in direction exceeding 135 degrees.
Currently, there is no restriction on the number ofchanges in direction without a cleanout. Excessivechanges increase the likelihood of blockage, even moreso today with low flow faucets and fixtures, and makethe drains more difficult to clean.
By limiting direction changes to 135 degrees, codeofficials hope to discourage unnecessarily complicatedsystems.
“The cost of a cleanout is far less than potentiallyhaving to break up a concrete floor in order to access ablocked pipe where a cleanout has not been provided,”code officials note. The change should also make life
easier for building inspectors who will now have clearinstructions on where cleanouts should be located andhow many should be provided.
The revised code will also allow dual vents, in additionto single vents, to terminate with air admittance valves.
Stainless piping addedA considerable number of proposed changes aredesigned to make stainless steel pipe and tubing anacceptable material for plumbing systems. It is alreadyaccepted in a number of jurisdictions (Sect. 2.2.5). Thenew code will also include welding requirements forstainless steel pipe, support requirements for horizontal
piping and insulation of stainless steel pipe supports.There is also a new reference to non-perforated
polyethylene (PE) and Type 1 joints in storm sewer anddrainage pipe fittings. And there are new best practicesfor insulating pipes against freezing.
The National Plumbing Code is part of Canada’sNational Model Construction Codes and Guides, whichare typically adopted in whole or part by each provinceand territory for their building codes. They are createdby the CCBFC, an independent committee of volunteers,many from industry.
For more information, visit www.ationalcodes.nrc.gc.ca. ✚
New Energy Star rulesThe new 2012 Energy Star for New Homes standardwill allow contractors more flexibility in designingHVAC systems. Effective Dec. 1, an Energy Starhome must be 20 percent more efficient than theminimum standard allowed by the applicable code,as established using a reference standard based on ahome built to minimum requirements. However, thecontractor doesn’t necessarily have to use EnergyStar approved equipment to achieve theperformance standard. A core “Builder OptionPackage” is also available and does specifyequipment if the contractor prefers to go that route.
Apprenticeship Forum to continueThe Canadian Apprenticeship Forum (CAF-FCA) hasannounced that it will continue operation withprivate sector funding beyond the March 31 demiseof the federally funded Sector Council Program.The group’s membership has expanded since itsJune annual conference in Regina, “showing thatstakeholders are willing to make a financialcontribution to keep (the group) doing the work wevalue,” reported Dave Suess, CAF-FCA chairmanand apprenticeship learning advisor at SuncorEnergy. Visit www.caf-fca.org or more information.
In Brief
CorrectionOur report on the HRAI Annual Meeting in theOctober issue attributed a comment on “door-knockers” to the wrong person. Roger Rossi(Reliance Home Comfort) made the comment, notRoger Grochmal (AtlasCare) as we reported. Weapologize for any confusion caused by our error.
Plumbing Codechanges proposed
“When lumber gets wet, it wants to be a tree again, so itstarts to warp,” says construction veteran Joel Swartz. Thisamusing perspective arises during a discussion of some ofthe differences with factory-built homes, which are ofcourse, largely built indoors. A close look reveals thereare several advantages to this method of building. And ifnew construction in Canada continues to strengthen, itsrecovery will be led in part by this segment.
Industry Canada, the Canadian Labour Congress, andothers that provide construction statistics report that theindustry in general has recovered gradually since 2009and will grow by more than two percent this year andnext. Factory-built homes, however, are experiencingsignificantly faster growth in Canada and worldwide.According to the Canadian Manufactured BuildingInstitute, 14,427 factory-built single-family homes werestarted in 2011, 22 percent more than in the previousyear and accounting for 12.5 percent of all single-familyhome starts in Canada.
Britco, a B.C. modular builder with four factories is nowthe second largest such builder on the continent. Its parentcompany was just named the 29th fastest growing companyin B.C., with revenues almost doubling in one year.
Champion Home Builders in Michigan has 2,500employees and reports that it has built 1.7 millionhomes. This is big business.
“When I was first approached regarding factory-builthomes I was doubtful,” says Swartz, a professional engineerand owner of Formstructures in Ontario. “I’ve beenbuilding high-end homes for 25 years. I thought these werelow quality trailers. Then I visited the factory and I couldn’tbelieve the attention to detail and the high quality.”
His company recently completed a modular home inToronto that is priced at $1.4 million. It was installed ina single day, although the prep and finishing processtook several months.
Indoor constructionPlumbing and heating systems for a factory-built homeare not much different than a home built outside, butthe process is different. Not all manufacturers are thesame, but most try to build large chunks with everythingfinished inside. This means vents, fans, ductwork, sinks,faucets, toilets – they’re all installed in the factory.
In a few regions mechanical trades at first claimed thistook business away, until they realized that everything isstill installed by plumbers and HVAC professionals, butin a plant rather than on a job site. They don’t have totravel to a different site for each project, or struggleagainst the weather while working.
From the homeowner and builder point of view, costsand timelines are more predictable, because it’s easier tocontrol and manage inventories and material deliverieswith a factory. There are very few delays or cost overruns,according to manufacturers. “Even if we get a foot ofsnow, we’re still on schedule,” says Geno Koopman,owner of Mountainview Industries Ltd. in Cardston,Alberta. “And if we get behind schedule we can just puton a second shift, turn up the lights and build at night.”
The company is building about 30 homes each yearand growing quickly. “We also build the conventionalway outside, but we will soon stop,” says Koopman.“Waste is easier to manage. The whole process is moreefficient inside.”
Formstructures of Toronto installedthis large modular home in one day.However, preparation and finishing
took several months.
The completed $1.4 million custom home is theopposite of the cheap structures that many peo-ple envision when one mentions modular homes.
Because the homes are built indoors,there’s no rush to close them in toprotect the interior from theenvironment. “We build the house inreverse,” noted John Coppens, chiefdesigner at Guildcrest Homes inMorewood, Ontario. “We put the drywallup first (before exterior sheathing) so theplumbing and HVAC guys can work onthe inside, while the electricians areworking on the outside. It’s quick andthey’re not tripping over each other.”
Guildcrest is one of the country’s largest
modular homebuilders and was recentlyacquired by the Pro-Fab Group of Saint-Apollinaire, Quebec, which has installedmore than 7,000 factory-built homes. Themerger creates another significant playerin this fast-growing segment.
“There are differences on-site,” saysSwartz. “For example with a two-storeybuilding, when the second section comesdown on top of the first, there will bediffuser boots in the floor duct lying onthe ceiling of the ground floor. You haveto reach through the boot and connect
them. You also have to connect theponytails in the basement to the furnace,HRV, and water heater. It’s a bit differentthan usual; but any trade professional canadapt quickly.” Of course leveling thebuilding is a critical part of installing amodular home. Plumbers will often checksink and tub drainage during this process.
Passing the inspectionFactory constructed homes in Canadamust be CSA approved. The localinspector is still responsible forensuring the home has the necessaryCSA labels and also for local buildingcode compliance, but there is less toinspect on-site. Requirements thatapply on-site relate to site preparation,foundation and anchorage. The rest ofthe inspections are conducted at thefactory, covered by CSA standards forProcedure for Factory Certification ofBuildings and MH Series, Man -ufactured Homes. They’re handled likean ISO audit, with unannouncedfactory checks four times each year.
ChallengesIn the 70s and 80s some modular homeswere fitted with polybutylene piping
which failed and resulted in class-actionlawsuits. This, plus sloppy installations,damaged the image of modular homes.The United States introduced theManufactured Housing Improvement Actin 2000, providing a much-neededregulatory framework.
The sector also suffers from an imageof low quality. The reality is the reverse,according to manufacturers. Factoriesare highly controlled environments andthere is less chance for human error thanon a job site.
Modular buildings are constructed in allbudget categories and also for multi-unitresidential, hotels, commercial buildings,additions and so on. It’s a growing trendthat shows no sign of slowing.
Or as one factory builder said: “Homesare one of the few things that are still builtoutside. I think this is going to change.” ✚
Obviously, one of the biggestdrawbacks to building a homeindoors is getting it to the jobsite when completed. However,companies in this business havedeveloped considerableexpertise.
Complex rules cover themoving of manufactured homesand are slightly different in eachprovince. However, themanufacturers we spoke withwere accustomed to the task
and regarded compliance as routine. Regulations govern widths, heights,and lengths, depending on vehicles, trailers, combos, and so on. Generally,if the load is bigger than the identified maximums the home mover mayneed a moving permit, an escort vehicle or even two escort vehicles. Insome areas there are restrictions on hours, days, weekend or holidaymoves; in some regions certain months are prohibited due to weather andwildlife. Usually certain markings, decals, signs, flashing lights and flags arerequired.
Some regulations define the particular highways that may be used fordifferent load sizes.
In 2008 the Atlantic Provinces signed a memorandum of understandingto harmonize rules, making it easier for operators to drive throughdifferent provinces without having to change procedures along the way.
Getting it to the site
The rules for moving homes on publicroads can be complex.
Bruce Nagy is aToronto-based freelancewriter that reports ongreen technologies andsolutions. He can bereached [email protected].
cargo vansNew players, new vehiclesoffer contractors
expanded selection
By Simon Blake
The new
The new Nissan NV200 gives contractors another option in small vans.
Forty/sixty split reardoors on the NV200make loading easier.
The number of manufacturers in the cargovan market has increased in recent years,but some contractors struggle to find a vanthat isn’t too big or too small to replace thepopular Chevrolet Astro and GMC Safari
mid-sized vans, many of which now have umpteenthousands of kilometres on them. Some are finding away to make the new smaller cargo vans work. In 2013,Nissan will add its own version to compete with thosecurrently produced by Ford and Chrysler.
Small vansIntroduced to the North American market at theChicago Auto Show last February, the Nissan NV200Compact Cargo Van is aimed squarely at the marketoccupied by Ford’s Transit Connect and the commercialversion of Chrysler’s Caravan mini-van.
“There is an increasing need for a ‘right-sized’ vanthat optimizes cargo space while offering the bestpossible fuel economy and an affordable price,” saidNissan Canada’s Michael Colleran.
Already available in over 40 countries around the world,Nissan has modified the NV200 for the North Americanmarket by extending the body eight inches (20 cm) tobring cargo capacity to 123 cubic feet (3.5 cubic metres).
Measuring about 15-1/2 feet long, the wheelbase is115 inches and carrying capacity is 1,500 lbs. (680 kg). Itis designed so that a standard 40x48 pallet can easily beloaded in the back. There are integrated mountingpoints for shelving, sliding doors on both sides and40/60 split rear doors that open to 90 and 180 degrees.
The centre console includes space for a laptop andhanging file folders. Options include built-in GPS,Bluetooth communications, pre-wiring for Nissan’s FleetTracker system and a rear-view monitor.
A 2.0 litre 16-valve four-cylinder engine providespower. The NV200 is manufactured in Mexico.
Ford TransitIntroduced in 2009 as a 2010 model, contractors wereskeptical about Ford’s little Transit Connect at first. But,as we previously reported (Little Wonder, P&HVACApril, 2012), contractors have begun to embrace Ford’ssmall van for their service techs thanks to a 50 percentfuel savings over a full-sized van and the ease of drivingand parking in busy downtown areas.
The Transit Connect brought significant advantages bybeing designed from the ground up as a work van. Thus,it has things like commercial grade tires and suspension
along with swing-out rear doors.There are no major changes for 2013.
The Transit Connect has 130 cubic feetof cargo space and a payload of 1,600 lbs.Ford’s Crew Chief electronics allow thecontractor to dispatch and monitorvehicles. A four-cylinder two-litre engineprovides power through a four-speedautomatic transmission.
The Transit Connect is manufacturedin Turkey.
Dodge RamChrysler has been refining the cargo vanversion of its popular Caravan for manyyears. It offers 155.5 cubic feet of cargospace – enough to easily carry 4x8plywood sheets – and an 1,800 lb. payload.
A 3.6 litre 283 horsepower V-6 providespower to the wheels through a six-speedtransaxle. New for 2013, the driver cannow select a fuel economizer mode, whichchanges the transaxle shift schedule andenables 25-mpg fuel mileage, only twompg less than the Transit Connect. And,unusual for a small van, it has a significanttrailer towing capacity of 3,600 lbs.
It features dual sliding side doors.However, the Dodge Ram’s biggesthandicap has always been its mini-van stylerear lift gate. Swing-out rear doors andperhaps a little more roof height wouldgreatly increase the Dodge Ram’s appeal.
The Dodge Ram Cargo Van is built inWindsor, Ontario.
General Motors has no offerings inthe small van market this year, havingreplaced its passenger HHR van with theOrlando, but as of yet offering nocommercial version to replace the HHRpanel van.
Full-sized vansThe full-sized van market has becomeincreasingly crowded in recent years,despite the exit of Dodge. Ford, GM,Mercedes Benz and Nissan will allcompete for the contractor’s dollars in2013. Focus groups with contractorshave made the new vans more practical
for their intended purpose whilesophisticated electronics have allowednew levels of fleet management alongwith a better ability to use the van as amobile office.
General Motors has made some usefuladditions to its Chevrolet Express andGMC Savana cargo vans, not least ofwhich is a rear vision camera and rearpark assist.
GM vans are available in 135 and 155-inch wheelbase versions with loadratings from 7,300 lbs. (3,311 kg) to9,900 lbs. (4,490 lbs.) The 2500 and 3500models have a trailer rating of up to10,000 lbs. (4,535 kg).
Standard engines, depending on themodel, are a 4.3 litre V-6, a 4.8 – litre V-8and a 5.3 – litre V-8. For those that needserious horsepower, a six-litre 324 hp V-8is available. A fast-idle option makes iteasier to run accessories on the job siteand a special version is available for thededicated compressed natural gas model.
GM also offers its 6.6 litre 260 hpDuramax diesel, which includes somehelpful cold weather functions to offer“gas engine-like start performance” attemperatures down to -29C.
As well, an optional fuel operated
Please see ‘new’ on page 15
The Mercedes-Benz Sprinter comesin several configurations.
Chevy’s Express van offers some newcold weather features.
The Dodge Ram offers an impressive payload for a small van.
The technician can stand up in theraised roof version of the Nissan NV.
Extendable mirrors on the E-Seriesare a nice touch, particularly fortrailer towing.
It’s hard to beat a full-sized van forinterior space. This is Ford’s E-Series.
“That’s why I only use Dahl valves.”“That’s why I only use Dahl valves”“I can’t take a leak.”“We work in some of the finest homes in Toronto, and
so I don’t play games with quality. It’s Dahl or nothing.
Dahl people are all about solutions
– just like us. If I need a special,
one of a kind valve, they’ll make it
up on the spot and I’ll have it the
next day. That’s why I’ve insisted
on Dahl products for over
40 years.”.
Turn to Quality. Turn to Dahl.™
Mark AltmanM&T Mechanical
North York, Ontario
Made in Canada. Really. www.dahlvalve.comMade in Canada. ReallyMade in Canada. Really
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Alberta – Preferred Sales & Marketing 403-547-5237 Atlantic Providences – J. Wright Sales 506-459-5719 Saskatchewan – WestCan Mechanical Sales 306-347-2700
heater integrated into the standardheating system warms the interior quicklyfor contractors working in the cold.
Ford E-SeriesFord’s long running E-Series vans includea number of contractor friendlyimprovements for 2013. Rear cargo doorsnow open to 105 or 178 degrees. A newoptional trailer brake controller integratestrailer braking with the vehicle’s anti-lockbraking system. And the navigation systemnow features a 6.5-inch touch screendisplay as part of the instrument panel.
Ford’s Crew Chief electronics packageprovides dispatchers with vital data tomanage vehicles, dispatch drivers, keeptabs on usage patterns including idle timeand keep track of vehicle maintenance.
The company also offers its SYNCsystem, which controls smart phones andother electronic devices with hands-freevoice activation. Like the Express, the E-Series is available in standard and
extended length version in a number ofpayload categories. Engines range froma 4.6-litre V-6 to a 305 hp 6.8 litre V-10.The transmission is a four-speedautomatic with overdrive.
Mercedes-Benz SprinterThe Sprinter may be at the high end ofcargo van price spectrum, but Mercedes-Benz proudly advertises that it offers thelowest overall cost of ownership whenone factors in things like maintenance,insurance costs, financing costs,depreciation, etc.
Originally introduced as the DodgeSprinter, the European designed cargovan is available in 140 and 170-inchwheelbases and standard or high roofversions. A 188 horsepower six-cylinderdiesel with a five-speed automatictransmission provides power.
There are a number of refinements for2013. Regular maintenance intervals,already 20,000 kilometers, have beenextended to 25,000 km. A new comfortseat makes life easier for the driver while
a remote control is available for theauxiliary heater.
Nissan NVNissan’s NV is available in three modelsfor 2013 – the NV 1500, 2500HD and3500HD – available in standard or highroof versions.
This American made (Canton,Mississippi) van includes a number ofenhancements for 2013 including a fullrange of electronics – a five-inch touchscreen navigation system, satellite radioand navigation and an integrated rear-view camera.
Engine choices include a four-litre V-6 and a 5.6-litre V-8, both mated to anautomatic five-speed transmission.
At the end of the day, the contractorneeds a van that will haul everythingthey need to haul with minimalmaintenance using as little fuel aspossible. And where contractors ownmultiple vehicles, a fleet managementsystem is becoming a must-have.
There may be more choice today, buthopefully at some point manufacturerswill address the need for a durable mid-sized van to replace the much-missedGM Astro/Safari vans. ✚
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The new cargo vansContinued from page 13
Smaller Mercedes vans, like the new Citan, are available in other countries,but not yet in Canada.
We mostly used the XFR product for speed. It’s especially
ideal for smaller diameters where you would have to use
copper with soldered joints. When you compare joining
PVC to soldering, there’s no comparison.
The IPEX Teams are good to work with, and they do their
best to address our needs
We mostly used the XFR product for speed. It’s especially
ideal for smaller diameters where you would have to use
copper with soldered joints. When you compare joining
PVC to soldering, there’s no comparison.
The IPEX Teams are good to work with, and they do their
best to address our needs
STEWART MACINTOSH,Installer,
Atlantica Mechanical
STEWART MACINTOSH,Installer,
Atlantica Mechanical
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Air movement in most applications has beenmostly associated with a forced air furnace,a rooftop package unit or even a boosterfan, but when needed from time to time anair handler may be best suited for the
application. Air handlers have come a long way from theearlier basic box designs with noinsulation, belt-driven fan motors anda guesstimate of what motor sizes andpulleys to put on to it, with the mostbasic least expensive control to makeit come together as a package.
A search of “air handler” atWikipedia gives the following result:
“An air handler, or air handling unit(often abbreviated to AHU), is a deviceused to condition and circulate air aspart of a heating, ventilating, and air-conditioning (HVAC) system. An airhandler is usually a large metal box containing a blower,heating or cooling elements filter racks or chambers, soundattenuators, and dampers. Air handlers usually connect toa ductwork ventilation system that distributes theconditioned air through the building and returns it to theAHU. Sometimes AHUs discharge (supply) and admit(return) air directly to and from the space served withoutductwork.
Small air handlers, for local use, are called terminalunits, and may only include an air filter, coil, and blower;these simple terminal units are called blower coils or fancoil units. A larger air handler that conditions 100 percentof outside air, and no recirculated air, is known as amakeup air unit (MAU). An air handler designed foroutdoor use, typically on roofs, is known as a packaged unit(PU) or rooftop unit (RTU).”
The use of the air handler terms originally came inthe commercial marketplace with the acronyms AH,AHU or RTU — much simpler to use in the legend ofmechanical spec sheets and drawings.
Residential applicationsWe will concentrate more on the residential applicationsof what has become the mainstay of the condo markets
where individual suites with a demand water heater canbe self-contained for their domestic heating and hotwater requirements. These small self-contained hydronicunits will fit above a conventional water heater or in acloset or drop ceiling of a laundry room.
In this application the AHU is using potable waterfrom the domestic supply,eliminating the need forexpensive PRV controls, LWCassembly, backflow preventionand separate primary loopcirculators.
Now with more requirementsand applications of use to thegrowing air handler market theneed for improvement wasapparent. Insulated and multi-positional cabinets, the directdrive motor, relays and controlsfor add-on heating and cooling
systems all helped improve these systems. Warrantieswere boosted from one year to five years as a standardto match other product in within the field. Systemscould be built up from a modular based blower sectionto add on air conditioning, or a heat pump and evenforced air hot water coil sections for a boiler system.
Rapid developmentThe new air handlers offer a solutionfor difficult HVAC applications
Please see ‘Moving’ on page 19
By Bob Bettles and Brian Guttormson
What must be remembered is thatthese units may be in-stalled anywhere in thebuilding envelope.
The return airplenum base israised in this closetinstallation.
Six air handlers were used in this residentialmulti-unit application. Note shower pan belowfor drainage.
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Product development brought us smaller designs andspace saving cabinets that could be hung on walls orhidden in concealed spaces. With multi-positioncabinets return air features went multi-positional as well,such as on the bottom and sides as had already beendone with furnaces.
With air conditioning becoming more of a necessitythan an option for many home owners, somemanufacturers saw the need for the A/C condensate tobe drained away from the evaporator coil in an upflowmanner, or added a reversible secondary drain pan forhorizontal applications, but most now have it built in.(Check your factory spec booklet.)
Chiller coils addedSome “terminal unit” manufacturers have expanded intothe chilled water coils for cooling. These may be fed froma cooling tower or chiller in a large commercial space forspot heating/cooling or zones within the space.Depending on the application, these units may useindividual coils for each demand or a single coil feedwith a common loop within the structure.
Capacity charts are provided within themanufacturer’s manuals showing heating value tables.These ratings are based on entering water temperaturesranging from 120ºF, 140ºF, and 180ºF. These watertemperatures give multiple heating Btu’s in a tableformat depending on the pump capacity in gallons perminute (GPM).
Air handlers are available that, other than the waterconnections, will resemble today’s high efficient gasproducts. These will have control boards and multipletemperature sensors to monitor water temperatures inand out of the units. If used in a potable water system,the unit will pause the heating cycle and wait for a fewminutes if a high load within the building envelopecauses the inlet water to drop too low.
Additional sensors may be used within the softwareto modulate fan speeds for even comfort levels withinthe system. Sensors will also recognize freezingtemperatures in the proximity of the water coil. If theselow temperatures occur the control will turn off the airconditioning, turn on the pump and also energize analarm relay to notify the occupants of a problem.
Control board designs have further been improvedwith pre-wired plugs in place for added options such as aircleaners, external connections such as for dampers, addedpumps, freeze protection adjustments at 38ºF to 42ºF, andpre-wired thermostat connections in low voltages.
Location, location, locationWhat must be remembered is that these units may beinstalled anywhere in the building envelope. As such, itis recommended to install a drain pan under these unitsif they are installed above a finished area! While a 1-¼-inch deep drain pan with a ¾-inch poly pipe may besufficient in most situations, in the event of a frozenevaporator coil it is not sufficient for a failed potable
water coil fed at domestic water pressures! A fabricatedshower base with a proper sized drain is recommended.
These units may be used with potable water forindividual locations or, as the attached photos show, as
multiple units in larger dwellings for individual zonesfed by a central boiler with a primary boiler loop andindividual secondary loops to each air handler location.The possibilities are almost endless! ✚
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Residential zone controlThe Acclimate zoningCommunicating Controlfrom Luxaire providesup to six zones of tem-perature and humiditycontrol using a singlezone panel. The high-de-finition, touch screen isdesigned to be used as amaster and a zoning sensor. Damper flexibilityincludes power open/power close dampers (requiredwhen not using a bypass damper), normally open andnormally closed dampers. Fan programming and airflowadjustments can be made by zone. A simplified four-wireplug-and-play design eases installation.Luxaire/Johnson Controls uwww.joinluxaire.com
Quick installationExhibited at the recent CIPHEXWest show in Vancouver, the newNavien NPE Series gas condensingtankless water heater substantiallyreduces time and labor for atypical tankless retrofit by utilizingexisting ½-inch gas lines andexisting flue chases. These unitsfeature dual stainless steel heatexchangers and include a buffertank and recirculation pump,
achieving an energy factor of .95. They are fieldconvertible to propane, can be vented up to 60’ with two-inch PVC, with gas lines up to 24 feet.Navien u www.tanklessmadesimple.com
Remote accessand controlThe Venstar SkyportWi-Fi key for thecompany’s ColorTouchcommercial thermostatconnects to SkyportCloud Services andenables HVAC contractors and installers to remotelycontrol, monitor and troubleshoot their clients’ColorTouch commercial thermostats. These units arecompatible with iPhone, iTouch, iPad, Android, Mac andPC devices; the mobile app is free.Venstar u www.venstar.com
The new modulating/condensing Cadet heating boiler isdesigned to offer high efficiency at a relatively low cost. Theyare available in four standard models with gas inputs from40,000 to 120,000 Btu/h, along with a 120,000 Btu/hcombination model that includes DHW heating.
These units feature a commercial-grade, ASME certified(H-stamped) heat exchanger and a lightweight, expanded
polypropylene jacket. A push-button digitalcontrol provides a constant display of actualoutput temperature and allows for easyadjustment of the set point. Outdoor resetmaintains a steady, consistent indoor comfortlevel year-round.
There are a number of venting optionsincluding vertical or sidewall direct venting. Air intake and exhaustventing can run up to 100 feet using polypropylene, PVC, CPVC orstainless steel, reports the manufacturer.
Cadet Boiler u www.cadetboiler.com
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The new Cadetboiler offers high efficiency andstraightforward installation
Today’s high turn-down boilers andboiler plants are really bringing gaspressure issues to the forefront.
A senior gas inspector I knowonce said: “I always look to gas pressureas the most likely cause of a persistentproblem – it’s the first thing I look for.” Ihave taken that sage advice to heart lately,and get out my manometer and pressuregauges as soon as I go into a boiler room– the same thing I was taught 30 yearsago when I first started in the business.
Some younger gas fitters look at mestrangely when I drag out the old U-tubemanometer and give it to them to hookup, but I soon convince them that itnever lies – ever. This is serious stuff.When it comes to gas, NEVER, EVERtake shortcuts or use instruments youaren’t absolutely 100 percent positive arecompletely accurate.
Simple equipmentWe are living in interesting times. Gaspressure regulation equipment has bothchanged dramatically, and yet prettymuch stayed the same. Let me explainwhat has stayed the same, and then whathas changed.
Figure 1 shows the basic componentsof a gas pressure regulator. These haven’tchanged much. However, there are manynew permutations in common use todaythat were rare in the past – more on that later.
A basic regulator is not a complicatedpiece of machinery. The “measuringelement” is always a flexible diaphragmthat will stretch and flex in the directionof the lower pressure – think of a balloon– you blow into it, and create a higherpressure than atmospheric, which causesit to stretch outward – you squeeze it, and
it wants to push air back into your mouth.In the case of a regulator diaphragm,
there is a spring “loading element” thatpushes it to stretch in one direction. Thespring side of the diaphragm is atatmospheric pressure – plus the springtension, so if we put pressure on theopposite side, it will push against thespring and un-stretch the diaphragm.The “measuring element” (orifice andvalve seat) is attached to the diaphragm.
When the valve seat moves awayfrom the orifice (because the spring ispushing the valve stem), the pressuredrop across the orifice is decreased,allowing more gas to flow throughfrom the upstream to the downstreamside. If more gas flows through theorifice than the appliance can take up,the excess gas starts to build back-pressure, and the diaphragm pushes
back against the spring until the orificestarts to close, increasing the pressuredrop and choking off the gas flow untilit is balanced and the restrictingelement is open just enough to allow
the correct amount of gas through.If the appliance turns off and no more
gas is required, the back pressure exceedsthe spring tension and the diaphragmpulls the seat tight up against the orifice,causing the regulator to “lock up” andcompletely stop the flow of gas. Thespring side of the regulator requires avent to allow the upper chamber to
breathe and vent the gas should adiaphragm rupture occur. Leak limitersallow breathing, but restrict gas escape.
Demanding requirementsRegulators are designed to work best in afairly narrow pressure range due to thespring/diaphragm relationship (you canonly make a spring so short and a
Specifying the right gas regulator for today’s high turn-down boilers
By Roy Collver
[ ]
Fig. 1: basic components of a gas pressure regulator.
We are seeing boiler rooms supplied with two andfive-pound gas pres-sures to appliances that require only inchesof pressure…
diaphragm so small until you losesensitivity) and a fairly narrow flowrange due to the restricting elementpressure drop range (a biggerorifice/harder seat material = more flow(harder to shut off), smaller orifice softerseat material = less flow (easier to lockup) – pick one. These design restrictionsare revealing problems in the field due tothe demanding requirements newappliances are putting on traditionallydesigned regulators.
The basic “main” gas regulator isdesigned to deliver a stable gas pressureto the inlet of an appliance, and is put in
place when the supply pressure to theboiler room is higher that that requiredat the appliance. If the main regulatorgets “wobbly” and has problems keepingthat pressure stable, then individualappliance regulators are employed. Whywould the main regulator becomeunstable? Please see Figure 2.
The curve shows that a regulator canonly maintain an even pressure over alimited gas flow volume range. Whenthere is no flow, the regulator should gointo positive shut-off mode and thepressure might rise slightly until the seatseals tight. This increase in pressure has
traditionally meant that pressure is keptto a maximum of 10 percent of theoperating requirement, but we have seensome issues arise lately that are causingunacceptable lock-up pressures andunstable low input pressure stability.
Minimum inlet pressure upstream ofthe regulator should be at least one inchabove the maximum adjustment rangeof the spring for the downstreampressure required to allow stableregulation. Fuel supply pressureproblems can also create issues. Aregulator orifice will only allow so muchgas through it before enough pressuredrop is created to decrease thedownstream pressure below theacceptable minimum. You can see fromthe chart that once the flow exceeds theorifice capacity, the pressure just falls offthe cliff. If you are seeing low pressureproblems out there, please e-mail me thedetails, and we can attack that issue next.
Regulator sizingAccurate regulator sizing considers:1 Inlet pressure available2 Required outlet pressure3 Maximum flow rate required by the
appliance or appliances4 Minimum flow rate
When you consider the sizing criteriaabove, you can see why many moderninstallations are presenting problems forsystem designers. High turn-downboilers and boiler plants are creatingchallenges in normal regulator sizing.
We are seeing boiler rooms suppliedwith two and five-pound gas pressures to
appliances that require only inches ofpressure and have gas valves rated for amaximum of one half pound pressures.If it all goes wrong, the appliances maysee pressures far in excess of theirmaximum rating, causing damage to gasvalve components.
We need to maintain stable pressures,usually between four and 14 inches watercolumn at widely varying flow rates.
In the past, a regulator might have todeal with a turn-down of no more thanfour to one (turn-down = maximumflow rate divided by minimum flowrate). As soon as multiple boilers startedto become common, we started to see gaspressure control issues. Add modulationto the mix and we often get turn downratios of well over 20 to 1. Manyregulators today can handle wide turn-downs, but all too often in retrofit jobs,designers and installers try to re-use theexisting regulator without seeing if it isup to the task. This often results inexcessive lock up pressure, pressure creepand unstable low flow operation dueprimarily to an oversized and/or wornorifice and seat.
In the next issue we will look at simplefixes to ensure your system pressure stayswithin specification. ✚
Roy Collver is anauthor and consultanton hydronic heatingbased in Peachland,B.C. He can be reached [email protected]
Fig. 2: The curve shows that a regulator can only maintain an even pressureover a limited gas flow volume range.
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One of the most important parts of arefrigeration installation is unfortunatelyone of the most overlooked. Arefrigeration system design can be
immaculate, a proper evaporator-condenser matchcan be made using the most advanced software andthe best components can be selected; none of thatmatters if the installer doesn’t get the piping right.
Unless you happen to be working on an installwith a lot of engineered refrigeration like asupermarket or industrial facility, it’s also quite likelythat nobody cares either except, of course, whensomething doesn’t work.
I have been involved with hundreds of small andmedium sized refrigeration installations fromrestaurants with single condensing units serving
multiple small cases (I’m not a terribly big fan of mostof these set-ups by the way) to extremely high-endresearch facilities and I cannot think of a single timewhen anyone has ever checked my piping.
I’ve had to produce painstakingly long submittalsso that someone can be satisfied that the time clockwill be the right voltage and am left to my own devicesfor things that are way more important, say the pipesizing and suction trap locations for a walk-in coolerthat has the condensing unit three stories above theevaporator. The reason these situations seem to occurin refrigeration is a subject for another day; the fact isthat they are common and the refrigeration contractoris very often responsible (and sometimes also liable)for the final design of piping systems.
Refrigerant pipe installationThere are a number of things we care about from apipe design and installation perspective. For example;pipe size, pipe material, joining method, oil traps, andfitting details to name a few. These can be brokendown into three categories, physical parameters,installation parameters and performance parameters.In the vast majority of non-transport refrigeration,the piping is type ACR copper and the fittings arebrazed together using silfos.
There are some other exotic joining materials andother piping types for specialized applications butwe aren’t going to discuss these here. It wouldn’t beproper, however, to mention joining/brazingmethods without the customary “50/50 and 95/5soft solders are not appropriate for refrigerationpiping, ever.” Now that that’s out of the way, let’s takea look at the particulars of refrigerant pipeinstallation.
Oil return criticalThe biggest concern about refrigerant pipeinstallation is the oil return because without oilreturn the compressor won’t run for long. No matterwhether there is an oil separator installed or not, a
certain amount of oil leaves with the refrigerant gasand we need to pipe the system in a fashion thatallows it to return as efficiently as we can.
Almost all oil in use today is miscible with liquidrefrigerant, meaning that they mix together, soliquid lines are not of too much concern as far as oilreturn goes. The discharge and suction lines arewhere we run into problems. When piping anyvapour refrigeration line it’s important to alwayskeep in mind the oil return. There are a few areas weneed to be concerned with: fitting selection, verticalrisers and horizontal piping.
Horizontal vapour refrigerant piping shouldalways be sloped in the direction of flow. A 0.5percent slope is typical (approximately one inch in20 ft.). That’s about as hard as it gets. It’s surprisinghow often this simple recommendation isn’tfollowed.
Vertical lines are another story and require a bitmore consideration. We won’t get into pipe sizing indetail this article, but one of the key factors in sizingrefrigerant lines is managing the velocity of therefrigerant to keep the oil moving without too muchincrease in pressure drop.
In a vertical pipe, this velocity is extremelyimportant and should not usually be less than 1500feet per minute. This usually means that verticalsections of suction and discharge lines are one pipesize smaller than the horizontal piping.
Using trapsAdditionally most vertical sections require an oiltrap to help collect the oil so that it can becomeentrained by the refrigerant. Oil traps work byincreasing the refrigerant velocity over the oil so thatthe oil becomes entrained with the refrigerantmoving vertically up the tubing.
Now the ten thousand dollar question; whenexactly do you need a trap? This is probably one ofhardest things to find consistent information about.Instead of going through what a number ofmanufacturers say and pointing out the differences,I’m going to tell you what I recommend. Take it forwhat it’s worth.
However, there’s one small caveat first – I havenoticed some completely absurd differences in whatmanufacturers recommend as far as oil trapping withR410a in air conditioning applications. I have verylittle to do with residential air conditioning so I have
Refrigeration pipingPoor piping practices candefeat the best designs
By Greg Scrivener
I cannot think of a single time when anyone hasever checked my piping.
In this sloppy installation, the condensingunits are about 20 feet above these casesuction lines. There are no traps, the suctionlines join together incorrectly and are run atslopes in the wall.
First thing, the decision of when to trapis a bit of a sliding scale. The colder the oilis leaving the evaporator the more viscousthe oil will be and the more important atrap will become; I let that influence mydecision about when to put a trap.Generally, at standard refrig erationtemperatures, a suction line trap shouldbe used any time the vertical rise is greaterthan 3-4 feet and again every 12-15 feetfor the length of the vertical rise.
Discharge lines should always have atrap when they first turn vertical followingthe compressor to prevent oil fromdraining back onto the discharge valves inthe compressor. After that, a rise of six ormore feet should generally have a trap andthen every 15-20 feet after that.
The discharge line is not as critical asthe suction line because the oil is hot andbecomes entrained more easily with therefrigerant. If the truth be known, weprobably over-trap most of the time,especially with POE oil and HFCrefrigerants, but I think that the generalconsensus has been that if you are unsure,the extra pressure drop introduced in anoil trap is better than the risk that youhave extremely difficult to diagnose oilreturn problems in the future.
In cases where there is some form ofcapacity control such as compressor hot
gas bypass, cylinder unloading ormultiple compressor cycling, it is likelythat a double riser will be required toensure that the velocity remains highenough for oil return.
Solid connectionsAnother common piping mistake made,particularly by apprentices, is not payingenough attention to fitting theevaporator connections and pipe sizechanges. Figure 1 shows both the correctand incorrect way to decrease the suctionline size after an evaporator connection.
Notice that it is not a good idea toreduce the pipe size from an evaporatoroutlet in the horizontal or in upward inthe vertical for two different reasons:Reducing the pipe size in the horizontalcreates an area in the upstream pipe whereoil can collect. If the pipe is sufficientlyoversized (the refrigerant velocity will below), this oil could stay there for the life ofthe system. Perhaps this is not a big deal ina system that has a compressor with an oillevel sight glass where you can add a littleoil if it gets low, but many systems do notand regardless you could lose heat transfersurface in the evaporator. Traditionalmineral and alkyl-benzene oil clings to theside of the pipe when it is going upwardand any change in the pipe size in a verticalcan disrupt this flow. Incidentally, this isalso the reason that angled risers (i.e. 45Elbows on the vertical) are a bad idea. POEoil is not as sensitive to the vertical pipesize changes due to the way the oil isentrained with the refrigerant, particularlyat temperatures typical in air conditioningapplications. Perhaps this is why there isa lot of variation among manufacturers inpiping recommendations. Regardless, it isalways better to be safe and follow properpiping practices.
Nitrogen purgingThe last common problem to do withpipe installation we are going to discuss isnitrogen purging. This is an absolutemust in almost all circumstances. Theeffect is very pronounced on systems withlarger pipe sizes but is equally importantfor the small ones. I have seen TX Valvescreens plugged at start-up in every singleevaporator of a warehouse cooler becauseof installers that simply neglected to purgewhen it was inconvenient. I really can’tstress this point enough. A commonnitrogen flow rate is five cubic feet perhour and a good flow meter is a must.
When in doubt, a way to check,especially when the flow meter is a longway away from you, is to hold thenitrogen hose to your cheek or ear. Youshould be able to feel the nitrogen flow,but it shouldn’t be really ‘blowing’. As apoint of interest, most bid-spec jobsspecify nitrogen purging and I havenever, not once, been asked to produceevidence that it was done... a tragedy asfar as I’m concerned.
Taking proper care to do refrigerantpiping correctly and to meet or exceedindustry standards not only insures thateverything works as well as possible, butalso lends credibility to our industry.Refrigerant piping is not necessarily simpleand it does require that you pay attentionand think through your decisions, but it’snot that terribly difficult either. With a littlebit of good information, a refrigerationtechnician should be able to make the rightpiping decisions. ✚
Don’t forget to remove the plugsfrom the pipe before you braze it!
Fig. 1: The correct and incorrect ways to decrease a suction line.Greg Scriveneris project anddesign managerfor PolarRefrigerationService Ltd. inSaskatoon. He is a
journeyman refrigeration mechanic, alicensed gas fitter, holds RSES CMSdesignation in commercialrefrigeration and is a mechanicalengineer in training. He can be reachedat [email protected].
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Of all the unpleasant conditions I endured to become aplumber, one of the worst was a sump pump installation.It seemed that I had awakened some unspeakable cursewhen I disturbed the contents of the pit. Tempted as Iwas to abandon my quest, it was only my training thatgot me through the ordeal. I held fast to the wise wordsof my journeyman: “get to work or you don’t get paid.”He was a man of few words.
Obviously the constructioncrew had been using the sumppit as a latrine and theirterrible secret was onlydiscovered after the newhome was finished inside andout. Pumping that repulsivesludge out only moved theproblem to the patio area inthe yard through the pre-sleeved discharge pipe as theneighbourhood was not yet served by a storm waterdrainage system. I thank all site supervisors forenforcing zero tolerance on this issue; after all, portable
toilets are mandatory on every jobsite. Unlike most system designs, the foundation drain
and sump pit are built to intentionally direct a knownhazard right into the building. Ground water andeverything else that seeps down around the footings iscollected in the pit and a mechanical device is expectedto safely and unfailingly remove it from the home. Thedamaging effects of misplaced water cannot beoverstated; it simply destroys everything. With that inmind let’s consider what passes as an acceptable defensefor the average home.
Early sump pumpsIn past, the residents were typically “protected” by asad looking little contraption known as a pedestal
pump. Complete with itsexposed float mechanism andlift rod it had the aspect of anawkward wading bird tryingto balance on one leg. Verylittle was needed to disrupt thesensing mechanism and theywere prone to tip-overs whichrendered them inoperable.Improvements were made andsubmersibles became theindustry standard but, like the
pedestal, they required hydro to operate, a fleetingthing during a storm sometimes.
Many repeat flood victims have sought back-up
systems to guard against another costly event during ablackout. For one cottage country customer with thisconcern, I installed a battery operated secondarypump complete with an on-site audible/visible highwater alarm that was also connected to his cell phone.Within a short time his original electric pump burntout from non-stop running as did my replacementelectric pump. I was forever responding to the alarmsthe city bound owner was receiving on his phone. Thisground water problem was frustrating me and costinghim a lot of money.
Later I found out that he recently had the basementadded to the original cottage which was built on piersand, plainly visible in day-of-purchase photos,surrounded by water. I asked if there was a flood whenthe pic was taken. The owner explained that the lake hadshifted and his property had to be reclaimed from thelake. Some time later he wanted more storage space andcouldn’t build closer to the property line so he decidedthat going down was his best available option. From abusiness point of view, I agree. I miss that guy.
Designing sump systemsOther customers have similar but potentially solvableground water problems. These customers are usuallyvery well informed and have already taken action toproperly slope the landscaping grade away from thebuilding and have directed the downspouts and sump
■ Plumbing
Solving water problems with a sump pump system
By Mark P. Evans
Please see ‘Sump’ on page 29
The damaging effects of misplaced watercannot be overstated; it simply destroys everything.
Plumber Robert Szachury of Turbo Plumbing in Whistler, B.C. has seen his fairshare of nasty pits, but he’s still smiling during this pump repair.
discharge so the same water is not continually re-pumped. Most importantly, they have confirmed thatthe building is not in a lake.
When I have the opportunity to contribute to asystem overhaul, the piping workmanship is a point ofinterest. Of course plumbing logic dictates that thedischarge line be sized, sloped and strapped properlywith a smooth path to freedom which includes a union,check, and gate valve.
Finally we must decide which device(s) we’ll use toprotect the home and maintain sanitary conditions.
Centrifugal pumps like the ones already mentionedare most commonly used, but I have installed a fewventuri style “pumps” that I connected directly to themunicipal water supply. The good water is forcedthrough an ingenious mechanism that manipulates anatural phenomenon in such a way that the bad watergets sucked along with the good and is removed.
This system is not cheap and goes against my grainfor several reasons, not the least of which is the obviouswaste of fresh clean water. More to the hazard element isthe need to leave the water supply on while away. Ibelieve this creates a more potentially disastroussituation due to the fully charged systems unmannedstatus. Also, the water supply is necessarily cross-connected to use this system and I agree withmanufacturer’s specifications that the hazard rating issevere. Only a device that carries the highest materialand labour installation costs as well as an annual test feewill satisfy the code requirement, the reduced pressureprinciple backflow preventer (R.P.). Unfortunately, somepeople’s ground water problem forces them to accept theextra cost, maintenance and potential hazards of thistype of system.
Locating the sump pitAside from pump selection, too little consideration hasbeen extended to the whole idea of having an open sumppit within ones living space. I think more study isrequired to properly address this deceptively simpleconcept. I’ve heard TV and radio ads warn that standingwater in the yard creates unclean conditions and attracts
mosquitoes. People are advised to dump out wheelbarrels and even old tires but few are aware that the sameconditions may exist right in their own homes.
Ideally the sump pit should have a sealed lid and itsown floor drain positioned close to the sanitary floordrain with a shallow groove cut in the concrete to jointhem. The systems would act as backup for each otherwith a visible indication of a problem if it occurs.The lowly sump pit doesn’t get a lot of attention untilthe pump malfunctions, in which case the homeowneroften gets a hard lesson on the damaging effects of water.Maintenance is the cheapest form of repair I’ve heard,so it doesn’t hurt to advise your client to throw a jiggerof bleach into the sump pit and make the pump runoccasionally to prevent a catastrophe.
Heed ye these words lest ye suffer your own ... “talesfrom the pit”… ✚
■ Faucets & Fixtures
■ Faucets & FixturesAntimicrobial finishZurn Industries has intro-duced its EcoVantagecommercial fixtureswith the com-pany’s SilverShieldantimicrobial technol-ogy. A permanent antimi-crobial glazed ceramic surface inhibits the growth ofstain and odor causing bacteria, mold, and mildew. Thisincreases sanitation while minimizing the need for harshchemical cleaning, making these products ideal forhealthcare and school environments.Zurn Industries u www.zurn.com
Water savings recognizedAmerican StandardBrands has been honoredwith the U.S. Environ-mental ProtectionAgency’s (EPA) 2012 Wa-terSense ManufacturerPartner of the Year Awardin recognition of the com-pany’s water-saving tech-nological advances andongoing efforts to raiseawareness about waterconservation. The award
is, in part, for developing the SAVER high efficiency toi-let (HET). Offered in both one and two-piece models, ituses only 1.28 gallons per flush and is designed to be in-stalled without tools.American Standard uwww.americanstandard.ca
Android/iPhone appSaniflo has released anew free app for An-droid and iPhone fortech-savvy plumbers.The application makesit easier for plumbers,contractors and con-sumers get product in-formation and newsabout Saniflo macerat-ing toilets and otherproducts through theirsmart phones. Visit www.saniflo.ca to download the app.Saniflo u www.saniflo.ca
Tub/shower upgrade kitThe new UniversalTub and Shower fix-ture from Price Pfis-ter is compatible witheight different watervalves from threemanufacturers – Pfis-ter, Moen and Delta.It allows changingout the trim withoutthe removal of tile orfiberglass from the wall. The upgrade kit includes a five-function showerhead, a handle kit that accommodateseight different valves and an all-metal tub spout. It isavailable in a wide variety of different styles and finishesto match bathroom décor, with chrome, brushed nickelor Tuscan bronze finishes. Price Pfister u www.pfisterfaucets.com.
Continued from page 27
Sump pumps
Mark P. Evans is a contractor, master plumberand heating technician based in Waterloo, Ont. He can be reached [email protected]
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Pre-Plumbed Control BoxSensor, controller, power supply and solenoid shown are sold separately as part of trim kits.
Compact rotary hammerThe new M12Cordless ½-inch SDS Plusrotary hammerdrill from MilwaukeeTool weighs only 3.9-pounds (1.77kg) and isonly nine inches (23cm)in length, making it idealfor drilling in tightspaces and all-day use. It drills over 55holes per charge from its M12 Red Lithium battery.Milwaukee Tool Co. uwww.milwaukeetool.com
Drain machine upgradedThe upgraded Metro power draincleaner from General PipeCleaners now features stairclimbers to more easily transport itup and down stairs. This toughlittle machine is designed to handleroots and other difficult stoppagesin three through six-inch drainlines with a capacity of 75 ft. of5/8-inch General Flexicore cable.
For smaller jobs, the contractor can switch to 100 ft. ofspecially designed 9/16” Flexicore cable. A narrow profilefacilitates handling in tight places.General Pipe Cleaners u www.drainbrain.com
Quick welding clampThe new Ultra Qwik Clamp andUltra Qwik Fit models fromSumner Manufacturing featurepush-button thread adjustmentfor pipe-to-pipe, pipe-to-fitting, pipe-to-flange andfitting-to-fitting pipe weldingfit-ups. Holding the push-button in on the tool housingfrees the threading to be adjusted atwill to the correct size. Releasing the button allows theuser to fine adjust and tighten the tools. These clamps areavailable for three sizes of pipe: 1” – 2-1/2” (25 – 65 mm),2” – 6” (50 – 150 mm) and 5” – 12” (127 – 300 mm).Sumner Manufacturing u www.sumner.com
Breaking concreteA new line of high impactdemolition steel chisels fromDeWalt has been engineered withtwo types of steel to minimizebreakage and offer optimaldurability when breaking holes inor removing concrete. Anoptimized tip geometry composedof high wear-resistant steel
maximizes tip strength, while the durable shock-resistant steel prevents shaft breakage.DeWalt u www.dewalt.com
■ Tools & Instruments
Four-port wireless manifoldThe SMAN4 wireless, four-port, digital manifold with abuilt-in vacuum gauge from Fieldpiece allows HVACRtechnicians to evacuate a system, pull a vacuum, addrefrigerant and dial in the charge at one time. There arethree standard ¼-inch ports and one 3/8-inch port. Itwirelessly receives live indoor wet bulb (WB) andoutdoor dry bulb (DB) temperatures, then calculatesreal-time target superheat and digitally displays both thetarget superheat and actual superheat on the large,backlit display. It also displays actual subcooling andsuperheat simultaneously.Fieldpiece u www.fieldpiece.com
Flex™ 100H is specifically designed for small applications such as town houses, condominiums and apartment buildings. With its exclusive TurboTouch™ feature, the Flex can deliver up to 50% more exhaust capacity to easily meet supplemental ventilation needs whenever additional airflow is required.
The ECO-Touch is a complete control providing the contractors and homeowners with a higher level of control over indoor air quality. The ECO-Touch is ECO-friendly by lowering energy consumption by up to 25%, it is simple and sleek and easy to install.
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As the post Second World War babyboomers retire and a skilled labourshortage looms, it’s still not easy tobecome an apprentice. A new jointprogram by southern Ontario
refrigeration contractors and the union may not make iteasier, but it is designed to ensure that the candidateswith the best chance of success are chosen to fill the 80to 150 first-year apprentice spots that come open eachyear in southern Ontario.
“We wanted to improve what we had in the past andensure the quality of the apprentices that we are bringinginto the industry,” said Brian Carey, division managerfor contractor Black & McDonald, Stoney Creek, Ont.,and co-chairman of the Apprentice Intake Committeeon behalf of the Ontario Refrigeration and AirConditioning Contractors Association (ORAC) and UALocal 787 – Joint Training and ApprenticeshipCommittee (JTAC).
The new application process at www.HVACR.cabegan Jan. 1, 2012. Prospective apprentices applydirectly to the JTAC First Year Apprenticeship Program,which accepts applications from Dec. 1 to Feb. 28 eachyear. They go through a rigorous screening process andonce accepted, are placed on the Available for Hire list,which can be accessed by unionized contractorsthroughout Ontario.
“We’ve totally eliminated the ‘who-you-know’concept and we’re making whether you are right for thetrade the number one criteria,” said Carey. Today’srefrigeration trade is challenging, he added. “They haveto know electronics, they have to know computers theyhave to know refrigeration curves – there’s a lot morescience and math in it.”
Candidates must havea Grade 12 diploma withEnglish and math alongwith Grade 12 chemistryor Grade 11 or 12physics. They must be ingood physical conditionand must have a driver’s licence.
The screening process starts as soon as candidates goonline to apply. They complete a lengthy list of questionsthat are graded by specially created software.
If successful, applicants must then take a math, scienceand mechanical aptitude test and pay the testing fee.
The Apprentice Intake Committee reviews the resultsand those with the highest scores are invited to a jobinterview. Finally, those evaluated at the highest point levelwill be accepted into the first year apprenticeship program.
The Committee is looking for apprentices that
understand that even once they have their certificate ofqualification (journeyman ticket), the education doesn’tend there.
“They have to invest in a lot of ongoing education.That’s one of the key attributes we are looking for –
people who will investin themselves becauseeven once you passthe apprenticeshipprogram and get yourlicence, it doesn’tmake you an effective
journeyman unless you continually invest in yourselfand stay up on the latest technology,” said Carey.
A solid career pathOne of the challenges in recent years is thateducators and parents don’t encourage young peopleto enter the trades. The Committee has been tryingto change that.
“It’s a great profession. It’s very well paying. It’s verychallenging and rewarding technically because thetechnology on the equipment is changing every day and
becoming more and more microprocessor oriented.There’s a lot more sophistication, mostly due to energysaving requirements and initiatives,” said Carey.
Some contractors are reluctant to hire apprentices.However, in a tough economic climate contractors haveto be careful with their labour ratios. “You need first yearapprentices to replace the upcoming boom in retiringjourneymen while maintaining a balanced labour force,”he added.
Hiring employees as first year apprentices has otheradvantages. “We want to train them and coach them tobecome better mechanics, adding client value andhelping the industry move forward.”
In the first year, with modest marketing, the programhad about 3,000 visits to the website and 80 successfulapplicants. Of that number, 60 had been hired at thetime of writing. “By improving the process, we areenhancing contractors’ confidence levels because theyknow they are going to get good apprentices,” said Carey.
Member contractors can access the approvedcandidate listing at www.HVACRapprentice.ca and non-ORAC contractors can obtain the list from programmanager Tracey Shepherd at [email protected]. ✚
Developing close relation-ships with customers hasproved a successful busi-ness formula for one Ot-tawa area wholesaler.
“We are always trying to diagnose whatthe pain of the customer is in acquiringand completing projects… We know thatif we help customers succeed they will beat our door,” said Claude DesRosiers, vicepresident and general manager of BoonePlumbing Supply Co. in Ottawa(www.boone.ca).
The relationship has changedconsiderably in DesRosiers’ 40 years inthe business. “As a distributor today youalmost have to be an integral part of thecontractor’s business. You have to beintegrated in their process to understandhow they complete their projects so thatyou can intervene in a way where youreally support them and you really addvalue because you are taking a lot ofhassle away from them.”
It’s not an easy task because BoonePlumbing serves many segments –contractors in waterworks, industrialcommercial and residential along witharchitects, interior designers and end users.
The company is celebrating 75 years inbusiness this year. Today it operates fourwholesale locations and three Mondeau(world of water) plumbing showroomsin the Ottawa/Gatineau (Hull) region.
A different worldIt was a different world in 1937 whenRalph and Charles Boone opened theirsmall plumbing contracting business indowntown Ottawa. Times were stillpretty tough towards the end of theGreat Depression of the 30s andCanada’s capital city was still a relativelysmall town.
But the Boones had a nose forbusiness and it didn’t take them long torealize that getting into distributionwould be a profitable way to expand.They did just that in their very first yearand Boone Plumbing Supply was born.
It remained a relatively smalldistributor until 1972 when Ralph Boonegot together with Pierre DesRosiers andJack Miniuk, creating DesRosiersDistributors across the Ottawa River onCousineau Street in Gatineau andcombining it with Boone Plumbing. Thecompany had 37 employees and suppliedmainly small commercial and residentialprojects.
In 1975 the company was sold andwent through a number of owners overthe next ten years. While constantlychanging ownership proved a barrier tolong-term planning and investment, theacquisition of Ottawa HVAC distributerGuy Chenevert Ltee. in 1977 broughtBoone Plumbing Supply into the HVACdistribution business, something thatremains a key component today with a
new state-of –the-art sheet metal shopwith a computerized plasma cutter, a newspiral machine and an experienced staff.
A new beginningMontreal-based Groupe Deschenes –currently the largest Canadian-ownedplumbing and HVAC wholesaler –acquired Boone Plumbing in 1987. Thatmarked a key turning point. For the firsttime in many years the owners weredevoted exclusively to the plumbing andHVAC distribution business.
“That’s where everything took to theright direction going forward,” remarkedDesRosiers. “Finally we had (an owner)that had a long-term plan for Boone andwanted to make a proper investment inthe distribution business.”
Five years after Deschenes acquired
Boone, Pierre Des Rosier announced hisretirement after a long and successfulcareer and after ensuring the talent wasin place to keep the company on theright track.
Groupe Deschenes made a heavyinvestment in buildings and systems. Itreplaced an outdated computer systemright away and began planning newfacilities. Boone Plumbing was operatingfrom a 30,000 sq. ft. warehouse inOttawa. “The business was growing, butwe didn’t have the facilities to keepgrowing,” said DesRosiers.
Across the river in Hull the situationwas even worse. The company wasoperating from an old 25,000 sq. ft. rat-infested kiln originally designed fordrying concrete blocks. “I rememberworking at night and you could hear therats having fights in the walls because itwas close to a small stream which wasbasically an open sewer,” recallsDesRosiers. “It was just terrible.”
Deschenes moved quickly to improvethe situation, buying a 40,000 sq. ft.warehouse in Gatineau in 1989. InOttawa, the company moved to its currentheadquarters in the east end on AlgomaRoad in 1995. As well, a new west endOttawa branch had been opened in 1984.
Showrooms introducedIn the 1990s big box retail homeimprovement stores began to make theirpresence felt and television shows helpedmake kitchen and bathroom renovationa national pastime. The customer was nolonger satisfied with the faucet theplumber had in his truck.
Boone Plumbing Supply was one ofthe first wholesalers to take advantage ofthis new trend, launching its Mondeauhigh-end plumbing showroom in 1997.
The new showroom gave contractorsa trade-friendly place to send theircustomers to select plumbingcomponents. In 2000 Boone acquired theCleroux Plumbing showroom inGatineau, which became the secondMondeau showroom.
In 2003 the company opened a newbranch and showroom in Kanata, 22kilometers west of Ottawa. The formercity, amalgamated into Ottawa in 2001,is Canada’s “Silicone Valley” and washome to Nortel and many smaller high-tech companies.
“It’s been a good market for us fromthe beginning,” noted DesRosiers. In fact,it remains so despite the demise ofNortel. The smaller high-tech companiesare flourishing and Kanata is located in abeautiful area on the Ottawa River,
A close relationship with customers has been key in Boone’s success.
Boone Plumbing is constantly refining its Mondeau plumbing showrooms.
Understanding
PAIN Close relationship with customers has served Ottawa wholesaler well
for 75 years By Simon Blake
making it a strong draw for new home buyers.The Algoma warehouse was expanded in 2003 and
2011, bringing the floor area up to 110,000 sq. ft. Thelatest addition included 35,000 additional sq. ft. on thewarehouse and a 14,000 sq. ft. showroom, scheduled toopen in late October. In 2008 the company bought 7.5acres behind the Algoma facility to allow for futureexpansion.
Boone Plumbing has long devoted considerable effortto mentoring its employees and working with them to
make the plumbing industry a long-term career. Opencommunication, training and profit sharing all help givethe employees a sense of ownership. Many have beenwith Boone Plumbing for years.
Another key for Boone Plumbing Supply is beingactive in the community. For the past three years thecompany has partnered with masonry and buildingsupplies distributor Merkley Supply in Ottawa toorganize the Ride the Rideau bicycle event to raise moneyfor the Ottawa Hospital Foundation in support of cancerresearch. So far, the ride has raised $4.4 million.
It’s a complicated world these days, but one in whichBoone Plumbing Supply continues to thrive.✚
Boone Plumbing Supply Co. in Ottawa wasamong the first distributers to introduce a full-fledged plumbing showroom in 1997. Overthe years, the company has continued torefine the concept to the point where its latestMondeau showroom in Ottawa represents thestate-of-the-art.
It introduces a number of new concepts,noted vice president and general managerClaude DesRosiers. During the planning stagesDesRosiers and his staff visited 14 establishedshowrooms in Spain, Germany and the U.S.“We came to the conclusion that they werenot user friendly in a certain way.”
As a result, they decided to make the newMondeau showroom “as user friendly as aweb site,” allowing customers to quicklydecide what they want, find it, and leave. Thisincludes separate counters and cash registersfor the showroom. Products are organized bycategory and from least expensive to mostexpensive. All prices are shown “so that theydon’t have to wait for a consultant.”
As well, the showroom is divided intoseparate areas for traditional andcontemporary styles. “When you walk in youare being oriented very quickly to almost serveyourself. It’s really changing what thecustomer sees in the showroom.”
However, the new showroom also includesrooms where designers and contractors canbring their customers. Consultants are onhand for more complex projects.
“We find we need to offer a vast array ofservices and ways of acquiring plumbing. If youjust want a sink and a faucet, it shouldn’t takean hour and a half,” remarked DesRosiers.
New showroom concept
The company recently expanded its Algoma Roadheadquarters and showroom. The sheet metal shop is an integral part
Taco.....................................James Scott
Watts ..........................Trevor Christman
Zurn ...................................... John Reed
P&HVAC 2012 Ciphex WestShow Guide
Draw Winners
Grand prize winner
SteveMulder
Wolseley Canada,Burlington, Ont., has ap-pointed Casian Glavce tothe position of strategic busi-ness manager of the com-pany’s plumbing business.
John Pallante is nowsales director, Ontario and WesternCanada, for Broane-Nutone CanadaInc., Mississauga, Ont.
Goodman Co. Canada hasappointed Andy Cincar to the positionof key accounts manager.
Trane Canada, Toronto, Ont., hasmade a number of appointments:
John Warren was namedservice solutions leader withTrane Atlantic in Halifax.
David Toner has beenappointed new contractingsolutions leader in SaintJohn, N.B. Nik Ljiljanic hasjoined Trane as commercialsales leader based in theToronto office. Joe Carpinohas been named Ontarioparts leader, also in Toronto.Leon Hawkins joins TraneCanada as national automa-
tion and controls business leader.The Canadian Institute of
Plumbing & Heating (CIPH),Toronto, has hired Katie Hutchinsonas manager, councils. She will oversee theCanadian Hydronics Council (CHC)
and the Plumbing Industry AdvisoryCouncil (PIAC).
Many in the industry attended a 65thbirthday and “retirement party” for Rick
Delaney, president, De-laney and Associates,Calgary, at the Pan PacificHotel in Vancouver Nov. 8during the CIPHEX Westtrade show. For competi-tors eyeing his lines, De-
laney advises that his new motto is“Refuse to Quit!”
Rob Hughes has been promoted tothe position of national sales managerfor Dobbin Sales Ltd., Vaughan, Ont.He was previously eastern Canada salesmanager.
Wolseley Canada inBurlington, Ont. hasboosted its online presencewith redesigned show roomand online shoppingwebsites.
The company recentlyannounced a new iPhonemobile application (app) togo with its redesignedWolseley Express e-commerce website (www.wolseley express.com).
The tool allows con -tractors with smart phones tofind their nearest branch,view ordered products, create purchase lists and check availability and pricing. Thecompany expects to keep adding new features as time goes on.
Meanwhile, the company has also launched its new Kitchen and Bath Classics web-site (www.kitchenandbathclassics.com) that has been redesigned to provide more in-spiration and a variety of helpful tools to customers.
It demonstrates a range of decorating styles and various design options frommanufacturers in the Brands We Carry and the Photo Gallery sections. The PlanningTools section includes planning work sheets, helpful articles, suggestions for theshowroom appointment, and links to the company’s monthly newsletter.
Wolseley boosts online presence
The redesigned website compliments Wolseley’sbricks and mortar showrooms, like the Reginalocation pictured here.
PeopleThe
CasianGlavce
Rick Delaney
John Warren
DavidToner
Nik Ljiljanic
JoeCarpino
LeonHawkins
Deschênes Group Inc., Montreal haspurchased Gelair Inc. through itssubsidiary Descair. The sale took placeNov. 1. Gelair will maintain a distinctoperation and will continue to conductbusiness under its current name and alsounder the leadership of Mario Micheli.Gelair has three branches: Laval,Montreal and Longueuil, Quebec.
Judo Water Treatment, Toronto,will relocate its Canadian headquartersto 240 Lesmill Road in that city on Dec.1. Judo has also made a number ofappointments. Jo-Anne Jackson has
been named vice president of marketingand operations. As well, AnthonyGreco and Marco Martins have joinedthe Toronto area sales staff. AndrewMcDonald will represent Judo inWestern Canada.
Taco, Cranston, Rhode Island, hasacquired Hydroflo Pumps of Fairview,Tennessee.
Honeywell, Mississauga, Ont., hasopened a new customer training andsupport centre in Fort McMurray, Alta. Itwill serve as a regional hub forHoneywell’s industrial process andbuilding control customers, providingtraining with the latest automationtechnology.
CompaniesThe
In MemoriamThe industry has lostone of its tireless behind-the-scenes workers. TamiCabana died at age 48after battling cancer forjust over a year. Cabana
was the president’s executive assistant forthe Mechanical Contractors Associationof Canada, headquartered in Ottawa.She was a dedicated employee of the as-sociation for 19 years and worked dili-gently every year to organize the MCACAnnual National Conference. MCACstaff and association members alike willmiss her ready smile and friendly de-meanor. She leaves behind husbandGlenn and children Kerry and Bridget.
A funeral was held at Our Lady ofFatima Roman Catholic Church inOttawa Nov. 3. Memorial donations toElisabeth Bruyere Health CentreFoundation or the Irving GreenbergFamily Cancer Centre would beappreciated.
Tami Cabana
HPG Sales invited contractors, engineers and other industry personnel toan open house at its Mississauga, Ont. location Oct. 25. The company’snew XLF condensing boiler was one of the highlights.
Noble, headquartered in Concord, Ont., has opened a new 120,000 sq. ft.distribution centre in Langley, B.C. The new location features a full-ser-vice counter, indoor pipe yard and training facility. Noble has five otherbranches in the Lower Mainland after acquiring MPH Supply in 2010.
Look around and you will see that the ownersof many HVAC and plumbing businesses aregetting older. It’s the baby boomer syndrome.Over the next 10 years more of these businesses
will change ownership than ever before.Now is the time for people with an entrepreneurial
flair to start hunting for the right HVAC or plumbingbusiness that will be up for sale. There are going to befar more sellers than buyers. That’s basic demographics.
Most of the owners of these businesses have put noreal thought into their exit strategies. They are beginningto think along those lines but most will do very little toincrease the value of their business before selling it. Theyare too involved in the day-to-day operations.
By evaluating the potential of existing businesses thewily buyer will find some choice pickings and have thepotential to make serious money.
The top 25 percent of plumbing and HVACbusinesses in Canada have annual sales of around $3million and, after an owner/manager’s salary of$100,000, make at least $300,000 profit a year. Withcorporate tax rates of less than 14 percent this meansthese companies can have almost $6 million in the bankafter 20 years and they can sell their businesses and geteven more money.
The flip side of this is that 75percent of plumbing and HVACbusinesses are under performing.This is where the gold is for theright buyer. These businesses canbe bought cheap and turnedaround with the rightmanagement and leadership.
Buying a businessThe first place to look for acompany to buy is the companyyou now work for. Determine what the exit strategy ofyour current owner is. The more vague he is the lesslikely he has a plan in place. Check around with otherbusinesses, go to association meetings, and talk tosuppliers. There are lots of opportunities.
There are some key elements you need to focus on.
First of all, identify the type of business that you arelooking for. The market is carved into a variety ofsegments from residential to commercial and from serviceto construction and a variety of plumbing and HVACservices. Where is your passion? Where can you add value?
Analyze the four ways to grow your business using thefollowing elements. How can Iincrease the number of the “A”(best) customers? How can I upsellthem value? How can I get them touse us more often? How can Iimprove efficiency? Spend timemaking this analysis to ensure thatyou are getting into a goodopportunity. Get comfortable withthe business before you buy in.
The second element isunderstanding the price of thebusiness and what cash flow you
would need to manage it. Contracting businesses areselling cheaper now than they were five years ago. Theprice you pay will be a combination of the value of theassets (which is quite straightforward) and the value ofthe goodwill (brand, customers, intellectual property,etc.), which is anything but straightforward.
Avoid overpayingThe seller often has emotional ties to the business thatcause him to demand more for the goodwill than it isworth. You must avoid over paying; otherwise you willfind it difficult to make money. In most cases the totalprice should be recovered in profits in less than fouryears and sometimes as little as two years.
In addition to the cash needed to buy the business, thepurchaser will need working capital. This ranges fromeight to 12 percent of annual sales. When seeking financingthe easiest to get is for the hard assets. The hardest to get isfor the goodwill. Having the vendor carry financing is avery realistic expectation. You also need to determinewhether you are going to buy assets or shares. Review thiswith a professional accountant to really understand it.
Thirdly you need to structure the deal so that you canuse dollars that have attracted the lowest tax rate. If youare earning more than $80,000 a year your marginal taxrate will be somewhere above 30 percent depending onwhich province you live in. However the highestcorporate tax rate (on annual profits under $500,000) isless than 14 percent. Therefore you need to figure outhow to use those dollars rather than your personal ones.
These businessescan be bought cheapand turned around withthe right management and leadership.
Buying aIt’s a buyer’s market outthere as many ownersapproach retirement
By Ron Coleman
North America’s largest HVACR trade show is returningto Texas.
The International Air-Conditioning, Heating,Refrigerating Expo (AHR Expo) will run Jan. 28-30 atthe Dallas Convention Center.
Last held in Dallas in 2007, organizers are expectingover 1,800 industry specific exhibitors from around theworld for 2013. They will showcase hundreds ofinnovative new products to over 30,000 contractors,engineers and other industry personnel.
The show will highlight the drive for greater energyefficiency through greener products and sustainabletechnology. Key product areas will include:■ Air conditioning, heating and refrigeration systems
and components;■ Building automation, controls and facility management;■ Specialized climate control systems;■ Radiant heating and hydronic systems and related
plumbing products;■ Ventilation air movement and indoor air quality
and…■ Labour saving tools, software, business support
services, etc.The 2013 AHR Expo is co-sponsored by ASHRAE
and the Air-Conditioning, Heating and RefrigerationInstitute (AHRI). The Heating, Refrigeration and Air-Conditioning Institute of Canada (HRAI) is anhonorary sponsor. For more information visit theShow’s website at www.ahrexpo.com.
ASHRAE’s Winter Conference will, as usual, be heldconcurrently with the AHR Expo. It takes place Jan. 26-30 at the Sheraton Dallas Hotel. Visitwww.ashrae.org/dallas for more information.
A few recommendationsHere are my recommendations for buying a typicalHVAC contractor in Canada. However, I am stressingthat you need to take your own professional advice.
If you are buying it though a share purchase, it makessense to:1. Form a holding company.2. Loan money to your holding company to buy the
shares of the operating company.3. As the operating company makes money it will pay
less than 14 percent tax on the first $500,000 ofannual profits.
4. Declare dividends on the value of the after-taxprofits to the holding company.
5. If the operating company needs more money, theholding company can loan money back and put asecurity against the operating company as protection.
6. When there is cash in the holding company it canrepay the loans that you made to it tax-free. That wayyou get all your money back, having used dollarstaxed at less than 14 percent.
The holding company holds the shares of theoperating company and because of their relationshipthe after tax profits can be paid to the holdingcompany without attracting any further tax.
If you are buying the company through an assetpurchase, the follow steps will help the business succeed:1. Form an operating company.2. Loan money to the operating company to buy the
assets and to provide working capital. 3. When the operating company makes profit it will pay
less than 14 percent tax and can use the balance ofany spare cash to repay the money you loaned it, tax-free to you.
4. Eventually you will get all your money back, havingused dollars taxed at less than 14 percent.
So, if you would like to own your own plumbing orHVAC business, start doing the research now. Get aprofessional advisor and start planning for your futurewith you at the helm. ✚
Over 1,800 exhibitors will offer the latest green technologies.
Ronald Coleman is a Vancouver-based accountant, management con sultant, author and educator spe cializing in the constructionindustry. He can be reached by e-mailat [email protected].
Initial stepscriticalContinued from page 37
NOV. 28-30: Construct Canada, Metro Toronto Convention Centre, SouthBuilding. Visit www.constructcanada.com orcall (416) 512-0203.
DEC. 3-4: Solar Canada 2012, Canadian Solar Industries Association, MetroToronto Convention Centre. Call 1-866-522-6742 or visit www.cansia.ca.
JAN. 28-30: AHR Expo, Dallas Convention Centre, Dallas, Texas. Visitwww.ahrexpo.com.
MARCH 3-7: Canadian Construction Association 95thAnnual Conference, Fairmont Le Manoir Richelieu, La Malbaie, Que.Visit www.cca-acc.com or call (613) 236-9455.
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