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Collaboration and Innovation to Meet Industry Needs

Recently, Kristie Upton, Senior Marketing Manager at Trane, sat down with Robert Beck, president of the Mechanical Contractors Association of America (MCAA) and CEO of John W. Danforth Company, and Trane Vice President and North America Commercial Business Leader Terry Dugan to discuss the flourishing innovation in the HVAC industry and the deep collaborations between manufacturers and contractors to meet the country’s net-zero goals.

In 2021, Robert Beck  CEO of John W. Danforth Company and president of the Mechanical Contractors Association (MCAA) interviewed Terry Dugan, Trane’s Vice President and North America Commercial Business Leader, for MCAA’s Sponsor Spotlight podcast. This year, Kristie Upton set up a reunion, chatting with Beck and Dugan about the current industry environment and how Danforth, MCAA and Trane collaborate to enhance it.

Robert, tell us a little bit about Danforth.

We were founded in 1884 by John W. Danforth and his son, Loring Danforth, took over a few years later. I’m Danforth’s eighth CEO in 140 years in addition, when I took over as MCAA’s president, I looked through some of the archives, and I found that I was the second president from Danforth. Loring Danforth was MCAA president in 1921.

We’ve been a mechanical company from day one, and that commitment really spurred our growth over the years. We are now in Buffalo, Rochester, Syracuse and Albany, New York and Columbus, Ohio, making us the fourth largest mechanical contractor in the Northeast.

One of our core values is community engagement, giving back to the communities where we work, live, and play. Our employees get involved. We really strive to be part of those communities.

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What is MCAA’s mission?

Robert: MCAA’s mission is to be a partner for all its’ members. We want to provide resources for any facet of their business to help them get better as a company, reduce risk, and improve profitability. If companies have a need or an interest, they can come to us and find the information they need to put together a solid plan.

We put that mission into action in many ways:

  • MCAA hosts multiple events at a national and local level to facilitate opportunities for members to exchange ideas and build relationships.
  • The organization reserves two national board seats for manufacturers and suppliers to offer different perspectives.
  • The group also provides an extensive resource library to help members solve problems without reinventing the wheel.

How does Trane engage and support with MCAA?

Terry: Trane has been part of MCAA for over 30 years, and we collaborate with them on training and other programs. I think these efforts contribute to knowledge and professionalism and help increase the industry’s overall productivity. For us at Trane, collaborating with our contractors is essential.

Robert: We have a great history with Trane. They have quality products and quality people, so it's been a long and successful relationship for us.

What do you both see coming for the HVAC industry in 2024 and beyond?

Robert: The HVAC industry is experiencing accelerated growth right now, as government and other funding sources are driving big projects nationwide.

Terry: I think the tailwinds for our industry are incredibly strong and resources from the ESSER funds (providing pandemic relief for K-12 schools) and the Inflation Reduction Act (IRA) are going to put it on steroids. The incentives and credits for thermal storage alone are up to 40%. That's just amazing.

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Trane has been using heat pumps to create hot water for some time and our full chiller portfolio will soon be available as heat pumps. Now, Trane chillers and thermal storage units will be used as heaters. Trane’s mission is to collaborate with our customers to help them reduce the carbon emissions from their building and operations by over a gigaton by the year 2030.

Robert: I believe our industry is going to change more in the next five years than it did in the previous 50.

As the industry ramps up, recruitment has become a major hurdle. How can manufacturers and contractors work together to solve the talent crunch?

Robert: It’s our number one challenge right now; It’s really a competitive marketplace. We've had great success growing our talent through robust internship programs and things like that.

Terry: I recently met up with 92 college students who had been hired as summer interns. I was jazzed because of how energetic they were…how thoughtful and creative. They didn't know what they didn't know; they were just jumping in with questions and very excited about it.

The country needs to do a better job showing young adults the full range of career options. Many high school students are only encouraged to go to college and may not even be aware they have great opportunities in the trades.

Robert: I’d like to make high school counselors more aware of all the great opportunities with technology, with different career paths for people who want to pursue work in the trades. There’s a lot of bright young people who don't want to go to college, and I’d like them to understand there's another great career path for them.

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As part of our community outreach, Danforth has joined the Heavy Metal Summer Experience (HMSE), a six-week training program that exposes high school students to the trades. HMSE offers new opportunities for these kids, but it’s also been a great boost for my people.

After the program was over, our Vice President of Shop Operations, Mike Bement came up and thanked me for HMSE. He said: “I didn't want to do this, but man, am I so glad we did.” I know our people got as much or more out of it as the students. Just a great, great experience for everybody involved. Terry: Collaborations between manufacturers, contractors, professional organizations, and many others hold the key to solving both present and future challenges.

Robert: I think about how we as an industry continue to reinvent, how we bring value to the ever-changing construction environment. If we can continue to embrace our partnerships with great manufacturing companies, like Trane and others, and take advantage of all the really smart people and great resources that are available to us, we’ll be able to accomplish all our goals.

To read more about programs Trane is supporting in the HVAC industry, visit some of these stories: