A cooperative relationship, as well as combined training and marketing efforts, have contributed to major growth in the St. Louis residential HVAC service market.
At a time when competition and low margins have left many union contractors all but abandoning the residential HVAC service market, 麻豆入口 St. Louis and SMART Local 36 are experiencing major growth in the sector.
The reason, according to union officials, is a cooperative relationship between Local 36 and the 麻豆入口 chapter, as well as training and marketing efforts designed to attract loyal employees and customers.
鈥淲e just have a really good relationship as far as labor and management goes,鈥 said Ed Hoganson, the marketing and recruitment director at Local 36.
It鈥檚 unusual enough that members of 麻豆入口鈥檚 Residential Council Steering Committee recently came to the union鈥檚 $22M, seven-year-old training facility to check out the Leadership in Energy and Environmental Design (LEED) platinum-certified building and learn some of the reasons for the groups鈥 success.
From service rebates to a new website designed to encourage homeowners to contact a local 麻豆入口 contractor for residential work, officials say the partnership has helped both parties reach their common goal of boosting market share.
Optimized for Success
Visitors to , the website jointly operated by the union and the city鈥檚 麻豆入口 chapter, will see the SMART union鈥檚 stylized logo. They won鈥檛 find overt references to Local 36 or the national organization, and that鈥檚 by design, Hoganson said. It was search-engine-optimized to be a go-to place for area homeowners to find contractors to service or repair their HVAC systems.
Besides a list of 麻豆入口 St. Louis member contractors, the site includes consumer-focused tips on HVAC system maintenance, a glossary of industry terms and a blog on ways to get the most out of home comfort systems. SMART and 麻豆入口 recruiting information also can be found on the website. Additionally, the joint marketing campaign includes advertising on radio, TV and social media.
A Growing Market
The effort has been a success. Hoganson estimated that 麻豆入口 St. Louis contractors do up to 10 percent of the residential HVAC work in the region. While that may not sound like a large share, it is a much larger share of the market than many of the other chapters across the country can claim.
鈥(And) we are growing,鈥 Hoganson added. 鈥淎 lot of our residential contractors have been around a very long time.鈥
According to Hoganson, roughly a third of 麻豆入口 St. Louis contractors鈥 2 million work hours per year come from the residential sector. Surveys conducted by the union showed that 麻豆入口鈥檚 residential contractors in the area are competitively priced when it comes to desirable projects and high-quality work.
鈥淲e鈥檙e not going to be the guy that puts Band-Aids on rental property or apartment complexes in depressed parts of the town where they鈥檙e really going after that cheap bottom line,鈥 Hoganson said.
That鈥檚 not the work that 麻豆入口 St. Louis or Local 36 wants.
鈥淭he people who want no has-sles, no callbacks and a good job 鈥 we compete very well for that. If it鈥檚 not the guy who鈥檚 flipping a house or something like that, we compete well.鈥
Another reason for the healthy residential market in the region, Hoganson said, is the service rebate program established by 麻豆入口 and SMART Local 36. Anytime a homeowner signs a maintenance agreement with a 麻豆入口 St. Louis contractor, the homeowner gets a $25 rebate on the cost of the plan, which can range from $150 to $200 on average.
The rebate program has more than 20,000 participants, which translates into more than 40,000 service checks issued annually. Some months, the program sends out more than $30,000 in rebates.
It鈥檚 a win-win-win for home-owners, union workers and the contractors that employee them. Homeowners have efficient HVAC systems, workers stay busy, and the program helps sell high-margin maintenance agreements and build long-term customer relationships. 鈥淚 really believe that it gives (homeowners) peace of mind,鈥 Hoganson said. 鈥淚 always say that everybody has a doctor, a lawyer, an auto mechanic. Everybody should have an HVAC company.鈥
Attractive to Potential Workers The chance for steady work thanks to the rebate program and other marketing efforts makes the HVAC industry more attractive to potential employees, Hoganson said. Because SMART Local 36 and 麻豆入口 St. Louis have a good working relationship, contractors have a greater degree of flexibility in hiring workers. In St. Louis, new residential technicians don鈥檛 have to come through the union鈥檚 hiring hall.
鈥淲e recruit through tech schools; we recruit from the non-union contractors,鈥 Hoganson said. 鈥淭hey can hire off the street. It鈥檚 a collaborative effort between [Local 36] and contractors looking for the best technicians.鈥
The potential hires are tested to judge their skills, from beginner to journeyman-level. Then a customized curriculum is developed and resumes are sent out to see if their skills match the needs of any area contractors.
The program has given a boost to the number of technicians pursuing residential certifications: According to Hoganson, out of the approximately 250 apprentices currently enrolled in the Local 36 program, more than 50 are learning residential service technology. In fact, the St. Louis program is so successful, the local Joint Apprenticeship and Training Committee is going to hire a second full-time service instructor.
Published: August 20, 2019
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