Being Creative in a New and Challenging Sheet Metal Fabrication Environment

The shop has been busy the last few months and that has left little time for updating the blog and twitter on a regular basis. I figured I would update what's been going on in this micro world of business that we play around in daily. The overall business environment for us has improved since this time last year and I would expect that to continue into 2012. However, the environment that is improving is also changing, for the better and I hope this can continue into the future for us as a business.

Gone are the days of knowing a house foundation will be poured and ready in the month of May, the job scheduled for sometime there after and solid work locked in for a few months. That has changed to a more streamlined, get in, get out mentality for our tiny little company. One that has helped us change small things and set proper boundaries that may not have existed in the past.

We have done better this year as a sub-contractor rather than the company going out and landing the new house being built around the corner. We have gotten the word out to small plumbers and builders that we are a niche fabrication company that can come in, measure, fabricate and install a small residential change-out quickly and for a quality fee. This benefits us and them, along with keeping cost down for both and upping the potential job flow. We are finishing more jobs for a reasonable fee rather than a few home runs throughout the year.

Some are reluctant to give us a try and others seem to like the fact that they can let us do our job while they are setting up another job somewhere else. The new agreements, as stated earlier, have kept our cost down and our business up while being on each job for a shorter amount of time. We hope that this can continue into 2012 and maybe be our main focus through the next few years as our more niche clientele grows.

Most of our business to business customers are finicky and getting them on board with a new idea can be challenging. They want to keep as much in house as anyone else might, but the positives seem to be outweighing the negatives. We are finding that in the slower and pickier environment we find ourselves in these days, finding new and easier ways to do business are becoming the norm.

Creativity is key going forward...

Will The Co-Creator of The iPod's New Company Change The HVAC Thermostat Market?

There was a time when everyone saw the Apple iPod and thought to themselves: "What is that white thing with a single button and why is it called iPod? What is i pod? What a stupid name."

"I will never buy one of those, it's too expensive. Nobody will ever buy one of those. What does it do anyway?"

I may be way off, but I know I felt that way until I actually had an iPod in my hand and saw how fantastic and simple it was to use. Now, between that and the iPhone, I don't use anything else when listening to music.

So, will thermostats be the new iPod and change the HVAC industry?

I must admit I have never seen or used the new thermostat from Nest, a company founded by former Apple i-Pod co-creator, Tony Fadell. However, if this thermostat works like other Apple products, then anyone who is an Apple user knows this is probably a home run.

The simplicity and elegance of the case grabs you immediately when you look at the video and photos from Nest's website. Check out more HERE.

The issue for consumers with this new breed of thermostat is the price, coming in at $249. However, when compared to the more expensive and intuitive thermostats at Home Depot or Lowes and if the Nest performs like it says, then it's actually a reasonable cost. Splatf has a great post on the Nest, showing some of these comparisons. Check it out HERE.

Our company installs full duct systems for forced air heating and cooling applications. We have installed many thermostats, a good number of them are very high quality, look nice and are intuitive. However, not all of them are very easy to use and many of the calls we get from customers are in regards to the thermostat. Many have extensive instruction books and complicated ways to reset or fix minor problems, usually ending in the purchase of a new thermostat.

The Nest looks simple and easy to use in pictures and company write-ups, but can it deliver in the real world. That will be the test. But if it can be to HVAC what the iPod was to music, I think they may change the way HVAC and consumers look at thermostats in the future.

For more detail, check out these other sources:

Brave New Thermostat: How the iPod’s Creator Is Making Home Heating Sexy ( Wired.com )

Tony Fadell Demos His New Nest Learning Thermostat ( TechCrunchTV )

Moneyball and How It Can Help Change Our Micro Business

This past weekend I treated myself to the picture show and checked out the new movie Moneyball. If you haven't heard of or seen the movie, below is the synopsis from Rotten Tomatoes: Based on a true story, Moneyball is a movie for anybody who has ever dreamed of taking on the system. Brad Pitt stars as Billy Beane, the general manager of the Oakland A's and the guy who assembles the team, who has an epiphany: all of baseball's conventional wisdom is wrong. Forced to reinvent his team on a tight budget, Beane will have to outsmart the richer clubs.....more

and the trailer:

A specific scene of the movie peaked my interest and made me think about what goes on in my company and the local HVAC industry as a whole. In the scene, Billy Beane is having a meeting with his teams head scouts and they are going over new players to possibly add to the roster. As each scout gives his typical and cliched notes on each player, Beane looks around and realizes that everything is the same, nothing has changed and in order to progress and move forward, things need to go a different way so the team can replace talent, have a successful season and achieve their goals on a very limited budget.

Sometimes in any industry or life, change is the hardest thing an individual or group can do, especially when money is tight. It's scary to venture outside your comfort zone and go against the grain of your normal life or business pattern to achieve something great.

This struck a chord because I have realized that in order for my company to succeed there have to be changes made. The company has run the same way for 20 years and we sometimes seem to be standing still. Not only that, since the economic downturn, it feels like we've gone backwards and are struggling to just get our legs back underneath us.

My main point is that in order for us to move forward and grow the company, we must embrace new technology and new ways of performing our day to day business. Whether it be social networking or easier ways of accepting payment, things need to evolve and move forward in order to avoid stagnation. This will, in turn, breed the success I would like to see for the company in the future.

Making changes can be hard and the old guard will always fight back and disagree with major changes. This is usually why no one takes chances and risk what has already been gained, because they may feel there is too much to lose. However, when things are just status quot and you feel like your standing still or in slow motion, something needs to happen. I am quickly learning that means things need to change. At least, that's how I see it for my company and what may be ahead of us.

The big question, for us, will be what is our best strategy being that we are such a tiny micro business. Resources are limited and so is time because of the responsibility load on both my father and I. There will obviously be many other questions that will have to be answered and that is part of running any business with any budget. I am convinced, like Billy Beane was that season, that there needs to be more out of the box questions asked and answered for this company to succeed in the future.

Go to Amazon and get your copy of the fantastic book Moneyball by Michael Lewis HERE and for your Kindle HERE

Weekend Links: Social Media, Google Plus, Mobile HVAC Office

Some light reading from the week. Have a great weekend...

Social media, multi-tasking & ending billable hours (Gigaom)

Mobile Office Changes How HVAC Business Is Done (Achrnews.com)

9 Reasons Why Your Content Is Not Shared on Social Networks (Social Media Examiner)

How a Google Plus1 Button Can Help Power Your Blog (chrisbrogan.com)

Why You Should Listen to Warren, Not Buffett (thestreet.com)

Why Google+ Will Be the Next Big Thing for Your Business (entrepreneur.com)

Improving The Efficiency & Life of Your Forced Air Heating & Cooling System

Many homes in the United States with forced air heating and cooling have duct work that is old and in need of repair or replacement. Most of these homes have had new furnaces installed over the years, but not the duct work, which would improve the efficiency of new units and keep them running longer. Many houses have duct work that is either too small or too big, installed improperly or not to code and is eating into the efficiency of those new furnace and air conditioning systems.

Here are a few issues we have run into over the years when it comes to forced air heating and cooling systems. These are common installer mistakes or problems in regards to the duct work for heating and air conditioning systems in your home.

Heating and cooling runs off the end cap

When you go into your basement and look at the main trunk line of your duct system, are there heat runs coming off the end caps of your main trunk? If so, this is something that should be checked and more than likely changed.

When your trunk line is not properly capped off, you lose the necessary pressure to send the air flow throughout the rest of the home. If you have lower flows of air in certain rooms of your house, especially upstairs, this could be the reason for those issues. It is a common problem and can be changed by a duct professional who specializes in duct work and sizing your systems. Many times you don't need to replace the whole system because those few runs off the ends of the duct could be re-routed and the main duct capped off at a reduced cost.

Your forced air heat runs may be too small

Over the years the furnace has gone through many changes and so have the methods in which duct work has been installed. Most furnace installations require at least 6" round pipe runs off your main trunk and sometimes larger depending on the furnace unit and size of the home. However, some homes built in the1950's and 1960's were fitted with smaller systems and 4" or 5" heat runs. These runs coupled with today's furnace can present problems with efficiency and life of your new HVAC units.

Increasing those runs to a proper 6" run and checking to make sure your duct is sized properly can help to improve your furnace efficiency and life span. If you are in the process of getting a new heating unit you may want to get a quote for proper sizing and installation of new duct work.

Is the duct system undersized?

Going along with the above tip, some main duct systems are undersized from the start and should be completely replaced to help with efficiency of the furnace. These  systems were either not installed by a professional or the new unit was retrofitted to an already existing duct system that was rated for the previous furnace. The new furnace may either be too big or too small for the existing duct work and because of this, certain rooms in the house my be neglected of proper air flow. This means that you may notice a room is too cool in the winter or too warm in the summer or possibly multiple rooms end up having these same problems. It may be that your duct system needs to be re sized to the new heating or cooling unit you now have installed. Newer units are made to run very efficiently, but an undersized full ducting system can harm the life of your newly installed,  efficient and money saving furnace.

Conclusion

These are a few of the common problems we find when replacing furnaces  in older homes. We will often make note and offer a free quote to the customer for minor changes or complete replacement of their duct system.

Having a brand new efficient, cost cutting forced air heating and cooling unit installed is great for your new or existing home. Recognizing and making sure that your duct system is sized and installed properly can guarantee that your investment will run great for it's lifetime.

For a few examples of our installations click here

Need Sheet Metal Tools? Check Out This Blog Post About Our Store

K & E Sheet Metal is a local micro business through and through. All of our customers are local and have been doing business here for years, needing custom sheet metal work for residential applications. However, with social networking, the ease and low cost of the internet trying to branch out and find other business is enticing. That is why a few months ago we became Amazon Associates and opened an astore to sell tools and items pertaining to our line of work. We receive a small commission on the sales that originate from our page and the links we send out on social networking sites.This is something we wanted to do locally, but the upfront cost and space needed for a bricks and mortar store like this would be too much for us to take on.

The setup and function of the store is easy and we can add links to our websites and send deals or good products we have used out on twitter. In reality, this is a small step in trying to branch out, but sometimes just giving it a try is half the battle. We hope to learn if this is something that is even worth our time or if we should just stick to what works.

If you are in HVAC industry or just a small outfit that needs sheet metal hand tools or products, check out the store! Also, if there are any products you think we should add and promote, let us know in the comments section. All comments are welcome. Click on the screenshot below to see the store.

Visit our main website at www.kesheetmetal.com

The Reality Is We Are a MICRO Sheet Metal Shop/Business

I stumbled on this video today and it reinforced the fact that we are a MICRO shop. The amount of duct that some companies can produce in such a short time is mind boggling. A straight section of trunk duct form beginning to end takes me roughly 8 to 10 minutes. I have heard that companies, like the one in the video, can produce that same section in under 10 seconds. It has become tougher and tougher to keep a shop like ours going because of this gap in production time and more importantly cost of production. Another problem is, most of the work available is commercial in nature and far too involved for a company like mine. Therefore, we are left to pick up the scraps of much smaller commercial work and of course, residential (our bread and butter). But residential and home owner projects seem to be fading more and more even though the housing market has "bottomed". 

Walking this line of keeping the shop smaller in size or taking out loans and making it bigger is a scary proposition. The lack of motivated workers and young people in the field is also something that can be worrisome. Shops like ours will always be needed, but if work can't at least sustain the owner and his family, then smaller shops will continue to fall and go out of business.