Courtesy Northern Mechancial Services
By Christine Graf
Queensbury-based Northern Mechanical Services has been providing HVAC services to residential and commercial customers throughout Warren, Washington, and Saratoga counties since 1992. The company’s technicians and installers specialize in heating, air conditioning, refrigeration, zoning, plumbing, and indoor air quality design
“We service and install HVAC and plumbing, but we focus more on HVAC,” said company vice president David Crear. “Two-thirds of our business is commercial, and the other third is residential.”
On the commercial side, the company tends to work on smaller projects for a diverse client base. In terms of residential work, they focus primarily on repairs and replacement, with new construction representing a very small percentage of their residential business.
While both commercial and residential business remain strong, Crear reports that residential consumers have reduced spending.
“We have seen a lot of interest in some of the clean heat programs– moving towards dual fuel which could be a heat pump with gas or propane. There’s been a lot of interest in those types of things, but overall, you can tell that people have pulled back from spending.
With a staff of 28 employees, Crear said the company has no plans for expansion
“Here’s the predicament that we all seem to be in–the business is out there that would allow us to grow, however, finding people to do the work has been the main issue
Crear first noticed signs of an impending labor shortage more than five years ago
“You could see it coming between 2016 and 2020, and during the COVID years it seemed to really hit. The best way to explain it is that your experienced techs tend to be in their 50s, and then your next group of employees are in their early to mid-20s,” he said. “For us as well as other companies, it’s about being able to train the next generation of installers and technicians.
According to Crear, the shortage of qualified employees is so critical that some small companies have changed their business plans.
“I have heard that there are some companies who have decided that they are not going the route of trying to train employees. Instead, they will continue working for as long as they can, and when it’s done, it’s done.
While Crear has noticed that more young people are becoming interested in pursuing skilled trades, he said it will take years for the industry to recover.
“We have been pulling from BOCES which is a good program, however even when you get them from BOCES it’s still going to take a few years to get someone in their own van and out working.
While Hudson Valley Community College does have an excellent HVAC training program, most graduates go to work for larger companies located closer to Albany
“It’s difficult for us up here (in Queensbury) because down towards Hudson Valley you have a lot of larger companies,” said Crear.
He predicts that some companies will be forced to reduce their workload as more employees retire.
“You will have to put more time and effort into raising the abilities of your younger techs and installers. For that reason, I think ultimately you would have to shrink in order to be able to handle that.
At the same time, companies will have to continue increasing wages, passing along these costs to the customer.
“The lack of supply of employees has driven wages up. It’s pretty dramatic how much it’s increased in the last two or three years,” he said. “It’s definitely increased rates, but we’ve tried our best to keep rates as low as possible.
With all companies in the industry facing similar struggles, retaining employees is critical. This can be especially challenging for small players in the HVAC industry.
“It’s not just monetary,” said Crear. “You have to make your employees feel they are a part of something. You need to set goals and have a vision of where you want to go as a company. Your employees need to be brought in as a part of that.
For more information visit northernmechservices.com