Who's Bringing Innovation to the HVAC Industry?

What’s up everyone,

Smaller HVAC companies are nimble. They move fast. They’re looking for every possible advantage.

And that’s why one word—innovation—comes to mind when thinking about them.

Below, I share all my random thoughts on innovation, but before that…

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My Thoughts on Innovation in the HVAC Space

The word innovation means something different to everyone—and that’s okay. As long as you’re thinking about new ways of doing things and new ways of getting ahead, you’re heading in the right direction.

The most recent Owned and Operated podcast gave me a chance to talk about innovation and related themes with my co-host, Jack Carr.

I’m laying out all of my thoughts below (in no particular order). Or, if you’d rather watch/listen, here you go.

Small Businesses Lead Innovation

• Small contractors, like those doing $3M with just 5 people, are seen as the real innovators—lean, fast, and efficient.

• Larger businesses often slow down innovation due to scale and bureaucracy. Smaller companies have all the innovation. Big companies don’t need to innovate anymore.

Innovation Slows as You Grow

• As businesses grow, they enter a phase of “keep the train on the tracks” where experimentation becomes harder.

• Larger businesses struggle to pivot quickly. Even implementing one idea can take 12–18 months.

• You can run faster and turn sharper if you’re small; innovation gets replaced by execution at scale.

The Risk of Not Innovating

• My business has outpaced legacy competitors who failed to keep innovating. They “owned the market” but lost their edge.

• Innovation—or lack of it—can create existential risk for large companies. If you’re not moving forward, someone smaller and faster will.

AI Overload is Real

• There’s growing frustration with the constant flood of SaaS tools and AI solutions. “We’re drowning in all these different bullshit tools.” I hear this often.

• Many tools overpromise and underdeliver—expensive, complex, and ultimately unused.

AI Fatigue, Also Real

• AI specifically is suffering from backlash. The term is losing credibility with contractors.

• We started calling it automation instead of AI. There is just genuine AI fatigue—people are starting to hate it very quickly.

• Layoffs and AI-driven automation are contributing to negative sentiment.

Let Others Prove the Concept First

• Contractors are adopting a “wait and see” approach. Let peers validate the tool before you commit.

• You don’t have to be the first. Just wait till something works and then jump on it.

Peer-Driven Innovation

• Real innovation comes from peer groups, Facebook communities, and masterminds—not from cold sales pitches or vendor demos.

• We get all our good leads on innovation from peers. Not by testing it ourselves.

Don’t Chase Every New Thing

• Contractors are tired of being sold on “magic bullet” software.

• Many tools are overpriced with inflated promises. Some of them are charging ServiceTitan pricing for a basic calculator.

• I often build my own internal tools (like a fleet app) to avoid SaaS fatigue and maintain control.

So, How Do You Innovate Wisely?

To innovate wisely, start by surrounding yourself with peers who are actively testing and validating new tools.

For example, check out my “Breaking $5M” workshop. Join the OAO Facebook Group. Meet up with other operators in your local area.

And no matter what, keep these tips in mind:

• Instead of trying to be the first to adopt every new tool, focus on being right.

• Wait for proven ROI before jumping in.

• Use automation to eliminate repetitive tasks.

• When no cost-effective solution fits your needs, consider building internal tools tailored to your operations.

Is it Time for a Technician Recruiter?

I’m gonna make it simple for you: if you’re at $3M/year and you’re not working with a recruiter, you’re missing the boat.

It’s easy to assume you don’t have the cash and resources for a recruiter. And TBH, that may be true in some circumstances. But not if you turn to Quick Staffers and its recently launched Technician Recruiter.

This new category specific role is laser-focused on sourcing, qualifying, and delivering tech leads for interviews. With it, you can scale quickly, efficiently, and effectively.

Here’s the formula I think about when hiring: quality candidates + speed + hired talent = growth.

I remember my pre-recruiter days. I remember thinking that I couldn’t afford the help. Now, I look back and wonder why I waited so long to take the leap.

You must innovate, but doing so with a plan is critical to your long-term success. Don’t forget it.

👊 John

Disclosure: This newsletter includes sponsored content. However, all opinions expressed are entirely my own.

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