“It’s like Disney World for engineers and contractors,” said one visitor on the tour. The Mechanical Hub team made a quick visit to Apple Valley, Minn., to visit Uponor North America as the company celebrated the grand opening of its newly constructed Uponor Experience Center with a “pipe-cutting” ceremony. The team was treated to a Read more
plumbing contractors
“It’s like Disney World for engineers and contractors,” said one visitor on the tour. The Mechanical Hub team made a quick visit to Apple Valley, Minn., to visit Uponor North America as the company celebrated the grand opening of its newly constructed Uponor Experience Center with a “pipe-cutting” ceremony.
Andres Caballero (fifth from left) performs the pipe cutting for the new Uponor Experience Center.
The team was treated to a behind-the-scenes tour of the new 4,500-sq.-ft. customer experience center, which features hands-on displays, full-scale residential and commercial training areas, and cutting-edge innovation showcases, and a place to bring MEP students from the area to get a taste of the trades. The new Uponor Experience Center is a flexible education and discovery space designed to advance the technical skills of current and potential customers. In addition, it will help foster innovation within the plumbing and HVAC industry and provide an immersive experience for employees and visitors alike.
Some displays mimicked true applications.
The new Uponor Experience Center occupies the company’s previous customer training area, which was originally built in 2000 and renovated in 2010. It is at the center of the North American headquarters campus, surrounded by corporate offices, an R&D facility, and manufacturing space.
Andres Caballero thanks his staff for all of the hard work and dedication that went into planning and constructing the experience center.
“The opening of our new Uponor Experience Center signifies the importance we place on keeping the needs of our customers, employees, and key stakeholders top of mind as we continue our mission of becoming the global leader in sustainable water and energy solutions,” says Uponor North America President Andres Caballero. “The ‘X’, as our employees have begun to call it, is a culmination of our rich history and decades of innovation coming together to generate awareness and create enthusiasm for moving water more efficiently, effectively, and sustainably.”
With original concepts beginning back in 2020, the Uponor Experience Center was several years in the making. The thoughtful design, which takes into consideration the company’s rich Finnish roots, resulted from many months of internal team collaboration, as well as feedback from customers, partners, and industry influencers.
Mechanical Hub took the opportunity to record parts of the Appetite for Construction podcast with Des Clancy, director of training, Uponor, and the “architect” for the new center.
As guests move through the front doors toward the back of the space, they first experience displays depicting who Uponor is as a company along with the customers served and the unique value provided to key audiences and the industry.
Experience center visitors will get the full hands-on treatment as seen here with one of its gracious partners Milwaukee Tool and its PEX Expander.
Then, there are product showcases and interactive displays for plumbing, fire safety, radiant heating/cooling, hydronic piping, and pre-insulated piping system solutions for residential and commercial markets. Finally, there is an oversized training area, featuring both wood and steel structures, where professionals will learn proper hands-on installation techniques as well as how Uponor’s emphasis on problem-solving and productivity delivers results for their businesses.
Doug Vetter, center, and Brian Spjut, left, from Vetter Plumbing, came all the way from Seattle to get a first glimpse of the space. (Pictured right is Uponor’s Dan Hubbard.)
“We wanted the Uponor Experience Center to extend beyond simply training customers on our products and systems,” says Vice President of Sales Matt Bahr. “As a result, we’ve created a holistic experience that spans a broad spectrum of who we are as a company, showcasing the depth and breadth of our product portfolio and sustainable solutions as well as providing access to the best trainers in the industry.”
With the focus not only on customers but also employees and those in the community, Director of Training Des Clancy says the planning team was very thoughtful about creating an elevated experience for everyone.
“At any given time, we will have contractors, builders, engineers, owners, students, employees, civic leaders, and other guests coming through the doors,” he says. “From tours and training, to onboarding and education sessions, the Uponor Experience Center offers something for everyone, and we are proud to showcase all we are offering to the industry and our community.”
Mechanical Hub’s John Mesenbrink (l) and Tim Ward (r) complete the “Uponor sandwich” as they also toured Uponor’s Distribution Center in Lakeville, Minn., with tour guide and director of logistics and warehousing, Nate McIntosh.
Over the past few years—wink, wink COVID—the industry has seen a rise in purchasing activity between plumbing and HVAC companies and private equity firms and other outside influences—coming in and gobbling up already successful contracting shops with a message of making them better. Sure, it’s a smart exit strategy as well for those looking to Read more
Over the past few years—wink, wink COVID—the industry has seen a rise in purchasing activity between plumbing and HVAC companies and private equity firms and other outside influences—coming in and gobbling up already successful contracting shops with a message of making them better. Sure, it’s a smart exit strategy as well for those looking to hang up the wrenches.
But why the flurry of activity now? “What we’ve seen from COVID is that the trades are pandemic-proof and to some extent recession proof. When money gets tight, consumers may hold off on that new car, going out to eat, but when that water heater goes out, it’s a necessity,” says Dan Foley, Foley Mechanical, Lorton, Va.
Foley continues, “Artificial Intelligence (AI) will never be able to take over this industry. You will always need someone to walk into someone’s home and make a repair, and that’s not easy to do. It’s the technician’s skill that AI cannot replace.”
According to Mike Prencavage Jr., president/owner, The Family Plumber, Los Alamitos, Calif., president, PHCC ORSB, director, PHCC National Business Development, “Working on margins is crucial for any business to succeed; however, in the plumbing industry most companies aren’t struggling with tight margins to turn a profit.”
As an example, Prencavage Jr. says restaurants and bars can stand to lose greatly if more than two ounces of alcohol is poured into any drink or if larger than accounted for portions of food are served on any plate. These private equity firms have seen that plumbing companies have a greater amount of sold labor income per invoice that can offset losses on jobs allowing for much wider margins to run a profitable business.
“Private equity firms are also looking to the future of renewable energy. With the electrification of the nation soon to be at every state’s doorstep, government grant funding has already become available to plumbing companies who are leading the way by installing energy efficient products. These grant programs. combined with the opportunity to capitalize on wider margins, are creating a buzz of interest from private equity groups to get more involved in the plumbing industry sector,” says Prencavage Jr.
Speaking of grants, on a national level, the Infrastructure Bill and Inflation Reduction Act, are ripe for the taking, if eligible.
On the flipside, private equity firms offer contractors security, not only monetarily, but though the expansion of their reach and service offerings across their respective regions, expand evolving customer bases and refine overall strategic growth initiatives.
Just last month, Grove Mountain Partners—a private equity firm investing in lower, middle market home service companies and specialty business service companies—announced the sale of Unique Indoor Comfort Holdings LLC to Ace Hardware. Nate Kukla, CEO, and the entire management team, including the brand presidents, will continue to lead the company as it embarks on its next growth phase.
Grove Mountain brought together 12 independent service-providing businesses, beginning in June 2021, with the acquisition of three related companies: Moncrief Heating & Air, Unique Indoor Comfort of Philadelphia, and Werley Heating & Air. It added nine other companies in the Eastern region of the U.S., including Clay’s Climate Control, Detmer & Sons, Canella Heating & Air, A-Total Plumbing, All Phase Electrical, Dick Hill & Son, Carolina Custom, Rye Heating and Air, and Jackson Plumbing and Heating & Air.
“We are grateful for our partnership with Grove Mountain and are proud of what we have built and accomplished,” said Nate Kukla, CEO. “Now, we are excited to be part of the Ace team which will allow us to leverage their combined financial and operational capabilities and expertise. Since day one, Unique has been passionately dedicated to an employee-centric, high-integrity, and customer-focused culture. Ace shares in our mission and values and brings a plethora of resources to allow us to continue and grow the business.”
Also, this month, Auctus Capital Partners—a leading financial services and investment banking firm focused exclusively on creating value for the lower middle market, which specialize in merger and acquisition advisory, institutional private placements of debt and equity, financial restructuring, valuation, and strategic consulting—announced its role as exclusive advisor to The Precision Group and its affiliated entities, supporting the environmental and infrastructure services leader in completing a majority recapitalization by PowerVac, a Pillsman Partners LLC and Peninsula Capital Partners, LLC portfolio company.
The Precision Group is comprised of three separate yet complementary companies that serve a diverse array of commercial, industrial, and municipal customers. Founded in 1992, Precision Industrial Maintenance, Inc. provides environmental remediation, industrial cleaning services, hazardous and non-hazardous waste transport and disposal, and other industrial waste services. Martin Environmental Services, Inc. was acquired by Precision Group in 2002, adding new services in asbestos and lead abatement, and disposal services. Precision Trenchless, LLC was formed in 2013 to focus on environmentally-friendly pipe rehabilitation using less disruptive technologies, such as UV-Cured and other Cured-in-Place Pipe Lining (CIPP) methods, potable water line rehab to minimize air, water and soil pollution and support advanced monitoring services.
The group of companies operate as a unified provider of services to several broad regional markets with strong projected growth through 2026 — including the sewer and pipeline rehabilitation market with a compound annual growth rate (CAGR) of 4.6%, as well as trenchless pipe rehabilitation (4.8% CAGR), and liquid waste management (3.7% CAGR).
“Underpinned by significant government support for the repair of aging infrastructure, pipeline rehabilitation and wastewater management services are seeing record investment. In addition, an ever-growing awareness of ESG issues has been driving strong investor demand,” says Muhammed Azfar, CEO and managing partner, Auctus.
More to come on this topic.