CONTRACTOR Q&A

Vertex Mechanical: reaching for the top

For this month’s Q&A, Phc News spoke with Vince Youndt, Vertex Mechanical Inc., Stevens, Pa.

1. How did you get started in the industry?

Youndt: I had been working with my father, Raymond Youndt, during the summers since I was 11 years old. When I graduated from high school, he offered me a partnership in his business, which I heartily accepted. Our business became Ray Youndt & Son Heating and Air Conditioning. Dad liked keeping the business simple, and had no intention of growing into a larger company. He had no desire to hire additional employees. He wasn’t interested in the headaches and additional stress that company growth would bring. However, there were definite drawbacks to being a two-man operation. One problem was that fact that you had to be constantly present. Vacations were never really vacations, because in an hvac business, someone needs to be on call 24/7. And paychecks came only if you were physically present and working your tail off.

All of this seemed fine with me until I reached the age of 30. I began to think of where I was in life and what my future would hold. I did not want my job to own me; rather, I wanted to own my job. I decided I had an opportunity to take a leap of faith and had time enough to recover from any major blunders I might make along the way. It was time to grow the business. I had been in the hvac field long enough to recognize the flaws in larger companies.

As I analyzed each of these pitfalls and focused on ways to alleviate or fix them, I knew I had a good chance for success in this industry. Late in 2001, I began sharing my ideas with Bob Martin, an electrician working on one of our job sites. Bob was the owner of a very small company and seemed to have the same business philosophies as myself. He had previously worked for some larger companies and acquired an understanding of how these businesses operated. This knowledge would become a great resource for me.

Early in 2002, I came across a building that had great potential for housing a growing business. I brought Bob Martin over to see the building, and it was there that he and I decided to go for it. We bought the building, joined our resources and Vertex Mechanical Inc. was born. We selected the name Vertex because it means “the highest point.” That was our goal and vision — to be one of the best mechanical contractors in our region. We would look toward company growth with the goal of providing impeccable customer service. My father came on board as an integral factor of our company, providing years of expert experience in the field. All the pieces were in place for the foundation of what Vertex is today.

2. Please describe your market.

Youndt: Currently, we are 50% new construction residential, 40% retrofit residential and 10% commercial. We focus on the upper scale residential market, trying to stay away from production oriented construction. Vertex Mechanical specializes in in-floor radiant and geothermal heating. Our clientele is usually very quality conscience. They are looking for a system that will give maximum comfort with affordable cost of operation. Many are looking for a system with all the bells and whistles, but others are seeking a system to meet specific needs and do not want to be over sold. We find it very important to recognize and meet our customers’ specific desires.

3. How can contractors recruit and maintain good employees?

Youndt: In recruiting employees, we begin by looking for individuals with an excellent work ethic and a great personality. Although work experience is a plus, we do not focus solely on this in our recruits. We have found that if the prospect has the work ethic and personality we are seeking, then they will train easily. And training our employees to our specifications ensures the quality of service we want to offer our customers.

The focus on personality also is important to our workplace atmosphere. Word of our quality work environment has spread, as we have found that we attract job applicants that have the work ethic, personality and experience that we seek. I really take pride in each of our employees. They continually give me 100% in effort and quality work performance. I find it imperative to share my vision for Vertex Mechanical with our employees. As they catch this vision, they are able to focus their efforts to help build this company’s future. They know they are integral to our success. This knowledge creates great personal pride in our company and the employees are constantly striving to make us better that we were yesterday. As a business owner, it is important to show respect, dignity and compassion towards my workers. When I model this behavior, my employees follow my lead. All this contributes to a great and productive work environment. Belittlement and harsh criticism is nonproductive and can be destructive. If mistakes are made, and this is rare, the individual answers first to the team, rather than to me, and rarely does the infraction happen again. They are accountable to one another which is, in essence, what makes a good team.

It is also important to provide a clean and orderly work environment. A clean warehouse and well-maintained work vehicles create an atmosphere that fosters productivity and employee satisfaction. When our company prospers, we strive to remember and reward our employees with additional bonuses. Finally, it is essential to pass along the praise, compliments and affirming comments from customers and the community to our employees. Sharing this good word is a great morale booster.

4. What are the major issues facing contractors today? How can they be rectified?

Youndt: Major issues facing contractors today involve acquiring and retaining quality employees and industry-related education. In a growing company, it is important to take time to hire the right individual and to do it before you become to busy to spend the time and effort it takes to interview and research your prospects. If you become desperate to fill a particular position and make a rash hiring decision, this can affect the future of your company. It only takes one bad employee to break up an effective team. Well-chosen, quality employees make my job as a business owner so much easier.

Staying educated is also more important than ever. With the myriad of changes during the past few years on items such as 410a, codes, energy issues and numerous other items, it is essential for contractors to stay on the cutting edge of industry advances and trends. It is time well invested to sit in an eight hour class with code officials instructing on code changes. This will save you invaluable time and money when these changes go into effect. New product education is also vital. Before you begin to install a product in countless jobs, you want to be assured that you do not discover that there is an inherent problem or quality issue with that product.

5. Does Vertex Mechanical affiliate itself with any associations? If so, which ones and why?

Youndt: We are affiliated with ashrae, acca, nate, rpa (Radiant Panel Association), phrc (Pennsylvania Housing Research Center), bia (Building Industry Association), pba (Pennsylvania Builders Association), and lcca (Lancaster County Code Association). Again, it’s all about staying educated. Also, customers appreciate seeing certifications such as nate, which add to company credibility.

6. What are some trends/changes you see or have seen in the industry? What is the overall effect of these changes on your business?

Youndt: All the recent changes in the hvac industry have seemed to make it harder for new contractors to get started on their own. As a result, with fewer one-man operations working out of the back of one van, it does allow prices to come up to where the larger growing companies can afford more customer service. Today’s customers have become more challenging. Many have maxed themselves financially in high mortgages and carry the assumption that because of their financial stress, there should be no problems with their home operating systems. As contractors, we need to provide the best possible customer support team and service so as to keep the customers’ stress level down. Today’s customer is very savvy, often using tools such as the Internet to educate themselves on the products and services they are seeking. They will come to you with a definite idea of what they want and you need to be likewise educated so you are able to advise them correctly. Code updates seem to be the hardest issue to keep up with because each inspector interprets codes differently. We have been lobbying to allow contractors to choose their own inspectors instead of allowing our local townships to choose for us. But for now, we will just keep doing it their way.

7. Do you participate in “green” building?

Youndt: We are very dedicated to reducing the amount of energy use in homes. We do load calculations on all of our homes and never oversize. This is the easiest way to save on energy. We also have a huge emphasis on geothermal technology, which is an affordable system for optimal energy efficiency.

8. How does 2007 and the future look for your company?

Youndt: 2007 is off to a great start. Our company has doubled in sales every year and we have maintained a very high net worth. If we continue at the current pace, we will see another 60% increase again this year. My initial vision for the company seems to finally be falling into place. Back in 2005, Vertex took first place in a national competition for in-floor radiant design and implementation. This has provided a huge boost in customer confidence, especially for those investing in large scale, elaborate systems. We have definitely used this award to springboard us into recognition as a company that carries the highest expectation in quality.

9. Does Vertex abide by any self-imposed business standards or mission statement to help the company succeed?

Youndt: Our highest goal is to provide customer service that is personal, caring and complete. We listen to our customer’s needs and strive to find the best solution possible to meet those needs. We are committed to our customer’s comfort and satisfaction. Our employees know how important our customers are to their future and take the extra effort to listen to and exceed the customer’s expectations. As a business owner, I also strive to meet and exceed the expectation of my employees. This is a crucial investment that contributes to the success of Vertex Mechanical at large. Vertex is striving for one thing: to be the best it can be in everything it does. There is no substitute for honesty, reliability and commitment.                    

Vince Youndt is preparing to install a grinder pump into a home’s septic system.