the title says enough. just wait till December till it all comes about in the open. " I know the chiller says YORK on it, but i'll be gosh darned if i cant find them anywhere" the info going around says that JCI will help in the design of HVAC and Chiller design, the part i dont understand, and intergrate their controls into the YORK line. I think it would be best if the just buy it and leave it alone, York has been doing something right to be the oldest a/c related co in the world.
Yep and to think they started out making automatic washing machines .
There has been many many questions, thoughts and predictions lately on here about where the trade is heading. I think this is a great example. Speaking from a heavy commercial perspective. JCI buying York is a bold move and one that will be duplicated by other major players in the industry. This is my opinion. You look at Hussman. Buying Refrigeration Contractors across the country. They are owned by Ingersol Rand. Under the Hussman name which has been a grocery store fixture manufacturer for many years, most customers immediately identify with it. Additionally. The company ho manufactures, now services in and out of warranty. Therr techs have access to everything. Makes them a hearty competitor.
Same companuy has deep pockets, and has the fortitude to stay in the game until it is profitable. BTW, the Hussman contracting Arm of Ingersol Rand just turned their first profit, 2 years ahead of time. If you really examine any larger heavy comercial service company, the one thing is having a lot of capital. This is a costly business. And to succeed you need a lot of money. To make money. These companies have that captial that an indepemndant does not have.
It will be an OEM dominated world in the service business. I have said it before. You watch. I am willing to bet, copeland, for example is watching these manufacturers, and witnessing their success and waiting for the right time to jump in.
I think JCI can only enhance York. How could it hurt it. York is a solid product with teeth dug into a good market, and so is JCI. They both got teeth, stamina. It's a great match. And you will see more of this from others.
Copeland is owned by emerson motors and emerson is owned by UTC .
You see. And how long before copeland enters refrigeration contracting?
I am convinced myself, that OEM service is going to be the rage. No one could convince me otherwise.
Let's take a look at a completely different industry.
Bubble. Here in Detroit. Northwest has it's major hub and the mechanics are out on strike. Don't ask me the issues cause I aint sure. But, 5000 mechanics and cleaners walked out and were really confident they would drop Northwest to their knees inside a week. Walstreet didn't. Now. Why?
The plane manufacturers, the engine manufacturers, software guys, electronics. They knew this was coming a few years ago and started their own service departments on a full scale. Actually, all smaller airlines use the service.
Northwest, along with other major airlines have been going back to the OEM and seeing the intrinsic value of the company that makes it, services it. The manufacturers were building up their ability to service this stuff as the strike loomed. Okay but how the hell can you replace 5000 people. Well, if you know that engine or radio, if your set up with repair parts already, if your just the no brainer to fix it, that makes you much muh much more efficient, it gives you an edge that a independant just don't have.
In the wake of the initial walk out and now as they go forward, Northwest is like, damn we should have done this years ago, the manufacturers go, damn this is awesome, we just increased our market share and gained an income stream we have never had.
It is absolutely what your going to see. I will bet my bottom dollar on it. You will see this in our industry in huge ways.
The benefit to you is, they will always need the best of the best guys working for them. You can't manufacture skill set. And you can't pay talent poor wages. I see he technicians of our industry, coming out of this with better bennies, good solid ages, and a much more proffesional image and career than exists today. Contractors, like myself will lose our small shops, and melt away into the industry doing other things to support oems.
did you know
that JCI makes 79% of its income from making car interiors?
Yes I did , ther shop is a half hour from me, they make seats or seat belts or something to do with seats.
Just to clarify, Copeland is owned by Emerson Electric. Neither Copeland or Emerson is owned by UTC.