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Thread: Daikin DAS exits the Cincinnati and Columbus markets

  1. #1
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    Daikin DAS exits the Cincinnati and Columbus markets

    Daikin Applied Service (DAS) has exited the Cincinnati and Columbus markets. DAS has handed over the Authorized Service to its Manufacturers Rep who is now the Service Alliance Partner. What do you guys think? It was previously said that McQuay was once 2 or 3 Techs in all of Ohio and then they grew. DAS gave up Cleveland and Northern OH a few years ago and now gives up the rest of OH. What is the endgame?


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    I don’t think daikin wants technicians anymore, they just want factory authorized company’s. I know here in Southern California daikin purchased 50 or 51% of Norman S. Wright Climatec and all the daikin guys went on over.


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    Quote Originally Posted by Chillertech4 View Post
    I don’t think daikin wants technicians anymore, they just want factory authorized company’s. I know here in Southern California daikin purchased 50 or 51% of Norman S. Wright Climatec and all the daikin guys went on over.


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    That’s what it seems like. The opposite of what Trane’s doing - for the most part.
    In some cases, whole states were pulled the plug on.

    Recent Daikin DAS exits:
    Cincinnati, Columbus, St. Louis, Kansas City, Jacksonville, Staten Island, New Jersey, Chicago, San Diego, Los Angeles, Oklahoma, Arkansas, Cleveland, Wisconsin, Shreveport, Hawaii

    This doesN’T include the longtime SAP markets like Sacramento, Philadelphia, Utah, and Montana.
    What do you think is the motive?


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    Marketing & sales driving to existing reps with large market shares. A number of the new reps were with Trane and had established service departments.
    Faster way to increase market shares.

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    Quote Originally Posted by ehsx View Post
    Marketing & sales driving to existing reps with large market shares. A number of the new reps were with Trane and had established service departments.
    Faster way to increase market shares.
    El Paso was supported by Albuquerque and Tucson, in the McQuayService days. It wasN’T until Daikin-McQuay pulled the trigger on a remote Tech (reported to a Mgr in ABQ who in turn reported to PHX). In either of those times nobody remembers who the Manufacturer’s Rep was. That’s how bad it was. Daikin-McQuay grew to 2 Techs and ended up shutting down completely. Varitec (the same Varitec that split from Climatec, the same Climatec which partnered w/ NS Wright in LA and SD and is now unrelated to NSW and Climatec) was given the Rep line and 3 or 4 guys from the Carrier Manufacturer’s Rep end up leaving to the new Rep. To this day, the now-known-as Daikin Applied Service will NOT commit to ELP. And DAS has NOT officially given Varitec the Service Alliance Partner title. Confused yet?!


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    My thoughts on it are this; a bunch of my buddies worked/ work at daikin (NSWC).
    They were all applied guys, I think they are merging to expand there market space. If they can inherent or hire unitary and applied guys they can try and take over the market place. If mergers happen where daikin is union do they merge with union shops or non- union? That’s my concern.


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    Quote Originally Posted by Chillertech4 View Post
    My thoughts on it are this; a bunch of my buddies worked/ work at daikin (NSWC).
    They were all applied guys, I think they are merging to expand there market space. If they can inherent or hire unitary and applied guys they can try and take over the market place. If mergers happen where daikin is union do they merge with union shops or non- union? That’s my concern.


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    I would say that if the SAP is a Rep like NSWC is - then the Techs are expected to work on the whole line card. Is this correct?
    The Union thing is weirder tho. DAS Chicago was always non-union, when Chicago went SAP, the new SAP was Unionized quickly. KC was non-union and STL was Union, they went SAP, and it stayed the same.
    A loss for the Union was Cleveland (Northern OH). DAS was Union, and then the SAP was given to the former Trane Franchise who is, still to this day, non-Union. This one is a big ouch, as the SAP is 80 to 90 Techs strong.
    I believe NSWC is still non-union. Is this right?


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    Quote Originally Posted by AdrianOmarPerez View Post
    I would say that if the SAP is a Rep like NSWC is - then the Techs are expected to work on the whole line card. Is this correct?
    The Union thing is weirder tho. DAS Chicago was always non-union, when Chicago went SAP, the new SAP was Unionized quickly. KC was non-union and STL was Union, they went SAP, and it stayed the same.
    A loss for the Union was Cleveland (Northern OH). DAS was Union, and then the SAP was given to the former Trane Franchise who is, still to this day, non-Union. This one is a big ouch, as the SAP is 80 to 90 Techs strong.
    I believe NSWC is still non-union. Is this right?


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    NSWC is non-union, don't think they will ever join. As far as techs working on all pieces of equipment, no. Any big company in Southern California has groups dedicated to different types of equipment, NSWC is no different.

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    Quote Originally Posted by Chillertech4 View Post
    NSWC is non-union, don't think they will ever join. As far as techs working on all pieces of equipment, no. Any big company in Southern California has groups dedicated to different types of equipment, NSWC is no different.
    Ever say never, after decades Chicago Trane finally became Union.
    I meant NSWC’s specific line card such as Danfoss, Nortek, and Greenheck, who are all unrelated to Daikin, but NSWC Reps them too. NSWC also Reps Daikin VRV which is NOT a Daikin Applied product. Do the NSWC Techs work on all said products and equipment? Now if NSWC has a Chiller team and they only work on Daikin chillers - that makes sense.


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    I see it as a top of the balance sheet, cost cut. Daikin is beating everyone in the marketplace on equipment pricing structure for the Large Commercial and Applied products. How do you get there? Overhead or Quality. My $0.02 worth, they had to choose Overhead because their R&D and Quality were already at the bottom.

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    Quote Originally Posted by JCN View Post
    I see it as a top of the balance sheet, cost cut. Daikin is beating everyone in the marketplace on equipment pricing structure for the Large Commercial and Applied products. How do you get there? Overhead or Quality. My $0.02 worth, they had to choose Overhead because their R&D and Quality were already at the bottom.
    In my opinion they sell chillers cheaper and kill you on parts cost


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    Quote Originally Posted by Chillertech4 View Post
    In my opinion they sell chillers cheaper and kill you on parts cost


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    Agreed. Their parts pricing matrix is obsurd.

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    that is exactly what they do.

    also, Listen to ESHX, he KNOWS what he's talking about......

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    There’s been of them leaving South Florida also. What do you guys think?


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    Daikin DAS exits the Cincinnati and Columbus markets

    Quote Originally Posted by AdrianOmarPerez View Post
    There’s been talk of them leaving South Florida also. What do you guys think?


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    There’s been talk of them leaving South Florida also. What do you guys think?


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