I have worked in the plumbing industry
for 40 years. Most of that time has been in construction –
everything from new homes to high-rise commercial buildings. I have
owned my own business, worked as a project manager, a designer, an
estimator, and a general manager. I have started commercial plumbing
divisions, managed large crews of men, and taught classes in plumbing
code.
Recently I took an interesting position
starting a plumbing division for an HVAC and Electrical service
company who wanted to add plumbing services. This article is what I
learned about the growing Home Services Industry.
Many established mechanical contractors
have added plumbing divisions as a way of cutting cost and allowing
them to make combined bids on projects. Some plumbing contractors
have moved into HVAC as well, but that is less common. HVAC is
generally a much larger piece of the pie on a construction project,
and mechanical contractors can often under price plumbing contractors
by offering a combined bid for the Plumbing and HVAC.
Heating and Air Service providers have
caught on to the same idea. They are adding plumbing and electrical
services to their list in order to offer a “Whole Home” approach.
And that brought me to a Heating and Air company who had already
added electrical services and was ready for plumbing.
Every plumbing company offers some
level of service and repair. It is part of servicing warranties and
keeping existing customers happy. Some companies are all service and
do very little, if any, new construction. There are some businesses
who focus mainly on sewer and drain cleaning and only offer limited
services beyond that. Each area – construction, remodeling,
repairs, and drain cleaning – are virtually separate industries
with very different business models.
In the burgeoning Home Services sector
the idea is one company that can provide all of your services – a
licensed and qualified handyman service. If they are already
servicing your Heat and Air why not call them for plumbing and
electrical?
Coming from decades in the construction
industry one of the interesting things I noticed in the service
industry is the emphasis on sales. Service Technicians are expected
to be salesmen. Some and often all of their income is generated
through commissions. If they are dispatched to a home for a toilet
that will not stop running they are far more likely to recommend
replacing the $250 toilet – for a hefty commission – than
replacing the $15 flush valve. So the technician learns to replace
fixtures not repair them.
Wages in the service industry are a
good bit lower than in the construction industry as well, though with
commissions the Service Tech can make a good bit more with far less
experience. The average service tech has only 1-2 years experience
and being a good salesman is more important than being a good
plumber.
Don't get me wrong. I'm not talking
about all service plumbers. There are really good plumbers out there
who dedicate their lives to providing good service. My focus here is
on the trend of big service companies who are offering Whole Home
Services – those who put out slick ads, post billboards, radio and
TV spots. They are hiring young people with a talent for sales and
teaching them to replace fixtures. They are not training the next
generation of plumbers.
These new Whole Home companies are
doing the same thing to small plumbing service companies that the
multi-bid contractors did to small plumbing companies – freezing
them out of the market. The difference is what it does to the
plumbing industry. The multi-bid contractors still needed qualified
plumbers to do the work. The new service conglomerates only need more
salesmen.
Some of these Whole Home companies are
even cross-training their techs so they only need to send one person
out on a call, so it may be an electrician suggesting you replace
that dripping faucet or an HVAC tech recommending a re-pipe to fix
that clogged drain line. I have taught courses at the local community
college, I can teach anyone how to replace a faucet – that doesn't
make them a plumber.
Maybe I'm just getting old, but I
remember when the plumber who came out was a seasoned veteran of the
plumbing industry. He had seen it all and done most of it himself.
It's kinda like the difference between the mechanic who fixes your
car and the salesman who just tries to sell you a new one. Next time
you need a plumber, call a plumber and not a salesman.