ZEN Industries'
July 2011 e-Newsletter

Complementary Information:

Inefficiencies of "In-House" Production
by HVAC Contractors

Traditionally, HVAC Contractors not only installed ductwork, but each company maintained its own in house fabrication facility.  The logic was simple: direct control of production, assurance of quality, reliable and timely delivery.  Who could argue with all that?

But in recent years, the flaws in this traditional logic have become more apparent.  At ZEN Industries, we've seen the struggles of HVAC contractors as they strive to justify continued in house production.  But the problems are mounting.

  • Skilled, qualified labor is becoming increasingly more difficult to find.
  • Lack of purchasing power in materials procurement means higher cost.
  • Maintaining equipment and inventory requires its own infrastructure.
  • As the economy dips, keeping individual in-house shops busy is a challenge. 
    • Some contractors have marketed their shops for outsourced projects, only to find other contractors prefer purchasing products from a supplier, not the competition!
  • Contractors realize their core competency is installation, not manufacturing.
    • In-house manufacturing becomes an inefficient profit sink, a maze of materials procurement problems, labor problems, inventory problems, and project management problems.

Dedicated HVAC Fabrication Facilities
Win the Day

 It only makes sense that a facility devoted to HVAC ductwork production, supplying a nationwide clientele, would have the best production people, the most experienced estimators, the lowest cost in materials procurement, the most efficient systems for inventory handling, etc.  After all, estimation, production, and delivery would be their core competencies - the things they do best.

The key barriers to HVAC Contractors divesting themselves of the in house production albatross are trust and reliability.  In the past, no doubt, contractors have been burned by unreliable 3rd party distributors.

Today, it is possible to build a solid hand-in-glove relationship, directly with your HVAC fabrication facility.  At ZEN Industries, we believe we've developed one of the best programs for this type of relationship.

Working with each contractor, we streamline estimating using the most recent technical advancements, collaborate on ductwork design for greater performance and installation efficiency, and review project obstacles up-front in an effort to reduce labor and material waste.

While finding the best cost has always been important, working with ZEN Industries brings a new dimension of value added services, including insights that offer each of our customers a competitive advantage.

As the science of HVAC production continues to advance, it will become less and less viable for HVAC contractors to maintain inefficient, small production shops.  Economies of scale and concentrations of talent and expertise will continue to favor dedicated fabrication facilities like ZEN Industries.

To learn more, including how your company can develop a working partnership with ZEN Industries that takes advantage of our new streamlined automated bidding process, please contact ZEN’s VP of Sales & Estimating, Drew McCaffrey, at 877-600-0274, or via email to Drew.McCaffrey@ZENIndustries.com

Previous Newsletter Articles of Interest

Automating HVAC Production Requests.  Modern industry hates waste.  At ZEN Industries, Inc. after virtually eliminating waste in material production, we looked for ways to increase efficiency even after achieving perfection on the shop floor.  

The 10 Industries that lost the most jobs in 2010.  Read Mike Riley's account of the industries that lost and gained in 2010.  Mike is the editor of Fabricating & Metalworking Magazine.

Painting Over Hot-Dip Galvanized Steel.  Painting over Galvannealed HVAC ductwork presents its own unique challenges.  Learn the tricks of the trade that can help provide a lasting, professional job.

To learn more about working with ZEN Industries

Call us today at 1-877-600-0274 and we'll be glad to answer any of your questions about how ZEN can make your HVAC project more time and budget effective.

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