Welcome To
JWC Services Group
This executive summary outlines our strategic approach to acquiring successful HVAC companies, focusing on owners ready to transition or seek a succession plan. By leveraging our industry expertise, streamlined operations, and commitment to quality, JWC Service Group aims to build a robust portfolio that dominates the lower-to-mid-level residential market, driving sustainable growth and long-term success.
Mission
To be the name people think of first when they need installation, repair or replacement of their HVAC equipment. Our friendly, highly-trained team offers superior service and integrity, while always being cost-conscious for our customers.
Vision
To lead the transformation of the residential HVAC industry by ensuring every home experiences unmatched comfort and quality through our dedication to excellence, innovation, and community-focused service.
Core Values
01
Empathy and Integrity
Dominate the lower-to-mid-level residential plumbing and HVAC service and repair market by acquiring successful existing businesses and implementing proven strategies to enhance the customer experience and value.
02
Commitment to Excellence
We strive for the highest standards in every aspect of our operations, ensuring that customers and communities receive exceptional service and care.
03
Honoring Legacies
We value the hard work and dedication that built the businesses we absorb. We will preserve their legacy while integrating new approaches that drive growth and benefit the community.
04
Customer-Centric Approach
Our customers are at the heart of our business, and we strive to meet their needs with compassion, meticulous attention to detail, and unwavering commitment to their satisfaction.
05
Innovative Solutions
We embrace innovative ideas and technologies to improve efficiency and service, constantly seeking ways to better serve our customers and communities.
06
Community Engagement
We believe in giving back and being active members of the communities we serve, strengthening local ties, and making a positive impact through our work.
07
Sustainable Growth
We focus on building a future that benefits everyone—growing our business responsibly and sustainably, and aligning with the long-term well-being of our communities and the environment.
Objective overview
Our objective is to implement industry-leading optimal strategies, streamline operations, and elevate customer satisfaction across all acquired entities. By focusing on innovation and operational excellence, we intend to lead this market segment, delivering enhanced value and service quality to homeowners while making a positive impact within our communities. We plan to set a new standard in residential HVAC services through careful integration and a commitment to continuous improvement.
Industry Overview: HVAC in the United States
The Heating, Ventilation, and Air Conditioning (HVAC) industry in the United States plays a crucial role in ensuring comfort and air quality across residential, commercial, and industrial settings. The sector has shown steady growth, driven by the essential nature of its services and the increasing demand for energy-efficient systems. In the residential service and installation segment, gross margins are consistently 30% or higher, with year-over-year growth nearing 6.8%, reflecting the strong and sustained demand for HVAC solutions.
Market Value
As of 2024, the U.S. HVAC services market is valued at approximately $65.72 billion.
Growth Rate
The sector is projected to grow at a compound annual growth rate (CAGR) of 6.8% through 2029, with revenue expected to reach $89.11 billion.
Employment
The HVAC sector employs approximately 568,278 people, highlighting its significance in the U.S. economy.
Number of Enterprises
Around 114,157 HVAC businesses operate in the U.S., underscoring the industry's highly fragmented nature, with a significant number of small to medium-sized enterprises.
Climate Influence
Climate conditions and rising temperature extremes have driven demand for HVAC systems, especially in regions with hotter summers and colder winters.
Energy Efficiency
The push for more energy-efficient HVAC systems is gaining momentum, fueled by consumer demand and government incentives such as the Inflation Reduction Act, which provides tax credits for energy-efficient upgrades.
Technological Innovation
Advances in HVAC technology, particularly in energy efficiency and environmentally friendly systems, offer significant opportunities for growth. Contractors who adapt to these trends are likely to see increased demand and enhanced customer loyalty.
Market segmentation
The HVAC market is closely connected with broader economic and construction trends, and its segments reflect the various demands of residential, commercial, and industrial clients. Spending on new HVAC installations typically aligns with housing market trends, while maintenance and upgrades are driven by ongoing needs for comfort and compliance with environmental regulations.
The graph in the document illustrates these segmentation trends, demonstrating how factors such as housing starts, interest rates, and nonresidential construction influence the different segments of the HVAC industry. Each segment’s performance over the current period is closely linked to economic shifts and government policies, highlighting both opportunities and challenges for HVAC contractors.
Industry revenue in 2024 broken down by key markets
New construction HVAC installations
Existing structure HVAC Installations
HVAC Maintenance and Repairs
Refrigeration system installations, maintenance and repairs
The HVAC industry remains highly fragmented, with a myriad of small—to medium-sized contractors operating independently. This fragmentation presents a significant opportunity for consolidation through strategic acquisitions, enabling increased market share and greater operational efficiencies.
As the market continues to grow, now is the ideal time for JWC Service Group Inc. to capitalize on these opportunities. By strategically acquiring and integrating smaller operators, JWC can set the standard for the industry, establishing itself as a leader in providing comprehensive HVAC services. With the right approach, JWC is well-positioned to drive the next wave of growth in the HVAC market, utilizing its expertise to navigate the challenges and seize the opportunities ahead.
SWOT Analysis Internal: U.S. HVAC Industry
The U.S. HVAC industry is a dynamic and essential sector in maintaining comfort and safety across residential, commercial, and industrial environments. As the industry evolves, it encounters a combination of strengths, weaknesses, opportunities, and threats that shape its trajectory. This SWOT analysis provides a comprehensive overview of the factors influencing the HVAC market, offering insights into the industry’s current landscape and future potential. From the increasing demand for energy-efficient solutions to the challenges of labor shortages and economic fluctuations, this analysis highlights the key elements that HVAC businesses must navigate to thrive in a competitive and ever-changing environment.
Strengths
- Essential Service: HVAC services are vital for residential, commercial, and industrial buildings, ensuring steady demand regardless of economic conditions.
- Stable Revenue Streams: The need for regular maintenance, repair, and replacement of HVAC systems provides contractors with a steady source of income.
- Government Incentives: Programs such as the Inflation Reduction Act and Qualified Improvement Property (QIP) tax deductions offer financial incentives for energy-efficient upgrades, driving demand.
- Geographical Reach: The industry is widespread across the U.S., with exceptionally high concentrations in regions with extreme climates, ensuring a broad customer base.
Weaknesses
- Labor Shortages: The industry faces significant labor shortages, which drive up wage costs and make it difficult to scale operations to meet increasing demand.
- High Competition: The low barriers to entry have created a fragmented market with numerous small players, leading to intense competition and pressure on profit margins.
- Rising Costs: Increasing raw materials costs and compliance with new energy efficiency standards can erode profit margins and make systems less affordable for consumers.
- Dependence on Construction Market: The industry is heavily reliant on the construction market, particularly residential and nonresidential building starts, making it vulnerable to fluctuations in these sectors.
Opportunities
- Growing Demand for Energy Efficiency: Increasing consumer awareness and government incentives for energy-efficient systems creates opportunities for growth and differentiation.
- Technological Innovation: Advances in HVAC technology, such as smart systems and environmentally friendly options, offer new revenue streams and the potential to attract a more tech-savvy customer base.
- Expansion in Nonresidential Sector: Investment in nonresidential construction, such as healthcare facilities and industrial buildings, is expected to grow, providing new business opportunities.
- Climate Conditions: With increasingly volatile temperatures, the demand for HVAC systems is expected to grow, especially in regions with extreme weather patterns, providing sustained growth opportunities.
Threats
- Economic Uncertainty: Fluctuations in the broader economy, such as interest rate changes and inflation, can affect consumer spending on new installations and upgrades.
- Regulatory Challenges: Increasing regulations concerning environmental standards and emissions can increase operational costs and require significant investment in new technologies.
- Supply Chain Disruptions: The industry is vulnerable to supply chain disruptions, which can delay projects and increase costs, affecting profitability.
- Volatile Housing Market: The HVAC industry is closely tied to the housing market; downturns in residential construction can decrease demand for new HVAC installations.
Geographic Overview: HVAC in the United States
Our geographic overview focuses on the distribution of HVAC companies across the Midwest, emphasizing the factors that drive regional demand, such as extreme weather conditions, urban expansion, and industry concentration. By examining these geographic trends in the HVAC market, we can better position ourselves to seize on local opportunities and address regional challenges. According to Data Axle, there are over 2,400 potential companies in the Midwest with minimum earnings ranging from $1.5M to $10M annually, making this region a prime target for our strategic growth and acquisition efforts.
| State | Revenue | Establishments |
|---|---|---|
|
North Dakota |
$403.3 mil |
333 |
|
South dakota |
$389.6 mil |
392 |
|
Nebraska |
$953.1 mil |
894 |
|
Kansas |
$1,130.7 mil |
1,043 |
|
Minnesota |
$2,713.0 mil |
1,984 |
|
Iowa |
$1,500.9 mil |
1,121 |
|
Missouri |
$2,369.8 mil |
1,944 |
|
Wisconsin |
$2,347.1 mil |
2,017 |
|
Illinois |
$5,327.5 mil |
4,376 |
|
Indiana |
$3,204.5 mil |
2,010 |
|
Ohio |
$3,866.4 mil |
2,964 |
Business Strategy for JWC Service Group Inc. in the U.S.
JWC Service Group Inc. is committed to becoming a leader in the HVAC industry by executing a strategic plan that is centered on growth, operational excellence, and customer satisfaction. Our business strategy focuses on leveraging market opportunities, streamlining operations, and enhancing customer experience. By acquiring successful businesses, implementing best practices, and expanding our service offerings, we aim to dominate the lower-mid-level residential market. Our commitment to innovation, sustainability, and community engagement underpins this strategy, ensuring that JWC Service Group meets and exceeds industry standards and customer expectations.
1. Growth Through Acquisition
Expand customer base and service capacity by acquiring minor to mid-sized HVAC businesses in the Midwest.
Action Plan
2. Operational Efficiency
Streamline operations across all acquired entities to improve efficiency and service quality.
Action Plan
3.Customer Experience Enhancement
Improve customer satisfaction and increase retention rates.
Action Plan
4. Service Expansion and Revenue Diversification
Diversify service offerings and create steady revenue streams throughout the year.
Action Plan
JWC Service Group Inc. is poised to lead the Midwest HVAC market through strategic acquisitions, streamlined operations, enhanced customer experiences, and service expansion. Emphasizing on these core areas will drive sustainable growth, strengthen our brand, and deliver exceptional value.
This strategy ensures that JWC Service Group thrives in a competitive market and establishes a new standard for excellence in the industry.
Introduction to the Board of Directors
The Board of non-executive directors at JWC Service Group Inc. is composed of a distinguished group of advisors who collectively bring over 75 years of experience of combined experience in the HVAC industry. This exceptional team has a proven track record of streamlining operations, driving efficiency, and leading successful acquisitions. Their extensive industry knowledge and strategic insights are invaluable as we navigate the complexities of the HVAC market, ensuring that our company remains at the forefront of innovation and growth. With their guidance, JWC Service Group is well-positioned to execute our business strategy and achieve sustained success.
Chairman
Steven Weber
Steven Weber brings over 25 years of extensive experience in the HVAC industry, having excelled as an owner, operator, executive, and consultant. His impressive career includes owning multiple large HVAC companies and a pivotal role in over 70 acquisitions within the industry. Steven’s expertise was further recognized during his tenure as an “Industry Expert” with a $6 billion venture capital firm specializing in the HVAC sector. Additionally, he held the position of National Director of Operations at a $200 million+ HVAC company, where he successfully led operational strategies on a national scale.
Founder
Jason W. Collie
Jason W. Collie, the founder of JWC Service Group, based in Roscoe, IL, brings over twenty years of extensive experience in commercial sales management. His proven track record of success in leading sales teams, driving revenue growth, and implementing strategic initiatives is a testament to his competence. Jason is currently overseeing the first two acquisitions of his company in Northern Illinois, having transitioned from his previous corporate role in Ardmore, PA.
In his most recent corporate role as General Sales Manager at Coilplus Inc. in Philadelphia, Jason oversaw a team of 14 across multiple departments, managing $200 million in annual revenues. His responsibilities included forecasting, budgeting, and tracking sales goals, where he successfully grew business volume by 20% over 3.5 years in a mature market. He also negotiated and approved contracts, managing inventory purchases exceeding $150 million annually.
Legal Chair
Joshua Barney
Joshua Barney has over 30 years of experience as legal counsel, advising a range of entities from startups to billion-dollar corporations. He has led and served as principal in several M&A transactions and has previously held the position of Corporate Counsel for Kia of South Korea and Kawasaki Trading of Japan. Joshua currently serves on the Board of Directors for a PE Investor fund and is a founding partner in two firms, focusing on startups and M&A activity. He is a graduate of Columbia Law School with an undergraduate background in Marketing & Finance.
Joshua is the founding attorney at JS Barney, Ltd., providing custom legal and advisory services for companies undergoing transitions, including succession planning, sales, mergers, debt negotiations, and legal representation for startups and early-stage and growing companies. Additionally, he co-founded Barney & Karamanis, LLP, a firm offering comprehensive litigation services, and co-counsels with other law firms specializing with law firms specializing in specific practice areas, with a strong emphasis on technology, biotech, Native American, and international matters.
In addition to his legal practice, Joshua manages Barrington Angels, an investment group that focuses primarily on women-owned and operated businesses and women-related products. He has also served as President of the Green Mansions Foundation since 1996.
Board Advisor
Rick Hernandez
Rick Hernandez has over 30 years of financial executive experience in Fortune 500 public companies, private equity-backed startup companies, and nonprofit foundations. Rick has worked in multiple industries, including oil and gas, environmental waste services, healthcare information technology, home healthcare, Department of Defense contracting, construction, automated fuel management, and telematics. Rick has actively participated in successful large-scale sales of private companies to global and national companies. Additionally, Rick has actively participated in purchasing small- and medium-sized companies.
