When United Technologies (parent company to Carrier) decided to move toward independent distribution in 1995, Tom Williams purchased the operation known as Carrier Michigan. He retained the Carrier product line to continue to serve a well-established dealer base. And, he renamed the company to Carrier Great Lakes (CGL)
CGL is the exclusive distributor of Carrier HVAC products throughout Michigan and Northern Ohio.
However, the operation required a great deal of investment in new facilities, an increased and broader inventory, better trained personnel, and new service offerings. This investment continues today, over 14 years later, as evidenced by a new location in Madison Heights, Michigan with 23,000 square feet of warehouse space and 4,000 square feet of showroom space. The store opened in the second quarter of this year. In all, CGL operates in six locations.
The economic recession has, of course, hit hard in their service area. Keith Winnie, CGL’s Parts Sales Manager, has seen it all, having been with the company for 25 years. In recent times, he has watched as some of his larger dealers adjusted their business plans to changing market dynamics. “Several have had to change direction in the last two to three years,” he says. “Those engaged in new construction, for example, have moved to add-on services for retrofit work.”
By the same token, CGL has had to pursue an aggressive investment strategy to maintain and grow market share. Keith credits his product line with helping their own operation switch from less new construction to more retrofit work. The refrigerant changeover to R-410A helped due to the large installed base of quality customers, for example. (Carrier Corporation was the first company to introduce a R-410A-based residential air conditioning unit in the marketplace in 1996 and is still a leading supplier today.)
Still, it’s a competitive marketplace out there for distributors and dealers alike. Keith has seen such trends as cut-throat, give-away pricing from competitive equipment manufacturers to a complete nose dive in parts sales.
But rather than moving to desperate practices, Keith and his team combat the marketplace with high-efficiency products and answers.
“We’ll continue to do the right things,” Keith says. “That means that we’ll focus on training. We’ll do some creative advertising. We’ll put together promotional programs that differentiate us. We’ll think outside the box. We will be proactive, not reactionary.”
One such tactic includes a move to a web-based store front in this last quarter of this year to more rapidly meet customer demands. “In today’s business environment, you can’t afford to have your customer wait on hold,” Keith says.
Continental has also played a role in CGL strategy. Keith explains that they carried competitive brands for many years but that these brands were causing CGL inventory concerns due to poor delivery.
“We made the switch to Continental about 3 years ago,” he says. “It has been a quick and easy transition. Continental pricing keeps us competitive, the quality of workmanship is outstanding, and we outfitted our showrooms with displays and selling tools to ensure a smooth transition.”
In the final analysis, it’s all about investment for Carrier Great Lakes. While competitors are using the uncertain economy to “retreat,” Keith and his team at CGL are investing in facilities, in employee training, in expanded customer services, in creative marketing, and in energy efficient products and related knowledge.
It’s a strategy that has secured them a premier position among HVAC distributors—in the past, in the present, and certainly in the future.
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