Publisher Terry Tanker spoke with Jeff Underwood, President of RectorSeal. The two discussed living in Texas, family, selecting a management team and introducing new products, the impacts of business travel on managing the company, and the make up of a good HVAC contractor.

1.    What is your favorite thing to do in Texas? 

I enjoy hiking and camping with my family.

2.    Do you listen to podcasts? 

If so, what are your top three? I do. My top three would be The Daily, Freakanomics and How I Built This with Guy Raz.

3.    Do you live on a ranch, farm, or just the wide-open spaces in Texas?

I live on a farm. We have about 40 animals between chickens, goats, ducks, cats, a dog and some show cattle. My sons are active in 4-H.

4.    Have you ever gone hog hunting? 

Texas has a huge problem. I’m not a big hunter, but it is a big problem. We have seen them come onto our property on a more regular basis and are fortunate to have neighbors who help trap and hunt them.

5.    You entered the HVAC industry as a consultant. What attracted you to stay in HVAC? 

I had the good fortune to work with a strong leadership team at Goodman when I was a consultant. They were a team that I was excited to work with. Once joining the HVAC industry, my co-workers, customers, and friends have been a great reason to stay.

6.    In the past, you’ve moved up quickly in organizations. What’s your secret? 

I have been blessed with some amazing opportunities. Aside from the typical answer, I would credit a strong sense of curiosity, a desire to serve others and a desire to win.

7.    What is your favorite part of managing an organization? 

Being able to work with my friends, as well as people that I genuinely enjoy. Moreover, the role at RectorSeal is different in that we are an ESOP (Employee Stock Ownership Program), and there is a strong sense that the organization’s performance directly impacts everyone’s financial well-being.

8.    What do you find most challenging about managing a company?

The pace and depth of the travel. I find it important to be at our 10 manufacturing and distribution sites with our team on a regular basis, as well as to talk to our customers.

9.    RectorSeal has recently completed several acquisitions. What’s the plan for the future? 

Our vision has been to make it easier, faster or more reliable for the HVAC tech or installer to do their job. We will continue to add on products and companies that help us meet that vision, especially staying ahead of market trends.

10.    What is your greatest achievement so far? 

My family. I am fortunate enough to have been married for over 15 years and have three boys that I take great pride in seeing grow and mature.

11.    How did you put your management team together? I have tried to recruit folks that I have known professionally and that I think share my values and work ethic.

12.    What characteristics do you look for when hiring? 

Aside from the standard qualifiers, curiosity is the most important differentiating factor.

13.    What do you think personifies a successful HVAC dealer? 

HVAC dealers are often the backbone businesses in most of their communities they serve. My friends who have excelled as HVAC contractors have done it by being technically sound, treating their customers fairly and treating their teams exceptionally. Their businesses are driven by word of mouth, with a high level of recurring customers over an extended period.

14.    How does RectorSeal ensure that they offer high-quality products? 

RectorSeal is fortunate enough to have a quality reputation. A major focus over the last decade has been to improve those quality systems, as well as providing multiple checks to confirm product quality. For instance, our Safe-T-Switch condensate switches get run test three times before being shipped to a distributor. As a result, our warranty claims rate is very low, even with us being the first parts manufacturer to offer a standard 3-year warranty on all products.

15.    RectorSeal is a company name and a brand name. Does it cause any confusion? 

Only a nominal amount of products are branded RectorSeal. We view ourselves as a House of Brands, with a portfolio of contractor-developed or contractor-supported brands, such as TRUaire, Safe-T-Switch, Novent, etc. In the coming year or so, you will see us do a better job of conveying the value of RectorSeal as a manufacturer for our brands while letting contractors know the full breadth of brands we offer.

16.    How has technology changed the relationship between a supplier like RectorSeal and a distributor or manufacturer’s representative?

It allows for it to be more robust and direct. In the past, you had a game of telephone to reach contractors and explain why you have a better product to serve their needs. Now, there are multiple avenues to have that conversation. This includes a dedicated Inside Sales team, in addition to our Outside Sales team and manufacturer reps, that call, email and provide samples to contractors. These conversations expose contractors to new products, as well as provide feedback on their needs.

17.    How often does RectorSeal plan to introduce new or enhanced products? 

This year, we are targeting 15-plus product launches, in addition to integrating the products from our recent acquisitions.

18.    What is one RectorSeal product that every HVAC dealer should use? 

Surge & voltage monitoring. It is going from a nice-to-have to a best practice on all multistage installs.

19.    What do you think will be the next big thing in the HVAC industry? 

Acceleration of the current trends of energy efficiency, greater diagnostics, electrification (heat pumps) and indoor air quality.

20.    As A2L refrigerants are introduced, what challenges are created for component manufacturers? 

The change has been much less impactful for the component side. We have focused on ensuring that all of our refrigerant products work well with A2L refrigerants. This required nominal changes on some elastomers.