How to organize a heating installation business
According to one of the definitions, a heating system is a set of technical elements designed to receive, transfer and transfer to all heated rooms the amount of heat necessary to maintain the temperature at a given level.
What are these elements? To obtain heat, sources of various scales and levels of technical complexity can be used – from thermal power plants and nuclear power plants to wall-mounted gas boilers. As a means of transfer, piping systems filled with coolants are used – as a rule, fluids with high heat capacity and low viscosity. In most cases, ordinary water is used. Heat is transferred from the coolant directly to the atmosphere of the room through heating radiators – cast iron, steel, aluminum or bimetal. All together, as mentioned earlier, these elements represent a heating system.
Another important human need is the need for water. To satisfy it, a water supply system was created that delivers sufficient water to our homes for drinking and domestic needs. The pipeline is also a means of transporting water, which makes heating and water supply systems essentially similar.
For this reason, heating and water supply are often adjacent to each other – when studying at universities, in the structure of departments of design institutes, in the lists of services of installation organizations, or otherwise – installers of engineering systems. We will talk about the latter in detail in this article.
The market of engineering systems is quite clearly diversified: there are design organizations, there are suppliers of engineering equipment and tools, there are installation organizations. In rare cases, two, extremely rare – three functions are combined within one organization. Usually, an effective division of labor occurs.
The tasks of the installation organization are the purchase of equipment, its installation according to the existing project and the subsequent maintenance of the system. Nothing complicated, it would seem. However, not everything is so simple. As in many other industries and lines of business, the staff here is everything. You can use the best tools and work only with the best suppliers, but spoil all this chic by the lack of qualifications of workers. Therefore, the most important task of an entrepreneur who has decided to invest in the opening of the installation organization of heating and water supply systems is the selection of highly qualified specialists. And the question here is not only about the possession of one or another installation technique and experience, but about adequacy and learning. Today, products and technologies are rapidly evolving, and their manufacturers and suppliers conduct seminars and workshops for specialists, so you must constantly keep abreast of the news and keep up with the trend. This will provide the enterprise with high competitiveness.
You can classify installation organizations by a huge number of signs, which indicates the wide possibilities of specialization, which, in turn, indicates the presence of a large number of large areas and narrow niches with a completely different level of competition and profitability. For example, according to the industry affiliation of customers, the market is segmented as follows: 30% – the primary construction market, 25% – utilities housing and communal services, 10% – construction and repair of industrial enterprises, 35% – retail and intermediaries. As a rule, installers form a sales structure, focusing on their own connections and opportunities. For example, if the founder has ties in the housing and communal services sector, it will be in this area that 90% of its turnover will fall. As practice shows, it is the housing and communal services sector that is by far the most corrupt, and entry for newcomers without connections has been ordered here.
In addition, in the repair of existing networks, the bulk of the use of low-quality materials that will allow after a while to repeat the repair of the same area for new kickbacks.
New construction is another matter. Usually subcontracting issues are resolved through tenders. You can win not only due to the low price, but also by offering a more complete set of services than a competitor, a guarantee, etc. Of course, there’s no getting around without kickbacks, such is the bitter truth. But in fairness it’s worth recognizing that such a way to achieve a result today is turning less and less. Personal contacts also play an important role: not all builders choose subcontractors on a competitive basis.
And yet, even despite the crisis, the volume of new construction continues to grow. According to some reports, their growth is limited to 1-2% of real estate funds, but in the current economic and political situation this is a good indicator. In addition, developers seek to build a long-term business, which requires a good reputation.