America's new millionaire class: Plumbers and HVAC entrepreneurs

My dad bought a failing HVAC business 30+ years ago, then made it profitable over the years and sold it back to his employees last year. He had the option to take a few highly lucrative PE deals, but it was clear they would squeeze the life out of the employees and customers he had worked hard to support over many years. I can’t imagine how low quality this kind of trade work will become if PE owns them all. It will be similar to vet, dentist, and dermatology clinics which now feel like factories that don’t care about the humans on the other end - often employing fear tactics and sales quotas to incentivize upsells.

> often employing fear tactics and sales quotas to incentivize upsells

This already happens. The most common AC repair needed is a new capacitor. It's a $20 part.

Call your dad's business, you probably get a quote for $100-ish and it's fixed in ten minutes.

Call a PE owned shop and they are likely to tell you that your entire system needs replaced. Quote $5-$8k.

Reports like this are already common place, and the roll-ups of former small-businesses in industry like HVAC that the PE people celebrate will only make this worse for customers.

Could someone ELI5 why AC capacitors are so fragile? I had one fail last year on a unit that was just out of warranty.

It’s not so much that they are fragile, as they’re a part that gets a lot of very heavy duty use and they’re expensive to make invulnerable. Ain’t no residential customer going to pay for a 100mfd 240v tantalum cap (how big would it be even?).

Think of them like a car starter motor or transmission (for old ICE vehicles).

Assuming we’re talking motor start capacitors anyway. For most of them, every time the compressor starts they see a dead short at 240v for a couple milliseconds, typically in the 10,000+ amps range.

And most people use their AC the most when it’s hot and nasty out. Which doesn’t help.