Friday, October 19, 2007

After 10 years, Johnson-Barrow and JCI/York Announce Split

JCI Worldwide services has recently announced a new HVAC products distribution strategy and support for its Building Efficiency business division which includes York international and JCI controls. In an effort to integrate its marketing efforts towards owners, contractors and engineers, JCI will be reorganizing its go-to-market strategy in 15 plus major markets around the nation, including Washington State. The plan is for York to be more directly marketed through the JCI offices with the assistance of an independent rep organization as a support service to the controls division. This will also include the integration of the unitary (Consumer Products) division into their new business strategy.

Wayne Garret, Western Regional Sales Manager for JCI, says the move is designed to better integrate the three aspects of the company. “We needed to get a single face to the customer regarding who JCI is. Unitary, Controls, and Engineered products needed to be more closely tied than was presently the case. This will help our customers get a better understanding of the JCI depth.”

Mark Johnson NW sales manager was asked what things will happen as a result of these changes. “In Markets such as Seattle, major changes are already underway to integrate controls, engineered products, and unitary equipment. Air Cold, a division of Ferguson has discontinued its representation of the York Unitary products. Johnson Barrow will be terminating it’s relationship with the Engineered products division, and finally JCI in Bothell, WA will direct marketing strategies for the Washington and other Pacific NW markets.”

Patrick Hollister of Johnson-Barrow commented that this announcement did not surprise their organization. “For years we have been figuring that York would reposition itself to better integrate the unitary and controls division into a more uniform marketing organization. Thus, over the last couple of years we have been positioning ourselves to be more diversified in our product and service offering. Evidence of this can be seen with the addition of AAON, Smardt Chiller, and Climate Cool. We want to maintain our independence as a solutions oriented company focused on unique products that provide value for our customers”.

When asked to comment on the JCI announcement, Gary Bodenstab of Johnson-Barrow echoed Hollister’s observations. “Look at the magnitude of change around the country. US Air has replaced Air cold in the major SW markets, Ferguson has dropped York. The controls division is in flux trying to regain market share in the NW markets. We figured some major change was underway in the NW—it was only a matter of time. We wish the best for JCI and its new strategy. It’s now time for Johnson-Barrow to focus on our roots of independent companies dedicated to market innovation, energy conservation, and customer value.”

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