Tom was invited to Houston, Texas to tour the many Goodman manufacturing facilities Dec 2-4th.

DAY 1

"We were very impressed with the health and safety policy that was in place in the three manufacturing facilities (furnace, air conditioning and flex duct factories) that we toured. Goodman also seems to understand that the employees on the line are integral to a quality product. As we toured, we received acknowledgement and smiles from those manufacturing the products that we sell and install. They know that it is a partnership between the dealers and the manufacturer to keep customers satisfied. Goodman posts all of the daily statistics, both positive and negative, for their employees to review as well as the comment cards that the installer receives with each piece of equipment. We never thought anybody even read those let alone posted them for all the employees to look at! We watched each furnace and air conditioner tested on the line to ensure that no duds are shipped. As well 1% are brought in to the quality control lab and gone over with a 'fine tooth comb'.

If any thing is wrong with the unit being tested, through UPC control, they are able to locate and quarantine the unit made before and after. If any of those units show similar problems, the quarantine sample is doubled again until no deficiencies are found. The results are followed up on the assembly line to correct any issues."

"We then toured the research and development lab where extensive testing is done on their product, as well as the competitions. We also witnessed extensive testing of the third party components that are installed in their units (ie: fan motors, contactors, circuit boards etc.). There is a host of environmental chambers that simulate everything from a 140-degree F. day, salt-water mist, freezing temperatures. Anything that Mother Nature might throw at their units is thrown at them first by the engineers in the testing lab. Interestingly, we learned of the standards by which the specifications and ratings of the equipment are policed. ARI is an association that all heating and air conditioning manufacturers belong. They ensure that the ratings given to equipment in terms of capacities and efficiencies are accurate. Manufacturers receive penalties for product that does not meet their own claims and in some cases the product has to be relabeled for the capacities/efficiency the really meet. Goodman claims to be the only manufacturer to have had no involuntary re-rates in 21 years. Goodman’s performance matches or exceeds its published values. A statistic they are extremely proud of. They have many pieces of equipment under various load and cycle tests. They even have a heat exchanger that since 1994 has been cycled with-out failure between 200-1100 degrees F. approaching its 2 millionth cycle predicted early in 2009”

DAY 2:

We went to the corporate office of Goodman for some marketing and company information. We learned the following:

Goodman is the fastest growing manufacturer of residential heating and air conditioning products. Last year, 2007, 2 billion dollars in sales has helped them become America's largest selling brand at 22%marketshare. That means for every 100 furnaces/air conditioners sold last year, 22 had the Goodman name on the front of the furnace.

Why is Goodman the largest brand when Carrier manufactures more furnaces?

Because many of the furnaces Carrier manufacturers are do not have the Carrier name. Carrier has branded some of their furnaces as Payne, Bryant, Day & Night as well, they bought Keeprite a few years ago and furnaces branded as Keeprite, Tempstar, and Heil are all included in the above 2007 statistics.

Why has Goodman achieved such success since Harold Goodman founded the company in 1982?

Harold Goodman was one of Americas largest residential heating and cooling contractors and he saw a need for a manufacturer that could deliver a quality product at a fair price and keep inventory at the distributors through heat waves and cold snaps. He felt as many of us contractors feel today, frustrated by distributors not stocking the equipment we need today. You, the customer doesn't want to wait 3 weeks in Dec. to have his furnace replaced. He started Goodman Manufacturing. Today, Goodman at peak can manufactory 6400 air conditioners a day with a number of record setting days in which 8000 units per day were manufactured last year. On a peak day, their 750,000 square foot logistics center handles 120 transport trucks delivering from their factories and another 120 transports delivering to the largest number of distributors of any HVAC manufacturer (almost 3 times).

Why have you not heard of Goodman?

Goodman spends virtually nothing on a national advertising campaign. They spend the hundreds of millions that their competition spends on keeping the price low, research and development,warranty development and educating their dealers. The way they see it, when you need a new furnace or air conditioner, you call the person you trust, your local contractor. It is his responsibility to recommend the right furnace for you. Would you rather put your trust in they guy who installs this equipment everyday and who's reputation is riding on the product, or on a manufacturer that decides to spend hundreds of millions to build brand awareness?

We were extremely impressed and confident with the Goodman manufactoring and testing process. We hope we can pass this onto you, our customer, and that you have the confidence in the selection of equipment that we choose to represent.

Tom McDonald
Dec7th, 2008