Applied Mechanical Solutions Inc.: Building Success Across 3 Generations

How can small-to-medium size construction businesses hope to bridge the generational divide?

Behind the Build sat down with three contractors who span as many generations at Applied Mechanical Solutions, a 14-employee, full-service commercial and industrial San Diego HVAC contracting company. They talked about the critical importance of investing in younger contractors for long-term success.

BTB: Jay, you oversee an age-diverse company. Is there a benefit of having so many generations of contractors under AMS’ roof?

Jay: There really is. We make an investment in young employees who are eager to learn the trade. We actually bring them up in the industry and help them develop their skills for the future. They may not know everything or have a full skillset, but if there’s a hunger to gain technical  skills. We’ll work with that individual and offer them training. They’ll grow with the company, understand our work culture, such as how to serve customers with the goal of gaining repeat business. We could hire only older, more experienced technicians, but when you do that, you have to take on both their good and bad habits. Investing in apprentices helps ensure they develop our same high standard of quality workmanship and professionalism.

BTB: This has got to be a large financial investment on the part of your business, yes?

JAY: It is a large investment when you bring in a young person. We can’t always bill for their on-the-job training. Each person is different, but we probably invest 4000 man hours of training per employee on average. So that’s two years of time apprentices that we can’t bill for. But it’s worth it, because we get that return on investment in the long run. We end up working with individuals who are the right fit, and that’s key in a business climate where labor is tight.

BTB: Michael, this isn’t only a commitment on the part of AMS’ leaders but also one taken on by your apprentices. As the millennial of the group, what do you think is the prime motivator for younger contractors to make this commitment to AMS?

Michael: It comes down to what you value. If you’re doing it just for money, that’s more likely to be with a larger company. I think in a smaller company, it’s easier to get that commitment from younger employees. The big benefit to the younger employee is the promise of rapid growth, a pathway to ownership, and long-term relationship-building.

BTB: How is that different than, say, a few decades ago?

MIchael: The idea of loyalty has changed over time. For older guys, say in Jay’s generation or older, companies and their contractors valued loyalty. But in my and Ezra’s generation, the work has become more depersonalized, largely due to increased regulations that take the relationship aspect out of the equation.

BTB: Ezra, as the Gen Z-er here, why did you choose to enter the trades at AMS?

Ezra: I chose to give this a go because I didn’t want to be in debt. Instead, these guys give me the experience and training I need to become an asset. When I was going to a trade school and observing other guys’ careers and lives, I noticed a majority of my classmates who were working for a big company got laid off because they weren’t fast enough. The company wasn’t invested in them so they weren’t invested in the company.

BTB: Some call GenZ the “tool belt generation.” Why do you think that is?

Michael: Back in the early 2000s, there was less interest in entering the trades, but that’s changing. Personally, I could have gone to college but I saw people around me with massive school debt and I had to ask, why get a degree and no experience? Why not instead get experience, make some money, and maybe get a degree later? That path provided a much better return on investment than attending college.

BTB: Jay, what kind of training does AMS provide for your apprentices?

Jay: We train them on many different levels. Seventy to 80% is on-the-job training. There is also formal in-house and online training, as well as ABC classes, including their apprenticeship program. Around the two-year point, we’ll send them to factory schools to learn about the intricacies of the equipment. For that, we pay for their travel, hotels, and meals.

BTB: How is this different than the way the industry dealt with apprenticeships when you were coming up in the ranks?

Jay: One of the biggest differences I see today is that there is very little vocational education offered in middle and high school. When I was in school, metal shop, auto shop, wood shop, electronics, agriculture, and drafting were all available to us. Many of us were able to get into the trades while still in high school and could earn work credits to complete our graduation requirements. Nonetheless, it was still a brutal grit and grind initiation. It wasn’t uncommon to be hazed and run through the gauntlet, to get tested in all aspects of character to see if you were going to make it.

In recent years, apprentices displaying very little skill sets get hired with their hand out, wanting you to put something in it by way of training, tools, and compensation. Whereas before, you had to come with skill sets and a work ethic, proving you wanted the work. Today, the trades are more cerebral. There’s more technology involved. Global warming policies have impacted energy conservation in building designs. It’s requiring more tech aptitude, so kids need to have a greater technical aptitude to work in industry.

BTB: Ezra, what was most important to you when you got started? What are you looking forward to in terms of your future career?

EZRA: Putting people through the grind isn’t super helpful. These guys give me the experience and training I need to become an asset faster. In terms of my future career, I plan on staying with Applied Mechanical Solutions. I have truly enjoyed working with these men and the work we do. I am investing in myself by going to school, attempting to learn as much as I can every day, and buying tools! My goal in this career is to go step by step towards my long-term goal of one day becoming a part owner of this company.