Arch is marketing software for home services contractors. It connects to ServiceTitan, identifies customers at risk of churning, surfaces high-intent prospects, and automatically runs personalized email and direct mail campaigns. No agencies or additional headcount required.

What types of contractors does Arch work with?

Arch is purpose-built for HVAC, plumbing, electrical, and drain contractors who use ServiceTitan.

Is Arch right for my company?

Arch is designed for professional growth contractors with consistent marketing spend who want to maximize customer retention and lead generation without adding headcount.

How does Arch integrate with ServiceTitan?

Arch has a native integration with ServiceTitan. Your data stays in sync, attribution is accurate, and there's nothing to stitch together. All campaign performance flows back into ServiceTitan automatically.

How long does it take to get started?

Implementation is low-lift. Most contractors are up and running within 2 weeks.

What data does Arch use to find new prospects?

Arch layers your ServiceTitan customer data with external signals including permits, real estate transactions, and financial data. This helps identify high-intent homeowners in your service area before competitors reach them.

How does Arch help with customer retention?

AI analyzes patterns in your ServiceTitan data to detect early warning signs that a customer is at risk of churning. These accounts are automatically enrolled in retention campaigns before they're lost to competitors.

What marketing channels does Arch use?

Arch sends personalized campaigns through email and direct mail, both proven channels for home services contractors. Campaigns are triggered automatically based on customer behavior and intent signals.

Does Arch replace my marketing agency?

For many contractors, yes. Arch runs customer retention and lead generation campaigns automatically, giving you the output of a marketing team without the cost or management overhead.

What is the free diagnostic?

The diagnostic is a free revenue analysis that shows how much your business is losing to customer churn. You'll see your revenue at risk within 48 hours. No commitment required.

What kind of ROI can I expect?

Results vary by business, but in one case study, Pacific Heating & Cooling generated approximately $138,000 in revenue from a $12,000 direct mail investment in 36 days. That's roughly 11x ROI.

What kind of customer service does Arch provide?

We provide customer service 7 days a week and pride ourselves on white glove service. Our team is here to support you whenever you need help.

How do I get started?

Request a demo or start with a free diagnostic. Our team will analyze your ServiceTitan data and show you exactly where you're losing revenue, and how Arch can recover it.

Navigating Increased Competition for M&A and High Interest Rates in the HVAC Industry

Introduction

The HVAC industry is experiencing a significant shift in market dynamics, driven by increased competition for mergers and acquisitions (M&A) and high interest rates. These changes present both challenges and opportunities for businesses looking to grow and maintain their competitive edge. Understanding these trends is essential for HVAC contractors and companies to navigate this evolving landscape effectively[3].

The Impact of Increased Competition for M&A

Over the past five years, EBITDA multiples in the HVAC industry have increased from 2.5 to 4.5, reflecting the heightened competition for M&A deals. This rise in multiples indicates that acquiring businesses has become more expensive, making it crucial for companies to be strategic in their growth plans[3]. The surge in private equity deals with HVAC installers underscores the intense competition in the market

Increased Cost of Acquisitions: With higher EBITDA multiples, the cost of acquiring businesses has risen significantly, putting pressure on companies to justify these investments through improved performance and efficiencies.
Rise of Consolidation: The industry is seeing a trend towards consolidation, with many smaller companies being acquired by larger entities. This consolidation can lead to economies of scale but also increases competition among remaining players.

The Challenge of High Interest Rates

High interest rates, driven by recent Federal Reserve hikes to the highest levels in 22 years, are adding another layer of complexity to the HVAC market. The increased cost of borrowing impacts companies' ability to finance acquisitions and invest in growth initiatives[3].

Higher Borrowing Costs: The increased interest rates make loans and financing more expensive, which can deter companies from taking on debt for expansion or acquisition purposes.
Pressure on Profit Margins: The higher costs associated with borrowing can squeeze profit margins, making it essential for businesses to find ways to operate more efficiently and reduce costs where possible.

Future Outlook

The HVAC industry is poised for continued competition and challenges due to high interest rates and the evolving M&A landscape. By focusing on operational efficiency and organic growth, contractors and companies can navigate these challenges and emerge stronger. Emphasizing customer satisfaction, leveraging technology, and staying agile will be crucial for success[3].

Conclusion

Increased competition for M&A and high interest rates are reshaping the HVAC industry. By understanding these trends and implementing strategic changes, businesses can navigate this challenging landscape and find opportunities for growth. For HVAC contractors, this is a time to innovate, improve, and prepare for a competitive future.

References

HVAC.com - 2023 HVAC Regulations
Consulting Report by EY-Parthenon
ACHR News - Private Equity Firms Continue to Acquire HVAC Firms at Rapid Clip