Unknown Analyst
There’s a lot of — or maybe several players in the U.S. resi and light commercial HVAC market. And sometimes from us on the outside looking in, it’s difficult to identify the differentiation at the business level. So I guess, why do you guys think Lennox is positioned to win?
Alok Maskara
CEO, President & Director
Sure. Yes, I think that’s a great question to start off the discussion here, especially for those of you that aren’t that familiar with Lennox. So there’s really 2 main competitive advantages we see at Lennox. I’ll talk about the first one and then hand it off to Prakash to talk about the second one.
But the biggest advantage we have is our direct-to-contractor channel that we offer. Essentially, what that allows us to do is be a manufacturer and a distributor. And that really gives us a few advantages. First, structurally from a profitability perspective, if we perform well, it gives us the opportunity to have a manufacturing and a distributor margin, which is good. We’ve been a really good manufacturer. We’ve been spending a lot of time being a better distributor, making a lot of investments in that side of our business.
So that’s helpful for us. But really, what’s important to the contractor is about connecting closely
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