Customer demand for decarbonization, sustainability, and improved IAQ are driving the HVAC industry these days. In our latest installment of the Blueprint Q&A, David Budzinski, president of global residential and light commercial for Johnson Controls, discusses the ways his company helps HVAC engineers meet these goals for their clients.  Budzinski is responsible for the global ducted and ductless HVAC businesses. He manages all aspects of the business and drives the growth of this global portfolio. 

Prior to his current position, Budzinski served as the chief commercial officer for Johnson Controls’ global products division where he and his team were responsible for sales, commercial operations, product management, customer and technical services, technology, and go-to-market strategy. With experience across finance, operations, product, and strategy, Budzinski has been with Johnson Controls for over 16 years. 

Engineered Systems: Have your results met your expectations so far this year? What do you expect for the rest of 2023?

Budzinski: According to our last earnings report, Johnson Controls is delivering a strong performance so far this year. All of the details of our second-quarter performance and 2023 outlook are in our most recent press release here.

Our strategy is built on a strong foundation of operational excellence and our culture of leadership, and we’re focused on providing solutions for sustainable and healthy buildings through our enhanced platform of OpenBlue products, services, and solutions. We are meeting demand while continuing to focus on exceeding customer expectations.

Engineered Systems: What areas are driving demand for Johnson Controls?

Budzinski: Regulatory changes, government incentives, and climate change are driving demand in the HVAC industry as a whole. Johnson Controls is leading the evolution of smart, healthy, and sustainable buildings, and our OpenBlue ecosystem of connected solutions and services continues to grow. What started as a technology to uplevel and monitor systems such as HVAC has transformed into the ability to apply data from both inside and outside buildings to help our customers manage operations systemically.

We’ve recently introduced OpenBlue Net Zero Buildings as a Service, a fully integrated building decarbonization offering. Through this service, we offer carbon footprint assessment and advisory, as well as digital tracking of energy and emissions. The as-a-service financial models remove financial barriers and make it possible for building owners to begin the net-zero journey without upfront capital outlays.

We also continue to lead innovation in energy-efficient HVAC equipment, releasing units that meet or exceed new Department of Energy efficiency regulations and upcoming refrigerant regulations. We’ve introduced multiple innovative heat pumps in the last year. These heat pumps have some of the highest efficiency levels in the industry, use refrigerants with low global warming potential (GWP), and are engineered to provide reliable heating in colder climates. 

Engineered Systems: The words everyone in the industry is using these days are “decarbonization” and “sustainability.” How is Johnson Controls approaching these concerns?

Budzinski: Climate change is one of the defining issues of our time. According to the March 2023 report from the United Nations Intergovernmental Panel on Climate Change (UN IPCC), emissions must be reduced by more than 40% before 2030 in order to limit global warming to 1.5 °C. Buildings are responsible for nearly 40% of global carbon emissions, which means their decarbonization presents a significant opportunity to lower emissions worldwide. Johnson Controls has the technology, financing, and expertise to transform buildings from one of the biggest sustainability challenges into one of the greatest – and fastest – solutions.

Sustainability and decarbonization are the core of our business, and we’re already marking milestones on the path to achieving net zero in buildings around the world. We’re ahead of schedule on our net-zero journey, already reducing absolute emissions across our operations by 42% since 2017. And for our customers, our innovative technologies have reduced their emissions by 14% since 2017. 

Our heating and cooling systems are some of the most energy-efficient and sustainable in the world, and system retrofits that use high-efficiency systems can reduce energy, emissions, and costs by between 30% and 40%. Our innovations in heat pump technology are also driving ever-higher energy efficiency levels and making the first step to clean electrification possible for homes and buildings around the world. 

Engineered Systems: What about IAQ?

Budzinski: Although the HVAC industry has understood the benefits of high-quality indoor air for a long time, the COVID-19 pandemic made its importance known on a global scale. In the years since, IAQ has become a key pillar for smart, sustainable, and healthy buildings and a high priority for homeowners alike. However, addressing indoor air quality often involves increasing filtration and using HVAC equipment, both of which consume energy. With sustainability also at the forefront of discussion, Johnson Controls is helping our customers address IAQ and decarbonization goals simultaneously.   

Our technologies and services balance IAQ with energy spent to help improve healthy environments for occupants while helping to meet net-zero goals. We’re helping our customers leverage proven IAQ strategies, such as demand-controlled ventilation (DCV), with our OpenBlue AI technology, which tracks, measures, and optimizes HVAC system operation for both IAQ and sustainability. Our OpenBlue Indoor Air Quality as a Service provides building owners and managers with a detailed audit of building IAQ as it changes with weather, outdoor air conditions, occupancy, and time of day and provides practical recommendations for improvement.

Engineered Systems: What impact do you expect from the Inflation Reduction Act?

Budzinski: The tax incentives and consumer rebates in the Inflation Reduction Act (IRA) offer the industry great opportunity to increase new, high-efficiency equipment installations in buildings and homes. The initial cost of HVAC equipment is usually the largest obstacle for building professionals and homeowners involved in decision-making. The deductions and incentives the IRA provides put the adoption of high-efficiency, sustainable, HVAC equipment within reach for a wider range of customers. These incentives plus offerings, like Johnson Controls Net Zero as a Service, mean that the opportunity to launch a decarbonization journey has never been more attractive

Engineered Systems: What is Johnson Controls doing to better serve the needs of HVAC engineers?

Budzinski: Johnson Controls, along with our industry partners, are working closely to support HVAC engineers and technicians alike.   Regulatory changes focused on decarbonization are driving demand for residential, commercial, and industrial heat pumps.  This along with the move to cleaner, greener, refrigerants require new skills to be successful in the HVAC industry.  

Johnson Controls is leading the charge with extensive training programs designed to help both new and existing HVAC engineers sharpen their skills to be equipped on the transition.   Johnson Controls has an extensive network of training centers in the US and around the world that offer these critical engineers the opportunity to become subject matter experts in designing, installing, and servicing HVAC systems, especially those with new refrigerants.  

Also, since its inaugural year in 2021, the Johnson Controls Community College Partnership Program has been on track to donate up to $15 million by the end of 2026 to expand access to educational programs in the HVAC, fire, security, and digital disciplines. The program engages students from historically underrepresented groups and supports them in preparing for and embarking on career paths in sustainable building practices. We believe an informed and trained workforce of engineers is critical to our success and the success of our industry.