Why Foundral Is Betting on Union Labor and Midwest HVAC Expansion

A new player is entering the commercial HVAC consolidation space with a distinct focus on union labor, Midwest growth, and contractor-first values. Foundral, backed by private equity firm McNally Capital, is designed to bring together high-performing mechanical contractors while preserving their legacy and strengthening their ability to scale.

In this Q&A, Foundral CEO and Executive Chairman Jason Richards shares the vision behind the platform, what today’s buyers are really looking for in contractors, and how the company plans to grow while prioritizing workforce development, operational performance and long-term customer outcomes.

CB: What inspired the creation of Foundral? And, what sets it apart from traditional HVAC mergers?

JR: Foundral was created to bring together leading commercial HVAC companies with strong reputations and generational legacies, led by the skilled craftspeople who are essential to building the Heartland, then help them grow in exciting new ways. The name comes from “foundation” and “integral,” because nothing gets built without a strong foundation and an engaged skilled workforce.

What differentiates us is our focus on the commercial market (rather than residential), union labor, and development in the Midwest. We’re committed to delivering the full customer experience for larger, more sophisticated end markets—from design and coordination to prefabrication, installation, and ongoing service. Because companies join our platform as early adopters, owners have the opportunity to help build the future from the beginning, rather than joining late-stage. We want owners involved from day one.

The residential market is fundamentally different from the commercial market we serve. You’re serving a wide range of homeowners and decision drivers, and you have to address both behavioral and technical factors. In commercial, you’re going to the jobsite each day, not someone’s home, and the buyer is typically focused on the work at hand rather than the ancillary considerations that come with residential environments.

CB: What are today’s strategic buyers looking for when evaluating commercial HVAC contractors?

JR: We like to see service as a meaningful part of what a contractor does every day—recurring revenue, direct to owner. We also look for contractors doing consistent work for sophisticated clients, including hospitals, life sciences, data centers, and manufacturing.

CB: What should owners know before considering a partnership or acquisition with a company like Foundral?

JR: The main thing to know is that we lead with an employee-first culture. We believe in giving people the “why.” We aim to be the employer of choice, and our mission is to exceed expectations through support, compensation, growth opportunities, and advancement.

CB: Workforce challenges are top-of-mind for contractors—how are labor trends shaping Foundral’s growth strategy?

JR: There’s no question there’s a shortage of tradespeople, including pipefitters, sheet metal workers, and more. Solving that entirely isn’t realistic for Foundral, but we’re focused on helping meet the need in a few ways.

First, we have a dedicated team, led by a chief people officer, focused on recruiting and retention. We also partner with our unions to help recruit and train the next generation of apprentices and journeymen. We recognize this is still small scale, adding a few people into each company we own each year, but it does matter.

Second, even with stronger recruiting, growth requires getting the most from the workforce we already have. That means more training to improve productivity, and more investment in technology and prefabrication capabilities so teams can be more effective. One example is robotic welding. We value our people, but there simply aren’t enough welders in the trades right now. Using robotic welders can help existing teams nearly triple what they could do manually.

CB: What tips or strategies would you recommend for contractors to attract and retain skilled talent in today’s competitive labor market?

Over the last couple of decades, more high school graduates have chosen college over the trades. We want to help reframe that by showing how valuable the trades are to the future, and that skilled, hands-on work won’t be replaced by AI. The ability to build and maintain critical infrastructure will remain essential to the growth of this country and the world.

It’s also important to be present at local trade schools, communicating the value of the trades and answering questions about career paths.

CB: What are the benefits for contractors joining a unified structure like Foundral versus remaining independent?

JR: It’s a balance of personal and business benefits: monetary rewards for ownership (including equity and wealth creation), plus real advantages for employees and the company overall. Ultimately, it’s about staying competitive and profitable while letting acquired companies focus on what they do best. Foundral can handle back-office functions like HR, finance, and IT, and support the operating teams through better purchasing power, more working capital, and modernization (technology, equipment, and truck fleet).

We also want owners to sleep well at night by transferring some entrepreneurial risk, like collateralized loans and certain insurance exposures, to us. And we can help contractors expand capabilities, such as adding plumbing or building automation alongside HVAC, investing in more sales capacity, and pursuing new growth opportunities. Owners get the best of both worlds: they can retain autonomy and stay connected to their company while also owning a piece of Foundral.

CB: How do you preserve the unique culture and history of acquired contractors while scaling operations?

JR: We want companies to maintain their local culture, taking care of customers, supporting their teams and enjoying the camaraderie that comes from working together. We also want to elevate the sense of purpose by connecting their work to a broader mission.

We’re pursuing larger, more sophisticated markets where contractors can make a meaningful impact; for example, improving healthcare environments by helping create safer spaces and better air quality, and supporting the next generation of data centers that strengthen the country’s technology infrastructure. Ultimately, it’s about creating a culture of meaningful work.

CB: How can contractors ensure continuity and quality of service during transitions like mergers or acquisitions?

JR: The top priority is staying focused on the business. While the goal is to integrate into Foundral within six to eight months, maintaining service and execution comes first… and it’s okay to call a timeout along the way if needed.

We also make sure integration is handled administratively between the acquired company and the acquiring company. HR leaders on both sides work through the merger details behind the scenes. We build a one-on-one integration plan and manage it throughout that six- to eight-month period.

CB: Are there common misconceptions contractors have about partnerships or acquisitions that you’d like to clarify?

JR: Many people associate acquisition with a negative connotation, especially the idea that the acquirer will cut costs by trimming headcount. That’s the opposite of our approach. We want to keep employees, set them up to thrive and demonstrate that commitment at every step.

CB: What trends are you seeing in the commercial HVAC space that owners should be paying attention to?

JR: Consolidation is real, and it’s accelerating. In many cases, an owner’s competition has already had, or is currently having, conversations about being acquired. That matters because you don’t want to be the last one standing without a strong position in the marketplace to stay competitive. Customers want to work with contractors that are stable and well-positioned, and in a consolidated market, some opportunities can get squeezed out.

CB: What advice would you give contractors planning for long-term growth or eventual succession?

JR: If you don’t have a succession plan by age 45 as an owner, you need one. Preserving legacy is important, and there are ways to do that. Partnering with Foundral can help you carry your history, success, and name forward with more strength, all while keeping employees supported and happy. The key is finding a partner that allows you to continue leading without carrying 100% of the risk.