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LG's Steve Scarbrough: Bringing Solutions, Earning Trust

Oct. 1, 2020
LG's new senior vice president and general manager provides insight into how his HVAC career has prepared him for this position, and how he and LG will continue to serve contractors and their customers going forward.

LG announced in September the appointment of HVAC industry veteran Steven R. Scarbrough as senior vice president and general manager of Air Conditioning Technologies for LG Electronics USA. Scarbrough brings nearly two decades of experience to his new role at LG, where he will be responsible for leading LG’s commercial, residential, and applied air conditioning business in the United States.  

Scarbrough is based at LG’s U.S. air conditioning headquarters in Alpharetta, Ga. He reports to Senior Vice President DJ Kang, who leads the LG Electronics Air Solutions division in the U.S. 

Scarbrough succeeds Kevin McNamara, who has retired from LG.

Scarbrough joins LG from Mitsubishi Electric Trane HVAC U.S., where he has held a variety of key roles over the past decade, most recently as vice president, overseeing its U.S. residential business. Previously, he was president of HVAC distributor Climatic Comfort Products. He brings strong sales leadership capability, industry experience and expertise in wholesale distribution sales management to LG. 

Contracting Business wanted to get to know Mr. Scarbrough and hear some of his thoughts about LG's mission to serve HVACR contractors. Here are his responses. We thank him for this opportunity.

Contracting Business: What do you believe are qualities that an HVAC manufacturer must have to gain and maintain the trust of its installing/servicing contractors? Respond for residential and commercial if you would.

Steve Scarbrough: Contractors need to know that the manufacturer has their back. Many times in my career I have seen the end

user suffer from a lack of response and support by a manufacturer. One of the main ways a manufacturer can earn the trust of contractors is by having established and widely accessible pre- and post-sale support structures in place. At LG, we passionately believe in contractor training. We understand that whether it’s a commercial or residential project, a contractor’s trust is earned by providing easily accessible design, installation and service training both hands-on and virtually. Manufacturers must also be prepared to support the end- user post-sale.

CB: Will your approach differ much between the residential and commercial sectors? What do you believe to be the major difference(s) between the two sectors?

SS: At my level, the approach to the market is similar between the sectors; we have established goals and objectives by sector and manage our business to achieve those. Where it starts to differ is when you break down the channels to market. For the commercial side of our business, it’s all about driving specifications through our applied rep firms. Our rep firms not only have the engineering expertise to drive LG specifications, but also work with developers, architects and contractors to assist in design-build projects as well. For our residential sector, the biggest difference I see in the channels is the scope of the project and the support each sector needs to provide to the contractor to be successful. We firmly believe in a two-step

distribution approach. We provide support to our wholesale distributors to enable them to effectively support the contractor community with product inventory, and local sales and technical support. With programs like our new LG PRO Dealer Program we provide training and incentives directly to contractors to help contractor sell, install service and support LG residential air conditioning technologies.

CB: In an arena crammed with competing products and many new customer challenges due to busy lifestyles, what do you believe to be one or more key needs of residential HVAC contractors today?

Flexibility. When I was in the contracting business, things were a bit different. I basically showed up on time and occasionally might need to make a call after 5 o’clock. Today, most consumers research products and solutions online before calling the contractor. Homeowners are expecting the contractor to be the expert guide. Using virtual tools and having ability to design, present and close the sale in one call can give a contractor an advantage as well. It is all about explaining the value of the solution to the end-user.

Today, most consumers research products and solutions online before calling the contractor. Homeowners are expecting the contractor to be the expert guide

CB: The commercial construction world is undergoing tremendous change in areas related to modular construction and other changes; in addition, HVAC systems are being called upon to provide enhanced filtration and airflow, as well as expertise, as a result of the pandemic. How is LG responding?

SS: We’ve always considered filtration and ventilation as very important to our systems. The LG solutions in the commercial space combine a number of valuable products for the optimal comfort solution. Our OAU (Outside Air Unit) paired with Multi V (VRF) system as an indoor unit provides simple pretreatment of outside air for distribution to other indoor units. Our ERV (Energy Recovery Ventilator) uses a fixed polymer core to transfer heat and humidity between supply and exhaust airstreams.

And our Packaged Rooftop DOAS incorporates inverter compressors, energy recovery, various filtration options, as well as a UV light option that integrates into the LG ecosystem of controls. Filter options include Ducted (filter boxes) and Cassette (MERV 13) units. Lastly, fractional tonnage VRF Indoor units handle smaller zones and provide individual filtration at the unit.

CB: How is LG helping commercial contracting firms who are being besieged by demands from building owners seeking new and/or improved filtration and airflow due to the pandemic? Many most likely need advice.

SS: Our sales team and applied reps are now recommending to design above the code minimum for outside air. This will create new designs or possibly renovations to the existing system due to the increased load for additional OA. Increased loads increase energy consumption, that makes Multi V (VRF) a great option to help minimize energy costs with these highly efficient systems. Building owners can also participate in our virtual speaker series called LG Connections. This series offers discussions on an array of topics to help individuals become more effective in applying and understanding our systems. Webinars are available live and recordings of previous webinars are available anytime. It’s a useful resource we’re pleased to offer our partners. 

CB: If you don’t mind tipping your hat to your last employer, what did you learn in your decade at Mitsubishi Electric Trane HVAC U.S., about one or more facets of the industry that you will apply and/or expand upon at LG?

SS:I am fortunate to have been surrounded by many great people throughout my career. There’s no doubt that without some of those individuals, I would not be here at LG. One of the most important things I’ve learned was that our industry was ready for a change. I didn’t seek out that knowledge; it just became apparent as time went on. It’s all about challenging the status quo.  Take for instance the growth of duct-free splits in the residential sector. For us at LG, it’s about taking advantage of those experiences and leveraging our talented people, great partners, award-winning products and the tremendous power of the LG brand. By doing that, we will not only expand upon some of the things I’ve learned, but also generate new and creative ways to transform the industry.       

CB: What facet of LG’s methods and philosophies drew you to the position? Where were you in concert?

SS: This is an example of “you don’t know what you don’t know.” As my conversations with LG began to get more serious, one of the areas we were most in concert surrounds the “No. 1 LG” corporate vision. That vision simply states that the goal of LG is to be recognized as the market leader in business performance and management practices. I’ve quickly come to learn that LG has great people, a strong commitment to its partners and an insatiable appetite to innovate within the category. I also appreciate LG’s culture of creating value for their customers – that’s paramount in everything the company does. I’m very excited that this opportunity allows me to build on the success LG has achieved over the past many years – particularly in launching the Multi V VRF line and growing that market share with double digit growth year over year. That, coupled with my strong background in growing duct-free split system sales, is a great combination. I’m looking forward to this new chapter and continuing the momentum.  

CBFrom your experience in distribution, what have you brought with you related to your exposure to the manufacturer-distributor-contractor dynamic that you can apply with LG?

SS:I have been blessed to be in this industry for over 25 years, during that time I’ve been exposed to the dynamics of the manufacturer, distributor and contractor relationship. As I will tell you from firsthand experience, contractors have choices in who they do business with and what products they promote. Because of that, distributors and manufactures alike need to realize that contractors do business with partners that make them more profitable and are easy to do business with. Because of my background, it is extremely important to me that LG supports an environment that makes doing business with us as painless as possible

CB: What have you found to have been most exciting and rewarding about working in the HVAC industry?

SS: Absolutely, it’s the people! It’s really like one big family. Throughout my career I have watched people rise through the ranks and reach incredible success in their own professional journey. Hopefully I’ve had a positive impact for a few, just as others have positively impacted my career along the way.