Falso moves to new site, anticipates growth

DeWITT - Falso Service Experts, LLC is moving to a new home. Richard Louise, controller and operations manager at Falso, expects the move to be completed by Dec. 31.

"The new building is a better fit," Louise says. "It will increase the company's efficiency and will allow room for growth."

The company, which does business as Falso Heating and Air Conditioning, provides heating and air-conditioning service and installation to residential and commercial customers in Central New York.

The company also provides building-automation services and energy-management systems.

General Manager Teresa Pratt says the new, one-floor, 15,000-square-foot facility at 6019 Corporate Drive in DeWitt is a "better fit" for Falso Service Experts.

"When the lease came up, we reviewed our options and decided to move," Pratt says. "The new facility will allow us to serve our customers better and allow for more productivity."

Pratt also says the less expensive rent and capacity for unproved operations and production at the new building acted as incentives to move.

The new facility will increase efficiency in the company's custom sheet-metal fabrication department. The company will have more parking as well.

Falso's existing 16,500-square-foot office is located at 5089 Whirlybird Lane in the town of DeWitt.

The existing lease with 5089 Whirlybird Realty, LLC ends Nov. 30.

The new all-inclusive, longterm lease is with Oliva Holding Company. SRG Management acted as the broker on the deal.

"Our new rent is going to result in substantial savings," Louise explains.

Louise says Falso's 55 employees will begin moving on Nov. 30 and complete the internally financed move in two phases throughout December.

The majority of the equipment will be transferred by local movers. Falso is still awaiting bids.

Adolph Falso founded Falso Tin shop in 1882. Service Experts, Inc. acquired the family-owned company in 1996.

Lennox International bought Falso's parent company, Service Experts in 2000. Falso Service Experts, LLC is currently a wholly owned subsidiary of the publicly traded Lennox International (NYSE: LII).

Richardson, Texas-based Lennox International employs 16,000 worldwide and generated annual revenues of $3.4 billion in 2005.

Lennox focuses on four key businesses: residential heating and cooling, commercial heating and cooling, service and installation, and refrigeration.

In 2003, the former family owners of Falso Heating left the company to establish a competing business, taking most of the communications department with them.

Louise was hired as controller at that point, joining 18-year veteran Pratt, who became general manager in 2002.

"We've bounced back from the transfer of management, and now we are stronger and better operated than before," Louise says. He adds that Falso retains a local presence despite the corporate ownership.

Louise says the new management has doubled Falso's residential revenues. The company is currently hiring additional commercial and residential installers.

Louise says the future of heating, ventilation, and air conditioning (HVAC) will involve indoor air quality, airpurification systems, zoning-system installations, humidification, and de-humidification.

"We want to continue to provide indoor air quality and comfort to customers and educate the public more about the associated benefits," Louise says.

Falso sells mostly Lennox, Carrier, and Train brands, including Guardian Air purification products.

The company has 8,000 active residential accounts in Onondaga County and is expanding into Oswego and Madison counties.

Small- to medium-sized businesses covering a large number of industries account for a majority of Falso's commercial-service customers. Larger commercial customers include Syracuse University, Onondaga Community College, Carousel Center, Shoppingtown Mall, and Loretto Adult Community Centers.

The company generates $10 million in annual revenue from a 50/50 mix of commercial clients and residential customers.

Since 2003, the commercial business has increased profitability by 6 percent, while revenue remained the same. Residential revenue has doubled since 2002.

Syracuse-based companies Charles Heating & Air Conditioning, Incorporated and Woodcock & Armani are Falso's main competitors.

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