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HVAC business expansion to Northport reflects growing demand for technicians

Bill and Eric Morgner at the Mid-Coast Energy location. Photo / Courtesy Mid-Coast Energy Bill Morgner and his son Eric expanded Damariscotta-based Mid-Coast Energy Systems into Northport.
By Laurie Schreiber

Mid-Coast Energy Systems Inc., an energy company in the Lincoln County town of Damariscotta, has expanded to a second location 40 miles to the east in the Waldo County town of Northport in order to meet growing demand for electrification and other services.

"Our expansion into Northport allows us to fill a vital service gap left by the consolidation of smaller companies,” said William Morgner, the company’s president.

Company origin

The company dates back nearly 50 years under Bob Hardina, who bought out a well-established Damariscotta plumbing and heating company and renamed it Mid-Coast Energy Systems Inc.

In 2000, Hardina sold the company to three employees — Morgner, who has been with the business since 1983, along with Ron Russell and David Gamage. 

Two people install wires in a new construction building.
Photo / Courtesy Mid-Coast Energy
Mid-Coast has grown from four employees in 1983 to 52 today.

Last year, Morgner bought out his two partners and became sole owner.

His son Eric is the company’s vice president and has worked there nearly 20 years.

Headquartered at 33 Midcoast Road in Damariscotta, Mid-Coast has grown from four employees in 1983 to 52 today. 

“We’ve had exponential growth over time,” said Morgner. “Sales volume has doubled over the last four years.”

Technicians specialize in heating, plumbing, electrical, geothermal heating and cooling, as well as air and water quality. Facilities include warehouse and office buildings and a fleet of about two dozen trucks. 

Service lines have changed over the years.

“When I started, everything was oil, then moved to propane,” said Morgner. “Now it’s transitioning to heat pumps.”

Growing need

The expansion to Northport is designed to serve the mid-coast region and meet growing demand in a range of services, including plumbing, heating, generator installations and heat pump installations, he said. It’s expected that the second location will create new career opportunities in the area, he added. 

The midcoast area is experiencing a growing need for skilled technicians, Morgner said.

What’s driving the expansion? Eric Morgner said a service gap has been created by a consolidation of small mom-and-pop energy companies that have been bought up by larger companies.

“A lot of people are getting displaced from those jobs and a lot of customers can no longer find plumbers, electricians, contractors,” Eric said. “We looked at Northport because for years we’ve been getting phone calls from that area.”

The advantage of having a Northport site is not only to do installations but also to provide regular servicing.

“From the business point of view, we’re essentially doubling our opportunity to get into people’s houses,” Eric said.

Organic growth

The Northport location, at 820 Atlantic Highway, is a former automotive garage with enough property that provides expansion opportunities.

A worker installs wires in the ceiling.
Photo / Courtesy Mid-Coast Energy
Mid-Coast Energy’s expansion into Northport reflects customer calls it was receiving from the area.

“We’re trying to grow organically,” said Bill Morgner.

For now, Northport staff consists of existing employees — an estimator and two technicians — who live between the two locations. But the company is always looking to hire and provides on-the-job training. For the past decade, it’s also offered apprentices through the Maine Apprenticeship Program.

“We’ve go two high school students now working for us — one just graduated and is going away to trade school. We’re hoping he comes back,” said Eric. “We’ve got a technician who will turn 23, who started working for us when he was 16. He’s got multiple licenses and he’s ‘the Man.’”

Employee attraction and retention programs include health insurance for employees and their families, including dental and eye care; paid time off, disability insurance and a 6% company match in the 401(k) retirement plan.

Although demand for heat pump installations has declined somewhat in the past six months or so, they’re still a hot item. 

“We’ve got guys who all they do is put in heat pumps all day,” said Eric.

Electrification trend

The expansion reflects something of a trend in the electrification sector.

Earlier this year, SolarLogix LLC in Belfast moved into a larger, purpose-built facility to accommodate 50% to 100% per year revenue growth since the firm’s start in 2015; an increase from 30 employees last year to nearly 50 today.

Other companies are seeing similar trends.

Since 2008, Ryan Keith has grown Northeast Heat Pumps in Brunswick from a solo operation to 25 employees who install about 1,200 units per year; 60% are retrofits for customers looking to switch from fossil fuels. 

Existing HVAC companies are switching to or adding electrification products and new companies are coming online, many offering on–the-job training or collaborating with manufacturers and higher education. Over 500 heat pump installers are registered with Efficiency Maine — more than many other states.

Earlier this year, Maine was awarded $62 million in federal funds for solar energy access in low-income communities.

And there’s movement to build utility-scale battery systems — both “iron-air” and lithium-ion — to store electricity.

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