Podcast Summary: How the HVAC Industry Is Being Disrupted by LG’s US Manufacturing & Inverter Tech - Guest: Dustin Ketchem

Podcast: Service Business Mastery for Skilled Trades: HVAC, Plumbing & Electrical Home Service
Hosts: Tersh Blissett (with Josh Crouch in spirit)
Guest: Dustin Ketchem, LG
Release Date: September 24, 2025

Episode Overview

This episode features an in-depth conversation with Dustin Ketchem from LG, focusing on LG’s strategic push into the US HVAC market via domestic manufacturing, exclusive inverter-driven tech, and support for contractors. The discussion covers their move to manufacturing in Huntsville, AL, the technological edge LG brings with their proprietary inverters and compressors, and how LG is investing in both product innovation and business support for HVAC contractors.

Key Discussion Points & Insights

1. LG’s Shift to US Manufacturing and Market Independence

• LG’s Strategic Facility Expansion
  • LG repurposed their former solar panel facility in Huntsville, Alabama, to manufacturer their unitary HVAC line (CV series), emphasizing a full-scale move to American-based production ([00:00], [31:34]).
  • Quote: “We started the CV line of equipment, our new unitary line of equipment, which if you've seen the black LG split system, that's the CV line.” — Dustin ([00:00])
• Market Independence
  • LG is uniquely positioned as the only standalone full-line HVAC manufacturer in America, unlike competitors partnered with other brands ([04:06], [04:30]).
  • Quote: “The only standalone full line manufacturer of HVAC products in America. I think everybody else is in bed with somebody.” — Dustin ([04:06])

2. Cutting-Edge Inverter Tech and Heat Pump Performance

• All-In Inverter-Driven Systems

  • LG manufactures exclusively inverter-driven systems, with no single-stage or two-stage offerings—establishing a market lead ([08:57]).
  • Quote: “Everything we make is inverter driven... We're five years ahead of everybody else with, with nothing but inverters.” — Dustin ([08:57])

• Cold Climate Performance

  • Their heat pumps—specifically the LG Red system—are tested to perform at -45°F with no auxiliary heat, outperforming traditional expectations ([05:48]).
  • Quote: “At one point, Fairbanks was like, negative 45 degrees. ...With that LG Red system, no auxiliary heat. The indoor temperature was 75 degrees.” — Dustin ([05:48])

• Proprietary Compressor Advantages

  • Uses the in-house R1 rotary compressor, not sold to other manufacturers, ensuring unique reliability and lower warranty rates ([06:33]).
  • Quote: “Our compressor failure rate at LG, R1 rotary compressor, hands down, is the best in the market.” — Dustin ([06:33])

• Refrigerant Choice

  • Early adoption of R32 refrigerant, drawing from a decade of proven use overseas, whereas peers struggle with newer blends ([07:23]).
  • Quote: “R32. We made that decision early on. Something that we've had in the European market overseas for more than a decade.” — Dustin ([07:23])

3. Price Competitiveness and Lean Manufacturing

• Competitive Entry-Level Products
  • The new 16 SEER CV line is price-competitive against standard single and two-stage products due to vertical integration and focus on heat pumps ([09:30]).
  • Quote: “Our 16 SEER, which is our entry level product... is price competitive with nearly every other manufacturer’s single stage and two stage product.” — Dustin ([09:30])
• Streamlined Manufacturing
  • 95%+ of components are made by LG, reducing costs and increasing quality control ([09:30]).

4. LG’s Pro Dealer Program and Dealer Support

• How Dealers Benefit

  • Focused contractor support with customized business tools, AI and automation partnerships (like LACE AI), and workshops, emphasizing problem-solving and business growth ([11:02], [28:43]).
  • Quote: “Our job... is to go out, sit down, ask questions to the contractor, get information about what the contractor's pain points are and then provide solutions.” — Dustin ([11:02])

• Dealer Access and Revamp

  • New tools and programs launching at the Orlando Summit for dealers, with major program overhaul in progress ([28:43], [29:53]).
  • Dealers also get employee-level discounts on LG products—including TVs and laptops ([32:53]).

5. AI, Automation, and the Future of HVAC Manufacturing

• Impact of Automation
  • LG’s factories heavily use robotics and AI, leading to higher consistency, lower errors, and improved worker efficiency ([12:11]).
  • Quote: “I think what you're going to see is you’re going to see less manufacturer defects because that robot's going to be able to learn... robots aren't going to replace the humans, but... they're going to become better at what they do...” — Dustin ([12:11])
• AI Enhances, Not Replaces
  • Automation is seen as a way to make workers and processes better, not to replace humans ([12:11]).

6. Contractor-Centric Support and Product Usability

• Focus on Contractors’ Reputation

  • LG staff, including many with contracting backgrounds, emphasize dealer reputation by focusing on quick support, easy parts access, and technology that’s simple to work on ([23:33], [25:02]).
  • Quote: “Heating and air contractors are superheroes, but in some people's eyes, if you do the wrong thing one time, you become the villain.” — Dustin ([25:02])

• Tech Tools

  • Use of Bluetooth-enabled diagnostic tools for quick service and troubleshooting, reducing the learning curve, even for tech-phobic installers ([22:24]).

• Surge Protection

  • Inverter systems require power protection, and LG recommends surge protectors as standard ([21:25]).

7. Distribution Model and Flexibility

• Distribution Partnerships

  • Most LG distributors are independent “mom-and-pop” businesses, offering agility and localized decision-making, rather than a rigid corporate-direct model ([26:42], [27:22]).
  • Quote: “Working through these mom and pop distributors... gives us the flexibility. We can work with our distributors and craft any kind of program...” — Dustin ([27:22])

• Dealer Onboarding

  • Easy sign-ups through distributors or directly via lghvac.com ([28:43], [34:41]).

8. Upcoming Events and Announcements

• Orlando LG Summit
  • October 9-11: Major program and software unveilings targeted at contractors, with hands-on workshops and presentations ([29:53], [31:34]).
  • Focus on interactive learning, not traditional “slide deck death” ([30:24]).

Memorable Quotes & Moments

• “We don't sell our compressor to anybody else either. Not the one that we use in our equipment.” — Dustin ([06:33])
• “I think if you're a contractor and you're doing your due diligence and making sure you're taking care of your customers, you're putting a surge protector on there anyway.” — Dustin ([22:24])
• “You become a master at your trade, and... it becomes night and day as far as a contractor who just starts selling inverter equipment versus two or three years down the road, they don't want to sell anything else. There's a reason for that.” — Dustin ([23:35])
• “If you want to see me, you come to Tap into the Future in Savannah and you get to see Tersh, too, right?” — Dustin ([35:52])
• On being part of LG: “You get access to our partner portal, the same portal that I have access to... Our contractors have the same deals on appliances, televisions, vacuum cleaners... It's a really good time to be here, do it with some special people.” — Dustin ([32:53])

Notable Timestamps

• [00:00-04:30] – Opening discussion: LG’s history, shift to US manufacturing, the CV line.
• [05:48-07:21] – Technological innovation: Cold-weather heat pump performance, proprietary compressor, and refrigerant strategy.
• [08:57-09:30] – All-in on inverter-driven tech and position in the market.
• [11:02-12:11] – LG’s Pro Dealer program structure and focus on contractor problem-solving.
• [12:11-13:55] – Robotics and AI in manufacturing, and impact on quality and workforce.
• [21:25-22:24] – Discussion on surge protection for inverter-driven systems.
• [23:33-25:02] – Usability for contractors, easy diagnostics, and support philosophy.
• [27:22-28:40] – Distribution model and advantages of “mom and pop” partners.
• [29:53-31:34] – Orlando Summit: interactive format, major announcements previewed.
• [32:53-34:41] – Perks for dealers: product discounts, portal access, and LG’s commitment to experience.

Final Takeaways

• LG is disrupting the US HVAC market by combining exclusive, proven inverter technology with stateside manufacturing in Huntsville, AL, focusing on reliability, cost competitiveness, and contractor support.
• Contractors benefit from robust dealer support, tech tools, flexible distribution models, and the same perks as LG employees.
• Emphasis on practical innovation: instead of generic “innovation,” LG’s advances solve real field and business problems, such as cold-weather performance, easy diagnostics, and fast support.
• AI and automation are leveraged to enhance product quality and support without replacing people, signaling a pragmatic approach to digital transformation in skilled trades.

Links & Resources

• Dealer Signup: LGHVAC.com
• Orlando Summit: October 9–11, World Center Marriott, Orlando
• Follow-up questions or dealer interest: Visit LG’s HVAC Portal or connect at upcoming events.

This summary captures all major business, technological, and practical themes of the episode, with speaker quotes and clear attributions, ensuring listeners and non-listeners alike can grasp the key takeaways and future direction for LG in the US HVAC market.