Great leadership doesn’t happen by accident. It’s built through grit, clarity, and a willingness to learn along the way. In this episode of Servant Leader’s Library, host Nicholas Paulukow sits down with David McIlwaine, founder and president of HVAC Distributors, to unpack more than three decades of leadership lessons. From taking smart risks to building teams that last, this conversation is packed with insights for leaders navigating growth, people, and pressure.
Nicholas Paulukow
Welcome back to Servant Leader’s Library, where we explore the stories and strategies behind leaders who don’t just build businesses — they build people, communities, and sometimes entire industries.
I’m your host, Nicholas Paulukow, CEO of ONE 2 ONE, your managed IT and cybersecurity firm that keeps your tech running smoother than a perfectly tuned HVAC system.
See what I did there?
Today, we’re cracking open a particularly cooler chapter. Pun absolutely intended. Joining us is David McIlwaine, founder and president of HVAC Distributors, a company he launched all the way back in 1987.
While some of us were still figuring out our locker combinations, David was already building what became a powerhouse wholesaler, distributor, and manufacturer’s rep, supplying residential and light commercial HVAC equipment across the region.
David isn’t just moving product, he’s helped shape the industry itself, serving as Chairman of the Board of North American Technician Excellence from 2016 to 2017. When the industry asks, “Is this excellent?” David often knows the answer.
Today, we’re diving into three decades of leadership in a technically evolving, high-stakes industry covering vision, people, and staying cool under pressure.
We help leadership teams build more resilient IT foundations. Curious what that looks like?
From Millersville to Leadership Foundations
Early Influences and Work Ethic
David McIlwaine
I grew up in Millersville. My father was a professor there from the late 1950s well into his seventies and even served on the board of trustees after retiring.
They eventually gave him an iPad when everything went electronic, which became someone else’s full-time job helping him use it. But he embraced it and figured it out.
Growing up, I thought I’d play college football. I spent a year at Wyoming Seminary, but when they timed me for the 100-yard dash, they rolled out the sundial. That told me it wasn’t happening.
I went to Bloomsburg, played football for a year, and then pivoted — intramural sports, refereeing basketball, student government. I found other ways to lead.
Learning Business by Doing the Work
Hajoka, Accounting, and Knowing the Numbers
During college, I spent my summers working for Hajoka, originally Fleck Marshall Corp. Coincidentally, the property where Rhoads Energy is now was one of their original sites.
I earned a general management degree, but I leaned heavily into accounting. My roommates thought I was crazy. But I always knew I wanted to be an entrepreneur, and I believed if you knew the numbers, you’d always be in a better position.
Hajoka offered me the chance to start and lead a heating department. As part of the deal, they sent me twice a week to study under a retired engineer named Bob Axe — a wizard with a slide rule. Faster than any calculator.
If someone was willing to invest in teaching me, I figured I’d gain skills I could use anywhere. It worked.
Education vs. Entrepreneurial Drive
Nicholas Paulukow
You were educated, but that entrepreneurial spirit existed before the degrees. Where did that come from?
David McIlwaine
I was always working — cutting grass at 10 or 11, running a paper route, stocking shelves at a grocery store. I think education beyond high school is less about a specific path and more about learning how to learn and figuring out who you are.
Taking the Leap: Starting HVAC Distributors
Seeing Opportunity Where Others Didn’t
After seven and a half years at Hajoka, it just didn’t feel like the right long-term fit. I cared deeply about customer service, market share, and growth, while the business was very financially driven at the time.
A friend tipped me off to a vacant warehouse in Mount Joy — a massive building left behind when Lancaster Leaf Tobacco consolidated operations. It was rough. Weeds, dust, neglected space.
I was 29, but I could do the math. I realized I could rent space at $2 per square foot and cover the mortgage. It wasn’t risk-free, but it felt manageable.
My dad, his friend Gib Armstrong, and I bought the building — and immediately discovered the roof leaked everywhere. That turned into a quarter-million-dollar reroofing project that definitely wasn’t in the budget.
That wouldn’t be the last roof surprise.
Risk, Grit, and Betting on Yourself
Why Entrepreneurs Keep Going
Nicholas Paulukow
This wasn’t a money grab. It was vision and passion. How did you push through that risk?
David McIlwaine
I had savings, but I needed bank support. I built a business plan — looking back, I was incredibly naïve.
But I think a little naïve confidence combined with preparation works in an entrepreneur’s favor. Bankers lend on character as much as numbers. They know things will go wrong.
I took a 60% pay cut and put everything on the line, including my house. But I knew I could grind. Grit matters.
My parents had it. My dad memorized the eye chart to pass his WWII physical and served with Patton’s Fifth Army. My mom never let physical challenges stop her. I was blessed with grit.
Leadership Lessons You Don’t Learn in School
From Doing Everything to Leading People
David McIlwaine
The hardest part of growth was shifting from controlling everything to leading people. That’s not something business school teaches.
A huge breakthrough for me was learning clarity — especially around expectations. I learned a framework called QQTR: Quality, Quantity, Timeliness, and Resources.
If you don’t clearly define those, frustration and conflict are inevitable.
Hiring, Accountability, and the Cost of People Decisions
The Most Expensive Mistakes
David McIlwaine
My biggest mistakes were people decisions. Hiring the wrong people or waiting too long to act.
You have to allow people to fail, but you must control the magnitude of failure. Clarity creates accountability, and accountability changes everything.
People don’t leave companies. They leave managers.
Why Leaders Need a Cheerleader
Celebrating Wins Matters
David McIlwaine
As an entrepreneur, I was always focused on the next goal. Accomplish something? Great — let’s move on.
That’s exhausting for your team. It’s demoralizing.
I learned I needed a cheerleader in the organization. Someone who could read the room and say, “We need to celebrate this.” Today, that person is our Director of HR.
Building a Business That Lasts Decades
Clarity, Culture, and the Right People in the Right Seats
David McIlwaine
The key to longevity is clarity. Starting with clear role descriptions and accountability.
Once you define roles, you can hire for behaviors, not just resumes. Behavioral interviewing reveals far more than surface-level experience.
We also invest heavily in onboarding. Every new hire goes through a scripted, week-long onboarding process designed to build clarity, confidence, and connection from day one.
People need to feel they belong.
Trust, Transparency, and Open-Book Leadership
David McIlwaine
We’ve always practiced transparency — sharing company goals, performance, and challenges.
One time, a competitor tried to poach one of our truck drivers. He stayed. When asked why, he said, “I don’t understand everything Dave shares, but the fact that he trusts me enough to share it makes me trust him.”
Trust changes everything.
Staying Grounded as a Leader
The Power of Mentorship
Nicholas Paulukow
Leadership can be lonely. How do you stay grounded?
David McIlwaine
Vistage. I’ve been a member for over three decades. The best mentors ask the hardest questions. That’s what keeps you sharp and grounded.
Final Reflections
Advice to His 1987 Self
David McIlwaine
Make the hard decisions faster.
Waiting creates pain. Acting creates relief.
One Last Encouragement
Don’t be afraid to fail. Incremental failures lead to big successes. Just don’t make them catastrophic.
Closing Thoughts
Nicholas Paulukow
Like HVAC systems, leadership works best when airflow is clear, pressure is balanced, and someone is paying attention to long-term maintenance.
Great leaders aren’t the loudest voice in the room. They’re the ones who lift others up, even when things get uncomfortable.
Stay curious. Stay courageous. Leadership isn’t seasonal. It’s always in demand.
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