READ MORE in the Phoenix Business Journal: Kitchell sells HVAC subsidiary to Pennsylvania firm, shits focus

Strategic transaction positions Kitchell to invest more deeply in its construction, consulting, and development enterprises

PHOENIX — Kitchell, a leading builder, construction manager, capital program manager, and real estate developer, has completed the sale of American Refrigeration Supplies, Inc. (ARS), its HVAC-R wholesale distribution business, to Hajoca, one of the largest privately held wholesale distributors of plumbing, HVAC, pool, and industrial supplies. The transaction closed on January 30.

The transaction reflects Kitchell’s long-term strategy to focus its resources where the company delivers the greatest value across the built environment.

“The HVAC-R distribution market has continued to evolve, and we determined the timing was right to transition ARS to an owner whose core focus is distribution,” said Wendy Cohen, president and CEO of Kitchell. “This decision allows Kitchell to invest more deeply in growing our core construction, consulting, and development enterprises, while positioning ARS to continue building on its strong legacy.”

Since acquiring ARS in 1970, Kitchell has supported the 85-year-old company through decades of growth, expanding its footprint to 34 branches and two distribution centers across seven states.

“ARS has built a strong reputation through its people, relationships, and service,” Cohen added. “We’re proud of what the team has accomplished and confident Hajoca is the right long-term home to support the next chapter of the business.”

Consistent with Hajoca’s people-focused operating philosophy, ARS will continue to operate under its established brand and be led by its local leadership team.

“ARS is a natural fit with Hajoca,” said Rick Fantham, president and CEO of Hajoca. “We look forward to supporting the team’s continued success and see them thrive for decades to come.”

About Kitchell
Founded in 1950, Kitchell Corporation is a privately held company specializing in construction, real estate development and related services. For 75 years, Kitchell has been a leader in the industry, delivering innovative solutions across the built environment. Kitchell provides a broad range of services nationwide, including general contracting, capital program and project management, facilities consulting, development, property management and more. The company is consistently ranked among the top firms both regionally and nationally. For more information, please visit www.kitchell.com.

About Hajoca
Founded in 1858, Hajoca currently consists of 450+ locally-managed locations operating under 60+ different regionally established trade names all committed to serving our customers with a best-in-class experience. Hajoca combines the scale and resources of a national company with the relationships and local decision-making of independent businesses. For more information, please visit www.hajoca.com.

Published as part of “Trading on Tariffs: The Cost Impact of Doing Business across Borders” in In Business Magazine by RaeAnne Marsh

At Kitchell, we build, develop and manage projects across diverse sectors — from healthcare and higher education to municipal and mission-critical infrastructure. Every project we deliver depends on a complex global supply chain, with materials sourced from around the world. When tariffs are imposed on key construction materials, the effects ripple through that network — influencing costs, availability and delivery schedules. These shifts ultimately determine how far our clients’ budgets can go and how efficiently we can deliver.

Brooks Rehabilitation Hospital under construction in North Phoenix.

As a Purchaser

Tariffs on commodities such as steel, aluminum, copper and manufactured components have introduced cost volatility across nearly every category of construction materials. When tariffs are levied, prices often rise sharply — not only because of the direct cost of the tariff, but because of secondary effects like constrained supply and speculative purchasing. Lead times for critical materials, from structural steel to light fixtures, can lengthen by weeks or even months.

At Kitchell, we’ve responded by adopting proactive procurement strategies. We lock in pricing earlier in the project cycle whenever possible, allowing us to hedge against potential cost increases. Our preconstruction teams continually broaden and diversify supplier networks, seeking alternatives that maintain both quality and schedule. Collaboration with trade partners has become even more essential — working together to anticipate market changes, share forecasts and identify substitutions that align with design intent. This foresight not only minimizes disruption but also supports a more resilient supply chain.

As a Vendor

From the contractor’s perspective, tariffs introduce another layer of challenge within an already tight cost structure. In a fixed-price contracting environment, there’s a limit to what can be absorbed before those increases must be shared with clients. This dynamic demands creativity, open communication and trust between all project stakeholders.

We work hand in hand with owners, architects and engineers to identify solutions that maintain value without sacrificing performance. Sometimes that means exploring alternate materials or finishes. Other times, we adjust sequencing to delay certain purchases until market conditions stabilize. On occasion, we revisit design details to achieve similar outcomes with more readily available products. While these measures help manage cost exposure, the broader truth remains: Tariffs reduce purchasing power, meaning a client’s dollar doesn’t reach as far today as it once did.

Building Resilience through Collaboration

These challenges underscore the importance of early collaboration, transparency and agility — values that are core to how Kitchell operates. Tariffs serve as a reminder that global policy decisions have very real, local consequences. They influence what we build, how we build it and when we can deliver it.

By fostering strong relationships with our clients, design partners and trade allies, we can adapt more effectively to these external pressures. Through strategic planning, thoughtful communication and continuous learning, we help ensure that even amid uncertainty, our projects move forward with purpose and precision. The ripple effect of tariffs may be global, but our response — grounded in collaboration and ingenuity — is distinctly Kitchell.