In the first episode of Vertical Access, our host Michael Kremer is joined by Michael Balsamo, Senior Vice President at VDA, who brings nearly 30 years of experience in the elevator industry, including over two decades focused in the highly demanding New York City market.

The conversation explores elevator work in NYC, where elevator projects are never simple and straightforward. Michael shares a behind-the-scenes look — from page-turning specs and client wish lists to landmark buildings, modernization challenges, and the decisions that keep projects on track.

• From building landmark constraints to elevator contractor fit and client expectations, Michael explains why local knowledge and relationships matter so much in New York.
• Learn why “page turning,” scope planning, and early decision-making can make the difference between a smooth elevator project and expensive surprises later.
• Find out how technology like destination dispatch, AI, and predictive maintenance are changing not just how elevators work, but how people experience them.
• Get to know Michael a little better in segments like Up or Down and Between Two Floors — including his takes on hot dogs and hoagies, taking the stairs, glass elevators, and one big career decision.

Timestamps

[00:00] Intro

[01:00] Mike Balsamo’s Elevator Industry Background

[03:45] Building a Career in Sales, Transitioning to Elevators

[6:10] How the Industry Has Changed, Experience, and Technology

[8:50] Growth & Industry Evolution

[11:00] “Up or Down” Segment

[13:52] Consultant & Client Relationships

[22:55] Specialty Projects & Successful Projects

[27:00] Working on NYC Landmark Buildings

[29:53] The Company’s Growth & Culture

[33:30] “Between Two Floors” Segment

[38:59] The Future of Elevators & AI

[42:14] Closing

[00:00] Introduction

Michael Kremer: I want to welcome everybody to this episode of Vertical Access, VDA’s podcast, where we sit down with industry leaders and decision-makers in the vertical transportation and built environment. My name is Michael Kremer. I am the host of the podcast today.

[01:00] Mike Balsamo’s Elevator Industry Background

Michael Kremer: And today, we have Mike Balsamo. Mike, welcome. Thank you … you’re out of our New York Metro office. One of the more tenured gentlemen out of that office, but, you’ve been around at VDA for a little bit. Why don’t you, tell us a little bit about yourself, how you got started in the industry, the path you took, and how you ended up where you are at the VDA’s New York Metro office?

Michael Balsamo: Sure. Thank you for having me. Yeah. This is very nice setup that we have here. Yeah, not bad, right? Yeah, it’s not too bad. This is great. Very professional.

Michael Kremer: Thank you.

Michael Balsamo: So yeah, if we have two hours, I can discuss on how I, became an elevator expert.

Michael Kremer: We can make it three.

Michael Kremer: We’ll make it three. We’re

Michael Balsamo: Fine. Yeah. No. So this industry, a very unique industry. My dad was in the industry, and you’re gonna see that’s pretty much common. Yeah.

Michael Kremer: That’s right.

Michael Balsamo: [00:01:00] It’s multi-generational. Yeah,

Michael Kremer: sure.

Michael Balsamo: So my dad was with one company, started, right out of the military. He was with them for 54 years.

Michael Kremer: Oh, wow.

Michael Balsamo: And, I’ve been involved with the elevator industry since I’m about eight.

Michael Kremer: Okay.

Michael Balsamo: And that’s no lie. my dad used to do the dispatching, from home and whatnot, and if he was tied up, I’d answer the phone. I got to know the supers. So-

Michael Kremer: Yeah. …

Michael Balsamo: I was really bred into this business early on.

Michael Balsamo: Yeah,

Michael Kremer: you didn’t have a choice. No. you were locked in early. Yeah.

Michael Balsamo: And, during high school, spent summers, working for that firm. my dad got me in as summer help. And, I was working with the mechanics, and I admit I did not like to get dirty. But I worked on the maintenance side.

Michael Balsamo: worked through, with the repair team. And I always found myself, if a super or resident manager came in, mechanics just, they don’t want to talk. That’s not, they’re there to fix an elevator. Sure. And I always found myself backing out of the motor room, explaining to the super- Yeah … basically what we’re doing, what the repair is, and I love talking to the- Yeah

Michael Balsamo: the residents [00:02:00] managers and whatnot. I started out early on. After, after my schooling, I said, “You know what?” some of my friends were going into finance, and I was always drawn to sales. Sure. I enjoyed sales. I’m, I think I am a people person. so they were going to Merrill Lynch, and I, I said, “You know what?

Michael Balsamo: I think I’m going to go into sales, and I’m gonna do, somewhat in the finance field.” Yeah. I said, “I think I’m gonna love that.” So I went, and I studied for my Series 7 and my 63. Oh, wow. Yeah. And I remember I had to go drop off some documentation. it was in Long Island City, and it was actually right next door to where my dad worked.

Michael Balsamo: So I went in to say hello, and I sat with the owner, and I sat with the owner for about an hour- Yeah … and telling him what I, what my plans were for the future, this, that, and the other thing. And it was great conversation, very lighthearted. And I remember exiting, and my father said that he came out, and he says, I’m going to call your son and offer him a job in sales.”

Michael Balsamo: And my father, I was very close with my dad, but he was like, “Sales?” He goes, “That, he’s no sales guy.” Yeah. he can never sell.” And, he says, “No, no, I think I’m going to [00:03:00] offer him a job.” Yeah. So he offered me a job, and I said, “You know what? I’m going to try it.” finance was great.

Michael Kremer: Yeah.

Michael Balsamo: But the problem is you’re selling a product to someone who doesn’t want to be sold.

Michael Kremer: Sure,

Michael Balsamo: yeah. So it’s just, it’s hard sale. you’re on the phone constantly, and it’s like as soon as you say your name, they hang up on you. Yeah. So that was not the sales that I really was going after. Yeah, So I s- You had

Michael Kremer: girlfriends, though, where you could just call and have them hang up on

Michael Balsamo: you, Yes, exactly.

Michael Kremer: Yeah, you didn’t need that, two parts of your life.

Michael Balsamo: Yes. That’s

Michael Kremer: Good.

Michael Balsamo: Yeah.

[03:45] Building a Career in Sales, Transitioning to Elevators

Michael Balsamo: I started in sales in 1996, and I stayed with that company for 21 years.

Michael Kremer: Oh, wow.

Michael Balsamo: And, it was a great company. Yeah. family vibe, still independently owned. Yep. and I remember early on s- starting my career, operations manager sat me down and says, “If you want to make it in this industry, as a salesperson, responsiveness, don’t lie, and just always be there for your clients and you will have a career.”

Michael Kremer: Yeah.

Michael Balsamo: And I remember I took that to heart, kept it under, very close to me. Yeah. And I always followed that mantra, [00:04:00] and still to this day, I follow that. Yeah. And I’m, here I am now. It’s 30 somewhat years later. Yeah. And we just had clients out for dinner, and I just, I remember the client, and this was president of a large real estate firm in New York City, and he says, I have to hand it to you.”

Michael Balsamo: he says, “I just want to say one thing.” He says, “Mike Balsamo has been the most responsive person- Yeah … in this industry.”

Michael Kremer: Oh, wow.

Michael Balsamo: And I was- Yeah … I was waiting for some cheers. Yeah. And Bob Castellano was with me. Yeah. And I heard him say, “That’s great. Pass the salt?” Yeah. I mean, I was very proud- Yeah

Michael Balsamo: of that moment.

Michael Kremer: Right, exactly. So. We don’t want you to gloat. We don’t want you on the pedestal-

Michael Balsamo: Yeah, yeah, yeah … too

Michael Kremer: long.

Michael Balsamo: That, yeah, yeah. I wasn’t up there for more than one second- Yeah, that’s good, yeah … before he knocked me off.

Michael Kremer: Yeah.

Michael Balsamo: Um, but yeah. I mean, it was, this has been a great industry. I now have nephews in the industry.

Michael Kremer: Oh, that’s fantastic.

Michael Balsamo: Yeah. and I am a big, p- I, I love this industry. Yeah. I love the elevator industry. I also love the real estate side of it, the residential and the commercial side. Yeah. we… I’ve built up fabulous, [00:05:00] such strong relationships over 30 years.

Michael Kremer: Yeah.

Michael Balsamo: And it’s, I’ve never lost a client.

Michael Kremer: Yeah.

Michael Balsamo: I might have lost a job, but the client’s always there. Yeah. And, I always try to see them and get them out and, go f- go for lunch or a dinner. And, it’s, we don’t even talk, we don’t talk elevators.

Michael Kremer: Yeah.

Michael Balsamo: It’s like- Yeah … I know so much about them. it’s 30 years relationship.

Michael Balsamo: Yeah. And I think that’s what makes New York City so unique. I don’t know if that happens anywhere else.

Michael Kremer: Sure.

Michael Balsamo: And here in New York City, it’s still, it always has been, and I think it always will be relationship driven.

Michael Kremer: Yeah.

Michael Kremer: Well, I think that’s kinda what defines-

Michael Balsamo: Yeah.

Michael Kremer: I mean- … this part of the, the world- Yes

Michael Kremer: and New York. Yes. And what makes New York so unique, not only just in the US, but in the world. Yeah. Yeah. I

Michael Balsamo: mean, listen, you have to do a good job for them ’cause if you don’t, you’re done.

Michael Kremer: That’s also New York, right? So that is also New

Michael Balsamo: York

Michael Kremer: City. So you got to… So there’s something to be said about that.

Michael Kremer: Yeah. Yes. and that’s really interesting. And w- so you said, you started at 8 and 30 years, so you look great for 38. I just gotta tell you. Ah,

Michael Balsamo: thank

Michael Kremer: you. You bet. Thank You got me on that one. In that 30 years, you’ve, [00:06:00] 30-plus years, you’ve seen stuff. Talk about, just take a step back th- this industry- What are those

Michael Balsamo: trends?

[06:10] How the Industry Has Changed, Experience, and Technology

Michael Balsamo: this industry has evolved so much-

Michael Kremer: Yeah …

Michael Balsamo: over 30 years. And honestly, this is the only industry I really know, so I can’t speak of other industries. But, from the company’s technology on how they monitor the mechanics performing maintenance, from the buildings, from the application, everything has just rapidly evolved.

Michael Kremer: Yeah.

Michael Balsamo: And it’s happened so quickly. And the problem is it was, I think it was a struggle for the industry to keep up. you have to realize older elevators, which I’ve saw a lot of-

Michael Kremer: Yeah …

Michael Balsamo: they were carbon contact. They were such simplistic controllers. Yeah. And it, it was basically mechanic would walk in, they can actually see the contact that was broken- Yeah

Michael Balsamo: and fix it. They were repair people.

Michael Kremer: yeah.

Michael Balsamo: Yeah. Today, it’s technicians, You, it’s computerized technology that if that mechanic who walked in was able to fix an elevator and walked into a newer system now, he’d retire. it’s just- Yeah … it’s two different types of mechanics.

Michael Balsamo: And I think that [00:07:00] crossover was very rough because you have to realize back in the mid-’90s to early 2000s, that’s when a lot of the modernizations were occurring. We were taking out the older equipment-

Michael Kremer: Yeah …

Michael Balsamo: putting in the newer equipment.

Michael Kremer: Yeah.

Michael Balsamo: But you had that one mechanic who was used to the older equipment, but now had newer equipment on his route.

Michael Balsamo: So it was like they were confused. They had to learn and adapt to that equipment.

Michael Kremer: Yeah.

Michael Balsamo: they had to be more savvy on the technology front.

Michael Kremer: Is it better or worse, or is it just different? in that sense, the, that, that change from more of that more mechanical to the more electrical, is it just, d- do, are

Michael Balsamo: there pluses and minuses?

Michael Balsamo: So believe it or not, one, one of the former owners of VDA, Tom Stack-

Michael Kremer: Yeah …

Michael Balsamo: who passed, God rest his soul, he, and, he always said, “Keep it simple.” He says, “Give me, a relay logic controller any day of the week.”

Michael Kremer: Yeah.

Michael Balsamo: but again, you have to evolve. Sure. And so did the controller companies. Yeah. And that technology’s evolved with it.

Michael Balsamo: I think there’s so many f- I, me personally, I think there’s so many fail-safes in elevators today, it might be an overkill.

Michael Kremer: Yeah.

Michael Balsamo: But, again, you need that [00:08:00] technology to evolve ’cause it’s not just gonna stop now in the motor room with the controllers. It’s gonna go into the hallways.

Michael Balsamo: It’s gonna go into DD, it’s, destination dispatch. Yeah. So it’s, again, elevator usage has become now an elevator experience.

Michael Kremer: That’s the word for maybe the last- 10, 15 years and it’s gonna be the word going forward. Everything’s an experience, right? Yes. it’s just not, you don’t just- Everything’s a

Michael Balsamo: theme park

Michael Kremer: now

Michael Kremer: you don’t just go to the gas station and get coffee anymore. You go into coffee shops and you, literally they design it after an experience.

Michael Balsamo: Yes.

[08:50] Growth & Industry Evolution

Michael Kremer: It, and it permeates throughout from coffee shops to elevators, right? Yeah. I mean, it’s different. What are all, what are some of the other things that you’ve seen in that time?

Michael Kremer: So yeah, some changes from more of the mechanical to, more the electronic. beyond maybe even the elevator, just how we go about business, what customers expect per se, or even how we go about our business, from VDA or the likes of, companies like ours in the industry.

Michael Balsamo: so, so the easy answer there is as far as VDA, I’m here [00:09:00] nine years.

Michael Kremer: Yeah.

Michael Balsamo: And we’ve evolved and changed rapidly.

Michael Kremer: Yeah.

Michael Balsamo: And I, I don’t know if our competition has done that, and that’s not to bad mouth anyone. Yeah. Just I think we’re at the forefront of that.

Michael Kremer: Yeah.

Michael Balsamo: I, I, think the expertise that we have now working for us, the, it’s a vision for the next 15 to 20 years.

Michael Kremer: Yeah.

Michael Balsamo: I think our hire is becoming younger and younger. Yeah. I think there’s, definitely forward thinking. I know there’s forward thinking. Yeah. And I just, I don’t see… Listen to, someone once told me, “Evolve or die,” and we’re evolving.

Michael Kremer: We’re evolving,

Michael Balsamo: yeah. And, again, it’s just, I don’t see the competition doing that.

Michael Balsamo: So VDA as a whole is definitely really pushing forward on that front. Yeah. And again, as far as, what clients expect, they expect, a project with no change orders-

Michael Kremer: Yeah. …

Michael Balsamo: u- under budget-

Michael Kremer: Yeah …

Michael Balsamo: a- and below s- below schedule.

Michael Kremer: Three things that happen all the time as

Michael Balsamo: far as- Oh, yeah … always. Always.

Michael Balsamo: 100% on all of them. There’s never any problems on these types of jobs. Never any problem with any of those,

Michael Kremer: [00:10:00] right? Yeah.

Michael Balsamo: but again, again, it’s, a, like we just said, passenger experience. Yeah. It’s client experience.

Michael Kremer: Yeah.

Michael Balsamo: it’s how we perform our jobs.

Michael Kremer: Yep.

Michael Balsamo: That’s an experience that, that the client wants to make sure is, a good experience.

Michael Balsamo: Yeah. whether it’s an owner’s rep, an owner of a building, a management company, they all work for someone and- Yep … they wanna make sure, we should make sure that if it’s VDA’s name attached to it, that’s a seamless project. So again, this is like a partnership between us, the management company, owner, and the contractor.

Michael Kremer: Yeah. Yeah. I wanna dive into some more of the client and consultant relationship here that we have. But before that- I think everyone wants to learn just a little bit more about Mike Balsamo. We’ve heard a little bit about what, your background and everything, but I got some real personal questions that we get to ask you here.

Michael Kremer: This is a

[11:00] Up or Down (Rapid Fire Segment)

Michael Kremer: segment called Up or Down, and you only get to answer with an up or a down. Up is yes, down is no. [00:11:00] You really don’t get to explain yourself. I’ll, determine whether you gave the right answer or not, okay?

Michael Balsamo: We get the results today?

Michael Kremer: Yeah, they will, we’ll- Okay, great … we’re gonna mail them in and we’re, you know- I’ll mail them in.

Michael Kremer: Yeah, we’re D- some DNA technology. Okay, sure. We’re gonna see, yeah. okay, up or down?

Michael Balsamo: Up.

Michael Kremer: Oh, yeah. I’m kidding. I’m kidding. You, you- Sorry … not that bad. Not bad. practice. Yeah. Up or down, this podcast is going well. Up. Up, yeah. a hot dog is a sandwich. Down. Ooh, stuck. It’s improper to put on your socks and shoes sock, shoe, sock, shoe.

Michael Kremer: Down. So it’s… Yeah, that’s the way you’re supposed to do it?

Michael Kremer: Not two socks and then two shoes?

Michael Balsamo: Of course. That was sarcasm. Yes.

Michael Kremer: Okay. All right. We might have to edit that one out. I don’t- We wanna maintain clients after this one. You would take a superpower even if it had a downside?

Michael Balsamo: Up.

Michael Kremer: Okay. I think you have all sorts of superpowers.

Michael Kremer: I just want you to- I do. I do. Yeah, you [00:12:00] just… I think that you were able- I

Michael Balsamo: refrain from using them.

Michael Kremer: Yeah, you were able to answer that out of experience. That’s what I liked about that one. Stairs are better over elevators when it’s under three floors.

Michael Balsamo: Down.

Michael Kremer: Okay. Okay. glass elevators make the ride better.

Michael Balsamo: Up.

Michael Kremer: Okay. Okay. you get impatient when elevator doors take too long.

Michael Balsamo: Up.

Michael Kremer: and the, one I always like to ask is, you’ve critiqued an elevator out loud in public.

Michael Balsamo: Up.

Michael Kremer: Up.

Michael Balsamo: Who hasn’t? If you’re not in the elevator, I’m sorry.

Michael Kremer: Yeah, exactly. yeah, no, that’s great. And,

Michael Balsamo: I j- I do that everywhere I go.

Michael Kremer: Do you do that everywhere you go? I’m sure the family loves it. They’re like, “Oh.” We

Michael Balsamo: were on a cruise three years ago- Yeah … and I’m like, “Look at what they use for the door.” And everybody’s “What they use? What’s going on?”

Michael Kremer: All right, we gotta go up flights. Mom, Da- … the k- b- kids, let’s go around.

Michael Kremer: We’ll walk. Dad will take the elevator. It’s fine. It’s 12 stories. It’s fine. It’s fine. Keep walking. no, we, love that just, to kinda just, let people see [00:13:00] who you really are. yeah. I didn’t ask you about your favorite cereal or anything like that. A hot dog

Michael Balsamo: is not a sandwich. We all know that, right?

Michael Balsamo: Y-

Michael Kremer: what, what- It’s not debatable … what constitutes a sandwich? Bread and meat.

Michael Balsamo: It’s, yeah, and shape.

Michael Kremer: what… is a Philly a sandwich?

Michael Balsamo: No, it’s a Philly.

Michael Kremer: You don’t see it.

Michael Balsamo: Really? A hoagie.

Michael Kremer: A hoagie? Yeah. A hero. That’s not a sandwich?

Michael Balsamo: No.

Michael Kremer: What about a taco?

Michael Balsamo: That’s not a sandwich.

Michael Kremer: Soft shell.

Michael Balsamo: Soft shell.

Michael Kremer: Okay. So you were mentioning with the, trends and the, partnership, right? How, they, the clients expect more, right? But as relationships evolve, as the industry evolves, so does the relationship between the client and the, the consultant, right? let’s talk about that for a second.

[13:52] Consultant & Client Relationships

Michael Kremer: let’s talk about that kind of not ideal client, but what the client can do that’s ideal to make the project work a little bit smooth. what are two or three things that you would be like, “All right, [00:14:00] hey, things work better if you can do this”?

Michael Balsamo: Okay. So I think what makes VDA- stand out is- Yeah

Michael Balsamo: we’ve been down every pitfall. We know what causes those pitfalls.

Michael Kremer: Sure.

Michael Balsamo: So I, I think the client should listen. If you’re retaining VDA-

Michael Kremer: Yeah …

Michael Balsamo: listen to VDA. So we know where these pitfalls can occur. And a pitfall to me is, extras o- on the job as far as change orders or, elongating the start date, commencing or starting a project.

Michael Balsamo: You have to realize o- once you sign a contract with VDA, for New York City, th- this is basically about a 12-month process before there’s actually boots on the ground and people taking elevators out of service. Yeah. This, there’s a lot of upfront work to do. Yeah There’s work by others. So they have to let us guide them- as to what those milestones should be.

Michael Kremer: Okay.

Michael Balsamo: So they, we’ve actually made the system totally foolproof.

Michael Kremer: Yeah.

Michael Balsamo: I don’t know if I should divulge what that system is. Yeah. And, we’re s- sharing our- We’ll save that for a second episode. Yeah … we’re sharing, our secret sauce. Yeah But, again, it, again, this is a [00:15:00] three-way partnership. It’s us, the owner-

Michael Kremer: Yep …

Michael Balsamo: and the contractor.

Michael Kremer: Sure.

Michael Balsamo: If you have a bad contract, doesn’t matter what happens on the front end-

Michael Kremer: Yeah …

Michael Balsamo: that’s gonna be a bad job. Yeah. So let us guide you on the contractors that are the right fit for a job. It depends on the job.

Michael Kremer: Yeah.

Michael Balsamo: some clients have relationships with contractors, “I wanna use them for this job.” I’m like, they’re too small. This is too big of a job,” or vice versa. It might be, you know-

Michael Kremer: Yeah …

Michael Balsamo: might be a contractor that’s too big for this small job, and it could be very too big- for a job for a contractor that’s- Yeah

Michael Balsamo: very small. So we’re not saying- Not to use them ever- yeah … just not for this application. This

Michael Kremer: might be the best application for this

Michael Balsamo: as well. Correct. Yeah, that’s right. page turning. I’m a big proponent of we’ll get you covered for a draft specification for a modernization- Okay

Michael Balsamo: on existing installation. we’ll have you covered for codes and obsolescence and old equipment and everything that’s gonna be retained. We’ll list everything, but I wanna do page turn- turning with you, the owner, so you understand what the scope is fully.

Michael Kremer: Yep.

Michael Balsamo: And then I wanna talk about your wishlist.[00:16:00]

Michael Kremer: Yeah.

Michael Balsamo: Security, interface, turnstile. things that, that go above and beyond-

Michael Kremer: Yeah …

Michael Balsamo: that cannot get missed now, because if they’re missed, that’s gonna cost the owner a lot more money- on the back end of the project-

Michael Kremer: Yes …

Michael Balsamo: doing integration. Yeah. So we have clients that are like, “I don’t need a page turn.”

Michael Balsamo: I’m like, “You do,” and I’m adamant. Yeah. I don’t mean to come off rude with them, but I’m like, “You have to do this.” And afterwards they’re like, I saw a lot of value in that.” It’s only 45 minutes.

Michael Kremer: To d- take a step back. Describe page turning for those who may not fully understand exactly what you’re talking

Michael Balsamo: about.

Michael Balsamo: I, we, so we go through the entire spec. Yep. We talk about from very high level what we’re doing with your hoist machines. Yep. Are we re- retaining them? Are we changing them? What are we doing with your controllers, your door equipment, cabs, fixtures? What the client can expect- where the contractor’s gonna be working floor or working from on each floor.

Michael Balsamo: Yeah. How long? staging. So we go through that. Then we also go by work by others, because that’s something that’s not going to be carried in the base bid. It’s work by others, not the elevator contractor. Got it, yeah. And that’s something that halfway through the job, [00:17:00] clients used to call me up, or Rob or some- my partner, somebody in, New York City.

Michael Balsamo: He’d say, “We never even knew about work by others.” Yeah. it was in the specification.”

Michael Kremer: Yeah.

Michael Balsamo: So that’s why I wanna do these page turning meetings with all the clients so they can see what the work by others is, understand the scope, and then say, “Okay, I was just talking to the tenants. They want, card access.

Michael Balsamo: They want, lobby boost. They wanna upgrade the fixtures and make them a little bit different.” So again, those are the wishlist items- Yeah … that we’ll discuss during a page turning, so we have that entire project now covered- Yeah … for, in whole. Yeah. 100%.

Michael Kremer: Yeah.

Michael Balsamo: And it makes for a, a, smoother project and a, better project at the end of the job.

Michael Kremer: Yeah. it feels like at the very least, if even if everything was as expected, now you know.

Michael Balsamo: Correct.

Michael Kremer: Now, you, sleep a little bit better not wondering, right? We

Michael Balsamo: told you about that. We- Correct.

Michael Kremer: Exactly. And,

Michael Balsamo: and that’s huge. And I don’t like to say, somebody once said, “Oh, that’s a co- cover your ass meeting,” Yeah. CYA. Yeah,

Michael Kremer: yeah,

Michael Balsamo: And I said, that- ” Yeah … it is, but actually, I want that project to go smooth because we’re best in class. That’s what our job is- Yeah … to, to [00:18:00] advise- those clients what they are. And if it’s a, if it’s a good experience with the client, guess what? That’s our quality job, and they’re gonna say, “You know what?

Michael Balsamo: Let’s use VDA again.”

Michael Kremer: yeah.

Michael Balsamo: Okay? if we don’t do it and it’s missed and we just say, “It was in the spec. You missed it, owner-” Yeah … they’re gonna be upset with us, and it’s not gonna sit well with them.

Michael Kremer: one thing I’ve always really appreciated talking to the folks and working with the, likes, folks like yourself and your, the team is the You can use the word passion, but just the amount of care and attention that goes into it.

Michael Kremer: Because when you work in a professional services like we do, we just happen to be in the vertical transportation industry, right? And especially on the consulting side. It’s such a, our products are our people, or our people are our products is a better way of saying it. Correct. And we want our products to shine.

Michael Kremer: And in, in this case, the product takes a very deep, heartfelt meaning into each project, right? And so they see their name, they see our moniker, they see that tied to that, and there, there’s, a special meaning to that, right? where you [00:19:00] say, “No, I don’t, want this project to go awry,” not only just for you, but for me.

Michael Kremer: So the fact that we had that skin in the game, I always feel like that just is, that’s that confidence that the customer needs is like we, we, take pride in our work, too. Yes.

Michael Balsamo: Yes, definitely.

Michael Kremer: Yeah. So we had that kind of on the front end, like kind of the ideal We’ve all had situations where things didn’t go well.

Michael Kremer: And, there’s always probably a little bit on both sides, but where is it on the, on maybe on that client side that they can make sure that they’re doing or not doing? “Hey, as a client, try to avoid these things to make your overall project go well,” right? So of course we want them to just sit in on those and not avoid those things, possibly listen.

Michael Kremer: But, are there any things that you can think of that you would say, “Hey, try to avoid doing these things and that’ll make your project overall smoother, better,” get your… They would get the best bang for their buck.

Michael Balsamo: Yeah. Listen to us. Yeah. I’m being honest. Yeah. it, it’s such an easy to…

Michael Balsamo: I, again, I, I remember selling, selling a job to a [00:20:00] client, and as they’re telling me my, our propo- VDA’s proposal’s approved, I went, “This job’s gonna be a disaster.”

Michael Kremer: Yeah.

Michael Balsamo: And I should have walked away, and I didn’t.

Michael Kremer: Yep.

Michael Balsamo: I sold. And a- and I’m living with it now. Yep. And it’s just there’s, multiple call…

Michael Balsamo: They’re not paying attention on the calls. They didn’t wanna do page turning.

Michael Kremer: Yeah.

Michael Balsamo: And just like I mentioned with the work by others, that just came up now and w- we’re still signing on a contractor, and they’re like, “We didn’t know about the work by others.” And I went, that’s the page turning I wanted to have with you to discuss this.”

Michael Kremer: Yeah.

Michael Balsamo: And they’re we’re gonna prepare the contract.” I’m like, that’s not the norm.”

Michael Kremer: Yeah.

Michael Balsamo: Usually the contractor will prepare an AIA, send it to us. We’ll review it for the pertinent information, you know- Yeah … make sure our documents are referenced, out of service times.

Michael Balsamo: Then it goes to them for legal review.

Michael Balsamo: Legal counsel, goes through terms and conditions and whatnot. He’s “No, we’re gonna make it.” So now he’s making his own contract up. It just, it muddies the water- Yeah … and makes the project… ‘Cause now the contractor’s not used to this. His attorney has to review it.

Michael Kremer: Yeah.

Michael Balsamo: It’s gonna [00:21:00] go back. So what they took was a two-week process, and it’s now seven and a half weeks of going- Oh, man … back and forth.

Michael Kremer: Yeah.

Michael Balsamo: Now he’s up… The client’s up against the gun ’cause he’s not code compliant for 2027. So he’s supposed to be started with this job already- Yep … and he’s not. He’s nowhere near he’s even starting.

Michael Kremer: Yeah.

Michael Balsamo: So that’s… It’s gonna make for a proj- a, a problem down the line-

Michael Kremer: Yep …

Michael Balsamo: which is probably gonna ensue penalties, which he’s gonna have to pay for.

Michael Kremer: Yeah.

Michael Balsamo: So again, listen to us. We understand- Yeah … the design concept. We know where the pitfalls are, and it’s usually on the front end. Yep. It’s usually during the contracts.

Michael Balsamo: It’s usually during selections. So- We’ll guide you as best as possible. Yeah. If you listen to us, we’re gonna make f- we’ve been down this road before. Yeah. Listen to us, it’ll make for a smooth project.

Michael Kremer: that’s what they’re paying you for.

Michael Balsamo: Correct.

Michael Kremer: they, they… get your money’s worth.

Michael Kremer: That’s what- Yes … that, my words, not yours. But that’s- that’s what I’m hearing, right? That’s exactly

Michael Balsamo: what- It’s like- Get your money’s worth.

Michael Kremer: Yeah, get your money’s worth.

Michael Balsamo: That’s what they pay us for.

Michael Kremer: Yeah.

Michael Balsamo: Honestly, from- Yeah … on, on the whole, we do turn out a lot of good projects. [00:22:00] Yeah. I’m involved with some now, which I’m hoping at the end will be, like, my flagship, which is-

Michael Kremer: Yeah

Michael Balsamo: the newest of technology. New machines, PMAC, so it’s like the full boat- Yeah … destination dispatch. which, is coming into the building. It’s not there now, so- Yeah … watching them transform this, commercial building into this DD high-ri- it’s gonna be a beautiful project. Yeah. That’s going to be mine, and hopefully on, on next year’s podcast-

Michael Kremer: Yeah

Michael Balsamo: I can talk about that one and say- Yep … “That’s

Michael Kremer: it.” That’s

Michael Balsamo: it. The rest of all, and I hate to use this term, plain vanilla. Yeah. it’s really plug and play. but it’s, more… It’s not how the actual project turned out. And again, when I say plug and play, you’re taking a machine out, you’re putting a new machine in.

Michael Kremer: Yeah.

Michael Balsamo: You’re taking the door equipment out, putting door equipment in. Same with the controllers.

Michael Kremer: Yeah.

Michael Balsamo: where I get very, juiced up or amped up- yeah … is on the cab’s cosmetics. what some of these clients can pick. So-

Michael Kremer: Yeah …

Michael Balsamo: typically there’s a cab allowance of 30,000, 35,000.

Michael Kremer: Okay.

Michael Balsamo: I’ve had a job on the Upper East [00:23:00] Side.

Michael Balsamo: The final cost was $90,000 for a cab.

Michael Kremer: Wow.

Michael Balsamo: Lot of money.

Michael Kremer: Lot of money.

Michael Balsamo: Beautiful

Michael Kremer: cab. Yeah.

Michael Balsamo: It took two years to pick this cab.

Michael Kremer: Okay

Michael Balsamo: Two years. So again- A

Michael Kremer: particular client with a- Yes … with a particular taste.

Michael Balsamo: Correct.

Michael Kremer: Love it.

Michael Balsamo: Upper East Side- Yep … so they had the money for that- Sure … type of cab.

[22:55] Specialty Projects & Successful Projects

Michael Balsamo: but yeah, that’s something that, that really honed in on me, was a specialty project, as far as the cab selections- Yeah … and the whole design process of that. couple of, projects, I can name one is, one up on East 87th Street. I do remember old beautiful wooden cabs. Yeah. they hired someone to come in, and they were supposed to sand down the finishes of the cab.

Michael Balsamo: Yeah. They put a hole right through the cab. Oops. And, that was a pain project- Yeah … but I was there- Yeah … for them- Yep … and we redesigned new cabs, and at the end they were so appreciative. And I… And again, those are the projects that I like, is when the client really appreciates our interaction, our involvement-

Michael Kremer: Yeah

Michael Balsamo: and, and VDA’s involvement, [00:24:00] Yeah.

Michael Kremer: Yep.

Michael Balsamo: And it’s great to hear, “I couldn’t have did this without you guys.”

Michael Kremer: Yeah.

Michael Balsamo: and that’s really, I love hearing stuff like that.

Michael Kremer: We often talk about, what the results of our job is, right? it’s like when your phone doesn’t ring, you’re like, “It’s working.”

Michael Kremer: Great. It’s great.

Michael Balsamo: It’s perfect.

Michael Kremer: Perfect. We did our jobs. Hopefully… and that’s… It’s, an interesting thing because the elevator, the vertical transportation, the escalator, doesn’t matter what it is, when it’s working, nothing. Yeah. When it’s not, everything.

Michael Balsamo: Yeah.

Michael Kremer: Yeah. and there, there’s something there.

Michael Kremer: And like you said, I can only imagine in, in the New York area that, the bell gets rang just a little bit louder and, a little bit quicker, and so you gotta be able to make very fast- It’s very loud … very-

Michael Balsamo: And it rings quickly- Yeah. … as soon as there’s a problem.

Michael Kremer: As soon as there’s a problem, yeah.

Michael Balsamo: but also, watching the technology evolve, that’s another thing. Yeah. what’s going on, on- Sure … in the motor rooms. I started when they were using single speed machines- Yeah … that stopped on the brake- Yeah … notorious for being off level. DC [00:25:00] controllers, obviously DC, direct current- Yeah

Michael Balsamo: that’s been, omitted in New York City- Yeah … eliminated, so now everything’s alternating current. Yep. watching that transition, ripping out those older elevators, going with PMAC- Yeah … permanent magnet AC gearless machines- Yep … that’s the newest technology, the newer controllers. a- and obviously, like I said, all the fixtures, and now all these informational displays that everyone wants to put into their, cabs.

Michael Balsamo: Yeah. they’re only there for, riding that elevator for four or five seconds, but they wanna know exactly what’s going on in the world- Yeah … in those four or five seconds. just watching everything evolve, I think it’s, exciting for me.

Michael Kremer: A little bit later we’ll ask you what in the future, right?

Michael Kremer: But right now what we’re seeing is we’re seeing, you mentioned it there, an attention span of people that is shortening. you-

Michael Balsamo: Don’t exist.

Michael Kremer: the only thing that works are the long form podcasts anymore, right? Yeah. And, and for some odd reason tho- those are actually…

Michael Kremer: But everything else is six seconds or less. Or maybe t- it just, I haven’t found [00:26:00] interest. Flip through it. Clip. It’s a clip, right? It’s a clip. And so that’s what you have. You have clips when you, can ride these. And that’s how the, today’s world is finding its way in something. And I’m gonna say as simple as an elevator, not the system itself, but just the, for the user experience.

Michael Kremer: You used to go in- Yeah … door shut, you feel goofy for a second, they open up and you’re in a different spot. It’s like magic, right? Yeah. But now, oh my gosh, we can’t inconvenience you for 10, 20 seconds with a, with silence in your el- Phone might not work in there, what am I gonna do, right? That’s,

Michael Balsamo: But you can watch 1,000 six-second clips and- Exactly

Michael Balsamo: be totally pacified.

Michael Kremer: So yeah, it’s- Makes no sense. yeah. one of the things that’s interesting about New York City is there are landmark projects, right? Yes. And then there’s landmark status. And we do things, VDA, we do things with those. Just talk a little about that process and the projects that maybe you’ve, experienced or done stuff with on.

[27:00] Working on NYC Landmark Buildings

Michael Balsamo: there was… Th- there’s a lot of landmark buildings-

Michael Balsamo: i- throughout the City of New York, and it’s either an interior landmark or an exterior or both. Yeah. those are like the most difficult jobs. There’s an [00:27:00] architect involved- Okay … because they have to vet all the material coming in. So even with cabs, if that’s like an historical lobby which has now been landmarked, lobbies flow into elevators, so everything, anything and everything that you’re putting into that elevator-

Michael Kremer: Yeah

Michael Balsamo: if it’s being, it has to be replicated 100%- Yeah … as far as material, cast. w- we were involved, I was involved with a project where we actually, we had to r- refabricate or fabricate cast fixtures. this industry hasn’t used cast in 100 years. Yeah. everything’s now is muntz or stainless steel.

Michael Balsamo: yeah. it’s like an alloy. Th- we had a, these were heavy cast. We had to find a company that did it, and it was one company down south which we utilized for this project. But it’s obviously the price was almost double for the fixt- Yeah … I think actually triple for the fixtures.

Michael Balsamo: Wow. But that’s what they would, that’s what it called for. Yeah. And, and those are the very hard type projects that you have to, live through. and you have to have passion for it, because if you don’t have passion you’re not gonna make it through that project- Yeah … ’cause it’s so much [00:28:00] interaction, not only with the client but with the architect.

Michael Balsamo: and a lot of these older machine, basement drum machines-

Michael Kremer: Yeah …

Michael Balsamo: so y- if it’s a landmark building and you wanna put that machine on top and you wanna raise the roof a little bit-

Michael Balsamo: that’s not happening. Yeah. So you have to figure a way to fit that machine in the basement. You have to make sure your clearances with the hoist ropes in the back of the cab, you’re not cutting any of those cabs down.

Michael Balsamo: So again, it’s, it’s, there’s such intricate- Yeah … intricate jobs-

Michael Kremer: Yeah …

Michael Balsamo: where we need to cross that t- we need to cost that correctly on the front end-

Michael Kremer: Yeah …

Michael Balsamo: because there’s so much more interaction on VDA’s side.

Michael Kremer: Yeah. That’s interesting, and that’s not something that you see anywhere and everywhere, but- But it’s-

Michael Kremer: more prevalent to New York, probably- Yeah … than in any other spot, right? Yeah, maybe

Michael Balsamo: Boston.

Michael Kremer: Yeah, Boston. Sure.

Michael Balsamo: Boston too.

Michael Kremer: these more n- Eastern based larger cities is where- Yeah … you’re gonna see some of that.

Michael Balsamo: Yeah. I was just with, I was just up in Boston and it was amazing. They have, these four brownstone buildings.

Michael Balsamo: Yeah. At eye level, maybe a little higher, look like old Boston.

Michael Kremer: Yeah.

Michael Balsamo: And right on top of it they put a 60 story building. So I was [00:29:00] just… That c- that was wild ’cause it reminds me of the Hearst Building on 57th Street. If you take a look at that- Yeah … the foundation of the Hearst Building is original from when it was erected.

Michael Balsamo: And they wanted to do a 60 or 70 t- 70 foot tower on top of that- Yeah … which they did, but they kept the actual original building as the base- Oh, yeah … and they built on top of it.

Michael Kremer: Yeah.

Michael Balsamo: So tho- those are just unique buildings that-

Michael Balsamo: that I love to stare at and marvel, you

Michael Kremer: know? yeah.

[29:53] The Company’s Growth & Culture

Michael Kremer: Being in New York and in being that VDA is the original, Van Dusen and Associates, VDA portion of it is New York based, right? But in your 30 years, three-fourths plus the existence of VDA, you’ve seen changes in the industry and you’ve even seen them within VDA itself. what does that look like?

Michael Kremer: just in terms of from where you sat as a young eight year old working at VDA and, in the last 30 years, what have you seen for VDA and how we’ve grown domestically, internationally, and how has [00:30:00] that helped benefit, change the way you guys do business one way or the other?

Michael Balsamo: that’s a great question.

Michael Balsamo: I, I was

VDA’s Growth & Culture

Michael Balsamo: worried about our growth.

Michael Kremer: Oh, interesting. Yeah. Why?

Michael Balsamo: I, try to name a lot of companies that, that, that grew as fast as we did- Yeah … and still held it together as far as quality-

Michael Kremer: That’s fair …

Michael Balsamo: and employees.

Michael Kremer: Yep.

Michael Balsamo: And I I can speak for New York City, we have the high- one of the highest retention rate- Yeah

Michael Balsamo: not only with employees, but with clients.

Michael Kremer: Yeah.

Michael Balsamo: And we’ve grown. We’re at now over 500 employees. Obviously we are all over the globe now. Yeah. But it’s still VDA New York City as far as my client’s concerned. Yeah. They haven’t seen that change-

Michael Balsamo: which I’m glad, but there’s so much depth to the organization-

Michael Kremer: Yeah

Michael Balsamo: which means if that client should happen to have a building out in California-

Michael Kremer: Yeah …

Michael Balsamo: guess what? I’m there for You if you have one in Dubai, I’m there for you.

Michael Balsamo: So it’s good to use that depth as an advantage when we need to.

Michael Kremer: Sure.

Michael Balsamo: But, I, I, just know me [00:31:00] and my partners in New York City, we keep on preaching quality, quality- Yeah

Michael Balsamo: and we keep on staying involved with our clients. Yeah. And that’s something that you have to do. Yeah. And, we’ve also made a lot of acquisitions, which help with that growth. And if you look at what’s amazing to me is all the acquisitions we did, all the owners are still here.

Michael Kremer: That, that is not something that ha- but you know what?

Michael Kremer: I think there, there’s a reason, and, I’m gonna, I’m gonna put words in your mouth here, but, the word I’m gonna go with is intentional. I, I’ve seen it that, how intentional you guys are in New York City. I’ve seen how intentional we are from a headquarter basis, across the country and across the globe.

Michael Kremer: there have been- Growing, the family, it just doesn’t happen that way. it’s like when- Well- It’s like when the children-

Michael Balsamo: You just hit the nail on the head.

Michael Kremer: Yeah.

Michael Balsamo: Some people are growing a business. We’re growing a family.

Michael Kremer: Yeah.

Michael Balsamo: And I’ll be honest with you. Yep. Every, every, acquisition, I’ll meet the owners and I’m like, “These are good people.”

Michael Kremer: Yeah.

Michael Balsamo: Most companies, they don’t care about the people who they’re buying. [00:32:00] Yeah. It’s, they’re buying a number. They’re just buying a company to say they bought a company.

Michael Kremer: Yeah.

Michael Balsamo: we are growing our family and we’re, we’re, again, we’re buying family members.

Michael Kremer: we use those words internally.

Michael Kremer: These aren’t external words that we- Yeah … we, use them, but we, talk about that. Yeah. We’re growing the family and this is how we’re gonna do it. And we get on planes and we go and see each other, and we sit down and we talk and we break the bread, right? And it’s, It’s a dysfunctional

Michael Balsamo: family, but it works.

Michael Kremer: Oh, yeah. Totally. But we love each other- Yes … nonetheless, right? No, it’s, intentional in New York City. It’s intentional at headquarters. It’s intentional overseas. We’re, we’re, focusing on that. I’ve, in previous lives, I’ve been a part of organizations where you do buy and then you cut the head off that chicken, and it does run around crazy.

Michael Kremer: And it doesn’t go that… Not only have we seen those people stay, they are ingrained, and we’ve picked up so much from them, from some of the ones that we purchased in New York City, and now we use that as a platform for our inspection side of our business. like, we’re learning and we’re growing.

Michael Kremer: I, I personally, having come here, think that’s, one of the most amazing and fascinating things that I see. [00:33:00] It’s, it’s, real and it’s intentional, and it’s, Yeah … it’s pretty great.

Michael Balsamo: It is.

Michael Kremer: yeah.

Michael Balsamo: It is.

Michael Kremer: now we’re gonna get into an- another unique spot, okay? One of my favorite segments, where we get to learn just a little bit more about Mike Balsamo, and I won’t tell you whether your subjective answers are objectively right or wrong on this one, so you’re off the hook on this one.

[33:30] Between Two Floors (Personal Story)

Michael Kremer: This segment is called Between Two Floors, and the idea of this section is we want a personal or a professional story from you where you didn’t necessarily feel stuck, but you were in a spot where you had to make a decision. Can you tell us a little bit more about the situation, the decision you made, and then the results of it?

Michael Balsamo: That’s an easy one.

Michael Kremer: All right. Let’s go.

Michael Balsamo: 30-plus years in the industry, this is my second job.

Michael Kremer: Yeah.

Michael Balsamo: Yeah. So my first job, my first employer, I was with for 21 years.

Michael Kremer: Yep.

Michael Balsamo: That’s where my father worked for 54 years.

Michael Kremer: Oh, man.

Michael Balsamo: And, History … yeah. So I, I, do [00:34:00] remember going through, there was a crossroads in my w- my life of when I had to exit-

Michael Kremer: Yeah

Michael Balsamo: from my former employee and start here.

Michael Kremer: Yeah.

Michael Balsamo: and that, that weighed on me.

Michael Kremer: Sure.

Michael Balsamo: So as far as why, great organization. Yeah. Great company. And again, I, It’s, it was family.

Michael Kremer: Yeah.

Michael Balsamo: It was family. And, it was a great team, great family. I just, I needed just something a little bit more for, for growth in my career.

Michael Kremer: Yeah.

Michael Balsamo: And due for a change.

Michael Kremer: Sure.

Michael Balsamo: And, I, I, was… It was very hard of me saying my goodbyes.

Michael Kremer: Oh, I

Michael Balsamo: bet. And I just, I remember the night before I gave my notice and I, I, was up till f- 2:30 in the morning- Oh … and I said, “Screw it. I’m going right to the office.” And I went right to the office, But I told my wife, I said, “The toughest thing is I’m not worried I’ll make a mistake going to VDA.”

Michael Kremer: Yeah. “

Michael Balsamo: It’s exiting.” I says, I, know what I have here with my current job-

Michael Kremer: [00:35:00] Yeah …

Michael Balsamo: and it’s family.”

Michael Balsamo: I says that, “I’m not gonna have that at VDA.”

Michael Kremer: Yeah.

Michael Balsamo: I says, “I’ll, never re- I’ll never be able to replicate that again.”

Michael Kremer: Yeah.

Michael Balsamo: And two weeks after, I was like, “I made the right decision.” I mean-

Michael Kremer: Yeah …

Michael Balsamo: this became family quickly.

Michael Kremer: Yeah.

Michael Balsamo: Yeah. And it’s, I only knew VDA thr- from looking outside in. Yeah,

Michael Kremer: sure. Yeah.

Michael Balsamo: When I got here and- I saw the professional team from the outside- … who’s very, still very professional.

Michael Balsamo: Yeah, But it was, it’s great camaraderie. Yeah. It’s great teamwork. It’s great. And, it, became my family quickly. my second family.

Michael Kremer: Your second

Michael Balsamo: family. Or sorry, my third family.

Michael Kremer: Third family. Yeah,

Michael Balsamo: whatever.

Michael Kremer: Just we’re all,

Michael Balsamo: been one big

Michael Kremer: family.

Michael Balsamo: But, but yeah, that, that made the tran- That was a very, rough transition for me.

Michael Kremer: Yeah.

Michael Balsamo: I, actually, I suffered through that for months.

Michael Kremer: Oh, I bet.

Michael Balsamo: Yeah. Yeah, it was a very hard transition. Yeah. And, I just, I was very nervous o- on, on giving notice at a company where my father was there for 54 years.

Michael Kremer: Yeah.

Michael Balsamo: I still have family there. [00:36:00] And, that was my, stuck between two floors.

Michael Kremer: you take that family with you though, right? You n- that family never leaves you. There’s, still, there’s so much that you do today that came from them, whether you know it or not. that is now, that- helped build those instincts, that, that ingrained- Yes … what you know now, that’s in your DNA because of them.

Michael Kremer: Correct. And so it’s a hard decision to make, but, my guess is they cheered you on all along the way.

Michael Balsamo: No. No, they did. They did. I’m kidding, I’m kidding. I’m kidding. Yeah. It- I still, we still w- you know, w- again- Yeah … they’re a contractor, so- Yep … we do work with them. Yep. So we’re along, and it’s totally-

Michael Kremer: Yeah

Michael Balsamo: smooth, Yeah. It’s, I still miss them. Yep. it, the people there. still great organization and whatnot, but- Yeah … yeah, that w- that was, a tough one for me. Well- And again, it’s my only- Job change in, 30-something years. Yeah. So yeah, it was a tough one. Yeah. After 21 years.

Michael Kremer: it’s, going back to the very, very beginning when you were talking about it, [00:37:00] this is like a … it’s a very niche industry, right? when you’re in it, you c- you see all the things, and things differently. But, if you’re not familiar with vertical transport, everyone knows what it is, but they’d have n- they may have never even called it vertical transportation.

Michael Kremer: But once you get in, you find out that, whose nephew are you? Whose son are you? ‘Cause it all kinda started that way and for a long… But that also is changing, too. You see that. But a lot of, whether obviously VDA or otherwise, you just see they, they’ll go from one manufacturer to another or to a consultant.

Michael Kremer: But that’s good because it, it keeps things fresh and allows people to see things differently, both sides of the coin, if you will. And I- Yes … that’s gotta make you a better, consultant or salesperson or, or, leader of the organization- Definitely … in that sense.

Michael Balsamo: Yes. Definitely.

Michael Kremer: Yeah. Yeah.

Michael Kremer: that’s great. I appreciate you sharing that. it’s a tough thing, right? And, I will speak, and I

Michael Balsamo: hope you- I don’t know, I don’t know if it was tougher telling my, my, the prior owner- that I was leaving or my father.

Michael Kremer: Were you guys still working together? [00:38:00]

Michael Balsamo: no. Okay. He had retired then.

Michael Balsamo: he had at this point, he was retired, and- Yeah … he had dementia setting in, so. But I did tell him.

Michael Kremer: Yeah.

Michael Balsamo: and it was like, it just, it clicked- Yeah … that I was leaving, Yeah. And he had dementia. It was like Bosco from Seinfeld, But, He remembered He, that he remembered, That he remembered.

Michael Kremer: Yeah, he came

Michael Balsamo: out. Yeah. But, Yeah … yeah, it was, it was… I had to tell him as well,

Michael Kremer: Yeah.

Michael Balsamo: And, for what he didn’t understa- he understood that at that point. Yes. Yeah. so he was like, “Good for you.”

Michael Kremer: Good for you.

Michael Balsamo: Yeah. but yeah, that was, probably one of the tougher transitions for me.

Michael Balsamo: Sure. Yeah. Or the toughest.

Michael Kremer: The toughest, yeah. Yeah. we hope you don’t have to make another transition like that. We’re happy with you right here.

Michael Balsamo: Thank you.

Michael Kremer: Yeah. And, and you, we already got you for at least another year, ’cause you said when you come back next year and we talk about a few things, and so we’ll, we’ll hit that contract.

Michael Kremer: Signed that contract. I

Michael Balsamo: didn’t even know

[38:59] The Future of Elevators & AI

Michael Kremer: it. Yeah. We got it on tape somewhere on here. Yeah. One of the last things I wanna go with is, look, we’re in vertical transportation, so we’re not gonna say, “Let’s look into your crystal ball.” We’re gonna say, “Look into the glass elevator. Tell us [00:39:00] what So 30-some years, in this industry, the last nine with VDA, you’ve seen trends kinda led, that, that, started there up to this point and maybe into the near future. Let’s talk five years. Let’s talk 10 years. what, do you see? What do you kinda predict and, what do you see, for your clients, how projects are going and just that element of the industry?

Michael Kremer: So

Michael Balsamo: I don’t know where they’re going, but I’m very curious to see what happens with AI.

Michael Kremer: Yeah.

Michael Balsamo: For sure. listen, you, you- AI, it’s here.

Michael Kremer: It’s here.

Michael Balsamo: Okay? It’s

Michael Kremer: no longer

Michael Balsamo: coming. I mean-

Michael Kremer: It’s arrived …

Michael Balsamo: I go down some of these rabbit holes on Instagram. It’s about 3:00 in the morning, it’s like AI.

Michael Balsamo: No one will be working in 24 months. Yeah. the whole world’s unemployed. Yeah. So I don’t think it’s- Yeah … gonna be as doomsday prediction as they’re predicting. Yeah. But what is AI gonna do to the elevator industry? I think it’s really going to change not so much the technicians and the maintenance being performed- Yeah

Michael Balsamo: I think more on predictive maintenance.

Michael Kremer: Sure.

Michael Kremer: Yeah.

Michael Balsamo: It’s gonna anticipate what’s gonna go bad or what’s gonna become compromised before it goes [00:40:00] compromised. So think about that. So w- I see the future of elevators definitely changing through AI. Yep. also that, that, that passenger experience.

Michael Kremer: Yeah.

Michael Balsamo: DD, I think algorithms are gonna change for smarter dispatching. Yeah. So I think AI’s definitely going to help with the elevator industry.

Michael Kremer: Yeah.

Michael Balsamo: But I also think we’re still gonna need technicians- Well- … so it’s really not gonna affect them … what- You’re gonna need your installers and- Oh, for sure

Michael Balsamo: your maintenance and repair people.

Michael Kremer: Yeah. that’s the robot part of things. They, we haven’t quite got there yet. Yeah. Yeah, but go back to that predictive maintenance. Just describe that a little bit more. What does that adoption look like for the predictive maintenance? people are using it now.

Michael Kremer: How does it continue to grow? what does that, what does it really entail and look like?

Michael Balsamo: So we have someone in New York City office, that we work with, and he’s been preaching predictive maintenance is the way of the future. And again, i- I think it’s basically going to take a look at the equipment.

Michael Balsamo: And it’s gonna send out, an alert, “Hey, the, this door [00:41:00] operator belt-

Michael Kremer: Yeah …

Michael Balsamo: it’s good for 3,000 cycles. You’re at 290. Let’s get someone on the next maintenance to go there and change the belts out.” yeah,

Michael Balsamo: yeah. So you’re actually, you’re predicting when the shutdown could happen-

Michael Balsamo: instead of going in, doing the maintenance, and then when you leave two hours later, that belt broke because you didn’t even look at it.

Michael Kremer: Yeah.

Michael Balsamo: So I, I do think that’s going to help with the contractors and how they perform their maintenance.

Michael Kremer: Okay.

Michael Balsamo: And if they, if this does happen or come to fruition, I think you’re gonna see an increase in reliability- Yeah

Michael Balsamo: and obviously a d- decrease in downtime.

Michael Kremer: Yeah.

Michael Balsamo: So I think, the end user’s gonna really benefit from this. For

Michael Kremer: sure, yeah.

Michael Balsamo: and I, I don’t know how this is gonna b- be implemented and that reporting.

Michael Kremer: Yeah.

Michael Balsamo: Is the contractor gonna charge the client for that in a premium? So I just, I think we have a lot of changes coming down the pike.

Michael Kremer: Yeah.

Michael Balsamo: but I think it’s really good change for the industry.

Michael Kremer: Oh, sure. Yeah, and in a year we’ll come back and we’ll talk about it or look back and see if we’re still talking about it. Again, is, it coming, has it arrived? Is it, where’s it going from here? It’ll be [00:42:00] here. It’ll be here.

Michael Kremer: it is just moving at the speed of AI right now. It’s fast. I know. Yeah, it’s fast, It is. Yeah.

[42:14] Closing

Michael Kremer: Michael Balsamo, thank you for- Thank you … joining us. It’s so good to be- I appreciate it. Thank you … absolutely. Thank you. again, my name is Michael Kremer. I’m the host of Vertical Access, VDA’s podcast where we sit down with decision-makers, and subject matter experts like Mike Balsamo.

Michael Kremer: We wanna say thank you for listening in, and we look forward to seeing you next time.