Two decades ago, a group of independent HVACR distributors recognized a fundamental truth: strength lies in numbers. In an industry facing increasing consolidation and competitive pressures, these forward-thinking distributors saw an opportunity to build a powerful community. The result was BLUE HAWK, a cooperative formed in 2005 as a 100% transparent, member-owned cooperative focused on wholesale distribution in air conditioning, refrigeration, ventilation, heating, hydronics, tools, supplies and accessories. 

With the mission to empower independent distributors through collective purchasing power, shared resources and strategic partnerships, what began as a bold idea quickly took flight.

What started as a handful of distributors has grown into a powerhouse of 196 member-owners, with nearly 1,700 locations in 49 states, Puerto Rico, and the US Virgin Islands. BLUE HAWK attracts members eager to maintain their independence while gaining the advantages typically reserved for larger competitors. Through its cooperative model, BLUE HAWK provides members with enhanced supplier relationships, competitive pricing and access to valuable business tools, all while preserving the entrepreneurial spirit that defines independent distribution.

Now, as BLUE HAWK celebrates its 20th anniversary, it stands as a testament to the power of collaboration. With a growing membership, expanded programs and a commitment to driving innovation, the cooperative has not only survived but thrived, proving that when independents unite, they soar.

Taking flight

One often wonders how organizations get started, and for Michael Riley, owner and president of Riley Sales — he can speak firsthand. The idea was developed in Chicago, and he remembers the day. 

“In Chicago, at an airport hotel, Dan Bleier from Able Distributors had the idea for a cooperative of only HVACR members,” Riley recalls. “From the initial group of five of us, we decided to give it a go and created BLUE HAWK. At that time, 20 years ago, competition was coming from the big-box stores getting involved in the HVACR vertical, as well as larger publicly traded distributors branching off plumbing and getting into HVAC. In addition, a manufacturer decided to open factory-direct stores. We believed that if we worked together, pooled our resources and aligned ourselves with the best manufacturers in our industry, it would be good for everyone involved in our supply chain.” 

He saw the creation as a way to preserve the smaller independent companies in the HVACR space. “We couldn’t let retail come in and take away our business, and we didn’t want public companies and equipment manufacturers selling to our contractors directly. We also we knew we had a good story to tell our vendor partners,” Riley explains.

He adds that the idea was to have two vendor partners from each of the HVACR major product classes: “They did not have to sell all our members, they did not have to sell us all at the same price. However, what we asked for is that they take our cumulative sales, give us the best price in the market for our volume of business, and give us a rebate if we hit certain sales growth goals in a given year.” 

He leans into a major directive of the group- the want and need to include “good competition,” explaining: “This wasn’t going to be a country club cooperative where only the biggest were invited. We actively looked at competitors in our own marketplaces who we knew worked on fair margins and took care of their contractor customers. We believed that, in the long run, we would be stronger together. Now, as we come up on our 20th anniversary, we were right.”

When asked about how the name developed, Riley notes: “HAWK is an acronym Heating Air conditioning Wholesale Cooperative. We changed the C to a K because none of us could spell! We were in Chicago and thought of the Blackhawks, the city’s hockey team. We came up with red Hawk, yellow Hawk, chicken Hawk, but blue is the one that stuck. 

“At that time, there was a lot going on with the green movement; everyone was going to be green to save the environment. However, if you were blue, you were altruistic; you wanted to save the environment for the environment’s sake, not to make green, as in cash in your pocket. So BLUE HAWK was chosen. It’s an excellent name.”

Many consider BLUE HAWK to be a buying group, which is not correct as it is a cooperative. 

Riley explains: “What truly makes BLUE HAWK different than the other buying groups in our industry is that we are a 100% distributor-owned cooperative. Not a buying group. Not a for-profit entity where some person or investors make money off of our hard work and sales. Our dividends earned are returned to our members after administrative costs are paid; no money to an outside entity. We are transparent with our financials. We are transparent with our members. No secret handshake. We are all in this together, helping each other grow and be successful.” 

And it shows. 

According to Riley, the cooperative soared from the start. From there, the group expanded its scope. 

“Vendor partners liked our business model; we gave the opportunity to smaller manufacturers to join the cooperative, and it helped them grow their market share quickly,” he states. “We have been the largest HVACR cooperative/buying group for the last 10 years. Our vendor partners tell us they enjoy working with us — we work hard, but we don’t take ourselves too seriously. We all enjoy ourselves at our annual conferences. There’s a lot of relationship selling in BLUE HAWK; it’s not a race to the bottom line. Give us a fair price, and an incentive to grow, and we will do the rest.”

Building better businesspeople

What started as a vision has become a growing reality, and today, BLUE HAWK has 196 members across North America. BLUE HAWK Chairperson Lauren Roberts, chairwoman, CEO and president of cfm Distributors, has helped guide the group, having joined its board of directors in 2020. “BLUE HAWK ensures that the independent HVACR distributor, in an environment of consolidation and larger competitors, can compete, thrive and prosper today and in the future,” she says.

To do so takes a vision and plan, and Roberts outlines how the organization adapts to industry trends to help its members prosper and grow. 

“One of the industry’s biggest challenges is consolidation,” she explains. “The BLUE HAWK Growing Forward program provides a confidential connection opportunity for buyers and sellers of member businesses and has helped sellers provide a turnkey succession plan for their businesses. It helps buyers expand their presence within BLUE HAWK, and keep companies in the family, which allows our cooperative to stay strong throughout these times of expanded consolidation.” 

She notes that the cooperative regularly adds solution partners and vendor partners to “help keep member-owners on the cutting edge of technology adoption and assist them in accessing industry-leading products at competitive prices.” 

Riley notes that one of the positive impacts the cooperative has had upon his company (and the member community) is “our distributors, coming together to share ideas that have made their companies more profitable or made their employees more productive. We share ideas with peer-to-peer networking during the conferences. Also, the rebates earned make a significant contribution to the bottom line of many of our members. BLUE HAWK has helped many of us be much better businesspeople.”

I asked Roberts what stood out from her time with the organization, such as memorable stories or collaborations. “There are almost too many to count,” she says. “Adding our Peer-2-Peer networking groups among executive team members of our member-owners has provided an amazing best practice sharing environment to help us improve our businesses.” 

While the organization has “hit its stride” in building an organization with an active and engaged membership, it also has a solid plan in place to continue to evolve and support its members’ growth. 

Roberts outlines several examples of how the organization is doing so: “BLUE HAWK has an excellent and affordable group 401(k) retirement program, with very low fees and reduced fiduciary responsibilities. We have an outstanding medical insurance captive program for member-owners to reduce insurance rates and risks by leveraging the buying power of our members-owners and hundreds of other participating companies.”

Roberts describes how the organization keeps ahead of industry trends and regulations: “As our industry is facing one of the most significant transitions in our history with the A2L refrigerant transition and trying to work through historic high levels of inventory, BLUE HAWK has developed the Fill It Now marketplace to provide an easy inventory-sharing platform for our co-op’s member-owners.”

BLUE HAWK continues to add relevant solution partners to bring awareness of new technologies to member-owners as well as new vendor partners to ensure member-owners have access to the best vendors at competitive pricing and rebate programs.

For member David McIlwaine, president of HVAC Distributors, who joined the cooperative in 2006, the reasons for doing so were simple: “We were hoping to leverage our buying power to be able to compete more effectively. Over time, we realized there were other ways that BLUE HAWK could help by bringing the power of the cooperative to our administrative-type expenses, insurances and the 401K plan.” 

He describes firsthand how being a member-owner of the cooperative has helped him in business. “BLUE HAWK has helped us tremendously in improving profitability through the rebates, and the group 401K plan not only saved us money but eliminated a time drain and a potential liability for members,” McIlwaine explains. 

The road ahead

BLUE HAWK is well-known for how active and engaged members are with the organization – which reflects the team running its day-to-day operations. “Our leader, Lance Rantala, is a great visionary and leader, and has established a talented team of people who accomplish great things on a very effective budget,” McIlwaine says. 

The sentiment is echoed by Riley: “We have a lean staff. Our team works hard for the membership. They pump out a lot of work. Our staff is significantly smaller than all the other buying groups out there. It allows even more of our rebates to flow back to the members.” 

While the team works together to ensure members maximize their time and commitment to the cooperative, they also ensure the events are a great combination of both work and fun. “BLUE HAWK has the most fun annual meeting celebrations of any organization I have ever been involved with,” McIlwaine says. “There are fantastic memories (and, in some cases, pictures) of some of the best parties ever.” 

BLUE HAWK’s CEO Lance Rantala, echo’s the statements made about the group, saying “BLUE HAWK’s strength lies in the incredible loyalty and support of our members, partners, and staff. Together, we created a culture of collaboration and trust, empowering each other to thrive and succeed. This unique cooperative spirit drives our success and fosters deep connections that make us more than just a network – we are a family.”

To celebrate the cooperative’s 20th-anniversary milestone, member-owners celebrated during BLUE HAWK’s Annual Winter Summit in Banff, Alberta, Canada (held in January). The celebration will continue during the member-owner annual meeting in New York City, April 30-May 2, 2025. 

In addition, Roberts outlines two other special events this year: “Later this year, we will host another smaller-scale celebration at BLUE HAWK’s annual Fall Advisory Forum with more great vendor meetings, networking opportunities, and a Ryder Cup-style golf competition between Team BLUE and Team HAWK. We also look forward to extra celebrations this year because The UN General Assembly declared 2025 The International Year of the Cooperative, showcasing cooperatives’ enduring impact globally, amplifying our importance, and collaborating like never before.”

There is no slowing down for the member-owner group, and the road ahead is filled with opportunities. 

Roberts reflects on serving in a leadership role: “Serving BLUE HAWK’s member-owners as chair of its board is quite an honor. In my opinion, we have the best staff and member-owners of any cooperative or buying group in our industry. Collectively, we are proud to usher in BLUE HAWK’s 20th anniversary of being a successful, 100% transparent, member-owned cooperative.”

Happy Anniversary!