Quilt exec on industry giants, contractor partnerships, and next-gen heat pumps 

The HVAC industry’s largest manufacturers — Carrier, Daikin, Lennox, Rheem, Trane — are each over 100 years old. For decades, only a small handful of U.S.-based manufacturers have been founded, including California-based Quilt, which formed in 2022, subsequently raised $42 million, and launched a ductless heat pump system last Spring. 

Given the backdrop, I caught up with Quilt’s Chief Revenue Officer, Mark Schmidt, about how the startup is positioning itself in an industry where a few manufacturers hold the lion’s share of the market, engaging with contractors, and product innovation. Below is our conversation, lightly edited for clarity. 

How does Quilt think about positioning itself in the marketplace? 

We’re focused on design, performance, and technology — building the most efficient and smartest two-zone heat pump on the market. Things like over-the-air updates and the intelligence we’ve built allow our products to get smarter every day.

For us, it’s about taking this value proposition — product differentiation, design, intelligence, energy efficiency — direct to dealers, whether they started yesterday or 100 years ago. 

We have a team that calls on dealers directly to convert them in-market. We’ll have our first partner in L.A. signed shortly, then we’re expanding to Seattle and Portland, and then Boston and New York. 

What are those outbound conversations with contractors typically like? 

We have consumers in 52 geos across the country, including the largest markets, who have expressed interest in Quilt. So, we can tell partners that there’s embedded demand in the marketplace. 

92 percent of homeowners, nationally, self-report being aware of heat pumps, but 55 percent don’t know what they do or that they’re better for the environment. So, for us, it’s really about helping partners educate homeowners on these products, because only one in five are really happy with their current HVAC system. 

How has the tariff environment impacted Quilt?

We have a vertically integrated supply chain and own everything from top to bottom, which allows us to be flexible and pivot quickly. Tariffs are impacting the entire industry, but we’re focused on the long-term momentum behind the electrification story. It’s more about driving the category forward. Regardless of which side of the political spectrum you sit on, everyone wants superior home comfort. 

Have you made any particular supply chain adjustments since the initial tariff announcements? 

No changes, currently. We’ll remain flexible and maintain optionality; our team’s done a good job of putting together some contingencies. 

Can you give me some color on the marketing/branding strategy?

We want to drive awareness and generate excitement about heat pumps. We do a combination of media relations, paid media, content creation, and thought leadership — writing blog posts, highlighting Quilt at conferences. We also work a lot with creators, which is different than what a lot of brands are doing. One of the things we do well is a mix of homeowner and dealer-focused content. 

When you say ‘creators,’ are you referring to technicians/industry folks or homeowners? 

To date, we haven’t worked with technicians out in the field, but that’s not to say we won’t — we’re looking into it. Our goal is to show the diverse use cases for heat pumps. We’ve worked with parents, for instance, who love heat pumps, because it means their baby’s room can be a different temperature than the rest of the house. 

From a product perspective, is there anything on tap for the rest of this year?

We just launched our newest feature, Energy Usage, which helps homeowners see exactly how much energy each room is using. Our data reports help consumers spot patterns, compare usage, and discover smarter ways to heat and cool their space for maximum efficiency and, ultimately, cost savings.

How do you think about the market structure, given that your competitors currently hold the lion’s share of the market? Or does that not matter?

I’d be wrong to say that it doesn’t matter. Some of our competitors have a 100-year head start. But unlike our peers who’ve helped bring heat pumps to the masses, we’re reinventing it by bringing the smart heat pump into the modern age. 

Our focus is on leveraging cutting-edge technology and innovative design to meet the evolving needs of today’s homeowners. While our competitors hold significant market share, we see tremendous opportunity in capturing the interest of customers who are looking for more efficient, aesthetically pleasing, and innovative products.

Editor’s note: This story has been corrected to reflect that there has been more than one U.S.-based manufacturer founded within the past several decades.