represents the largest period of capital investment in Rheem history and was done to create significant advantages for plumbing and HVAC contractors and homeowners for years to come.
Was the economy any cause for concern? Did the economy alter business objectives?
Jones: During the past few years, the
U.S. and global economies changed dramatically, and, as a result, the water heating and HVAC industries underwent significant changes. In these industries, the successful businesses overhauled the way they operate in order to make it through the most significant economic correction period since the Great Depression. These businesses took measures such as aggressive cost management, productivity improvement and reorganizing operations for greater efficiency and reduced waste. At Rheem, we took those exact steps, but, at the same time, we recognized the opportunity to go beyond these fundamental tactics and invested heavily in innovation. We took a close look at the basics of our business — research and product development, manufacturing operations, product design, sales, distribution and marketing — and made substantial enhancements to every area. This ultimately positioned Rheem to be a stronger, more united, technologically advanced company poised for growth.
Our audience is plumbing and the “wet” side of heating. With the introduction of the electronic-based systems, and the integration of air/heat pump technology, how does it affect plumbers, if at all (ease of use, training, etc.)?
Peel: Over the past few years, Rheem has placed a considerable emphasis on new product development. A big change for Rheem, and for the industry, is bringing electronic controls into what has traditionally been a mechanical industry. Typically, air conditioning systems
have included electronic control systems, but water heating systems have not. Because Rheem is unique in that we have decades of water heating and air conditioning technological expertise, we have a unique opportunity to help plumbers recognize the benefits of integrated electronic controls and integrated air and water systems. Rheem is developing integrated electrical controls that will bridge across our vast and diverse water heating, heating and cooling, pool and spa heating product lines. It is our belief that the introduction
of electronics to our plumbing customers will: • provide unprecedented benefits to their customers, leading to improved profitability; • provide differentiation from their competition;
• improve the ease of installation,
reducing call backs and • make our products easier to use
and realize maximum performance benefits.
How important is educating the contractor/wholesaler who, in turn, educates the consumer? How is your relationship with the contractor/wholesaler, and does it change moving forward?
Peel: An increasing number of consumers are preparing for major purchases by combing the Internet for information and doing comparison shopping before contacting local sales and service providers. Armed with information, consumers select contractors whom they judge to be informed and up to date to help them make their water heating and heating and cooling purchase decisions. Moving forward, consumers are
likely to quickly dismiss those whom they deem to be out of touch or uninformed in favor of contractors who demonstrate that they have the expertise that brings value and trust to the transaction. So, it’s important that Rheem assists contractors and wholesalers in staying on top of their game by making information available 24/7 and by offering focused and convenient training courses. It is important that our
contractor/wholesaler customers adapt their business models to this reality and to the evolution of products that cross traditional boundaries (e.g., hybrid systems). In terms of training, Rheem employs full-time training coordinators in our Montgomery, Ala., manufacturing facility that specifically offer ongoing tankless water heating training. Although tankless water heaters have been used worldwide for more than 50 years, consumers in the United States are just starting to learn more about the attractive benefits of tankless technology. One of the most important things that Rheem offers in the education process is explaining how tankless water heaters function, particularly emphasizing what makes them efficient options for consumers. Our relationship with contractors and wholesalers has always been collaborative, and we’re in a great position to be an even more integral resource for them in the future. As Rheem pioneers new products that combine both air and water technologies, we can be a resource for plumbers and HVAC contractors who need greater education on whichever product line is not their current specialty. For instance, in 2009, Rheem launched a hybrid electric water heater that uses heat pump technology — originally used in HVAC systems — to heat water. Heat pump technology enables
water heaters to be nearly twice as efficient as standard electric water
heaters. When we launched the product, we helped plumbers learn more about how heat pump technology functions in a water heating application. In mid-2011, Rheem will launch the second generation version of our hybrid water heater, which will feature a color touch-screen LCD display. We expect to continue educating plumbers on the use of heat pump technology when we unveil the enhanced hybrid model.
What has been the reaction from your reps and wholesaling channels?
Peel: Reactions to the new Rheem brand identity from our distributors and wholesale channels has been overwhelmingly positive, particularly from those who saw the new look and feel of our products first-hand at the AHR Expo 2011 and the annual Air Conditioning Contractors of America conference. Our reps were as excited as we are about the new product designs, technologies and overall direction of Rheem. Their enthusiasm for the new product designs was especially evident, because no one else is able to provide so many advantages, services and good-looking water heating and HVAC products designed and built by one manufacturer.
It had been mentioned that most of Rheem Water Heating’s product offerings were three years old or less in terms of being on the market. Were you cognizant of this and is this (having new, innovative products that are continuously evolving) something to strive for moving forward?
Peel: We will continue to invest at an accelerated rate in technology, efficiency and product development to keep our product offerings relevant and aligned with contractor and consumer demands.
What are some of the new products?
Jones & Peel: The Rheem Prestige Series condensing tankless water heater is the most efficient Rheem tankless water heater to date. Boasting an industry-best minimum flow rate of .26 gpm and a minimum activation flow rate of .40 gpm, homeowners using low-flow fixtures receive hot water without having to increase the flow. That’s an important benefit in today’s eco-conscious world that translates to savings on water usage and energy costs. Units can vent with PVC piping, making installation faster, easier and cost-effective for contractors.
The Rheem Integrated Heating &
Water Heating System powered by tankless technology offers home heating and hot water from a single source. Because this energy-efficient system is designed, built and warranted by a single manufacturer, Rheem, contractors receive the benefit of
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phc april 2011
www.phcnews.com
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