Recognizing the Complexity of Industrial HVAC, Process Manufacturing, and Process Requirements

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Industrial facilities today don’t have to be new in order to be efficient

Leading facility owners and operators are retrofitting existing facilities into models of efficiency and sustainability. Industrial facility retrofits are investments in efficient technologies that span all facility systems, including lighting, facility envelope, and HVAC. While most facility owners still pursue single technology improvements, market leaders bundle together energy saving technologies in a more comprehensive approach to get deeper savings and greater lifecycle value.

 

 

Challenges for facility leaders are complex

Facility leaders recognize that industrial retrofits are largely about managing risk.

Each facility project is unique and distinctive. Implementing a retrofit while protecting the production capabilities within the operation creates high visibility and requires a very clearly defined plan. Minimizing and eliminating all business interruption is always a top priority. It is also essential to protect the organization and meet or exceed all regulatory mandates to ensure safety for people. Facilities leaders seek trusted advisors and working arrangements that are in sync with all regulatory guidelines for facility compliance.

This complexity can result in a built-in resistance to efficiency retrofits and change. For this reason, facility retrofits are often conducted in a reactive versus a proactive mode. “Like-for-like” system replacements are the most expedient directive when reacting to a facility system failure or needed upgrade. However, with superior options available, these short-term decisions can result in not only higher upfront costs but also dramatically higher operational costs and shorter total lifecycle of systems selected.

Aging mechanical systems and equipment require asset-replacement planning

Various aging facilities systems drive more frequent routine maintenance and require more people resources to maintain, which increases operating cost. Aging facility assets are a reality. Planning for and developing a methodical aged asset replacement strategy requires leadership planning and trusted partner relationships in order to benefit from system expertise applicable to your unique facility requirements.

 Systems interdependence impacts scalability

Industrial facilities evolve over time to reflect the changing needs of growing industries, modern equipment and processes, and other economic trends. In many instances, current production systems and technologies barely resemble their original form. Their supporting systems are often overlooked. As production systems change, there is a direct interdependence to process loads and exhaust systems. When HVAC systems are overlooked, this can cause inadequate makeup air, negative pressure problems, cold spots, and overall poor comfort levels.

Furthermore the infrastructures of these aged industrial facilities typically resemble single systems that serve multiple functions, thus hindering their ability to scale their production rapidly and efficiently. Facility leaders are left with difficult decisions when incremental changes in production capacity become less cost-effective because of inadequate, interdependent systems.

Facility leaders have many reasons to seek functional expertise and consultation to build proactive plans:

  • The need to meet or exceed corporate energy reduction mandates
  • To exceed production capacity metrics
  • In order to provide labor with ideal environment conditions: people comfort, productivity, and facility thermal condition requirements
  • To meet all facility safety regulations

Facility HVAC systems support improved process and production capacity

Facility leaders considering industrial retrofits of HVAC systems recognize the value of:

  • Rapid ROI – multi-level corporate approvals
  • System reliability and durability
  • Lifecycle cost
  • Standardization for proactive management and metrics
  • Integration with building automation systems
  • Complementing production and process applications of HVAC systems

I hope you find this blog topic interesting and would love to hear your feedback and comments on the subject.

Be sure and visit our website at www.cambridge-eng.com to learn more about Cambridge Engineering.

Building Owners Earn Big Tax Break for New HVAC

HVAC Retrofits Bring Big New Tax Breaks

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We recently heard some great news from our tax advisors: Cambridge Engineering customers can immediately deduct 50 percent of the cost of our HVAC equipment when it is installed as a retrofit in a commercial building. The new rule applies to a variety of building improvements and renovations made in 2016 and 2017 – and HVAC equipment is included as an eligible deduction.

This is a big win for building owners! If you’ve been considering replacing your facility’s old or inefficient space heating and ventilation equipment, now is the time to do it.  The 50 percent “bonus deduction” will taper down to lower percentages after 2017, and will go away completely in 2020.

Accelerate Your Depreciation on Building Improvements

This gift from the IRS marks a significant change from past deduction allowances. HVAC equipment has always been considered part of the physical structure of the building, so until now it could not be depreciated at an accelerated rate in the same way that capital equipment can be depreciated. In the past, building improvements have been depreciated over 39 years. That’s a pretty long time to realize the benefits, and not much of an incentive to invest in building improvements.

Now, with the new rules, that’s all changed. Tax deductions for building improvements should be on everyone’s minds this year and next.

Save Energy Right Away with HTHV Technology

Here’s another reason to act soon: when you replace old equipment with Cambridge’s HTHV (high temperature heating and ventilation) products, you’ll notice a big difference right away on your utility bills. If you’re replacing old boilers the savings can be as much as 40 to 70 percent. You’ll save at least 20 percent when you replace gas-fired, standard unit heaters.

You can’t argue with those numbers. Our customers have enjoyed significant savings on their energy bills!

Cambridge HTHV is an investment that keeps paying for itself because of the remarkable energy efficiency.

Find Out More

Want to learn more about the new tax perks for commercial buildings? Here’s a great article from our tax advisors:  http://www.uhy-us.com/News-Events/Article/752/New-2016-Tax-Perks-of-a-Company-Interior-Building-Renovation

We urge you to talk to your tax advisor or CFO about your commercial building and how you can qualify for what the IRS is calling Qualified Improvement Property. Just remember that after 2017, the tax benefits begin to shrink. So it’s in your best interest to invest sooner rather than later.

Besides HVAC, the tax deduction can apply to improvements to lighting, electrical, plumbing, permanent floor coverings, and non-load bearing walls. Again, half of the cost of these expenditures can be deducted in the year the assets are placed in service. This could be a significant benefit for any companies with plans to remodel.

Thanks for taking the time to read our blog. We value every customer and strive to bring you timely, helpful information to make your job and your company a success!

Grow Your Retrofit Business With Cambridge HTHV Technology

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When it comes to providing retrofit heating solutions for older, outdated and inefficient heating products you should look no farther than Cambridge Engineering’s High Temperature Heating and Ventilation (HTHV) products. Our products are an exceptional heating solution for warehouse, distribution and manufacturing facilities that are in need of a solution to provide better indoor comfort, reduce energy consumption and provide need ventilation during occupied hours even on the coldest of days.

To learn more about HTHV technology can be used in retrofit opportunities watch this short video:

Stay tuned for more videos from Cambridge on how to use our products in retrofit opportunities.

For more information visit us at www.cambridge-eng.com and fill out the contact us form.

FIX WHAT BUGS YOUR CUSTOMER – Getting LEAN beyond the manufacturing floor

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During a recent visit in Rhode Island, a customer and friend of our organization complained about the features of our WiFi thermostat and Iphone App. He just didn’t like the interface with the control application. He struggled with understanding if the HVAC equipment was running and he didn’t like not being able to program the system settings directly from the Iphone App. Our phone interface bugged him. What happens when our customer’s get repeatedly frustrated with experiencing our product, services or people? You know the answer. They’ll be gone.

frustrated

We have been learning and growing in our LEAN journey at Cambridge. My key learning has come in the form of exposure to the energy and passion of our Operations staff for documented improvements in our plant. I’ve been drawn into the LEAN vortex in operations because of our people and their commitment to improving things every day. Unfortunately, the passion for LEAN has not translated to the same awesome level of enthusiasm and commitment beyond the factory floor. Like many in the sales, the customer service and the marketing departments, I have struggled to document meaningful process improvements. My focus on fixing what bugs me has yet to yield the transformational improvements that are possible for me and my team. While transformational improvements are not our stated objective, I find myself feeling reluctant to put forth additional 2-second Lean improvements. Others in my organization have shared similar frustrations. Paul Akers, the author of the book 2-Second Lean, details that every organization hits plateaus in LEAN and persistence is needed to push through to another level.

My perspective on LEAN shifted during this Rhode Island trip to VIBCO, a family owned U.S. based manufacturing organization. I want to share my perspective shift in hopes that it might unlock more people regarding how LEAN practices can propel all of us forward into closer relationships with our customers. I am shifting my thinking from fixing what bugs me to fixing what bugs my customer. Over the last year, I have spent the majority of my time looking at my processes, my environment, my efficiency, my organization, my wasted time and energy.

As I reflect on the power of our Customer Service team, I believe their stellar reputation in the HVAC industry is built upon this hard wired philosophy of helping customers solve problems fast. They strive to support the customer quickly. Both on the phone and on site, our customer service squad supports solving issues that bug customers. Within our technical advisory team, they support our Reps and contractors with information, analysis and design to make their customers more effective with their customer. They have a guaranteed 24 turn around commitment to their customer and typically deliver in less than 4 hours. LEAN beyond the manufacturing plant dock doors is all about fixing what bugs customers.

happy

I’ll report back on the progress we make creating our own LEAN Sales Vortex. We are building our 15 minute daily stand up meeting agenda now. It will include building and fixing customer issues and new ideas for customer improvements. We will be discussing our “Go and Watch” plans for cross functional team learning and customer centric improvements. Finally, we will be outlining our Revenue team external exposure plans so that we can provide an environment to unlock everyone’s genius for fixing what bugs our customers.

Is it not true that what bugs the customer, likely bugs us the most?

Retrofit Old Inefficient Heating Equipment with Cambridge HTHV Technology

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As an HVAC contractor who services commercial and industrial accounts you know that one of the biggest complaints that you hear from your clients is the high cost to heat their facility. You know this is especially difficult when they are still using old inefficient heating equipment. As a manufacturer of high efficiency industrial heating equipment we thought we would share a video with you about our ability to help you reduce your clients energy bills using Cambridge equipment.

In this video Marc Braun describes the three most common heating solutions (Unit Heaters, Boilers & Air Rotation units) that are a prime target for replacing with a Cambridge High Temperature Heating and Ventilation (HTHV) solution.

If you interested in learning more about retrofit opportunities using Cambridge HTHV equipment visit our website at www.cambridge-eng.com to contact us.

TEN SALES LESSONS FROM GOLF

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I really enjoy golf.    I love how the game brings people together from all walks of life and stages in life.   Being outdoors for 2-4 hours in a world of offices and meetings is great for friends, families and business associates.  Golf teaches several life lessons that help anyone seeking to improve performance.

golf

 

 

 

 

 

TEN SALES PERFORMANCE – GOLF LESSONS

  1. Learn/Practice: Sales people are made.  They are not created.   Just like the best players in the golf game, those that commit to practicing and learning their craft, fare better than those that are winging it.
  2. Have Fun: If you have passion and energy for something and can enjoy the experience, you are going to return to it again and again.   If you don’t feel the special calling, do something else.  We must be inspired.
  3. Expect to Win: Just like seeing the putt role in the hole or the approach shot rattle the pin, expect greatness and great outcomes.   Visualize the best outcome without worry of the worst.  The best outcome is just as likely as the worst.   Focus on the best.
  4. Slow Down: Forget all the prep, all the practice, let your instincts work with all the preparation you’ve done.  Focus on the here and now and be present, with awareness of your surroundings.  Rushing towards the next move is not required.   Live in the now.  Your customers will love the way you listen to them.
  5. Develop a Rhythm: I often rewind PGA tour swings on my DVR and it drives my kids crazy.   I love the tempo and the rhythms of the PGA tour professionals.   Think about Ernie Els swing for a moment.   Daily, weekly, monthly, quarterly, annual rhythms are vital to our success.   What are you cementing into process that demonstrates a consistency and a rhythm?
  6. Ease Up: Don’t be your own worst critic.   Every pass doesn’t have to be flawless.   Hitting better bad shots is the objective.  The flawless ones, the pure ones will come when they come.  Work on making the misses more on target.   Keep taking shots and moving forward with positive attitude.   Be too hard one’s self and watch how joy and results follow.
  7. Focus on the process: This probably borrows from #1 and #5, however, I like it for the message around regarding one’s focus on the process and not the result as the worthy endeavor.   When we can commit our process to paper or in very succinct clear language, then your process is crystallized.   Thinking LEAN, or 2-Second Lean (author: Paul Akers), I might say that a written best practice approach on process is appropriate.   In golf, one’s putting routine process or tee box pre shot ritual or the very swing itself reminds us that process matters.   The result may look different each time.  Focus on process.  Nail process.
  8. You don’t know where it’s going, but you can’t stay here: It is hard for us to be humble and accept that change is needed.   Change starts with humility and an acceptance that we are not yet fully adapted and evolved.   Embrace change not for change sake, but for the continuous improvement mindset.  Hope is about a better tomorrow in all things.
  9. Respect Others: The golf game etiquette we are all taught as we learned the game reflects life lessons regarding the value of others.  Thinking beyond ourselves to listen and accept the ideas and perspectives of others.   Just like we don’t walk in someone’s line or speak in their backswing, we don’t walk on someone’s perspective or speak over them in conference.
  10. Let It Rip: Commit and go do it. Activity builds momentum.  Perpetual planning and plan revision thwarts pace.   Take 1 less meeting per week and make 1 more appointment or networking appointment each week.

 

Thank you for continuing to follow us here at “The Fresh Air Stream.”   I would love to hear from you regarding valuable life lessons that have impacted your success.  Please like this post and share it with other golfers in your lives

Energy Efficienct Direct Fired HTHV Products qualify for Rebates

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Another reason to get excited about HTHV technology?

Building owners and facility managers can receive additional gas utility rebates when purchasing and installing HTHV technology.

rebate

For years, both electric and natural gas utilities have offered rebates for energy efficient products, and direct gas-fired HTHV is no different. Natural gas utilities across the country have been providing custom rebates for HTHV products through their commercial and industrial rebate programs for over a decade.

Because of the DOE’s study on the benefits of HTHV equipment, many natural gas utilities are adding prescriptive rebates for HTHV products to the already available custom rebates. Amounts vary by utility, but rebates can provide as much as $12,800 in rebate funding for a 3.2 million Btu heater, promoting the installation of even the largest heaters available.

Combining rebates with the gas savings that a 92% efficiency HTHV heater provides can help drive down the return on investment that today’s building owners and facility managers need to meet when purchasing capital equipment.

If you need help applying for your rebates, feel free to contact Cambridge Client Care at 888-919-1887. Our representatives understand the steps and are more than willing to assist you.

Now it’s easier and more cost effective than ever to install HTHV technology.

High Efficiency Space Heaters Get DOE’s Attention

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Over the past 25 years, ASHRAE has dramatically increased the minimum efficiency requirements for commercial buildings and their associated equipment. The direct result:

• 44% improvement in lighting efficiency
• 27% improvement in cooling efficiency
• 21% improvement in building envelope efficiency
• 37% improvement in commercial building efficiency overall
• But only 1% improvement in heating efficiency

With such a small increase in heating efficiency compared to other categories, High Temperature Heating and Ventilation (HTHV) direct gas-fired heaters caught the attention of the Department of Energy (DOE) as a way to dramatically reduce energy consumption.

Field Demonstration of High Efficiency Gas Heaters

In many commercial and industrial buildings, unit heaters are the popular choice for space heating. But, according to ASHRAE, these buildings require ventilation systems in addition to space heating in order to meet code. With separate systems providing space heating and outside air, most buildings have complex heating systems that consume too much energy.

Wanting to find out for themselves the viability of the HTHV technology, the DOE conducted their own independent study.

They discovered that direct-fired HTHV demonstrated 20% gas savings compared to standard unit heaters, a margin that could substantially reduce energy consumption and utility bills for commercial and industrial buildings in the U.S.

Direct-fired technologies have been widely adopted as high-efficiency ventilation units. The DOE’s study has proved HTHV’s viability in increasing heating efficiency in the United States, an area that not seen much improvement in the past 25 years.

Click here to download the full DOE study >>

Variable Ventilation Controls on Cambrige MAUs

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Here is a short 2 minute and 30 second video about 3 available options on Cambridge Engineering’s Make Up Air Units. Watch the video to learn about our Modulating Gas Controls, Variable Frequency Drives and Automated Profile Damper controls.

Thanks for watching.

Cambridge Engineering Travels to Xylem Design for Global Lean Leadership Summit

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Watch this great video about a recent trip our leadership team took to Xylem Design in Fort Collins, CO for a Global Lean Leadersship Summit. Learn how Xylem eliminates waste and romoves that which they struggle with in they daily activities.

Let us know what you think about these Lean efforts.