Nice article, Bob. How important is cost savings to the customers in this market. I would imagine it helps OEMs make the sale if they can tell their customer there will be an ROI for the implementation.
Rob, I agree, a nice article. The market for these systems is, as the article points out, quite competitive. Cost is key. The idea is to get the most efficiency out of the system as they are seen to be a cost center.
Interesting article. But the problem with obtaining best efficiency is often created by those evile drones, the building code people who demand functions that are not only inapplicable but also cause drasitc reductions in efficiency. At least, that is what I see in this part of Michigan, my guess is that the situation is similar in a few other parts of the country. It is also apparent that the cost of mny optional functional systems is based on their desireability rather than by bom cost or the design and build effort. At least that is how it looks from the outside.
Thanks for reading the article. For the End User, I agree ROI plays an important role in the decision making process as to whether or not they should purchase new HVAC/R equipment. Along with the ROI, upfront capital is another consideration the End User usually takes into account. With limited budgets for HVAC/R systems replacements and upgrades, obtaining the capital to fund equipment replacement is often times a stumbling block. However, if the End User could find a way to increase the efficiency of hs existing HVAC/R equipment and extend it's life with much less upfront capital costs, while at the same time seeing a fast ROI, the ECM has a much better chance in getting through the scrutiny of the CFO. I know, that's a tall order, but it can be done. Life Cycle Costing has become a standard means through which the OEM can best position his equipment on the market. That would lead us to a different discussion.
Thanks so much for reading the article. For the HVAC/R industry, the competition has always been fierce. After many years of working with the OEMs out there, what they tell me is that along with upfront costs, finding that differentiator for his equipment that appeals most to the market is key. The challenge is keeping the cost for the equipment competitive, not requiring additional commissioning or startup procedures for the installation contractor, and still providing innovation.
Thanks for reading the article. You hit on a great point. Complicate that with the UL requirement now to incorporate an SCCR (short circuit current rating) rating for HVAC control panels OEMs must implement, other issues surface: Panel design, combination component current ratings, and local jurisdiction just to mention a few. Ah, but that's another discussion down the road.
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